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.
