Photograph by George Sakkestad
The former Navair Manor site, now a field passed by Elvira Perez, 5, as she walks home from school, will soon be the site of 85 new homes.
By LESTER CHANG
The City of Sunnyvale has reached an agreement with the Navy to buy the land formerly occupied by the Navair Manor Family Housing project for $6.3 million, opening the way for the building of 85 homes by a developer from Foster City.
At its March 18 meeting, the Sunnyvale City Council approved a resolution authorizing the purchase of the nine-acre site, located at Duane and Morse avenues.
The parcel has been vacant since 1991, when the Navy demolished housing built in the 1950s.
The council also agreed to put down $650,000--about 10 percent of the sales price--to move the purchase along. The developer will repay the city once escrow has closed.
When completed, the project will help ease a city housing shortage of about 1,500 single-family homes, officials said.
The purchase agreement will now be sent to the Navy and the federal government for review.
The city had a chance to buy the land at a lower price, but the federal government's lengthy approval process contributed to the delay of the purchase, said Dyane Matas, the city's housing and neighborhood preservation officer.
The city expressed interest in buying the property in January 1993. The Navy responded in March 1995 and offered to sell it for $5.4 million.
The Navy required the developer of the parcel, Sares Regis, to pursue the approvals for development so that the land could close escrow on March 1, 1996.
Since that time, the city has negotiated with the Navy to close escrow. The Navy agreed to sell on Feb. 28, 1997.
Because of the lengthy purchasing process, the Navy completed a new appraisal for the parcel and raised the purchase price to $6.3 million, a hike of about 16 percent from the original sale price.
The delay will drive up the cost of most of the homes by 10 percent, city officials said. Sares proposes to build 72 homes for as much as $300,000 each, Matas said.
The delay, however, won't affect the cost of 13 homes that are slated for low-income buyers, Matas said.
These homes would sell for about $130,000 each, she said.
Under the agreement, Sares must build these homes below market value, Matas said. The homes will be two stories tall.
The money for the city's downpayment came from a $1.4 million city housing fund.
The developer will repay the downpayment and cover the balance of the purchase when escrow is closed, Matas said. At that point the developer will own the land.
Sares will need to get building permits before it can start construction on its project, estimated to cost between $20 and $25 million.
The council approved the project in February 1996.
This article appeared in the Sunnyvale Sun, March 26, 1997.
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