CDC - Item 2 - Disposition of 9734 AbileneTO: HONORABLE CHAIRMAN
,AND MEMBERS
ROSEMEAIp COMMUNITY DEVELOPMENT COMMISSION
FROM: BILL CROWEFA~l, EXECUTIVE DIRECTOR
DATE: March 20, 2003
RE: DISPOSITION OF 9734 ABILENE
Recently, the Community Development Commission authorized a contract with Elizabeth Kho of
Coldwell Banker to represent the Commission in the sale of 9734 Abilene. The Commission
acquired this property to eliminate a dog kennel use and for the long-range purpose of combining the
property with the surrounding properties to help induce redevelopment of the larger area.
Subsequent to the acquisition, a Request For Proposals was distributed but the process seeking
qualified developers was not successful in identifying suitable tenants to support retail development
and the Commission approved marketing the property for residential use. The value of the property
was estimated at between $200,000 and $215,000 by the realtor's office.
Elizabeth Kho has, to date, secured eleven offers on the property ranging from $170,000 to $215,000.
The two highest offers are both at $215,000. One is from a buyer seeking to use the property for
residential purposes and the second offer is from a buyer seeking to demolish the residence and
combine the property with the commercial property they own to the south. This commercial offer is
from Mr. Jing Jiang of Jiang's Valley LLC. Mr. Jiang currently owns approximately two acres
adjacent to the south of this site that extends to Valley Boulevard. The offer is based on an all cash
offer at closing and is clearly the strongest offer with the least financial risk to the Commission.
Attached, please find a summary of the submitted offers secured by Elizabeth Kho.
Although the original idea in marketing the property was to market the property for residential use,
the property is zoned for commercial use and, in the long term, residential use is not the highest and
best use of the property. The staff believes that Mr. Jiang's offer to acquire the property and
combine the property with commercial property to the south presents an opportunity to bring the area
into conformance with the zoning and General Plan at an earlier date. This is particularly true
because Jiang's Valley has indicated a desire to purchase several other parcels in the immediate area.
Mr. Jiang is currently in negotiations with other commercial property owners on property adjacent to
his. Consequently, staff believes that their offer is the best financial and land use option for the
Commission. Staff will also add a condition to the escrow instructions that will require Jiang's
Valley to demolish all above ground improvements on the property within sixty days.
COMMISSION AGENDA
MAR 2 5 2003
ITEM No. oC
RECOMMENDATION
It is recommended that the Commission direct Counsel to prepare the necessary disposition
documentation and direct the Executive Director to schedule the matter for a joint public hearing of
the City Council and Community Development Commission.