Item 12 - 28 Civic Center Plaza Purchase Agreement

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Community Development Agency www.santa-ana.org/community-development Item # 12 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report August 15, 2023 TOPIC: Authorize a Purchase and Sale Agreement in the Amount of $3,826,000 for Full Real Property Acquisition for 28 Civic Center Plaza (Property Owner: State of California) AGENDA TITLE Authorize a Purchase and Sale Agreement in the Amount of $3,826,000 for Full Real Property Acquisition for 28 Civic Center Plaza (Property Owner: State of California) (Non-General Fund) RECOMMENDED ACTION Authorize the City Manager to execute the Purchase and Sale Agreement and all required documents for the acquisition of real property located at 28 Civic Center Plaza (APN: 008-067-36), in the amount of $3,826,000 plus closing costs and escrow fees, subject to non-substantive changes approved by the City Manager and City Attorney. DISCUSSION The City of Santa Ana has been in discussions with the State of California for the acquisition of State surplus property at 28 Civic Center Plaza (APN 008-067-36) for the future modernization of the Santa Ana Civic Center. The nine-story building, which is 128,010 square feet in size and situated on 0.5 acres (underlying land and building hereinafter “State Building”), is surrounded by the Santa Ana City Hall and other City- owned property (Exhibit 1). To assist with the acquisition of the State Building, the State of California Department of Parks and Recreation-authorized grant (Project # SG-30-026 "Modernization of the Santa Ana Civic Center") provides funds in the amount of $9,000,000 to the City of Santa Ana for the modernization of the Santa Ana Civic Center. The Purchase and Sale Agreement (Exhibit 2) establishes the purchase price for the State Building at $3,826,000, the fair market value, based on an appraisal conducted on December 29, 2022. Currently, modernization efforts have begun throughout the Civic Center campus, which is generally bounded by Civic Center Drive on the north, Sycamore Street on the east, 3rd Street on the south, and Shelton Street on the west. Development projects by the City and other agencies within the Civic Center campus include a $400 million investment by the County of Orange for a new headquarters, a $500 million multi- agency investment for the OC Streetcar (Orange County’s first modern streetcar), and a