REPORT TO COUNCIL
SUBJECT
Title
Approve the Purchase and Sale Agreement Between the City of Sunnyvale and Youland Smarthome LLC 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 the City-owned property at 1484 Kifer Road, formerly known as "Unilever," as surplus and authorizing its sale in accordance with Government Code Section 54220, et seq. (Surplus Lands Act) (Report to Council (RTC No. 17-0191).
On September 26, 2017, Council rejected two offers from low income housing developers, thus completing its obligations under the Surplus Land 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).
On February 16, 2018, the Unilever Property was offered on the open market for sale as-is by an offering memorandum completed by Cushman & Wakefield. The City received 11 offers, with purchase prices ranging from approximately $16,000,000 to $33,000,000.
On April 24, 2018, during closed session, Council gave direction to staff to commence negotiations with the highest proposer, Zhen Zhen Li. A mutually agreed price and terms was negotiated and a Purchase and Sale Agreement (PSA) between the City of Sunnyvale and Zhen Zhen Li was drafted.
On June 12, 2018, Council authorized the City Manager to execute the PSA between the City of Sunnyvale and Zhen Zhen Li (RTC No. 18-0247). Prior to expiration of the 30-day due diligence period, the offer from Zhen Zhen Li was withdrawn and the entire amount of her deposit was refunded in accordance with the PSA.
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 sh...
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