CITY COUNCIL AGENDA ITEM NO. 5
Meeting Date: October 9, 2007
Subject/Title: Approve the selection of Rodda Electric, Inc., as the
successful candidate to purchase 385 Carrol Court at Sunset Industrial
Complex based on Council-approved sales strategy criteria ranking
Prepared by: Gina Rozenski, Redevelopment Manager
Submitted by: Howard Sword, Community Development Director
Approve the selection of Rodda Electric, Inc., as the successful candidate
to purchase 385 Carrol Court at Sunset Industrial Complex based on
Council-approved sales strategy criteria ranking.
City Council authorized the purchase of approximately 40 acres of property
located at the northeast corner the Tresch and Sunset Roads.
City Council authorized various consultant contracts to master-plan and
prepare environmental documents for approximately 132 acres of City-owned
land northeast of Tresch and Sunset Roads to include a 49.2 acre Wastewater
Treatment Plant, 2.7 acre Solid Waste Plant, 37.7 Sports Park, 13.3 acre
Corporation Yard and a 28.4 acre Sunset Industrial Complex.
On November 26, 2002 the City Council approved a sales strategy for
property located at the Sunset Industrial Complex and adopted criteria for
the selection of successful candidates to purchase the subject property. The
sales strategy scoring was amended by the Council on April 25, 2006, by
adding 2 points for businesses located in the Redevelopment Project Areas.
From April 2004 to September 2007, fifteen escrows at Sunset Industrial
Complex have closed.
On June 12, 2007, the City Council approved the commission of updated
appraisal for 385 Carrol Court at Sunset Industrial Complex and directed
staff to undertake a fresh round of requests for purchase proposals as a
method to select a buyer for 385 Carrol Court, based on the adopted sales
The Sunset Industrial Complex was an economic development strategy
envisioned by the City and Redevelopment Agency to voluntarily relocate
members of the redevelopment project areas, our business community and
surrounding areas to a more appropriate location zoned for light and medium
The qualifications and identities of the buyers are of particular concern to
the City. For that reason, the City adopted a sales strategy ranking system
to fairly and objectively select qualified buyers that meet the economic
development objectives of Sunset Industrial Complex.
The escrow for 385 Carrol Court was canceled in June 2007 when Kendall
Automotive, as part of Brentwood Sunset 2010, Inc., assumed the Purchase and
Sale Agreement for 2010 Elkins Way. In June 2007, the City Council
authorized staff to re-appraise 385 Carrol Court and, based on the appraised
value, offer the sale of the parcel to interested buyers in accordance with
the adopted sales strategy criteria.
The appraisal dated August 3, 2007, reflected a value of $10.00/square foot
or $435,600 for the 1.0 acre parcel at 385 Carrol Court.
Early August 2007, staff prepared and mailed 51 sales offerings, and
advertised the availability of the parcel twice in the local newspaper.
Three purchase proposals were received, scored and ranked in accordance with
the sales strategy criteria that considered business location, type, job
generation and economic impacts. The evaluation of the three proposals is
reflected in the following table.
1 Rodda Electric, Inc. 32 points
2 WaterSavers Irrigation, Inc. 31 points
3 AJA Construction 21 points
The Land Use and Development Committee met on September 20, 2007, to review
the rankings of the purchase proposals. The Committee recommends the
selection of Rodda Electric, Inc., as the successful candidate. Rodda
Electric is quickly outgrowing its existing leased space at Sunset
Industrial Complex. The company currently has 38 employees, and anticipates
50 employees by next year, with an expectation of growing to 100 employees.
Rodda Electric provided a pre-qualification letter from Bay Area Development
Corporation for an SBA 504 loan, and has been named #300 of the “500 Fastest
Growing Businesses in America” by Entrepreneur Magazine, August 2007. Mr.
Rodda uses the local East Bay Works placement services for its 5-year
apprenticeship electrician program, and proposes to build the Planning
Commission-approved Vornhagen building which should result in a timely
design review application submittal. Mr. Rodda agrees with the terms and
conditions of the proposed purchase agreement. The purchase agreement for
Mr. Rodda will be brought to the Council for approval at a later date, if
The Committee recommends that the second candidate be offered the property
in the event the first candidate does not complete the transaction, and so
There is no fiscal impact associated with the selection of the successful
candidate to purchase 385 Carrol Court. The purchase agreement will be
brought to the Council for approval at a later date.