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SR-414-002 (3) , '1/1// otJ~ t'e/RA ..2- OCT 2 319M CjED:HD:AS:wp Redevelopment Agency Meeting 11/23/84 Santa MonIca, California TO: Redevelopment Agency """ ., , FROM: Redevelopm~nt Agency Staff SUBJECT: Recommendation to Authorize the Executive Director to Negotiate and Execute an Agreement to Purchase SItes for Affordable Replacement Housing for the Ocean Park Redevelopment Project INTRODUCTION This report transmits information and recommendations concerning the acquIsItIon of sItes for the development of fIfty-fIve af- fordable housIng unIts as part of the completIon of the Ocean Park redevelopment project under the approved Alternate Plan. The report recommends that the Redevelopment Agency authorIze the ExecutIve Director to negotiate and execute an agreement to pur- chase the fIrst set of several sites for this development. BACKGROUND In January, 1984 the Redevelopment Agency approved an Implementa- tlon strategy and tlmeline for completIon of fIfty-five housIng units for low and moderate income households as part of the Ocean Park Redevelopment Project. According to the approved tlmeline, construction of these units must begin between December 1985 and - 1 - ~c/R4 2- eel 2 3 1984 April 1986. In order to meet this timeline, the site(s) for thIS development should be acquired by the Agency by January, 1985. The Redevelopment Agency budget for FYl984-85 Includes $2,500,000 in account number 18-720-263-090-995 for the acquiSItIon of these sItes. SIte Selection Process The Agency has contracted with Community CorporatIon of Santa Monica to act as an acqUIsition agent to Identify and obtain con- trol of suitable sites. Community CorporatIon has an extenSIve Inventory of avaIlable sites, is famIlIar with the Ocean Park real estate market and with the off-site housing program. Com- munity Corporation will identify sites and, wIth staff review and approval, negotiate purchase or option agreements for the Re- development Agency. To date, Community Corporation has identified seventeen potentIal sites that may be suitable for portions of the fIfty-fIve unit development. No one site eXIsts in Ocean Park that wIll support the entire proJect. All purchase or optIon agreements shall be submItted to the Agen- cy for review and approval before becoming effectIve. The selec- tion of a developer, or developers, for the fIfty-five units WIll be competItIve. The presentation of sufficient sites to develop all flfty- five units, wIth a draft Request for Proposals, to the Agency is targeted for January, 1985. - 2 - AcquisitIon of Sites at 2405-2407 and 2323 4th Street CommunIty Corporation has found three lots on 4th Street that are avaIlable through a probate sale by Santa MonIca Bank. Two of these lots are contIguous and the third is three lots to the north. The three lots have a total of 16,800 square feet, and can accommodate approximately seventeen units. Two lots are vacant, and one has a deteriorated house that was formerly occupied by the late owner, and 15 now vacant. The house has never been used as a rental unit. The sites are close to buses, shopping and ser- VIces for elderly and families. The neIghborhood surrounding these sites has been notifIed by mail of the Agency's tentatIve Interest in purchasing and developIng these lots. Terms and CondItions of AcquIsition Throu9h Probate Sale In order for the Agency to acquIre these Sites through the pro- bate sale process it must submit a bid, with a depOSit of ten percent of the bid amount, to Santa Monica Bank as the executor of the estate. If the bid is acceptable, the Bank wIll present it to the Court. The Court will allow any other interested partIes the opportunity to submit counter-offers. Any counter-offer must be approximately ten percent higher than the InItial bid to be considered. If the Agency is the successful bidder It must be prepared to purchase the property within sixty days. A prIce withIn the parameters set forth in the Agency budget has been dIscussed with the representative of Santa MonIca Bank, as - 3 - the Executor of the estate, and it appears that the Bank would be willIng to present that amount to the Court as described, once the requIred deposIt 1S made. FINANCIAL/BUDGETARY IMPACT Funds for site acquisItion In preparation for the development of fIfty-fIve unIts of affordable housing as part of the Ocean Park redevelopment proJect have been appropriated in the FY1984-85 budget as Account 18-720-263-000-905 ($2,500,000.00). No addl- tional budgetary action IS required. RECOMMENDATIONS It is recommended that the Redevelopment Agency authorize the Executive DIrector to negotiate and execute an agreement to pur- chase the properties at 2323 and 2405-07 Fourth Street as described In thIS report. Prepared By: Ann Sewill, ActIng Housing Program Manager Department of Community and EconomIc Development Attachments: Notice to NeIghbors of Fourth Street PropertIes Map of Site - 4 - . ~# Attachment "A" CITY OF SANTA MONICA DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT CITY HALL, ]685 MALV STREET. POBOX 2200 SANTA MONICA, CALlFORNI4 90401.2200 NOTICE PHONE (2 J] i 45S-87f)] October 15, 1984 Dear Resident: For a number of years the Redevelopment Agency of the City of Santa MonIca has undertaken a redevelopment proJect in the Ocean Park area. One of the conditions of the completIon of this proJ- ect includes the development of fifty-five units of housing In the Ocean Park neIghborhood for low and moderate-lncome seniors and familIes. Currently the Redevelopment Agency is considerIng the purchase of three sites at 2405-24@7 and 2323 Fourth Street In Ocean Park for the development of approxImately seventeen units. There will be an opportunIty for public comment when this matter IS submitted for approval at the Redevelopment Agency and City Council meeting on October 23, 1984, at 7:30 pm. in Council Chambers, City Hall, 1685 Main Street. If you have any questions regarding this letter please call the HousIng DIvision staff at 4~8~8701. SIncerely, "b1};L dtt.l;(L,L Ann SewIll Acting HousIng Program Manager crres ..-- -- J-- t). ~ '6 ~ ~lI t ~ 9, ! .. , S'.:1 - ~ ;t:< rT rT ~ () ::r ;:j ro :J rT a "~,l "-..< l-.A..J: ,,!..~ I . ~'I' . ~ m'-I~' ,~ l' .' 0'1 + r.... " ~ ~ t:I ~ I ~l .. STR"'Nn:-';~ . .: i I .' r". @ ~TRAND __. _It ,. ---~~ -- . 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