REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Kellee Fritzal, Deputy Director of Economic Development
Subject:
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Authorize the Sale of City-Owned Real Property Located at 15311 Pipeline Lane for $2,744,000
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Statement of Issue:
Authorize the sale of City-owned real property located at 15311 Pipeline Lane (Pipeline Property) to Steve Chalabian and Jackie Jernigan in the amount of Two Million Seven Hundred Forty-Four Thousand Dollars ($2,744,000). The City will also pay applicable escrow and commission fees.
Financial Impact:
The City's total costs to acquire the Pipeline Property was $2,748,176. As currently structured, the proposed sale of the Pipeline Property will result in approximately $2,656,400 net revenue to the city (this includes the City paying the estimated escrow costs of $19,000 and commission costs of $68,600).
The City has a tenant renting space at the Pipeline Property which has earned $12,481 in rent revenue to the City. Factoring rent in the proposed sale of the Pipeline Property will result in a cumulative estimated net loss of $79,295.
Proceeds from the sale of the property will be used to reimburse the City for the initial purchase of the Pipeline Property. Those funds include the Redevelopment Dissolution Assignment (Fund 100), the Community Development Block Grant Rehabilitation Loans (Fund 215), the Community Development Block Grant Program Reallocations & Cumulative Project Savings (Fund 239), and Residual Receipts (Fund 233).
Recommended Action:
recommendation
A) Authorize the sale of the Pipeline Property to Steve Chalabian and Jackie Jernigan for $2,744,000; and
B) Authorize and allocate funds for the payment of escrow fees associated with the transaction for an amount not to exceed $19,000; and
C) Authorize and allocate funds for the payment of associated commission fees in an amount not to exceed 2.5% of the pr...
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