Council Agenda Report s14

COUNCIL AGENDA REPORT City of Anaheim DEPARTMENT OF PUBLIC WORKS

DATE: APRIL 1, 2014 FROM: DEPARTMENT OF PUBLIC WORKS SUBJECT: PURCHASE AND SALE AGREEMENT BETWEEN THE CITY OF ANAHEIM, GATEWAY APARTMENTS II, LLC, AND SANGSTER FAMILY LIMITED PARTNERSHIP FOR SANGSTER FAMILY LIMITED PARTNERSHIP TO ACQUIRE A PORTION OF CITY- OWNED LAND ADJACENT TO 2020 EAST ORANGEWOOD AVENUE AND 2112 SOUTH STATE COLLEGE BOULEVARD (ABA2013-00262)

ATTACHMENT (Y/N): YES ITEM # 07

RECOMMENDATION:

That the City Council, by Resolution:

1. Find that it is in the best interests of the City to authorize the sale of a portion of City-owned land located adjacent to 2020 East Orangewood Avenue and 2112 South State College Boulevard (“Property”), and convey said Property to the Sangster Family Limited Partnership for the purchase price of $75,000;

2. Approve and authorize the Mayor to execute the Purchase and Sale Agreement (“Agreement”) by and among the City of Anaheim (“City”), Gateway Apartments II, LLC (“Gateway”), and Sangster Family Limited Partnership (“Sangster”) and the grant deed (“Grant Deed”) in the form attached hereto;

3. Authorize the City Clerk to take any actions to cause the Grant Deed to be recorded in the Office of the Orange County Recorder’s Office, pursuant to the Agreement; and

4. Authorize the Director of Public Works or her designee to take such actions, including the execution of escrow documents, as required to implement and administer the Agreement.

DISCUSSION:

Gateway intends to develop a residential apartment project comprised of approximately 395 units at 2020 East Orangewood Avenue. The Gateway property is presently encumbered by an access easement in favor of Sangster, which owns the adjacent property at 2112 South State College Boulevard. In order to extinguish this access easement and proceed with its development, Gateway intends to purchase the Property, on behalf of Sangster, for the mutual benefit of Gateway, Sangster, and the City.

200 S. Anaheim Blvd. Suite #276 In September of 1991, the City acquired land for the widening of the State College Anaheim, CA 92805Boulevard/Orangewood Avenue intersection. A portion of the land was not utilized when the Tel: (714) 765-5176 Fax: (714) 765-5161 www.anaheim.net intersection was widened and, per the Platinum Triangle Implementation Plan, a 25-foot by 100-foot strip of this land fronting Orangewood Avenue is not required for future street right-of-way. City staff has determined that owning a fee interest in and to the Property is not required for present or prospective public use, and is therefore surplus to the needs of the City.

Gateway proposes to purchase the Property on behalf of Sangster to accommodate their development plans. The City will reserve an easement over 2 ½ feet of the 25-foot-wide strip of land for public sidewalk purposes, in accordance with the Platinum Triangle Implementation Plan. The Agreement al so requires Sangster to record a Lot Line Adjustment to merge the Property with its existing parcel of land at 2112 South State College Boulevard, and to maintain the Property in accordance with the Ana heim Municipal Code.

The Property is Exempt Surplus Land, as defined by California Government Code, section 54221, and is, therefore, exempt from the requirement for the City to provide an offer to sell to governmental agencies, non-profit organizations, affordable housing sponsors, park, recreational, enterprise zone, or school purposes.

Section 1222 of the Anaheim City Charter authorizes the City to sell City property without advertising for bids when the City Council finds such a sale is in the City’s best interests. Due to its size and configuration, the Property cannot be developed as a separate parcel. Therefore, in accordance with Council Policy 5.4, and at the request of Gateway, the Real Property Section has obtained an appraisal and negotiated to sell the Property at market value to the adjoining property owner, Sangster. For the reasons stated herein, the City staff considers it to be in the best interests of the City to sell the property pursuant to the terms of the Agreement.

VALUE:

The proposed purchase price of $75,000 is within the market value range as estimated by the City’s duly authorized real estate appraiser.

IMPACT ON BUDGET:

The Department of Public Works anticipated the sale of land as part of its FY 2013/14 General Fund budget.

Respectfully submitted,

Natalie Meeks Director of Public Works

Attachment: 1. Resolution 2. Agreement 3. Grant Deed

200 S. Anaheim Blvd. Suite #276 Anaheim, CA 92805 Tel: (714) 765-5176 Fax: (714) 765-5161 www.anaheim.net