HomeMy WebLinkAbout02/18/1992, C-7 - AMENDMENT TO PURCHASE AGREEMENT FOR EMERSON SCHOOL SITE. MEETING DATE:
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i COUNCIL AGENDA REPORT Imo""NUMBER:�_
FROM: Robert F. Neumann, Fire Chief
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Prepared By: Erwin Willis, Battalion Chief
SUBJECT: Amendment to purchase agreement for Emerson School
Site.
CAO RECOMMENDATION:
By motion, approve and authorize the Mayor to execute an amendment to
the purchase and sales agreement for the Emerson School Property with
San Luis Coastal Unified School District.
DISCUSSION:
On November 7, 1990, Council approved expending $2 ,640, 000 for the
purchase of the Emerson School site and directed staff to conclude
negotiations with the San Luis Coastal Unified School District.
The City entered into an agreement with the School District to
purchase the property with the City taking ownership and funds being
transferred on July 1, 1991. The School District was to have vacated
the site and moved their operations from this site to the Pacific
Beach School site by this date. On October 29, 1991, Council approved
an amendment agreeing to extend the closing date until December 31,
1991. Unfortunately, the Office of the State Architect has rejected
the School District's classroom design since the buildings will house
mentally and physically handicapped children. This necessitates
redesigning all buildings and has pushed the completion date back
approximately 6 months. Due to these changes the amended agreement
needs to be further amended to reflect these new dates.
The funds the City is using is from the sale of a bond. Under the
provisions of the bond sale the City has until December 1, 1993 to
expend these funds for the purchase of the site.
FISCAL IMPACT:
The delay in the transfer of the $2, 326, 000 in funds for purchase of
the school site will earn the City from $60, 000 to $80, 000 in interest
that the funds will gain due to the six to eight month delay.
ALTERNATIVES TO SIGNING AMENDMENT
1) Do not approve the amendment and require the School District to
transfer title and vacate the property immediately.
This alternative is not recommended because the City would then,
under State law, be required to help pay to relocate the School
Districts operations. The city would gain nothing from this
option. -7- I
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Wig COUNCIL AGENDA REPORT
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CONCURRENCES
Finance - Finance has reviewed this extension and concurs.
San Luis Coastal Unified School District - The School District
Superintendent concurs with this extension and will be taking it to
the School Board for approval at their February 18, 1992 meeting.
Attachment: Second amendment to agreement
Purchase and Sale Agreement(cont)
Emanon School Property
1341 Nipomo Street
Assenors Parcel Number 003-515-001
SECOND AMENDMENT TO PURCHASE AND SALE AGREEMENT
FOR THE EMERSON SCHOOL PROPERTY
A. That certain Purchase and Sale Agreement, dated November 7, 1990,
by and between the San Luis Coastal Unified School District
(seller) , a Unified School District under the State Education
Code, and the City of San Luis Obispo, a chartered Municipal
Corporation of the State of California (Buyer) , is hereby amended
as follows:
1. Seller shall transfer title,. and Buyer shall make the second
payment due under paragraph 3 at such time as the existing
tenants vacate, but no later than September 1, 1992. This
time period may be extended up to an additional sixty (60)
days upon mutual agreement of the Chief Administrative
Officer of the City of San Luis Obispo and The
Superintendent of the San Luis Coastal Unified School
District or his designee.
2. All other terms and conditions of the Purchase and Sale
Agreement dated November 7, 1990, are to remain in full
force and effect.
SELLER BUYER
SAN LUIS COASTAL CITY OF SAN LUIS OBISPO
UNIFIED SCHOOL DISTRICT
By By
SUPERINTENDENT MAYOR
Date:
ATTEST:
APPROVED AS TO FORM:
CITY CLERK
AT OR Y
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