The City Council passed two agenda items on Monday’s consent calendar concerning the acquisition and sale of 17 properties owned by Caltrans, and reopened the process for some real estate brokers regarding a third item. 

The approved contracts will allow for security, property inspections on the properties.

The third item which would have allowed for broker listing services for Caltrans properties with Deasy Penner Podley, Beautiful Pasadena Homes and Sothey’s International for an amount not to exceed $1,387,260. 

But City Manager Miguel Marquez announced the City would allow brokers that did not turn in all of the required paperwork to do so in an effort to make sure the process was fair and equitable. 

The process is only open to brokers that have already submitted paperwork. At least one broker complained about the results of the process. 

“I have reviewed the staff’s recommendation to the City Council for the Caltrans Listing Agent contracts. It is unfortunate that no businesses owned by women are represented,” wrote Vera Nelson. “When the Council positions itself as being interested In diversity, equity and inclusion, it is imperative that the outcome reflects the same.”

Marketing on the properties will begin while the properties are in escrow, which will require the services of listing agents. 

The City indicated its interest in purchasing the properties on July 25. 

The City has identified four of the properties as potential affordable homeownership opportunities, with the remaining 13 properties to be marketed and sold to market buyers. 

The City will enter into purchase and sale agreements with Caltrans after conducting its due diligence, including property appraisals and inspections. 

Staff will return to the Council with a recommendation to acquire the properties that contains information about the due diligence findings.

The items were originally listed on last Monday’s consent calendar, but were postponed following a request for additional information, according to Public Information Officer Lisa Derderian.

In the 1950s, 1960s, and 1970s, Caltrans acquired four 460 properties in Pasadena, South Pasadena, and El Sereno for the construction of its 710 North Project, which would have connected the northern stub of the 710 with the 210 Freeway. 

The project was officially terminated with the 2018 certification of the final environmental impact report on the freeway and subsequent legislation in 2019. 

The Roberti Act, SB 86, was enacted in 1979 for the purpose of preserving, maintaining, and expanding the supply of affordable housing to affected persons and families of low- or moderate-income. 

The first item, $237,000 contract with American Global Security is a professional services contract dealing with preparation to purchase and sell of the properties.

The City issued a Request for Proposals (RFP) for security guard services for the City’s holding period. The RFP was open from July 10 to August 1. Notification of the RFP was initially sent to 2,732 vendors. 

The City Council also approved a $262,500 contract for property inspection services with Scotland Yard Home Inspection company.

On July 6, Caltrans transmitted a Notice of Solicitation to the City. 

This Notice of Solicitation contained seventeen property addresses, along with the original acquisition prices, which average $57,420. 

All properties will be sold in “as-is” condition. As proposed, buyers will be required to execute a performance deed of trust in the form of an addendum to their purchase and sales agreement to ensure that the properties are maintained, brought up to code, and occupied within a reasonable period of time. 

In preparation to purchase and sell these 17 properties, the City issued a RFP for broker listing services on July 7.

 The RFP was open from July 7 to July 25. Notification of the RFP was initially sent to 2,743 vendors. 

The RFP was forwarded to the Pasadena Association of Realtors (PFAR) and was shared with Pasadena Heritage. An article about the RFP appeared in Pasadena Now on July 17th.