City approves lease with option to buy Truxton Towers to relocate police and consolidate offices

The Bakersfield City Council voted on March 11 to authorize a lease of the Truxton Towers property at 1430–1440 Truxton Avenue with an option to buy the building, approving staff to begin due diligence and to move forward as presented.

City staff framed the acquisition as a fiscal and operational opportunity. The deal as presented includes a five‑year lease with an initial base monthly rent shown in the presentation as $34,600 (plus utilities and common area charges); an option to purchase the property was described as $13.6 million if closed by Aug. 15, 2026 and a higher amount if the purchase is delayed into 2027. Staff emphasized the property's 292‑stall parking structure and proximity to the courthouse and existing municipal buildings as key public‑value components. City negotiators said some floors would require little change to accommodate police investigative and administrative functions.

Supporters on council said the move would free money now spent on other downtown leases, consolidate public safety functions near other city services and the courthouse, and stimulate downtown activity by bringing more staff back into the core. Questions from several council members focused on deal risk, timing and documentation: multiple members asked for the seller's profit-and‑loss and the existing lease agreements and asked staff to supply those documents promptly. Staff said they would provide P&L and lease documentation within weeks and that larger vendor contracts for due diligence would be returned to council for approval where required.

Council Member Basher moved to continue the item to get more documentation; that motion failed. Council Member Smith then moved to approve the lease with option to purchase and begin due diligence as staff presented. Smith's motion passed; the meeting record notes Council Member Weir was absent and Council Member Bashier Tash voted no.

Staff described two purchase windows: (a) a faster close with the lower price if all due diligence and closing happens by mid‑August 2026; or (b) a later close (and a higher purchase price) if the city exercises the option after that date. Staff proposed contracting third‑party structural, elevator, roof and building systems experts to perform vendor due diligence and requested authority to begin that work; they cited the potential short‑term savings compared with continuing to lease expensive office space elsewhere in the city. Staff estimated the parking structure alone would be costly to replicate and noted future rental revenue potential from existing tenant spaces.

Council discussion underscored competing priorities: some members urged caution and more documentation before a final purchase; others emphasized risk of losing the opportunity if negotiations drag on. Staff acknowledged that a significant delay could raise costs or risk the seller withdrawing. The council approved moving forward with the lease and due diligence (Smith's motion). Staff committed to bring the detailed P&L, existing lease copies, and procurement steps back to council within weeks and to return for final appropriation decisions associated with any purchase.

Next steps: staff will begin the contracted due diligence work and deliver the requested seller financials and lease documentation to council; any appropriation for purchase (if pursued) and large vendor contracts will return to council for formal appropriation and approval.