Item Number: 12
City Council / Board of Directors
Written Communications
Meeting of: April 2, 2024
Submitted By:
Keith C. Metzler, City Manager
Subject:
Purchase Agreement By and Between the City of Victorville and Brentwood Mortgage 147, LLC
Recommendation:
That the Honorable City Council:
(1) Approve the Standard Offer, Agreement and Escrow Instructions for the purchase of real estate by and between the City of Victorville and Brentwood Mortgage 147, LLC, for the acquisition of Assessor Parcel Numbe rs (APNs) 3106-261-15, 3106-261-16, 3106- 261-17, and 3106-261-18;
(2) Adopt Resolution No. 24-021 Amending the Annual Budget for Fiscal Year 2023-2024 Approving an Additional Appropriation of the Mea sure P Fund for the Purchase of Real Property for a Police Station and Civic Plaza; and
(3) Authorize the City Manager to execute all transactional related documents to effectuate the acquisition.
Fiscal Impact:
This action will result in a fiscal impact of $2,575,000, requiring an additional appropriation of the Measure P (105) Fund to fund the acquisition of said APNs and pay for escrow related costs . Cash reserves are sufficient to support the requested additional appropriation. The budget revision is outlined below:
Account Code Amount Adjusted
1052001-55010-50023 Increase by $2,575,000
Strategic Plan Goal:
This item aligns with Goal B, Public Safety and Goal E, Invest in Infrastructure. Goal B, Public Safety, focuses on completing the site feasibility, design and financing for a new Police Station and Civic Plaza to support a thriving and growing community . Goal E, Invest in Infrastructure, focuses on creating a healthy and livable community by maintaining the City’s assets through investment in infrastructure and innovations.
Background:
Since 2001, the City has housed its Police headquarters at 14200 Amargosa Road, a 15,828 square-foot single-story facility. At the time, the facility supported 57 sworn officers who served a population of 67,854 residents. Today, the sworn personnel of the Police Department have nearly doubled to 106 members, providing services to a community of approximately 135,000.
As the existing Police headquarters is at capacity and cannot house additional personnel, limiting the level of public safety and services that can be provided or sustained, staff began exploring potential sites that could serve as a future Police Station. On April 5, 2022, the City Council approved the acquisition of APN 0396 -131-05 in the amount of $160,000. At the time, the said property and surrounding eight parcels, totaling 2.5 acres, met the needs for developing a new Police Station and Civic Plaza and long-term public service goals and objectives.
At the City Council meeting of March 21, 2023, the City Council approved a Consultant/Professional Services Provider Agreement with LPA, INC. (LPA) to develop a conceptual design for a new Police Station and Civic Plaza. LPA worked closely with City and Po lice Department staff on the design, ensuring all elements were identified and incorporated, which resulted in three options to select from. On October 24, 2023, the City Council and Planning Commission hosted a Special Joint Workshop to identify possible site locations for the future Police Station and Civic Plaza. During the workshop, Option A, Option B, and Option C of the presentation were discussed to determine which site was appropriate for the project. The City Council and Planning Commission agreed on Options A and C, provided that Option C would be acquired only if it was within the area North of Seneca Road, West of Civic Drive, East of Amargosa Road, and South of Roy Rogers Drive.
Subsequently, staff began an analysis of Options A and Option C to provide a comparison between the two. During Closed Session on February 20, 2024, staff presented the two sites with an analysis of each site. The City Council then authorized the City Manager to proceed with real property negotiations for APNs 3106 -261-15, 3106-261-16, 3106-261- 17 and 3106-261-18 ("Properties"), depicted on Attachment B. As such, on February 26, 2024, staff worked with Coldwell Banker Commercial to s ubmit an Offer to Purcha se (a non-binding Letter of Intent, Attachment C) the Properties owned by Brentwood Mortgage 147, LLC (the “Seller”).
Discussion:
The Properties owned by the Seller encompass four parcels totaling approximately +9.18 acres and are located West of Civic Drive and North of Seneca Road. The Properties provide ample acreage for constructing a new Police Station with a proposed building size of approximately 43,000 square feet and a Civic Plaza of approximately three acres.
The current Police Station offers 114 parking stalls, and if the Properties are approved and the Police Station is constructed, it will provide more than 280 parking stalls for the Police Department. This site enables the City to build a Police Station and Civic Plaza, but more importantly, accommodates for future expansion.
The Properties were listed for sale with an asking price of $3,199,000; however, the City offered $2,500,000. The City successfully negotiated the price, with the Seller accepting the offer of $2,500,000 and included the following terms: a contingency period of 15 days starting after escrow has opened and the City has received all relevant title reports and studies for the City’s review , and a $75,000 escrow deposit due upon establishing an escrow account, with all, but $100 refundable to the City should th e City not acquire the Properties. The Offer to Purchase also requires a 45-day escrow and the payment of the brokers commission in the amount equal to 3% of the purchase price, payable by the Seller. Lastly, the Offer to Purchase requires the execution an d submission of an AIR Standard Agreement form (standard purchase and sale agreement) and relevant escrow documents, as shown in Attachment D, to solidify the transaction upon approval by the City Council. Furthermore, staff ordered a Phase I Environmental Site Assessment and received the final report indicating the Properties have no environmental conditions.
To proceed with the acquisition of the Properties, staff seeks the approval of the Honorable City Council to approve the Standard Offer, Agreement and Escrow Instructions for the purchase of real estate by and between the City of Victorville and Brentwood Mortgage 147, LLC, for the acquisition of APNs 3106 -261-15, 3106-261-16, 3106-261-17, and 3106 -261-18, in the amount of $2,575,000 to fund the acquisition of said APNs and pay for escrow related costs; adopt Resolution No. 24-021, Amending the Annual Budget for Fiscal Year 2023 -2024, Approving an Additional Appropriation of the Measure P Fund for the Purchase of Real Property for a Police Station and Civic Plaza, and authorize the City Manager to execute all relevant escrow documents.
Staff remains available for any questions you may have.
Attachments: A. Resolution No. 24-021
B. Property Map
C. Offer to Purchase
D. Standard Offer, Agreement and Escrow Instructions for Purchase of Real Estate