REPORT TO COUNCIL
SUBJECT
Title
Action on a Purchase and Sale Agreement to Acquire the Property Located at 3031 Corvin Drive in Santa Clara for Use by the Parks and Recreation Department, Public Works Department, and the Water and Sewer Utilities Department for Workshop and Storage Purposes for a Purchase Price of $6.3 Million and Approve Related Budget Amendments
Report
BACKGROUND
The City of Santa Clara continues to experience increasing operational space constraints across multiple departments as service demands grow and the availability of industrially zoned properties suitable for municipal use remains limited. Several City departments, including the Parks and Recreation Department, the Department of Public Works, and the Water and Sewer Utilities Department, have identified an ongoing and expanding need for additional workshop, storage, and operational support space in order to efficiently maintain City infrastructure, equipment, and materials.
The City was notified of the availability of the property located at 3031 Corvin Drive, Santa Clara, California (APN 216-33-022) (Property). The Property is located adjacent to Fire Station 9 and was identified as a suitable acquisition opportunity due to its proximity to existing City facilities, its building size, its industrial zoning, and its compatibility with public works, maintenance, and utility-related operations.
Working with CBRE, the City expressed interest in acquiring the Property. Accordingly, the City and the seller entered into a Letter of Intent (LOI) outlining the general business terms under which the City would consider entering into a Purchase and Sale Agreement (PSA) for the acquisition of the Property. The City's commitment to purchase the Property in the LOI is contingent upon the City Council's approval of a final PSA, in its sole discretion.
DISCUSSION
The Property consists of an approximately 0.61-acre parcel improved with an approximately 17,852-square-foot industrial building const...
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