SR - AGR-6421 - SALE OF SURPLUS PROPERTY AT 210 N MCPHERSON ROADSale of surplus property at 210 N. McPherson Road to the East Orange County Water District.
2. SUMMARY
The subject property at 210 N. McPherson Road was the former McPherson Resource Center
site. The property has not been used for the last several years and was vacant. The East Orange
County Water District entered into a six month lease with the City of Orange in July 2016. The
City declared the property surplus at the August 2016 city council meeting (Resolution 10959).
The City is now prepared to sell the property to the East Orange County Water District.
13. RECOMMENDED ACTION J
1. Approve the Agreement for the Purchase and Sale of Real Property between the City of
Orange and the East Orange County Water District for the property at 210 N. McPherson
Road. The sale price is $520,000.
2. Authorize the Mayor and City Clerk to execute escrow and related documents concerning the
sale of property at 210 N. McPherson Road.
4. FISCAL IMPACT
The sale will generate $520,000, less any escrow expenses. Funds will be deposited to the
following account:
100.5011.48110.00000
Sale of Real and Personal Property
15. STRATEGIC PLAN GOAL(S) I
2. Be a fiscally healthy community
b. Analyze future fiscal needs and potential revenue opportunities.
d. Effectively manage and develop City assets.
6. GENERAL PLAN IMPLEMENTATION
Economic Development Elements Goal 3.0 Strengthen the City's economic base and stimulate
employment through new commercial and industrial development and expansion.
Policy 3.2: Encourage public and private sector investments that promote commercial
development and expansion opportunities.
7. DISCUSSION and BACKGROUND
The subject property was the former McPherson Resource Center and is an improved parcel of
land 11,580 square feet in size. It is mostly paved with asphalt and there is a modular office
trailer (12' x 40') on it. The office trailer has three offices and a one -half bathroom. The property
has not been used for the last several years and was vacant. The East Orange County Water
District entered into a six month lease with the City of Orange in July 2016.
The property is not needed for present or prospective City projects, therefore the City declared
the property surplus at the August 2016 City Council meeting (Resolution 10959). In accordance
with California Government Code Section 54220 et seg, the City must notify various agencies
and public entities about the availability of the property and give them a 60 day opportunity to
respond if they are interested in acquiring the property before it can be offered to the general
public. The 60 noticing period has elapsed and there was no interest received from any of the
agencies or public entities, other than the East Orange County Water District.
City staff proceeded to obtain a real estate appraisal by a licensed real estate appraiser as part of
the surplus process to determine the fair market value. The appraisal report stated the fair market
value of the property was $520,000 on the date of valuation, August 29, 2016.
The City Attorney prepared an Agreement for the Purchase and Sale of Real Property that was
presented to the East Orange County Water District board of directors at their October 20, 2016
meeting. The EOCWD board approved the purchase at $520,000. City staff recommends the
approval of the sale at $520,000.
Tonight's action by the City Council will approve the sale of the subject property and authorize
the Mayor and City Clerk to execute escrow and related documents. The sale price is $520,000.
18. ATTACHMENTS
• Agreement for the Purchase and Sale of Real Property
CITY COUNCIL MINUTES NOVEMBER 9, 2016
3. CONSENT CALENDAR (Continued)
3.33 Memorandum of Understanding with the Orange Police Management Association,
Resolution No. 10967. (C2500.J.4.2.1)
A Resolution of the City Council of the City of Orange Establishing a Memorandum of
Understanding between the City of Orange and the City of Orange Police Management
Association Effective July 1, 2015 to June 30, 2017.
ACTION: Approved.
3.34 Measure M2 Expenditure Report, Resolution No. 10983. (C2500.J.)
A Resolution of the City Council of the City of Orange Concerning the Fiscal Year Ended
June 30, 2016, Measure M2 Expenditure Report for the City of Orange.
ACTION: Approved.
3.35 Comprehensive Transportation Funding Projects, Resolution No. 10984. (T2200.0)
A Resolution of the City Council of the City of Orange approving the submittal of
transportation improvement projects to the Orange County Transportation Authority
(OCTA) for funding under the Renewed Measure M (M2) of the Comprehensive
Transportation Funding Program.
ACTION: 1) Approved Resolution No. 10984, and authorized the Mayor to execute on
behalf of the City; and 2) Approved the submittal of two proposed transportation
improvement projects to the Comprehensive Transportation Funding Program for Fiscal
Years 2016/17 through 2017/18 as administered by OCTA.
SURPLUS PROPERTY
3.36 Sale of surplus property at 210 N. McPherson Road to the East Orange County Water
District. (A2100.0; AGR -6421)
ACTION: 1) Approved the Agreement for the Purchase and Sale of Real Property between
the City of Orange and the East Orange County Water District for the property at 210 N.
McPherson Road for the amount of $520,000; and 2) Authorized the Mayor and City Clerk
to execute escrow and related documents concerning the sale of property at 210 N.
McPherson Road.
Councilmember Whitaker recorded an abstention on Item 3.7. Councilmember Nichols
recorded an abstention on Item 3.27. Mayor pro tem Murphy recorded an abstention on
Items 3.30 and 3.31. All other items on the Consent Calendar were approved as
recommended.
MOTION — Alvarez
SECOND — Murphy
AYES — Alvarez, Whitaker, Smith, Murphy, Nichols
END OF CONSENT CALENDAR
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