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Home My WebLink AboutR-11648 authorizing the acquisition of real property located at 975 Broad Street, San Luis Obispo, CR 11648 RESOLUTION NO. 11648 (2026 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING THE ACQUISITION OF REAL PROPERTY LOCATED AT 975 BROAD STREET, SAN LUIS OBISPO, CALIFORNIA, IDENTIFIED AS ASSESSOR PARCEL NUMBER 002-412-010 WHEREAS, the City of San Luis Obispo has adopted policies and procedures for the acquisition and management of real property for public purposes through its Financial Management Manual, Section 475, Real Property Acquisition and Disposal Policy, adopted by City Council Resolution No. 10175 (2010 Series); and WHEREAS, the City of San Luis Obispo adopted the Downtown Concept Plan by Resolution No. 10829 (2017 Series), which set forth a future vision for the downtown area on a block-by-block basis, identifying commercial, residential, cultural, and public uses, as well as a suite of transportation and circulation goals and policies; and WHEREAS, property located at 975 Broad Street was recently listed for sale, opening an opportunity for the City of San Luis Obispo to purchase the property in furtherance of implementation of the Downtown Concept Plan, specifically community- serving uses within Block 10 and the Cultural Arts District, as identified and described in the Downtown Concept Plan; and WHEREAS, following Council direction received in closed session on April 7, 2026, a local real estate agent was engaged to learn more about the property, assess value and current market conditions, facilitate due diligence inspections, and negotiate an offer to purchase the property; and WHEREAS, the City has reached an agreement with the sellers to purchase the property at a price of $1,387,500. This agreement is expressly contingent on an affirmative finding of General Plan Conformity with the City’s Planning Commission in accordance with California Government Code section 65402, which took place on May 13th, and final approval by the City Council; and WHEREAS, if the transaction to acquire 975 Broad Street is successful, it is envisioned that interim, non-public uses of the property and existing structure by the City would be enacted to ensure basic maintenance and an ongoing, visible pattern of use to ensure safety and prevent trespass and vandalism, followed by a future Council-directed process engage with community stakeholders and partners to identify a long-term use for the property. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: Docusign Envelope ID: 78795B13-B2F3-8115-8325-D6C4ACD4956D Resolution No. 11648 (2026 Series) R 11648 SECTION 1. Recitals. The recitals set forth above are hereby adopted as findings of the City in approving the real property transaction described herein. SECTION 2. Environmental Review. The City of San Luis Obispo is the lead agency for the environmental determination necessary under the California Environmental Quality Act and has determined that an action to acquire the real property at 975 Broad Street does not constitute a “Project” under CEQA Guidelines Sec. 15378, as it does not commit the City to a specific project or result in a direct or reasonably foreseeable physical change in the environment. The action can be considered an organizational or administrative activity of government that will not result in direct or indirect physical changes in the environment (CEQA Guidelines § 15378(b)(5)). Once acquired, an interim, non-public use of the property and existing structure by the City of San Luis Obispo would also be exempt pursuant to Section 15301 of the CEQA Guidelines, which applies to “the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use.” Interim uses of the property will include operation, repair, and maintenance of the structure and any changes to the structure or use will be negligible. Because a long-term use has not yet been identified, there is no reasonably foreseeable project that can be evaluated at this time. SECTION 3. 975 Broad Street – Real Property Acquisition. The City Council hereby approves the contingent purchase and sale agreement and authorizes the purchase of real property located at 975 Broad Street San Luis Obispo, California, identified as Assessor Parcel Number 002-412-101, based on the following findings: a) The purchase of 975 Broad Street is in furtherance of the City’s Downtown Concept Plan (2017), which, in turn, has been found consistent with various City of San Luis Obispo policy documents including the Land Use and Circulation Elements of the General Plan (2014). b) The purchase of 975 Broad Street is consistent with the City of San Luis Obispo’s policies and procedures for real property acquisition and disposal found at Section 475 of the Financial Management Manual, which further incorporates City Charter Article IX, Section 906 and City Council Resolution No. 10052 (2009 Series) and Resolution No. 10175 (2010 Series). Specifically, acquisition of property in the Downtown area and identification of both interim and long-term uses are consistent with Section 475 acquisition and management real property. Docusign Envelope ID: 78795B13-B2F3-8115-8325-D6C4ACD4956D Resolution No. 11648 (2026 Series) R 11648 c) The purchase price of $1,387,500 million for 975 Broad Street is supported by ten comparable sales within the downtown and nearby surrounding area and represents the midpoint of the expected value range for similar properties, and therefore the expenditure to purchase the property at the agreed upon contract price represents a prudent use of City assets. Upon motion of Council Member Boswell, seconded by Council Member Marx, and on the following roll call vote: AYES: Council Member Boswell, Marx, Vice Mayor Francis, and Mayor Stewart NOES: None ABSENT: Council Member Shoresman The foregoing resolution was adopted on 19th day of May 2026. ___________________________ Mayor Erica A. Stewart ATTEST: ______________________ Teresa Purrington City Clerk APPROVED AS TO FORM: ______________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________ Teresa Purrington City Clerk Docusign Envelope ID: 78795B13-B2F3-8115-8325-D6C4ACD4956D 5/27/2026 | 7:19 AM PDT