SR-414-002 (18)
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MAR 1 2 \~d5
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Redevelopment Agency MeetIng 3/12/85
Santa MonIca, CalIfornIa
TO:
ChaIrperson and Redevelopment Agency
FROM:
Redevelopment Agency Staff
SUBJECT:
RecommendatIon to AuthorIze the ExecutIve DIrector to
Negotla te and Execute Agreements 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 fity-fIve afford-
able hous lng unl ts as part of the completIon of the Ocean Park
Redevelopment proJec t under the approved Alternate Plan. The
report recommends that the Redeve 1 opment Agency author 1 ze the
ExecutIve Director to negotIate and execute an agreement to pur-
chase the thIrd set of several sItes for thIS development.
BACKGROUND
In January, 1984, the Redevelopment Agency approved an lmplemen-
tatIon strategy and tImellne for completIon of fIfty-fIve housIng
unIts for low and moderate Income households as part of the Ocean
Park Redevelopment ProJect.
On November 23, 1984 the Redeve1op-
nLent Agency authorIzed the ExecutIve DIrector to negotIate and
execute agreements to purchase three lots on Fourth Street for
the development of approx Ima tely 51 xteen of these unI ts. The
Purchase Agreements on these sItes were executed In January 1985,
contIngent upon court approval of the probate sale. On December
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MAR 1 2 1935
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II, 1984 the Redevelopment Agency authorIzed the ExecutIve DIrec-
tor to negotIate the purchase of two lots at 6th and Ashland, and
3005 HIghland. These lots have been purchased by the Agency. In
order to construct all fIfty-fIve unIts the Agency must locate
and acquIre between two to three addl tIonal lots, dependIng on
lot SIze, locatIon and zonIng.
The Redevelopment Agency budget for FY 1984-85 Includes
$2,269,998 In account number 18-720-263-535-905 for the acquIsI-
tIon of all of the necessary sItes. On October 23, 1984 the Re-
developmen t Agency and CI ty Coune II found the expendl ture of
funds for thIs purpose to be of benefl t to the Ocean Park Re-
development ProJect.
DIScUSSIon
As dIscussed In the report to the Agency on October 23, 1984, the
Agency has contracted wIth Con~unIty CorporatIon of Santa MonIca
to act as an acquIsItIon agent to ldentlfy and obtaIn control of
SUI table Sl tes on behalf of the Redevelopment Agency. CommunIty
Corpor at 1 on has been 1 nvol ved In loca tl ng SU 1 table 51 tes, and
WI th sta f f reVIew and approval, negotIatIng purchase or opti on
agreements for the Redevelopment Agency.
All purchase or optIon agreements shall be submItted to the Agen-
cy for reVIew and approval before becomIng effectl ve. The pre-
sentatIon to the Agency of suffIcIent SItes to develop all fIfty-
fIve unIts was targeted to be completed in March, 1985.
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AcqUIsItIon of SItes at 220'7 6th Street and 518-20 PIer
COIT@UnIty CorporatIon has located two lots at 2207 6th Street and
518-20' PIer In the Ocean Park neIghborhood that are suitable for
this type of development and avaIlable for purchase at reasonable
terms. The 518-20 PIer lot has 15,0'00' square feet, lS zoned R-
3 and can acconmodate approxImately fIfteen unIts. The 2207 6th
Street lot has 7,0'94 square feet, I s zoned R-2 and can accommo-
date approxImately SIX unIts. The 518 PIer lot IS Improved WIth
an owner-occupIed sIngle-famIly house. The 6th Street lot IS
vacant. NeIther lot wIll requIre rent control approvals prIor to
development. The 518-520' PIer property IS close enough to the
other SI tes at 6th and Ashland and 3005 HIghland to be covered
under one constructIon contract without Increasing costs, and to
faCIlItate JOInt management as rental or as cooperatIve proper-
tIes, If that proves des 1 rable. The sItes are close to buses,
schools and serVIces for famIlIes and elder ly res lden ts. A map
of the SItes IS attached as ExhibIt "A".
The surrounding property uses are a combInatIon of sIngle-famIly
houses and multI-unIt apartment bUIldIngs and condomInIums. The
neIghborhood surroundIng these SItes bas been notIfied by mail of
the Agency's tentatIve Interest In purchasIng and developIng
these lots. A copy of the letter sent to the res Idents is at-
tacbed (Exhiblt "B"). The sltes are beIng sold by two separate
owners. Community Corporation has entered Into a Purchase Agree-
ment WIth each of the respectIve owners that establishes a fIrnl
prIce and terms, and IS assignable to the Redevelopment Agency.
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These Purchase Agreements are attached as Exhlbi t "Cn to thIS
report, WI th a letter from CommunI ty Corporat 1 on offer 1 ng the
Agreements for assIgnment to the Agency.
As stated In the Agreements, the Redevelopment Agency, as the
ass Ignee 0 f CommunI ty CorporatIon of Santa MonIca, may purchase
the 2207 6th Street property for $189,50'0 or $ 26.71 per square
foot.
The prIce for the 518-520 PIer property IS $375,0'0'0 or
$25.00 per square foot.
All other terms and condl tlons of the
purchase wIll also be assIgned to the Agency.
CompletIon of SIte AcqUIsItIon and Issuance of Request for
Proposals
The purchase of these lots WIll br lng the tota 1 square footage
authorIzed for purchase up to the amount needed for the develOp-
ment of fifty-fIve unIts.
The approved alternate plan for
developnlent and completIon of the fI fty-fIve unl ts requIres that
constructIon start wIthIn one year of the start of framIng on Sea
Colony II 1.
It IS antIcIpated that framIng on Sea Colony II I
WIll begIn In July, 1985, and that the developer selectIon, plan
preparatIon, and predevelopment actIvitIes required prIor to con-
structlon start on the f I fty-f I ve unl ts WIll take approx Ima tely
nIne months to one year.
Therefore, staff shall prepare the
Request for Proposals for submIssIon to the Redevelopment Agency
by the AprIl 23, 1985 meetIng.
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 proj ect have been appropr la ted in the FY 1984-85
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budget as account 18-720'-263-535-90'5 ($2,269,998.0'0').
No addl-
tlonal budgetary actIon IS required.
RECOHMENDATIONS
It IS recommended that the Redevelopment Agency authorIze the
Executive DIrector to negotIate and execute an assIgnment of the
Purchase Agreements to purchase the propertIes at 518-520 PIer
and 220'7 6th Street as descrIbed In thIS report.
Prepared by: Ann SewIll, HousIng Program Manager
Department of CommunIty and EconomIC Development
Exhibits: NotIce to NeIghbors
Map of SItes
Purchase Agreements
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