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HomeMy WebLinkAbout11 PURCHASE PROPERTY 04-21-97NO. 11 4-21-97 DATE: APRIL 21, 1997 Inter-Com TO: FROM: SUBJECT: WILLIAM A. HUSTON, CITY MANAGER OFFICE OF THE CITY CLERK PURC~tASE OF PROPERTY ON 1.4 ACRE EAST TUSTIN PARCEL FOR PARK PURPOSES The Purchase and Sale Agreement between the City and The Irvine Company relating to the attached staff report will be delivered to the City Council under separate cover. Valerie Crabill Chief Deputy City Clerk 2: MEMOSPCV DATE: April 21, 1997 --, o I n t e r- C o m TO: FROM' SUBJECT: WILLIAM A. HUSTON, CITY MANAGER CHRISTINE SHINGLETON, ASSISTANT CITY MANAGER/~ PURCHASE OF PROPERTY ON 1.4 ACRE EAST TUSTIN PARCEL FOR PARK PURPOSES SUMMARY: The proposed acti°n would aUthOrize th'e C~tY'S acqUisition of a. 1.4 acre~ Irvine COmpanY.OWned 'site~ (Parcels 4, F and H of TentatiVe Map 15055) for park purposes. RECOMMENDATION It is recommended that the Tustin City Council: (1) Authorize a $175,000 drawdown on Countywide Funding Authority bond sale proceeds secured for the City of Tustin and apPropriate the $175,000 into The Capital Projects fund; and, (2) Approve and authorize the City Manager to execute the Purchase and Sale Agreement between the Irvine Company and the City of Tustin subject to it's approval by the City Attorney's office. FISCAL IMPACT The City of Tustin purchase price for the property will be $725,000. Funds have been secured for acquisition of the 1.4 acre site park and construction of the project through The Park Development Fund and The Countywide Funding Authority bond sale. The City Council, however, will need to appropriate $175,000 into the C.I.P. Fund for the acquisition 'and authorize a drawdown on bond sale proceeds. BACKGROUND/DISCUSSION In December 1995, the City Council adopted Ordinance 1148, "The Second Amendment to The East Tustin Development Agreement", and Resolution 96-51 approving Tentative Tract Map No. 15055. In both documents, The Irvine Company agreed to sell to the City a 1.4 acre site (Lot 4, F and H) adjacent to a dedicated 3.6 acre neighborhood park for park purposes. The subject property is located at the north side of Heritage Way approximately 269 feet east of Tustin Ranch Road. As required by California law, and terms of the Second Amendment to The East Tustin Development Agreement, an appraisal was completed on the property in July 1996 by Schmitz, Riach & Donahue. Based on the appraiser's inspection of the property and analysis of matters pertaining to value; the appraisal resulted in the conclusion that the market value of the property was $725,000. A copy of the full appraisal report is on file in the City Manager's office. Terms and conditions of the proposed purchase agreement are consistent with the appraisal report. The following is a brief summary of terms and conditions of the purchase: The purchase price will be $725,000 and the purchase will be a cash purchase. · Buyer has right to approve condition of property and title. Except for certain seller warranties, the City is acquiring the property in an "as is, where is condition". While seller has made certain warranties of the'property, the Buyer does have the option to reject the environmental condition of the site. However, any warranties that Buyer discovers that we do not object to prior to close of escrow, shall not survive tender of the deed. The seller shall pay all escrow fees, transfer taxes and the cost of a CCTA Standard policy of Title Insurance. Seller is also responsible for paying any assessments, special taxes or other payments from current assessment districts impacting the subject property. The proposed Agreement reflects almost nine months of negotiations. The City Attorney has prepared and approved the Agreement as presented to the City Council. In the event there are any minor modifications needed prior to escrow opening, the City Attorney has requested the authority to negotiate and approve these changes. NEGATIVE DECLARATION Pursuant to the California Environmental Quality Act, an Addendum #5,to EIR 85-2 was prepared on the Second Amendment to the East Tustin Development Agreement which was certified by the City Council. This Negative Declaration took into consideration the proposed acquisition and development of the 1.4 acre site for park purposes. No further environmental documentation for the acquisition is needed.