That the City Council:
A.  Approve a Purchase and Sales Agreement between the City of La Habra and Luis Carlos Ramos and Valarie Duran for the purchase of property located at 107 East Second Avenue (Assessor's Parcel Number 022-174-09) in the amount of $520,000; and

B.  Authorize the City Manager to execute Buyer Counteroffer No. 1 for the purchase of 107 East Second Avenue; and

C.  Authorize the City Manager to execute Addendum No. 1 to the Purchase and Sales Agreement for 107 East Second Avenue; and

D.  Approve a Purchase and Sales Agreement between the City of La Habra and Alicia M. and Mark E. Bryant for the purchase of property located at 106 East First Avenue (Assessor's Parcel Number 022-174-17) in the amount of $999,900; and

E.  Approve the appropriation of $1,529,900 from the General Fund to fund the purchases of 107 East Second Avenue and 106 East First Avenue, including related escrow and closing cost fees; and

F.  Authorize the City Manager to execute all related documents for the purchases of 107 East Second Avenue and 106 East First Avenue; and

G.  APPROVE AND ADOPT RESOLUTION NO. ______ ENTITLED:  A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA APPROVING THE PURCHASE OF 107 EAST SECOND AVENUE FROM LUIS CARLOS RAMOS AND VALARIE DURAN; and

H.  APPROVE AND ADOPT RESOLUTION NO. ______ ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA APPROVING THE PURCHASE OF 106 EAST FIRST AVENUE FROM ALICIA M. AND MARK E. BRYANT.

The project was reviewed pursuant to California Environmental Quality Act (CEQA) and determined to be Categorically Exempt pursuant to Section 1506 (b)(3) "Review of Exemption of the California Environmental Quality Act Guidelines,“ because the purchase of the property will have no significant effect on the environment.

Purchase of 107 East Second Avenue:
The City became aware that the property at 107 East Second Avenue, Assessor's Parcel Number 022-174-09, (Property) was listed for sale on the open market in September 2021. The list price for the property is $505,000 and is currently owned by Luis Carlos Ramos and Valarie Duran (Sellers). The parcel is 4,900 square feet and has a 748 square foot one-bedroom, one-bathroom house located on the lot. The Property is located on the north side of Second Avenue directly across the street from Brio Park and immediately adjacent to another parcel of property currently owned by the City. With the recent opening of the new splash pad water play area at Brio Park earlier this year, the acquisition of the Property will allow the City to create more offsite parking for Brio Park, as well as to support City special events that are routinely scheduled at Portola Park or on Euclid Street.

On September 30, 2021, the City submitted an offer to purchase the property at the full asking price of $505,000.  Although the Sellers did not accept the offer, the Sellers provided the City with a counteroffer on October 4, 2021, in the amount of $540,000.  The City rejected the counteroffer, and submitted a best and final offer in the amount of $520,000 on October 5, 2021, contingent upon an appraisal of the property.  On October 6, 2021, the Sellers accepted the City's best and final counteroffer in the amount of $520,000.

The City retained the services of DMD Appraisals to complete an appraisal of the property (Exhibit C).  Per the appraisal dated October 5, 2021, the appraised value of the property is $525,000.  The major terms of this proposed purchase are as follows:

The City Attorneys' Office has reviewed the Purchase and Sales Agreement, Buyer's Counter Offer and Addendum No. 1 and approved the contents of the documents.

Purchase of 106 East First Avenue
The City became aware that the property at 106 East First Avenue, Assessor's Parcel Number 022-174-17, (Property) was listed for sale on the open market in September 2021.  The list price for the property is $999,900. The property is currently owned by Alicia M. and Mark E. Bryant (Sellers). The parcel is 9,583 square feet and has a 4,213 square foot commercial building located on the lot.  The Property is located on the southeast corner of First Avenue and Euclid Street, directly across the street from the City Hall parking lot.

On October 5, 2021, the City submitted an offer to purchase the property at the full asking price of $999,900.  On October 8, 2021, the City received a copy of the executed offer acceptance from the Sellers dated October 6, 2021. The City retained the services of DMD Appraisals to complete an appraisal of the property (Exhibit D).  Per the appraisal, dated October 1, 2021, the appraised value of the property is $997,000.  The major terms are as follows:

The City Attorney's Office has reviewed the Purchase and Sales Agreement and approved the contents of the documents.

The agreed upon purchase price of 107 East Second Avenue is $520,000 and the agreed upon purchase price of 106 East First Avenue is $999,900, totaling $1,519,900.  An additional $10,000 is requested for closing cost and escrow fees; therefore, staff recommends Council approve an appropriation of $1,529,900 from the General Fund to fund the purchase of both properties and related closing costs and escrow fees. There is sufficient General Fund reserves to pay for these expenses.

LU 2.5 Places Supporting the Quality of Life