Item Coversheet

Agenda Item No: 3.






AGENDA REPORT

DATE:

May 4, 2021 

TO:

Mayor and City Council

FROM:

Stefan T. Chatwin, City Manager


SUBJECT:Resolution 2021-81 of the City Council of the City of Fairfield Approving the Execution of the Purchase and Sale Agreement and Joint Escrow Instructions Between the City of Fairfield and LBM Partnership for the Purchase of Vacant Property at Peabody Road and Dobe Lane for Future Fire Station 39

RECOMMENDED ACTION 
Adopt resolution.
STATEMENT OF ISSUE 
Staff is recommending the City enter into a Purchase and Sale Agreement and Joint Escrow Instructions (Agreement) with LBM Partnership to purchase a vacant parcel located on Peabody Road at Dobe Lane (APN: 0170-032-300). The total purchase price is $1,123,424 plus the City’s share of escrow fees. This price is based on a valuation of $10 per square foot land price, less a $2 per square foot charitable donation. The net land acquisition will be confirmed by a licensed land surveyor with the final lot line adjustment.

Acquisition of the property will allow for construction of a new Fire Station 39. The proposed resolution approves the Agreement, consents to the recordation of grant deeds in favor of the City for certain interests in property, and authorizes the city manager to execute the Agreement, certificate of acceptance, and related instruments.
DISCUSSION
The City Council adopted Train Station Specific Plan identified the need to construct a new fire station to replace Station 39, currently located at 1975 Huntington Drive. The City of Fairfield Fire Department's standards of coverage demonstrate the need for the new fire station to be located easterly of Huntington Drive. The new station will meet the demands for emergency services in northeast Fairfield, which has occurred as a result of new developments. The Fire Department has identified a property on Peabody Road, near the intersection of Dobe Lane, as an optimal location for the future Fire Station 39.

The subject property (Assessor Parcel Number 0170-032-300) consists of approximately 3.637 gross acres of vacant land. The property is currently owned by LBM Partnership, a California limited partnership. Staff engaged with Terra Realty Advisors to facilitate the negotiations with the property owner and act on behalf of the City on the land acquisition. LBM Partnership requests an 80’ x 225’ ft. strip of land adjacent to the existing Frank-Lin Distillers Products, Ltd. property (2455 Huntington Drive) to not be included as part of the sale. This results in a net area of approximately 3.22 acres for the new fire station site. A survey will be completed during the due diligence review period to determine the net land. A new fence will be constructed by the City along this adjusted property line which will match the existing fence.

Upon execution of the Agreement, there is a 180-day due diligence review period, where the City at its sole cost and discretion will perform any studies, and/or investigate any issues that may affect the property. This may include, but is not limited to: zoning, hazardous waste, environmental (including without limitation a Phase 1 environmental review), physical plant, appraisal, and title search, to satisfy staff as to the price, title and suitability of the property. Assuming there are no findings, staff will proceed with the design of the improvements on the subject property.

FINANCIAL IMPACT
The authorization for this agreement is $1,123,424 plus the City’s share of escrow fees. The total purchase price ($1,123,424) is determined from the estimated land valuation ($1,404,280) less the charitable donation ($280,856). Funds are accounted for in the Capital Public Building Fund (Fund 254, Division and Responsibility 99344) utilizing AB 1600 and Construction License funds.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION 
N/A
ALTERNATIVE ACTION 
The City Council may choose to modify, or not enter into, this agreement, which would delay the design and construction of the new Fire Station 39.
STAFF CONTACT 
Matt Luckenbach, Deputy Fire Chief
(707) 436-7222
mluckenbach@fairfield.gov

Ryan Panganiban, Assistant Director of Public Works/City Engineer
(707) 428-7017
rpanganiban@fairfield.ca.gov

COORDINATED WITH 
City Attorney's Office, Community Development Department, Finance Department
ATTACHMENTS:
Description
Proposed Resolution
Proposed Agreement and Joint Escrow Instructions
REVIEWERS:
ReviewerActionDate
Panganiban, RyanApproved4/23/2021 - 1:43 PM
Kaushal, PaulApproved4/23/2021 - 1:44 PM
Alexander, AmberApproved4/26/2021 - 11:56 AM
Alexander, AmberApproved4/26/2021 - 11:56 AM