To: Board of Supervisors
From: Public Works
Agenda Section: Consent
SUBJECT:
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Notice of Intention to Purchase Real Property Located at 1017 Fourth Street, Eureka, California and Supplemental Budget for Public Works Capital Projects Budget Unit 1100-170 (4/5 Vote Required)
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve, and authorize the Humboldt County Public Works Director, or a designee thereof, to execute, the attached real property purchase agreement and joint escrow instructions regarding the real property located at 1017 Fourth Street, Eureka, California;
2. Approve, and authorize the Chair of the Board to execute, the attached Notice of Intention to Purchase Real Property located at 1017 Fourth Street, Eureka, California in accordance with California Government Code Section 25350;
3. Direct the Clerk of the Board to publish the attached Notice of Intention to Purchase Real Property located at 1017 Fourth Street, Eureka, California in accordance with California Government Code Section 25350; and
4. Approve the attached supplemental budget request for Public Works Capital Projects budget unit 1100-170 in the amount of $250,000 for fiscal year 2022-2023 (4/5 Vote Required).
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SOURCE OF FUNDING:
2020 Finance Plan
DISCUSSION:
On July 22, 2022, the Humboldt County Board of Supervisors authorized the Humboldt County Public Works Director, and designees thereof, to negotiate terms for the purchase of real property located at 1017 Fourth Street, Eureka with Gerald and Belinda Rush and any duly authorized agents thereof. The proposed acquisition of this property is in alignment with the goals of the 2020 Facilities Master Plan which includes the creation of campus complexes.
The attached real property purchase agreement and joint escrow instructions have been approved by County of Humboldt staff and the owners of the property, Gerald and Belinda Rush. The conditions of sale include a purchase price of $212,000, with a non-refundable earnest deposit of $10,000 towards the purchase price, and an escrow period of 90 days. During the escrow period, the County of Humboldt will have the opportunity to rescind the purchase should any conditions pursuant to the California Environmental Quality Act, or the City of Eureka’s General Plan, make it infeasible to acquire the real property. The conditions of sale also include an additional non-refundable earnest deposit of $25,000 towards the purchase price should the parties agree to extend the ninety 90-day escrow period. The County of Humboldt will equally split all escrow fees and closing costs with the owner and will not pay the owner’s broker any commission or compensation.
Accordingly, staff recommends that the Board approve, and authorize the Public Works Director to execute, the attached real property purchase agreement and joint escrow instructions regarding the real property located at 1017 Fourth Street, California, along with the attached Notice of Intention to Purchase Real Property located at 1017 Fourth Street, Eureka, California, and direct the Clerk of the Board to publish the attached Notice of Intention to Purchase Real Property located at 1017 Fourth Street, Eureka, California as required by California Government Code Section 25350.
FINANCIAL IMPACT:
The estimated cost to acquire the real property located at 1017 Fourth Street, Eureka, California, including staff time and consultant fees, is $250,000. Future demolition and development costs would be contingent on other factors beyond the scope of this initial assessment. The Humboldt County Administrative Office has approved use of 2020 Finance Plan funds in the amount of $250,000 for the purchase of the real property located at 1017 Fourth Street, Eureka, California. The purchase price is the same as the appraised value performed in 2017.
STRATEGIC FRAMEWORK:
The recommended actions support the Board of Supervisors’ Strategic Framework by providing for and maintaining infrastructure.
OTHER AGENCY INVOLVEMENT:
None
ALTERNATIVES TO STAFF RECOMMENDATIONS:
The Board may choose not to approve the attached real property purchase agreement and joint escrow instructions regarding the real property located at 1017 Fourth Street, Eureka, California or the Notice of Intent to Purchase Real Property located at 1017 Fourth Street, Eureka, California. However, this alternative is not recommended as it does not support the County of Humboldt’s 2020 Facilities Master Plan.
ATTACHMENTS:
1. Real Property Purchase Agreement and Joint Escrow Instructions Regarding the Real Property Located at 1017 Fourth Street, Eureka, California
2. Notice of Intention to Purchase Real Property Located at 1017 Fourth Street, Eureka, California
3. Supplemental Budget for Public Works Capital Projects Budget Unit 1100-170
PREVIOUS ACTION/REFERRAL:
Board Order No.: C-1
Meeting of: July 22, 2022
File No.: 22-966