SR-908-000 (3)
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CED:CNS:BS:srsn
Council Meeting 11-22-88
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Santa Monica, California
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TO:
Mayor and city Council
FROM:
city staff
SUBJECT:
Recommendation to Appropriate Additional Funds for
Renovation of city-owned Property at 602, 604, and
612 Colorado Avenue
INTRODUCTION
This report requests the appropriation of $25,000 in Development
Agreement Funds pursuant to the city's Agreement with J.H. Snyder
Company to be used to cover additional renovation costs of Ocean
Park community Centert s Homeless Drop-In Center and Day Break
Shelter at 612 Colorado. It also requests an appropriation of
$65,000 from General Fund Reserves to cover the cost of
renovation
and
improvements
to
10,000
square
feet
of
office/warehouse space at 602 and 604 Colorado.
BACKGROUND
In previous actions, the city approved the use of 33,500 square
feet of City-owned property at 602, 604 and 612 Colorado for the
following uses:
10,000 sf - lease to Rand Corporation with rehabilitation
and improvements to be provided by the lessee;
7,123 sf - lease to Ocean Park Community Center with rehaoi-
litation provided by Federal McKinney Act funds,
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snyder Development Agreement Funds, and lessee
fundraising:
16,377 sf - lease to non-profit organizations with rehabili-
tation provided by city's General Fund and
additional improvements by lessees.
DISCUSSION
The project is proceeding on schedule with renovation and leasing
activities of the portion leased to Ocean Park community Center
and non-profit organizations well underway. However, in order
the complete the project, the following actions are needed:
(1) Additional funds for unforeseen electrical work: As
rehabilitation of 612 Colorado proceeded, inspections revealed a
number of problems with the existing electrical systems which
needed repair. This requires an additional $25,000 in funds to
meet code requirements.
(2) Additional funds for renovation of 602 and 604 Colorado:
When Council approved this project in February of 1988, Rand
Corporation had been identified as the potential tenant for the
10,000 square feet of office/warehouse space. The Rand proposal
included assuming responsibility for its own tenant~ improvements.
Subsequently, Rand withdrew its proposal and the city retained a
leasing agent to lease this space. All proposals submitted to
date have requested that the City provide basic tenant
improvements (air conditioning/heating, accessibility
modifications to entrances and restrooms, carpeting, painting).
Based on a prelimary plan for up to five tenant suites in this
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area, the renovation cost estimate is $65,000. These costs would
be recovered through the ability to conunand increased rent for
that space and could be recouped within twenty four months.
FISCAL/BUDGETARY IM?~C:T
Funds in the amount of $25,000 are available pursuant to the
Development Agreement with J .H. Snyder Company for electrical
work for the opec component. There will be no impact on the
Ci ty J S General Fund.
Appropriation authority is requested in
account 01-720-262-143-956. In addition, approval is requested
for the award of these funds to Ocean Park community Center for
rehabilitation.
Funds in the amount of $65,000 for rehabilitation of 602 and 604
Colorado
available
Reserves.
Funds
from.
General
are
Appropriation
authority
account
is
in
requested
01-720-262-000-952.
RECOMMENDATION
city staff recommends that the City council (1) approve
appropriation authority in the amount of $25,000 in account
Ol-720-262-143-956~ (2) approve the award of these funds to Ocean
Park Community Center for rehabilitation; and (3) approve
appropriation authority in the amount of $65,000 in account
01-720-262-000-952.
Prepared by: Barbara Stinchfield, Community Development Manager
Department of Community and Economic Development
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