FROM:
Development Services
SUBJECT:
Title
Purchase & Sale Agreement- Regional Homeless Navigation Center
End
RECOMMENDATION:
Recommendation
1. Approve a Purchase & Sale Agreement for the purchase of building and associated land located at 11109 Jasmine Street, more specifically described as APN # 0238-111-53 in the amount of $11,664,510.
2. Authorize the City Manager to execute any documents necessary or appropriate to effectuate said approvals and/or agreement.
End
COUNCIL GOALS:
• Provide a diverse range of housing types and levels of affordability while addressing homelessness in the community by promoting diverse range of housing projects and levels of affordability.
• Provide a diverse range of housing types and levels of affordability while addressing homelessness in the community by address Homelessness through proactive programs, including the efforts of the COAST and MET teams.
• Concentrate on Inter-governmental relations by pursuing financial participation from county, state and federal governments.
DISCUSSION:
The City of Fontana has identified Homelessness and Homeless prevention as a top priority. The building, if purchased, will serve as a Regional Homeless Navigation Center. The acquisition consists of a parcel approximately 35,347-square foot freestanding industrial building situated on approximately 1.65 acres within the Jasmine Industrial Park project.
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 $11,664,510.
• The City of Fontana and Seller, Jasmine Street, LLC, will equally split any/all escrow fees as appropriate.
• The City will have 90 days from the opening of escrow to complete its due diligence on the subject property to confirm the suitability and condition of the property for the city’s intended use.
• The City will have a ninety-day financing period to complete all wire-transfers and documents necessary for the close of escrow after approval of the feasibility review.
o The City is in the process of finalizing its due diligence on the agreed upon contingencies, including completing the appraisal of the property, Phase I environmental, and building inspection.
Approval of the Purchase Agreement and acquisition of the subject property is a crucial step in the City’s efforts to combat homelessness in the city.
FISCAL IMPACT:
The fiscal impact associated with the approval of this item is estimated to be $12,000,000 (including escrow costs, acquisition fees, and related expenses) and was included in the FY 24-25 2nd Quarter Budget Report in Org 60230000.8310.
MOTION:
Approve staff recommendation.