DATE: JANUARY 11, 2022
DEPARTMENT: OFFICE OF THE CITY MANAGER
FROM: ANDREW MYRICK, SR ECONOMIC DEVELOPMENT MGR
TITLE: SALE OF CITY-OWNED PROPERTY TO CITY OF GONZALES RECOMMENDED MOTION:
A motion to approve the attached Resolution approving a Purchase and Sale Agreement to sell 0.3168 acres of City-owned property to the City of Gonzales for $18,946.00.
RECOMMENDATION:
Staff recommends that the Council accept the recommended motion.
BACKGROUND:
The City is the owner of the real property identified as Monterey County Assessor’s Parcel Number (APN) 223-061-002-000 (the “Property”). The Property, which does not have a known address, consists of 0.3168 acres of vacant land located in the City of Gonzales. The attached Property Location Maps show the location of the Property in relation to the Region, the City of Gonzales, and the City of Gonzales’s Municipal Wastewater Treatment Facility. The Property was purchased by the City of Salinas in 1973 and until recently served as the Salinas Airport’s “Outer Marker,” whereby the site housed equipment to assist aircraft navigation. However, the growing use of satellite and other technologies for navigation has rendered the need for the Property obsolete, and all equipment has been removed from the site.
The Property is located adjacent to the City of Gonzales’ Municipal Wastewater Treatment Facility (the “Facility”). The City of Gonzales desires to obtain ownership of the Property so that it may be included in a proposed expansion of the Facility.
Based upon other transactions nearby, City staff has estimated the market value for the Property of $18,946.00. The City of Gonzales has agreed to pay this purchase price. In addition, the City of Gonzales has agreed to cover costs incurred by the City to update its Airport Layout Plan (this update has been completed), as well as pay all closing costs. The City would also abandon two easements located on and near the Property (for roadway, public utility, and aerial navigation purposes) which are no longer necessary for City purposes by filing Quitclaim Deeds in favor of the owners of the underlying properties.
City staff believes that the terms of the proposed transaction are reasonable and fair. The parcel is completely surrounded by property owned by the City of Gonzales and would be difficult to sell or lease to any other party, limiting the City’s options. At the same time, ownership of this parcel is critical to the City of Gonzales to enable it to design and operate its Facility in the most efficient manner possible. As required by the Federal Aviation Administration (FAA), proceeds from the sale will be deposited into the City’s Airport Enterprise Fund.
The City Council previously declared the property to be Exempt Surplus Land via Resolution No. 22109 (attached) on May 11, 2021. No further action under the Surplus Lands Act is necessary.
CEQA CONSIDERATION:
Categorical Exemptions. The City of Salinas has determined that the project is exempt from the California Environmental Quality Act (CEQA) Guidelines (Section 15312, Class 12) because the project proposes the sale of surplus government property and is not located in an area of statewide, regional, or areawide concern identified in CEQA Guidelines Section 15206(b)(4).
STRATEGIC PLAN INITIATIVE:
This item involves the sale of real property no longer needed by the City, which would support the Council’s Strategic Goal of Operational Efficiencies.
DEPARTMENTAL COORDINATION:
The Public Works Department’s Airport Division has assisted with this item.
FISCAL AND SUSTAINABILITY IMPACT:
The proposal would result in a positive financial benefit to the City’s Airport Enterprise Fund.
ATTACHMENTS:
Property Location Maps
Proposed RESOLUTION, including the following Exhibits:
Exhibit “A” – Purchase and Sale Agreement, including the following Exhibits:
Exhibit “A” – Property Legal Description
Exhibit “B” – Easement Legal Descriptions
Exhibit “C” – Grant Deed
Exhibit “D-1,” “D-2,” and “D-3” – Quitclaim Deeds
Resolution No. 22109
Property Location MapsProperty Location Maps
Property Location Maps
Property Location Maps
City of GonzalesCity of GonzalesWastewater Treatment FacilityWastewater Treatment FacilityRegionRegion City of Gonzales
City of Gonzales
Wastewater Treatment Facility
Wastewater Treatment Facility
Region
Region
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