12-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. 26-12 – A Resolution authorizing the City Manager to execute Purchase and Sale Agreement File No. 1125, in a form approved by the City Attorney, between the City of Bellflower and Bellflower 5 Inv, LLC for the purchase of real property located at 9855 Flower Street (APN 7109-013-904). [Continued from March 23, 2026]
DATE: April 13, 2026
EXECUTIVE SUMMARY
The City has negotiated the sale of the real property located at 9855 Flower Street (the “Property”) with Bellflower 5 Inv, LLC (“Purchaser”), also known as City Ventures.
Executing the Purchase and Sale Agreement would cause the City to extend credit to Purchaser to acquire the Property for Economic Opportunity and future development.
Based upon assurances from the Purchaser regarding the development and creation of Economic Opportunity at the Property, the City Manager recommends that the City sell the Property at the negotiated fair market price of $2,650,000. The City will finance the purchase through a loan to the Purchaser in the same amount with interest accruing at a rate equal to the rate earned by the State of California Local Agency Investment Fund (LAIF) during the term of the loan. Repayment of the principal and accrued interest will be deferred to when Purchaser receives the Final Certificate of Occupancy for a potential project.
RECOMMENDATION TO CITY COUNCIL
It is recommended that the City Council:
1) Open the public hearing; take documentary and testimonial evidence; and after considering the evidence, adopt Resolution No. 26-12 authorizing the City Manager to execute Purchase and Sale Agreement File No. 1125, in a form approved by the City Attorney; or
2) Alternatively, discuss and take other action related to this item.
Staff Report – Sale of City Property
April 13, 2026
CEQA
This matter is exempt from additional review under the California Environmental Quality Act (Public Resources Code §§ 21000, et seq., "CEQA") and the regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et seq., the "CEQA Guidelines"), because it authorizes the sale of real properties only; it can be seen with certainty that there is no possibility that this disposition, by itself, will cause a direct physical change in the environment and is therefore not considered a “project” pursuant to CEQA § 21065.
Any future development on the Properties will require separate CEQA scrutiny.
FISCAL IMPACT
The Purchaser will acquire the Property for $2,650,000, financed through a loan from the City at an interest rate equal to the rate earned by the Local Agency Investment Fund (LAIF). The sale price is equal to the amount the City paid to acquire the Proper ty in November 2025 excluding any escrow fees paid by the City at the time of purchase . At the time of sale, the City will record a loan receivable in the General Fund. Repayment of principal and interest will be deferred until the Purchaser obtains a Fina l Certificate of Occupancy, and loan proceeds will be deposited into the General Fund. The City will cover the title insurance and one-half of the escrow costs.
DISCUSSION
In November 2025, the City purchased the property located at 9855 Flower Street for economic opportunity to assist in the revitalization of the Downtown. The Property is in a unique location on the major east/west street in the Downtown, in part due to being adjacent to property currently owned by Purchaser as well as its proximity to other key sites such as the Mayne Events Center/L.A. County Fire Museum, the Regional Transit Center, the future Metro Light Rail Station, Friendship Plaza and Pirate Park, Library Garden Park, Town Center Plaza, public facilities and the commercial amenities in the Downtown.
The City has been working with the Purchaser on the adjacent former funeral home property to potentially develop it with multi-family residential units. The Purchaser intends to develop the Property in conjunction with the adjacent site enhancing public welfare, increasing the housing stock in the city, and creating economic opportunity. If such a project is eventually submitted by the Purchaser and entitled by the City, it would create economic opportunity, as defined by Government Code § 52200.2, by increasing property tax revenues by at least 15% at full implementation of the project when compared to the year prior to the Property being acquired by the City.
In an effort to facilitate a high -quality, holistic development on Flower Street, staff is recommending entering into a loan agreement for $2,650,000 with Purchaser for it to purchase the Property. The loan is proposed to have a maturity date of November 27, 2026 with two 1-year extensions, and will accrue interest at a rate equal to that earned by the State of California Local Agency Investment Fund (LAIF) over the term of the loan .
This is consistent with the City’s loan to Purchaser for the adjacent property. Repayment of the principal and accrued interest will be deferred to when Purchaser receives the Final
Staff Report – Sale of City Property
April 13, 2026
DISCUSSION – Continued
Certificate of Occupancy for a potential project. The loan will be secured through a deed of trust. Escrow for the property will not close until Purchaser is issued buildin g permits for construction of a potential project.
The negotiated purchase price of $2,650,000 is the fair market value paid by the City within 12-months of acquisition making it equal to or greater than the established fair market value.
Pursuant to Government Code Section 52201 the City prepared the attached Summary Report 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 (fair reuse value);
d) The purchase price or present value of the lease payments which the Purchaser will be required to make during the term of the Agreement;
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 r easons 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 Section 52200.2), with reference to all supporting facts and material relied upon in making this decision.
ATTACHMENTS
Summary Report ........................................................................................................... 4 Resolution No. 26-12..................................................................................................... 7
Summary Report Government Code Section 52200 – Purchase and Sale Agreement – Disposition – 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
BELLFLOWER 5 INV, LLC
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 Bellflower 5 Inv, LLC (“Buyer”).
City owns a total of 21,019 square feet of land located at 9855 Flower Street on one parcel (APN 7109- 013-904) (“Property”). The Agreement requires City to sell the Property to the Buyer.
The following Summary Report is based upon information required by the Government Code. It is organized into the following six sections:
I. Salient Points of the Agreement: This section summarizes the major responsibilities agreed to by City and the Buyer 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. Estimated Value of the Interests to be Conveyed Determined at the Highest and Best Uses Permitted Under the General Plan or Zoning: This section estimates the value of the interests to be conveyed determined at the highest and best use permitted for the City Property and the requirements imposed by the General Plan or Bellflower Municipal Code.
IV. Estimated Reuse Value of the Interests to be Conveyed: If applicable, this section summarizes the valuation estimate for the City Properties based on the required scope of development and other conditions and covenants required by the Agreement.
V. Consideration Received and Comparison with the Established Value: This section describes the compensation to be received by the City and explains any difference between the compensation to be received and the established highest and best use value of the City Properties.
VI. 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 sale of all that certain real property located at 9855 Flower Street, Bellflower, CA 90706 on APN 7109-013-904 totaling 21,019 square feet.
Summary Report Government Code Section 52200 – Purchase and Sale Agreement – Disposition – 9855 Flower Street 2
B. Seller (City) Responsibilities Under the Agreement
The Agreement requires the City to accept the following responsibilities:
1. City agrees to sell the Property, following the satisfactory inspection(s) of the Property by the Buyer and approval of documents produced during the 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 and approximately 50% of the applicable escrow fees.
C. Buyer Responsibilities Under the Agreement
1. Buyer will purchase the Property for $2,650,000.
2. Buyer may access the Property for the purpose of making necessary or appropriate inspections, including geological, soils and/or environmental assessments.
3. Buyer must, at its sole cost and expense, secure any and all land use and other entitlements and approvals, and pay any and all applicable fees which the City may require for the construction and operation of the Purchaser Improvements, and any other entitlements, permits or approvals required by any other governmental agency.
4. Buyer, as well as its contractor or contractors, must obtain and maintain comprehensive general commercial liability insurance covering all activities relating to construction of Purchaser’s Improvements at the City Properties, in the amounts of not less than $2,000,000 combined single limit per occurrence for claims arising out of bodily injury, personal injury and property damage for each policy coverage and will remain in force during construction.
5. Buyer must obtain and maintain workers’ compensation insurance as required by law and will remain in force for the duration of the Agreement.
II. COST OF THE AGREEMENT TO THE CITY
The cost incurred by the City to implement the Agreement is a de minimus amount of administrative time, ALTA Owner’s Coverage Policy of Title Insurance and approximately half of the typical escrow fees.
III. ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED OR LEASED DETERMINED AT THE
HIGHEST AND BEST USES PERMITTED UNDER THE GENERAL PLAN OR ZONING
Government Code § 52201 requires the City to identify the value of the interests being conveyed at the highest use allowed by the City’s General Plan or Property’s zoning. The City and Buyer negotiated a sales price of $2,650,000 for the Property.
IV. ESTIMATED REUSE VALUE OF THE INTERESTS TO BE CONVEYED
A reuse value evaluation is not included in this summary because no extraordinary conditions, covenants and/or development costs are required by the Agreement.
Summary Report Government Code Section 52200 – Purchase and Sale Agreement – Disposition – 9855 Flower Street 3
V. CONSIDERATION RECEIVED AND COMPARISON WITH THE ESTABLISHED VALUE
The City purchased the property in November 2025 for $2,650,000. The Agreement causes the City to sell the Property to Buyer for $2,650,000. The short time between the purchase and sale of the Property resulted no loss or gain was incurred with its disposition. Accordingly, the negotiated sale price of $2,650,000 is the fair market value paid by the City within 12-months of acquisition. The consideration to be received is equal to or greater than the established fair market value.
VI. ECONOMIC OPPORTUNITY
The Property is located on the major east/west arterial street in Downtown Bellflower. It is currently occupied by White House Florist, a local flower shop that is being operated by the previous owner. As a previous long-term ownership, legacy property, and now a publicly owned property, it was generating a minimum tax revenue. Buyer’s acquisition of the Property will result in a foreseeable economic benefit as it will be developed for a residential project or some other beneficial private development. The Property’s proximity to public amenities and other emerging private enterprises will lead to increased synergy to accelerate economic growth within Bellflower Downtown. Under any circumstance, such private development will create economic opportunity, as defined by Government Code § 52200.2, by increasing property tax revenues to all property tax collecting entities by at least 15% 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, 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 Property, 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 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. 26-12
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
PURCHASE AND SALE AGREEMENT FILE NO. 1125, IN A FORM
APPROVED BY THE CITY ATTORNEY, BETWEEN THE CITY OF
BELLFLOWER AND BELLFLOWER 5 INV, LLC FOR THE PURCHASE
OF REAL PROPERTY LOCATED AT 9855 FLOWER STREET
(APN 7109-013-904)
THE CITY COUNCIL OF THE CITY OF BELLFLOWER DOES RESOLVE AS FOLLOWS:
SECTION 1: The City Council finds and declares as follows:
A. On December 1, 2025, Bellflower 5 Inv., LLC (“Buyer”) offered to purchase real property owned by the City at 9855 Flower Street (“Property”) for $2,650,000.
B. Article II of the City Charter authorizes the City Council to govern the City’s municipal affairs; Article V authorizes the City Council to establish policies needed to generate revenue for the public benefit; and Article V(D) provides that the City must aid economic growth.
C. The Property was acquired by City for economic opportunities on November 24, 2025 in accordance with Resolution No. 25-37.
D. Buyer’s interest in acquiring the Property relates to its plans for a residential development at 9903 Flower Street consisting of condominium units.
E. While nothing in this Resolution constitutes consideration or approval of that pending project, selling the Property to Buyer would assist in the overall surge of private development within the general vicinity of the Property. This includes, without limitation, the Edgeway Downtown Bellflower; SteelCraft outdoor food hall; the Downtown Collection townhomes; the Nest Eatery; and the Stand Up Comedy Club. The Property is opportunely located in Downtown Bellflower within convenient walking distance of public parking, public amenities (including the Mayne), public library, Town Center Plaza, Library Garden Park, Pirate Park, Friendship Plaza, and the Bellflower Walking and Biking Trail. Consequently, any private development of the Property will result in improved economic growth for Downtown and the City overall.
F. The City reviewed the environmental impacts of selling the Property 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”).
City of Bellflower
Resolution No. 26-12 – 9855 Flower Street Disposition
F. As set forth in the accompanying report (as required by Government Code § 52201) the City finds that the Property is an important asset that will contribute to the economic opportunity in Downtown Bellflower.
E. To enhance economic opportunities within the City, the City Council desires to convey the Property to Bellflower 5 Inv. LLC for a purchase price of $2,650,000.
G. Pursuant to Bellflower Municipal Code (“BMC”) § 2.32.050(F), the City Council opts to act as the City’s Planning Agency and finds that selling the Property would be consistent with the City’s General Plan in accordance with Government Code § 65402(a) as set forth below.
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”).
Disposition 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. Additionally, selling the Property would result in minor (if any) alterations to existing facilities involving no significant expansion of the existing use. Disposing of the Property – by itself – would not have any significant impacts 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: General Plan. Selling the Property does not conflict with any Goal or Policy of the Bellflower General Plan and conforms to the following goals and policies of the Land Use Element of the General Plan:
A. General – Goal 2: Create a City that functions efficiently, is aesthetically pleasing, and makes the best use of its various resources.
The Property is owned by the City. Selling the Property would potentially allow for future lot consolidation, thereby improving the site’s aesthetics and making the best use of City resources to create a City that functions efficiently.
B. Commercial Policy 1, Implementation Program 1.3: Provide lot consolidation incentives for commercial parcels in order to create large, viable, commercial properties.
City of Bellflower
Resolution No. 26-12 – 9855 Flower Street Disposition
Selling the Property would allow for lot consolidation that would allow it to be developable for future economic use.
SECTION 4: Authorizations. The City Council authorizes the sale of the Property to Purchaser for $2,650,000 to be financed through a loan from the City in the same amount. To effectuate the conveyance and loan, 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, the Purchase and Sale Agreement, escrow instructions, the grant deed, and the closing statement. The loan will be secured by a deed of trust. The City Manager is further authorized to cause the appropriate documents to be recorded in the Office of the County Recorder of the County of Los Angeles and to execute all related and ancillary documents in forms approved by the City Attorney needed to effectuate the intent of this resolution.
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.
PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER THIS 13TH DAY OF APRIL 2026.
________________________________
Sonny R. Santa Ines, Mayor
ATTEST:
________________________________
Mayra Ochiqui, City Clerk
APPROVED AS TO FORM:
________________________________
Karl H. Berger, City Attorney