REPORT TO THE CITY COUNCIL June 18, 2020 FROM: WILMA QUAN, City Manager Office of Mayor and City Manager's Office ALDI DODDS, Deputy City Manager Office of Mayor and City Manager's Office SUBJECT ..Title Actions pertaining to Acquisition of 5191 North Sixth Street (APN 418-401-09): 1. Adopt a finding of Categorical Exemption pursuant to Section 15301/Class 1 of the California Environmental Quality Act (CEQA) guidelines. 2. Approve Purchase and Sale Agreement with Proactive Enterprises, LLC, in the amount of $675,000 for real property located at 5191 North Sixth Street (APN 418-401-09) for the development of a community center (District 4). ..Body RECOMMENDATION Staff recommends the City Council approve the Class 1 CEQA exemption finding and approve the attached Purchase and Sale Agreement for real property located at 5191 North Sixth Street (APN 418-401-09) for the development of a community center, and authorize the City Manager, or her designee, to sign all documents necessary to complete the transaction. EXECUTIVE SUMMARY On February 13, 2020, City Council appropriated carryover funds for a community center in Council District 4. Staff recommends acquiring property located at 5191 North Sixth Street for the development of the community center in an existing building space. BACKGROUND City Council appropriated funds for a community center in Council District 4 on February 13, 2020. Staff has since researched available real estate within the district boundaries that would be conducive to this use. During this search, staff toured property located at 5191 North Sixth Street. The parcel totals 27,007 square feet and includes 7,657 square feet of building space. The proposed purchase price of $675,000 includes a two-building office complex separated by a covered and gated courtyard. The parcel also includes twenty-two parking spaces. The current zoning is CMX (corridor/center mixed use), which allows for the use of a community center. Staff recommends the approval of the purchase and sale agreement in order to acquire the property. ENVIRONMENTAL FINDINGS Staff performed an environmental assessment of this project and determined that it falls within the Categorical Exemption set forth in CEQA Guidelines, Section 15301/Class 1 which exempts the operation, repair, and minor alterations to existing facilities, involving negligible or no expansion of existing or former use. This exemption applies because this project, as far as it is known at this time, involves only minor alterations to the existing structure for the desired use and involves only a negligible expansion of the prior use. Furthermore, staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. LOCAL PREFERNCE Local preference was not considered because the acquisition of this property does not include a bid or award of construction or services contract. FISCAL IMPACT Funding for the property acquisition was previously appropriated in Resolution 2020-029, the 14th carryover amendment, approved by City Council on February 13, 2020. Attachment: Purchase and Sale Agreement