Council continues $45,870 reimbursement tied to unrecorded deed to avoid jeopardizing $6 million park grant

Mayor Elma Beltran convened a special meeting item asking the council to authorize payment of $45,870 to Sarbat Bala so the company would sign and record a deed that staff says was never recorded after a 2017 sale agreement required construction of a training center by Jan. 1, 2018. City attorney Neil Costanzo said finance records show no payment was ever issued; the purchase agreement states the property would revert to the city if the training center was not built.

Costanzo briefed the council that staff delivered the deed and certificate of acceptance to a city employee after a Sept. 6, 2022 council action but the recorder returned no recorded deed. He told the council the practical alternatives were to pay the $45,870 and obtain a recorded title now, or pursue litigation to compel the property transfer — litigation that could take longer and potentially cost more than the refund. Costanzo cautioned that the city faces deadlines tied to a larger grant for the park project and could lose grant reimbursement if construction cannot start in time.

Council members asked for more documentation and time to review the transaction history. Several members expressed frustration that the problem dated to earlier years and asked who bore administrative responsibility. After discussion, Mayor Beltran moved to continue the item to the council’s next meeting (April 4) so members could review backup materials; the motion was seconded and carried by roll call.

The matter will return to council with the requested documentation. No final payment was authorized at this meeting.