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REQUEST FOR <br />AGENCY ACTION <br />AGENCY BOARD MEETING DATE: <br />AGENCY SECRETARY USE ONLY: <br />FEBRUARY 2, 2009 <br />TITLE: <br />AGREEMENT FOR ACQUISITION OF REAL <br />PROPERTY AND ESCROW INSTRUCTIONS <br />FOR 1902-1914 NORTH MAIN STREET <br />EXE TIVE DIRECTOR <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 1St Reading <br />^ Ordinance on 2"d Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />RECOMMENDED ACTION <br />Authorize the Executive Director and Agency Secretary to execute the <br />attached Purchase and Sale Agreement for Acquisition of Real Property and <br />Bilateral Escrow Instructions for property located at 1902-1914 N. Main <br />Street from Steadfast Courtyards, L.P., a California Limited Partnership, <br />for the amount of $1,300,000 plus normal escrow and closing costs, <br />subject to non-substantive changes approved by the Executive Director and <br />Agency General Counsel. <br />DISCUSSION <br />In September 2005, the City Council and Redevelopment Agency approved and <br />authorized several actions to facilitate the 30,000 square foot expansion <br />of the Bowers Museum. As part of the transaction, the City effectuated a <br />land exchange with Steadfast Companies, a residential developer who owned <br />the property immediately north of the Museum. Under the exchange, <br />Steadfast was to develop a luxury condominium project on the City's <br />existing 20th Street parking lot, and the Museum was to expand its <br />operation on the northerly Steadfast parcel. <br />The Museum has completed its $14 million expansion; however, the <br />Steadfast development has been on hold due to market conditions. <br />Steadfast recently expressed a willingness to sell the lot to the Agency <br />as they a.re not interested in pursuing development of the site. <br />Steadfast Courtyards has agreed to sell their property to the Agency for <br />$1,300,000, which is considerably below market value. In turn, the <br />Agency proposes to enter into a Disposition and Development Agreement <br />with The Charles Bowers Museum Corporation for parking on an interim <br />basis and future museum expansion. <br />3-1 <br />