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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Purchase and Sale Agreement to Acquire 1745 Gardena Avenue
1. Motion Authorizing the City Manager to Execute a Purchase and Sale Agreement with Silverglen Properties, LLC, for the City’s purchase of real property located at 1745 Gardena Avenue, Glendale, California, Assessor Parcel No. 5640-031-023, subject to approval as to form by the City Attorney
2. Resolution of Appropriation to provide funds for the land purchase
COUNCIL ACTION
Item Type: Action Item
Approved for May 6, 2025 calendar
EXECUTIVE SUMMARY
Staff has negotiated a purchase and sale agreement to acquire 1745 Gardena Avenue for $2,799,000. Acquisition of the Property will contribute to significant cost savings for the Beeline Bus Maintenance Facility electrification project (currently in the design phase) by providing for improved placement of electrification infrastructure, new design options, and improved egress for the bus fleet. A motion is needed to authorize this land purchase and a resolution of appropriation from Measure R Local Return funds.
RECOMMENDATION
Adopt the motion authorizing the City Manager to execute a Purchase and Sale Agreement to acquire the property located at 1745 Gardena Avenue and adopt a resolution of appropriation to fund it.
ANALYSIS
The property (“Property”) is located mid-block on the westside of Gardena Avenue adjacent to the Beeline Bus Maintenance Facility (“BBMF”) and is 7,280 SF (Exhibit 1).
The site is developed with a two-story, 6,640 SF office building that was built in 1982 which is currently vacant.
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The Property was recently offered for sale for $2,799,000. The City Council authorized staff to make an offer to acquire the Property, and subsequently a written offer to acquire for the purchase price was made and accepted by the owner’s representatives. Staff has negotiated the terms of a Purchase and Sale Agreement (”PSA”) to acquire all the owners interest in the Property (Exhibit 2). The PSA outlines the terms and conditions for the sale of the Property. The PSA provides a 60-day escrow period from execution and requires the City to make a refundable three percent ($83,970) deposit which shall be applied to the final purchase price. The PSA provides for buyer contingencies and buyer and seller closing conditions and closing costs and prorations. The City will obtain an ALTA survey and Phase I environmental assessment during the due diligence period.
In November 2023 the City Council approved a contract with Stantec Architecture, Inc. for design services for the BBMF electrification project. The project includes constructing a parking deck, a photovoltaic canopy, and new electrification infrastructure. Design of the project is currently ongoing. Staff has determined that acquiring the Property would benefit the project and contribute to significant cost savings by providing for additional design options through expansion of the BBMF site, improved placement of electrification infrastructure, and improved egress for the bus fleet.
STAKEHOLDERS/OUTREACH
N/A
FISCAL IMPACT
The purchase of the Property will cost $2,799,000, which was not included as a part of the FY 2024-25 budget. In addition to the purchase price, the City is responsible for its share of closing cost such as escrow and recording fees. Therefore, staff is requesting for an appropriation of $2,830,000 from the Measure R Local Return fund balance. The appropriation request is outlined below:
Requesting Appropriation
Amount From (Account
String)
To (Account String) Funding Source
$2,830,000 GL: 24212-2540-
PWD-0000
GL: 51100-2540-
PWD-0020-P0000
PL: PWD01342AN
Measure R Local
Return Fund
ENVIRONMENTAL REVIEW (CEQA/NEPA)
Acquisition of the Property is exempt from the California Environmental Quality Act (CEQA) by statute pursuant to California Public Resources Code (PRC} Section 21080.25 (b)(5). Section (b)(5) provides a CEQA exemption "for the institution or increase of bus rapid transit, bus, or light rail service, including the construction or rehabilitation of 3{{section.number}}d
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stations, terminals, or existing operations facilities, which will be exclusively used by zero- emission, near-zero-emission, low oxide of nitrogen engine, compressed natural gas fuel, fuel cell, or hybrid powertrain buses or light rail vehicles, on existing public rights-of-way or existing highway rights-of-way, whether or not the right-of-way is in use for public mass transit. The project shall be located on a site that is wholly within the boundaries of an urbanized area or urban cluster, as designated by the United States Census Bureau."
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES TO STAFF RECOMMENDATION
1. Not adopt motion or resolution of appropriation.
2. Any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Submitted by:
Daniel Hernandez, Director of Public Works
Prepared by:
Mark Berry, Deputy Director of Community Dev/Economic Dev Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
Exhibit 1- Site Map
Exhibit 2- Purchase and Sale Agreement