City Council and Concurrent Authorities
May 14, 2024

AUTHORIZE THE ACQUISITION OF REAL PROPERTY LOCATED AT 303 NORTH EL DORADO STREET AND ESTABLISH A REDEVELOPMENT FUNDStockton City Council Agenda Item 15.1May 14, 2024

A City Department may initiate the acquisition of real property according toAdministrative Directive HRD-01, Acquisition of Real Property, by submitting a writtenrequest to the City Manager.Economic Development Department (EDD) staff requested approval to start theacquisition process for 303 North El Dorado, Stockton, CA 95202.The proximity of this parcel to the City Hall, Permit Center, Al Lee’s Garage, and theAnnex is a critical acquisition in redeveloping the entire block.Currently, Wells Fargo is looking to sell the parcel.An appraisal was completed by City staff and negotiations commenced.

Background
AlignmentDecember 2018Adopted Envision Stockton 2040 General Plan,adopted in December 2018, relies on strategic infilldevelopmentJanuary 25, 2022City Council adopted the Economic DevelopmentStrategic Action Plan with a focus on investmentand revitalization of downtown Stockton.February 07, 2023The City was also able to de-obligate $1.94 millionfrom the Open Windows project, which will now beused for a critical step in the development ofdowntown: land assembly. motion 2023-02-07-1210.The Economic Development Department has been positioning, and has been successful, in capturing grant funds forenvironmental clean-up that leads to a better chance of setting a precedent for future success in regard to redevelopmentprojects.

Final Purchase and Sale Agreement landed at $425,000The proposed resolution would establish a new unrestrictedsub-fund within the General Fund.The purpose of this sub-fund would be to establish a trackingmechanism to enable fund balance to rollover, and be addedto when appropriate, for the purposes of facilitating propertyacquisition and economic development activities, with a focuson the downtown area as funds become available.When established, approximately $1.94 million will betransferred from EDD’s General Fund.Earnest funds of approximately $60K will need to be wiredwithin 30 days of the Acceptance Date, to meet the conditionsof the purchase and sale agreement.

Financial Summary

1. Authorizing the acquisition of real property located at 303 North El Dorado Street,Stockton California, APN 139-080-03 (property) from Wells Fargo Bank (seller) in theamount of up to $425,000;2. Establishing a Redevelopment Unrestricted Sub-Fund within the General Fund; as amechanism for use in the City’s redevelopment efforts including acquisition, blightabatement, demolition, and other actions to support the City’s development;3. Authorize a budget amendment in the amount of $1.94 million from the EconomicDevelopment Department’s General Fund to the Redevelopment Fund;4. Authorizing the appropriation of Downtown Infill Infrastructure ReimbursementProgram funds from Economic Development Budget to the Redevelopment fund to beused for property acquisition, demolition, and environmental clearance to include theacquisition and related costs of 303 North El Dorado Street;5. Authorizing the filing Notice of Exemption No.19-24 under the CaliforniaEnvironmental Quality Act (CEQA) for the acquisition of real property located at 303North El Dorado Street, Stockton California, APN 139-080-03;6. Authorizing the City Manager to execute a purchase and sale agreement substantiallysimilar in form to the exhibits attached to the resolution, any needed leaseagreements associated with this transaction, as well as any due diligence costsassociated with the purchase of the property and take actions necessary andappropriate to carry out the purpose and intent of this resolution.It is recommended that the City Council adopt a resolution: