DATE: September 25, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Public Works Department
TITLE: PURCHASE AND SALE AGREEMENT WITH RANCHO MORRO SUR, LLC FOR THE PURCHASE OF A 2.74 ACRE PORTION OF LAND FOR A RECYCLED WATER RESERVOIR AND PUMP STATION
RECOMMENDATION
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Staff recommends that the City Council approve a Purchase and Sale Agreement with Rancho Morro Sur, LLC for the purchase of a 2.74 acre parcel of land located at 1315 Sleeping Indian Road in the Morro Hills area for $410,000 including closing costs for future development as a recycled water reservoir and pump station; authorize the City Manager to execute the agreement upon receipt of all supporting documents, authorize staff to open escrow, and consummate the closing of the transaction; and authorize the City Clerk to accept the Grant Deed for the property at closing.
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BACKGROUND AND ANALYSIS
The Water Utilities Department has identified a 2.74-acre portion of a 47-acre parcel of land owned by Rancho Morro Sur, LLC ("Seller") located at 1315 Sleeping Indian Road in the Morro Hills area, being a portion of Assessor Parcel Number 121-150-20-00 (the "Property"), as a property of interest to support the expansion of the City's Recycled Water System (the "Project"). Accordingly, an appraisal of the Property was obtained from the Arens Group, Inc. to determine the fair market value of the Property which was subsequently valued at $356,000. The City had previously acquired another property in South Morro Hills for the same purpose but it was later determined that existing private land use restrictions precluded such use. Authorization to declare that land as surplus, enabling its disposition, is included as a separate item on this agenda.
An offer was submitted to the Seller, based on the appraised value, to which the owner countered, proposing a sale price of $360,000, contingent on the City being responsible for all title, escrow and closing costs. The owner's counteroffer was...
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