FROM:
Administrative Services
SUBJECT:
Title
Purchase & Sale Agreement - Downtown Fontana Properties
End
RECOMMENDATION:
Recommendation
1. Approve a Purchase & Sale Agreement for the sale of 16756 Arrow Blvd. and APN #019116208, two properties located on Arrow Blvd. in Downtown Fontana.
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:
• To promote economic development by concentrating on job creation.
• To promote economic development by pursuing business retention, expansion and attraction.
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, Merrill Ave to the South, Mango Ave to the East and Juniper Ave to the West. In an effort to facilitate the implementation of this revitalization, the City will be assisting with the acquisition and assemblage of various properties in Downtown Fontana.
Two properties recently became available for acquisition in Downtown Fontana.
The properties are 16756 Arrow Blvd. (Pina Furniture) and APN #019116208 (a vacant lot). The property located at 16756 Arrow Blvd. includes a 4,900 square foot building on a 9,800 square foot lot. APN #019116208 is a 6,500 square foot lot located on the North side of Arrow Blvd.
The City and the sellers brokers have reached agreement on a Purchase Agreement with the following proposed deal-points;
• The City of Fontana would acquire both properties (16756 Arrow Blvd. & APN #019116208) for the price of $1,150,000.
• The City of Fontana and sellers (Labra Investments, LLC) will equally split any/all escrow and title fee’s as appropriate.
• The City will have sixty days to perform any due-diligence on the subject property, including completion of an environmental assessment and title review.
• Following the due-diligence period the City will have a fifteen-day financing period to complete all wire-transfers and documents necessary for the close of escrow.
• The property and building located at 16756 Arrow Blvd. is currently occupied and in use by Pina Furniture. The City of Fontana and Pina Furniture will execute a lease-agreement for the continued use and operation of the building following the close of escrow.
• For a period of six months following the close of escrow, Pina Furniture will lease the building (with no required rent payment) from the City of Fontana. Pina Furniture will be required to pay for all utility costs and to provide insurance on the property and building.
• Following the six month lease period, Pina Furniture will be required to vacate the building and property, including the timely removal of any furniture, equipment and/or supplies.
Approval of the Purchase Agreement and sale of 16756 Arrow Blvd. and APN #019116208 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 are available for the sale of these properties, totaling approximately $1.2M - in Fund 601 - Capital Reinvestment. Appropriate paperwork will be submitted with the Mid-Year Budget Status Report.
MOTION:
Accept Staff Recommendation.