20A - AA BRISTOL STREET PROPERTY SALE

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Purchase and Sale Agreement of Portions of City -owned Real Property at 1301 and 1305 W. 12th Street January 15, 2019 Page 2 Bristol, hereby referred to as "Marshall -Kelley," approached the City and are interested in acquiring the subject "landlocked" properties, in order to regain the parking spaces lost and upgrade their overall site. During the course of the Bristol Street Improvements, the Public Works Agency has acquired numerous properties along the corridor. The subject properties were acquired as part of Bristol Street Improvements Phase 3A. The purchase prices of the two properties acquired by the City were based on appraised values prepared by a state licensed appraiser. The portions of these properties that will remain after the Bristol Street Improvements are completed, and which will not be used by the project, are being held for purposes of exchange or sale. Marshall -Kelley has agreed to acquire the subject properties for the appraised amount of $233,400 (Exhibit 2). Sale of City Owned Parcels- Le -gal Authority Under the Santa Ana Municipal Code (SAMC) Section 2-706, surplus real property may be sold after Council approval to the highest bidder, subject to final confirmation by the Council and with notice of the sale provided by newspaper publication. SAMC section 2-709, however, provides an exemption to this procedure and permits a sale on direct negotiation without the need for public auction or competitive bidding, upon 2/3 vote of the City Council after a duly noticed public hearing. The sale of these properties will return them to the property tax rolls as part of the larger commercial property. The subject parcels have a total combined area of approximately 7,780 square feet and would otherwise present a challenge to the City to market and sell to parties other than the adjacent property owner. Because a portion of the original acquisition funds came from Orange County Transportation Authority (OCTA) grant funding, a portion of the proceeds from this sale of land are restricted and will be used to reimburse the granting agency, based on local match requirements associated with acquisition funding. For these reasons, City Council adopted a resolution on. October 16, 2018, to allow direct negotiations with Marshall -Kelley. Staff recommends approval of the Purchase and Sale Agreement. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 — Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy G (develop and implement the City's Capital Improvement Program in coordination with the Community Investment and Deferred Maintenance Plans). Approval of this item also supports the City's efforts to meet Goal #3 — Economic Development, Objective #2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies), Strategy C (support business development and job growth along transit corridors through the completion of critical transit plans/projects). 20A-2