701 Spruce Ave
Parcel Acquisition
City Council
10/23/24
Government Code Section 54957.5
SB 343
Item Agenda: 10/23/2024 REG CC
Item 12
Overview
1. Background
• Existing trailhead and trail history
• Disagreement over access
2. Proposal for parcel acquisition
• Seller has offered to sell parcel to City
• Parcel map redrawn to deed trailhead and upper
trail to City
3. Evaluation and Offer
• Appraised value v.s. value for access preservation
• Draft Purchase and Sale Agreement and next steps
2 3
701 Spruce Avenue
Background
• Current owner since 2018;
Previous owner since 1950’s
• Erroneous assumption that
trailhead / trail on City property
• Disagreement over public
access between 701 Spruce Ave
current owner and City
4 701 Spruce Ave
SSF Property – 704 Spruce Ave
Existing Trail
Acquisition Proposal
• Current owner offered appraised
value of $820,000 for large
parcel capturing trail
• City countered with reduced
parcel size to capture JUST the
trailhead and upper trail at
reduced price
• Tentative agreement at $600,000
to acquire trail and portion of
land from 701 Spruce Ave
• Funds from Parks and Rec
Acquisition Impact Fee 5
701 Spruce Ave Property after LLA
Proposed Acquisition to 704 Spruce Ave
Upper trail / trailhead relocated to City Property
Evaluation and Offer
City Appraisal - $250K
• May 2023 appraisal by AR/WS
• Could be developed with up to 5
units but topo limits options
• Comps values at $90k-$275k
• Valued at $250,000
Seller Appraisal - $820K
• City has legal right to lower trail
• Upper trail access could be closed
to public with court action
• What is value of acquisition parcel
and preservation of trailhead and
upper trail?
• City offered $600,000 as last and
best offer to preserve access
6 Draft
Purchase
and Sale
Agreement
1. SSF to pay $600K at close of escrow
• Trail remains as-is and City parcel at 704
Spruce Avenue incorporates upper trail and
trailhead from 701 Spruce Avenue
2. SSF to complete Phase I ESA
• Environmental testing during escrow to
ensure no major contamination
3. Seller completes parcel map and lot
line adjustment
• Escrow closes 30 days after parcel map
completed or
• 180 days from execution of PSA
7 Potential Council Action
Tonight
1. Approve resolution
authorizing Purchase and
Sale Agreement and City
Manager execution; or
2. Provide further direction to
staff for next steps.
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