DATE:
July 18, 2023
TO:
Mayor and Council Members
FROM:
Rachel Molina, City Manager
BY:
Victor Knight, Economic Development Manager
April Antonio, Administrative Analyst
SUBJECT:
Real Property Purchase and Sale Agreement – APN 0405-272-18
RECOMMENDED ACTION
It is recommended that the City Council adopt Resolution No. 2023-046: (i) approving the “Agreement For The Purchase And Sale Of Real Property And Joint Escrow Instructions” (Agreement) by and between Obeidat Enterprise LLC (Seller) and the City of Hesperia (Buyer); and (ii) authorizing the City Manager to execute all documents necessary to consummate the transaction.
BACKGROUND
The A-04 drainage course is a natural regional drainage channel on the Master Plan of Drainage along the western portion of the City, east of Interstate 15, of which reaches nearly boundary to boundary. This channel conveys large quantities of stormwater through the City. Because of its significance, areas of the City may be inundated with flood waters during storm events. Further, several streets and properties north of Main Street experience significant stormwater flows.
The parcel considered for purchase will contribute to the City’s future ability to manage stormwater through the construction of a basin along with future acquisitions, given the property’s geographic location. Fair market value (FMV) was determined by evaluating the parcels economically useful portion, and sales comparison utilizing similar property transactions.
ISSUES
Right-of-way acquisition, design, and environmental clearance may begin in phases as funding is secured and future property is acquired to support the A-04 Drainage Program.
The property considered for purchase represents an opportunity for the City to acquire a parcel within the existing natural drainage course and utilize land that would represent challenges for future development due to the natural stormwater flow.
Due to the channel, alternative properties to locate are limited. Acquisition assists with the City’s ability to construct a basin at a future date.
FISCAL IMPACT
The Agreement represents mutually agreeable terms for conveyance of the Property to Buyer. The sale price of $300,000 represents fair market value (FMV). This amount, commissions and fees is included in the Fiscal Year 2023-24 Budget in Fund 313 – DIF A-04 Drainage.
ALTERNATIVE(S)
Provide alternative direction to staff.
ATTACHMENT(S)
Resolution No. 2023-046
Purchase & Sale Agreement
Page PAGE 2 of NUMPAGES 2
Staff Report to Mayor and Council Members
Real Property Purchase & Sale Agreement – APN 0405-272-18 July 18, 2023
City of Hesperia
STAFF REPORT