REPORT TO COUNCIL
SUBJECT
Title
Approve the Purchase and Sale Agreement Between the City of Sunnyvale and Zhen Zhen Li for the Sale of 1484 Kifer Road; Formerly, the Unilever Margarine Plant
Report
BACKGROUND
On February 28, 2017, Council adopted Resolution No. 810-17 declaring 1484 Kifer Road, the "Unilever Property" surplus and authorizing its sale in accordance with Government Code Section 54220, et seq. (Surplus Lands Act) (Report to Council (RTC) No. 17-0191). The Unilever Property was gifted to the City without consideration in1979 and has never been used for City services. The Unilever Property is about 4.74 acres, improved with an industrial building of about 96,348 square feet. The property is part of the Lawrence Station Area Plan (LSAP), which allows for research and development, office, and industrial uses up to 50% floor area ratio (FAR). The LSAP is currently under study to possibly allow more residential and flexible mixed uses.
In accordance with City Council Policy 1.2.7 and the Surplus Lands Act (Act), the City of Sunnyvale received two offers from low income housing developers and negotiated with both for 90 days. On September 26, 2017, Council rejected the two offers from low income housing developers, thus completing its obligations under the Act. Council directed staff to offer the Unilever property for sale on the open market and authorized funding of $80,000 for professional real estate broker services to be provided by Cushman & Wakefield for the sale of 1484 Kifer Road (RTC No. 17-0843).
EXISTING POLICY
Council Policy 1.2.7 Acquisition, Leasing and Disposition of City-Owned Real Property Section 3: Disposing of surplus property shall be done in a manner to maximize the benefit to the community and should be done whenever real estate market conditions are favorable to the City.
Section 3.D: The City may use any of the following methods or combination thereof to maximize the benefit to the community. Methods of disposition should be...
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