City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2026-00539 3/10/2026
[Contract] Acquisition of Real Property from St. Luke Lutheran Church of Sacramento (W14150700)
File ID: 2026-00539
Location: 7595 Center Parkway, APN 050-0020-018-0000 (portion of) and 050-0020-019-0000, District 5
Recommendation: Pass a Motion: 1) authorizing the City Manager or designee to execute the attached contract in the amount of $356,000 with St. Luke Lutheran Church of Sacramento to purchase a portion of the property located at 7595 Center Parkway; and 2) authorizing the City Manager or designee to execute any related documents to consummate the purchase transaction.
Contact: Richard Sanders, Facilities & Real Property Superintendent, (916) 808-7034, [email protected]; James Christensen, Facilities Manager, (916) 808-5863, [email protected]; Department of Public Works; Gary Gulseth, Senior Engineer, (916) 808-1415, [email protected], Department of Utilities Presenter: None
Attachments:
1-Description/Analysis
2-Contract
Description/Analysis
Issue Detail: The City of Sacramento, Department Utilities (DOU) has determined that additional storm drainage capacity is required in the neighborhood located near Center Parkway and Florin Creek, also identified as Basin 67. A large portion of the property located at 7595 Center Parkway, identified as Assessor parcel numbers 050-0020-018-0000 and 050-0020-019-0000 (the “Property”) is currently unimproved and is of sufficient size for the construction of a storm water detention basin.
The Property is owned by St. Luke’s Lutheran Church of Sacramento (Property Owner) and they were willing to negotiate with the City for the acquisition of the Property. The Property was appraised by Pattison and Associates for $350,000, and subsequent negotiations with the Property Owner resulted in an agreed upon purchase price of $356,000.
Policy Considerations: The recommendation in this report is in accordance with City Code Chapter
File ID: 2026-00539 3/10/2026
3.04.010, 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): Per the California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3), approval of the proposed purchase agreement for the subject property is exempt from the CEQA, under the common-sense exemption that CEQA only applies to actions with potential to significantly affect the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on an environmental resource, the activity is not subject to CEQA. Approval of the purchase agreements will not affect the environment. Work that may be completed following approval of the purchase agreements, including the development of a detention basin has been determined to be exempt from CEQA pursuant to CEQA Guidelines Sections 15303 (New Construction). The work consists of the construction and location of new small facilities.
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Executing the recommended Purchase and Sale Agreement will give City ownership of a portion of parcel numbers 050-0020-0018-0000 and 050-0020-019-0000, thereby allowing for the construction of a storm water detention basin to provide additional flood protection in the surrounding neighborhood.
Financial Considerations: There is sufficient funding within the St. Luke’s Detention Basin Project (W14150700) to execute the Purchase and Sale Agreement in the amount of $356,000 (Storm Drainage Fund 6011 and Storm Drainage Grant Fund 6211) with St. Luke Lutheran Church of Sacramento 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.
File No.: ACQ-24-01-00
Project: Florin Creek Pump Station
Parcel No.: 050-0020-018 and 050-0020-019
Work Order #3201846
Escrow #: 01 02500859-PA
Title Company: Fidelity National Title
Date of Preliminary Title Report: 5/29/2025
Grantor: St. Luke Lutheran Church of Sacramento, California, a corporation Grantee: CITY OF SACRAMENTO, a Municipal Corporation
AGREEMENT FOR ACQUISITION OF REAL PROPERTY IN FEE
This Agreement for Acquisition of Real Property in Fee (<'Agreement") is made at Sacramento, California as of ("Effective Date"), byand between St. Luke Lutheran Church of Sacramento, California, a corporation, ("Grantor") and the City of Sacramento, a municipal corporation ("City").
Background
A. The above-named Grantor owns certain real property described in the grant deed ("Grant Deed") attached hereto as Exhibit "A" (collectively referred to as the "Property").
B. Grantor desires to convey and the City desires to acquire fee title to a portion of the Property, as described in the Grant Deed, on the terms and conditions set forth herein.
C. The acquired property interests will be acquired to install a City Detention Basin (the "Project"), which involves constructing a new detention basin to improve drainage and reduce flooding.
Based on the facts in the foregoing background, Grantor and City agree as follows:
1. Execution and Delivery of Grant Deed. City has openned an escrow with Fidelity National Title Company, 8525 Madison Avenue, Suite 110, Fair Oaks, California 95628, Paul Avila, Escrow Officer (916) 791-4217 (hereafter referred to as the "Escrow Holder). Upon execution or this Agreement by both parties, Grantor shall execute and deliver the Grant Deed to the Escrow Holder. l
2. Payment. Upon execution of this Agreement by both parties, City shall tender payment to the Escrow Holderin the amount of Three Hundred Fifty Six Thousand ($356,000), which is specifically agreed by the parties to be the full amount of compensation due and owing to Grantor For conveyance or the Grant Deed to the City.
3. Fee Title Free of Encumbrances. Grantor agrees and covenants that fee title to the Property shall be conveyed to City free and clear of all rights, restrictions, easements, impediments, encumbrances, liens and assessments or other security interests of any kind (hereafter collectively reTerred to as "Encumbrances"), and that Grantor at Grantor's expense shall take all actions necessary to remove any, and all Encumbrances prior to, and as an express condition precedent to, the close of escrow, except as follows:
A. Taxes for the fiscal year in which the escrow closes shall be cleared and paid for in the manner required by Section 4986 oT the Revenue and Taxation Code. As a deduction from the amount shown in section 2, above, the City shall be authorized to pay any delinquent taxes due in any fiscal year, except the fiscal year in which this escrow closes, together with penalties and interest thereon; and B. Grantorshallnotberequiredtoremove:(1)easementsorrights-or-wayTorpublic roads or public utilities, if any; and (2) items specifically identified on Exhibit "B" attached hereto, if any.
4. Title Insurance. City may obtain a CLTA extended coverage owner's policy or title insurance insuring that clear title to the Property is vested in City upon recording of the Grant Deed.
5. Escrow. Unless extended by the mutual agreement or both parties, the escrow shall close forty five (45) days after execution of this Agreement by both parties, or ten (10) days after the expiration of the Due Diligence Period described in section 7, below, or ten (10) days after expiration of the Cure Period described in section 7, below, whichever occurs later; provided that if a Resolution or Resolutions of Necessity are required in orderto condemn any property required forthe above-named Project, the escrow shall not close priorto the adoption of the Resolution(s) of Necessity by the City Council. If a Resolution or Resolutions of Necessity are required and the City Council does not adopt the Resolution(s), this Agreement may, at City's election, be deemed cancelled and of no force and effect, in which event both parties shall be released from any, and all liability to each otherof any sort or nature relating to this acquisition or the Project, and all amounts deposited in escrow by City shall be returned forthwith to City by the Escrow Holder.
The Escrow Holder may expend any or all monies payable underthis Agreement and deposited into escrow to discharge any obligations which are liens upon the Property, including, but not limited to, those arising from judgments, assessments, delinquenttaxesforotherthanthefiscal year in which the escrow closes, or debts secured by deeds of trust or mortgages, and/or to defray any other incidental costs other than those specified in section 6 hereof to be borne by the City. The Escrow Holder shall release payment to Grantor, return any credited amounts to City, and record the Grant Deed in the Recorder's Office forSacramento County upon the close or escrow. Title to the Property described in the Grant Deed shall pass to City immediately 2 upon close of escrow.
This Agreement may serve in whole or in part as escrow instructions. The issuance of any Further escrow instructions shall be the sole responsibility of City. The Grantor agrees to execute such additional documents as may be reasonably necessary to consummate the purchase and sale herein contemplated.
6. Fees. The City shall pay all escrow, recording and title insurance fees incurred in this transaction.
7. Due Diligence Period. City shall have a total of thirty (30) days from the date this Agreement is approved by both parties as its due diligence period ("Due Diligence Period"), in which to disapprove of any physical or environmental conditions or aspects of the Property, or any other matter affecting City's decision to purchase the Property, which arise or become known to City during the Due Diligence Period. The Due Diligence Period may be extended by the mutual agreement of both parties. City may enter upon the Property at any time during the Due Diligence Period to perform environmental site assessments, testing, monitoring or any otherform ofinspection orinvestigation to ascertain the physical orenvironmental conditions or aspects of the Property. City shall repair any damage caused by its assessment, testing, monitoring or other inspection or investigation activities on the Property, and the City's indemnification and defense obligations under Section 13 of this Agreement shall applyto such activities.
If, at any time within the Due Diligence Period, City delivers to Grantor written notice of its disapproval ofany physical orenvironmental conditions oraspects ofthe Propertyoranyother matter affecting City's decision to purchase the Property, Grantor shall have 30 days from and afterthe delivery of such notice (unless such time is extended by the mutual agreement of both parties) within which to correct all such disapproved matters ("Cure Period"). If Grantordoes not correct such disapproved matters to the satisfaction of the City within the Cure Period, City's exclusive remedies shall be as follows: At City's election, either (1 )terminate the Agreement, without any liability on the part of either party and with City receiving a refund of all amounts deposited in escrow, less the City's share of escrow costs and fees, or (2) purchase the Property in accordance with the terms of this Agreement without a reduction in the purchase price and without any liability on the part of Grantor for said disapproved matters. City shall provide Grantorwith written notice or City's election to terminate the Agreement or purchase the Property in accordance with this Agreement as the case may be, not later than five (5) days after the expiration of the Cure Period.
If City does not deliver any written notice of disapproval to Grantor, as specified above, during the Due Diligence Period, City shall purchase the Property in accordance with the terms of this Agreement.
8. Eminent Domain.
A. ltismutuallyunderstoodthattheacquisitionofthePropertybyCityisforapublic purpose, and therefore, the Property is otherwise subject to taking by the power of eminent domain. The acquisition by and through this Agreement is in lieu of City's 3 exercise of the power of eminent domain,
9, Amendment. This agreement may be modified, changed, or rescinded only by an instrument in writing executed by the parties hereto.
10. Just Compensation. Grantor agrees that performance of this Agreement by City, including the payment recited in Section 2, above, shall constitute full and fair compensation and consideration for any and all claims that Grantor may have against City by reason of the acquisition,improvement, possession oroccupancyoTthe Property, and Grantorherebywaives any and all such claims, including claims for severance ortaking compensation ordamages on account of the acquisition of the Property or the location, establishment, construction or operation of the above-named Project on the Property. The Toregoing waiver shall include any and all rights or claims that Grantor may have under Article 1, section 19 of the California Constitution, the Eminent Domain Law, or any other law or regulation; provided thatthis section shall not apply to claims for relocation assistance, if any, to which Grantor may be entitled pursuant to applicable sections in Chapter 16 of Division 7 of Title 1 of the California Government Code.
11. No Leases. Grantor warrants that there are no leases on all or any portion of the Property, and the Grantor further agrees to hold the City harmless and reimburse the City for any of its losses and expenses occasioned by reason of any lease of said Property.
12. Grantor's Representations.
A. Grantor makes the following representations and warranties:
(1 ) Grantor certifies that it owns full legal title to the Property and has full power and authority to convey all property rights described herein to City. (2) To the best of Grantor's knowledge there is no suit, action, arbitration, legal, administrative, or other proceeding or inquiry pending or threatened against the Property, or any portion thereof, or pending or threatened against Grantor which could (1 )affect Grantor's title to the Property, or any portion thereof, (2) affect the value of the Property, or any portion thereof, or (3) subject an owner of the Property, or any portion thereof, to liability.
(3) To the best of Grantor's knowledge there are no uncured notices which have been served upon Grantor from any governmental agency notifying Grantor of any violations of law, ordinance, rule, or regulation which would affect the Property or any portion thereof.
(4) Grantor has no knowledge of the production, storage, disposal, presence, observance, or release of any Hazardous Substances (as defined below) in, upon, about or below the Property.
(5) To the best of Grantor's knowledge, there are no notices or other information giving Grantor reason to believe that any conditions existing on the Property or in the 4 vicinity of the Property subject or could subject an owner of the Property to potential liabilities under any Environmental Law (as defined below). (6) Grantor has no knowledge of any violation of any Environmental Law arising out of Grantor's ownership or use of the Property, nor of any legal, administrative, or other action or proceeding, pending, or threatened, affecting the Property, and relating to environmental compliance.
(7) TothebestofGrantorlsknowledgethereisnolicense,permit,option,rightoffirst refusal or other agreement, written or oral, which affects the Property or any portion thereof.
(8) To the best of Grantor's knowledge conveyance of the property rights described herein will not constitute a breach or default under any agreement to which Grantor is bound and/or to which the Property is subject.
B. EachoftheabovewarrantiesandrepresentationsismaterialandisrelieduponbyCity, Each of the above representations shall be deemed to have been made as of the date that the Grant Deed is recorded and shall survive the recording oT the Grant Deed by a period oT two years following the date that the Grant Deed are recorded. If, before the recording of the Grant Deed, Grantor discovers any information or facts that would materially change any of these warranties and representations, Grantor shall immediately give notice to City of such facts and information. If any of the foregoing warranties and representations cease to be true before the recording of the Grant Deed, Grantor shall be obligated eitherto remedythe problem before the recording of the Grant Deed or deduct from the payments required by Section 2, above, as a credit to City, the amount reasonably required to remedy the problem.
C. As used in this Agreement, the term "Hazardous Substances" means any substance, material, waste or other pollutant or contaminant that is or becomes designated, classified and/or regulated as hazardous ortoxic underanyfederal, state orlocal law, statute, ordinance, regulation, rule, order, decree, or other governmental requirement now in effect or later enacted. Any liability associated with the presence of any Hazardous Substances on or adjacent to any portion of the Property shall be governed by the provisions of Section 14 below, regardless of whether any inspection, examination, sampling, testing, assessment or other investigation is conducted by City.
13. Indemnification. Eachparty(hereafterthe"IndemnifyingParty")agreesandcovenants to indemnify, defend (with counsel acceptable to the other party, which consent shall not be unreasonably withheld), and hold the other party, and its officers, employees and agents, harmless from and against any and all liabilities, penalties, losses, damages, costs, expenses (including reasonable attorneys' fees, whether for outside or staff counsel), causes of action, claims, or judgments that arise by reason of any death, bodily injury, personal injury, property damage, or violation of any law or regulation resulting from any acts oromissions related to the performance of this Agreement or the occupancy or use of the Property (including, but not limited to, the use, storage, treatment, transportation, release, or disposal of Hazardous Substances on or about any portion of the Property), by the Indemnifying Party, its officers, employees, agents or any other person or entity employed by or acting on its behalf. 5 The parties further agree and understand as follows: a party does not, and shall not be deemed to, waive any rights against the other party which it may have by reason of the aforesaid indemnity and hold harmless agreement because of any insurance coverage available; the scope of the aforesaid indemnity and hold harmless agreement is to be construed broadly and liberally to provide the maximum coverage in accordance with their terms; no specific term or word contained in this Section 13 shall be construed as a limitation on the scope of the indemnification and defense rights and obligations ofthe parties unless specifically so provided.
The provisions of this Section 13 shall survive the recording of any deeds hereunder.
14. Attorney Fees. If either party brings a suit or proceeding to enforce the terms of this Agreement, each party shall bear its own costs and expenses, including attorney's fees incurred in enforcing this Agreement.
15, Notices. Any notice that either party may or is required to give the other shall be in writing, and shall be either personally delivered, sent by regular u.s. Mail or FedEx, or by email to the following address:
To City
Real Estate Services
City of Sacramento
9151 Street, 2nd Floor
Sacramento, CA 95814
Attn: Lindsey Ekins
To Grantor
St. Luke Lutheran Church of Sacramento
Chet Madison
7595 Center Parkway
Sacramento, CA 95823
[email protected]
16. Binding on Successors This Agreement shall be binding on and shall inure to the benefit of the City and Grantor, and their respective successors, assigns, and their past, present and future officers, employees and agents; provided that this Agreement may only be assigned with the written consent of both parties, and any attempt to assign this Agreement without such consent shall be void.
17, Counterparts. This Agreement may be executed in two (2) or more counterparts, each ofwhich shall be deemed an original but all ofwhich together shall constitute one and the same instrument, The parties agree that this Agreement may be executed with electronic signatures. 18, EntireAgreement. ThepartieshavehereinsetforththewholeoftheirAgreement.AII prior oral discussions, representations, and/or agreements, if any, are specifically superseded by this Agreement, which is intended by the parties to contain all oT the terms and conditions agreed to by them with regard to acquisition of the Property by City. 19, Authority. Eachindividual,executingthisAgreementonbehalfofanentityrepresents and warrants that he or she has been authorized to do so by the entity on whose behalf he or she executes this Agreement, and that said entity will thereby be obligated to perform the terms of this Agreement.
6 Executed as of the Effective Date stated above.
Grantor:
St. Luke Lutheran Church of Sacramento,
California, a corpAo7ation
Grantee:
CITY OF SACRAMENTO
a Municipal Corporation
By:
Ryan Moore, Assistant City Manager
For, Maraskeshia S. Smith City Manager
APPROVED AS TO FORM:
BY:
City Attorney
ATTEST:
BY:
City Clerk
7 Exhibit "A"
Grant Deed
8 RECORDING REQUESTED BY AND FOR THE BENEFIT OF
CITY OF SACRAMENTO
NO FEE DOCUMENT
Govt Code 27383
WHEN RECORDED MAIL DOCUMENT TO
City of Sacramento Attn: Real Estate Superintendent
915 I Street, 2
nd Floor
Sacramento CA 95814
MAIL TAX STATEMENTS TO:
City of Sacramento Attn: Finance Administration
915 I Street, 5
th Floor Sacramento Ca 95814
NO TRANSFER TAX DUE per R&T Code 11922
Grantee is a Government Agency
SPACE ABOVE THIS LINE FOR RECORDER'S USE
ACQ- 24-01-00 0102500859- PA 050- 0020-018 and 050-0020-019 ________________ RESS File No. Escrow No. Portion of APN City Agreement #
GRANT DEED
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
ST. LUKE LUTHERAN CHURCH OF SACRAMENTO, CALIFORNIA, a corporat ion (“Grantor”)
hereby grant(s) to
CITY OF SACRAMENTO, a municipal corporation (“ Gra ntee”)
The real property in the City of Sacramento, County of Sacramento, State of California, described as follows:
SEE ATTACHED LEGAL DESCRIPTION MARKED AS EXHIBIT ‘A’
AND DIAGRAMED IN THE CORRESPONDING PLAT MAP ATTACHED AS EXHIBIT ‘B’ .
St. Luke Lutheran Church of Sacramento,
Ca lifornia , a corporat ion
Dated: By:
Print Name:
Title: _________________________
Notary Acknowledgment Required for all signatures
EXHIBITA
LEGAL DESCRIPTION
A PORTION OF
DEED 4420 0.R. 474
7595 CENTER PARKWAY
ST. LUKE"S ENGLISH LUTHERAN CHURCH OF SACRAMENTO
PAGE 1 0F 2
ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE CITY OF SACRAMENTO, COUNTY OF SACRAMENTO, STATE OF CALIFORNIA DESCRIBED AS FOLLOWS:
ALL THAT PORTION OF SECTION 4 AND SECTION 9, TOWNSH1P7 NORTH, RANGE 5 EAST, M.D.B. & M., MORE PARTICULARLY DESCRIBED AS FOLLOWS.
BEGINNING AT A POINT OF INTERSECTION OF THE NORTHERLY LINE OF THE LAND GRANTED TO ST. LUKE'S ENGLISH LUTHERAN CHURCH OF SACRAMENTO, CALIFORNIA, ALSO KNOWN AS ST.
LUKE'S AMERICAN LUTHERAN CHURCH OF SACRAMENTO, A CORPORATION, FOUND IN THAT CERTAIN GRANT DEED RECORDED IN BOOK 4420 0F OFFICIAL RECORDS, PAGE 474 FILED WITH
THE OFFICE OF THE RECORDED OF SACRAMENTO COUNTY AND THE EASTERLY LINE OF CENTER PARKWAY (A CITY STREET), SAID POINT BEARS SOUTH 52o 50" 30" WEST 50.00 FEET TO THE MOST SOUTHWESTERLY CORNER OF THE OFFICIAL PLAT OF "SOUTHGATE PARK UNIT N0. 1" RECORDED IN BOOK 70 0F MAPS, MAP N0. 14 FILED WITH THE OFFICE OF THE RECORDER OF SACRAMENTO COUNTY; THENCE FROM SAID POINT OF BEGINNING ALONG SAID NORTHERLY LINE, NORTH 52o 50" 30" EAST, 557.81 FEET TO A POINT ON THE WESTERLY LINE OF THE OFFICIAL PLAT OF "PARKWAY EAST" RECORDED IN BOOK 110 0F MAPS, MAP N0. 7 FILED WITH THE OFFICE OF THE RECORDER OF SACRAMENTO COUNTY; THENCE ALONG SAID WESTERLY LINE SOUTH 02o 06" 30" EAST, 280.39 FEET TO A POINT ON SAID WESTERLY LINE; THENCE LEAVING SAID WESTERLY LINE INTO SAID LAND GRANTED TO SAID ST. LUKE'S ENGLISH LUTHERAN CHURCH OF SACRAMENTO, NORTH 80o 25" 09" WEST, 219.80 FEETTO A POINT;
THENCE PARALLEL WITH THE AFOREMENTIONED EASTERLY LINE OF CENTER PARKWAY (A CITY STREET), NORTH 37o 09" 30" WEST, 27.47 FEET TO A POINT MEASURED 42.00 FEET AT RIGHT ANGLES FROM THE AFOREMENTIONED NORTHERLY LINE OF SAID LAND GRANTED TO SAID ST.
LUKE'S ENGLISH LUTHERAN CHURCH OF SACRAMENTO: THENCE PARALLEL WITH AND 42.00
FEET MEASURED AT RIGHT ANGLES FROM SAID NORTHERLY LINE THE FOLLOWING COURSE AND BEARING, SOUTH 52o 50" 30" WEST, 246.15 FEET TO A POINT ON SAID EASTERLY LINE OF SAID CENTER PARKWAY ( A CITY STREET); THENCE ALONG SAID EASTERLY LINE, NORTH 37o 09" 30" WEST, 42.00 FEET TO THE POINT OF BEGINNING. CONT AINING 51,339.327 SQUARE FEET.
EXHIBITA
LEGAL DESCRIPTION
A PORTION OF
DEED 4420 0.R. 474
7595 CENTER PARKWAY
ST. LUKE'S ENGLISH LUTHERAN CHURCH OF SACRAMENTO
PAGE 2 0F 2
THE BASIS OF BEARING FOR THIS LEGAL DESCRIPTION IS IDENTICAL TO THAT OF THE WESTERLY BOUNDARY OF THE OFFICIAL PLAT OF "SOUTHGATE PARK UNIT N0. 1" RECORDED IN BOOK 70 OF MAPS, MAP N0. 14 FILED WITH THE OFFICE OF THE RECORDER OF SACRAMENTO COUNTY, BEING ALSO THE CENTERLINE OF CENTER PARKWAY (A CITY STREET). SAID BEARING BEING NORTH 37o 09' 30" WEST.
SEE EXHIBIT B, PLATTO ACCOMPANY DESCRIPTION, ATT ACHED HERETO AND MADE A PART HEREOF.
END OF LEGAL DESCRIPTION
THIS DESCRIPTION WAS PREPARED BY ME OR UNDER MY DIRECTION IN ACCORDANCE WITH SECTION 8761 0F THE PROFESSIONAL LAND SURVEYOR'S ACT. 'O,,,O
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EXHIBIT B
A PORTION OF
DEED 4420 0.R. 474
7595 CENTER PARKWAY
ST. LUKE'S ENGLISH LUTHERAN CHURCH OF
SACRAMENTO
SACRAMENTO, CALIFORNIA
SCALE:
1 " = 100'
DATE:
07/01 /2025
SHEET
1 0F 1
Exhibit "B"
Title exceptions that will not be removed
for Grant Deed:
Items 1-12
as shown in Fidelity National Title Insurance Company preliminary title report # 0102500859-PA
Dated May 29, 2025
9