HomeMy WebLinkAboutAgenda Report - March 18, 1998 (61)V� Q<
COUNCIL COMMUNICATION
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AGENDA TITLE: Consideration by the City Council to purchase three parcels containing approximately
21 acres located at 1366-1460 E. Lodi Avenue from the Bank of Stockton, trustee for
the Revolving Loan Fund of San Joaquin County and Melva L. Darnell.
MEETING DATE: March 18, 1998
PREPARED BY: Community Development Director
RECOMMENDED ACTION: That the City Council adopt the attached Resolution approving the purchase of
three parcels located at 1366-1460 East Lodi Avenue and authorize the City
Manager and City Clerk to execute all documents in connection with this
purchase.
BACKGROUND INFORMATION: As the Council will recall, staff brought forward the idea of
purchasing property for future industrial development back in October
1997. At that time, we had identified five parcels totaling approximately
40 acres. The intent of the purchase was to create logical development
sites that then could be marketed as part of our expanding business attraction program. The parcels indicated were
felt to be excellent candidates as they have been offered for sale for a number of years, are a difficult lot
configuration, and lack any road access or utility infrastructure.
Pursuant to Council direction, staff made offers on the property with appropriate contingencies related to title
reports, environmental clearance and appraisals. Two of the three property owners accepted our offer and the City
entered into escrow on the subject properties in December 1997. Since that time, escrow has been proceeding with
all contingencies placed on our offer now being met.
Funds in the amount of $842,000 to purchase these parcels are being held in the Electric Utility Rate Stabilization
Reserve Account. The purchase price for the property is $40,000 per acre. In addition, $2,000 is being paid to the
Bank of Stockton for the cost of the Phase 1 Environmental and the City will pay for our share of all closing costs.
Repayment of these funds to the Rate Stabilization Account will occur as the property is resold for development
purposes.
FUNDING: Electric Utility Rate Stabilization Reserve
Estimated Cost: $848,175.00
Funding Available: 0.N:
Vicky McAthi , Finance Director
Konradt Bartlam
Community Development Director
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Attachment
APPROVED:
H. Dixon Iynn -- City Ma ger
y OF 40 COMMUNITY DEVELOPMENT
PROPERTY ACQUISITION
DEPARTMENT
1366-1460 EAST LODI AVENUE
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RESOLUTION NO. 98-50
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING THE PURCHASE OF THREE PARCELS OF
PROPERTY LOCATED AT 1366-1460 E. LODI AVENUE
WHEREAS, in October 1997 staff presented the idea to the City Council of
purchasing property for future industrial development; and
WHEREAS, staff identified five parcels totaling approximately 40 acres which
would create logical development sites that then could be marketed as part of our
expanding business attraction program; and
WHEREAS, pursuant to Council direction, staff made offers on the property with
appropriate contingencies related to title reports, environmental clearance and appraisals;
and
WHEREAS, two of the three property owners accepted the City's offer and the City
has entered into escrow on three parcels containing approximately 21 acres in December
1997; and
WHEREAS, the purchase price for the three parcels is $40,000 per acre, with an
additional $2,000 being paid to the Bank of Stockton for the cost of the Phase 1
Environmental and the cost of the City's share of closing costs.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby
approves the purchase of the three parcels located at 1366-1460 E. Lodi Avenue from the
Bank of Stockton, trustee for the Revolving Loan Fund of San Joaquin County and Melva
L. Darnell in the amount of $842,000.
Dated: March 18, 1998
I hereby certify that Resolution No. 98-50 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held March 18, 1998, by the following vote:
AYES: COUNCIL MEMBERS - Johnson, Land, Mann, Pennino and Sieglock
(Mayor)
NOES: COUNCIL MEMBERS - None
ABSENT: COUNCIL MEMBERS - None
ABSTAIN: COUNCIL MEMBERS - None
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ALICE M. REI CHE
City Clerk
98-50