In 2015, City staff conducted an analysis of the Fire Department’s capital needs and determined that the construction of a new Fire Station No. 6 within Westhaven Park was optimal to meet the infrastructure needs of the Fire Department. Built in 1971 on the site of a converted single-family home located at the corner of Chapman Avenue and Debbie Lane, Fire Station No. 6 lacked the capacity to hold the necessary vehicles, equipment and manpower to adequately serve the large buildings and multi-story hotels within the area. As a result, on September 25, 2015, the City Council authorized the execution and delivery of the Lease Revenue Bonds, Series 2015A to refund and upsize the 2002 Certificates of Participation. This action produced funding for various public capital improvements including a replacement fire station for Fire Station No. 6 at Westhaven Park.

In November 2018, the City unveiled the new Fire Station No. 6 facility and officially began providing services to the community, resulting in the vacation of the old Fire Station No. 6 facility at 12111 Chapman Avenue. With this transition, City staff received direction from the City Manager to move forward with the sale of the old Fire Station No. 6 property. As such, City staff proceeded to have the property appraised and posted to LoopNet for sale at the appraised value of $525,000. The property listing remained on LoopNet for two months during which the City received two formal offers for the purchase of the property. The higher of the two offers, in the amount of $500,000 was submitted to and approved by the City Manager for City Council consideration.

Government Code section 37350 authorizes the City to dispose of real property for the common benefit.  The proposed disposition will benefit the City and the community by providing additional housing for a family while eliminating the City’s liability for maintenance and upkeep of the property and structure that will no longer be used for a fire station.

Approval of the Purchase and Sale Agreement will enable the City and the buyer to open escrow, allow a period for the buyer’s inspection of the property, and ultimate transfer of payment of the sale proceeds to the City and title to the buyers.  This period will further allow staff to present the proposed sale to the Planning Commission for review of the General Plan consistency of the sale.

The buyer has agreed to pay the City $500,000 to purchase the property.

It is recommended that the City Council:

• Approve the Purchase and Sale Agreement for the sale of the former Fire Station No. 6 property located at 12111 Chapman Avenue in the amount of $500,000.
• Authorize the City Manager to execute the Purchase and Sale Agreement on behalf of the City.

By:  Shawn Park, Sr. Administrative Analyst