By Mike Hazlip—
The Citrus Heights City Council will hold a second closed-session meeting this week regarding a 130-unit senior apartment complex on Sunrise Boulevard near Old Auburn Road, prompting questions about the city’s interest in the property.
According to a short description listed in an upcoming agenda packet, the council will meet on Aug. 11 to discuss aspects relating to the “price and terms of payment” for the property at 7501 Sunrise Blvd. Discussion was also on the agenda last month during the council’s Aug. 28 meeting, which was also a closed session.
The city has been largely mum about the discussions, due to state law allowing for closed-door sessions under certain cases. The council agenda cites Gov. Code Section 54956.8, which allows for closed session negotiations “prior to the purchase, sale, exchange, or lease of real property by or for the local agency to grant authority to its negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease.”
City spokesman Elyjah Wilbur on Monday said only that: “The City Council will be discussing in closed session whether to be involved in the purchase of the property located at 7501 Sunrise Blvd.”
The property is shown on commercial real estate listing site LoopNet for $15 million. LoopNet shows Palmer Capital as the listing agent, and the property is leased and operated by Goodwill Industries.
The property is currently the site of Auburn Oaks Senior living, and the listing shows the two story facility has 48 apartments and 82 assisted living units on the 3.43-acre site. The listing shows the property is “under contract.”
A meeting agenda published by the city lists Auburn Oaks Center, LLC, and The Low Income Family Enrichment Corporation (LIFE) as negotiating parties. A Sentinel search for The Low Income Family Enrichment Corporation shows the name is registered as a nonprofit public benefit corporation in California, also going by the name of The LIFE Foundation. The nonprofit’s website shows involvement with several organizations in Monterey County.
The organization facilitates real estate transactions among government agencies and nonprofit groups, according to their website. LIFE Foundation President Barnett Davis told The Sentinel in a phone interview Monday he is not seeking any money from the city, only to work with the city to determine the best long-term use for the property.
“I’m trying to buy it and set it up so it can be used for the benefit of the people of Citrus Heights,” Davis said.
Davis said he is considering setting up a nonprofit organization that would own and operate the property for low-income seniors and then re-invest a portion of the profits back into the community. He said the site is unrestricted, meaning a different buyer could raise rents to market rates, while Davis said he intends to keep rental rates affordable for people with low income and seniors in the community.
The foundation is still in discussions with the city, and details are yet to be decided, Davis said.
A Sentinel request for comment from Palmer Capital on Monday was not immediately returned by press time Tuesday.
While details about the city’s involvement in the transaction remain unclear, Councilman Bret Daniels clarified in a brief statement that the city is not considering purchasing the asset, but rather taking an advisory role.
“It is not the city that is engaging in the purchase,” Daniels said. “[W]e are considering assisting a buyer in the process but that does not mean an ownership interest or any money on the city’s part.”
A May 2019 report by The Sentinel shows Auburn Oaks Senior Apartments was listed for $8.5 million, which has since risen to $15 million. The listing at that time sought an “imaginative” buyer to modernize the building and bring it to its full potential.
Auburn Oaks was built on a 3.4-acre parcel in 1977 and was operated as senior apartments and assisted living until the market collapse of 2008. Since that time, only the senior apartments have remained operational, with 80 units of assisted living space going unused.
By Mike Hazlip—
The Citrus Heights City Council will hold a second closed-session meeting this week regarding a 130-unit senior apartment complex on Sunrise Boulevard near Old Auburn Road, prompting questions about the city's interest in the property.
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