DATE:
April 19, 2022
TO:
Mayor and Council Members
FROM:
Nils Bentsen, City Manager
BY:
Rachel Molina, Assistant City Manager
Victor Knight, Economic Development Manager
April Antonio, Administrative Analyst
SUBJECT:
Purchase and Sale Agreement for APN 3039-441-20
RECOMMENDED ACTION
It is recommended that the City Council adopt Resolution No. 2022-27: (i) approving the “Agreement for the Purchase and Sale of Real Property and Joint Escrow Instructions” (PSA) for real property located northwest of Interstate 15 and Ranchero Road interchange (Property) by and between the City of Hesperia (Seller) and XMG Holdings LLC, a California limited liability company and CSR 50, LLC, a California limited liability company (collectively, Buyer); and (ii) authorizing the City Manager and/or designee to execute all documents necessary to consummate the transaction.
BACKGROUND
The parcel which consists of 63.15 acres was purchased on July 13, 2007 by the City of Hesperia, for a purchase price of $8,902,625. Of the 63.15 acres, 10.58 acres of the parcel were used to accommodate the realignment of Caliente Road and the addition of the Ranchero Road Interchange. The parcel has been declared ‘surplus property’ and noticed accordingly in compliance with the Surplus Land Act (SLA) and the California Housing and Community Development agency (HCD). The parcel was approved by the HCD for sale on March 10, 2022.
ISSUES/ANALYSIS
The sale price for the 52.57 acres is $7,144,000 less ALTA Title policy, documentary transfer taxes and ½ of the escrow fees. The sales price was determined to be at fair market value based on an appraisal completed on July 12, 2021. In addition, documented in the Purchase and Sale Agreement, the proposed project for the parcel includes recreational vehicle sales, service, parts storage and other recreational vehicle amenities.
FISCAL IMPACT
Funding for the documentary transfer taxes and the escrow fees will be paid out of the sale proceeds.
ALTERNATIVE(S)
Provide alternative direction to staff.
ATTACHMENT(S)
Resolution No. 2022-27
Purchase & Sale Agreement
Page PAGE 2 of NUMPAGES 2
Staff Report to City Council
Purchase and Sale Agreement APN 3039-441-20
City of Hesperia
STAFF REPORT