BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Refund of Purchase Deposit from Sale of District-Owned Residential Surplus Property Located at 110 Sunset Avenue, San Jose, (Assessor's Parcel Number 481-21-055) (District Real Estate File 4026-131.1) (District 6) (San Jose).
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RECOMMENDATION:
Recommendation
Approve the refund of a $60,000 purchase deposit from the sale of District residential surplus property located at 110 Sunset Avenue in San Jose to Mr. Jasraj Bhatia due to extenuating circumstances related to the federal government shutdown.
Body
SUMMARY:
On September 27, 2016, the Board adopted Resolution No.16-71 (Attachment 1) declaring several District parcels surplus property including 110 Sunset Avenue in San Jose.
On June 20, 2018, District staff conducted a public oral auction of the subject property. There were five (5) registered bidders in attendance and each bidder posted a deposit of $60,000. The minimum bid, was established at $600,000. Oral bids were received and Mr. Jasraj Bhatia submitted the highest bid of $665,000 for the property. The highest bidder was required to deposit $60,000 toward the purchase of the subject property with the balance due on the close of escrow.
On August 28, 2018, the Board approved the sale of the subject property to Mr. Bhatia (Buyer) and the Purchase and Sale Agreement (PSA) was fully executed on August 30, 2018 (Attachment 2). The close of escrow date in the PSA was set for November 30, 2018.
On November 29, 2018, Mr. Bhatia requested a 45-day extension in order to secure the necessary funds, which includes the balance of the Purchase Price and closing costs. On November 30, 2018, the District granted a 45-day extension and the close of escrow was extended to January 15, 2019.
On January 9, 2019, the District received a request from Mr. Jasraj Bhatia's attorney, Eric F. Hartman, requesting a 90-day escrow extension to permit Mr. Bhatia and his lender to complete financing on his Small Business Admin...
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