Item #05
Date: October 21, 2025
To: Mayor and City Council
From: Dan Flores, Community & Economic Development Director Anissa Leung, Finance Director
Jim Schaad, City Manager
Subject: Reacquisition of Property at 308 C Street (APN 010-242-020) Pursuant to Option Agreement Recommendation: Pass a motion authorizing the City to 1) Reacquire the property located at 308 C Street, APN 010-242-020, from Sandra Adams and Weldon Bell, who are forfeiting their Disposition and Development Agreement (DDA), in exchange for repayment of $23,000 in accordance with the Option Agreement; and 2) Authorize a supplemental budget appropriation in the amount of $23,000 to fund the repayment associated with the Option Agreement.
Rationale for Recommendation: The City sold the property, a former Redevelopment Agency (RDA) parcel, to a developer under a DDA to construct the Nakagawa project. The developer has since determined they cannot proceed with the project. The DDA included an Option Agreement providing the City with the right to repurchase the property for the same price originally paid by the developer. Exercising this option will return the property to City ownership for future use and planning.
Discussion & Analysis: The property at 308 C Street was conveyed by the City as part of its ongoing efforts to revitalize former RDA assets through private development. The DDA with Sandra Adams and Weldon Bell established performance terms and timelines to implement the Nakagawa project. However, the project milestones and obligations were not met, and the developer has elected not to move forward.
In accordance with the Option Agreement, the City retains the contractual right to reacquire the property for the original sale price of $23,000. Exercising this option will ensure that the property returns to City control, allowing staff and Council to reassess potential redevelopment opportunities consistent with City priorities.
Legal Review: The City Attorney has reviewed the DDA and Option Agreement and has confirmed that the City has the right to exercise the repurchase provision as outlined. Escrow will be opened to facilitate the transaction, including execution of a quitclaim deed from the developer in exchange for the $23,000 payment.
Alignment with City Council Goal(s): This action aligns with City Council Goal #2: Expand Economic Development Opportunities, by ensuring that strategically located former RDA property remains available for future redevelopment efforts that will advance the City’s long-term economic development strategy.
Fiscal Analysis: The reacquisition of the property requires repayment of $23,000 to the developer in accordance with the Option Agreement. This expenditure was not previously budgeted, as the original agreement and sale Item #05
were executed in 2023. A supplemental budget appropriation of $23,000 in the Fiscal Year 2025–26 budget will be necessary to authorize this payment. Funds will be appropriated from the General Fund.
Attachment(s):
1. Disposition and Development Agreement (DDA) – Nakagawa Project
2. Option Agreement for 308 C Street (APN 010-242-020)