60A - PSA 2501 N FLOWER - Laserfiche WebLink

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Appropriation Adjustment and Purchase and Sale Agreement for portion of City -Owned Property at 2501 North Flower Street June 4, 2019 Page 2 Based on City Council discussion during the Closed Session portion of the meeting on June 5, 2018, staff subsequently obtained an opinion of value which considers the property's lack of independent accessibility and development potential, as well as its limited or non-existent marketability. The $4,000 compensation is consistent with the opinion of value. Sale of the property was discussed at the May 21, 2019, City Council, and the action was continued pending receipt of additional information. Specifically, questions relating to the potential liability, and before and after value of the residential property were discussed. Regarding liability, the sale of the property reduces City's liability related to injury/damage in private improvements, including the pool, tennis court, and garage, which are partially within City land. The sale also relieves the conflict created by the City permitting work, and alleviates a potential claim against the City by estate on diminished value due to title concerns. Regarding the net difference in the value to 2467 North Riverside Drive before and after the sale, the opinion received by the City was a nominal value and consistent with the proposed price of $4000. The opinion was based on the fact that during the sale, the property value would be based on the square footage of the house and the associated improvements, neither of which change with the additional property. Pursuant to Section 2-706.1 of the Santa Ana Municipal Code, staff therefore recommends a lot line adjustment to effectively transfer a 4,283-square-foot portion of City property to Mr. and Mrs. Andres for a payment of $4,000. A 10-foot-wide easement will be reserved by the City to access, inspect, maintain, and improve the retaining wall near the new boundary line. The engineering costs associated with the mapping and documentation was paid by Mr. and Mrs. Andres for this Lot Line Adjustment (Exhibit 3). Following recordation of the Lot Line Adjustment, a grant deed (Exhibit 4) must be recorded to complete the process as required by state statute (Subdivision Map Act). A Purchase and Sale Agreement between the parties will memorialize the transaction and ties together the Lot Line adjustment, the Grant Deed, the retaining wall easement reservation, and the purchase price (Exhibit 5). 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). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. 60A-2