HomeMy WebLinkAbout _ 4.1(a)--Consider Non-Binding Letter of Intent to Purchase 3811 El Portal
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve and authorize the following actions regarding the potential sale of real property located
at 3811 El Portal (Assessor’s Parcel Number 070-100-027)
(1) Accept a Non-Binding Letter of Intent with Michael Manola regarding the potential sale
of property owned by the City of Redding located at 3811 El Portal;
(2) Authorize staff to obtain a Broker’s Opinion of Value and the City Manager to negotiate and
execute a purchase and sale agreement and all subsequent documentation to facilitate the
disposition of the property; and
(3) Find the sale of the City-owned property is categorically exempt from review under the
California Environmental Quality Act Guidelines Section 15312 (Surplus Government
Property Sales).
Fiscal Impact
Upon sale of the property, the proceeds would go to the General Fund. The potential buyer has
offered $500; however, the sales price must be supported by a Broker’s Opinion of Value.
Alternative Action
The City Council could choose to not sell the property and the City of Redding (City) would
continue to hold full responsibility for the property and its upkeep.
Background/Analysis
Michael Manola submitted a Letter of Intent to purchase a small remnant parcel owned by the
City and located at 3811 El Portal, which is adjacent to his property. The parcel is a remnant
remaining from the acquisitions that allowed for the expansion of Interstate 5 within the Loma
Vista Subdivision. The parcel is approximately 2900 square feet and triangular in dimension.
The City would retain any easements necessary to maintain access to public works infrastructure
with the sale of the property.
MEETING DATE: June 20, 2023
ITEM NO. 4.1(a)
FROM:
***APPROVED BY***
btippin@cityofredding.org
btippin@cityofredding.org
SUBJECT: 4.1(a)--Consider Non-Binding Letter of Intent to Purchase 3811 El Portal
Barry Tippin, City Manager
Report to Redding City Council June 20, 2023
Re: 4.1(a)--Consider Non-Binding Letter of Intent to Purchase 3811 El Portal Page 2
While there is no known value for the property, it is currently vacant and in need of consistent
clearing for debris and encampments to prevent blight. An updated appraisal is a required
condition of the sale of any City-owned property, and the ultimate sales price will be set by the
value presented within it. Since this parcel is only 2900 square feet and its corresponding fair
market value is negligible, it qualifies for a Broker’s Opinion of Value to set the sales price.
Pursuant to State of California legislation, parcels must be designated surplus by adhering to
specific surplus property procedures. The City has complied with Government Code Section
54220 and has fulfilled the requirements set by the California Department of Housing and
Community Development to ensure the law is adhered to with regard to the sale of surplus
properties, including the property located at 3811 El Portal. No further actions are needed to
proceed with the disposition of the property.
Environmental Review
The sale of this City-owned property presents no significant impact on the environment and is
therefore categorically exempt from review under the California Environmental Quality Act
Guidelines Section 15312 (Surplus Government Property Sales). No further action is required
Council Priority/City Manager Goals
• Economic Development – “Facilitate and become a catalyst for economic development
in Redding to create jobs, retain current businesses and attract new ones, and encourage
investment in the community.”
Attachments
^Letter of Intent
^3811 El Portal
LETTER OF INTEREST
May 5, 2023 City of Redding
777 Cypress Avenue
Redding CA 96001
Attn: Janelle Galbraith
RE: 3811 El Portal lot; surplus lot
Dear City of Redding,
I recently bought the lot at 3899 El Portal to build a home there. I realized the city owned the lot to the north of me (adjacent) at 3811 El Portal, APN: 070-100-027. Then during a visit to Public
Works and Permit counter regarding my lot, I learned the small parcel at 3811 El Portal was a surplus lot.
There are several issues with the lot that the city may or may not be aware of. This is a remanent
lot from the Loma Vista Subdivision in 1953 from when I-5 came through.
1. The lot is only 2900sf; the lot’s triangular dimensions render it unbuildable with the zoning/setbacks and additionally the CC&Rs.
2. Sewer and water lines are not readily available curbside and will require line extension to acquire connections. Additionally, the sewer line on El Portal will require
a drop manhole to be installed to avoid the storm drain line that cuts across El Portal. The city has a mandatory hookup ordinance for water and sewer when the lot
boundary is within 200ft of existing. 3. There have been homeless campers on the city’s lot on 3811 El Portal. Myself and
other residents in the neighborhood have had to call RPD, and trash accumulates along the streets sometimes.
4. There is an 18-inch storm drainpipe that cuts across the north corner of the lot. If I can acquire the lot, I would offer a 10-foot-wide easement, center line of the storm
drainpipe, exclusively for the storm drainpipe.
I would like to offer $500 for the lot.
Sincerely,
Michael Manola
623-299-6637
655 Hilltop Drive
Redding CA 96003
SUBJECT PROPERTY
3811 EL PORTAL