REPORT TO THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF FRESNO AND THE FRESNO REVITALIZATION CORPORATION June 26, 2014 FROM: MARLENE MURPHEY, Executive Director BY: Enrique Mendez, Project Manager SUBJECT ..Title Successor Agency to the Redevelopment Agency consider adopting and approving: 1. Adopt finding of Categorical Exemption pursuant to Section 15301/Class 1 of the CEQA Guidelines (no change in existing use) (Successor Agency Action) 2. PURCHASE AND SALE AGREEMENT between the Successor Agency to the Redevelopment Agency of the City of Fresno and Bitwise Industries LLC for the Sale of a Certain Former Redevelopment Agency Parcel located at 730 & 738 Van Ness (apns 468-253-11T & -15T) within the City of Fresno (Successor Agency Action) ..Body EXECUTIVE SUMMARY The Agency staff recommends approval of a purchase and sale agreement with Bitwise Industries for the sale of two (2) parcels consisting of approximately 0.51 acres on Van Ness Avenue between Inyo and Mono Streets located at 730 & 738 Van Ness (apns 468-253-11T & -15T). BACKGROUND The Successor Agency issued a Request For Proposals to buy Agency-owned parcels apns 468-253-11T & 468-253-15T. Together these adjoining parcels form a rectangular, non-corner property totaling approximately 0.51 acres. It is improved with a parking lot and striped for approximately 58 parking spaces. Prior to the RFP deadline, the Agency received one (1) proposal to purchase from Bitwise Industries LLC. Bitwise Industries LLC, a technology and education company was founded in 2007 and is headquartered at San Joaquin and L Street in downtown Fresno. To support the demand for expansion Bitwise has purchased property at 700 Van Ness Avenue directly adjacent to the Agency's property. Once open, this new location is anticipated to bring 200 new jobs to downtown Fresno and generate $100 million in annual revenue. A third party certified MAI appraiser valued the Agency's 22,500 sq ft property at $8.00/sq ft. or $180,000.00. Bitwise has offered to pay the full appraised value. The Agency will incur its legal fees, and the customary closing costs and escrow fees. The Purchase and Sale Agreement (PSA) is subject to California Health and Safety Code section(s) relating to redevelopment and property disposition. ENVIRONMENTAL FINDINGS The Project has been environmentally assessed and has been determined to be eligible for a Categorical Exemption under Section 15301 Class 1 of the California Environmental Quality Act (CEQA) because there will be no change in the existing use of the property. Further, none of the exceptions to categorical exemptions set forth in CEQA Guidelines section 15300.2 apply to this project. Attachments: Purchase and Sales Agreement