AgdaPkt 2004-08-09 - Laserfiche WebLink

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5� 1�� I REPOR T To Redevelopment Agency Board From the Executive Director August 9, 2004 Subject Agreement for Purchase and Sale of property located at 707 Bradford St. to Landbank for Affordable Housing and/or Childcare Faciliry. Recommendation 1. Agency authorization to execute Purchase and Sale Agreement to purchase 707 Bradford Street befinreen Family Services Agency of San Mateo County and the Agency for $1.4 million; 2. Agency authorization to appropriate $1,127,438 of housing set-aside funds allocated in the Agency's Housing Capital Budget for FY 2004-05 for the $1.4 million purchase price; and 3. Agency authorization to appropriate an amount not to exceed $299,600 of RDA General Fund/Capital Project-Childcare Site Acquisition budgeted for FY 2002-03, of which $272,562 is fo� the balance of the $1.4 million purchase price and the remaining $27,000 for related due diligent reports and closing costs. Background The Family Services Agency (FSA) of San Mateo County is currently selling one of its properties located at 707 Bradford Street near Main Street. The property is .24 acres with a two-story, 5,300 square foot office building and 17 parking spaces in the Central Administration (CA) zoning district. Properties adjacent to the FSA property are Peninsula Free Methodist Church, Bay Area Bank's parking garage, and a vacant parcel owned by Richard Gardella, et al. FSA received five offers to purchase the property and was in the process of negotiating with one buyer until mid-July. During that time, the Agency had planned to submit a back up offer of $1.4 million, but FSA requested the Agency to provide an offer to purchase letter stating that negotiations with the original buyer did not materialize. FSA has signed the Sale and Purchasing (P&S) Agreement that is now awaiting execution by the Agency (see attached P&S Agreement). Key terms and conditions are as follows: • Purchase Price: $1,400,000 � Escrow Close: Early September 2004 • Effective Date of the P&S AQreement: August 10, 2004 • AQencv Due DiliQence. Agency will have a due diligence period of 21 business days to investigate and review the property's environmental and physical condition and the preliminary title report. The 21 days start ftom the effective date of the P&S Agreement. • DeQOSit: Agency to deposit a total of $140,000 — first deposit of $70,000 within 10 business days of the P&S Agreement date and second deposit of $70,000 within 21 days of the execution of agreement. • Occupancv of ExistinQ Tenant: One tenant currently occupies the building without a lease or paying rent and will vacate the property prior to or upon the close of escrow. In the event the Agency is subjected to demand and claim by this tenant or others for relocation assistance and other benefits, FSA agrees to reimburse Agency for.all amounts described in the P&S Agreement. __ __.. �. . _ .