FROM:
Development Services
SUBJECT:
Title
Option and Purchase and Sale Agreement for City owned property
End
RECOMMENDATION:
Recommendation
1. Approve the Option and Purchase and Sale Agreement with SA Golden Investments, LLC for city owned land located at the northwest corner of Arrow Boulevard and Sierra Avenue consisting of approximately 21,500 square feet, more specifically described as APN’s 0191-163-26, 0191-163-17, and 0191-163-16.
2. Authorize the City Manager to execute any documents necessary or appropriate to effectuate said approvals and/or agreement.
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COUNCIL GOALS:
• Promote economic development by concentrating on job creation.
• Promote economic development by pursuing business attraction, retention, and expansion.
DISCUSSION:
The City of Fontana has undertaken an expansive and comprehensive revitalization of Downtown Fontana. The specific geographic area to be targeted includes Upland Ave to the North, Orange Avenue to the South, Mango Ave to the East and Juniper Ave to the West. A primary component of this revitalization effort will require the acquisition, demolition, replanning, and redevelopment of several key properties within the area.
The property subject to this agreement was acquired as part of a larger purchase which included the 12,500-sf building formerly occupied by Bank of America. The subject parcels were the parking lot for the former bank. The bank building is not part of this proposed transaction.
The property was deemed surplus in 2023 and no qualified affordable housing providers presented a proposal during the state mandated notice period. Subsequently, staff was approached by representatives of SA Golden Investments, who seek to acquire the property for development. No project is included in this recommended action.
General Terms of Purchase:
• Option term expires on January 31, 2025. Buyer has the option to acquire one, six (6) month extension period.
• The Purchase Price shall be $650,000, which was determined by a 3rd party appraisal commissioned by the City of Fontana
• Buyer shall gain approval of a development project for the property prior to exercising the option to purchase.
Approval of the Option and Purchase Agreement and a successful close of escrow on the subject property will play a pivotal role in the revitalization of the downtown area.
FISCAL IMPACT:
Upon receipt of closing proceeds, net revenue will be deposited into Fund 601 - Capital Reinvestment.
MOTION:
Approve staff recommendation.