FROM:
Development Services
SUBJECT:
Title
First Amendment to Option and Purchase and Sale Agreement for City owned property
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RECOMMENDATION:
Recommendation
1. Approve the First Amendment to the Option and Purchase and Sale Agreement with SA Golden Investments, LLC for city owned land located at the northwest corner of Arrow Boulevard and Sierra Avenue consisting of approximately 21,500 square feet, more specifically described as APN’s 0191-163-26, 0191-163-17, and 0191-163-16.
2. Authorize the City Manager to enter into any documents necessary or appropriate to effectuate said approvals and/or agreement, including any related financing or subordination documents required to effectuate the close of escrow and development of the property.
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COUNCIL GOALS:
• Promote economic development by pursuing business attraction, retention, and expansion.
• Practice sound fiscal management by living within our means while investing in the future.
• 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.
DISCUSSION:
The City of Fontana has undertaken an expansive and comprehensive revitalization of Downtown Fontana. The City of Fontana owns three parcels (Assessor’s Parcel Numbers 0191-163-16, 0191-163-17, and 0191-163-26) on the northwest corner of Arrow Boulevard and Sierra Avenue encompassing approximately 21,600 square feet.
The City entered into an Option and Purchase and Sale Agreement and Joint Escrow Instructions with SA Golden Investments, Inc., dated February 22, 2024. The Buyer and Seller request amendment to the following conditions:
• Parking Structure: An adjacent parking structure containing not less than 500 spaces, with not less than 50 (gated) dedicated for the exclusive use of the Property, shall have commenced construction prior to the Closing Date.
• Buyer shall have received final approval of all necessary land-use approvals, authorizations and entitlements between Buyer and the City to develop the Option Property.
• Buyer shall submit to Seller all fully executed construction contracts and evidence of construction financing commitment no later than fifteen (15) days prior to the scheduled Closing Date.
• Buyer shall cause the closing of all construction financing for the development of the Option Property to occur concurrently with the Closing Date.
• Development of the Property shall be completed no later than eighteen (18) months following the Closing Date.
Approval of the first amendment on the subject property will play a pivotal role in the revitalization of the downtown area.
FISCAL IMPACT:
Purchase agreement reflects a purchase price of $675,000. Actual revenue will not be realized until the building is occupied, most likely 36 months from close of escrow. Upon receipt of closing proceeds, net revenue will be deposited into Fund 601 - Capital Reinvestment.
MOTION:
Approve staff recommendation.