11-A
TO: Honorable Mayor and Members of the City Council
ATTENTION: Ryan Smoot, City Manager
FROM: Jim DellaLonga, Director of Economic Development
SUBJECT: Consideration and possible action to conduct a public hearing to consider adopting Resolution No. 25-37 – A Resolution authorizing the City Manager to execute a Purchase and Sale Agreement, in a form approved by the City Attorney, between the City of Bellflower and the William and Mary M. Kwan Family Trust and to transfer the necessary funds from the Unassigned General Fund Reserve to the Property Acquisition Reserve for the purchase of real property located at 9855 Flower Street (APN 7109-013-032).
DATE: October 13, 2025
EXECUTIVE SUMMARY
Executing Purchase and Sale Agreement File No. 1113 (PSA) with the William and Mary M.
Kwan Family Trust (“Seller”) would cause the City to purchase real property located at 9855 Flower Street for $2,650,000. Acquiring the property would give the City control over its future use in a manner that contributes to Downtown Bellflower’s economic growth and image and the cohesive vision of the Flower Street corridor.
RECOMMENDATION TO CITY COUNCIL
1) Open the public hearing; take documentary and testimonial evidence; and after considering the evidence, adopt Resolution No. 25-37 authorizing the City Manager to execute the Purchase and Sale Agreement, in a form approved by the City Attorney; and to transfer the necessary funds from the Unassigned General Fund Reserve to the Property Acquisition Reserve; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
The City will pay $2,650,000 to the William and Mary M. Kwan Family Trust to acquire the property.
The Property Acquisition Reserve currently has an estimated available cash balance of $778,000. In addition, a minimum allocation of $1,000,000 is expected to be added to the Property Acquisition Reserve at the end of FY 2025–2026 based on the budgeted surplus.
To fully fund the property purchase and related closing costs, a transfer of $900,000 from the Unassigned General Fund Reserve to the Property Acquisition Reserve is recommended.
If the actual General Fund surplus transfer to the Property Acquisition Reserve exceeds the minimum allocations for FY 2025–2026 and FY 2026–2027, the $900,000 advance transfer will be applied toward the surplus, restoring the Unassigned General Fund Reserve.
o“ 01: BELLFLO
“ s a
"o ROWING TOGETk‘YFS t f t
Staff Report – Purchase and Sale Agreement File No. 1113 with William and Mary M.
Kwan Family Trust
October 13, 2025
PUBLIC NOTICE
On September 26, 2025, and on October 3, 2025, a Public Hearing Notice was published in the Los Cerritos Community News newspaper.
DISCUSSION
The Property consists of one 21,039 square foot parcel containing 4,517 square feet of buildings (APN 7109-013-032). The site is currently occupied by White House Florist, a local small business in operation for more than 40 years.
This purchase represents a key asset and opportunity that will contribute to this area’s economic growth. The City negotiated a purchase price of $2,650,000 for the property with the Seller. The purchase and sale agreement represents the terms and conditions of this pending acquisition.
It is the City’s intent to lease or sell the property to a developer that will contribute to the economic development of the Downtown Bellflower area. Proceeds from any future sale or lease of the property will be returned to the City’s general fund.
Attached is a Summary Report required by Government Code § 52201 that describes the following:
a) the cost of the agreement to the City;
b) the estimated value of the interest to be conveyed or leased determined at the highest and best uses permitted under the general plan or zoning;
c) if applicable, the estimated value of the interest to be conveyed or leased determined at the use with the conditions, covenants, and development costs required by the sale or lease;
d) the purchase price or present value of the lease payments which the lessee will be required to make during the term of the lease;
e) if the sale price or total rental amount is less than the fair market value of the interest to be conveyed or leased, determined at the highest and best use, then the city shall provide, as part of the summary, an explanation of the reasons for the difference; and
f) an explanation of why the sale or lease of the property will assist in the creation of economic opportunity (as defined by Government Code § 52200.2), with reference to all supporting facts and material relied upon in making this decision.
ATTACHMENTS
Summary Report .................................................................................................................. 3 Resolution No. 25-37 ............................................................................................................ 5
Summary Report Government Code Section 52200 – Purchase and Sale Agreement – 9855 Flower Street 1
SUMMARY REPORT PURSUANT TO
GOVERNMENT CODE § 52201
REGARDING A
PURCHASE AND SALE AGREEMENT
BY AND BETWEEN THE
CITY OF BELLFLOWER AND
THE WILLIAM AND MARY M. KWAN FAMILY TRUST
The following Summary Report was prepared pursuant to Government Code § 52201. This report sets forth certain details of the proposed Purchase and Sale Agreement (“Agreement”) between the City of Bellflower (“City”) and the William and Mary M. Kwan Family Trust (“Seller”).
Seller owns a total of 21,039 square feet of land located at 9855 Flower Street on one parcel (APN 7109- 013-032) (“Property”). The Agreement requires Seller to sell the Property to the City.
The following Summary Report is based upon information required by the Government Code. It is organized into the following three sections:
I. Salient Points of the Agreement: This section summarizes the major responsibilities agreed to by Seller and the City by the Agreement.
II. Cost of the Agreement to the City: This section details the total cost to the City associated with implementing the Agreement.
III. Creation of Economic Opportunity: This section describes the existing condition of the subject property and explains how the Agreement will assist in the creation of economic opportunity.
This report and the Agreement are to be made available for public inspection prior to the approval of the Agreement and no later than the time of publication of the first required notice of the public hearing pursuant to Government Code § 52201.
I. SALIENT POINTS OF THE AGREEMENT
A. Project Description
The Project is the City’s purchase of all that certain real property located at 9855 Flower Street, Bellflower, CA 90706 on APN 7109-013-032.
B. Seller Responsibilities Under the Agreement
The Agreement requires the Sellers to accept the following responsibilities:
1. Seller agrees to sell the Property, following the satisfactory inspection(s) of the Property by the City and approval of documents produced during a maximum 45-day Due Diligence Period.
2. Seller agrees to pay the costs associated with a CLTA Standard Coverage Policy of Title Insurance showing title to the Property vested in Buyer.
Summary Report Government Code Section 52200 – Purchase and Sale Agreement – 9855 Flower Street 2
C. City Responsibilities Under the Agreement
1. The City will purchase the Property for Two Million Six Hundred Fifty Thousand Dollars ($2,650,000) following satisfactory inspection(s) of the Property during escrow and the Due Diligence Period.
II. COST OF THE AGREEMENT TO THE CITY
The cost incurred by the City to implement the Agreement is $2,650,000 for the purchase of the Property plus half of the typical escrow fees and de minimus costs for inspections and staff time to effectuate the acquisition.
III. ECONOMIC OPPORTUNITY
The Property, located on the major east/west arterial street in Downtown Bellflower, is currently occupied by White House Florist, a local flower shop that is currently being operated by Seller. As a long-term ownership, legacy property, it is currently generating a minimum of state or local taxes. The City intends to market the Property to produce a private development project that will create economic opportunity, as defined by Government Code Section 52200.2, by increasing property tax revenues to all property tax collecting entities by at least 15% at full implementation of a project when compared to the year before the property being acquired by the City.
Significant new development is occurring within the vicinity of the Property. This includes Edgeway Downtown Bellflower, The Mayne Events Center and Los Angeles County Fire Museum, The Bellflower Regional Transit Center and Parking Structure, SteelCraft outdoor food hall, the Downtown Collection townhomes by City Ventures, The Nest Eatery, and The Stand Up Comedy Club, in addition to the submission of a development application for a housing project adjacent to the subject property. The Site, located in the heart of Downtown Bellflower east of Bellflower Blvd., is proximate to City-owned public parking lots and Civic Center amenities including a public library, Town Center Plaza, Library Garden Park, Pirate Park, Friendship Plaza, and the Bellflower Walking and Biking Trail. Additionally, a street improvement project has been approved by the City to complete improvements on Bellflower Boulevard from Flower Street south to the 91 Freeway.
The Property is served by all major utilities and a potential housing economic development project could increase the property’s net assessed value generating a significant increase in property tax, exceeding the required 15% increase for the various taxing entities. Furthermore, as part of Downtown Bellflower, the property is included in the Downtown Bellflower Revitalization Vision Strategy, the Downtown Bellflower Strategic Development Plan, and adjacent to the Downtown Bellflower Transit Oriented Development Specific Plan Area.
CITY OF BELLFLOWER
RESOLUTION NO. 25-37
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A
PURCHASE AND SALE AGREEMENT, IN A FORM APPROVED BY THE
CITY ATTORNEY, BETWEEN THE CITY OF BELLFLOWER AND THE
WILLIAM AND MARY M. KWAN FAMILY TRUST AND TO TRANSFER
THE NECESSARY FUNDS FROM THE UNASSIGNED GENERAL FUND
RESERVE TO THE PROPERTY ACQUISTION RESERVE FOR THE
PURCHASE OF REAL PROPERTY LOCATED AT 9855 FLOWER
STREET (APN 7109-013-032)
THE CITY COUNCIL DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Council finds and declares as follows:
A. The City of Bellflower negotiated to acquire the property located at 9855 Flower Street (APN 7109-013-032) from the William and Mary M. Kwan Trust (“Seller”) for a purchase price of $2,650,000;
B. Pursuant to Government Code § 65402(a), the City Council, acting as the Planning Agency, reviewed the acquisition to determine the property purchase is consistent with the General Plan and conformity with the Bellflower Municipal Code (“BMC”);
C. In addition, the City reviewed the project’s environmental impacts under the California Environmental Quality Act (Public Resources Code §§ 21000 et seq., “CEQA”) and the regulations promulgated thereunder (14 Cal. Code of Regulations §§15000, et seq., the “CEQA Guidelines”);
D. Seller desires to convey the Property to the City of Bellflower for a purchase price of $2,650,000;
E. As set forth in the accompanying report (as required by Government Code § 52201) the City believes that the Property is an important asset that will contribute to the economic opportunity in Downtown Bellflower. Accordingly, the City Council desires to purchase the Property; and
F. Toward that end, the City and Seller desire to enter into a Purchase and Sale Agreement for the Property.
SECTION 2. Environmental Assessment. Adopting this Resolution is exempt from further environmental review pursuant to the California Environmental Quality Act (Public Resources Code §§ 21000, et seq., “CEQA”) and the regulations promulgated thereunder (14 Cal. Code of Regulations §§15000, et seq., the “CEQA Guidelines”).
Acquisition of the Property (by itself) does not have the potential to cause significant effects on the environment. Consequently, it is categorically exempt in accordance with CEQA Guidelines § 15061(b)(3) as CEQA only applies to projects that have the potential to cause a significant effect on the environment.
City of Bellflower
Resolution No. 25-37 – 9855 Flower Street Acquisition
Additionally, acquiring the property would result in minor (if any) alterations to existing facilities involving no significant expansion of the existing use. Acquiring the Property – by itself – would not have any significant impacts with regard to traffic, noise, air quality, or water quality. There are adequate utilities and public services to serve the Property. Any future redevelopment of the Property would require separate environmental review and either discretionary or ministerial approvals by the City. A simple conveyance of title does not necessitate preparation of an environmental document. The City Manager, or designee, is directed to file a Notice of Determination in accordance with Public Resources Code §§ 21152, 21167(f); CEQA Guidelines § 15075; and any other applicable law.
SECTION 3. Authorizations. The City Council authorizes the purchase of the Property from the Seller to the City upon payment of $2,650,000 by City. In order to effectuate that conveyance, the Mayor and City Manager are authorized to execute all documents, in a form approved by the City Attorney, needed to implement the conveyance of the Property as contemplated by this Resolution including, without limitation, escrow instructions, the grant deed, closing statement, and the certificate of acceptance. The City Manager is further authorized to accept the grant deed and cause them to be recorded in the Office of the County Recorder of the County of Los Angeles .
SECTION 4. The City Manager, or designee, is directed to transfer the necessary funds from the Unassigned General Fund Reserve to the Property Acquisition Reserve for this property acquisition.
SECTION 5. Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.
SECTION 6. The Mayor, or presiding officer, is hereby authorized to affix his signature to this Resolution signifying its adoption by the City Council of the City of Bellflower, and the City Clerk, or her duly appointed deputy, is directed to attest thereto.
SECTION 7. This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded.
///
///
///
City of Bellflower
Resolution No. 25-37 – 9855 Flower Street Acquisition
PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER THIS 13th DAY OF OCTOBER 2025.
________________________________
Ray Dunton, Mayor
ATTEST:
________________________________
Mayra Ochiqui, City Clerk
APPROVED AS TO FORM:
________________________________
Karl H. Berger, City Attorney