RIVERSIDE
City Council Memorandum
City of Arts & Innovation
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: DECEMBER 19, 2023 FROM: COMMUNITY & ECONOMIC DEVELOPMENT WARD: 3
DEPARTMENT
SUBJECT: PURCHASE AND SALE AGREEMENT WITH CRAIG ROUBINEK FOR THE SALE OF APPROXIMATELY 25,415 SQUARE FEET VACANT CITY-OWNED LAND, A
PORTION OF THE BROCKTON ARCADE PARKING LOTS BEARING
ASSESSOR'S PARCEL NUMBERS 225-213-002, 225-213-020, AND 225-213- 021 FOR THE SALES PRICE OF $52,250
ISSUE:
Approve the Purchase and Sale Agreement with Craig Roubinek for the sale of approximately 25,415 square feet vacant City-owned land, a portion of the Brockton Arcade Parking Lot bearing Assessor's Parcel Numbers 225-213-002, 225-213-020, and 225-213-021 for the sales price of $52,250.
RECOMMENDATIONS:
That the City Council:
1. Approve the Purchase and Sale Agreement (Attachment 1 - Agreement) with Craig Roubinek for the sale of approximately 25,415 square feet vacant City-owned land as a portion of the Brockton Arcade Parking Lots for the sales price of $52,250; and
2. Authorize the City Manager, or his designee, to execute the Agreement, including making minor and non-substantive changes, to sign all documents necessary to complete the transaction, and to expend up to $7,000 for title, escrow, and miscellaneous related closing costs.
COMMITTEE RECOMMENDATION:
The Financial Performance and Budget Committee met on February 12, 2021, with Chair Hemenway, Vice Chair Plascencia and Member Fierro present, to consider the disposition of seven City-owned properties for potential declaration as surplus to generate sales revenue and reduce operational costs that could help address the CaPERS challenge and COVID-19 related financial impacts. After discussion, the Committee unanimously voted to direct staff to present the properties to the City Council for consideration and to take appropriate action.
Brockton Arcade Parking Lots - PSA • Page 2
BACKGROUND:
On July 10, 2019, staff provided information to the Finance Committee on three City-owned properties with high liquidation value for possible sale to generate revenue that could be useful to help address the CaPERS Challenge. The three properties included: 1) Fox Entertainment Plaza (Fox Theater, Showcase, Box, Food Lab and Parking Garage 7); 2) Riverside Municipal Auditorium; and 3) Riverside Convention Center. The Finance Committee directed staff to return with a comprehensive list of City-owned properties that could generate sales revenue to support the General Fund.
On July 8, 2020, staff provided information to the Financial Performance and Budget Committee (Committee) on City-owned properties with potential economic benefits to generate sales revenue or reduce operating costs to the General Fund. The Committee directed staff to present the list of 20 properties to the Budget Engagement Commission for further consideration.
On September 10, 2020, staff presented the list of City-owned properties to the Budget Engagement Commission to determine which specific properties should be recommended to City Council to be declared as surplus for staff to sell as a possible solution to address the CaPERS Challenge and financial impacts associated with COVID-19. The Budget Engagement Commission recommended that 15 properties be retained by the City and seven (7) properties be considered for sale and directed staff to present these properties with their recommendations to the Committee before seeking City Council approval.
On October 14, 2020, staff presented the list of various City-owned properties to the Committee to determine which properties should be recommended to City Council to be retained, leased, or declared as surplus. The Committee directed staff to return and present the seven (7) properties to be considered for sale, along with any additional updated information from staff on the status of these properties.
On February 12, 2021, staff provided information to the Committee on the City-owned Brockton Arcade Parking Lot properties to be leased or declared as surplus, to sell to private entities or community corporations, to either generate sales revenue or reduce operating costs. After discussion, the Committee unanimously voted to direct staff to present the list of properties to the City Council for consideration and to take appropriate action.
On May 25th, 2021, the City Council passed Resolution No. 23711, which declared a portion of the Brockton Arcade Parking Lot as surplus property. The properties identified as Assessor Parcel Numbers 225-213-002, 225-213-020, and 225-213-028, have been authorized for marketing and sale pursuant to Assembly Bill 1486 and in accordance with the City's Administrative Manual
8.003.00 for the Disposition and Sale of City-Owned Real Property.
DISCUSSION:
The Public Works Department has indicated they have no need for this Property. Before disposing or participating in negotiations with prospective buyers, a written notice of availability was sent to the affordable housing developers registered with the State's Department of Housing & Community Development (HCD), and per California Government Code Section 54220, et seq., staff notified other public agencies of the availability of the Properties for 60 days. No interest was received from any public agency, nor any affordable housing developer listed with HCD.
Brockton Arcade Parking Lots - PSA • Page 3
An independent third-party appraiser provided an appraisal that concluded to a value of $51,000 for the Properties in their as-is condition. Staff reviewed the report and determined that the appraised value represents the current fair market value. The City received a bid of $52,259 from Craig Roubinek, which was awarded to him. Mr. Roubinek plans to maintain the current use of the land as a parking lot for the existing tenants and patrons of the Brockton Arcade shopping center.
The Properties are zoned Commercial General and are located within the Magnolia Avenue Specific Plan (CG-SP), which allows for service commercial retail, office, and repair uses. The Properties consist of multiple parcels containing a general area of 0.58 acres, or 25,265 square feet.
These parcels are non-contiguous and are located within and around a commercial retail center known as the Brockton Arcade. The Properties serve as a portion of the surface parking for the Brockton Arcade and surrounding commercial developments. The City does not generate any income from these properties, and there are no restrictions nor agreements with any shopkeepers for the use of the parking area.
APNS
225-213 -002 0205
E 66i
MAGNOLIA APN:
225-213-021
20 Brockton Ave.
8232nрg.
The basic terms of the Agreement provide the Buyer with a 30-day due diligence period to review the conditions of the property and apply to the Planning Division for project design review of the proposed development. A $5,000 deposit is due within 2 days of the Effective Date of the mutually executed Agreement. The Buyer will be responsible for obtaining any project development entitlements and permits at its sole cost and expense.
The Public Works Department Director concurs with the recommendations in this report.
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:
Brockton Arcade Parking Lots - PSA • Page 4
1. Community Trust - The City 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 and Sale Agreement in an open meeting demonstrates that the City is transparent, committed to building community trust and prioritizes decisions that serve the public interest.
2. Equity - The City 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 the benefits of community progress. City Council's approval of the Purchase and Sale Agreement demonstrates equitable, fair market values, while enhancing public funds through growth and accountability.
3. Fiscal Responsibility - The City 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 Property is a portion of the Brockton Arcade Parking Lots, and the City does not generate any income from these properties. 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.
4. Innovation - The City is inventive and timely in meeting the community's changing needs and preparing for the future. Approving the sale of the Property demonstrates that the City works diligently with developers to generate new income through collaborative partnerships and adaptive processes.
5. Sustainability & Resiliency - The City 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 Property allows the City to proceed with sustainable development without jeopardizing the future requirements of its constituents. This move ensures that the City can continue to grow and prosper even during challenging times.
FISCAL IMPACT:
The total fiscal impact for this action is $52,250 minus related title, escrow, and miscellaneous closing costs estimated not-to-exceed $7,000. The estimated net proceeds from the sale of the minimum amount of $45,250, shall be deposited into the General Fund, Sale of Land & Buildings Account 0000101-380010.
Prepared by: Patricia Villa, Real Property Agent
Approved by: Jennifer A. Lilley, Community & Economic Development Director Certified as to
availability of funds: Kristie Thomas, Finance Director / Assistant Chief Financial Officer Approved by: Rafael Guzman, Assist City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Brockton Arcade Parking Lots - PSA • Page 5
Concurs with:
Steve Hemenway, Chair
Financial Performance and Budget Committee
Attachments:
1. Purchase and Sale Agreement
2. Presentation
PV:
10/31/2023
G:Real_Property/Documents|Ward 312023\23-3-050-Council Memo - Brockton Arcade