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DISCUSSION The owners seek to sell the property and close escrow by the end of this year. The City's interest in acquiring the site stems from its adjacency to the Firehouse Arts Center's parking lot, the direct pedestrian access to Lions Wayside Park, potential to create a connection between First Street and the Firehouse Arts Center's parking lot, the potential to increase public parking in the Downtown, and the opportunity to improve the appearance of highly visible property along a main arterial at the entrance to downtown Pleasanton. The contingent purchase and sale agreement (Attachment 1) is the AIR CRE2 Standard Offer, Agreement and Escrow Instructions for Purchase of Real Estate. The document was reviewed and edited by the City Attorney's Office, the City Manager's Office, as well as by Mark Sweeney of WS Realty Advisors who is the broker representing the City who will be paid a reduced commission from the seller. Section 9 of the agreement includes various contingencies (environmental review, tenant leases and estoppels, relocation agreements for tenants, inspections, City Council approval, Planning Commission finding of General Plan conformity, etc.) which must be met or waived within designated time periods. With the sellers' interest in closing escrow by the end of 2018, after discussion in Closed Sessions on August 21st and November 6th, the City Manager entered into this contingent agreement, with one of the contingencies that the City Council approve the agreement at a public meeting. Other actions taken to address the contingencies include entering into professional services agreements with AEI Consultants for a Phase I environmental review of the property (cost is $2,650), and Autotemp, Inc. for relocation services for the six commercial tenants (consultant cost is $32,500). California Government Code §7262 et seq dictates the benefits which must be provided to displaced businesses when relocation is the result of a public agency acquisition and project, such as the current situation. State law also sets notice and other timing requirements before a displaced business is required to vacate. City staff will work with Autotemp to establish relocation benefit parameters for the tenants as required by state law. One of the contingencies for the purchase agreement is that tenants must enter into relocation agreements with the City. As information becomes available and contingencies addressed, staff is requesting that given the limited time between this meeting and the end of the year when sellers seek to close escrow, that the City Council: A. Ratify the City Manager's execution of the contingent purchase and sale agreement for the acquisition of 4363 and 4377 First Street (Attachment 1); B. Authorize the City Manager to administratively determine whether contingencies in the purchase agreement are satisfied or waived; C. Ratify professional services agreements for Phase I environmental review and relocation consultant services; AIR CRE is the organization for commercial real estate professionals in California that standardizes forms used by both buyers and sellers for real property transactions. Page 3 of 4