RESOLUTION NO. (N.C.S.)
A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE A PURCHASE AND SALE AGREEMENT FOR THE ACQUISITION OF 443 WEST MARKET STREET WHEREAS, in recognition of the critical need for more affordable housing in Salinas, the City Council approved Resolution 22250 appropriating $7 million from the American Rescue Plan Act (“ARPA”) to the Affordable Housing Production Fund to be used for predevelopment, acquisition, construction, plans, and studies; and WHEREAS, staff have been working diligently to develop ARPA projects that would advance the City’s affordable housing goals and identified the potential acquisition of 443 West Market Street (Assessor’s Parcel Number [APN] 002-061-008-000 (“the Property”); and WHEREAS, the Property is a single level motel with approximately 7,981 square feet of gross building area on a 43,717 square foot lot built in 1936 comprised of 25 studio/Jr. one-bedroom units and one two-bedroom manager apartment unit; and WHEREAS, on August 22, 2023, during closed session staff received Council direction on the terms of acquisition of the Property and subsequently reached out to the owners with a purchase price of three million six hundred and forty thousand dollars ($3,640,000), contingent on the appraised value; and WHEREAS, the negotiated price is three hundred and ten thousand dollars ($310,000) under the original asking price; and WHEREAS, escrow would close by January 24, 2024, with the seller having an option to extend up to three (3) 45-day extensions to assist with his 1031exchange; and WHEREAS, the purchase of the Property will support the City of Salinas Strategic Plan 2022-2025 goal of Housing/Affordable Housing by providing much needed affordable housing to low-income residents.
NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council hereby authorizes the Mayor to enter into a Purchase and Sale Agreement for the acquisition of 443 West Market Street and authorizes the expenditure of ARPA funds for this purchase.
PASSED AND APPROVED this 24th day of October 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
_______________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
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