SR-6-I (72)
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DEe ~ ~ 1993
JPMlsl mac Santa MOnIca. CalIfornIa
December 14, 1993
To Mayor and City Counctl
From: Cay Staff
Subject Recommendation to Authoflze CIty Manager to negotiate and execute
a lease WIth Western Industnal Investors for parlong at 3300 PIco Place NOM
Introduction
ThIS report requests the CIty Council to authonze the Cny Manager to negouate and execute a lease
with Western Industnal Investors for a surface parkmg lot generally located at 3300 PICO Place
North
B ackgrQpnd
Upon compleuon of the Santa MOnIca Freeway In the late 1970s. thIS 1800 square foot tnangular
remnant lot was deeded to the CIty of Santa MOnIca. The parcel located one block nonh of PICa
Boulevard. abuts the freeway and fronts on PICO Place North, a twenty foot WIde alley, and can be
accessed Via Urban Avenue Use of the parcellS lImned to parkmg automobIles due to ItS small
SIze and unbUlldable locauon
Discus~ion
The paved parktng lot has been leased by a vanety of nelghbonng commercIal tenants over the
years The most recent long tenn lease agreement for the lot expIred III 1990. CIty staff began a
process to declare the parcel surplus land In 1991 As part of that process. reqUISIte utle. appraIsal
and pubhe agency notlficanon actlons were conducted. Based upon the aforementIOned process, It
was found that the parcel had no benefiCIal use for pubhc agenCIes and limIted dISpOSltlOn value of
approXImately $45.000 If It were sold. Consequently, staff maimed a Request for Proposal (RFP)
to lease the property on a longer term basIS. The mInImUm acceptable monthly rental amount was
set at 5600.00 Western Industnal InveswTs subrnmed the only acceptable proposal, commItted to
adhere to the reqmrements listed III the RFP and offered a monthly rent of $715 00. Western
Indusmal Investors 15 a long standmg tenant on the adjacent PICO Boulevard commerCIal smp that
has a tremendous need for off-street parkmg.
rEC ~ ,~ 1993
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PICa Boulevard commercIal stnp that has a tremendous need for off-street parkIng
BudgetarylFinancial Impact
The five year lease WIth Western Industnal Investors wIll generate $8.580 per year In revenue for
the Cay and may be adjusted upward by the consumer pnce mdex (CPI) throughout the term of the
lease. Revenues for 1993-94 WIll Increase by $1,590 over the budgeted amount of $5,400 due to
the Increase m lease rate from $450 to $715 for the remmmng SIX-month penod.
Recommendation
1. Authonze City Manager to negotIate and execute a lease WIth Western Industnal Investors
for parkIng at 3300 PICO Place North.
2 Increase FY1993-94 Budget Revenue account 01-130-224-00000-0077-10000 by $1,590
to reflect mcreased revenues for 6-month penod.
Prepared by Jeffrey P MathIeu. DIrector of Resource Management
JudIth MeIster, Asset Manager
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