Special Notice / Hearing: Publication (3 Weeks)
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Subject: Purchase and Sale Agreement for County Acquisition of 1717, 1725 and 1731 S. El Camino Real, City of San Mateo
RECOMMENDATION:
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Adopt a resolution:
A) Declaring the Board of Supervisors’ intent to purchase the real property described as 1717, 1725 and 1731 S. El Camino Real, located within the City of San Mateo, San Mateo County Assessor’s Parcel Numbers 035-219-150, 035-219-140 and 035-219-170, respectively, (“Property”), for the total purchase price of $7,000,000; and
B) Authorizing the President of the Board of Supervisors to execute a Real Estate Purchase and Sale Agreement (“Agreement”) with the owners of the Property, 1707 S. El Camino Real, LLC, a Delaware limited liability company, (“Sellers”), for the County’s acquisition of the Property; and
C) Authorizing the County Executive, or their designee, to execute a Certificate of Acceptance upon satisfaction of certain conditions in escrow, to be recorded with the Grant Deed transferring title to the Property to the County, as well as any and all notices, escrow instructions, and documents required to facilitate the purposes of the Agreement.
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BACKGROUND:
The Property, a mixed-use retail property, comprises three parcels totaling approximately one-half acre, together with two retail buildings and a parking lot. The buildings, the first constructed in 1949 and 1958 and the second in 1964, consist of a total gross interior area of 18,068 square feet. The property is located on South El Camino Real northeast of Highway 92 within the City of San Mateo.
DISCUSSION:
The County has determined the Property would be a valuable site to provide needed public-facing services for administering essential County programs, including San Mateo County Health’s Women Infant & Children (WIC) Program that provides nutrition education and breastfeeding support to County residents.
The Sellers have executed a Purchase and Sale Agreement (“PSA”), proposed by the County Executive for the purchase price of $7,000,000. The PSA provides that, upon completion of the County’s investigation of the Property and satisfaction of all conditions (“Due Diligence Period”), the transaction close would occur on October 31st, 2024, or upon a mutually agreed upon extension close of escrow date.
Acquisition of this Property was evaluated for sea level rise impacts in accordance with the San Mateo County Sea Level Rise Policy for County Assets which requires evaluation of sea level rise risk at least 50 years beyond the date of acquisition. Based on a review of inundation maps during this time horizon, this property is not at risk, screening has been completed and no further action is needed.
Notices pursuant to California Government Code section 25350 of the intention of the Board of Supervisors to make this purchase will be published in compliance with Government Code section 6063.
Pursuant to Government Code Section 65402, the City of San Mateo will be notified of the proposed purchase of the Property and will be requested to issue its findings pertaining to the acquisition’s conformity to the City’s General Plan.
EQUITY IMPACT:
The County is dedicated to providing critical access to services for vulnerable individuals. It is anticipated the acquisition of the Property would further enable the County to administer said essential services by increasing County facility capacity.
FISCAL IMPACT:
The purchase price including closing costs has been appropriated within the FY 2024-25 Approved Recommended Budget and will be paid with General Fund.