FROM:
Development Services
SUBJECT:
Title
Purchase and Sale Agreement- 15166 Foothill Blvd
End
RECOMMENDATION:
Recommendation
1. Approve a Purchase & Sale Agreement for the purchase of the associated land located at 15166 Foothill Boulevard, Fontana, CA 92335 specifically described as APN 1110-161-08 in the amount of $3,200,000 plus escrow costs and related acquisition fees.
2. Authorize the purchase of that certain Real Property specifically described as APN 1110-161-08 comprised of approximately 2.30 acres (“Property”) from Aldea Foothill Two, LLC.
3. Authorize the City Manager to enter into the Purchase and Sale Agreement and any other documents necessary or appropriate to facilitate said purchase on behalf of the City of Fontana.
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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.
• Concentrate on Inter-governmental relations by pursuing financial participation from county, state, and federal governments.
DISCUSSION:
The City of Fontana has been actively addressing the growing demand for affordable and workforce housing. In recent years, we have observed a significant increase in housing needs driven by population growth, economic development, and changes in housing affordability. The Property, if purchased, is being acquired for the purpose of developing vacant land into a multi-family apartment community. The acquisition consists of one parcel with a gross area of approximately 2.30 acres
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 $3,200,000.
• Purchase Price will be paid in two installments, with a release of 50% of the purchase price upon approval of the feasibility period and the remaining 50% due upon completion of any required entitlement processing.
• The City of Fontana and Seller, Aldea Foothill Two, LLC, will equally split any/all escrow fees as appropriate.
• The contract allows for a period of up to 60 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. Staff anticipates completion of feasibility analysis by the end of April, with the intention of releasing the 50% deposit to the Seller in early May.
• Close of Escrow, including payment of the remaining 50% of the Purchase Price, is anticipated to occur within 18 months.
Approval of the Purchase Agreement and acquisition of the subject property represents a strategic opportunity for the City to secure land needed to implement the City’s housing goals and further the community’s long-term affordable housing strategy.
FISCAL IMPACT:
The fiscal impact associated with the approval of this item is estimated to be $3,300,000 (including escrow costs, acquisition fees, and related expenses). The necessary budget is included in the 2025-2026 budget in the Capital Improvements Fund #602 in 60230000-8310.
MOTION:
Approve staff recommendation.