REPORT TO THE CITY COUNCIL November 6, 2014 FROM: SCOTT L. MOZIER, PE, Director Public Works Department THROUGH: ANDREW J. BENELLI, PE, City Engineer/Assistant Director Public Works Department, Traffic and Engineering Services Division BY: CRAIG L. HANSEN, Supervising Real Estate Agent Public Works Department, Real Estate Services Section SUBJECT ..Title Authorize the City Manager or designee to execute a grant deed for the sale of excess property in the amount of $50,000 to Frank Stephen Lamarche located at 2748 E. Hamilton, Fresno APN 468-313-18T ..Body RECOMMENDATION To approve the sale of 7,500 square feet of excess property located at 2748 East Hamilton in Fresno to Frank Stephen Lamarche. EXECUTIVE SUMMARY Several years ago PARCS purchased several properties at Hamilton and Sarah in the old industrial part of Fresno to construct what was called the "Vagabond Skateboard Park." Due to budget cutbacks, the park was never constructed and all but one of the parcels was either sold back or returned to the previous owners. The property at 2748 East Hamilton sat vacant for almost seven years and the City was approached by Frank Stephen Lamarche about purchasing it. An appraisal was performed and Mr. Lamarche essentially agreed to the valuation and the City of Fresno has agreed in principle to sell the property pending concurrence by the City Council. BACKGROUND The City of Fresno acquired the subject property in 2007 as one of several properties required for the Vagabond Skateboard Park. When PARCS no longer had funds to build the facility, the City either sold or returned all but one of the properties back to the previous owners. The subject property had been used as a cabinet shop and the business was relocated to Clovis and the previous owner had no intention of returning. The property sat vacant for almost seven years and had succumbed to vandalism. Recently a neighboring property owner expressed interest in purchasing 2748 East Hamilton, but declined after an appraisal by Larry Hopper MAI showed a value of $50,250. Mr. Lamarche then stepped forward and offered to pay the City $50,000 cash in "as-is" condition. Mr. Lamarche intends to use the facility as the home base for his automotive wheel repairing and refinishing business. Mr. Lamarche spent several weeks investigating the various costs and permits required to reopen the facility. The $50,000 is already on deposit with the City. The subject property was purchased using Park Bond proceeds and PARCS is directing the proceeds to be placed in Fund 31509: UGM Parks Citywide Facility Fees, ORG 179901 Parks & Rec Capital Section as per Finance Principle Accountant Phillip Hardcastle and the City Attorney's Office. The City Attorney has reviewed and approved the purchase and sale agreement along with the grant deed as to form. ENVIRONMENTAL FINDINGS The project falls within the Class 1 Categorical Exemption set forth in CEQA Guidelines, section 15301(c) as the subject property had been used as a cabinet shop by the previous owner prior to being purchased by the City of Fresno and the new owner intends to use the parcel as a wheel refinishing and refurbishing shop which falls under the existing industrial zoned permitted use. Furthermore, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, section 15300.2 apply to this project. LOCAL PREFERENCE N/A FISCAL IMPACT The City of Fresno will net $50,000 from the sale of the property. It is anticipated those funds shall be returned to UGM Parks Citywide Facility Fees 31509-179901. Attachment: Aerial photo of subject property