Sonoma County concludes sale of Chanate campus

Sonoma County has completed its sale of the 71-acre Chanate campus to Eddie Haddad of Chanate Development Group, a newly formed LLC, for $15.05 million. Escrow on the site, which is centered around the former Community Hospital, closed today, concluding a long-standing goal for the Sonoma County Board of Supervisors

“It’s a sense of relief to have finally completed the sale of this property,” said Lynda Hopkins, chair of the Board of Supervisors. “We believe that we have secured the best deal possible for Sonoma County taxpayers, and while we do not have control over future development, we do hope to see this property used to address Sonoma County’s housing shortage.”

The City of Santa Rosa has the authority to approve future development of the site.

Unlike prior sale efforts, the county used the online auction website TenX to conduct the sale. The auction opened on Sept. 7 and closed on Nov. 9, followed by a call for oral bids. All bidders were vetted to ensure that they had sufficient funds to close the transaction. Bidders were required to timely submit proof of funds, and had to agree to all of the terms of the property sale prior to being considered qualified to submit a bid. California Government Code proscribes exactly the process that was carefully followed. 

“Today the county’s General Services team celebrates the completion of many years of appropriate, diligent and professional work and looks forward to the future of the Chanate property,” said Caroline Judy, director of the General Services Department.

The terms of the sale of the property were all-cash, as-is, without entitlements, with all structures and property conveyed at closing. All costs associated with demolition of buildings are the responsibility of the buyer.

The sale includes a leaseback agreement with the county for the Public Health Lab and Morgue and Coroner’s Office for four years with two six-month options to extend. The terms of the sale also include an affordable housing covenant, buyer’s acknowledgement of public access to the historic cemetery, access agreements for the Chanate Medical Center, and assumption of the Sloan House lease and the Bird Rescue license agreements.

Parcel J, the 10.4-acre Paulin Meadow site located at the southwest corner of the property at the end of Beverly Way, was not included in the sale. The Board of Supervisors on Nov. 2 approved the conveyance of the parcel to the Agricultural Preservation and Open Space District. The conveyance closed on Dec. 16, ensuring the conservation of the woodland area in perpetuity.

Board Vice Chair Chris Coursey, whose district has included the Chanate Campus, and county staff have worked to keep neighbors informed about ongoing activities at the site, including vegetation management and seismic analysis.

“We can now return this asset to productive use and place the property on the tax rolls.” Coursey said. “We can’t direct what will happen here after the sale, but my hope is for responsible development that responds to the greatest needs of our community, including affordable housing that will continue the Chanate property’s role as an asset to the community.”