Pomona may sell land planned for HQ

Published Monday, Feb. 7, 2011

POMONA - The city-owned property often referred to as the Garey Village Complex in south Pomona could be changing hands within a few months.

City Council members, acting as the governing board of the redevelopment agency, will hold a public hearing tonight involving the sale of the Garey Village property.

After the hearing, council members will vote on an agreement for the sale and transfer of the property on the southeast corner of Garey Avenue and Olive Street.

The interested buyer is Pasadena-based Velocity Investment Group, which would like to use the property for educational purposes, said Raymond Fong, the city's redevelopment director.

Under the terms of the proposed agreement, the complex would be sold for $7.1 million, Fong said.

In 2006, city leaders authorized city personnel to purchase the complex from the Pomona Unified School District for $7 million, according to a city staff report.

The complex has been acquired to convert it into a state-of-the-art headquarters for the Pomona Police Department.

Administrators later determined converting the former credit union facility into a police station would cost more than the $32 million the city had budgeted for such a project.

In October, council members authorized city personnel to enter an eight-month contract with a real estate firm to market the property.

At one point it was believed the property could sell for $9 million to $11 million.

Reaching the $7.1 million price required some negotiating with the investment group, Fong said.

"We agreed this is a fair price for (the redevelopment agency) to sell the property and a fair price for them to buy," Fong said.

The investment group has already put down a $100,000 deposit on the property as part of opening escrow, Fong said.

Under the agreement, the investment group has 60 days to determine if they wish to continue with the deal, Fong said.

At that point, if the group wishes to move forward with the purchase, the deposit becomes nonrefundable and would go toward the purchase price, he said.

The buyers would have another 30 days to make a final decision or could request an additional 60 days to make a decision, but would have to put down another $100,000 deposit, according to the staff report.

"This could be stretched out five months before escrow closes," Fong said.

During that time, the city would be allowed to take other offers, he said.

The Garey Village complex consists of four buildings totaling more than 114,000 square feet on about 8.75 acres, according to the staff report.

Such a facility lends itself to various potential uses, said Chuck Lau, development manager for Velocity Investment Group.

Among the options is establishing a trade or vocational school or opening a private middle or high school program for foreign students, Lau said.

Other options include establishing a medical rehabilitation center, he said.

"We will keep our options open but there will probably be a mix of several uses," Lau said.

Among the things the investors found appealing about the property was its proximity to major freeways and the look of the building.

"It has a very institutional look to it," Lau said.