FROM:
Development Services
SUBJECT:
Title
Purchase and Sale Agreement - Downtown Fontana Property
End
RECOMMENDATION:
Recommendation
1. Approve a Purchase and Sale Agreement for the purchase of property located at 16710 and 16726 Spring Street, more specifically described as APNs #0191-161-13 and 0191-161-18.
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.
• Provide a diverse range of housing types and levels of affordability while addressing homelessness in the community by construction of affordable high-quality multi-family housing.
• Provide a diverse range of housing types and levels of affordability while addressing homelessness in the community by acquisition, substantial rehabilitation, and professional management of selected multi-family properties to provide more affordable units and reduce crime and code enforcement activity.
DISCUSSION:
The City of Fontana will be 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, demolition, replanning, and redevelopment of several key properties within the area. To facilitate the implementation of this revitalization, the City will be acquiring various properties in Downtown Fontana. Notwithstanding the fact that any structures that exist on parcels being acquired may be demolished and therefore have no future value, parcels are being acquired at market rate based on values attributable to their current use.
The subject properties are located on the north side of Spring Street, at Juniper Avenue. The parcels combined total approximately 21,000 square feet and include two buildings totaling approximately 6,000 square feet.
The city and the seller’s brokers have reached agreement on a Purchase Agreement with the following proposed deal-points:
• The City of Fontana would acquire the property for the price of $1,500,000 with an estimated total cost of purchase (including escrow, title, brokerage fees, and demolition) of $1,650,000.00. This price is consistent with prior acquisitions; the properties would be purchased as-is and closing would occur on or before June 1, 2024.
• The City has completed its due diligence on the subject property, including title review.
• The city will have a fifteen-day financing period to complete all wire-transfers and documents necessary for the close of escrow.
Approval of the Purchase Agreement and acquisition of the subject property will assist with the assemblage of various properties located in Downtown Fontana; specifically, this property is envisioned as part of a high-density multifamily development. The overall assemblage and development will facilitate the City’s vision and plans to dramatically revitalize the Downtown Community.
FISCAL IMPACT:
The fiscal impact associated with approval of this item is $1,650,00.00, including escrow costs and appropriate fees. Funding is included in the current 2023-24 budget in fund 602 - Capital Improvement.
MOTION:
Approve staff recommendation.
ATTACHMENTS:
Purchase and Sale Agreement