On September 24, 2019, the City Council adopted Resolution No. 9590-19 vacating the southern portion of Brady Way consisting of approximately .94 acres.  Rexford owns the parcel adjacent to the vacated portion of Brady Way located at 12821 Knott Street.

Street and Highways Code 8356 authorizes the City to sell and convey vacated portions of a street to the property owner of the adjacent parcel in cases such as the present case where the street that was vacated was previously part of a street that has been vacated.  Rexford will use the vacated portion of Brady Way to extend its adjacent property at 12821 Knott Street and use it for parking and landscaping to facilitate the expansion of the existing industrial building on the property. 

The City and Rexford have negotiated a purchase price based on $22 per square foot.  In addition, Rexford has agreed for a period of 10 years to install and maintain the landscaping on the remaining northern portion of Brady Way like-for-like the landscaping improvements on vacated portion as it will be developed per the land use approvals associated with the expansion of the building at 12821 Knott street.  Rexford will also maintain the pavement of the remaining northern portion of Brady Way for the same 10-year period.  The City will reimburse Rexford for the construction and maintenance costs.  All work and cost estimates will be reviewed and approved by the Public Works Director before any work is performed.

The attached purchase and sale agreement memorializes the property disposition transaction.  The attached agreement for construction and maintenance memorializes the maintenance of the remaining portion of Brady Way.

The disposition of the vacated portion of Brady Way will generate $900,020.00 in income to the City.  The maintenance costs of the remaining portion of Brady Way are not yet known.

It is recommended that the City Council:

• Approve the purchase and sale agreement and joint escrow instruction for the sale of the vacated portion of Brady Way, in the amount of $900,020.00, to Rexford Industrial Realty, LP.

• Approve the agreement for construction and maintenance of landscaping and street paving for the remaining portion of Brady Way, south of Stanford to the southern property line.

• Authorize the City Manager to execute the agreements and to approve modifications that are deemed necessary, and to execute all other documents necessary to close the real property transfer.