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Purchase Agreement for Real Property Acquisitions Warner Avenue Improvements Phase 1 <br />January 15, 2019 <br />Page 2 <br />were accepted by the property owners. The compensation amounts listed above are incorporated <br />in the attached agreements (Exhibits 2 and 3). <br />A Purchase Agreement for 2246 S. Orange (APN 403-142-17) was previously approved by <br />Council on March 20, 2018, in the amount of $442,000. Unbeknownst to City at the time, the <br />property owner was upside down on their mortgage and owed $528,500, or $86,500 more than <br />the appraised value of property. Following negotiations with the bank to defray this difference, a <br />settlement of $468,000 is proposed as shown in the attached agreement (Exhibit 4), or $26,000 <br />above the previous offer. If the proposed Purchase Agreement is not approved, the City could be <br />liable for the full difference owed on the property or would have to pursue eminent domain at an <br />additional cost of $75,000 to $100,000. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item supports the City's efforts to meet Goal #6 — Community Facilities & <br />Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City <br />assets), Strategy G (develop and implement the City's Capital Improvement Program in <br />coordination with the Community Investment and Deferred Maintenance Plans). <br />Approval of this item also supports the City's efforts to meet Goal #3 — Economic Development, <br />Objective #2 (create new opportunities for business/job growth and encourage private <br />development through new General Plan and Zoning Ordinance policies), Strategy C (support <br />business development and job growth along transit corridors through the completion of critical <br />transit plans/projects). <br />ENVIRONMENTAL IMPACT <br />On September 1, 2015, City Council approved the Warner Avenue Final Environmental Impact <br />Statement (SCH No. 2012101004). <br />FISCAL IMPACT <br />Funds in the amount of $3,708,000 are available in the Warner Avenue Improvements Project <br />(No. 14-6802) for expenditure in FY 2018-19: $2,781,000 in the Measure M2 Competitive Street <br />Fund (Account No. 03217663-66100) and $927,000 in the Transportation System Improvement <br />Area B end (Account No. 99217950-66100), subject to nonsubstantive changes. <br />0 <br />Executive Pirector <br />Public Wo*s Agency <br />APPROVED AS TO FUNDS AND ACCOUNTS: <br />Kathryn Downs, CPA Ar �ry <br />Executive Director <br />Finance and Management Services Agency <br />Exhibits: 1. Location Map <br />2. Purchase Agreement — APN 403-141-08 <br />3. Purchase Agreement — APN 016-035-01 <br />4. Purchase Agreement — APN 403-142-17 <br />251-2 <br />