Item 16 - Purchase and Sale Agreement for 1601 and 1607 N Bristol Street

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1601 and 1607 N Bristol Street October 15, 2024 Page 2 DISCUSSION On December 21, 2021, the City Council authorized the City Manager to execute a purchase and sale agreement (PSA) (Exhibit 1) for the sale of 1601 and 1607 North Bristol Street (Exhibit 2) to Southwest Properties Group. The sale from the City to Southwest Properties Group, and a subsequent property transfer to Bristol Center Properties, LLC (Developer), was recorded on May 19, 2022. As part of the PSA, the Developer had to complete the development by November 19, 2024. In 2023, the Developer submitted applications to the City to develop the properties at 1601 and 1607 North Bristol Street into a drive -through coffee restaurant. Subsequently, during the Site Plan review process for the development project, staff determined that a 392 square -foot portion (Exhibit 3) of Bristol Street right of way is situated outside the limits of the street improvements, and that the right of way could be vacated, conveyed to the developer, and incorporated into the private property site to facilitate a more efficient development. The conveyance requires a series of actions concluding with the recommended actions. Background During the course of the Bristol Street Improvement Project, the Public Works Agency acquired properties along the Bristol Street corridor. The City purchased properties at 1601 North Bristol Street (APN 405-252-21) and 1607 North Bristol (APN 405-252-22) to accommodate the Bristol Street Improvements from Washington Street to 17t" Street using Orange County Transportation Authority (OCTA) funding that was appropriated for this project. Moreover, following project construction, a 392 square -foot portion of this property (Exhibit 4) remained unused and therefore made available for purposes of exchange or sale. On July 16, 2024, the City Council adopted a resolution to summarily vacate the 392 square -foot portion of excess Bristol Street right of way, and adopted a resolution declaring it as exempt surplus property. The subject 392 square -foot property identified as the Vacation Portion is being disposed of in accordance with the Surplus Lands Act. Following Council adoption of the exempt surplus property resolution, staff submitted the resolution to the California Department of Housing and Community Development (HCD). On September 18, 2024, HCD notified the City that the Property qualifies as exempt surplus land under California Government Code section 54221, subdivision (f)(1)(B) and (E). The purchase price was based on appraised values prepared by a state -licensed appraiser and was based on small size, shape, and lack of independent developability. The proceeds from the sale of this property are considered restricted funds and will be used to fund the Bristol Corridor improvements.