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HomeMy WebLinkAbout2026-09-22 - AGENDA REPORTS - SC ELEMENTARY SCHOOL SITE ACQUISITIONO Agenda Item: 1 CITY OF SANTA CLARITA W AGENDA REPORT NEW BUSINESS CITY MANAGER APPROVAL: DATE: September 22, 2026 SUBJECT: ACQUISITION OF THE SANTA CLARITA ELEMENTARY SCHOOL SITE, 27177 SECO CANYON ROAD DEPARTMENT: City Manager's Office PRESENTER: Kenneth W. Striplin RECOMMENDED ACTION City Council: 1. Approve a Purchase and Sale Agreement with the Saugus Union School District to acquire the former Santa Clarita Elementary School site, comprising of 9+/- acres of real property located in Saugus, Assessor Parcel Number 2810-032-902, at a cost of $13,000,000 and approve $8,000 for escrow and due diligence fees. 2. Appropriate one-time funds in the amount of $13,008,000 from the Facilities Fund (Fund 723) to Property Acquisition Expenditure Account (7239008-520104). 3. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney review. BACKGROUND The City of Santa Clarita (City) and Saugus Union School District (District) agreed in principle to convey the former Santa Clarita Elementary School site at 27177 Seco Canyon Road (Assessor's Parcel No. 2810-032-902) (the Property) from the District to the City for $13,000,000. The Property is a former kindergarten -through -sixth -grade public school campus. The District operated the school for approximately 64 years until it closed on June 8, 2024, following declining enrollment and seismic -safety concerns. On March 26, 2024, the District's Governing Board established an Asset Management Advisory Committee under the surplus -property provisions of the Education Code to advise the Board on Page 1 Packet Pg. 10 O potential uses and disposition of the Property. The City expressed interest in the Property since the disposition process began. In January 2026, the City submitted a nonbinding term sheet to the District proposing an acquisition at fair market value. The District's Governing Board authorized continued discussions. Those discussions culminated in the City and District negotiating teams agreeing to terms on September 9, 2026. This report summarizes the proposed acquisition and the steps and timeline necessary to convey the Property to the City for the City Council's consideration. Analvsis The City's Interest in Acquiring the Property The Property is a ±9-acre site in the Saugus area of the City. Acquiring it would allow the City to retain a large, centrally located public parcel for community -oriented reuse. Potential uses for the site could include a community center, a library, a park extension, or another community facility. Community members who took part in the District's public process generally supported recreational, educational, civic, or all -ages community uses and have opposed converting the campus to residential development. Acquisition by the City would keep options open for a community facility. The September 9, 2026 Agreement The negotiations culminated in an agreement on September 9, 2026, confirming the parties' understanding of the terms of the acquisition. The letter agreement provides the following: • Structure and price: The City will acquire the Property from the District for $13,000,000. The transaction is structured as an acquisition of exempt surplus land under the Education Code and the Surplus Land Act. The District will initiate and complete the conveyance, and the City will pay the purchase price and cooperate with the District throughout the process, contingent upon clear title and environmental report. • Escrow and feasibility: The City will deposit the $13,000,000 purchase price into escrow. The City may review the Property during a 30-day feasibility period that begins when escrow opens, and will give the District notice of its approval. Escrow must close no later than 30 days after the City gives that notice. Escrow and due diligence costs are estimated to be $8,000. • Conditions and no binding obligation: The District's obligations depend on approval by the California Department of Housing and Community Development (HCD) and by the District's Governing Board. Neither party will be bound until both parties sign and deliver an executed Purchase and Sale Agreement. Steps Necessary to Convey the Property As the property transfer is between local agencies, the Property qualifies as "exempt surplus land" under the Surplus Land Act. That classification streamlines the disposition: once land is validly declared exempt surplus land, the Surplus Land Act's notice -of -availability and good - Page 2 Packet Pg. 11 O faith -negotiation requirements, including its 90-day negotiation period, do not apply. The following steps remain necessary to convey the Property to the City: 1. City Council approval. The City Council must approve the acquisition and authorize the City Manager to execute the Purchase and Sale Agreement and any related documents. 2. District exempt -surplus -land resolution and Governing Board approval. At a regular public meeting, the District's Governing Board must adopt a resolution declaring that the Property is exempt surplus land, supported by written findings, and approving the Purchase and Sale Agreement. 3. Notice to HCD and HCD approval. At least 30 days before disposing the Property, the District must give HCD written notice of its declaration and findings. HCD then has 30 days to review the matter. If HCD does not object within 30 days, the District may proceed. 4. Open escrow. The District must open escrow within seven days after it receives HCD approval. 5. City feasibility review. The City may review the Property during a 30-day feasibility period that begins when escrow opens, and will give the District notice of its approval. 6. Close escrow. Escrow must close not later than 30 days after the City gives its approval notice. Title to the Property then transfers to the City. Assuming HCD raises no objections during its review, the acquisition could close approximately four months after the District's Governing Board approves the Purchase and Sale Agreement. ALTERNATIVE ACTION Other action as determined by the City Council. FISCAL IMPACT Upon approval of the recommended actions, $13,008,000 will be appropriated to the Property Acquisition Expenditure Account (7239008-520104) for the acquisition of the former Santa Clarita Elementary School site and associated due diligence costs. Page 3 Packet Pg. 12