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� <br /> 6.2A <br /> Staff has completed negatiation of a Purchase and Sale Agreement with the Service�L���e. <br /> (See Exhibits A-D of Attachment 1.) Upon Council approval and execution of the Purchase <br /> and Sale Agreement, Service League and the City, through a mutually authorized Escrow <br /> Agent, may commence escrow. <br /> The Property Inspection Report, completed in June 2010, revealed some health and safety <br /> items that should be corrected as soon as possible. The City has begun to implement these <br /> improvements, which will be paid from the Property's rent revenue fund balance. The ending <br /> rent revenue fund balance as of June 30, 2010 was approximately $50,000. After the <br /> Property has transferred, if there are any additional urgent improvements needed the Service <br /> League may request assistance for rehabilitation costs from the Redevelopment Agency <br /> (RDA). The Service League can request CDBG funding in the 2011/2012 program year for <br /> any remaining non urgent repairs. <br /> ALTERNATIVES <br /> The Council could choose not to approve the Purchase and Sales Agreement but it is likely <br /> that HUD will then require the City to reimburse federal funds used for acquisition as well as <br /> any funds used for rehabilitation of the Property and any accrual from rent receipts. The <br /> potential exposure could be several hundred thousand dollars. <br /> FISCAL IMPACT <br /> No financial gain for the sale of the Property will be realized. In addition, the City will not be <br /> required to repay any of the CDBG funds used on the Property. <br /> .� �-- � ��_�.___ <br /> ' C(: F�/C��' yi i.c�-��.- <br /> ��Patricia J. Webb Ji kas, AICP <br /> Economic Development Coordinator nning, Housing and Economic <br /> evelopment Director <br /> Peter C. Ingram <br /> City Manager <br /> ATTACHMENTS <br /> 1. Resolution <br /> Exhibit A- Agreement for Pu�chase and Sale of Real Property (including escrow <br /> instructions) 3272 Rolison Road <br /> Exhibit B - Grant Deed <br /> Exhibit C- Affordable Housing Covenant <br /> Exhibit D- Notice of Affordable Restrictions on Transfer of Property <br /> 2. Location Map <br /> 3. Resolution No. 15051 dated September 13, 2010 <br /> RELATED DOCUMENTS IN CITY CLERK'S OFFICE <br /> None <br /> 82483.0000014 749656.1 <br />