| | | | | | | |
AGENDA ITEM
| Agenda Title: | Jacobs Property Exchange Update | | | | Meeting Date: | August 8, 2024 | | | | Item: | Discussion |
|
| | | | | | | |
| WHAT (the board is asked to discuss, receive, approve, or adopt) | The Governing Board will receive an update on the Jacobs Property Exchange.
|
| | WHY (briefly explain why the action or discussion is important; and if applicable, how it is connected to site, district, or strategic plans) | | Under the July 10, 2024, Second Amendment to the exchange agreement between the District and AMG, closing on the exchange is scheduled for August 9, 2024. |
| STRATEGIC PLAN/PRIORITY AREA:
| Applied to the "Fiscal Integrity of the District" portion of the Strategic Plan
| HISTORY (list previous staff or board action(s) with dates if possible) | On December 14, 2023, the Board adopted Resolution # 23-24-023, which approved the exchange of real property between the District and AMG pursuant to Education Code section 17536. The Agreement provided for a feasibility period for the parties to investigate the properties. The parties previously agreed to extend the feasibility period to February 26, 2024, in order to complete that investigation. Following its investigation of the I Street property, pursuant to the Agreement, the District notified AMG of certain conditions with the I Street property that needed to be remedied in order for the property to be occupied by District staff in the future, which has been the District’s intended use of the property. AMG agreed to cure the conditions but indicated that it needed additional time to undertake the work in question. On April 4, 2024, the Board approved the First Amendment to the Agreement. The First Amendment allowed additional time for AMG to cure the conditions on the I Street property and for the District to complete the survey work and subdivision process for the Jacobs site. On July 10, 2024, the Board approved the Second Amendment, which extended Close of Escrow to August 9, 2024.
|
| | HOW MUCH(list the revenue amount $ and/or the expense amount $) | The total revenue for the exchange of property is $6,000,000 (AMG to pay the District $5,350,000, plus the District receives property valued at $650,000). Additionally, under the Second Amendment, any cost of any remedial work not completed on the I Street property by AMG will be credited to the District, potentially increasing the amount of the $5,350,000 payment to the District. The First Amendment required Developer to submit an additional $100,000 deposit into escrow.
|
| | WHO(list the name of the contact person(s), job title, and site location) | Paul Ziegler, Assistant Superintendent of Business Services |
|
|