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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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Board of Supervisors
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DATE:
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November 16, 2006
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BOARD MEETING DATE:
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December 5, 2006
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SPECIAL NOTICE/HEARING:
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3 week Publication
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VOTE REQUIRED:
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4/5ths
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TO:
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Honorable Board of Supervisors
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FROM:
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Steve Alms, Manager, Real Property Division
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SUBJECT:
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Resolution Authorizing the Purchase of Real Property located at 525 Marshall Street in Redwood City from the Lebsack Trust (C.O.P. 2687)
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RECOMMENDATION
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1)
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Adopt a Resolution:
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a.
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Authorizing the County Manager to execute the option to purchase real property at 525 Marshall Street for $1,000,000 pursuant to that certain Office Lease and Option to Purchase Agreement (the “Agreement”) dated July 19, 2006, and
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b.
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Authorizing the County Manager or his designee to sign escrow instructions and execute any and all notices, consents, approvals, deeds, certificates of acceptance and documents in connection with the purchase of the real property located at 525 Marshall Street, and
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2)
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Approve an Appropriation Transfer Request (ATR) transferring $1,000,000 from General Fund Reserves to Capital Projects-Operating Transfer Out in Non-Departmental Services and making corresponding appropriations to Operating Transfers In and Fixed Assets-Land in the Capital Projects Fund.
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VISION ALIGNMENT
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Commitment: The transfer keeps the commitment of responsive, effective and collaborative government.
Goal 20: Government decisions are based on careful consideration of future impact rather than temporary relief or immediate gain. The purchase of the subject property will help meet the need for future construction at County Center.
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BACKGROUND
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At the direction of this Board, the Real Property Division pursued the acquisition of 525 Marshall Street in Redwood City as a portion of the site proposed for development of a new County office building. The property consists of a parcel of approximately 2,780 square feet on APN: 052-344-110, improved with a single-story office building of approximately 2,580 square feet (the “Property”). The Property is zoned CB, Central Business District, under the jurisdiction of the City of Redwood City.
By Resolution No. 68144 dated July 18, 2006, this Board authorized and directed the execution of a lease agreement with an option to purchase. The purchase price set forth in that Agreement is $1,000,000 with all rent paid by County during the lease term credited toward the purchase price. The purchase price and terms are supported by an internal appraisal and due diligence is complete. The County is responsible for costs of closing the transaction, including title insurance, escrow fees, transfer tax and recording fees.
The Clerk of this Board has published a Notice of Public Hearing of the intent to purchase the Property once a week for a period of three weeks in the San Mateo Times.
Pursuant to Government Code Section 65402, Redwood City has been notified of the proposed purchase and made a finding that the acquisition of the building conforms with the City’s General Plan.
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DISCUSSION
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As set forth in the Agreement, the County must exercise the purchase option prior to the expiration of the lease on January 19, 2007. Escrow instructions will be executed to consummate the transaction.
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FISCAL IMPACT
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The ATR will facilitate the transfer of $1 million from Non-Departmental General Fund Reserves to the Capital Projects Fund for the acquisition of 525 Marshall Street.
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