The $7.545 million deal calls for the sale of three contiguous parcels of land, located between Mount Hermon and Kings Village roads to PDC, the Pleasanton-based development company which is a wholly owned subsidiary of Safeway.
The developer is currently in exclusive negotiations with the City of Scotts Valley to create the Town Center, which it envisions as a Safeway-anchored shopping center.
The City of Santa Cruz's ownership of the parcels dates back to the days of the former Skypark Airport, which was permanently closed down operations in 1982.
Santa Cruz City Manager Martin Bernal said that the deal calls for a lengthy escrow period wherein the developer will pay two $100,000 deposits to the city — one at the outset, the second 6 months later —while conducting due diligence studies on the property as well as continue negotiation with the City of Scotts Valley.
“They make certain payments as they’re going through the due diligence process,” Bernal said.
After a total of 18 months have passed, the developer can choose to close escrow, walk away from the deal — forfeiting the $200,000 in deposits — or can choose to exercise the first of two one-year, $100,000-deposit extensions.
The deal is good news for the City of Scotts Valley, which also plans to sell parcels of land to PDC formerly owned by the city's now-defunct redevelopment agency.
“That’s a good step forward,” said Scotts Valley City Manager Steve Ando.
Representatives from Safeway and Property Development Centers could not be reached before the Press-Banner deadline.
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