Item 42 - Exchange of Real Property and Purchase of Land

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Agreement for the Purchase and Exchange of Real Property June 21, 2022 Page 2 The owner of the loth/Flower Properties, Charles Manh, planned to develop these properties and expressed an interest in maintaining land in Central Santa Ana. As part of the negotiations, several of the surplus properties (Bristol Properties) on Bristol Street between 7th and 17th Street were offered for exchange, including APNs 405-272-21 & 24 (Parcel C2), 004-123-56 & 57 (Parcel C3), 008-091-01, 02, 13, & 14 (Parcel C8), and 405-074-38 (Parcel P1) (Exhibit 1). The Bristol Properties are among those the City declared surplus and either received no responses by entities receiving the notices of availability, or negotiations ended with no approved offer, concluding the Surplus Land Act requirements for disposition. The proceeds from the sale of these properties are considered restricted funds and will be used to reimburse the granting agencies, and/or to fund further transportation improvements within the Bristol Corridor. A California state licensed appraiser appraised the 10th/Flower Properties owned by the Charles H. Manh Family Trust (Exhibit 2), and a purchase offer of $1,100,000 was determined based on the value assessed by the appraiser. The Charles H. Manh Family Trust accepted the appraisal and purchase offer. The City will utilize $1,100,000 of the ARPA monies allocated for the development of new open space as a credit to escrow for the land exchange, to be used for the land swap needed for the new park (AU No. 18113013-66100, Project No. 22-1342). The Agreement for Exchange of Real Property (Exhibit 3) reflects the purchase price of the Bristol Properties, with the credit of the 10th/Flower Properties applied. The proposed property exchange and purchase of land includes the following: City Parcel ID Buying Entity Proposed Development Purchase Price C2 Charles H. Manh Family Trust Drive-thru Restaurants $2,549,800 C3 Charles H. Manh Family Trust Multi -Tenant Restaurant $1,268,300 C8 Charles H. Manh Family Trust Restaurant & Retail $1,211,500 P1 Charles H. Manh Family Trust I Multi -Family Residential $870,400 Gross Proceeds of Bristol Properties For Bristol Corridor Improvements $5,900,000 Estimated Proceeds to be used for Bristol Improvements $4,127,878.80 Estimated Proceeds to be Returned to Funding Agency (OCTA) $1,772,121.20 10th/Flower Parcels Buying Entity Proposed Development Purchase Price 848 N. Garnsey St. City of Santa Ana New Park $1,100,000 852 N. Garnsey St. City of Santa Ana New Park 925 N. Flower St. City of Santa Ana New Park City to pay this amount for the property exchange (ARPA funding) $1,100,000