02 Staff Report - Dittos Lane Vacant Land Purchase Agreement
PREPARED BY: Arn Andrews
Assistant Town Manager
Reviewed by: Town Manager and Town Attorney
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 06/02/2020
ITEM NO: 2
DATE: May 28, 2020
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adopt a Resolution Approving the Vacant Land Purchase Agreement and First
Amendment to the Agreement for the Sale of Town-Owned Property Located
on 20 Dittos Lane, Authorizing the Town Manager to Execute all Documents
Needed to Complete the Transaction in a Form Acceptable to the Town
Attorney.
RECOMMENDATION:
Adopt a Resolution (Attachment 1) approving the Vacant Land Purchase Agreement
(Attachment 2) and First Amendment to the Agreement (Attachment 3) for the sale of Town-
owned property located on 20 Dittos lane, authorizing the Town Manager to execute all
documents needed to complete the transaction in a form acceptable to the Town Attorney.
BACKGROUND:
On October 16, 2018, the Town Council approved an exclusive negotiating agreement with
Sarah Chaffin for the siting and development of affordable teacher housing at 20 Dittos Lane.
Since that time, the developer has been engaging in the Town’s planning and development
application process. On February 11, 2020, the developer received approval for the
Architectural and Site application and Subdivision Application which included requests for a lot
line adjustment, subdivision of one lot into three, and construction of two single-family
residences on property zoned R1-D. In addition, the developer has submitted the grading
permit application to the Town.
With the developer having completed all the initial requisite elements of the Town’s planning
and development process, the Town is prepared to finalize the contracting phase of the
property disposition.
PAGE 2 OF 3
SUBJECT: 20 Dittos Lane Vacant Land Purchase Agreement
DATE: May 28, 2020
DISCUSSION:
As previously stated, completion of this transaction will result in the developer building
affordable housing on the site as illustrated in Exhibit A of the First Addendum. Provided below
are the salient elements of the Vacant Land Purchase Agreement (Agreement) and First
Addendum to the Agreement.
Agreement/Amendment Elements Comments
Purchase Price The site is being sold to the developer for $1.00. The
Town is responsible for title insurance, escrow, and other
related closing fees (estimate $2,000).
Property Improvements Two (2) single-family residential units and two (2)
accessory dwelling units.
Property Easements In exchange for ingress easement, egress easement,
emergency vehicle easement, public utility easement,
and sanitary sewer easement, certain lands will be
granted to 18 Dittos Lane.
Below Market Housing Guidelines This project would provide affordable housing up to
120% of Area Median Income with a preference for
teachers or school district staff.
Deed Restrictions 55 years with an opportunity to extend for the longest
feasible time.
Town Loan Agreement Town agrees to loan Buyer the sum of $600,000.00, with
zero interest, amortized over 55 Years from the Town
Below Market Housing Fund.
CONCLUSION:
The sale of 20 Dittos Lane will result in the development of four (4) affordable housing units
with a preference for teachers and school district staff.
COORDINATION:
This staff report was coordinated with the Town Attorney.
FISCAL IMPACT:
Traditional seller fees associated with property transactions can be absorbed by the Town
Manager’s Office.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
PAGE 3 OF 3
SUBJECT: 20 Dittos Lane Vacant Land Purchase Agreement
DATE: May 28, 2020
Attachments:
1. Draft Resolution
2. Vacant Land Purchase Agreement and Exhibit A
3. First Addendum to Vacant Land Purchase Agreement