FROM:
Planning Department
SUBJECT:
Title
Purchase and Sale Agreement - 8436 Sierra Avenue
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RECOMMENDATION:
Recommendation
1. Approve a Purchase & Sale Agreement for the sale of 8436 Sierra Avenue, APN # 01911311, located at the southwest corner of Sierra Avenue and Spring Street 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:
• Promote economic development by concentrating on job creation.
• Promote economic development by pursuing business attraction, retention, and expansion.
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.
The property at 8436 Sierra Avenue recently became available for acquisition in Downtown Fontana. This property includes a 8,100 square foot multi-tenant building on a 8,250 square foot lot.
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 the property (8436 Sierra Avenue) for the price of $1,544,600
• The City of Fontana and sellers Song K. Yun and Abbie L Bostrum - Yun will equally split any/all escrow and title fees 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 8436 Sierra Avenue is currently occupied and in use by multiple tenants. All leases will be assigned to City of Fontana upon close of escrow.
• Tenants will be required to vacate the building and property, including the timely removal of any furniture, equipment and/or supplies within 60 days of delivery of notice to vacate by city.
Approval of the Purchase Agreement and sale of 8436 Sierra Avenue 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 $1.55M - in Fund 601 - Capital Reinvestment. Appropriate paperwork will be submitted to the Budget Office with the First Quarter Budget Status Report.
MOTION:
Approve staff recommendation.