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Council Meetmg July 14, 1998 Santa MOnica, California
To Mayor and City Council
From City Staff
Subject Recommendation to Execute a Purchase and Sale Agreement With the
County of Los Angeles for the County-Owned Site at 1525 Euclid Street
for a Mixed-Use Park/Housing Project and Enter Into a Long-Term Lease
With the United Cerebral Palsy Foundation and a Memorandum of
Agreement With the State Office of Historic Preservation
INTRODUCTION
ThIS report recommends that the City Council provide authOrization to purchase a County-
owned site located m the PICO Neighborhood at 1525 Euclid Avenue for $1,200,000, to be
converted for use as a neighborhood park, community meeting space, and housmg for
persons WIth cerebral palsy and other disabilities, to enter mto a long-term lease for the
southern half of the site With Unrted Cerebral Palsy, and to negotiate and execute a
Memorandum of Agreement With the State Office of HIstoric Preservation that Will govern
the adaptIve reuse of the eXisting bUilding on the southern half of the Site, currently listed
In the City's Historic Resources Inventory
BACKGROUND
At the City CounCil meetmg of September 23, 1997 I staff presented a plan for the purchase
of four contiguous lots owned by the County of Los Angeles, for the purpose of creating
a neIghborhood park, community meetmg space, and renovated housmg for persons With
cerebral palsy and other disabilities The plan called for the acquIsition of the two northern
lots by the City, and for a housmg acquIsition loan to the United Cerebral Palsy organi-
zation (UCP) to purchase the two southern lots, which are Improved by a structure formerly
used as the Santa MOnica West Mental Health faCility The County had previously agreed
to sell the two southern lots to UCP, pending UCP's receipt of a housing acquIsition loan
(PL--
JUL 1" 1998
from Santa Momca The City Council authorized staff to proceed with the plan and to
negotiate with the County for the acquIsition of the two northern lots for park use
Since the September 23, 1997 meeting, County officials have strongly Indicated a pref-
erence to sell the entire site -- all four lots -- directly to the City of Santa Monica Based
on the County's rationale that a dIrect sale to the City would expedite the transfer of the
property, staff recommends Council approval to purchase all four lots and enter Into a long-
term lease with UCP for the two southern lots City staff agrees that the purchase and sale
transaction would be made more efficient by the direct CIty purchase of the entIre site
There are other benefits to this approach The bUilding, which will be leased on a long-
term basIs to UCP, will be renovated for 13 disabled households, but a portion will be
retained by the City for commumty meeting space The archItectural plan for the bUilding
provides access for CIty residents to the courtyard ofthe bUilding and specified commumty
space while carefully protecting the privacy of the future residents
Staff expects to accelerate the Section 106 hlstonc review process (and ultimately the
purchase) by recommending the execution of a Memorandum of Agreement With the State
Office of Historic Preservation Prior to the City executing the purchase and sale
agreement With the County, an environmental analYSIS will be completed ThiS analYSIS
will outline an acceptable plan for the renovatIOn of the eXIsting bUilding The h Istonc
analYSIS and plan form the core of a Memorandum of Agreement among the State Office
of Hlstonc Preservation, the County, the Department of Housing and Urban Development
(HUD), UCP, and the City of Santa MOnica The Memorandum of Agreement, which
outlines the bUilding rehabilitation plan that must be followed, facIlitates the environmental
clearance reqUired under the National Environmental Protection Act (NEPA) In that the
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purchase of the property IS a discretionary action, the project IS also subject to the
California Environmental Quality Act (CEQA)
The site consists of four lots totaling 30,000 square feet It Includes a parking lot on two
lots totaling 15,000 square feet, and two adjOining lots totaling 15,000 square feet with an
eXisting 12,500 square foot bUilding BUilt In 1928 In the Spanish Colonial ReVival style,
the bUilding IS listed In the City's HistOriC Resources Inventory as a resource which appears
to meet the criteria for mdlvldualllstlng In the National Register of Hlstonc Places The sale
price IS $1.200,000 or $40 per square foot ThIS pnce IS supported by an appraisal report
commissioned by the City of Santa Monica
DISCUSSION
DISCUSSions with the County regarding the purchase of thiS site have been unaVOIdably
protracted, given the time needed for staff to develop a plan with maximum public benefit
and community support, and to conduct the necessary environmental review The County
has established July 30, 1998 as the target date for the sale of the site to the City
Funds for the acqUisition of the southern half of the site -- the planned site for hOUSing --
will be drawn from the PICO Neighborhood HOUSing Trust Fund Funds for the acquIsition
of the northern half of the site -- the planned site for a neighborhood park -- will be drawn
from Community Development Block Grant (CDBG) funds The proposed project IS
supported by the PICO Neighborhood ASSOCiation and the Mid-City Neighbors
ThiS project will proVide a publiC benefit by replaCing a poorly maintained parking lot and
a vacant and unsafe bUilding With a small park, community meeting space, and a bUilding
"
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that will be renovated to house 13 families or IndIviduals, while restoring significant historic
architectural features for everyone to enJoy and appreciate Additionally, over $1 ,000,000
In federal hOUSing funds Will be committed to the project to help defray total development
costs Further delays may Jeopardize the City's option to purchase the property and the
developer's fundmg commitment from HUD
FINANCIAL/BUDGETARY IMPACTS
Fmancmg for acquIsition of the open space portion of the site ($600,000) would be
provided from Community Development Block Grant (CDBG) funds, Included In the FY
1998-99 City Budget for this purpose m account 19-740-511-20099-8900-99666 In
addition, funds are available for Improvements to the community room from the City'S
settlement with National Medical Enterpnses held m deferred revenue account 01-000-000-
000-9870-04799 These funds are to support park acquIsition and development In both
the PICO and Mid-City Neighborhoods PICO Neighborhood ASSOCiation supports the use
of up to $396.455 (50% of available funds) for this project, which IS located In the PICO
Neighborhood The Council WIll be asked to appropriate funds from thIs account for
meeting room Improvements after more detailed construction cost estimates are prepared
In addition, the City's three-year CIP Includes $400,000 In CDBG funds In FY 2000-01 for
park development
Flnancmg for the acquIsition of the eXisting bUlldmg portion ofthe site ($600,000) would be
provided by CDBG hOUSing funds from the PIca Neighborhood HOUSing Trust Fund
Housmg funds are available In the follOWing accounts 19-720-264-20792-8905-99047
($138,631). 19-720-264-20093-8905-99047 ($351,911), and 19-720-264-20094-8905-
99047 ($109,458)
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RECOMMENDATIONS
Staff recommends that the City Council (1) authorize the CIty Manager to execute a
purchase and sale agreement with the County of Los Angeles for $1,200,000 for the
acquIsition of the entire County-owned site at 1525 Euclid Street, (2) enter Into a long-term
lease with United Cerebral Palsy for the housing portion of the eXisting bUilding, and (3)
authorize the City Manager to negotiate and execute the Memorandum of Agreement With
the State Office of Historic PreservatIon and other parties as necessary
Prepared by Jeff Mathieu I Director, Resource Management Department
Barbara Stinchfield, Director, Community and Cultural Services
Department
Bob MonCrief, Housing and Redevelopment Manager
Mike Strader, Senior Housing Analyst
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