The city’s redevelopment agency is on the verge of entering a
lease agreement with an option to purchase downtown property at 95
East Third Street, commonly known as
”
Depot Center.
”
The city’s redevelopment agency is on the verge of entering a lease agreement with an option to purchase downtown property at 95 East Third Street, commonly known as “Depot Center.”
If the city council acting as the RDA board approves purchase of the $1.7 million option at tonight’s meeting, it will have the exclusive right to purchase the property from Llagas Valley Investments for about $2 million more before April 30, 2016.
The price of $3.7 million was supported by a May 2009 appraisal conducted by MAI, according to a city staff report.
Partners in Llagas Valley Investments, the property’s owner, are Gary Walton and Gene Woerner.
The property is about an acre, and is at the intersection of East Third and Depot streets. Occupying the property now are tenants BookSmart, Jesus restaurant, Peking restaurant and Cherisse’s hair salon.
Currently holding the option, which the city plans to purchase, is Depot Center Morgan Hill Inc. One of the partners of the lease holder is BookSmart co-owner Brad Jones.
The property is part of the city’s Downtown Specific Plan to redevelop downtown Morgan Hill, mostly with RDA funding. The redevelopment plan aims to consolidate residential, retail, offices and parking options with new development in the 18-block downtown area.
If the council secures the lease option for 95 East Third Street, the city will immediately begin efforts to solicit a potential developer to sell the property to, according to City Manager Ed Tewes. City staff have already heard from potential builders who are interested in developing the property.
At Wednesday’s meeting, the council will vote on whether or not to spend $1.7 million on the lease option. The money has already been budgeted in the RDA’s economic development fund.
The meeting will take place 7 p.m. Wednesday, at City Hall’s council chambers, 17555 Peak Ave.
