REPORT/RECOMMENDATION TO THE BOARD OF DIRECTORS
OF SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT
AND RECORD OF ACTION
January 9, 2024
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
DAN MUNSEY, Fire Chief/Fire Warden, San Bernardino County Fire Protection District
SUBJECT
Title
Termination of Purchase and Sale Agreement for Vacant Land in Yucca Valley
End
RECOMMENDATION(S)
Recommendation
Acting as the governing body of the San Bernardino County Fire Protection District:
1. Approve the termination of Purchase and Sale Agreement and Joint Escrow Instructions with Dana J. Henry, a married man as his sole and separate property, Agreement No. 23-948, for the contingent purchase of certain vacant land, consisting of approximately 3.16 acres located on the southwest corner of Twentynine Palms Highway and Trojan Lane in the Town of Yucca Valley (Assessor’s Parcel Number 0587-361-10) at a cost of $100.
2. Authorize the Director of the Real Estate Services Department to execute and deliver a notice to seller to exercise the San Bernardino County Fire Protection District’s right to terminate Purchase and Sale Agreement and Joint Escrow Instructions, Agreement No. 23-948, Escrow Cancellation Instructions to the escrow agent to terminate the associated escrow, and any additional escrow documents necessary to complete the termination, subject to County Counsel review.
(Presenter: Terry W. Thompson, Director, 387-5000)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The cost associated with terminating the Purchase and Sale Agreement and Joint Escrow Instructions with Dana J. Henry, a married man as his sole and separate property, Agreement No. 23-948 (PSA) and associated escrow is $100, which is the independent consideration for the San Bernardino County Fire Protection District (SBCFPD) right to terminate the PSA during the due diligence period. Sufficient appropriation is available in both the 2023-24 Capital Improvement Program (CIP) (WBSE 10.10.1268) and the SBCFPD South Desert Regional Service Zone budgets.
BACKGROUND INFORMATION
This item will authorize the Director of the Real Estate Services Department (RESD) to execute a termination notice under the PSA, Escrow Cancellation Instructions, and any additional documents required to terminate the PSA and associated escrow, to be delivered on or before January 17, 2024, which is the expiration of the due diligence period under the PSA.
On September 12, 2023 (Item No. 73), the San Bernardino County Board of Supervisors (Board), acting in its capacity as the governing body of SBCFPD, approved the PSA for the contingent acquisition of certain vacant land, consisting of approximately 3.16 acres located on the southwest corner of Twentynine Palms Highway and Trojan Lane in the Town of Yucca Valley (Assessor’s Parcel Number 0587-361-10) (Property), from Dana J. Henry, a married man as his sole and separate property, for the purchase price of $550,000 plus an independent consideration payment of $100 and escrow expenses, title fees, and due diligence costs estimated to be $25,000, for a total estimated cost of $575,100. SBCFPD staff had identified the Property as a preferred site for a replacement Yucca Valley Fire Station. RESD opened escrow on September 19, 2023. Due diligence inspections commenced thereafter. The PSA contains a right for SBCFPD to terminate the PSA should it not be satisfied with the Property due to its inspections by sending a termination notice to the seller on or before January 17, 2024, which is the expiration date of the due diligence period.
On October 11, 2023, RESD, Project and Facilities Management Department, and the County Administrative Office met with the Town of Yucca Valley (Town) leadership, at which time the Town Manager explained that the proposed replacement Fire Station site plan for the Property would require a raised center median along Twentynine Palms Highway in order to comply with projected traffic circulation demands in the Town. However, this would restrict a left turn out from the Property and suppress SBCFPD response times. The parties explored multiple options to accommodate the Town’s circulation needs, as well as SBCFPD’s site functionality, but the Property was ultimately deemed infeasible as the preferred site for the replacement fire station. Consequently, SBCFPD and RESD are requesting the Board’s approval to terminate the PSA and escrow for the Property and to authorize the Director of RESD to execute and deliver the termination notice and escrow cancellation instructions.
Approval of this item will also authorize the Director of RESD to execute any additional escrow documents to complete the termination, subject to County Counsel review. The Director of RESD will not be authorized to execute any documents that would bind SBCFPD to any actions not contemplated by, or arising from, the transaction, which is the subject of these recommendations.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Agnes Cheng, Deputy County Counsel, and Scott Runyan, Principal Assistant County Counsel, 387-5455) on December 19, 2023; San Bernardino Fire Protection District (Dan Munsey, Fire Chief/Fire Warden, 387-5952) on December 14, 2023; Finance (Tom Forster, Administrative Analyst, 387-4635, and Garrett Baker, Administrative Analyst, 387-3077) on December 19, 2023; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on December 19, 2023.
(TJS 893-0340)