SR - - SALE OF SURPLUS PROPERTY 2935 E WALNUT AVENUE1. SUBJECT
Sale of surplus property at 2935 E. Walnut Avenue
2. SUMMARY
The City purchased the vacant parcel at 2935 E. Walnut Avenue in 1975 for the future
construction of Walnut Avenue Bridge over Santiago Creek. Since that time it has been
determined that this parcel is not needed for the future bridge. The City Council approved to
surplus the parcel and adopted Resolution 10981 at the October 2016 meeting. The City real
property agent was authorized to proceed with selling the parcel.
13. RECOMMENDED ACTION
Approve the sale of surplus property at 2935 E. Walnut Avenue to GS Home Services, and
authorize the Mayor and City Clerk to execute grant deed and related escrow documents.
14. FISCAL IMPACT
Upon close of escrow, deposit the sale proceeds to the following account:
263.5011.46940.13120 Pavement Management Program $ 80,000
100.5011.48110.00000 Sale of Real and Personal Property $218,500
TRATEGIC PLAN GOAL(S)
1 d. Provide for a safe community — Assure the development of the City occurs in a fashion that
maximizes public safety.
2d. Be a fiscally healthy community — Effectively manage and develop City assets.
ITEM I. a3 1 12/13/16
6. GENERAL PLAN IMPLEMENTATION
Infrastructure Element Goal 3.0 Ensure adequate maintenance of public rights -of -way to
enhance public safety and improve circulation.
Policy 3.1: Continue to maintain and repair sidewalks and pavement surfaces on public rights -
of -way.
7. DISCUSSION and BACKGROUND I
The subject parcel was developed in 1963 with a single family house as part of Tract 4626. The
house was severely damaged in the 1969 flood of the adjacent Santiago Creek. After the flood,
the remaining house was abandoned. The County, City, and Army Corp of Engineers redesigned
the Santiago Creek and concrete lined it to its present day configuration. In 1975, because of
delinquent property taxes, the County Tax Collector offered the parcel for sale. The City
purchased it for future Walnut Avenue bridge construction at Santiago Creek.
The property is zoned for a single family residence. The parcel is approximately 7,596 square
feet, and encumbered with an access easement in favor of the Orange County Flood Control
District. This easement is approximately 365 square feet, leaving the net useable parcel 7,231
square feet (say 7,230 square feet).
Upon authorization from the City Council at the October 2016 meeting, the City real property
agent sent RFP to local real estate agents to list the property. Two proposals were received and it
was decided to list the property with Ricci Realty of Orange. Upon the advice of Ricci Realty, the
parcel was listed for sale at $250,000. Nine offers have been received. The offers range in value
from $200,000 to $298,500. After reviewing the strength and weakness of each offer with Ricci
Realty staff, it was decided the offer at $298,500 is the best offer. It is an all cash offer and does
not require the buyer to obtain a loan. The offer also calls for the closing of escrow 10 days after
the sale approval by City Council.
In order to accommodate two way traffic and keep existing on- street parking, approximately
$80,000 will be needed from the sales proceed to widen Walnut Street approximately 12 feet and
also to bring both sewer and water connections to the parcel. The street widening will also
provide necessary emergency vehicle access to the Santiago Creek bike trail.
Tonight's City Council action is to approve the sale at $298,500 and authorize the Mayor and
City Clerk to execute grant deed and related escrow documents.
8. ATTACHMENTS
• Summary of offers.
• Sale and purchase offer and agreement.