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HomeMy WebLinkAbout25H - 110 W. FIRST STREETREQUEST FOR U NCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 2, 2004 TITLE: PURCHASE AND SALE AGREEMENT WITH W/%3-~UT STREET S .A. , U · S. A. , LLC FOR CERTAIN PROPERTY LOCATED AT 110 WEST FIRST STREET CITY MANAGER CLERK OF COUNCIL USE ONLY: APPROVED [] As Recommended [] As Amended [] Ordinance on 1st Reading [] Ordieance on 2nd Reading [] implementing Resolution [] Set Public Hearing For CONTINUED TO FILE NUMBER RECOMMENDED ACTION Direct the City Attorney to prepare, and authorize the City Manager and ~lerk of the Council to execute, a Purchase and Sale Agreement with Walnut Street S.A., U.S.A., LLC for certain real property located at 110 West First Street (APN 398-278-03), for the consideration of $1.00 plus specified improvements to the subject and adjoining properties. DISCUSSION The block bounded by First, Main, Sycamore and Walnut Streets is a major gateway to the City's Downtown. Walnut Street S.A., U.S.A., LLC (Caribou Industries) owns a majority of the block, and is in escrow to purchase two additional lots located at 114-120 West First Street. The only remaining lot located at 110 West First Street is owned by the City of Santa Aha (Exhibit 1). The City-owned property, which has been vacant for several years, is approximately 6,250 square feet in size. In November 2003, the City entered into a Right of Entry and License Agreement with Walnut Street S.A. U.S.A., LLC for temporary use of the subject lot. Meanwhile, Walnut Street has recently obtained approvals to develop its properties with a mixed-use development including a restaurant and residential units. Specifically, the proposal includes the rehabilitation of the ~United Automotive" building at the southwest corner of First and Main Streets for use as a restaurant, as well as the 'ehabilitation of the nine existing residential units on the second loot. Along with Walnut Street's plans, the City's Planning Division also processed a zone change and General Plan amendment for the entire block to encourage future development of residential lofts. Page 89 25'H . Purchase and Sale Agreement with Walnut Street S. A., U. S. A., LLC for Certain Property Located at ll0 West First Street February 2, 2004 Page 2 Inclusion of the City-owned property would complete the assemblage of the block, thereby assisting in achieving the City's goal of cohesive and complementary development at the First and Main intersection. It is, therefore, recommended that the City sell its interest in the subject property to Walnut Street, S.A., U.S.A., LLC, the adjacent landowner, in accordance with Santa Aha Municipal Code Section 2-706.1 which states that the City may sell property without auction if its value is only to the adjacent property owner. In consideration for the property, Walnut Street, S.A., U.S.A, LLC would purchase the property ~as is" for $1.00 and improve the lot consistent with the requirements of the recently approved Specific Development District and Conditional Use Permit. Additionally, Walnut Street will remove the smaller billboard on the "United Automotive" building situated at 100 West Main Street, and if the City does not approve converting the larger billboard into a rooftop sign (via a sign variance), will also remove that billboard. The purchaser will indemnify, defend and hold harmless the City against any claim by the billboard company. All closing costs will be paid by Walnut Street. ENVIRONMENTAL IMPACT The lead agency, the City of Santa Ana, has previously approved Mitigated Negative Declaration ER No. 2003-100 covering this project. FISCAL IMPACT There is no fiscal impact associated with this action. John P//eekstin Execut~W~e Director Community Development Agency JPR/SG/mlr 25.H. Page 90 SECOND STREET FIRST STREET SUBJECT SITE STREET Z WALNUT CITY-OWNED PROPERTY 110 West First Street EXHIBIT 1 Page 91 25.H.