Title
[Redevelopment Agency Successor Agency] Exclusive Right to Negotiate for RASA-Owned Property at 1340-1414 Del Paso Boulevard
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FileID
File ID: 2026-01254
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Location
Location: 1340-1414 Del Paso Boulevard, District 2
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Recommendation
Recommendation: Pass a Redevelopment Agency Successor Agency Motion: 1) approving an Exclusive Right to Negotiate with Vrilakas Groen Architects for the Redevelopment Agency Successor Agency-owned properties at 1340-1414 Del Paso Boulevard (Assessor Parcel Numbers 275-0123-010, 275-0125-001, 275-0125-028, 275-01250-004); and 2) authorizing the City Manager or designee to execute the attached Exclusive Right to Negotiate with Vrilakas Groen Architects and take any additional necessary actions to implement the Exclusive Right to Negotiate with Vrilakas Groen Architects and to pursue grant opportunities for the site.
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Contact
Contact: Leslie Fritzsche, Economic Investment Manager, (916) 808-5450, lfritzsche@cityofsacramento.org; Amanda Wallace, Project Manager, (916) 808-5453, awallace@cityofsacramento.org; Office of Innovation and Economic Development
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Site Location
3-Exclusive Right to Negotiate with Vrilakas Groen Architects
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Description/Analysis
IssueDetail
Issue Detail: The Redevelopment Agency Successor Agency (RASA) owns property in the North Sacramento area on Del Paso Boulevard at the corner of Edgewater Road (APNs 275-0123-010,275-0125-001,275-0125-028,275-01250-004), referred to as the “Site,” as shown in Attachment 2. In accordance with the redevelopment dissolution law, RASA is to dispose of its real property holdings and distribute the sales proceeds to various taxing entities. The Oversight Board for RASA and the California Department of Finance approved RASA’s Long Range Property Management Plan (Plan) in 2015. The Plan included an inventory of all RASA properties and specified the type of disposition and use for each property. In 2016, the Oversight Board delegated authority to RASA to sell properties at fair market value based on an appraisal or the highest bid. Accordingly, RASA is authorized to proceed with disposition of its real property assets.
Disposition of the Site is also subject to the California Surplus Land Act (Act). The first step in the process of disposing property under the Act is for the property to be declared surplus. All of RASA’s real property holdings were deemed surplus through adoption of the Plan, pursuant to Government Code section 54221(b)(2) of the Surplus Land Act. To further comply with the Act, RASA staff sent out a Notice of Availability (NOA) for 1340 and 1414 Del Paso Boulevard on December 8, 2021 and for 1400-1410 Del Paso Boulevard on March 3, 2023 for to all required recipients, including affordable housing developers on the list managed by the California Housing and Community Development department (HCD), affordable housing developers on a list maintained by the Sacramento Housing and Redevelopment Agency, and public agencies. The NOAs informed recipients that the Site was available for affordable housing and, if interested, entities should submit an offer within 60 days of the NOA.
After receiving no offers in response to its Notices of Availability, RASA received two later offers to purchase the Property, but they did not result in a sale. Recently, staff has been in conversation with Ron Vrilakas of Vrilakas Groen Architects (Vrilakas) about his interest in the site. He also identified a potential Sacramento Area Council of Government $1.8 million grant opportunity for affordable housing through Green Means Go that he is interested in pursuing for this site. The attached Exclusive Right to Negotiate Agreement (ERN) contains negotiated terms to provide a 270-day period to pursue this grant opportunity and other funding, complete site investigation, due diligence and planning work for the Site.
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PolicyConsiderations
Policy Considerations: The recommendations in this report are in accordance with California redevelopment agency dissolution laws (Health & Safety Code § 34170 et seq.) and the California Surplus Land Act (Government Code § 54220 et seq.).
The use contemplated for the Site is in accordance with the goals of the former Redevelopment Agency of the City of Sacramento’s North Sacramento Redevelopment Plan and the Implementation Plan.
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EconomicImpacts
Economic Impacts: The actions recommended in this report have no direct economic impact but are a step towards development of the site and further economic revitalization of Del Paso Boulevard.
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act (CEQA): Entering into an ERN as described in this report is exempt from environmental review under CEQA Guidelines Section 15312 (Surplus Government Property Sales) because the Site is not located in an area of statewide, regional or areawide concern; it does not have significant values for wildlife habitat; the use of the Site and adjacent property has not changed since the time of purchase.
This report only proposes execution of an ERN for the Site. If this leads to a Purchase and Sale Agreement, the developer will have to obtain any necessary land use entitlements and conduct any necessary environmental review under CEQA before the Site can be developed.
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Sustainability
Sustainability: This report does not directly address any sustainability issues however it is in furtherance of infill housing and is located along a light rail line.
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Commission/Committee Action
Commission/Committee Action: On January 25, 2016, by Resolution 2016-0001, RASA’s Oversight Board delegated authority to RASA to sell properties without the need for further Oversight Board approval, provided the properties were sold at fair market value as determined by appraised value or the highest bid. This approval was sought to aid in streamlining the disposition process. The proposed ERN is the first step in the disposition process.
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RationaleforRecommendation
Rationale for Recommendation: The Site consists of 3,900 square feet building on a 7,500 square feet lot and two vacant contiguous parcels with a combined land area of all three parcels equaling 30,000 square feet. An additional 15,000 sq. ft. parcel lies south of Edgewater Road. All four parcels are contained within the proposed ERN.
Vrilakas envisions a mixed-use development for the site that could yield between 70-80 affordable units. The potential project advances the vision of introducing housing to the Del Paso Boulevard corridor, a long-held goal to aid in the corridor’s revitalization and to increase housing supply. The project also includes commercial space at the ground level that will be designed for emerging entrepreneurs.
Vrilakas Groen Architects was formed in 1995 and has been one of Sacramento’s premier residential architect and developer. The firm and Ron Vrilakas specifically, has a proven track record of transforming underutilized spaces into vibrant thriving corridors; elevating up and coming businesses and building stronger communities. A striking example is his work on the Broadway Triangle in Oak Park which brought new residential units, vibrant businesses and a sense of place to the heart of Oak Park. Notable architectural work includes The Sutter Hotel, Ice Block 3, 1801 L Street, Township 9 light rail station and Mercy Housing in West Sacramento. With a commitment to enhancing urban environments, they undertake projects that contribute to the community’s revitalization and bring urban character and architectural presence.
The firm’s experience lends itself to the type of infill that is imagined for the Del Paso Boulevard corridor. The scale of their infill sites is in keeping with the Boulevard’s attributes and development of the site will further the revitalization of the corridor and leverage investments made by the Redevelopment Agency, the City, and SACOG’s Green Means Go program (currently paying for a utility upgrade adjacent to the site) and the commitment of the many business owners and residents in North Sacramento.
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FinancialConsiderations
Financial Considerations: The proposed ERN will provide an opportunity for Vrilakas to initiate due diligence on the site and to develop plans. This information will provide the basis for negotiating a potential disposition price.
The ERN includes a $500 non-refundable deposit for the provision of the 270-day period negotiation period. These funds will be provided to the County Auditor-Controller for distribution to the taxing entities. The City’s portion will be deposited into the Innovation and Growth Fund (Fund 2031).
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Vrilakas Groen Architects is a local business enterprise.
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