Staff Report
PREPARED BY: ROBERT SCHULTZ
Town Attorney
Reviewed by: Town Manager, Assistant Town Manager and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
TOWN COUNCIL REPORT
MEETING DATE: 11/06/2018
ITEM NO: 11
DATE: OCTOBER 30, 2018
TO: MAYOR AND TOWN COUNCIL
FROM: ROBERT SCHULTZ, TOWN ATTORNEY
SUBJECT: ADOPT A RESOLUTION APPROVING THE PURCHASE AND SALE
AGREEMENT FOR THE SALE OF TOWN-OWNED PROPERTY LOCATED ON
WINCHESTER BOULEVARD AT LARK AVENUE, APN 424-31-055,
AUTHORIZING THE TOWN MANAGER TO EXECUTE ALL DOCUMENTS
NEEDED TO COMPLETE THE TRANSACTION IN A FORM ACCEPTABLE TO
THE TOWN ATTORNEY, AND AUTHORIZE A REVENUE BUDGET
ADJUSTMENT IN THE AMOUNT OF $1,905,000 TO RECOGNIZE THE SALE
REVENUE.
RECOMMENDATION:
Adopt a Resolution (Attachment 1) approving the Sale and Purchase Agreement for the sale of
Town-owned property located on Winchester Boulevard at Lark Avenue, APN 424-31-055,
authorizing the Town Manager to execute all documents needed to complete the transaction in
a form acceptable to the Town Attorney, and authorize a revenue budget adjustment in the
amount of $1,905,000 to recognize the sale revenue.
BACKGROUND:
The property on Winchester Boulevard at the corner of Lark Avenue has been owned by the Town
for many years, with Town records going back to the 1950’s and 1960’s. The parcel is currently
separated into two lots with one lot occupied by County Fire in a long term lea se that expires in
the year 2036. The other lot has been vacant and was utilized by Goodwill for a donation drop-
off station and for a Christmas tree lot and a pumpkin patch during the holidays.
PAGE 2 OF 3
SUBJECT: ADOPT A RESOLUTION APPROVING THE SALE AND PURCHASE AGREEMENT
FOR THE SALE OF TOWN-OWNED PROPERTY LOCATED ON WINCHESTER
BOULEVARD AT LARK AVENUE
OCTOBER 30, 2018
BACKGROUND (Continued):
Although in general, and as a concept, it is not a good idea for a public entity to sell real property,
the Council has determined that the property is surplus and that there is no need for
the property. Therefore, pursuant to Government Code section 37421 and Resolution 2016-010,
the Town notified the citizens of its intention to sell the Town-owned property referenced above.
At the March 6, 2016 Council Meeting, having received no protests to the sale of the property,
the Council authorized staff to proceed with procuring a buyer for the property.
DISCUSSION:
Prior to offering a property for sale publicly, the California Government Code §54222 requires
Government agencies to offer properties for potential sale to specific entities, including:
• Housing providers for low or moderate income housing.
• Parks, recreation, and open space providers.
• School districts.
• Infill or transit village interests – not applicable in Los Gatos
• Enterprise zone interests – not applicable in Los Gatos
The Los Gatos Union Elementary School District initially expressed interest in the Winchester
property; however, upon further review determined that property did not meet the needs of the
District. Since none of the specific entities listed above were interested, the property was offered
to the general public for sale.
The Santa Clara County Fire Department was the only party that demonstrated significant
interest in the Winchester property. After numerous meetings with the County Fire Department
and Town Council in closed session, staff was successful in negotiating a Purchase and Sale
Agreement for $1,905,000. The Purchase and Sale Agreement is attached to the Resolution as
Exhibit A.
CONCLUSION:
Staff recommends that Council adopt a Resolution (Attachment 1) approving the Sale and
Purchase Agreement for the sale of Town-owned property located on Winchester Boulevard at
Lark Avenue, APN 424-31-055.
PAGE 3 OF 3
SUBJECT: ADOPT A RESOLUTION APPROVING THE SALE AND PURCHASE AGREEMENT
FOR THE SALE OF TOWN-OWNED PROPERTY LOCATED ON WINCHESTER
BOULEVARD AT LARK AVENUE
OCTOBER 30, 2018
COORDINATION:
This report was coordinated with the Town Manager’s Office.
FISCAL IMPACT:
The Sale and Purchase Agreement that is attached to the Resolution would result in a one-time
surplus of funds in the approximate amount of $1,905,000 from the sale of this property.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Draft Resolution with Exhibit A, Draft Purchase and Sale Agreement