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City poised to buy old Sylvan school site for $3.4M on new line of credit

A map included in the Citrus Heights City Council’s May 23, 2019, agenda packet shows the location the city is seeking to purchase.

Sentinel staff report–
Following more than a year of discussion and several closed-door negotiations, a proposed purchase price of $3.43 million has finally been made public and a vote by the Citrus Heights City Council has been set for May 23 on whether to proceed with the purchase of the old Sylvan Middle School property at Sylvan Corners.

The property was declared surplus by the San Juan Unified School District after the former Sylvan Middle School was demolished at the site in 2017 and relocated to an adjacent property. According to a City Council staff report, an 11.44-acre portion of the now-vacant property has been appraised at $3.43 million by Valbridge Property Advisors and is desired to be purchased by the city.

Although speculation about future uses at the site have abounded, city leaders have never listed a specific future use and the latest staff report says the city “has not made any decisions regarding how this property will ultimately be developed.” Mayor Jeannie Bruins confirmed last month that the city’s intent is to purchase the property in order to better control how the site will be used in the future, which is also indicated in the staff report.

A fiscal impact assessment included in the report says in addition to the purchase price, an estimated $396,000 is expected to be paid out by the city, due to interest costs on the revolving line of credit. Another $47,000 in expenses is also listed to cover legal fees, closing costs, and pre-purchase studies and fencing.

According to the staff report, the city’s intent would be to pay down the revolving line of credit balance once the property is sold. An additional section of the former Sylvan site is not included in the proposed purchase agreement.

Related: Citrus Heights City Council approves first-ever $12M line of credit

City leaders have shown interest in the property at Sylvan Corners ever since the aging school was demolished two years ago, but it wasn’t until the council approved its first-ever $12 million line of credit last year that a potential purchase of the prime chunk of land was made possible.

The City Council will vote on whether to approve the purchase during its May 23, 2019, council meeting at City Hall. The meeting begins at 7 p.m., at 6360 Fountain Square Drive.

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