Discussion and possible action to: (a) authorize the acquisition of a 2,324 square foot commercial building located on city-owned property at 8866 West Thunderbird Road - APN 200-61-018K; and (b) approve a budget adjustment in the amount of $275,000 from the General Fund Contingency account to 1000-0352-540000.

The city seeks to acquire this commercial building as result of a default on a ground lease agreement with the lessee.  This asset located on the property of Rio Vista Park will be put into the Parks and Recreation system to be used for city programming. The city has engaged in negotiations for the acquisition of the 2,324 SF building. The appraised value of the building is $270,000. City staff will continue negotiations with the property owner to extend an offer to purchase the building for appraised value, plus customary closing costs of $5,000, for a total purchase price of $275,000.

• September 25, 2023 – City completed appraisal.

Staff recommends that the Mayor and City Council authorize the transfer of funds from General Fund Contingency to acquire the building described.

The cost associated with the building acquisition totals $270,000, plus customary closing costs, based on a recent appraisal. If approved, acquisition will total $275,000 from General Fund Contingency.