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Consider adoption of a resolution approving the agreement for the Purchase and Sale of Real Property and Joint Escrow Instructions with CF Suisun 1, LLC for the transfer of property located at 701, 711, 713, and 717 Main Street, City of Suisun City (Solano County Assessor's Parcel Numbers 0032-130-010; 0032-130-030; 0032-130-040; and 0032-130-060), and directing transmittal of the Oversight Board's action to the California Department of Finance pursuant to Health and Safety Code section 34180(j)
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Published Notice Required? Yes _X__ No __ _
Public Hearing Required? Yes ____ No _X _
RECOMMENDATION:
It is recommended that the Solano Consolidated Oversight Board adopt a resolution approving the agreement for the Purchase and Sale of Real Property and Joint Escrow Instructions with CF Suisun 1, LLC for the transfer of property located at 701, 711, 713, and 717 Main Street, City of Suisun City (Solano County Assessor's Parcel Numbers 0032-130-010; 0032-130-030; 0032-130-040; and 0032-130-060), and directing transmittal of the Oversight Board's action to the California Department of Finance pursuant to Health and Safety Code section 34180(j).
DISCUSSION:
Oversight Board Authority and Required Notice
The Successor Agency has not received a Finding of Completion from the California Department of Finance pursuant to Health and Safety Code section 34179.7. Accordingly, disposition of former redevelopment agency property is governed by Health and Safety Code sections 34177(e) and 34181(a), which require the Successor Agency to dispose of the assets of the former redevelopment agency as directed by the Oversight Board, expeditiously and in a manner aimed at maximizing value.
Pursuant to Health and Safety Code section 34181(f), an action taken under section 34181(a) must be approved by resolution of the Oversight Board at a public meeting held after not less than ten (10) days' notice to the public of the specific proposed action. Notice of this proposed action was published in the Daily Republic and posted on the Successor Agency's and the Oversight Board's websites.
The Successor Agency to the Redevelopment Agency proposes to dispose of properties to buyer CF Suisun 1 LLC, a Delaware limited liability company. The subject properties include 701 Main Street (APN: 0032-130-010), 711 Main Street (APN: 0032-130-030), 713 Main Street (APN: 0032-130-040), and 717 Main Street (APN: 0032-130-060), totaling approximately 0.22 acres, which were deemed exempt surplus land on March 17, 2026, by the Successor Agency (Resolution No. SA2026-02). That determination was made pursuant to Government Code section 54221(f)(1)(B), on the basis that each parcel is less than one-half acre in area and is not contiguous to land owned by a state or local agency used for open-space or low- and moderate-income housing purposes. Notice of the determination was provided to the California Department of Housing and Community Development not less than 30 days prior to disposition. The purchase and sale agreement (PSA) is included as Attachment B, Purchase and Sale Agreement and Joint Escrow Instructions. Key terms include:
Addresses: 701 Main Street, 711 Main Street, 713 Main Street, and 717 Main Street
Stated Purchase Price: $174,500
Demolition Credit to Buyer at Close of Escrow (PSA Section 10.2): $59,500
Net Cash Consideration to the Successor Agency: $115,000
Deposit Amount: $10,000
Independent Consideration: $100 (non-refundable)
Expected Closing: December 2026, subject to Oversight Board approval and California Department of Finance review (see Successor Agency Approval Process below)
Existing Conditions
The properties contain structures which have been vacant for many years and in varying states of disrepair, some to the point of being “red” and/or “yellow” tagged, therefore, unsafe to occupy. Due to the deteriorated condition of the properties, many of which are considered largely uninhabitable and, in a state, where rehabilitation is not economically feasible, the Successor Agency is applying a proration, or “discount,” of approximately $59,500 to account for a portion of anticipated demolition and site preparation costs.
As a result of existing conditions, the net cash consideration payable to the Successor Agency at close of escrow is $115,000, which reflects the demolition credit amount described above. Net proceeds will be transmitted to the Solano County Auditor-Controller for distribution to the affected taxing entities in accordance with Health and Safety Code sections 34177(e) and 34188. No portion of the proceeds is retained by the Successor Agency or by the City of Suisun City off the top. The City will receive only its proportionate share as one of the affected taxing entities, determined by the applicable tax rate area.
Consideration and Value
Health and Safety Code sections 34177(e) and 34181(a) require that disposition be carried out in a manner aimed at maximizing value. An appraisal of the Properties prepared by David J. Vargas - Real Estate Appraisals, dated January 30, 2026, concluded a market value of $174,500. The negotiated consideration, taking into account the condition of the existing improvements and the estimated cost of demolition and site preparation, is consistent with that opinion of value. The valuation is included as Attachment D. The $211,500 value in the appraisal report includes 707 Main Street, which is not a successor agency property and is not included in this board item.
Successor Agency Approval Process
If approved, the Successor Agency- owned properties would close escrow later than the Housing Authority- and City-owned properties due to the requirement for review and approval by the Oversight Board, the regulatory body responsible for overseeing the disposition of former redevelopment agency properties. The Suisun City Successor Agency has not received a Finding of Completion from the California Department of Finance (DOF). As a result, the full statutory approval sequence under Health and Safety Code § 34177(e) applies. This sequence involves three steps that are outside of the City’s scheduling control:
Step 1 (Oversight Board Approval): The Solano Consolidated Oversight Board must convene and approve the specific sale by resolution. The Oversight Board is a local legislative body subject to the Brown Act and must provide proper agenda notice for its own meeting. Its meeting schedule is not controlled by the City. This matter has been calendared for the Oversight Board’s regular meeting of September 10, 2026.
Step 2 (DOF Submission and Five-Business-Day Review Window): Following Oversight Board approval, the adopted resolution must be submitted to DOF electronically. The resolution does not become effective for five business days, during which DOF may request review.
Step 3 (DOF 40-Day Review Period, if triggered): If DOF requests review, it has 40 days from the date of that request to approve the Oversight Board action or return it to the Oversight Board for reconsideration. If returned, the Oversight Board must resubmit a modified action, which is again subject to DOF review. The Successor Agency PSA closing cannot occur until DOF has approved the Oversight Board’s action or the five-business-day window has passed without a review request.
Accordingly, the PSA reflects these events and anticipates a December 2026 closing date for the Successor Agency parcels to accommodate the required process. Closing escrow is contingent on timely Oversight Board approval and DOF review. If DOF requests review and the review will not be completed by December 2026, the parties could amend the contract timeframe to extend closing into 2027, or they can terminate the PSA.
Development Agreement and Repurchase Option
The PSA also contains a requirement that the buyer enter into a Development Agreement with the City within 24 months from close of escrow for the development of the properties. The PSA provides that the City retains all discretion in its consideration of a DA. The PSA provides the City the right to repurchase the properties in the event the buyer does not perform on the timelines to enter into a Development Agreement. Said Repurchase Option lasts for one year following this 24-month timeline and has predetermined price that includes reimbursement for actual demolition costs incurred by buyer above any the proration demolition credit and 3% simple interest commencing on the close of escrow until the repurchase occurs.
The PSA contains other standard terms and conditions, including but not limited to title review, inspection periods, representation and warranties, conditions to close, and indemnities.
Environmental Review
The proposed sale is categorically exempt from the California Environmental Quality Act under State CEQA Guidelines section 15312 (Class 12, Surplus Government Property Sales). The Properties are located in the downtown commercial core of Suisun City and outside the boundaries of the Suisun Marsh as defined by Public Resources Code section 29101 and depicted on the Suisun Marsh Protection Plan Map (BCDC, December 1976), and are therefore not located within an area of statewide, regional or areawide concern identified in State CEQA Guidelines section 15206(b)(4).
Staff has separately considered the exceptions to categorical exemptions set forth in State CEQA Guidelines section 15300.2. None of the four structures is listed in or eligible for listing in the California Register of Historical Resources, included in a local register of historical resources, or otherwise a historical resource within the meaning of Public Resources Code section 21084.1 and State CEQA Guidelines section 15064.5. The exception in Guidelines section 15300.2(f) therefore does not apply. Staff further finds that the successive dispositions of City, Housing Authority and Successor Agency property in the downtown area do not result in a cumulative impact within the meaning of Guidelines section 15300.2(b), and that no unusual circumstances within the meaning of Guidelines section 15300.2(c) are present.
Approval of the PSA authorizes a change of ownership only. Section 7.1(iv) of the PSA makes the issuance of demolition permits a condition to the Buyer’s obligation to close escrow; the issuance of any demolition permit is a separate discretionary action of the City that will be subject to its own environmental review at the time application is made. Nothing in this action commits the City or the Successor Agency to issue any demolition permit or to approve any future development.
FINANCIAL IMPACT:
The stated purchase price is $174,500. At close of escrow the Buyer will receive a credit of $59,500 for demolition and site preparation costs pursuant to Section 10.2 of the PSA, resulting in net cash consideration to the Successor Agency of $115,000. Net proceeds, after payment of the Successor Agency’s share of escrow and closing costs, will be transmitted to the Solano County Auditor-Controller for distribution to the affected taxing entities pursuant to Health and Safety Code sections 34177(e) and 34188. The Oversight Board does not receive proceeds of the sale. The City of Suisun City will receive only its proportionate share as one of the affected taxing entities.
ALTERNATIVES:
The Oversight Board could choose not to approve the Agreement for the Purchase and Sale of Real Property with CF Suisun 1, LLC. This is not recommended as dissolution law states that successor agencies must dispose of their properties in an expeditious manner. The Oversight Board could also continue the matter to a subsequent meeting to permit additional information to be provided. Because Section 1(i) of the PSA establishes an outside closing date of December 1, 2026, subject to extension of up to sixty (60) days under Section 7.3(iii) if Oversight Board or Department of Finance review is not complete, a continuance beyond the Board’s next regular meeting could require the parties to amend or terminate the agreement.
OTHER AGENCY INVOLVEMENT:
On May 26, 2026, the Successor Agency to the Redevelopment Agency of the City of Suisun City considered the proposed transfer of the Properties to CF Suisun 1 LLC at a public meeting and unanimously adopted Resolution No. SA 2026-04 approving the Agreement for Purchase and Sale and Joint Escrow Instructions, subject to approval by the Oversight Board and completion of any review by the Department of Finance.
Pursuant to Health and Safety Code section 34180(j), this staff report and all accompanying documents have been submitted to the Solano County Administrative Officer, the Solano County Auditor-Controller, and the California Department of Finance concurrently with their submission to the Oversight Board.