City Council/Financing Authority Meeting


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  AGENDA ITEM NO. L.5.       
Meeting Date: 09/21/2021  

SUBJECT:
Consideration of (i) an amendment to the Purchase and Sale Agreement with Redlands Community Investment Corporation related to the acquisition of 300 E. State Street; (ii) an Assumption and Assignment Agreement with Redlands Community Investment Corporation; (iii) Resolution No. 8261 authorizing the City Manager to amend and/or terminate tenant lease agreements related to the subject property, and determination that the agreements and resolution are exempt from environmental review pursuant to Section 15061(b)(3) of the state’s guidelines implementing the California Environmental Quality Act (Facilities and Community Services Director Boatman)
MOTION(S):

If the City Council determines that staff’s recommendation is appropriate, the following motions are provided:
  1. "I move to determine the agreements and Resolution No. 8261 are exempt from environmental review pursuant to Section 15061(b)(3) of the state’s guidelines implementing the California Environmental Quality Act; and
     
  2. I move to approve the amendment to the Purchase and Sale Agreement and the Assumption and Assignment Agreement, with Redlands Community Investment Corporation; and
     
  3. I move to approve Resolution No. 8261.
RECOMMENDATION:

Staff recommends that the City Council determine that approval of the agreements are exempt from further environmental review pursuant to Section 15061(b)(3) of the state’s guidelines implementing the California Environmental Quality Act; approve the amendment to the Purchase and Sale Agreement with Redlands Community Investment Corporation for the operty located at 300 E. State Street, approve the Assumption and Assignment Agreement for the Service Contracts related to the acquisition of the subject property and approve Resolution No. 8261."
DISCUSSION:

On June 15, 2021, the City Council approved a Purchase and Sale Agreement with Redlands Community Investment Corporation for the acquisition of the property located at 300 E. State Street. The amendment to the Purchase and Sale Agreement has been included with this report to extend the close of escrow to September 30, 2021.  It is the City's desire to provide continuity of service to the existing tenants within the property once the sale is complete. To facilitate this objective, an Assumption and Assignment Agreement has been prepared which will allow the City to assume the existing service contracts and tenants agreements. In addition, a resolution has been included with this report which will allow the City Manager, or his or her designee, to amend or terminate existing tenant lease agreements. Any new tenant lease agreements will be brought before the City Council for consideration.
ALTERNATIVES:

The City Council may elect to approve some or none of the agreements and direct staff accordingly.
STRATEGIC PLAN:

Supports Focus Area C - Infrastructure
SUBMITTED BY:
Chris Boatman, Facilities and Community Services

RECOMMENDED BY:
Charles M. Duggan Jr., City Manager

REVIEWED BY:
Daniel J. McHugh, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director

PREPARED BY:
Tricia Swope, Manager, Facilities and Community Services
  

Fiscal Impact
Fiscal Year: FY 2021-22
Discussion:
Any expenses incurred as a result of entering into an agreement with the management services company will be offset by corresponding revenues from the existing tenant leases. The agreement provides that the management company will pay the City net proceeds from rent revenue after operating expenses have been paid. Any expenditures that exceed amounts allocated within the Building Maintenance Division budget for Fiscal Year 2021-22 as approved by City Council will be brought to the City Council for consideration at a future meeting.
Attachments
A. First Amendment to Purchase and Sale Agreement with RCIC
B. Assignment and Assumption Agreement
C. Resolution No. 8261


    

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