Approve the acquisition of real property at 3817 1st Street, Dunnigan, Assessor's Parcel Numbers APN 051-224-001, 051-242-001, and 051-242-002, for $500,000, adopt a related budget resolution, and authorize staff to sign an Offer Agreement and take all related actions to complete the transaction. (No general fund impact) (Pistochini)

Approve the acquisition of real property at 3817 1st Street, Dunnigan, Assessor's Parcel Numbers APN 051-224-001, 051-242-001, and 051-242-002, for $500,000, adopt a related budget resolution, and authorize staff to sign an Offer Agreement and take related actions to complete the transaction.

The United States Government owns three contiguous parcels (the "Property") in central Dunnigan (old town Dunnigan) that have been used by the Dunnigan Water District ("DWD") as part of the US Bureau of Reclamation's ("BOR") Central Valley Project.  DWD recently informed BOR of its intention to consolidate operations and thus it no longer needs the Property.  BOR contacted the US General Services Administration ("GSA"), the federal government's real estate agency, to begin surplus procedures.  GSA, after determining that no other federal agency is interested in the Property, contacted state and local agencies in the area to determine potential interest in the Property. 

The County's General Services Department ("GSD") reviewed this opportunity and began discussions with GSA about the Property for use consistent with the County's 2030 General Plan and the 2024 Dunnigan Community Plan.  As noted, the Property is centrally located in Dunnigan. GSD sees the Property as a potential low-cost way to provide a range of options, such as community parkland, a future library branch, and/or in-person government services to the community. The Board was briefed on the proposed acquisition of the property at a prior Board meeting.

The Property consists of three parcels totaling approximately 2.8 acres in central Dunnigan.  The property includes three structures: a 1934-era 3,259 square foot building, a 1957-era 2,364 square foot building, and a 144 square foot well/water pump building. While the 1934 structure presents challenges and should be removed, the 1957 structure is in usable condition, and the well is functional and renewed in 2012.  The County's real estate advisor estimated the value to be approximately $590,000 to $700,000.  GSA is offering the County the property for $500,000.  No restrictions will be placed on the property, except that the County cannot sell the property for a period of three years after purchasing it.

If acquired, the Property could help the County work towards fulfilling the following 2024 Dunnigan Community Plan policies that were approved by the Board of Supervisors on July 23, 2024:

Policy D-LU-5: Target Old Town and the Hardwood Grove for 7 acres of parks and sports fields to meet the General Plan requirement of 5 acres of neighborhood parks per 1,000 residents.  The Property has sufficient acreage and layout for use as a community park.  Currently, there is less than 0.5 acres of community parkland in this community.  Dunnigan is recognized in the California State Parks' Outdoor Equity Program Tool as a Severely Disadvantaged Community, which may add additional weight and consideration in future state park grant opportunities.
Policy D-EPS-6: Establish a Sheriff's substation and ambulance service in the community to shorten response times.  The 1957 building could be repurposed in whole or in part into a Sheriff's substation.  Additionally, with additional planning, a new structure could be purpose-built to achieve this policy goal.
Policy D-EPS-8: The County shall ensure that new residential subdivisions within the Pierce Unified School District provide for additional student population with a focus on establishing a local school in Dunnigan to serve the community and neighboring region.  The 1957 building could be used for a small library branch that could provide some additional educational resources to bridge the educational services gap.

GSD collaborated with the Board of Supervisors District 5 Office, the County Administrator's Office, the County Counsel's Office, the Sheriff's Office, the Department of Community Services, and the Department of Financial Services.  Additional negotiation and collaboration occurred with the United States General Services Administration, the United States Bureau of Reclamation, and the Dunnigan Water District / Reclamation District 108.