Item Coversheet
CC #: 2047
File #: 0209
Title:505 Royer Street and 300 Taylor Street - Purchase and Sale Agreement

  Wayne Wiley 916-774-5283


Meeting Date: 5/11/2022

Item #: 8.1.


Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute the Purchase and Sale Agreement and all escrow-related documents and agreements with Bridge Housing Corporation regarding the real property located at 505 Royer Street and 300 Taylor Street.


The subject site is located within the Downtown Roseville Specific Plan (DTSP) and consists of two parcels totaling 1.17 acres (located at 505 Royer Street and 300 Taylor Street). The property is zoned Commercial/Special Area – Downtown (CM/SA-DT), which allows for various uses, including public/quasi-public, commercial, offices, and multifamily residential. The project site was previously owned by Placer County and was last utilized for the Placer County Superior Courthouse in 2009, prior to being sold to the City of Roseville.  After acquiring the property in 2014, the City explored options for repurposing the building in support of ongoing economic development efforts; however, the necessary improvements to upgrade the building were cost-prohibitive. 


There are currently no future City needs identified for this site, and the City Council declared the property as surplus on October 23, 2019. At that time, an appraisal noted that the property's highest and best use was as a vacant parcel. Accordingly, the City demolished the building in the Spring of 2021 to help incentivize future development and prepare for selling the property.  An updated appraisal was prepared at that time (see Attachment 2).  


Pursuant to recent State legislation (Assembly Bill 1486), the disposition of City surplus property must be offered to housing sponsors/other specified recipients before releasing a Request for Proposals (RFP) to sell a property. Consistent with this legislation and Government Code Sections 54220 et seq., starting on March 18, 2021, the City provided the required notification to the State of California’s Housing and Community Development (HCD) Department and other required entities (see Attachment 3). In response to that notification, on May 21, 2021, Bridge Housing Corporation expressed an interest, through a Notice of Interest, in purchasing the property for the development of a senior affordable housing project for residents with income levels between 30% - 50% of Placer County Area Median Income (AMI) (see Attachment 4).


Subsequently, the City entered into negotiations, consistent with HCD guidelines, with Bridge Housing Corporation to identify the feasibility of the proposed project and has come to mutually agreeable terms regarding the disposition of the property.  At this time, the City wishes to move forward with the sale of the property as outlined within this report and consistent with the Purchase and Sale Agreement (see Attachment 1), subject to approval, of HCD (as required by state law).   

Project Description

The proposed development plan includes a 55,506 square-foot affordable senior apartment building at 505 Royer Street, ranging from three to five stories in height.  The natural topography of the parcel has been integrated into the project design to limit impacts on the adjacent properties.  The building will total three stories adjacent to the single-family residences to the west (totaling 40 feet in height) and will total five stories interior to the site closest to Dry Creek (totaling 58 feet in height). The development will include 69 units consisting of 8 studios, 60 1-bedrooms, and one 2-bedroom unit. The ground floor of the building will consist of a community room for residents, a courtyard, and property management offices that front onto Royer Street. The adjacent parcel at 300 Taylor Street will include a 61-space parking lot (resulting in a parking ratio of .88 per unit). The project site will also have a garden area with raised planter beds providing outdoor recreation space for residents (see Attachment 5).


In 2021, the City Council adopted a resolution to establish Objective Design Standards (ODS) to streamline the construction of qualified, affordable housing projects in compliance with State housing legislation. Qualified projects are subject to a non-discretionary ministerial permit process and can forego the City’s design review process and, upon ODS certification, may proceed directly to building permit and engineering permit review. As proposed, this project qualifies for the ODS process and will be evaluated against the ODS checklist, with no further design review required.  In addition, because the project qualifies for the ODS process, it is exempt from the California Environmental Quality Act (CEQA).  However, due to the project’s use of federal funds, National Environmental Policy Act (NEPA) requirements will apply to this project, and HCD will be the NEPA lead agency to ensure adherence to federal requirements. 

Purchase and Sale Agreement

Based on negations with Bridge Housing Corporation, City staff proposes moving forward with a Purchase and Sale Agreement. The Purchase and Sale Agreement identifies the terms and conditions of the property sale. Conditions of particular note are outlined below:


  1. Purchase Price – The Purchaser will purchase the property at $650,000.
  2. Escrow Deposit – Within five days of escrow opening, the Purchaser shall deposit $35,000 as an earnest money Initial Deposit.  An additional $65,000 shall be deposited in escrow within three business days following delivery of the Purchaser’s Approval Notice (120 days from the commencement of this agreement).
  3. Liquidated Damages - The total Initial Deposit amount shall be non-refundable in the event that the Closing fails to occur due to the default of the Purchaser. 
  4. Finance Terms – Typical of affordable housing funding structures, the project  financing will consist of various Federal, State, and local funding sources and private equity. 
  5. Closing Conditions – The close of escrow shall occur no later than January 31, 2024, and only after Purchaser has secured and allocated full financing of the project.


Pursuant to the approval of the Purchase and Sale Agreement, the Purchaser will work on the following during the escrow: 1) receiving approval from HCD; 2) securing project financing through a variety of affordable housing funding sources; and 3) securing the necessary NEPA approvals to begin construction within a month of closing on the property.

The proceeds from the property sale (totaling $650,000 less escrow fees and taxes) will be deposited into the City’s Strategic Improvement Fund (SIF) in FY2023-24 based on the anticipated close of the escrow date. No General Fund resources will be used as part of this project.

Economic Development / Jobs Created


The sale of the subject property for an affordable housing project will help catalyze downtown development and result in several hundred jobs (related to construction, service, and professional industries). The anticipated development will also result in approximately $32 million in capital investment. In addition, residents living at this site will patronize local businesses to support downtown revitalization efforts further. 

Staff also finds the proposal to be in the City's best interest for the following reasons:


  • The disposition of the property is consistent with the State of California Housing Community Development requirements of supporting affordable housing initiatives (i.e., the project will help the City meet the RHNA obligation);
  • The development proposal is consistent with the intent of the DTSP;
  • The proposed project would provide for a housing mix in the City’s downtown core;
  • The City has no plans to utilize the property for governmental purposes, and the sale of the site would remove the City’s obligations to manage real property; and
  • The project does not include any public financial or ownership participation and will be financed with private equity.


Based on the analysis noted within this report, Council can make the finding (per Roseville Municipal Code (RMC) Section 4.12.110(B)) that the sale and development of the property are in the best interest of the City.


The proposed development plan qualifies for the ODS process and is therefore exempt from California Environmental Quality Act (CEQA), and no further environmental analysis is required.  The proposed project involving the sale of surplus property is not located in an area of statewide, regional, or area-wide concern and is an activity categorically exempt from CEQA as a Class 12 Exemption (State CEQA Guidelines Section 15312).  The Exemption has been prepared, and no further CEQA action is required (see Attachment 6).


Goal A - Remain fiscally responsible in a changing world

Goal D - Enhance economic vitality

Respectfully Submitted,

Wayne Wiley, Economic Development Manager

Melissa Anguiano, Economic Development Director 

Dominick Casey, City Manager

Resolution 22-138
Attachment 1 - Purchase and Sale Agreement
Attachment 2 - Property Appraisal
Attachment 3 - Surplus Property Notification Letter
Attachment 4 - Bridge Housing Letter of Interest
Attachment 5 - Project Design
Attachment 7 - Proof of Publication