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 3 Recommendations Staff recommends approval of the recommended actions to transfer ownership of unused and undevelopable land to the adjacent property owner, as authorized under Santa Ana Municipal Code Section 2-706.1 Sale to Owners of Adjoining Property (Exhibit 5). Additionally, the original PSA contained a provision in Section 6.24 to ensure the timely development of the remnant property as a drive-thru restaurant or drive-thru cafe. The provision, termed Opening Covenant in the PSA, allowed for the City to buy back the property in the event the proposed development was not open for business within 30 months following close of escrow. The opening deadline pursuant to the provisions of the PSA would be November 19, 2024. Despite City staff and the developer's efforts to diligently and cooperatively further the project, based on the current status of the development and the need to vacate and incorporate adjacent excess Bristol Street right of way into the project site, the opening date will not be met. The agreement amendment (Exhibit 6) changes the allowable timeframe in the Opening Covenant from 30 months to 48 months, an increase of 18 months. The increase would allow sufficient time to complete project entitlements, prepare and approve construction documents, finish construction, and open the business to the public. Staff recommends approval of the recommended actions to extend the deadline to open the business to the public by 18 months to May 19, 2026. Approval of the recommended actions will allow the City to sell such City -owned vacant property acquired with OCTA Right -of -Way restricted grant funds, and return proceeds of $2,989 to the Bristol Street Improvement Project, and funding agency in the amount of $6,811, proportionally based on match requirements, consistent with Comprehensive Transportation Funding Program (CTFP) Cooperative Agreement C-6-0069 between the respective agencies. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT The revenue generated will be used to reimburse Bristol Street project expenditures and replenish grants used on acquisition costs, as well as fund additional public improvements along Bristol Street. The sale of this property is expected to lead to other significant economic activity spurred from the development of the Better Buzz coffee restaurant project, such as creating local jobs, sales tax boosts, and increased property tax that will be realized by the City in perpetuity. Additionally, the City will be relieved from the continued maintenance, clean up, and liability from owning this vacant parcel. Approval of the recommended Appropriation Adjustment will recognize the receipt of $2,989 into the Select Street Construction Fund, Sale of Land revenue account (No.