AGENDA REPORT
REQUEST FOR CITY COUNCIL ACTION
DATE: 9/4/2019
TO: Honorable Mayor and City Council Members
FROM: Management Services-Economic Development
SUBJECT:
Title
City Council consideration of a Purchase and Sale Agreement with Corona Industrial Park, LLC for the purchase of 4,360 square feet of improved property along Rincon Street; and an appropriation of $277,389 from the Electric Utility Fund (578).
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RECOMMENDED ACTION:
Recommended action
That the City Council:
1. Approve and authorize the City Manager to execute a Purchase and Sale Agreement with Corona Industrial Park, LLC and take all related actions for the acquisition of a portion of Assessor Parcel Number 119-210-026 for the final purchase price of $277,389
2. Authorize an appropriation of $277,389 into the Department of Water and Power's Operating budget from the available working capital in the Electric Utility Fund (578).
3. Authorize the Assistant City Manager/Administrative Services Director to approve additional budgetary adjustments as needed for the acquisition of the property.
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ANALYSIS:
In early 2018, Corona Industrial Park, LLC (Developer) acquired property located at 1138 West Rincon Avenue, commonly referred to as the former Dairy Farmers of America Cheese Plant, for the purpose of developing three industrial buildings totaling approximately 731,000 square feet. Shortly after the Developer acquired the property the City of Corona Department of Water and Power approached the Developer expressing an interest in acquiring a small portion of property at the north west corner of the site for construction of a City owned power distribution facility, which will serve as a wholesale distribution access tariff (WDAT) connection point. The Developer expressed interest in selling a portion of the property and a City commissioned appraisal performed in February of 2018 valued the 4,360 square foot parcel at $32,000.
The City further negotiated with the Developer ...
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