Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Subject: Purchase and Sale Agreements for the Acquisition of adjacent commercial properties, 3009 & 3017 Middlefield Road and 401 2nd Avenue, located in unincorporated Redwood City
RECOMMENDATION:
title
Adopt a resolution:
A) Declaring the Board of Supervisors’ intent to purchase the real property described as 3009 & 3017 Middlefield Road (Assessor’s Parcel Numbers 060-053-080 & 060-053-100), and 401 2nd Avenue (Assessor’s Parcel Number 060-053-060), (“Properties”), located adjacent to each other in unincorporated Redwood City, for a total purchase price of $4,100,000 (consisting of $3,150,000, for the Middlefield Road Parcels, and $950,000, for the 2nd Ave. Parcel); and
B) Authorizing the President of the Board of Supervisors to execute Real Estate Purchase and Sale Agreements and Escrow Instructions (“Agreements”) with the owners of the Properties, Raza Development Fund Inc, and Francisco Chavez and Anita N. Chavez, (“Sellers”), for the County’s acquisition of the Properties; and
C) Authorizing the County Executive, or designee, to execute the Certificates of Acceptance upon satisfaction of certain conditions in escrow, to be recorded with the grant deeds transferring title to the properties to County, as well as any and all notices, escrow instructions, and documents required to facilitate the purposes of the Agreement.
. body
body
BACKGROUND:
The subject Properties consist of three contiguous, irregularly shaped parcels with a combined total area of approximately 0.473 acres. The improvements on the Properties consist of one two-story building with a mezzanine area, three sheds, and one one-story building, constructed in 1948 and 1980, with a gross building area of 11,888 square feet.
The Properties are mixed-use properties with current onsite operations consisting of commercial and retail sales. The subject Properties are zoned NMU-DR, Neighborhood Mixed Use - Design Review Zoning District, intended primarily for the location of neighborhood serving trades to meet the needs of surrounding residential areas and as a higher density living option for residents.
DISCUSSION:
The County has determined that the Properties would provide an appropriate location to be used for County operations and programs. Potential specific uses have yet to be identified and additional facilities and/or other community serving uses are to be determined.
The Sellers have executed Purchase Sale Agreements for the Properties of $3,150,000 and $950,000, respectively, for a total negotiated purchase price of $4,100,000, an amount that is consistent with the appraised value of the Properties. The Purchase and Sale Agreements between the County as Buyer, Raza Development Fund Inc and Francisco Chavez & Anita N. Chavez, owners of the Properties, as Sellers, are anticipated to close by September 12th, 2023, once due diligence has been completed.
Notices pursuant to California Government Code section 25350 of the intention of the Board of Supervisors to make this purchase were published in compliance with Government Code section 6063, including a description of the properties to be purchased, the price, the vendor, a statement of the time the Board would meet to adopt this Resolution and consummate the purchase, and an invite to interested persons to attend and be heard on the subject.
A Property Condition Report was commissioned, which indicated the Properties and facilities are in fair condition. Notwithstanding, the Properties will require renovations and system upgrades for future uses.
A Phase I Environmental Site Assessment (ESA) has been conducted and findings are being reviewed and evaluated.
EQUITY IMPACT
The County of San Mateo is dedicated to ensuring equitable access to quality services for all residents. The County acquires and leases real property to ensure all residents can access services in the locations and facilities best suited to their specific purposes. This acquisition will further the County’s ability to ensure that critical services for residents can continue to be met.
FISCAL IMPACT
The purchase price including closing costs has been appropriated within the FY 2023-2024 Approved Recommended budget and will be paid with General Fund.