REPORT TO THE CITY COUNCIL February 2, 2017 FROM: SCOTT L. MOZIER, PE, Director Public Works Department BY: ANDREW J. BENELLI, PE, City Engineer / Assistant Director Public Works Department, Traffic and Engineering Services Division 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 property located at 922 Fagan Alley and "F" Street between Kern and Tulare Streets APN 467-074-05T, in the amount of $25,000 to Sandra Borunda and Frank A. Gonzales (Council District 3) ..Body RECOMMENDATION To approve the sale of 7,500 square feet of excess property located at 922 Fagan Alley and "F" Street to Sandra Borunda and Frank A. Gonzales in the amount of $25,000. EXECUTIVE SUMMARY Sandra Borunda and Frank A. Gonzales recently purchased a building at 929 F Street, immediately west of the subject property. The new owners plan to rehabilitate the building which includes three suites. The prospective buyers recently approached the City about purchasing its small parking lot at 922 Fagan Alley which the City has not used in more than ten years. The City has agreed in principle to sell its property pending concurrence by the City Council. The prospective buyers have given the City a $5,000 deposit. BACKGROUND The City constructed a parking lot on the subject property more than twenty years ago in partnership with the Redevelopment Agency (RDA) (now the Successor Agency). The RDA owned the east half of the lot and the City owned the west half. Access is gained from "F" Street into the RDA portion of the lot via one-way circulation. Traffic then circulates south towards Fagan Alley where vehicles make a "U" turn into the City half of the lot and exit north back out onto to "F" Street. Recently the Successor Agency sold its portion of the lot to Ms. Borunda and Mr. Gonzales leaving the unused City-owned portion with little independent potential apart from a sale to the adjacent owners. The prospective buyers approached the City about selling the parking lot and the Parking Division agreed to sell the lot since it has not been used for several years. An independent MAI appraisal was performed when the Successor Agency placed its portion of the parking lot up for sale a few months ago. The subject property is free of any liens or bonds and the proceeds would be deposited into the General Fund. The City Attorney has reviewed and approved the purchase and sale agreement along with the grant deed as to form. ENVIRONMENTAL FINDINGS The sale of the property is not a "project" within the meaning of the California Environmental Quality Act Guidelines section 15378 because the sale will not result in direct or indirect physical changes to the environment. LOCAL PREFERENCE Local preference was not considered because the City's sale of property does not include a bid or award of a construction or services contract. FISCAL IMPACT The City of Fresno will net $25,000.00 from the sale of the property, which will be deposited into the General Fund if the sale is approved by the Council. Attachment: Aerial photo of subject property