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C:\res mgnt\sears\staff report (mac) Santa Monica. Cahfomia
STAFF REPORT December 14. 1993
ID. The Mayor and City CouncIl
FROM: CIty Staff
SUBJECT: Recommendation to Authonze City Manager to NegotIate and Execute Necessary
Agreements and Complete the Purchase of Parcel, located at 502 Colorado Avenue
IN1RODUcrrON
TIns report recommends that the City CouncIl authorize the CIty Manager to negotIate and
execute necessary agreements and complete the purchase of a vacant lot at 502 Colorado Avenue
for the purpose of locating a 42 unit transitional housing project at the site. The proposed housmg
project would be replacement housing for the mobIlehome units removed from 505 OlympIC
Boulevard. as per agreement WIth the Rent Control Board.
BACKGROUND
On November 26.1991. the City CouncIl authorized CIty staff to proceed WIth the purchase of
property located at 505 OlympIC Boulevard for the purpose of expanding the eXlstmg CIty bus yard
to accommodate adchuonal bus parking and development of an alternative fuehng facIlIty.
Authonzanon was contingent upon receIpt of funds from the Los Angeles County Transportation
CommIssIOn (LACTC) and approval by the Rent Control Board of the City's proposed
replacement housing and relocation plan for tenants then residing at the site. On November 27.
1991, LACTC approved the City's applicatIon for funds for thIS project. On December 12, 1991,
the Santa Monica Rent Control Board approved the CIty'S apphcation for a Category D removal
permIt and relocatIon plan.
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The Rent Control Board approval was conditioned on several actions by the City, mcludmg:
1) The City would replace the mobilehomes wIth a 42-bed homeless shelter or 42-room smgle
room occupancy (SRO) project on the site withm seven years of the date of the execunon of the
Removal PermIt Agreement The site was defined to mclude any contiguous parcel then owned or
later acquired by the Clly.
2) In the interim penod. the City would operate a short-term program of servICes for homeless
persons which would include lockers/storage space, bathrooms and showers, and laundry
faciliues.
These condItIons were part of the December, 1991 approval and are memorialIzed m a Removal
Permit Agreement SIgned June 29, 1993.
DISCUSSION
The Sears property at 502 Colorado A venue has been IdentIfied by staff as a good locatIOn for
meetmg the condItIons imposed by the Rent Control Board It IS currently a vacant lot, used only
for overflow Sears employee parkIng. Current zomng would allow the proposed proJect. The
parcells conuguous to the CIty bus yard, IncludIng the 505 Olympic site, and funding for the
purchase was Included m the onginal LACTC fundlOg approved in 1991.
On September 8. 1992. the CIty Council authonzed the CIty Manager to negotiate for the purchase
of the three block Sears site, assemblage mcludmg the retaIl store and auto repaIr faCIlIty. It was
later decided not to proceed with thIS larger acqUIsitIon. CIty staff has remamed in contact With
Sears management and has reached prelimmary agreement on tenns for the purchase of the small
parla.ng lot located at 502 Colorado Avenue. The proposed purchase pnce for the Sears parcel Will
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be $1,000,000. Based on the authority of theIr own appraisal. however. Sears beheves the value
of the sire to be $2.190.000. Sears has agreed to accept $1,000,000 10 cash and wIll make a
chantable contnbutIon to the City for the remaming $1,190,000 of value The CIty particIpatIOn In
tins proposed transaction does not indIcate concurrence in any partIcular valuatIon of the property.
CIty staff has not yet begun senous consideratJon of sponsorslnp or fundmg for the 42-roorn SRO
project Site control is seen as the first cntlcal step
BUDGETIFINANCIAL IMPACT
Funds for tlus purchase have been appropriated and are av:nlable ill the TransportatIOn Department
Land AcqmsitIOn account 41-750-657 - 20092-8900-99341
RECOMMENDATION
It is recommended that the City Council authonze the City Manager to negotIate and execute the
necessary agreements and complete the purchase of the Sears-owned parcel located at 502
Colorado Avenue for the purpose of locating a 42 urnt transitIonal housing project at the SIte.
Prepared by. Jeffrey P Mathieu, DIrector of Resource Management
Howard Robmson. Acting AdmInIstrative Services Officer, Resource Management
Department
Janet Shelton. AdminIStrative ServIces Officer, Transportation Department
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