Online auction yields $2.09M top bid for 10-acre Redberry parcel; staff seeks authorization to sell and reinvest proceeds in nearby parks

Lisa Davis, the city's real estate manager, summarized results of an online auction for a 10-acre city-owned parcel at 8130 East Redberry and said staff will seek authorization to proceed with sale paperwork at the upcoming council meeting.

Davis said the site was purchased in 2003 for $630,000 with voter-approved bond funds and later annexed. The property was appraised at $1,550,000 and the auction (31 minutes, 56 total bids) produced a highest offer of $2,090,001 from the bidder identified as Reserve 100 (staff said Reserve 100 is Blandford Homes). A $77,500 cashier'style deposit was required to register for the auction.

"We purchased it back in 2003 for $630,000 with voter approved bonds," Davis said. "The minimum bid was the $1,550,000, which was the appraised value... the highest bid was $2,090,001."

Staff said the recommended sale would include a development agreement and typical site conditions: compliance with the 2050 General Plan, half-street improvements, drainage requirements, and possible septic under a development agreement if necessary. Councilmembers asked about whether the bond funds used to buy the site would be returned to park accounts in the same neighborhood; staff said the intent is to reinvest the bulk of proceeds into nearby parks and work with the Parks Master Plan to determine improvements.

Davis told Council the high bidder is eager to sign and has provided the original deposit and is preparing the remaining escrow funds; if the top bidder declines, staff can proceed to the next-highest bidder. Staff asked Council to authorize sale and allow the city manager to sign purchase and development agreements as needed when the item comes to the Council meeting.

Next steps: staff will present an authorization item at the Council meeting for formal approval and execution of purchase documents.