DATE:
May 21, 2024
TO:
Mayor and Council Members
FROM:
Rachel Molina, City Manager
BY:
Nathan Freeman, Director of Development Services
Victor Knight, Economic Development Manager
April Antonio, Administrative Analyst
SUBJECT:
Real Property Purchase and Sale Agreement – APN 0405-272-09
RECOMMENDED ACTION
It is recommended that the City Council adopt Resolution No. 2024-017: (i) approving the “Agreement for the Purchase and Sale of Real Property and Joint Escrow Instructions” (Agreement) by and between Desert Wind LLC (Seller) and the City of Hesperia (Buyer) for the purchase of APN 0405-272-09 for $525,000; 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 floodwater 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. The Broker Opinion of Value (BOV), with staff review, was determined by evaluating the parcels economically useful portion, and sales comparison utilizing similar property transactions.
ISSUES/ANALYSIS
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 the land that would represent challenges for future development due to the natural stormwater flow.
Due to the channel, alternative properties to locate for purchase are limited. Acquisition assists the City’s capacity to construct a basin at a future date.
CITY GOAL SUPPORTED BY THIS ITEM
Future Development: Facilitate balanced growth to ensure cohesive community development and pursue economic development.
FISCAL IMPACT
The Agreement represents mutually agreeable terms for conveyance of the Property to Buyer. The sale price of $525,000 represents Broker Opinion of Value (BOV) with staff review. This amount, plus commissions and fees, will be paid out of fund number 313-29-700-7152-8400.
ALTERNATIVE(S)
Provide alternative direction to staff.
ATTACHMENT(S)
Resolution No. 2024-017
Purchase & Sale Agreement
Aerial Map
City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Staff Report to Mayor and Council Members
Real Property Purchase & Sale Agreement – APN 0405-272-09 May 21, 2024