Title
[Contract] Sale of City Property Located at the Northeast Corner of Fair Oaks Boulevard and Howe Avenue (APN 294-0110-012-0000)
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FileID
File ID: 2026-01385
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Location
Location: District 6
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Recommendation
Recommendation: Adopt a Resolution: 1) approving the Purchase and Sale Agreement (“PSA”) with TCP Investco HFO, LLC (“TCP”), for the sale of the property located at the northeast corner of Fair Oaks Blvd. and Howe Ave., APN: 294-0110-012-0000 (“Property”) for $400,000; 2) finding that selling the Property without first calling for competitive bids according to the procedures in City Code Chapter 3.88 is in the best interest of the City; 3) authorizing the City Manager or designee to execute the PSA, escrow instructions, and grant deed; and to take all actions and execute all additional documents as may be necessary to implement the property sale; 4) authorizing the City Manager or designee to pay the broker fee, escrow fees, assessments, transfer taxes, and other fees from the sales proceeds to complete the sale of the Property in accordance with the terms of the PSA; and 5) authorizing the City Manager or designee to deposit the net sales proceeds, after deduction for the Department of Public Works staff costs, into the Innovation and Growth Fund (Fund 2031) pursuant to City Council resolution 2015-0038.
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Contact
Contact: Richard Sanders, Facilities & Real Property Superintendent, (916) 808-7034, rsanders@cityofsacramento.org; James Christensen, Facilities Manager, (916) 808-5863, jechristensen@cityofsacramento.org; Department of Public Works
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Resolution
3-Purchase and Sale Agreement
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Description/Analysis
IssueDetail
Issue Detail: On November 15, 2022, per Resolution 2022-0352, the City Council declared the property located at the northeast corner of Fair Oaks Blvd. and Howe Ave. as “surplus property.” On December 15, 2023, in accordance with the California Surplus Land Act (the “SLA”) as set forth in Government Code Section 54220 et seq., a Notice of Availability (NOA) was sent to local public agencies and Housing Sponsors on the list posted by the CA Department of Housing and Community Development (HCD). The City did not receive any responses to the NOA. In August 2024, the City hired CBRE to list the Property for sale on the open market. The City received three valid offers from developers with extensive experience in developing commercial properties within the Sacramento Area. During negotiations it was discovered that additional development hurdles exist on the Property, and only TCP decided to proceed with final negotiations.
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PolicyConsiderations
Policy Considerations: The recommendations in this report are consistent with the provisions of City Code Section 3.04.010 and Chapter 3.88 regarding the disposition of real property owned by the City, and the California Surplus Land Act (Government Code section 54220 et seq.).
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act: The sale of surplus property is exempt from environmental review under CEQA Guidelines Section 15312, Surplus Government Property Sales, because the property 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 property and adjacent property has not changed since the time of purchase; and the PSA does not approve development of the property.
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: Approval of the PSA, will allow the City to dispose of this surplus property which has been vacant for more than 50 years. The sale will eliminate the costs for maintenance of the Property and provide funds to the City’s Innovation and Growth Fund.
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FinancialConsiderations
Financial Considerations: City will be required to pay in escrow a 6% brokerage commission, one half of the escrow fees, all of the transfer taxes, all of the title insurance cost, and its share of prorations and general expenses. In addition, Department of Public Works staff time will be paid out of the sales proceeds after the close of escrow. These costs will be deducted from the $400,000 cash sales proceeds. The remaining net cash sales proceeds will be deposited in the Innovation and Growth Fund pursuant to City Council resolution 2015-0038.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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