CITY OF MERCED
ADMINISTRATIVE REPORT
Merced Civic Center
678 W. 18th Street
Merced, CA 95340
File #: 22-276 Meeting Date: 4/4/2022
Report Prepared by: Joe Cardoso PLS, City Surveyor
SUBJECT: Approval of a Fourth Amendment to the Purchase and Sales Agreement Between the City of Merced and Valley Children’s Healthcare for the Parcel Located at 301 West Yosemite Ave
REPORT IN BRIEF
Consider modifying the terms of the purchase and sales agreement with Valley Children’s Healthcare to the purchase the vacated 64-foot right-of-way.
RECOMMENDATION
City Council - Adopt a Motion:
A. Approving the Fourth Amendment to the Purchase and Sales Agreement between the City of Merced and Valley Children’s Healthcare; and,
B. Authorizing the City Manager or Deputy City Manager to execute all related documents.
ALTERNATIVES
1. Approve as recommended by staff; or
2. Approve, subject to condition as specified by City Council; or
3. Deny the request; or,
4. Refer back to staff for reconsideration of specific items as requested by the Council; or,
5. Defer action until a specified date.
AUTHORITY
Charter of the City of Merced, Section 200.
Government Code Title 5, Article 8, Surplus Land, Section 54221(f)(1)(E)
CITY COUNCIL PRIORITIES
Provide the community with much needed children’s healthcare facilities.
DISCUSSION
Valley Children’s Healthcare entered into an agreement to purchase 4.54 acres form the City of Merced (Purchase and Sales Agreement) on February 19, 2019 as approved by the City Council.
The subject site was purchased at a price of $2.1-million and the City received the funds. A deed was later recorded as Grant Deed 2020-042266, Merced County Records. This purchase did not CITY OF MERCED Printed on 4/4/2022Page 1 of 3
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ATTACHMENT 2
File #:22-276 Meeting Date: 4/4/2022
include any portion of the 64-foot road right-of-way north of the subject property and between Mansionette Drive and Sandpiper Avenue.
During Valley Children’s Healthcare’s design process to construct a medical facility, their team noticed the need to add land to incorporate into their design and make this a better project for the community. This was brought to the attention of City Staff and it was determined that the 64-foot road right-of-way was no longer need. The City owned the underlying fee title to the southern 32 feet of the 64-foot road right-of-way and could simply vacate that portion of the road right-of-way. City Council took action March 2, 2021, to vacate the southern 32 feet of the road right-of-way and approved Resolution 2021-12, which was recorded in Document 2021-009866, Merced County Records.
It was later determined that retaining the northern 32-feet of right-of-way was no longer needed. City Council took action on June 21, 2021, to vacate the northern 32 feet of the 64-foot road right-of-way and approved Resolution 2021-46, which was recorded in Document 2021-027893, Merced County Records. The property would revert back to the original owners, which are Shelley Cox, Executor of the Estate of Della Wathen, Probate Case No. CE PR 00885, Superior Court of California, County of Fresno, and Shelley Cox, Terry Lombardi and Cindi Wathen, Successors Co-Trustees of the Spalding G. Wathen Q-Tip Trust.
The property owners later contacted staff with the desire to transfer the northern 32 feet of the vacated right-of-way to the City of Merced at no cost. On February 22, 2022, City Council took action to accept this strip of land in fee and recorded Grant Deed 2022-010600, Merced County Records.
During ongoing negotiations with Valley Children’s Healthcare, it was suggested that the vacated 64 foot of right-of-way be transferred to Valley Children’s Healthcare to allow for the expansion of their medical facility and to better serve the community. Subject to City Council approval.
Both the southern and northern 32 feet of the vacated right-of-way are “exempt surplus land under the under California Government Code section 54221(f)(1)(E) for surplus land that is a former street, right of way, or easement, and is conveyed to an owner of an adjacent property.
The Fourth Amendment Key Changes:
Covenant to Construct: The construction would start within 24 months after close of escrow.
Escrow: Escrow shall open within 5 days after full execution of the agreement and will close not later than 120 days thereafter. Buyer shall pay all escrow fees and title insurance.
Repurchase Rights: The repurchase rights will include the southern 32 feet and the northern 32 feet of the abandoned right-of-way.
Parcel Merger: the original parcel along with the southern 32 and the northern 32 feet of abandoned right-of-way would need to be merged into one parcel at the time of closing of escrow.
Staff is recommending Council approve the Fourth Amendment to the Purchase and Sales CITY OF MERCED Printed on 4/4/2022Page 2 of 3
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File #:22-276 Meeting Date: 4/4/2022
Agreement.
Project Description: As a reminder, Valley Children’s Healthcare plans to expand services in Merced, by developing a pediatric primary and specialty care medical office building on the Former Police Headquarters Site. Valley Children’s pediatricians and pediatric specialists would be the occupants of the medical office building. The first phase of the building may consist of 15,000 to 20,000 square feet. They anticipate that demand for pediatric services in Merced could grow to require a 40,000-square-foot medical office at full build- out.
IMPACT ON CITY RESOURCES
No appropriation of funds is needed.
ATTACHMENTS
1. Fourth Amendment Purchase and Sales Agreement
2. Location Map
3. Grant Deed 2010-015020
4. Grant Deed 2022-010600
CITY OF MERCED Printed on 4/4/2022Page 3 of 3
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8 Exhibit B
Remainder Property
744
South ROW Parcel
All that portion of Remainder Das shown on, "FINAL MAP FOR MANSIONETTE ESTATES UNIT 2", recorded in Volume 55, of Official Plats, at Pages 12, 13 and 14, Merced County Records, being more particularly described as follows:
COMMENCING at the northwest corner of said Remainder D; Thence South 00°42'36" West, 283.54 feet along the west line of said Remainder D to TRUE POINT OF BEGINNING;
{1) thence North 89°56'09" East, 612.97 feet parallel with the north line of said Remainder D to the east line of said Remainder D;
(2) thence South 00°42'17" West, 33.14 feet along the said east line of Remainder D; {3) thence North 44°40'47" West, 1.60 feet;
(4) thence South 89°56'09" West, 606.93 feet parallel with and 32.00 feet south of course {1); (5) thence South 45°19'22" West, 6.99 feet to the west line of Remainder D; (6) thence North 00°42'36" East, 36.91 feet to the POINT OF BEGINNING.
The above-described strip of land is delineated on Exhibit B, attached hereto, and made a part thereof and contains 19,627.87 Square feet.
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A strip of land situated in the South West One Quarter {SW 1/4) of Section 8, Township 7 South, Range 14 East, M.D.B. & M., City of Merced, County of Merced, State of California, said strip of land being a portion of Remainder D, as said Remainder D is delineated on the certain map entitled, "Final Map for Mansionette Estates Unit 211
, recorded in Volume 55 of Official Plats at Pages 12-14, Merced County Records, said strip of land being more particularly described as follows:
Commencing at the northwest corner of said Remainder D; thence S00°42'36"W, along the west line of said Remainder D, a distance of 283.54 feet to the northwest corner of that certain real property described in Grant Deed to the City of Merced, recorded on April 22, 2010, as Document 2010-015020, Merced County Records and the POINT OF BEGINNING of the hereon described strip of land; thence N89°56'09"E, along the north line of thereof, a distance of 612.97 feet to the East line of said Remainder D; thence N00°42'17"E, along the east line of said Remainder D, a distance of 32.92 feet to the southeast corner of that certain real property described in Grant Deed to the City of Merced, recorded as Document Number 2017-028954, Merced County Records; thence S45°19'13"W, along the southeasterly line thereof, a distance of 1.30 feet to the south line thereof; thence S89°56'09"W, along the south line thereof and the prolongation thereof, a distance of 612.05 feet to the west line of said Remainder D, thence S00°42'36"W, along said Remainder D, a distance of 32.01 feet to the POINT OF BEGINNING.
The above-described strip of land is delineated on Exhibit B, attached hereto, and made a part thereof.
The above-described strip of land contains 19,618 Sq. Ft., more or less, and is subject to any liens, encumbrances, covenants, restriction, and rights-of-way or easements of record or legally acquired.
North ROW Parcel
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Exhibit C
[Combined Parcel]
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CITY OF MERCED
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DEED 2017-028954, M.C.R.
S89"56'09"W 612.97'
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Deed 2019-002867, M.C.R.
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678 W. 18th Street (209) 385-6846
EXHIBIT C File No.
SCALE: 1•=100'
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PORTION OFREMAINDER D55 O.P. 12 M.C.R.
CITY OF MERCEDSTORM DRAIN BASIN2017-028954, M.C.R.
VALLEY CHILDREN'S HEALTHCAREGRANT DEED2020-042266, M.C.R.
CITY OF MERCED PORTION OFGRANT DEED 2010-015020, M.C.R.
CITY OF MERCED GRANTDEED 2022-010600, M.C.R.
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