A.  Approve a Purchase and Sales Agreement between the City of La Habra and Jack M Sussoev and Denise D Sussoev Family Trust Dated March 15, 2022, for the property located at 216 South Euclid Street (Assessor's Parcel Number 022-174-07) in the amount of $850,000;

B.  Approve an appropriation of $875,000 from the General Fund property acquisition reserve to fund the Purchase and Sales Agreement between the City of La Habra and Jack M Sussoev and Denise D Sussoev Family Trust Dated March 15, 2022, for the purchase of the subject property and pay for the related escrow fees;

C.  Authorize the City Manager to sign all related documents to execute the purchase; and,

D.  APPROVE AND ADOPT RESOLUTION NO. CC 2024-__ ENTITLED:  A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA, CALIFORNIA, APPROVING THE PURCHASE OF 216 SOUTH EUCLID STREET FROM JACK M SUSSOEV AND DENISE D SUSSOEV FAMILY TRUST DATED MARCH 15, 2022.

Staff recommends that the City Council approve the purchase of the property located at 216 South Euclid Street (Property), outlined in green below in Exhibit 1, for the purpose of expanding public facilities and services. The property is currently owned by the Sussoev Family Trust and the proposed sale of the property was initiated by the property owner's realtor who contacted City staff inquiring if the City would be interested in purchasing the subject property. The property is 4,356 square feet and has two, two-bedroom, one-bathroom residential units located on the parcel. An appraisal completed in January 2024 valued the property at $800,000. During negotiations, the owner proposed a sale price of $850,000 and that all closing costs to be paid for by the City.  After consulting with the City Attorney's office, staff proposed a purchase price at $850,000, and that both parties be responsible for their own escrow and closing costs, which the property owner has agreed to.

The City currently owns the vacant parcels immediately adjacent to the subject property on the south side (222 South Euclid Street) and to the east (107 East Second Avenue), as well as the former electronic repair shop to the north (106 East First Avenue) and the former chiropractic office across the street to the west (205-211 East Euclid Street).  Additionally, the subject property is in close proximity to City Hall to the north, Brio Park to the south, and Portola Park to the west, across the street.
 
Exhibit 1: Subject Property


The property is currently occupied by tenants in both units. If City Council approves the purchase of the property, staff will engage with a relocation specialist to provide relocation benefits and assistance to the tenants. Generally, relocation includes providing funding for reasonable moving costs, assistance in finding equal housing, providing some funding to cover differences in rent for specified periods of time and funds to ensure tenants have benefits such as initial move-in expenses. The tenants would receive a minimum of 90-day notice prior to being relocated. A relocation specialist will ensure that staff follow all applicable requirements for relocation and that the tenants receive all required and necessary benefits. Staff will submit a funding request for relocation benefits at a later date, once final benefits and amounts have been determined. Staff has confirmed that the property owner has notified the tenants that the City may purchase this property and that, if a purchase is approved by the City Council, City staff will be in contact with them to begin the relocation process, which would include relocation assistance and benefits.

If approved by City Council, the City will enter into a Purchase and Sales Agreement (Agreement) to acquire the Property for a sale price of $850,000. Under the terms of the Agreement, the property owner will pay all the seller's closing costs and the City will pay all the buyer's closing costs. To initiate escrow, the City will deposit $25,000 into an escrow account with Prominent Escrow Services, Inc., in Fullerton, California, and escrow is anticipated to close by December 6, 2024.

If approved, the acquisition of this property will allow the City to provide an expanded area for public parking on Euclid Street and along 2nd Avenue as an expansion of public facilities and services in that area. This portion of Euclid Street is used for major public events and the parking lot will also support activities and events at Brio Park, which currently does not have any onsite parking and is heavily utilized during the summer months when the splash pad is open to the public. The use of the property is for the common benefit of the City in compliance with Government Code Section 37750 et seq.

The proposed acquisition was reviewed pursuant to the guidelines of the California Environmental Quality Act (CEQA) and determined to be exempt pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines because it can be seen with certainty that there is no possibility that the activity may have a significant impact on the environment. The purchase of the property is limited to a financial transaction, which will not have a significant impact on the environment.
 
In accordance with Health and Safety Code Section 65402, the City of La Habra Planning Commission considered the purchase of the Property at its regularly scheduled meeting held on November 12, 2024, and determined the purchase of the Property is consistent with the General Plan.

The cost to purchase the property is $850,000. Escrow and title fees are estimated at approximately $10,000, however, final costs will not be known until escrow is opened, subject to City Council approval of the purchase. Therefore, staff is requesting an appropriation of $25,000 to ensure all escrow and closing costs are funded. The total request for funding for the acquisition of this property is $875,000 and there are sufficient dedicated General Fund reserves set-aside for property acquisition to appropriate funding for the purchase of the property and to pay for the City's portion of escrow, closing and title fees.