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HomeMy WebLinkAbout2001-10-09 - AGENDA REPORTS - RUETHER BUSINESS PARK PURCHASE (2)CITY OF SANTA CLARITA AGENDA REPORT NEW BUSINESS City Manager Approva Item to be presented by: Steve Stark DATE: October 9, 2001 SUBJECT: PURCHASE OF RUETHER AVENUE BUSINESS PARK (RABP) FOR A PUBLIC PARK (38 ACRES) DEPARTMENT: City Council RECOMMENDED ACTION 1) City Council approve the purchase of the 38 -acre Ruether Avenue Business Park Property, pending authorization in closed session for a purchase price to be determined upon direction of Council. 2) Appropriate $2,300,000 from facility replacement fund balance to transfer out account number 604-9501. Increase estimated revenues in transfers in account number 001-6810 by $2,300,000, and appropriate $2,300,000 to account number P3003001-8620. Secure the balance of the RABP purchase with a tax-exempt note to be held by the owner. 2) Authorize the City Manager or designee to execute all documents subject to City Attorney approval. BACKGROUND During the budget study sessions in June of this year, the City Council directed staff to explore the option of purchasing the 38 -acre RABP for the City. On August 28, the City Council authorized staff to enter into formal negotiations with the owners of the property. As a result, staff was directed by the City Manager to complete all the due diligence necessary in order to prepare a reasonable offer to the business park owners. Since then, the City Manager met with the owners on several occasions to discuss a purchase price. A final negotiated price was secured and is expected to be complete, pending the City Council's closed session discussions tonight. ALTERNATIVE ACTION Other action as determined by the City Council. n; �•,y;FtL9 tem: Agenda I.�� PURCHASE OF RABP October 9, 2001— Page 2 FISCAL IMPACT Funds for the purchase of the property were identified in the City's facility replacement fund with the remaining balance coming from a tax-exempt note that the RABP owner will hold from the City. ATTACHMENTS None. SS:FO:hds council\RABPPurch.n.d,