REPORT TO THE CITY COUNCIL
June 28, 2018
FROM: MARLENE MURPHEY, Executive Director
Successor Agency of the Redevelopment Agency
SUBJECT
Title
Actions pertaining to approximately 4.79 acres located at 1153 Fresno Street (APN 467-310-12T):
1. Adopt a finding of Categorical Exemption pursuant to Section 15301 of California Environmental Quality Act Guidelines
2. Approve a Purchase, Sale and Settlement Agreement in the amount of $1,912,915 for sale of the Kearney Palms Shopping Center Parking Lot to Kearney Palms, LLC. (Council District 3)
Body
EXECUTIVE SUMMARY
Staff recommends adoption of the finding of Categorical Exemption pursuant to Section 15301 of CEQA and approval of the Purchase, Sale and Settlement Agreement in a total amount of $1,912,915 for sale of the Kearney Palms Shopping Center Parking Lot (APN 467-310-12T) to Kearney Palms, LLC.
BACKGROUND
The Kearney Palms Shopping Center Parking Lot (Parking Lot) is part of an enforceable obligation pursuant to a Disposition and Development Agreement (DDA) and Covenants for Public Parking, Lease, Operation and Maintenance and Option to Purchase Agreement (Parking Agreement) between the Successor Agency (Agency) and Thomas Beggs, Managing Member of Kearney Palms, LLC (Developer). The Parking Lot of approximately 4.79 acres is generally located at the northeast corner of Fresno and "B" Streets within and serving the Kearney Palms Shopping Center. Kearney Palms, LLC currently owns 7 of the 10 parcels that form the shopping center. Besides the Parking Lot, one additional parcel is owned by the City (police substation) and the last is owned and operated as a Burger King. A recent appraisal dated May 10, 2018, values the parcel at $791,000.
DDA & Parking Agreement Highlights. The Parking Agreement and the DDA include provisions pertinent to the sale of the Parking Lot briefly summarized below:
* The Parking Lot is to be used solely as a public parking lot without charging for its use. The develo...
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