SR-414-002 (3)
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OCT 2 319M
CjED:HD:AS:wp
Redevelopment Agency Meeting 11/23/84
Santa MonIca, California
TO:
Redevelopment Agency
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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
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~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.
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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
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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
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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
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