Sonoma County supervisors approve Chanate sale

The Sonoma County Board of Supervisors today approved the sale of the 71-acre county-owned Chanate Campus to Eddie Haddad of Resources Group for $15.05 million. Haddad submitted the highest responsive, responsible bid in response to the Nov. 9 call for oral bids. The sale is scheduled to conclude with the close of escrow on Dec. 22.

The board also authorized staff to enter into an alternative and contingent sale agreement with City Ventures Homebuilding LLC, the second highest bid with $15 million. Selling the property, which has annual carrying costs of nearly $1 million, has long been a goal of the Board of Supervisors.

“It’s been a long road and it’s very exciting to take this step,” said Lynda Hopkins, chair of the Board of Supervisors.

Sonoma County received nine sealed bids and 19 oral bids for the property centered around the former Community Hospital site. The TenX online auction opened on Sept. 7, which provided time for interested bidders to tour the Chanate campus, ask questions and perform due diligence.

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

The sale is subject to 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 the 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, is 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 to ensure the conservation of the woodland area in perpetuity.

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