SR-6-M (61)
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Council Meeting: November 26, 1991
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Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Appropriat2on of Funds for Acquisition of Property
at 505 Olympic Boulevard for Expansion of the
Santa Monica Municipal Bus Lines Yard
INTRODUCTION
The City of Santa Monica is currently holding an option to
purchase the property located at 505 Olympic Boulevard,
which is now in use as a residential trailer park.
This
report requests the City Council to establish appropriation
authority for the acquisition of this property with funds
the City has requested from the Los Angeles County
Transportation Commission (LACTC). Any expenditure against
this authority would be contingent upon the approval of the
Cityls application for the funds by the LACTC.
BACKGROUND
The City holds an option to purchase property at 505 Olympic
Boulevard until January 20, 1992.
The land, which is
approximately 50,200 square feet, is adjacent on two sides
to the existing Santa Monica Municipal Bus Lines (SMMBL)
yard.
SMMBL requires additional land for bus parking and
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eventually for the placement of an alternative fueling
facility. Th1S parcel is ideally suited for these purposes.
The City is also considering the use of this parcel on an
interim (3-5 year) basis as a possible site for homeless
services. While a portion of the site will be needed for
parking buses during the interim period, the balance of the
site could be used for this purpose prior to the
installation of the new fueling facility.
The property may be acquired under the option for $2.7
million dollars in an "as is" condition. This contingency
is relevant primarily as it relates to rent control
relocation and replacement obligations that run with the
property if it is acquired. It is anticipated that the
satisfaction of these obligations will be approximately $1.3
million dollars, resulting in an effective purchase price of
approximately $4 million dollars.
The city engaged the firm of Lindmark Engineering to conduct
a soils analysis to determine if any toxic contamination
exists at the site; the results of this indicated the site
is free of any indication of such contaminants.
BUDGET/FINANCIAL IMPACT
Since time may be short between the approval of the LACTC
for the funds and the termination of the option on January
20 I 1992, appropriation authority is being sought at this
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time.
This authority will be contingent on the LACTC
approval of the city's request for funds.
Therefore,
appropriation authority in the amount of
$3,990,730 is requested at Capital Improvement Account 41-
750-657-20092-8900-99341.
RECOMMENDATION
It is respectfully recommended that the City council:
1. Authorize the city Manager to take the necessary steps
to purchase the property at 505 Olympic Boulevard for the
option price of $2.7 million dollars; and
2. Establish appropriation authority at account 41-750-657-
20092-8900-99341 in the amount of $3,990,730 for the
acquisition of 505 Olympic and related expenses, contingent
upon the approval of the city's request for funding by the
LACTC.
Prepared by:
John Jalili, city Manager
Peggy Curran, community Development Director
Jack Hutchison, Transportation Director