DATE: January 6, 2026
TO: Board of Supervisors
SUBMITTED BY: Raymond T. Hunter, Director, General Services Department
SUBJECT: Purchase and Sale Agreement of 2126-2140 Merced Street, Fresno, CA 93721
RECOMMENDED ACTION(S):
TITLE
1. Approve and authorize the Director of General Services to execute and deliver the County’s Purchase Sale Agreement (“Purchase Agreement”) with Craig A. Davis and Cynthia D. Davis, Trustees of the Craig and Cynthia Davis Family Trust dated April 23, 2015 (“Seller”) for the County’s purchase of 2126-2140 Merced Street, Fresno, CA 93721 (APN 466-152-01), including the building and improvements (“Property”) for the sum of $1,912,500 with an expected close of escrow date of April 30, 2026;
2. Authorize and direct the Director of General Services, or their designee, to take any action as deemed necessary or appropriate, all of which shall be consistent with the Purchase Agreement, and the foregoing Board approvals and actions to:
a. Open, carry out, and close escrow for the County’s purchase of the Property from Seller; deliver the County’s refundable $50,000 deposit into escrow; deliver the County’s acceptance of Seller’s Grant Deed; and obtain title insurance in favor of the County for the Property in the amount of the purchase price of the Property at the close of escrow;
b. Review, approve, execute, and/or deliver any agreements, documents, certificates, notices, instruments, and any amendments to any of the foregoing (subject to prior review as to legal form by County Counsel, and, as applicable, as to accounting form by the Auditor-Controller/Treasurer-Tax Collector, and to take any other actions to initiate, carry out, and finalize the County’s purchase of the Property from the Seller;
3. Adopt Budget Resolution increasing the FY 2025-26 appropriations for Hall of Records Improvements Org 8861 in the amount of $1,950,750 (4/5 vote); and
4. Adopt Budget Resolution increasing the FY 2025-26 appropriations and estimated revenues for County Buildings Org 0131 in the amount of $1,950,750 (4/5 vote)
REPORT
There is no additional Net County Cost associated with the recommended actions. The Property consists of one parcel which includes a commercial office building. The purchase price of the Property is $1,912,500 and was established by the parties through negotiation. The building located on the property is 11,250 square feet of office space.
Approval of the first recommended action will authorize the Director of General Services to execute and deliver the County’s Purchase Agreement. Approval of the second recommended action will authorize the Director of General Services, or their designee, to take the necessary actions to open and close escrow, carry out the necessary items to complete the purchase of the Property, and review and deliver documents related to the purchase of the Property. Approval of the third and fourth recommended actions will increase FY 2025-26 appropriations for Hall of Records Improvements Org 8861 in the amount of $1,950,750 and increase appropriations and estimated revenues for County Buildings Org 0131 in the amount of $1,950,750, including $38,250 in additional costs associated with the recommended purchase. This item pertains to a location in District 3.
ALTERNATIVE ACTION(S):
Your Board could deny the Purchase Agreement of the Property. However, it would result in a lost opportunity to acquire property that would assist with the County’s need for office space.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. The total cost of purchase is $1,950,750, which consists of $1,912,500 for the purchase of the Property and approximately $38,250 for potential additional costs associated with the purchase of the Property. Approval of the third and fourth recommended actions will increase FY 2025-26 appropriations for Hall of Records Improvements Org 8861 and increase appropriations and estimated revenues for County Buildings Org 0131 in the amount of $1,950,750 to fund the purchase. An additional $38,250 in appropriations is being requested for the County Buildings Org 0131 to facilitate the additional costs associated with the purchase of the Property. Any remaining funds will be returned to the Hall of Records Improvements Org 8861 after the purchase is complete.
DISCUSSION:
1. Recommended Purchase Agreement
The recommended Purchase Agreement is the means by which the County may purchase the Property. The terms and conditions of the County’s purchase of the Property are set forth in the recommended Purchase Agreement and have been negotiated by the County and Seller.
Under the recommended Purchase Agreement, the County will provide a $50,000 good faith deposit. The deposit is refundable until the end of the Buyer’s Due Diligence Period, less County’s share of any accrued Closing Costs. If the County terminates the Purchase Agreement for the after the Due Diligence Period, the deposit is non-refundable.
2. The Recommended Actions
Approval of the first recommended action will authorize the Director of General Services to execute and deliver the County’s Purchase Agreement.
Approval of the second recommended action will authorize the Director of General Services, or their designee, to take the necessary actions to open and close escrow, carry out the necessary items to complete the purchase of the Property, and review and deliver documents related to the purchase of the Property.
Approval of the third and fourth recommended actions will increase FY 2025-26 appropriations for Hall of Records Improvements Org 8861 and increase appropriations and estimated revenues for County Buildings Org 0131 in the amount of $1,950,750 to fund the purchase.
Should Your Board reject the adoption of the recommended actions, it would result in a lost opportunity to acquire property that would assist with the County’s need for office space.
3. Due Diligence
The Due Diligence Period in the proposed Purchase Agreement for the Property is 75 days from the effective date of the Purchase Agreement. The Due Diligence Period will include a Phase I Environmental Site Assessment, an appraisal of the Property, an inspection of the Property, review of current Lease Agreements on the Property, and review of matter of Condition of Title to the Property.
4. Proposed Use of the Property
The proposed use of the Property will be for needed County office space purposes.
5. CEQA Compliance
The proposed purchase is exempt from California Environmental Quality Act (CEQA) review. CEQA Guidelines, sections 15060(c)(2), (3), and 15378(a) state that where an action is not a “project” (meaning the whole of the action which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment), that action is not subject to CEQA. The proposed action does not result in a direct or indirect change in the environment. Therefore, at this time, the proposed acquisition is not considered the approval of a project under CEQA and is, therefore, exempt from CEQA review. (California Public Resources Code, section 21065; CEQA Guidelines, sections 15060(c), (2), (3), and 15378(a)).
6. Publication Notices
The public notice of the County’s Intention to Purchase the Property, as required by California Government Code, section 25350, was published timely in the Business Journal on December 17th, 24th, and 31st.
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Purchase Sale Agreement
On file with Clerk - Budget Resolution (Org 8861)
On file with Clerk - Budget Resolution (Org 0131)
On file with Clerk - Public Notice for December 17, 2025
CAO ANALYST:
Amy Ryals