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HomeMy WebLinkAboutMINUTES - 07162013 - C.39RECOMMENDATION(S): APPROVE and AUTHORIZE the Public Works Director, or designee, to decline to exercise the County’s right to purchase the real property located at 3024 Willow Pass Road, Concord, pursuant to a right of first refusal contained in the lease under which the County leases a portion of the property. FISCAL IMPACT: No fiscal impact. BACKGROUND: The County is a party to a lease dated January 24, 2012, pursuant to which the County is leasing, as the tenant, a portion of the building located at 3024 Willow Pass Road, Concord. The County uses the leased premises as a health clinic. The lease grants the County a “right of first refusal.” The right of first refusal gives the County the right to purchase the real property located at 3024 Willow Pass Road under certain circumstances. One of those circumstances is if the owner receives an unsolicited offer from someone who wants to purchase the subject property. The property owner has notified the County that it has received an offer from a third-party to purchase the subject APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 07/16/2013 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Gail Meyers, (925) 313-2133 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: July 16, 2013 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: C. 39 To:Board of Supervisors From:Julia R. Bueren, Public Works Director/Chief Engineer Date:July 16, 2013 Contra Costa County Subject:3024 Willow Pass Road, Concord – Election to Not Exercise Right of First Refusal to Purchase Real Property BACKGROUND: (CONT'D) property for approximately $3.45 million. As a result, under the terms of the right of first refusal, the County has the right to purchase the subject property at the same price offered by the third party (approximately $3.45 million). If the County elects to exercise the right to purchase the subject property under the terms of the right of first refusal, it must communicate its election within 30 days of having received the notice of the offer from the property owner. The County received the notice from the property owner on June 17, 2013. The Health Services Department, the department for which the County leased a portion of the subject property, has determined that it is not interested in purchasing the subject property at that price. Furthermore, staff of the Public Works Department – Real Estate Division has determined that it would not be in the County’s best interest to purchase the subject property at that price because that price is above current market. If the County declines to purchase the subject property and the proposed sale is not completed, the County retains its right of first refusal to any subsequent sale by the owner that arises as a result of a third-party offer. CONSEQUENCE OF NEGATIVE ACTION: If the County fails to match the third-party offer within the 30-day period allowed, the County will forfeit its right to purchase the property at this time. CHILDREN'S IMPACT STATEMENT: Not applicable.