Report Prepared by: Craig J. Cornwell, City Attorney, City Attorney’s Department
Title
SUBJECT: A Resolution Authorizing the City Manager to Execute All Documents Necessary to Effectuate the Sale of the Real Property located at 415 W. 18th Street, Merced, California, commonly known as the Merced Federal Building (“Property”)
REPORT IN BRIEF
Adopt a Resolution authorizing the City Manager to execute all documents necessary to (1) allow the United States, acting through the General Services Administration, to exercise its reversionary interest in the property located at 415 W. 18th Street, Merced, California (APN 031-064-007), commonly known as the Merced Federal Building, and (2) facilitate the subsequent sale of the property to the Merced County Office of Education (“MCOE”).
RECOMMENDATION
City Council - Adopt a motion:
A. Authorizing the City Manager to execute all documents necessary to allow the United States, acting through the General Services Administration, to exercise its reversionary interest in the property located at 415 W. 18th Street, Merced, California; and,
B. Adopting Resolution 2026-04, a Resolution of the City Council of the City of Merced, California, approving the sale of the Merced Federal Building located at 415 w.18th street, Merced, California; and,
C. Authorizing the City Manager to execute all documents necessary to allow for the closing of escrow for the sale of the Property to Merced County Office of Education.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than as recommended by staff; or,
3. Deny; or,
4. Continue to a future meeting.
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the 2024-25 Adopted Budget.
DISCUSSION
Staff has evaluated the City’s current and anticipated operational needs and has determined that it is no longer in the public’s interest to continue to use and maintain the Property for Historic Monument purposes. Continued City ownership would require ongoing maintenance, compliance obligations, and significant capital expenditures.
Allowing the General Services Administration (GSA), acting on behalf of the United States, to exercise its reversionary interest is the most efficient and legally appropriate mechanism to enable the Property’s ownership transfer to MCOE. This approach is consistent with the terms of the 2007 Deed and avoids unnecessary transactional complexity or risk to the City.
Facilitating MCOE’s acquisition of the Property supports the ongoing requirement that the Property be used and maintained as a Historic Monument and aligns with broader community and intergovernmental cooperation objectives.
Staff therefore recommends that the City Council authorize the City Manager to execute all documents necessary to effectuate:
• The exercise of the United States’ reversionary interest through the GSA; and
• The subsequent closing of escrow for the sale of the Property to MCOE.
IMPACT ON CITY RESOURCES
Over the last several years expenses have outpaced rental revenue in the Bell Station. The General Fund has had to supplement in operating costs and required maintenance between $50,000-$100,000 per year. Allowing the GSA to facilitate the building to MCOE would result in substantial General Fund savings.
ATTACHMENTS
1. Resolution 2026-04