TO: Honorable City Council
FROM: City Manager
SUBJECT: Resolution Approving the Agreement of Purchase and Sale and Escrow Instructions between Nancy M. Ocegueda, Successor Trustee of the J & N Ocegueda Trust dated May 15, 2008, and the City of Commerce, for Land in the City of Commerce, California
MEETING DATE: September 17, 2026
RECOMMENDATION:
It is recommended that the City Council consider:
1. Adopting the proposed Resolution approving the Agreement to Sell Land and Escrow Instructions between Nancy M. Ocegueda, Successor Trustee of the J & N Ocegueda Trust dated May 15, 2008, and the City of Commerce, for Land located at 4615 E.
Washington Boulevard, Commerce, California, 90040; Assessor’s Parcel Number (“APN”) 5243-027-025, 5243-027-027 and authorize the Mayor to sign the agreement on behalf of the City; and
2. Authorizing a budget appropriation from the Unassigned Fund Balance for the acquisition of 4615 E. Washington Boulevard, Commerce, California, 90040 including $1,350,00 purchase price and associated acquisition-related costs.
ANALYSIS/DISCUSSION:
Commerce is a unique community surrounded by significant industrial activity, truck traffic, rail operations, and major freeways, including the I-5 and I-710. While industry is an important part of the City’s economic base, expanding the City’s retail footprint through acquiring land will allow the City to obtain a greater leverage at managing economic growth and revitalizing the City’s major Washington corridor.
The City is now seeking to diversify its source of revenue by focusing on retail activity throughout the Washington and Atlantic corridors. Currently, the City of Commerce lacks shopping options where residents or visitors are able to spend their money, this City’s investment will allow more local options and be an additional sales tax generator.
Item No. 2
CITY OF COMMERCE
AGENDA REPORT
Purchase of the Property is considered by staff to be a strategic acquisition as the Property is a suitable location to pursue a project that supports retail development subject to appropriate findings and approvals.
The City of Commerce is seeking to purchase located at 4615 E. Washington Boulevard 93103 (APN 5243-027-025, 5243-027-027) (“Property”), at a purchase price of $1,350,000.
As it stands today, the property has three commercial sites, two unpermitted residential units, and one storage space. Two commercial sites, two unpermitted residential units, and one storage space on the property are being occupied. As part of the escrow instructions, the City has requested both occupied residential units to be vacated from the property. The commercial tenants will remain on the site, under a new month-to-month agreement between the tenant and the City. All conditions are included in the attached Purchase and Sale agreement.
The City’s intended use is to maintain the existing tenants on a month-to-month contract under the City’s terms and conditions until the City finds a long-term retail occupant for the site.
The following table outlines the property information:
Entire Lot Size 13,176 square feet / 0.30 acre
Building Size 4,627 square feet
Building Type Commercial
Year Built 1954
Zoning CMM
ENVIRONMENTAL ANALYSIS:
The City will be requesting a Phase I Environmental Analysis prior to the close of escrow.
An appropriate environmental review of the analysis will be required pursuant to the requirements of the California Environmental Quality Act (“CEQA”) to analyze the potential environmental impacts of a proposed project before the close of escrow.
ALTERNATIVES:
1. Approve recommendation
2. Reject recommendation
3. Provide staff with further direction
FISCAL IMPACT:
The proposed acquisition of 4615 East Washington Boulevard Commerce, CA 90040 represents a purchase price of $1,350,000. In addition to the purchase price, the City will also incur costs associated with completing the acquisition, which may include escrow, title, inspections, legal, appraisal, closing, and other transaction-related expenses. As such, the City Council will be requested to authorize a budget appropriation from the Unassigned Fund Balance in a sufficient amount to cover the $1,350,000 purchase price and the anticipated
costs necessary to complete the acquisition. The final appropriation amount will be identified at the time of execution.
Based on the most recent available Rent Roll Statement (calendar year 2025), the property made approximately $95,700 in revenue, with total earnings of $81,728 after operating and maintenance expenses are considered. The revenue includes the monthly rent from two residential units, which before the close of escrow both tenants will no longer be on the property.
Below includes a breakdown of the current monthly rent and occupancy information:
Because the property is located in the City, the City will not be obligated to pay property tax. The City would assume ongoing costs associated with ownership and operation of the property, including property management, utilities, maintenance repairs, landscaping, supplies, and other operating expenses until the City selects a new tenant for the site.
Written by: Gisselle S. Delgado, Senior Management Analyst Reviewed by: Alvaro Castellon, Director of Finance
Approved as to form: Noel Tapia, City Attorney
Respectfully submitted: Ernie Hernandez, City Manager
ATTACHMENTS:
1. Purchase and Sale Agreement
2. Resolution