Item 17 - Public Hearing - Purchase and Sale Agreement for 1901 W. Walnut Street

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EXHIBIT 3 THRIVE Santa Ana, Inc. Community Land Trust 1907 West Walnut Street, Unit 100 Santa Ana, CA 92703 1 thrivesantaana.ora •` December 3, 2025 VIA ELECTRONIC MAIL City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 Attn: Mike Garcia Economic Development Agency Re: 1901 W Walnut Street Dear City of Santa Ana, Staff and Council, Thank you for providing the appraisal of the property. Per the City's letter and appraisal (attached for reference), the appraised value of the property is $1,030,000. The state grant that THRIVE will be using provides $852,000 for the acquisition of this property. Pursuant to California Government Code Section 53038, THRIVE is requesting an economic development subsidy of $178,000, equivalent to the difference between the appraised value of the property and the grant amount. In other words, THRIVE would acquire the property from the City for $852,000, which is below market value. We believe this subsidy would result in a tremendously positive fiscal impact for the City. The City would generate $852,000' in unrestricted revenue directly to the General Fund, whereas under the current ground lease the City would only generate $1,152 over the next 96 years. Furthermore, the proposed purchase would support the City's commitment to community land trust strategies in Santa Ana. When the original Disposition and Development Agreement was approved, the City supported an Option to Purchase, such that THRIVE could fully acquire the site and grow the community land trust. This, in turn, builds capacity for affordable and community -led economic development in the future. La Colmena has already proven to revitalize a vacant, City -owned property into a vibrant community hub that improves the safety and quality of life of the surrounding neighborhood. The project has already generated at least 3 full-time jobs, 5 part-time jobs, and more than 30 temporary jobs throughout the duration of construction. THRIVE anticipates at least 10 part time jobs and many local contracts will be created as a result of the project over the next 5 years. ' Minus cost of appraisal, and any closing costs.