SR-850-005 (2)
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CA:RMM:mox52/hpw
city council Meeting 1-23-90
Santa Monica, California
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STAFF REPORT
TO:
Mayor and City Council
FROM:
City Attorney
Appropriation of Funds for the Acquisition of
Property Adjacent to the Main Library and
Development of Parking Improvements on Such
Property
SUBJECT:
Introduction
This is to request that the City Council establish an
appropriation of $4.5 million for the acquisition of property
adjacent to the Main Library and development of parking
improvements on such property.
This appropriation will be
financed by the issuance of $4.5 million of General obligation
Bonds approved by the voters in November, 1988. A portion of
this appropriation will be used to deposit funds with the
Superior Court in connection with the filing of eminent domain
proceedings for acquisition of the property.
Backqround
On December 12, 1989, the City Council adopted Resolution
Number 7953 (CCS). Such resolution determined that the public
interest and necessity required acquisition of certain properties
adjacent to the santa Monica PUblic Library Main Branch. The
resolution also authorized the City to acquire such properties
through condemnation.
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Discussion
In conjunction with filing an action in eminent domain, a
pUblic entity is required to deposit funds with the Superior
Court, in an amount equal to the full appraised values of each
parcel of real property and the fixtures, furnishings, and
equipment of any commercial tenants of the property to be
acquired.
The real property to be acquired by the City consists of
three parcels. One parcel contains solely residential buildings
while the remaining parcels are improved with commercial
buildings occupied by three commercial tenants.
The City's appraisals of the three parcels of real property
are as follows:
1. Assessor Parcel No. 4291-9-7
1348 7th street
3 Unit Residential
Appraised value: $563,000.00
2. Assessor Parcel No. 4291-9-8
629 and 631 Santa Monica Boulevard
Commercial - Retail
Appraised Value: $1,570,000.00
3. Assessor Parcel No. 4291-9-9
623 Santa Monica Boulevard
Commercial - Restaurant
Appraised Value: $508,000.00
The total appraised value of all three parcels of real
property is $2,641,000.00.
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In addition, the City must deposit monies equivalent to the
appraised "value in place" of each commercial tenant's fixtures,
furnishings, and equipment ("FF&E Appraisalstl), which are as
follows:
1. NaNa Trading C9mpany
631 Santa Monica Boulevard
(Clothing store)
Immovable Fixtures.......................$64,595.00
Movable Fixtures.........................$29/510.00
TOTAL:
$94,105.00
2 . King George V
631 santa Monica Boulevard
(Restaurant)
Immovable Fixtures.......................$67,160.00
Movable Fixtures......................... $31,094.00
TOTAL:
$98,254.00
3. Century Graphics
629 Santa Monica Boulevard
(Commercial Printing)
Immovable Fixtures.......................$20,S75.00
Movable Fixtures........................$107,151.00
TOTAL: $127,726.00
The appraised value of all fixtures and equipment for the
three commercial tenants totals $320,085.00.
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The City's deposit of the required funds will be reimbursed
to City from a portion of the bond proceeds of the Main Library
Improvement Project General obligations Bonds.
Budget and Financial Impact
The new appropriation of $4.5 million at Account Number
01-710-613-21090-8912-99236 will be financed by the issuance of
$4.5 million of General Obligation Bonds as authorized by the
City's voters in November, 1988. Funds from issuance of the
General obligation Bonds will be available by the middle of March
1990.
Should it be necessary to deposit funds with the Superior
Court prior to issuance of the General Obligation Bonds, cash
from the city's Cash Liquidity Reserve will be temporarily used.
Upon issuance of the General obligation Bonds, any cash
previously allocated from this reserve for this project will be
repaJ.d.
Recommendation
It is recommended that the City Council:
(1) Authorize an appropriation of $4.5 million as
described above.
(2) Authorize a deposit into superior Court in an amount
equal to the full appraised values of each real property parcel
to be acquired:
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a. Parcel No. 4291-9-7 $ 563,000.00
b. Parcel No. 429l-9-8 1,570,000.00
c. Parcel No. 4291-9-9 508,000.00
TOTAL:
$2,641,000.00
(3) Authorize a deposit into superior Court in an amount
equal to the appraised value of fixtures, furnishings, and
equipment of the three commercial tenants:
a. NaNa Trading Company - $ 94,105.00
b. King George V 98,254.00
c. Century Graphics 127,726.00
TOTAL:
$320,085.00
PREPARED BY: Robert M. Myers, city Attorney
Linda A. Moxon, Deputy City Attorney
Mike Dennis, Director of Finance
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