City Council Agenda Report
TO: Mayor McCord and Members of the City Council
FROM: Ken Irwin, City Manager
BY: Ken Irwin, City Manager
MEETING DATE: November 15, 2022
ITEM NO: 7.4
SUBJECT: Resolution No. 2022-80 to Approve and Authorize Execution of a Purchase and Sale Agreement for the Property Located at 33 South Del Puerto Avenue, for a Permanent Location for the Patterson Public Safety Center.
RECOMMENDATION
Adopt Resolution No. 2022-80 to approve and authorize execution of a Purchase and Sale Agreement for the property located at 33 South Del Puerto Avenue, for a permanent location for the Patterson Public Safety Center.
BACKGROUND
This item relates to the acquisition of a permanent location for the Patterson Police Department, as well as other public safety services.
The City contracts with the Stanislaus County Sheriff’s Department who provides law enforcement services for the City. The current location of the Patterson Police Department is 33 South Del Puerto Avenue, just south of City Hall (the “Property”). The City currently leases the Property pursuant to a lease agreement with the property owner.
The City seeks to turn the Property into a new Public Safety Center to provide more space and resources for the Police Department, accommodate Fire Department admin. Personnel, and also create more space for City Hall. This will involve demolishing the Property and new construction to expand the footprint of the Property. Given the plans for the Property, the City must acquire and own the Property.
The City previously determined that it would be in the City’s best interest to acquire the Property, so the City can complete the design and construction of the new Public Safety Center.
The City also communicated to the Property Owner that it would commence condemnation proceedings to acquire the Property if the parties could not agree to terms. To avoid the expense and time of acquiring the Property by condemnation, the parties have agreed to terms on the purchase and sale of the Property, whereby the Property Owner will sell the Property to the City for fair market value under the threat of condemnation. The terms for the purchase of the Property are summarized below.
SUMMARY OF TERMS
Staff has negotiated the following terms with the property owner, based on appraisal information for the fair market value of the Property:
· Purchase Price: $750,000
· Deposit: 3% of Purchase Price ($22,500)
· Closing Period: 21 days
FISCAL IMPACT
The Purchase Price would come from the General Fund, or may also come from Public Safety Impact Fees collected from new development. Staff has determined that there are sufficient funds to carry out the transaction.
ALTERNATIVE ACTIONS
The City Council’s options regarding the Resolution include:
1. Adopt the Resolution No. 2022-80
2. Continue the item to a later meeting of the City Council and provide direction to staff for any changes; or
3. Reject the Resolution No. 2022-80
ATTACHMENTS
Resolution No. 2022-80
Purchase & Sale Agreement for Property (Exhibit A to Resolution)