REPORT TO THE CITY COUNCIL December 4, 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 Actions pertaining to the sale of excess property on Santa Fe Avenue between Mono Street and Inyo Street: 1. Adopt a finding of a categorical exemption pursuant to class 1/15301(c) (existing facilities) of CEQA Guidelines 2. Authorize the City Manager or designee to execute a grant deed for the sale of excess property in the amount of $326,800.00 to Baltara Enterprises LP located on Santa Fe Avenue between Mono Street and Inyo Street APN 468-167-01T ..Body RECOMMENDATION Approve the sale of 72,527 square feet of excess property located at 750 Santa Fe Avenue to Baltara Enterprises LP. EXECUTIVE SUMMARY Baltara Enterprises LP is in the first of three phases of developing the "Warehouse Row Project" at 744 "P" Street, which is across the street from the Santa Fe lot. The developer has signed a long term lease with the U.S. Customs and Immigration Service as the anchor tenant with an occupancy date of May 1, 2015. In search of a parking lot which can accommodate phase 1 as well as future parking needs, Baltara Enterprises LP approached the City of Fresno about selling its parking lot. Based on an independent appraisal, the City of Fresno has agreed in principle to sell its property to Baltara Enterprises LP pending concurrence by the City Council. BACKGROUND The City of Fresno acquired the Santa Fe lot from the Burlington Northern Santa Fe Railroad several years ago. The City improved the property with a light coat of asphalt and used the lot as a temporary parking facility. Three years ago, the City had planned to transfer ownership to the Redevelopment Agency ("RDA") and the RDA in turn was to sign a long term lease with Baltara Enterprises LP. Just prior to consummating the deal, the RDA was ordered to be phased out by Governor Brown and the transaction stalled. Needing the parking as a vital component to the "Warehouse Row Project," Baltara Enterprises then asked if the City was interested in selling the lot. Since the City had no future plans for the property, both parties agreed to an independent MAI appraisal which was performed by Dave Hamilton. A purchase price of $4.50 per square foot was agreed to and the buyer is paying all cash and is accepting the property in "as is" condition. The subject property is free of any liens or bonds and the proceeds are expected to be deposited into the General Fund as Parking Services Division revenue. 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 parking lot by the City of Fresno and the new owner intends to use the parcel for the same purpose. 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 $326,800.00 from the sale of the property. It is anticipated those funds shall be returned to the General Fund as Parking Services Division revenue. Attachment: Aerial photo of subject property