SR-901-003-07
Purch:DH:BR:
F:\FINANCE\PURCH\STFRPTS\SRBD2805
Council Meeting: October 24, 2000 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Award Bid to Award Bid to Sell Commercial
Properties Located at 2051 Neilson Way and 2200 Michigan Avenue
(Triangular Remnant), both in Santa Monica, California, Bid #2805 and
Authorize Staff to Negotiate and Execute a Contract and Any Related
Documents for the Sale of the Commercial Properties
Introduction
This report recommends award of bid to sell commercial properties located at 2051
Neilson Way, Santa Monica, California and 2200 Michigan Avenue (Triangular
Remnant), Santa Monica, California for a total amount of $201,000. This report further
recommends that the City Council authorize staff to negotiate and execute a contract
and any related documents for the sale of the commercial properties.
Background
On February 8, 2000, the Mayor and the City Council adopted a resolution declaring the
City-owned properties at 2200 Michigan Avenue (824 square feet) and 2051 Neilson
Way (4,432 square feet) ?no longer needed for the purpose acquired nor for any other
public purpose.? Both sites are remnants which are too small for independent
development, not currently in use, and of no interest to other City departments or local
agencies. Because the adjoining property owners are interested in purchasing the
sites, the Council authorized staff to proceed with the sale of the property in compliance
with SMMC 2.24.110 and applicable state and federal regulations; and authorized staff
to negotiate and execute all necessary documents to complete the sale.
1
In response to published Notices Inviting Bids (published August 24 and 27, 2000) in
accordance with City specifications, bids were received and publicly opened and read
on September 7, 2000. Proposal forms were mailed to seven vendors and notices
were advertised in accordance with City Charter and Municipal Code provisions. Two
bids, one for each property, were received as follows:
BIDDER AMOUNTLOCATION
Calstar Equities, Inc. $180,000 2051 Neilson Way
Law Offices of Jon Kodani $ 21,000 2200 Michigan Avenue
In compliance with SMMC 2.24.110, which states that sales of real property shall be
awarded to the highest and best bidder, staff has evaluated the bids submitted by
Calstar Equities, Inc. and Law Offices of Jon Kodani and finds that they meet City
requirements.
Discussion
Because neither site can be developed nor effectively utilized by anyone other than the
adjoining property owners, and the City has no alternative process for sales in situations
such as this, it is reasonable to accept the purchase offers as presented. The sale of
the sites was widely advertised and further advertising is unlikely to result in additional
or better offers on the properties.
Budget/Financial Impact
Funds from the sale of these properties will be deposited in General Fund
Miscellaneous Revenue account number 01224.404170.
2
Recommendation
It is recommended that the City Council award Bid #2805 to Calstar Equities, Inc. in the
total amount of $180,000 and to Law Offices of Jon Kodani in the amount of $21,000 as
the most responsible bidders and authorize staff to negotiate and execute a contract
and any related documents for the sale of the commercial properties.
Prepared By: Diane Howell, Acting Purchasing Agent
Richard Chiu, Buyer
Gretchen Kubacky, Senior Real Estate Analyst
Attachment: A. 2051 Neilson Way Map
B. 2200 Michigan Avenue Map
3