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HomeMy WebLinkAboutItem 3o: Agreement of Purchase and Sale of Property with KARE Youth LeagueSUMMARY BACKGROUND STAFF REPORT Development Services Department DATE: June 15, 2010 TO: Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director f1< Philip A. Wray, Deputy Director of Development Services /City Engineer SUBJECT: AUTHORIZE THE CITY MANAGER TO ENTER INTO AN AGREEMENT OF PURCHASE AND SALE OF PROPERTY WITH KARE YOUTH LEAGUE Recommendation: Approve The City of Arcadia owns a strip of land south of the Arcadia Par -3 Golf Course in the Peck Road Spreading Basin. In 1975, the City granted the entire parcel to the Los Angeles County Flood Control District for flood control purposes to complement the development of the Peck Road Spreading Basin. The parcel of land is no longer necessary for flood control purposes and the City has requested the County to quitclaim the property back to the City. The County processed the request and the Board recently took formal quitclaim action. The parcel abuts the land owned by the KARE Youth League (KARE). A representative of KARE approached the City with a request to purchase the strip of land from the City. The parcel was appraised at $11,797.20. KARE has agreed to pay the appraised value for the land and has also agreed to pay the sale costs. Staff recommends that the City Council authorize the City Manager to enter into a Sales and Purchase Agreement with KARE Youth League for the parcel. The City of Arcadia owns a strip of land south of the Arcadia Par -3 Golf Course that is bounded by the KARE Youth League facility on the northwest and the Peck Road Spreading Basin on the southeast. The parcel is approximately 300 feet long by an average of 20 feet wide, with a total area of 6,554 square feet and is generally unbuildable. In 1975, the City granted the entire parcel to the Los Angeles County Flood Control District for flood control purposes to complement the development of the Peck Road Spreading Basin. Staff Report June 15, 2010 Page Two Over the years, improvements have been made to the basin, such as the bicycle and recreation trail that borders the basin. Recently, it has come to the City's attention that the parcel of land in question is no longer necessary for flood control purposes and is now physically separated from the flood basin by the County recreational trail. The City made a request to the County for the County to quitclaim the property back to the City. The County processed the request and the Board recently took formal quitclaim action. Concurrent with the City's request to the County, KARE approached the City with a request to purchase the strip of land from the City. KARE also approached the County with a request to purchase a parcel of land owned by the County adjacent to the City's parcel in the unincorporated County area. The County parcel is very similar to the City's in use and shape, and is approximately 11,000 square feet. The County appraised its parcel using comparisons of residential property in the area with an adjustment to 10% of the value based on the unbuildable configuration and location. Using the County's appraisal approach, the City's parcel has a value of $11,797.20. DISCUSSION The City's parcel has no value on the open market as a stand -alone developable parcel and cannot be combined with any other contiguous land except that owned by the KARE Youth League to have any value and use. KARE has agreed to pay the appraised value for the land and has also agreed to pay the sale costs such as attorney's fees and title insurance. A Sales and Purchase Agreement has been prepared by the City Attorney and approved by KARE. Once the final County quitclaim document has been recorded, the City may proceed with the sale. FISCAL IMPACT There is a positive fiscal impact of $11,797.20 to the City. KARE will pay the City the appraised value of the property and all sales costs including the title insurance and attorney's fees. There is no negative fiscal impact. RECOMMENDATION It is recommended that the City Council authorize the City Manager to execute an Agreement of Purchase and Sale of Property with KARE Youth League. Approved by: J K: PAW: pa Donald Penman, City Manager