FROM:
Development Services
SUBJECT:
Title
Purchase & Sale Agreement - Downtown Fontana Property
End
RECOMMENDATION:
Recommendation
1. Approve a Purchase & Sale Agreement for the building and associated land located at 16736 Arrow Boulevard, more specifically described as APN 0191-162-13 and APN 0191-162-40 in the amount of $871,000
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 construction of high-quality multi-family housing which also serves to address the affordability needs of this community.
• Promote affordable housing by acquisition, substantial rehabilitation, and professional management of selected multi-family properties as a vehicle to reduce crime and code enforcement activity and to address the affordability needs of this community.
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 property recently became available for acquisition and staff has negotiated the terms of a favorable acquisition based on prior direction from the City Council.
The acquisition consists of parcels totally approximately 16,500 square feet with a building occupying approximately 1,600 square feet of the parcel.
The city and the seller have negotiated a Purchase Agreement with the following proposed deal-points:
• The City of Fontana would acquire the property for the price of $871,000.
• The City of Fontana will pay the cost of any/all broker, escrow, and title fees.
• The City will complete its due diligence on the subject property, including title review, within the next 30 days.
• If approved, the anticipating close of escrow date is October 10, 2024.
• Property will be delivered vacant.
Approval of the Purchase Agreement and acquisition of the subject property will complete the assemblage required for the potential development of a 7-acre multifamily community consisting of between 220 and 350 residential housing units further advancing the City’s vision and plans to revitalize the Downtown Community.
At its September 17, 2024 meeting, the Planning Commission adopted Resolution No. PC 2024-046 finding that the proposed acquisition is in conformance with the City’s General Plan, making California Environmental Quality Act (CEQA) findings pursuant to the State CEQA Guidelines Section 15061(b)(3) and directing staff to file a Notice of Exemption.
FISCAL IMPACT:
Monies are currently budgeted and available for the purchase of these properties (total cost of approximately $975,000, including escrow costs, related acquisition fees and expenses, and demolition of the building) - in the Special Projects account # 60230000.8310, Fund 602 - Capital Improvement.
MOTION:
Approve staff recommendation