FROM:
Development Services
SUBJECT:
Title
Purchase and Sale Agreement - Downtown Fontana Property
End
RECOMMENDATION:
Recommendation
1. Approve a Purchase & Sale Agreement for the purchase of buildings and associated land located at 8572 Sierra Avenue and 8600 Sierra Avenue, more specifically described as APNs 0191-274-33 and 0191-284-13.
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 is undertaking 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, replanning, and redevelopment of several key properties within the area. To facilitate the implementation of this revitalization, the City has acquired various properties in Downtown.
The subject properties recently became available for acquisition and staff has negotiated the terms of a favorable acquisition based on prior direction from the City Council.
The parcel at 8572 Sierra Avenue is approximately 7,200 square feet with a building occupying approximately 5,700 square feet. The parcel at 8600 Sierra Avenue consists is approximately 8,300 square feet with a building occupying approximately 3,900 square feet. The 8600 Sierra Avenue property is being acquired subject to an existing lease. The tenant is expected to remain in place for at least the next three years. The property at 8572 Sierra is vacant, subject to a brief hold over of a small office for file storage by the current owner, who will completely vacate the building on or before July 1, 2024
The City and the seller have negotiated a Purchase Agreement with the following proposed deal-points:
• The City of Fontana would acquire the properties for the price of $2,700,000.
• The City of Fontana and seller will equally split any/all escrow and title fees as appropriate.
• The City has completed its due diligence on the subject property, including title review.
• If approved, the anticipating close of escrow date is March 1, 2024.
Approval of the Purchase Agreement and acquisition of the subject property will assist with the assemblage of various properties located in Downtown Fontana. That assemblage will facilitate the City’s vision and plans to dramatically revitalize the Downtown Community.
FISCAL IMPACT:
Monies for the purchase of these properties (total cost of approximately $2,750,000, including escrow costs and appropriate fees) are being requested in the Mid-Year Budget report out of the Capital Improvement Fund #602.
MOTION:
Approve staff recommendation.