City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-00986 May 17, 2022 Consent Item 04
Title: Purchase & Sale Agreement: Acquisition of Property from Rose R. Lorta Family Trust at 354 Bannon Street (Z14190100)
Location: 354 Bannon Street, District 4
Recommendation: Pass a Motion: 1) authorizing the City Manager or the City Manager’s designee to execute the attached Purchase and Sale Agreement in the amount of $310,000 with Rose R. Lorta Family Trust for the City’s acquisition of real property located at 354 Bannon Street; and 2) authorizing the City Manager or the City Manager’s designee to execute any related documents to consummate the purchase transaction.
Contact: Richard Sanders, Facilities & Real Property Superintendent, (916) 808-7034, [email protected]
Department of Public Works; Megan Thomas, Senior
Engineer, (916) 808-1729, [email protected] Department of Utilities
Presenter: None
Attachments:
1-Description/Analysis
2-Purchase and Sale Agreement
Description/Analysis
Issue Detail: The property located at 354 Bannon Street, referred to as parcel number 001- 0052-007 (the “Property”), was listed for sale by the owner at $425,000. The Property consists of three vacant residential housing units in poor to fair condition with a total building square footage of 2,186 square feet on a 6,534 square foot parcel of land adjacent to the City’s Sacramento River Water Treatment Plant (“Plant”). City staff have inspected the Property and determined that it is suitable for an additional security buffer zone and a possible future expansion of the Plant, and staff negotiated a purchase price of $310,000, which is the average of the values concluded by two independent appraisals conducted by third parties and represents a fair market value.
Policy Considerations: The recommendation in this report is in accordance with City Code section 3.04.020, which requires City Council approval of real property agreements involving expenditures of $250,000 or more.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): Purchase of the Property would allow for an additional security buffer zone around the Plant and potential future expansion of the Plant. However, there are currently no definitive plans for such expansion. The actions contained in this report to purchase the Property will have no significant effect on the environment and are exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3). This report only proposes execution of a Purchase and Sale Agreement for the City’s acquisition of the Property. Purchase of the Property will impose no obligation on the City for construction of an expanded Plant. No project or definitive transaction documents regarding construction shall be deemed to be approved, until after (i) the proposed project is reviewed in accordance with the requirements of CEQA, and (ii) any additional conditions or changes to the project based on the CEQA review have been resolved in a manner acceptable to the City.
As required by law, the City retains the sole and independent discretion as the lead agency to, among other things, balance the benefits of a Plant expansion project against any significant environmental impacts prior to taking final action if such significant impacts cannot otherwise be avoided, and determine not to proceed with the Plant expansion project. No legal obligations to approve the project construction exist unless and until the CEQA environmental review process has been completed.
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: Executing the recommended Purchase and Sale Agreement will give City ownership of the Property located at 354 Bannon Street, thereby allowing for an additional security buffer around the Plant and potential expansion of the Plant sometime in the future. There is currently not an established project for expansion of the Plant, but such project may be developed in the future. In the meantime, acquisition of the Property will provide additional security buffer area for the Plant.
Financial Considerations: There is sufficient funding within the Water Supply Expansion Program (Z14190100) to execute the Purchase and Sale Agreement in the amount of $310,000 (Water Development Fees, Fund 6001) with Rose R. Lorta Family Trust for the acquisition of the Property.
There are no General Funds planned or allocated towards the purchase of this Property.
Local Business Enterprise (LBE): Not applicable.