HomeMy WebLinkAboutC36880 - PSA - MJCastelli - APN 627-071-017 STAFF REPORT
CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
MEETING DATE: April 12, 2018
PREPARED BY: Cora L. Gaugush, Capital Improvement Projects Technicianat"r
REQUEST: Authorize the City Manager to execute a Purchase and Sale
Agreement between Michael J. Castelli and the City of Palm Desert
for a vacant parcel of land located on the north side of Alessandro
Corridor West, and authorize the execution of any other related
documents (APN 627-071-065).
Recommendation
By Minute Motion,
1. Authorize the City Manager to execute a Purchase and Sale Agreement
between Michael J. Castelli and the City of Palm Desert for a vacant parcel
of land located on the north side of Alessandro Corridor West (APN 627-
071-065); and (Contract No. C36880)
2. Authorize the execution of any other necessary or related documents in
order to complete the transaction.
Strategic Plan Objective
The purpose of the Alessandro West project is to promote the expansion and
beautification of the adjacent retail businesses along the Highway 111 frontage to
encourage a vibrant city core. The improvements for the Alessandro West project
address the Transportation, Economic Development and Land Use Areas goals of the
Strategic Plan Objectives, more particularly as follows:
Transportation - Priority 2: Revitalize the Highway 111 corridor through land use and
travel corridor evolution and visual improvement
Economic Development — Priority 3: Create and attract entertainment and events to
enhance and expand the Palm Desert economy and lifestyle
Land Use Areas— Priority 1: Enhance Palm Desert as a first-class destination for premier
shopping and national retail businesses
April 12, 2018-Staff Report
Authorize City Manager to Execute PSA-Castelli (APN 627-071-065)
Page 2 of 2
Background Analysis
The project to implement the Alessandro West Corridor Improvements is underway. This
project will widen Alessandro between the Walgreen's parking lot and Las Palmas
Avenue to accommodate both an improved drive path and provide additional parking
necessary for the adjacent retail area along the Highway 111 Frontage Road. To
accomplish this approximately twenty-seven feet of right-of-way is required from adjacent
properties. A portion of the necessary right-of-way was acquired from Michael Castelli in
July of 2009.
In January of 2017, City Council approved the One Eleven Development Code, which re-
zoned the property along the Alessandro Corridor from R-1, Single Family Residential to
Downtown Transition, a Mixed Use Area. A larger piece of contiguous properties, rather
than separated single lots, will attract more interest as a possible area of development.
On February 22, 2018, the City Council authorized staff to negotiate with Mr. Castelli for
the purchase of his remaining property at up to $15.00 per square foot. After several
conversations, Mr. Castelli has notified the City he is willing to sell his entire vacant lot at
the proposed price of $15.00 per square foot. According to City Council direction, the
portion of this acquisition for necessary right-of-way will be paid for from the project
account. The remainder of the cost will come from General Fund Reserves. The amount
of money expended from General Fund Reserves will be reimbursed to the General Fund
upon the sale of the property.
Fiscal Analysis
The total consideration paid for the property is $93,045. Of this amount $16,953.75 will
be paid by the project account for necessary right-of-way to complete the project. The
$76,091.25, paid from General Fund Reserves and will be reimbursed from the proceeds
from the sale of the property. Although the price of $15.00 per square is over the
appraised value of$12.00 per square foot, it is less than the recent price paid for adjacent
properties necessary for the completion of the project.
LEGAL REVIEW DEPT. REVIEW FINANCIAL CITY MANAGER
REVIEW
OK BBK /�
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Tirnothyy R. nassonP.E. Moore Lauri Aylaian
City Attorney Independent Interim Director of Finance City Manager
Director of Public Works
PROPERTY OWNER: Michael Castelli
73098 Hwy 111
Palm Desert, California 92260
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