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