Two more downtown properties have been added to the growing list of Vista's real estate holdings.

In two 4-0 votes, the City Council on Tuesday approved the purchase of the Vista Riviera Motel in a settlement worth about $2 million and a building at 315-319 S. Santa Fe Ave. for $1.2 million.

Councilman Bob Campbell was absent.

The council meeting was the first in Vista's new Civic Center, paid for with a half-cent sales tax increase approved by voters in 2006.

Construction on the Civic Center began in August 2008 and city officials had expected it to open in July of this year, but work was finished a month ahead of schedule.

Council members praised the finished product Tuesday and thanked voters for providing the money for the project.

The purchases approved Tuesday are part of the city's redevelopment plans.

The city's redevelopment agency wants to use the 0.71-acre motel site, along with four other properties it recently bought near Vista Village Drive and Vista Way, as part of a development with North County Ford that will include two car dealerships.

Bill Rawlings, Vista's director of redevelopment and housing, said the 8,000-square-foot Santa Fe Avenue property will be part of the city's redevelopment project in the Paseo Santa Fe corridor.

Rawlings told council members that the city owns about 30 percent of the properties within the corridor, which stretches along South Santa Fe Avenue from Monte Vista Drive in the south to Orange Avenue in the north.

Rawlings said the city plans to bunch parcels together to create larger, mixed-use developments along South Santa Fe Avenue.

He said the agency plans to develop four-story buildings with retail on the first floor, offices on the second floor, and housing on the third and fourth floors.

"What we're trying to do is bring a change and improve our community," Councilman Frank Lopez said. "Down the road, we'll see it was the right thing to do."

Michael Booth, a frequent public speaker at council meetings and candidate for council, was the only resident to speak out against the purchases.

"No developer is crazy enough and stupid enough (to develop in Vista) when the city is already riddled with vacancies," Booth said.

Mayor Morris Vance said he was disappointed by Booth's "lack of understanding of our redevelopment program. The city is actively trying to accomplish something in this economy."

As for the agreement with motel owner Pankaj Desai, the agency will pay $1.65 million for the property, plus $345,000 for "all fixtures, furnishings and equipment, business goodwill, relocation (Desai's family and a maintenance worker live at the motel), and all other costs" for a total of nearly $2 million.

The agency will also reimburse Desai $5,000 for the cost of his own appraisal of the property.

Rawlings said the agency has agreed to invest $155,000 in a future development if Desai wants to open a new hotel in Vista.

The hotel would have to be associated with an established chain such as Marriott, Hyatt, Hilton or Hampton Inn, according to the agreement.

"Not only is the owner getting fair market value, but other considerations," Councilman Steve Gronke said.

The motel purchase was controversial because during negotiations, the city's redevelopment agency took steps that would allow it to acquire the property under eminent domain, a process that allows a government agency to take private land for public use or development, as long as it pays fair market value, determined by a court.

Booth said the city bullied the motel owner into selling.

"You can't fight City Hall, I guess," he said. "If you don't believe this is coercion, you're in fantasy land. ... Who is next on your list?"

Call staff writer Cigi Ross at 760-901-4067.