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Council Meetmg November 24, 1998 Santa MOnica, California
To
Mayor and City Council
From
City Staff
Subject
Recommendation to AuthOrize the City Manager to Negotiate and
Execute a Purchase Contract for Real Property Located at 2101 and
2115 PICO Boulevard, Amend the Contract with Takata Associates for
Additional Design and Community Outreach ServIces, and to Adopt
the Imtlal Study/Negative Declaration Prepared to Assess the
Environmental Impacts Associated With the Purchase ofthe Property
Introduction
ThiS report recommends that City Council authOrize the City Manager to negotiate
and execute a purchase contract for real property located at 2101 and 2115 PICO
Boulevard for an amount not to exceed $4,000,000, Includmg all closing costs, and
amend the contract With Takata Associates for additional design and community
outreach services ThiS report also recommends that CIty Council adopt the Initial
Study/Negative Declaration prepared to assess the environmental Impacts
associated With the purchase of the property by the City
Background
In April of 1998, City staff became aware of the potential availabIlity of real property
located at 2101 and 2115 PICO Boulevard The two properties consist of
approximately 38.000 square feet of land With two 10,000 square foot bUildings
The properties are strategically located Immediately west of VirginIa Avenue Park
Co,
HOV 2 " 1998
and staff recognized a potentIal opportunity to expand the land area of Virginia
Avenue Park, consistent with land acquIsition strategies In the City's Parks and
Recreation Master Plan This was particularly timely because the Initial design
phase for the Virginia Avenue Park expansion was underway, which Includes
Improvements planned for the "Plco/Cloverfleld" site which was purchased by the
City In 1989
Staff retained a certified appraiser to determine the market value of the properties
and an appraisal was prepared on August 5, 1998 The appraisal found the
combined value of the two properties to be $3,950,000 A purchase offer was
submitted to the property owner and negotiations ensued over a period of several
months Those negotiations were successful, concluding with an agreement to
purchase at the appraised value, contingent upon City CouncIl's approval of the
transaction
DIScusSion
Currently, a concept desIgn for the Virginia Avenue Park Expansion project, for
development of the 2 9 acres of land at the northwest corner of PICO and Cloverfleld
Boulevards as an expansion of the adjacent Virginia Avenue Park, IS nearing
completion The community design process for the project began In March of 1998
and since then, four commumty desIgn events as well as several neighborhood
surveys have been completed In the last few months, the concept design for the
project has had Initial reviews by the Virginia Avenue Park AdVISOry Board, the
Recreation and Parks Commission, the Arts Commission, and Its Public Art
Committee
The addition of these two propertJes to the Virginia Avenue Park Expansion project
proVides an excellent opportumty to enhance the project, proVide more space for
the park's currently over-crowded programs, and bUild upon the strong
neighborhood character of the park Development of the properties as part of the
Virginia Avenue Park Expansion Project would allow the park to stretch from 21 st
Street to the IntersectIon of PICO and Cloverfield Boulevards, a distance of almost
900 feet along one of the City's most heavily traveled arterials
In recognition of the high land values and scarcity of land available for parkland
acquIsition, the Parks and Recreation Master Plan places a priority on the purchase
of centrally located parcels which are accessible by the broadest cross section of
reSIdents The assembly and acquIsItion of small parcels which can be combined
to form larger pieces, and the purchase of property adJOined on at least two Sides
by streets IS also adVised In particular, the Plan recommends that "sItes adJacent
to eXisting parks or schools would be desirable In order to capitalize upon eXlstmg
resources and broaden recreational opportunities ,. The two properties In question
clearly meet all of these criteria
Upon acqUIsition, staff recommends the Integration of these properties Into the
deSign of the expansion project, the extension of the current community outreach
programs to define the program for these two additional Sites, development of an
expanded overall park concept design, and further review by City Commissions and
City Council for final concept design Additional funding to develop the two
properties will be Identified at the concept design approval stage and In the context
of the FY 1999-2000 budget process However, additional funds are currently
needed for extended commumty outreach actiVities (workshop planning and
faCIlitation), programming, Initial site design, and environmental analysIs of the two
properties Staff recommends that the contract and scope of work WIth the
consultant team led by Takata Associates, the landscape architectural firm working
on the Virginia Avenue Park Expansion Project. be amended to Include thIS
additional work, In an amount not to exceed $130,000
CEQA Status
Purchase of the Properties
An Imtlal Study and Negative DeclaratIon for the proposed purchase was prepared
by the City Plannmg DIVISion In compliance With CEQA The Initial Study did not
Identify any slgmficantadverse environmental Impacts resulting from the acquIsition
of the property by the City The document acknowledges that the property Will
remain In Its present condition and that the City IS purchasmg thiS property to
preserve the pOSSibility of expandmg Virginia Avenue Park In the near future The
Imtlal Study states that no plans forthls expansion have been prepared The twenty
(20) day public review and comment period for the Imtlal Study and Negative
Declaration commenced on October 29, 1998 and closed on November 17, 1998
and was noticed In The Argonaut Planning staff received no comments during this
public review period
Since Housing and Urban Development (HUD) have discretionary approval of
federal funding for portions of this project, an Environmental Assessment (EA) IS
currently being prepared to satisfy federal environmental review requirements In
accordance With the National Environmental PolIcy Act (NEPA) The City IS,
however, only responslblefortaklng action on the Initial Study/Negative Declaration
Development of the Properlles
Once concept design plans are developed and approved by the City, a draft
environmental Impact report Will be prepared, m accordance With CEQA, on the
entire park expansion concept design (including the two PICO properties) prior to
construction document preparation and actual construction
Budget and Financial Impact
Community Development Block Grant (CDBG) funds In the amount of $1 ,447,082
and parkland acquIsition funds In the amount of $2,552,918 are proposed for the
purchase of the two properties Approval of the use ofthe CDBG funds IS currently
under review by the Department of HOUSing and Urban Development (HUD) Upon
approval, staff Will return to the City Council With an amendment to the City'S
Consolidated Plan and any other required actions necessary to use HUD funding
If the HUD approval should delay the purchase as currently structured with the
seller, parkland acquIsition funds would be the sole source of funding
AcquIsition of these properties Will be financed from funds budgeted from the
follOWing accounts'
19-740-511-20096-8900-99188
19-740-511-20097 -8900-99188
19-740-511-20098-8900-99188
01-710-202-20098-8900-99990
TOTAL
$ 249,283
$ 548,675
$ 649,124
$2,552,918
$4,000,000
If only parkland acquIsition funds are used, acquIsition of these properties Will be
financed from funds budgeted from the follOWing accounts
01-710-202-20098-8900-99990
01-710-202-20099-8900-99990
TOTAL
$3,495,200
$ 504,800
$4,000,000
Funds are available In the followmg account for the additional design services and
community outreach for the two properties
01-710-202-20099-8900-99990
$ 130,000
Recommendation
Staff recommends that City Council authOrize the City Manager to negotiate and
execute a purchase contract for real property located at 2101 and 2115 PICO
Boulevard for a purchase price not to exceed $4,000,000, including all clOSing
costs, and amend the contract with Takata Associates for additional services for an
amount not to exceed $130,000 Staff also recommends that City Council adopt
the Imtlal Study/Negative Declaration prepared to assess the environmental Impacts
aSSOCiated With the purchase of the property by the City based upon the follOWing
findings
a) Based upon the Initial Study and Negative Declaration, there IS no
substantial eVidence that the proJect Will have a Significant effect on the
enVIronment,
b) The Initial Study and Negative Declaration reflects the City CouncIl's
Independent Judgement and analYSIS, and
c) The City Planning DIVISIon shall retain In their files the Initial Study and
Negative Declaration adopted by the City CounCil
Prepared by
Jeff Mathieu, Director of Resource Management
Barbara Stinchfield, Director of Commumty and Cultural Services
Suzanne Fnck, Director of Planning and Community Development
Howard Robinson, Economic Development Manager
Karen Ginsberg, Planning Manager
Gretchen Kubacky, Senior Real Estate Analyst
Brett Horner, Senior Administrative Analyst
Paul Foley, Associate Planner