The city of Encinitas is moving forward with the purchase of two parcels of land known as Surfer's Point at the northeast corner of Highway 101 and La Costa Avenue in the Leucadia neighborhood.
The Encinitas City Council on Wednesday unanimously approved a purchase and sale agreement with Surfer's Point LLC for $6 million dollars with a 45-day due diligence period and a target close of escrow on Sept. 29.
"This property is a high-visibility parcel that will preserve a very cherished vestige of Encinitas' and Leucadia's character," said Mayor Tony Kranz. "The acquisition of this land helps preserve open space and meets the City Council's goal of evolving and preserving community character."
The total cost for the acquisition of land will be around $6.3 million, according to the city, which includes the purchase price of $6 million plus closing and financing costs of $300,000 which will be temporarily transferred from the city's contingency reserve.
According to the city, it is considering using bonds for the long-term financing of the land to reimburse the funding used from the contingency reserve.
The debt service payments at an estimated interest rate of 4.33% over a 30-year period will be around $377,000 per year.
