City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: JUNE 13, 2023 FROM: COMMUNITY & ECONOMIC DEVELOPMENT WARD: 3
DEPARTMENT
SUBJECT: PURCHASE, SALE AND DEVELOPMENT AGREEMENT WITH JAMES E. THORNELL FOR THE SALE OF APPROXIMATELY 11,361 SQUARE FEET OF VACANT CITY-OWNED LAND BEARING ASSESSOR’S PARCEL NUMBER 190-033-029 FOR THE SALES PRICE OF $125,000 ISSUE:
Approve the Purchase, Sale and Development Agreement with James E. Thornell for the sale of approximately 11,361 square feet of vacant City-owned land bearing Assessor’s Parcel Number 190-033-029 for the sales price of $125,000.
RECOMMENDATIONS:
That the City Council:
Approve the Purchase, Sale and Development Agreement (Attachment 1 – Agreement) with James E. Thornell for vacant City-owned land located at 6018 William Street, bearing Assessor’s Parcel Number 190-033-029 (Property) for the sales price of $125,000; and Authorize the City Manager, or designee, to execute the Agreement, including making minor, non-substantive changes, and to sign all documents necessary to complete the transaction.
BACKGROUND:
Enacted in 1968, the Surplus Land Act requires all local agencies to prioritize affordable housing when disposing of surplus land.
On January 25, 2006, the City Council approved the Jurupa Avenue Grade Separation Project which was initiated to reduce the congestion and inconvenience of the Union Pacific railroad crossing at Jurupa Avenue by reconstructing the existing four lanes and building a two-track railroad bridge.
On July 11, 2006, the City Council approved the acquisition of the Property required for the construction of the Jurupa Avenue Grade Separation Project.
In 2014, the State amended the Surplus Land Act to better define what constitutes a qualified proposal, prioritize proposals to encourage the most units at the deepest affordability, and provide more realistic timeframes to make and negotiate offers.
On December 18, 2018, City Council approved the surplus declaration and authorized the marketing and sale of the Property at fair market value per the City’s Administrative Manual Section 08.003.00 for the Disposition and Sale of City-Owned Real Property.
The Public Works Director concurred with the sale of the Property.
DISCUSSION:
The Property is a remnant parcel from the Jurupa Avenue Grade Separation Project. The consultant, James E. Thornell, proposes to construct a single-family residence at the site. The Property, as shown on the aerial site map below, is zoned R-1-7000, Single Family Residential, with a General Plan designation of Medium Density Residential and is currently vacant land. The proposed construction aligns with the General Plan and will help stabilize and revitalize this area of the neighborhood.
An independent third-party appraiser concluded that the value of the Property was $115,000 in its current “as-is” condition. Staff reviewed the report and determined that the appraised value represents current fair market value. James E. Thornell was awarded the bid with his offer of $125,000.
The basic term of the agreement provides for a 90-day escrow period in which the Buyer shall have 30 days to perform due diligence. There are no broker fees. The Buyer shall be responsible for obtaining any project development entitlements at his sole cost and expense. Additionally, the Buyer will be responsible for all costs associated with obtaining title and half of the escrow fees of this transaction.
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority 5 – High Performing Government and Goal 5.4 – Achieving and maintaining financial health by addressing gaps between revenues and expenditures and aligning resources with strategic priorities to yield the greatest impact.
The item aligns with each of the five Cross-Cutting Threads as follows:
Community Trust – Riverside is transparent and makes decisions based on sound policy, inclusive community engagement, involvement of City Boards & Commissions, and timely and reliable information. The City negotiated this transaction transparently and in good faith. Approving the Purchase, Sale & Development Agreement in an open meeting demonstrates that the City is transparent and committed to community trust and makes decisions that serve the public interest.
Equity – Riverside is supportive of the City’s racial, ethnic, religious, sexual orientation, identity, geographic, and other attributes of diversity and is committed to advancing the fairness of treatment, recognition of rights, and equitable distribution of services to ensure every member of the community has equal access to share in the benefits of community progress. City Council approval of the Purchase, Sale & Development Agreement demonstrates equitable, fair market values while maximizing public funds through growth and accountability.
Fiscal Responsibility – Riverside is a prudent steward of public funds and ensures responsible management of the City’s financial resources while providing quality public services to all. The subject property is currently vacant and underutilized. The disposition of the property ensures the responsible management of the City’s financial resources in a manner consistent with prudent stewardship while facilitating beneficial investment in the City of Riverside.
Innovation – Riverside is inventive and timely in meeting the community’s changing needs and prepares for the future through collaborative partnerships and adaptive processes. Approving the sale of the subject property demonstrates that Riverside works diligently, is creative and timely in meeting the community's changing needs by preparing for the future through collaborative partnerships and adaptive processes.
Sustainability & Resiliency – Riverside is committed to meeting the needs of the present without compromising the needs of the future and ensuring the City’s capacity to persevere, adapt and grow during good and difficult times alike. Disposing of the subject parcel allows Riverside to continue with sustainable residential development without compromising the needs of the future and ensuring the City’s capacity to grow during challenging times.
FISCAL IMPACT:
The Property is City-owned and is being sold for $125,000 minus related title, escrow, and miscellaneous closing costs estimated not-to-exceed $5,000. The estimated net proceeds from the sale in the minimum amount of $120,000 shall be deposited into the Special Gas Tax Fund, Sale of Land & Buildings account 0000230-380010.
Prepared by: Jennifer A, Lilley, AICP
Community & Economic Department Director
Certified as to
availability of funds: Edward Enriquez, Interim Assistant City Manager/Chief Financial Officer/Treasurer Approved by: Rafael Guzman, Assistant City Manager Approved as to form: Phaedra A. Norton, City Attorney
Attachments:
Purchase, Sale and Development Agreement
Presentation
PVV
3/20/2023
(G)/Real_Property\Document\Ward 3\2023\23-3-004-Council-Memo-Jurupa Surplus- 6018 William St. (V2) Jurupa Ave. Surplus Land – APN 190-033-029 ● Page 2