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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />MAY 2, 2017 <br />TITLE: <br />PURCHASE AND SALE AGREEMENT <br />WITH NET DEVELOPMENT CO. FOR <br />THE SALE OF CITY -OWNED REAL <br />PROPERTY AT 2129 NORTH MAIN <br />STREET <br />(STRATEGIC PLAN NO. 3,3C) <br />CI NAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on lb' Reading <br />❑ Ordinance on 2"' Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO Q&t& . ceCY7 <br />FILE NUMBER <br />Authorize the City Manager and Clerk of the Council to execute a purchase and sale agreement <br />with Net Development Co., for the sale of City -owned property located at 2129 North Main Street <br />in the amount of $2,075,000, subject to non - substantive changes approved by the City Manager <br />and City Attorney. <br />DISCUSSION <br />On September 20, 2016, the City Council authorized the negotiation for the sale of City -owned <br />real property at 2129 North Main Street and entered into an exclusive negotiation agreement <br />(ENA) with Net Development Co. for the purpose of developing a hotel on the property. Santa <br />Ana Municipal Code (SAMC) Section 2 -709 allows for the direct negotiation and sale of City- <br />owned property without the need for a public auction or competitive bidding, upon a 2/3 vote of <br />the City Council. <br />The ENA required obligations of the developer to be satisfied before the City moves forward with <br />selling the property for development of the hotel. These obligations were: <br />a) A complete development application with payment of fees (Completed and currently being <br />reviewed by Planning) <br />b) Proposed zoning changes (Not applicable) <br />c) A good faith deposit of $90,000. These funds will be moved to escrow during the sale <br />process. (Completed and held in a City account) <br />d) A written commitment from a recognized hotel chain (Completed) <br />e) Proposed financing plan (All private funding) <br />f) A preliminary financial analysis (Completed) <br />Proposed Conceptual hotel renderings are attached as Exhibit 1. <br />25A -1 <br />