
Engstrom Properties’ Bid for Davis’ Historic City Hall Accepted
Source: The Davis Enterprise
Brokers: Ken Turton , Scott Kingston
Engstrom Properties, which owns and operates several commercial properties in Davis, is the probable new owner of the Historic City Hall building at 226 F St. in downtown Davis.
The successor agency to the Davis Redevelopment Agency accepted Engstrom Properties’ bid of $3.5 million on Tuesday, the city of Davis announced Friday. The sale must be approved by the state Department of Finance and the successor agency’s oversight board.
These approvals are expected by the end of the year, a city news release said.
The city will receive approximately 21 percent of the net proceeds from the sale. The remainder of the proceeds are divided among the public entities — school districts and special districts — that receive property taxes in Yolo County, based on their proportionate share of property taxes.
Engstrom owns Oak Tree Plaza and the El Macero Shopping Center in South Davis, both of which are anchored by a Nugget Market. The company also owns, operates and renovated the historic Hotel Woodland on Main Street in downtown Woodland.
The purchase came as a result of a highly competitive disposition process that began last spring.
A city news release said Engstrom Properties was chosen based on its competitive offer price, proven track record of owning and operating high-quality commercial and historic properties, extensive commercial leasing and property management staff, vision for the property, dedication to maintaining the historic integrity of the building, and understanding of Davis community values.
“We feel Engstrom Properties will be an excellent steward for our Historic City Hall building and are confident they will exceed our expectations,” said Mayor Robb Davis.
Late last year, the state Department of Finance notified the Davis successor agency that it had to sell the Historic City Hall building. The sale was required under a 2012 state law that dissolved all California redevelopment agencies and forced them to dispose of all their assets.
Built in 1938, the Historic City Hall building served as Davis City Hall for many decades and housed all city functions until 1966, when the Fire Department moved to new headquarters on Fifth Street.
In 1981, all other city departments except police moved to new headquarters at 23 Russell Blvd., the former Davis High School. The Police Department remained in the building until 2001, when it moved to its new station on East Fifth Street.
Shortly after 2001, the property was remodeled into a restaurant and has been leased to a restaurant operator since 2003. The current tenant, Bistro 33, has eight years left on its lease. The new owners can maintain the lease or negotiate a buy-out.
The building is a state historic landmark, which means its exterior historic features are protected. Any proposed changes to those features require city approval. In addition, the city will record a deed restriction requiring city approval for any proposed changes to the building’s interior historic features. The city will retain ownership of the two art pieces on the property.
Turton Commercial Real Estate was the successor agency’s broker for the sale, marketing the property and helping to evaluate the four offers received. The two most competitive buyers were interviewed by Turton, successor agency board members and staff.
There are seven members of the successor agency board: Robb Davis, mayor of Davis; Jim Provenza, Yolo County supervisor; Bruce Colby, associate superintendent of the Davis school district; Alan Fernandes, member of the Davis Board of Education; Katherine Hess, representing city of Davis employee bargaining groups; Laduan Smedley, Los Rios Community College District; and Erik Vink, Yolo County Flood Control and Water Conservation District.
Engstrom Properties is owned by Yolo County resident Mark Engstrom. The company has a proven track record in the Sacramento region renovating historic properties, owning and operating restaurant and retail properties, and shepherding transactions through the state Department of Finance.