TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Scott Agajanian, Economic Development Director
PREPARED BY: Tiffany Israel, City Attorney
SUBJECT:
title
Approval of the Exchange of a Portion of City-Owned Real Property (APN 963-060-086) for Real Property Owned by a Third Party (APN 963-060-065) and Appropriation for the Development of Fire Station 6 to Serve the Community
end
RECOMMENDATION
recommendation
Staff recommends that the City Council approve the Exchange Agreement and Joint Escrow Instructions (Agreement) between the City of Murrieta (City) and Scott-Murrieta Service Station, LP, a California limited partnership, Bonsall Service Station, LP, a California limited partnership and Murrieta Marketplace Holdings, LP, a California limited partnership (jointly and severally the Private Owner) and appropriation of $1,000,000 as memorialized in Resolution No. 24-4794, entitled: A Resolution of the City Council of the City of Murrieta, California, Approving the Exchange of a Portion of the City-Owned Real Property (APN 963-060-086) Plus Payment of $1,000,000 for the Real Property Located at APN 963-060-065 for the Purpose of Acquiring it for Development as a New Fire Station to Serve the Community; and
Amend the Fiscal Year 2024/25 Operating and Capital Improvement Plan (CIP) Budgets as specified in the fiscal impact statement.
body
PRIOR ACTION/VOTE
On September 3, 2024, the City Council enacted Resolution 24-4782 pursuant to Section 400 of the Surplus Land Act Guidelines, finding that the City property that is proposed to be transferred for land to build a new fire station is "exempt surplus land" under Government Code Section 54221(f)(1)(C) (Vote 5-0).
CITY COUNCIL GOAL
Provide a high level of innovative public safety.
BACKGROUND
The City has identified a critical need to establish a new fire station to enhance emergency response time and capabilities to ensure safety and well-being for the community. This Exchange Agreement and Joint Escrow Instructions between the City and Scott-Murrieta Service Station, LP, a California limited partnership, as to a 40% interest, Bonsall Service Station, LP, a California limited partnership, as to a 40% interest and Murrieta Marketplace Holdings, LP, a California limited partnership as to a 20% interest (jointly and severally the "Private Owner") seeks to exchange two properties to provide the City with a location for the development of a new fire station.
The City owns unimproved real property located at the southwest corner of Clinton Keith Road and Porth Road in the City of Murrieta, Riverside County, State of California (a portion of APN 963-060-079) (City Property). The City Property is part of the property shown below. The City Property is valued at $500,000.
The Private Owner owns real property located at the southeast quadrant of Clinton Keith Road and Los Alamos Road improved only as a parking lot with lights in the City of Murrieta (APN 963-060-065) ("Private Owner Property"). The Private Owner Property is shown in green outline in the image below. The Private Owner's Property is valued at $1,500,000.
The parties agree to exchange the respective properties pursuant to the Exchange Agreement, which also includes the payment of $1,000,000 to the Private Owner, which is the difference between the values of the respective properties.
Pursuant to the Surplus Property Land Act (Government Code Sections 54220 et seq (SLA), the California Department of Housing & Community Development (HCD) issued a letter dated October 16, 2024, confirming that the proposed exchange qualifies as exempt from the SLA pursuant to exemption in Government Code Sections 54221(f)(1)(C).
Recommended Actions
Staff recommends that the City Council:
1. Approve and authorize the City Manager to execute the Exchange Agreement and Joint Escrow Instructions;
2. Appropriate the sum of $1,000,000 for the payment to the Private Owner pursuant to the Exchange Agreement; and
3. Amend the Fiscal Year 2024/25 Operating and Capital Improvement Plan (CIP) Budgets as specified in the fiscal impact statement
FISCAL IMPACT
The total fiscal impact is $1,000,000, which will be paid to the private owner as compensation for the difference in the valuations of the properties being exchanged. Staff recommends the following amendments to the FY 2024/25 Operating and Capital Improvement Plan (CIP) Budgets:
• Defund CIP Project 8425, a project supporting an expired Development Agreement, by $900,000 and return the appropriation to General Fund Capital (112) Unassigned Fund Balance;
• Appropriate $900,000 from the General Fund Capital (112) Unassigned Fund Balance to CIP Project 21033 (Fire Station 6); and
• Appropriate $100,000 from the Measure T Fund (111) Unassigned Fund Balance to CIP Project 21033 (Fire Station 6).
ATTACHMENTS
1. Resolution No. 24-4794 (Exchange Agreement and Joint Escrow Instruction attached as Exhibit B)