Item 24 - Joint Public Hearing Adopt Resolution and Approve Purchase and Sale Agreement

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EXHIBIT 5 Consideration Received by the Successor Agency Upon completion of the transaction, the Successor Agency will receive $190,000 from the City for the sale of the Property. This amount is consistent with the appraised value, ensuring that the Successor Agency receives fair market value for the property. Cost to the City The City will incur a total of $190,000 for the acquisition of the Property. There will be no additional closing costs incurred by the City for this transaction. Comparison with Established Value The transaction is structured to ensure that the Successor Agency receives a fair market value consistent with the highest and best use appraisal. The Appraisal concluded that the value of the Property, considering its legally permissible uses and existing conditions, is $190,000. The purchase price agreed upon in the Purchase and Sale Agreement is exactly $190,000, matching the appraised value. Public Benefit The acquisition of the Property by the City will ensure the continued provision of parking spaces as mandated by the Parking Lease Agreement, benefiting the adjacent office building and its users. Furthermore, holding the Property for future redevelopment can potentially lead to further public benefits through future development projects. Conclusion The consideration received by the Successor Agency and the cost incurred by the City for the acquisition of the Property are both aligned with the appraised fair market value of $190,000. This transaction not only complies with HSC Section 33433 requirements but also ensures the fulfillment of existing agreements and can support the City's long-term development objectives. VI. BLIGHT ELIMINATION The acquisition of the Property by the City from the Successor Agency is a strategic move to support long-term blight elimination efforts in the Central City Redevelopment Project Area. The Redevelopment Five -Year Implementation Plan (July 1, 2010 - June 30, 2015) (Implementation Plan) outlines several key goals and objectives focused on the removal of blighting conditions and the promotion of redevelopment within the area. Although the City is not currently planning to develop the Property, holding it ensures compliance with the Parking Lease Agreement and positions the City to address blight effectively in the future. The following points highlight how this transaction aligns with the goals and contributes to the overall elimination of blight: