City of Roseville violated the California Surplus Land Act (SLA) regarding Phillip Road Site

City of Roseville violated the California Surplus Land Act (SLA) regarding Phillip Road Site

The California Department of Housing and Community Development (HCD) found that the City of Roseville (“City”) violated the California Surplus Land Act (SLA) by selecting a developer in 2020 and entering into a PSA without first complying with the requirements of the SLA in place in 2020. Since then, the City failed to take the necessary steps to come into compliance with the SLA by either issuing a Notice of Availability (NOA) to all required entities or declaring the property “exempt surplus land.”

Here is link to HCD’s Notice of Violation (NOV): https://savereasonfarms.org/wp-content/uploads/2024/01/roseville-nov-sla-120423.pdf

Under Government Code section 54230.5, subdivision (a)(1), the City has 60 days from the date of this NOV to cure or correct the violations noted herein. The City may have multiple avenues it can pursue to comply with the SLA, and HCD invites the City to further discuss these options. In the meantime, HCD urges the City to suspend any further actions to dispose of the Property.

If the City does not cure or correct all such violations by February 4, 2024, and elects to proceed with the disposition of the Property, a penalty will be assessed to the City equal to 30 percent of the final sales price. (Gov. Code, § 54230.5, subd. (a)(1).)

HCD may also pursue additional remedies authorized under Government Code section 65585 and Government Code section 65585.1.

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City of Roseville, California

City Manager executed Second Amendment to Option and Purchase and Sale Agreement (PSA) with Panattoni for Phillip Road Site

City Manager executed Second Amendment to Option and Purchase and Sale Agreement (PSA) with Panattoni for Phillip Road Site

City of Roseville – Council Communication | Meeting Date: 10/19/2022

On October 19, 2022, City Manager executed Second Amendment to Option and Purchase and Sale Agreement (PSA) with Panattoni for Phillip Road Site.

BACKGROUND
On March 3, 2021, City Council approved a Memorandum of Option and Purchase and Sale Agreement (PSA) with Panattoni Development Company (Panattoni) to entitle, sell and develop a future jobs center, known as the Roseville Industrial Park. The property at 6382 Phillip Road is located within a portion of the Reason Farms property, and is an approximately 241 acre (with 176.5 developable acres) vacant greenfield parcel. The City acquired Reasons Farms in order to develop the Pleasant Grove Retention Basin Project. Since the Pleasant Grove Basin Project only required a portion of the property, it was determined the remaining portion of land would be available for other uses.

The PSA initially allowed Panattoni one year to conduct its due diligence with respect to the property and complete the entitlement process.

RESOLUTION NO. 22-395

APPROVING A SECOND AMENDMENT TO OPTION AND PURCHASE AND SALE AGREEMENT, BY AND BETWEEN THE CITY OF ROSEVILLE AND PDC SACRAMENTO LPIV, LLC, AND AUTHORIZING THE CITY MANAGER TO EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE

WHEREAS, a Second Amendment to Option and Purchase and Sale Agreement for the unimproved property located at 63 82 Phillip Road, Roseville, CA, by and between the City of Roseville and PDC Sacramento LPIV, LLC, has been reviewed by the City Council; and

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roseville that said Second Amendment is hereby approved and that the City Manager is authorized to execute it on behalf of the City of Roseville.

PASSED AND ADOPTED by the Council of the City of Roseville this 19th day of October, 2022, by the following vote on roll call:

AYES COUNCILMEMBERS: Houdesheldt, Alvord, Roccucci, Bernasconi
NOES COUNCILMEMBERS: None
ABSENT COUNCILMEMBERS: Mendonsa

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City of Roseville, California

City Manager executed First Amendment to Option and Purchase and Sale Agreement (PSA) with Panattoni for Phillip Road Site

City Manager executed First Amendment to Option and Purchase and Sale Agreement (PSA) with Panattoni for Phillip Road Site

City of Roseville – Council Communication

Meeting Date: 11/17/2021

Staff recommended that the City Council adopt a resolution authorizing the City Manager to execute a First Amendment to Option and Purchase and Sale Agreement with PDC Sacramento LPIV, LLC for property located at 6382 Phillip Road.

BACKGROUND
The property at 6382 Phillip Road, referred to as the Roseville Industrial Park, is located within a portion of the Reason Farms property, and is an approximately 236.26-acre (with 191.08 developable acres) vacant greenfield parcel. While the City acquired Reasons Farms in order to develop the Pleasant Grove Retention Basin Project, it was determined that there would be available land for other uses of the property. Since 2006, following an analysis of the 6382 Phillip Road property, it has been envisioned to be an industrial park and jobs center that would yield property and sales tax to the City.

On March 3, 2020, City Council approved a Memorandum of Option and Purchase and Sale Agreement (PSA) with Panattoni Development Company to sell, entitle and develop a future jobs center, known as the Roseville Industrial Park. Under the Agreement, Panattoni will fully entitle the property including conducting the CEQA analysis and rezoning efforts, at their expense. Additionally, Panattoni will develop the Master Infrastructure Plan and bring all needed utilities and roadways to the property. The Agreement allowed Panattoni one year to conduct its due diligence with respect to the property and complete the entitlement process to allow for industrial development. While the site has been envisioned as a future major jobs center for the city, prior to Council approval in March 2021, no studies to provide utilities or other infrastructure to service the site had been conducted. Since March, staff and Panattoni have worked diligently on the entitlement process. However, the process to entitle, re-zone and produce a Master Infrastructure Plan for a greenfield site is complicated and the twelve-month timeframe identified in the agreement is not adequate to complete the necessary technical studies, CEQA analysis and to allow for the required public review process. City staff and Panattoni agree an extension of time is needed to meet the requirements outlined within the PSA and recommend City Council approve an eight-month extension to the original twelve-month Due Diligence Period. With this extension the Due Diligence Period will expire on November 1, 2022.

Except as set forth in this First Amendment, all of the terms and provisions of the Agreement shall remain unmodified and in full force and effect.

FISCAL IMPACT
Approval of this Amendment will result in future property sales that will generate revenue for the Strategic Improvement Fund during each phase of property purchase. The first phase of 35 acres is expected to result in $1,243,165 ($34,519/acre). Upon approval of entitlements, staff will recommend approval from the City Council for a budget adjustment for the first and future phase acquisitions.

ENVIRONMENTAL REVIEW
The proposed project involves the sale of surplus property not located in an area of statewide, regional or area-wide concern. This activity has been determined to be categorically exempt from CEQA as a Class 12 Exemption (State CEQA Guidelines Section 15312). An Exemption was prepared when the project was approved by City Council on March 20, 2021, and no further CEQA action is required.

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City of Roseville, California

City of Roseville signed industrial development agreement with Panattoni >> City of Roseville Resolution No. 21-080

City of Roseville signed industrial development agreement with Panattoni >> City of Roseville Resolution No. 21-080

City of Roseville – Council Communication

Meeting Date: 3/3/2021

Staff recommended that the City Council adopt a resolution authorizing the City Manager to execute an Option and Purchase and Sale Agreement and a Memorandum of Option and Purchase and Sale Agreement with PDC Sacramento LPIV, LLC, authorizing the City Clerk to record the Memorandum of Option Agreement, and finding that disposition of the property located at 6382 Phillip Road is in the City’s best interest.

The key points of the Purchase and Sale Agreement (PSA) are summarized below:

  • City agrees to sell to Buyer the 236.26-acre Property at the appraised market rate value of $34 ,519/acre.
  • City agrees that Buyer may acquire the Property in phases over a ten-year period. The increments of acreage for the phases will be at least 35 acres each and the appraised market rate value used for the purchase of the initial phase will be adjusted upward for each subsequent phase based on a specified Consumer Price Index set forth in the Purchase and Sale Agreement.
  • Within the first 90 days after the effective date, Buyer may give the City a written notice that Buyer has elected to acquire the first phase of the Property before obtaining all entitlements. If Buyer exercises the option to acquire a phase prior to obtaining the entitlements and then subsequently is unable to obtain the entitlements on economic terms acceptable to Buyer in its sole and absolute discretion, the Buyer will have the option to provide written notice to the City that Buyer is electing to reconvey the phase property back to the City on the same terms and condition upon which the Buyer purchased the phase from the City and the City will be obligated to re-purchase the phase.
  • Within five (5) business days of providing the City with the option notice as to the applicable phase, Buyer shall deposit $50,000 with the title company. The earnest money shall be credited toward the purchase price at closing.
  • The phases will occur every two years. The Buyer has the option to extend the two-year period for each phase by sending a written notice and depositing an additional deposit of $50,000 with the Title Company which additional deposit will be applicable to the purchase price for that particular phase.
  • Buyer shall have one year to conduct its due diligence with respect to the property and entitling the property for industrial development. Buyer may extend the due diligence period for two additional periods of 60 calendar days each by providing City with written notice prior to the expiration of the period then in effect and depositing into escrow $50,000, which shall be non-refundable but applicable to the purchase price for each extension period.
  • Buyer will fully entitle the property including conducting the CEQA analysis and rezoning efforts, at their expense. City reserves final discretion and approval as to entitlements and as to all related matters, including CEQA review, in connection therewith.
  • Buyer will develop the Master Infrastructure Plan and bring all needed utilities and roadways to the property.

Future development will require approval of Planning Department entitlements including a Rezone and General Plan amendment for industrial use, a major project permit, and environmental review. These entitlements will require review and approval by the Planning Commission and City Council. During the entitlements phase, the Buyer will communicate with adjacent landowners and make reasonable efforts to coordinate development.

FISCAL IMPACT
Approval of a Purchase and Sale Agreement will result in future property sales that will increase the Strategic Improvement Fund (SIF) fund balance during each phase of property purchase. The first phase of 35 acres is expected to result in $1,243,165 ($34,519/acre). Upon approval of entitlements, staff will seek approval from the City Council with a request for a budget adjustment for first and future phase acquisitions.

ENVIRONMENTAL REVIEW
The proposed project involves the sale of surplus property not located in an area of statewide, regional or area-wide concern. This activity is categorically exempt from CEQA as a Class 12 Exemption (State CEQA Guidelines Section 15312). The Exemption has been prepared and no further CEQA action is required.

RESOLUTION NO. 21-080
APPROVING AN OPTION AND PURCHASE AND SALE AGREEMENT AND A MEMORANDUM OF OPTION AND PURCHASE AND SALE AGREEMENT, BY AND BETWEEN THE CITY OF ROSEVILLE AND PDC SACRAMENTO LPN, LLC, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THEM AND ANY RELATED DOCUMENTS ON BEHALF OF THE CITY OF ROSEVILLE

WHEREAS, the property at 6382 Phillip Road, APN 017-101-008-000 (“subject property”), is referred to as the Roseville Industrial Park and is an approximately 236.26-acre vacant parcel, located north of a planned six-lane arterial extension of Blue Oaks Boulevard,
west of Westbrook Boulevard; and

WHEREAS, the site is currently vacant and was declared as surplus property by the City Council on November 20, 2019; and

WHEREAS, PDC Sacramento LPIV, LLC completed a conceptual site plan for the area south of Pleasant Grove Creek; and

WHEREAS, at this time, the City wishes to move forward with the sale of a portion of the property at the appraised market rate value of $34,519/acre; and

WHEREAS, City agrees that PDC Sacramento LPIV, LLC may acquire the subject property in phases over a ten-year period; and

WHEREAS, the increments of acreage for the phases will be at least 35 acres each and the appraised market rate value used for the purchase of the initial phase will be adjusted upward for each subsequent phase based on a specified Consumer Price Index set forth in the Option and Purchase and Sale Agreement.

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Roseville that the disposition of the surplus property located at 6382 Philip Road is in the City’s best interest.

BE IT FURTHER RESOLVED that the City Council of the City of Roseville authorizes the City Manager or designee to execute an Option and Purchase and Sale Agreement, a Memorandum of Option and Purchase and Sale Agreement, and any related documents for the subject property, on behalf of the City of Roseville.

BE IT FURTHER RESOLVED that the City Clerk is hereby directed to record the Memorandum of Option and Purchase and Sale Agreement with the Placer County Recorder’s Office.

PASSED AND ADOPTED by the Council of the City of Roseville this 3rd day of March, 2021., by the following vote on roll call:

AYES COUNCILMEMBERS: Alvord, Roccucci, Mendonsa, Bernasconi
NOES COUNCILMEMBERS: Houdesheldt
ABSENT COUNCILMEMBERS: None

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City of Roseville, California

Exclusive Right to Negotiate Agreement (ERNA) | Roseville City Council and Panattoni Development Corporation

Exclusive Right to Negotiate Agreement (ERNA) | Roseville City Council and Panattoni Development Corporation

City of Roseville – Council Communication Meeting Date: 11/18/2020

City Council adopted a resolution authorizing the City Manager to execute the Exclusive Right to Negotiate Agreement (ERNA) with Panattoni Development Corporation (aka PDC Sacramento LPIV, LLC) for purchase and development of the property at 6328 Phillip Road in Roseville, CA.

Exclusive Right to Negotiate Agreement (ERNA) | Roseville City Council and Panattoni Development Corporation

The purpose of an Exclusive Right to Negotiate Agreement (ERNA) is to provide a period of time in which the two parties can work toward developing a project that is mutually satisfactory. The ERNA prohibits both parties from entering into negotiations with another party for the same potential project during the period of time that the ERNA is in place. The key points of the agreement are summarized below:

  • City agrees to sell to Developer approximately one hundred and eighty-three (183) acres of the two hundred and thirty-seven (237) acre Property at the appraised market rate value.
  • City agrees that Developer may acquire the Property in phases. The parties will negotiate the increments of acreage for the phases and whether Developer will be required to pay an option fee for reserving acreage for future purchases.
  • City will retain the right to retain twenty-one (21) acres to the northwest of the future planned area for Placer Parkway.
  • Developer shall have one (1) year or until Draft Environmental Impact Report (EIR) for Roseville Industrial Park Project at Phillip Road Site and rezoning has been completed, whichever is sooner, for the purposes of conducting its due diligence with respect to the Property and entitling the Property for industrial development.

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