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SR-901-007~fl OCT I l 2004 F:\FINANCEWDMIN\Staff Reports\Fisher Lumber 10-12-04.DOC Council Meeting: October 12, 2004 Santa Monica, CA To: Mayor and City Council From: City Staff Subject: Resolution Approving Negative Declaration for the Purchase of Property Located at 1601 14th Street, Santa Monica, Authorization to Negotiate and Execute a Purchase and Sale Agreement for Acquisition of Said Property, Approve a Resolution of Intent Allowing Future Bond Proceeds to be Used to Reimburse the City for Costs Associated with the Project, Appropriation of Funds, and Approval of Financing. Introduction This report provides Council with information regarding transaction costs and financing options for acquisition of real property located at 1601 14th Street. (f Council determines that the acquisition is appropriate, the report requests that Council adopt a resolution approving a Negative Declaration for the purchase of the property, approve a financing plan that will include the appropriation of certain funds to achieve the transaction, approve a Resolution of Intent that will allow the City to be reimbursed from bond proceeds in the future, and authorize the City Manager to negotiate and execute a Purchase and Sale Agreement, and other related documents, with Riverstone/KC Limited Partnership, to effectuate the acquisition. Backaround On August 10, 2004, Council authorized staff to pursue the acquisition of certain real property located at 1601 14th Street, currently occupied by Fisher Lumber (the Subject Property). The acquisition wou(d preserve the possibility of expanding Memorial Park in ~ ~ ~~( 1 ~. 2004 the future although no project is contemplated in the near term. This acquisition would be consistent with strategies identified in the City's Recreation and Parks Master Plan and Open Space Element of the General Plan. Staff has also considered options that would further the strategies of the City's Recreation and Parks Master Plan, including potential partnerships with other institutions. Discussion The Subject Property is a 2.91 acre site, located at 1601 14th Street, adjacent to Memorial Park, and has a zoning designation of M1, Industrial Conservation District. Fisher Lumber is the tenant under a lease that expires on March 2005. The current use generates approximately $200,000 annually in tax revenue to the City. As authorized by Council, staff has conferred with the property owners, Riverstone/KC Limited Partnership and begun due diligence. A Purchase and Sale Agreement proposed by the seller provides for acquisition at fair market value of $18.5 million. The acquisition would be subject to the existing lease terms. Under the Agreement, the City would be required to immediately open an escrow and place into escrow a non- refundable deposit of $250,000. The seller has cooperated in providing information for due diligence and has allowed the City access. The City conducted a Phase I investigation of the site and a limited Phase II based on recommendations from Phase I assessment. The Phase II assessment consisted of a limited number of soil borings and monitoring of three existing 2 groundwater wells. The results of the Phase II investigation do not show site-wide or significant soil contamination. The investigation did reveal low levels of contaminants in the groundwater that are consistent with levels found elsewhere in the city. The absence of a detected on-site contamination source suggests that the site is not contributing to regional groundwater contamination. The Phase II investigation concluded that no additional investigation is warranted and minimal, if any, site cleanup may be necessary. However, because the purchase would be "as is", the city would assume responsibility for any and all clean up costs. Acquisition Costs and Other Financial Implications The purchase price of the property is supportable by market comparisons, based on an appraisal commissioned by the City. Staff is satisfied that the seller will not reduce the asking price and would find alternative buyers should the City decide not to proceed. This is a costly acquisition. Should the Counci! decide to acquire the property, and when a use or uses have been determined, the cost of improvements could be equivalent to the cost of the land purchase. For example, to realize the potential of an expanded park, a master plan for reconfiguration should be undertaken and executed, including the addition of parking, likely underground to preserve open space, clearly a costly undertaking. Annual operating and maintenance costs will be associated with any project ultimately determined appropriate to the site. As noted above, public use of the property will eliminate a substantial flow of tax revenue. Neither Santa Monica College nor the School District is currently in a position to partner with the City on 3 acquisition for eventual joint use of the site. While it would mean foregoing the advantages of the strategic Memorial Park location, the City could alternatively consider dedicating the costs of this acquisition to achieve a more ambitious timetable for the planned development at the Civic Center. . If Council chooses to pursue the purchase described above, in the short-term a combination of loans from Water and Wastewater funds and the use of one-time funds projec~ed to be available at year-end from the General Fund could be used for the acquisition. In the long-term, such an approach could require payback of the loans from the Water and Wastewater funds using debt financing or, over time, restoration from budget growth beyond that currently anticipated. Loans from Water and Wasfewater Funds The Wastewater Fund has cash available in the amount of $7.5 million that could be loaned to the General Fund for the acquisition of the property and the Water Fund has an available $2.5 million. The loans would accrue interest at the City's monthly portfolio earnings rate until repaid. One-Time Funds City financial policies require that funds of a one-time nature be dedicated to finite projects or other "one-time" uses rather than ongoing operational uses. In recent years of economic uncertainty, such funds have cushioned anticipated take-backs from the state and maintained the City's financial flexibility. It is anticipated that the stronger than 4 projected economic recovery, coupled with expenditure restraint in General Fund operations and the manner in which the state ultimately handled Vehicle License Fee payments to municipalities during 2003/04, will result in the availability of $7.1 million in one-time funds for FY 2003/04 that could be applied to the acquisition. In addition, $1.4 million associated with the Public Safety Facility remained at close out of the project and can be applied to the acquisition. Long Term Debt Financing The City may choose to issue debt obligation (bonds) to cover the cost of land acquisition, and ultimately whatever project is undertaken on the site. A Resolution of Intent is included as Attachment C that allows the City to reimburse itself from bond proceeds for land acquisition and other costs incurred prior to issuance of the bonds and maintain the tax-exempt status of the debt abligations. This action however, does not commit the City to issue debt obligations or to the nature or type of any specific development project ultimately undertaken. Given current financial forecasts, the City could issue new debt only if supported by ongoing revenue. A debt-capacity study by the City's financial advisor determined that new debt service supported by the General Fund could not be contemplated until FY 2007-08 at the earliest. 5 CEQA STATUS An Initial Study and Negative Declaration for the proposed purchase was prepared by the City Planning Division in compliance with CEQA. The Initial Study did not identify any significant adverse 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 purchasing this property to preserve the possibility of expanding Memorial Park in the future. The Initial Study states that no plans for this expansion have been prepared. The twenty (20) day public review and comment period for the Initial Study and Negative Declaration commenced on August 18, 2004 and closed on September 20, 2004 and was noticed in California Section of the Los Anqeles Times. City Planning staff received one comment letter during this public review period which reflected on the convenient location and services provided by Fisher Lumber, but did not raise any environmental issues regarding the proposed project. Budaet/Financial Impact To move forward immediately with the acquisition of property at 1601 14th Street, would required a loan from the Water Fund and Wastewater Fund. The acquisition of the property would require the following budget changes: 1. Record a loan befinreen the Wastewater Fund and the General Fund in the amount of $7.5 million. The loan will be recorded as a liability in the City's General Fund with a corresponding receivable in the Wastewater Fund. The 6 loan will be repaid at an interest rate equal to the City's monthly portfolio earnings. 2. Record a loan between the Water Fund and the General Fund in the amount of $2.5 million. The loan will be recorded as a liability in the City's General Fund with a corresponding receivable in the Water Fund. The loan will be repaid at an interest rate equal to the City's monthly portfolio earnings. 3. Approve the use of $8.5 million in available one-time funds from the General Fund for the project. ($1.4 million in un-needed funds from the recently completed Public Safety Facility project and $7.1 million in anticipated year-end funds resulting from expenditure savings and unanticipated revenue.) 4. Appropriate $18.5 million for the purchase of land at 1601 14th Street at account C010449.589000 (1601 14th Street Property Acquisition). Recommendation It is recommended that City Council: 1. Adopt a Resolution Approving a Negative Declaration for the purchase of the property located at 1601 14th Street; 2. Consider the acquisition of the subject property; and, if the decision is to proceed, authorize the City Manager to Negotiate and Execute a Purchase and 7 Sale Agreement with Riverstone/KC Limited Partnership for acquisition of real property located at 1601 14th Street, Santa Monica. 3. Approve a Reso(ution of Intent allowing future bond proceeds to be used to reimburse the City for costs associated with acquisition and environmental and other eosts associated with project. 4. Approve the budget appropriation and revenue changes identified above. Prepared by: Gordon R. Anderson, Assistant City Manager Mona Miyasato, Assistant to the City Manager for Management Services Steve Stark, Director of Finance Janet Shelton, Budget Manager Craig Perkins, Director of Environmental & Public Works Management Jeff Mathieu, Director of Resource Management Miriam Mack, Economic Development Manager ATTACHMENT A: Notice of Intent to Adopt A Negative Declaration on the Proposed Acquisition of 1601 14th Street ATTACHMENT B: A Resolution Adopting a Negative Declaration for the Purchase of the Property Located at 1601 14th Street. See adopted Resolution No. 9987 (CCS) ATTACHMENT C: A Resolution Declaring the City's Intention to Reimburse Expenditures From the Proceeds of Obligations to be Issued by the City and Approving Certain Related Actions See adopted Resolution No. 9988 (CCS) 8 ATTACHMENT A ~~ c~cy or NOTICE OF INTENT TO ADOPT A NEGATIVE DECLARATION ON THE PROPOSED ACQUISITION OF 1601 14T" STREET, SANTA MONICA, CALIFORNIA BY THE CITY OF SANTA MONICA TO: Concerned Persons FROM: The City of Santa Monica PROJECT TITLE: Property Acquisition -1601 14~' Street, City of Santa Monica, California PROJECT LOCATION: The property to be acquired consists of one parcel and is located at 1601 14th Street, Santa Monica. The property is bounded on the north by Colorado Avenue, on the south by Memorial Park, a City of Santa Monica public park, on the east by 16~' Street and on the west by 14th Street. DESCRIPTION OF PROJECT An Initial Study and proposed Negative Declaration have been prepared and are available for your review and comment. The Initial Study examines the environmental impacts of the proposed acquisition of 1601 14th Street by the City of Santa Monica, California. The property consists of one parcel as described below: The property is 2.91 acres. An existing tenant, Fisher Lumber, occupies a building that is 18,525 square feet in size. Also on the site are several storage sheds for the lumber business, and an area paved for parking. The City intends to purchase this site with the purpose of achieving various public purpose goals and objectives. There is currently no building demolition being contemplated and no plans for reuse or redevelopment have been prepared. The property will remain in its present condition until such time as plans are developed and approved by the City. Any future re-use or re-development of the site will be subject to separate review for compliance with the California Environmental Quality Act. No project-related environmental impacts have been identified in the Initial Study. The sites to be acquired by the City of Santa Monica are not included on any lists enumerated under Section 65962.5 of the Government Code regarding hazardous waste. HOW TO COMMENT ON NOTICE OF INTENT TO ADOPT THE PROPOSED NEGATIVE DECLARATION The City of Santa Monica encourages public comment on this and other projects. Copies of the Initial Study and proposed Negative Declaration on the proposed project are available for your review at the address below in the Office of the City Clerk and the City Planning Division public counter. A copy of the Initial Study may be obtained at the City Planning Division public counter. All documents that are referenced in the proposed Initial Study are available for review at the City Planning Division public counter, Room 111, City Hall, 1685 Main Street, Santa Monica, CA. The Initial Study is also available at the Santa Monica Public Library, 1324 5~' Street, Santa Monica, CA 90401 DUE DATE FOR COMMENTS September 13, 2004 at 5:00 p.m. WHERE TO SEND COMMENTS City Planning Division 1685 Main Street, Room 212 Santa IVlonica, California 90401-3295 Telephone: (310) 458-8341 Attention: Paul Foley, Senior Planner Espanol Esto es una noticia de un estudio preliminario y declaracion negativa sobre la adquisicion de propiedad por la ciudad de Santa Monica. Este estudio preliminario y declaracion negativa han sido preparados y estan disponibles para su revision y comentario. Para mas informacion, Ilame a Carmen Gutierrez al numero (310) 458-8341. CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 INITIAL STUDY AND NEIGHBORHOOD IMPACT STATEMENT DATE FILED: 8/18/04 This checklist is to be completed for all projects that are not exempt from environmental review under the California Environmental Quality Act (CEQA). The information, analysis and conclusions contained in the checklist form the basis for deciding whether an Environmental Impact Report (EIR), a Negative Declaration (ND) or a Mitigated Negative Declaration (MND) is to be prepared. Additionally, the checklist shall be used to focus an EIR on the effects determined to be potentially significant. I. INTRODUCTION Project Title: Property Acquisition - 1601 14th Street, Santa Monica 2. Lead Agency Name and Address: Planning and Community Development Department, 1685 Main Street, Room 212, Santa Monica, CA 90401 3. Contact Person and Phone Number: Paul Foley, Senior Planner, City Planning Division (310) 458-8341 4. Project Location: The~roperty to be acquired consists of one parcel and is located at 1601 14t Street, Santa Monica. The propertyis bounded on the north by Colorado Avenue, on the south by Memorial Park, a City of Santa Monica public park, on the east by 16th Street and on the west by 14t~' Street. 5. Project Sponsor's Name and Address: City of Santa Monica, 1685 Main Street, Santa Monica, CA 90401 6. General Plan Designation: Industrial 7. Specific Plan Designation: N/A CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 8. Zoning: M-1 Industrial Conservation District 9. Description of Project: The proposed project is the acquisition by the City of Santa Monica of the property as described below: Assessors Parcel No. 4283-010-008 Lega/ Description: "that parcel composing the Rancho San Vicente Y Santa Monica Tract, in the City of Santa Monica, County of Los Angeles, wifh an address of 1601 14th Street" The property is 2.91 acres. An existing tenant, Fisher Lumber, occupies a building that is 18,525 square feet in size. A/so on the site are severa/ storage sheds for the lumber business, and an area paved for parking. The City is purchasing this property to preserve the possibility of expanding Memoria/ Park in the future. There is current/y no building demolition being contemplated and no plans for reuse or redevelopment have been prepared. The property will remain in its present condition until such time as plans are developed and approved by the City. Any future re-use or re-development of the site will be subject to separate review for compliance with the California Environmental Quality Act. 10. Surrounding Land Uses and Setting: Briefly describe the project's surroundings. Surrounding uses include: To the south: Memorial Park, a City park; To the east: Several office buildings used for a music studio, general offices and administrative offices of the Santa Monica-Malibu Unified Schoo/ District; To the west: Light industria/ uses including appliance retail/warehouse/distribution and auto sforage and towing; and 2 CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 To fhe north: General lighf industrial uses. 11. Other public agencies whose approval is required (e.g., permits, financing approval, or participation agreement.) Santa Monica City Council authorization to proceed with purchase of the site. ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED Environmental factors checked below would be potentially affected by this project, involving at least one impact that is a"Potentially Significant Impact" as indicated by the checklist on the following pages. _ Geology/Soils _ Shadows _ Construction Effects _ Biological Resources Public Services _ Hazards/Hazardous Materials _ Air Quality _ Hydrology/Water Quality _ Population/Housing _ Cultural Resources _ Transportation/ Circulation _ Land Use/Planning _ Aesthetics _ Mineral Resources _ Mandatory Findings of _ Agriculture Resources Significance ENVIRONMENTAL IMPACTS In completing this checklist, keep in mind the following: Economic and Social Impacts Recreation Noise Utilities/Service Systems Neighborhood Effects 1) A brief explanation is required for all answers except "No Impact" answers that are adequately supported by the information sources a lead agency cites in the parentheses following each question. A"No Impact" answer is adequately supported if the referenced information sources show that the impact simply does not apply to projects like the one involved (e.g. the project falls outside a fault rupture zone). A"No Impact" answer should be 3 CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 explained where it is based on project-specific factors as well as general standards (e.g. the project will not expose sensitive receptors to pollutants, based on a project-specific screening analysis). All explanations should be contained in a"Discussion of Environmental Evaluation" which should be attached to this checklist. 2) All answers must take account of the whole action involved, including off-site as well as on-site, cumulative as well as project-level, indirect as well as direct, and construction as well as operational impacts. 3) Once the lead agency has determined that a particular physical impact may occur, then the checklist answers must indicate whether the impact is potentially significant, less than significant with mitigation, or less than significant. A potentially Significant Impact is appropriate if there is substantial evidence that an effect may be significant. If there are one or more Potentially Significant Impact entries when the determination is made, an EIR is required. 4) A Negative Declaration: Less Than Significant With Mitigation Incorporated applies where the incorporation of mitigation measures has reduced an effect from a Potentially Significant Impact to a Less Than Significant Impact. The lead agency must describe the mitigation measures, and briefly explain how they reduce the effect to a less than significant level (mitigation measures from "Earlier Analyses," may be cross-referenced). 5) Earlier analysis may be used where, pursuant to the tiering, program EIR, or other CEQA process an effect has been adequately analyzed in an earlier EIR or negative declaration. Section 15063(c)(3)(D). In this case, a brief discussion should identify the following: a) Earlier analysis Used. Identify and state where they are available for review. b) Impacts Adequately Addressed. Identify which effects from the above checklist were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed by mitigation measures based on the earlier analysis. c) Mitigation Measures. For effects that are "Less than Significant with Mitigation Measures Incorporated," describe the mitigation measures that were incorporated or refined from the earlier document and the 4 CITY OF SANTA MONICA. PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 extent to which they address site-specific conditions for the project. 6) Lead agencies are encouraged to incorporate into the checklist references to information sources for potential impacts (e.g. general plans, zoning ordinances). Reference to a previously prepared or outside document should, where appropriate, include a reference to the page or pages where the statement is substantiated. A source list should be attached, and other sources used or individuals contacted should be cited in the discussion. 7) The explanation of each issue should identify: a) The significance criteria or threshold, if any, used to evaluate each question; and b) The mitigation measure identified, if any, to reduce the impact to less than significance. III. ENVIRONMENTAL IMPACTS Pot. Less Than Less Than No Signif. Signif. Signif. Impact Impact With Impact Mitigation Incorporated 1. Geology and Soils. Would the project: a. Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: i) Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. - - - X ii) Strong seismic ground 5 CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 shaking? _ _ _ x iii) Seismic-related ground failure, including liquefaction? _ _ _ x iv) Landslides? _ _ _ x b) Result in substantial soil erosion or the loss of topsoil? _ _ _ x c) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off -site landslide, lateral spreading, subsidence, liquefaction or collapse? _ _ _ x d) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994), creating substantial risks to life or property? x e) Have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not available for the disposal of waste water'? x 2. Air Quality - Where available, the significance criteria established by the applicable air quality management or air pollution control district may be relied upon to make the following determinations. Would the project: 6 CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 , a) Conflict with or obstruct implementation of the applicable air quality plan? _ _ _ x b) Violate any air quality standard or contribute substantially to an existing or projected air quality violation? x c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non-attainment under an applicable federal or state ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)? _ _ _ x d) Expose sensitive receptors to substantial pollutant concentrations? x e) Create objectionable odors affecting a substantial number of people? _ _ _ x 3. Hydrology and Water Quality - Would the project: a) Violate any water quality standards or waste discharge requirements? _ _ _ x b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the 7 CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 local groundwater table level (e.g., the production rate of pre-existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? _ _ _ x c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion or siltation on or off-site? x d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result in flooding on- or off-site? x e) Create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff? _ , _ x f) Otherwise substantially degrade water quality? _ _ _ x g) Place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other hazard delineation map? 8 CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 x h) Place within a 100-year flood hazard area structures which would impede or redirect flood flows? x i) Expose people or structures to a significant risk of loss, injury or death involving flooding, including flooding as a result of the failure of a levee or dam? x j) Inundation by seiche, tsunami, or mudflow? x 4. Biological Resources - Would the project: a) Have a substantial adverse effect, either directly or through habitat modifications, on any species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. fish and Wildlife Service? x b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations or by the California Department of Fish and Game or US Fish and Wildlife Service? x c) Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but 9 CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? x d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? x e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? x f) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? x 5. Noise - Would the project result in: a) Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies? _ _ _ x b) Exposure of persons to or generation of excessive groundborne 10 CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 vibration or groundborne noise levels? x c) A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project? x d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the project? _ _ _ x e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? x 6. Shadows. Will the proposal produce extensive shadows affecting adjacent light sensitive uses or property? x 7. Hazards and Hazardous Materials - Would the project: a) Create a significant hazard to the public or the environment through the routine transport, use, or disposal of hazardous materials? _ _ _ X 11 CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? x c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or proposed school? x d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? x e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? _ _ _ x f) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working in the project area? _ _ _ x g) Impair implementation of or physically interfere with an 12 CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 adopted emergency response plan or emergency evacuation plan? _ _ h) Expose people or structures to a significant risk of loss, injury or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? 8. Population and Housing - Would the project: a) Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? b) Displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? _ _ c) Displace substantial number of people, necessitating the construction of replacement housing elsewhere? _ _ 9. Land Use and Planning. Would the project: a) Physically divide an established community? _ _ x x x x x x 13 CITY OF SANTA MONICA PLihNNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? x c) Conflict with any applicable habitat conservation plan or natural community conservation plan? _ _ _ x 10. Transportation/Traffic - Would the project: a) Cause an increase in traffic which is substantial in relation to the existing traffic load and capacity of the street system (i.e., result in a substantial increase in either the number of vehicle trips, the volume to capacity ratio on roads, or congestion at intersections)? x b) Exceed, either individually or cumulatively, a level of service standard established by the county congestion management agency for designated roads or highways? _ _ _ X c) Result in a change in air traffic patterns, including either an 14 CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 increase in traffic levels or a change in location that results in substantial safety risks? _ _ _ x d) Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? x e) Result in inadequate emergency access? _ _ _ x f) Result in inadequate parking capacity? _ _ _ x g) Conflict with adopted policies, plans, or programs supporting alternative transportation (e.g., bus turnouts, bicycle racks)? x i) Involve right of way dedication resulting in a reduced lot area? _ _ _ x j) Reduce access to other properties and uses? _ _ _ x k) Create abrupt grade differential befinreen public and private property? _ _ ~ x 11. Utilities and Service System - Would the project: a) Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board? _ _ _ x 15 CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 b) Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? ) _ _ _ x c) Require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects x d) Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or expanded entitlements needed? x e) Result in a determination by the wastewater treatment provider which serves or may serve the project that it has adequate capacity to serve the project's projected demand in addition to the provider's existing commitments7 L _ _ x f) Be served by a landfill with sufficient permitted capacity to accommodate the project's solid waste disposal needs? x g) Comply with federal, state, and local statutes and regulations related to solid waste? _ _ _ x 16 CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 12. Public Services a) Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: Fire protection? Police protection? Schools? Parks? Other public facilities? 13. Recreation _ _ _ x _ _ _ x x x _ _ _ x a) Would the project increase the use of existing neighborhood - and regional parks or other recreational facilities such that substantial physical deterioration of the faciiity would occur or be accelerated? x b) Does the project include recreational facilities or require the construction or expansion of recreational facilities which might have an adverse physical effect 17 CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 on the environment? x 14. Cultural Resources - Would the project: a) Cause a substantia! adverse change in the significance of a historical resource as defined in '15064.5 x b) Cause a substantial adverse change in the significance of an archaeological resource pursuant to ' 15064.5? x c) Directly or indirectly destroy a unique paleontological resource or site or unique geologic feature? , _ _ x d) Disturb any human remains, including those interred outside of formal cemeteries? x 15. Aesthetics - Would the project: a) Have a substantia! adverse effect on a scenic vista? () _ _ _ x b) Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway? _ _ _ X c) Substantially degrade the existing visual character or quality of the site and its 18 CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 surroundings? _ _ _ x d) Create a new source of substantial light or glare which would adversely affect day or nighttime views in the area? x 16. Construction Effects. Would the proposal have considerable construction- period impacts due to the scope, or location of construction activities? x 17. Economic and Social Impacts. Does the project have economic or social effects which would result in additional physical changes (e.g. if a new shopping center Iocated away from a downtown shopping area would take business away from the down- town and thereby cause business closures and eventual physical deterioration of the downtown)? _ _ _ x 18. Agriculture Resources: In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997) prepared by the California Dept. of Conservation as an optionai model to use in assessing impacts on agriculture and farmland. Would the Project: a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping 19 CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 and Monitoring program of the California Resources Agency, to non-agricultural use? _ _ _ x b) Conflict with existing zoning for agricultural use, or a Williamson Act contract? x c) Involve other changes in the existing environment which, due to their location or nature, could result in conversion of farmland, to non-agricultural use? _ _ _ x 19. Mineral Resources - Would the project; a) Result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the State? x b) Result in the loss of availability of a locally-important mineral resource recovery site delineated on a local general plan, specific plan or other land use plan? x 20. Neighborhood Effects. Will the proposal have considerable effects on the project neighborhood? _ _ _ x 21. Mandatory Findings of Significance. a) Does the project have the poten- tial to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife 20 CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 population to drop below self sustaining levels, threaten to eliminate a plant or animal commun- ity, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or pre-history _ _ _ x b) Does the project have impacts that are individually limited, but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects)? _ ,_ _ x c) Does the project have environ- mental effects which will cause substantial adverse effects on human beings, either directly or indirectly? _ _ _ x IV. DISCUSSION OF ENVIRONMENTAL EVALUATION The project is the acquisition by the City of Santa Monica of one lot within the City of Santa Monica, as described below: The property, located at 1601 14~' Street, Santa Monica, is 2.91 acres. An existing tenant, Fisher Lumber, occupies a building th~t is 18,525 square feet in size. Also on the site are several storage sheds for the lumber business, and an area paved for parking. The City intends to purchase this site with the purpose of achieving various public purpose goals and objectives. There is currently no building 21 CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 demolition being contemplated and no plans for reuse or redevelopment have been prepared. The property will remain in its present condition until such time as plans are developed and approved by the City. Any future re- use or re-development of the site will be subject to separate review for compliance with the California Environmental Quality Act. Geology and Soils (a, b, c, d, e) The proposed project does not have any impacts on geology and soils as the project entails only the purchase of commercial property by the City of Santa Monica and no construction or re-use of the property is planned. 2. Air Quality (a, b, c, d, e) The proposed project does not have any impacts on air quality as the project entails only the purchase of commercial property by the City of Santa Monica and no construction or re-use of the property is planned. 3. Hydrology and Water Quality The proposed project does not have any impacts on hydrology and water quality as the project entails only the purchase of commercial property by the City of Santa Monica and no construction or re-use of the property is planned. 4. Biological Resources (a, b, c, d, e, fl The proposed project does not have any impacts on biological resources as the project entails only the purchase of commercial property by the City of Santa Monica and no construction or re-use of the property is planned. 5. Noise (a, b, c, d, e) The proposed project will not have impacts on noise as the project entails only the purchase of commercial property by the City of Santa Monica and no construction or re-use of the property is planned. 6. Shadows The proposed project will not have impacts on shadows as the project entails only the purchase of commercial property by the City of Santa Monica and no construction or re-use of the property is planned. 7. Hazards and Hazardous Materials The proposed project will not have impacts on hazards and hazardous material as the project entails only the purchase of commercial property by the City of Santa Monica and no construction or re-use of the property is 22 CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 planned. 8. Population and Housing (a, b, c) The proposed project will not have impacts on population and housing as the project entails only the purchase of commercial property by the City of Santa Monica. 9. Land Use and Planning (a, b, c) The proposed project will not have impacts on land use and planning as the project entails only the purchase of commercial property by the City of Santa Monica. 10. Transportation/Traffic (a, b, c, d, e, f, g, h, I, j, k) The proposed project will not have impacts on transportation/traffic as the project entails only the purchase of commercial property by the City of Santa Monica and no construction or re-use of the property is planned. 11. Utilities and Service System (a, b, c, d, e, f, g) The proposed project will not have impacts on utilities and the service system as the project entails only the purchase of commercial property by the City of Santa Monica and no construction or re-use of the property is planned. 12. Public Services (a) The proposed project will not have impacts on public services as the project entails only the purchase of commercial property by the City of Santa Monica. 13. Recreation (a, b) The proposed project will not have impacts on recreation as the project entails only the purchase of commercial property by the City of Santa Monica. 14. Cultural Resources (a, b, c, d) The proposed project will not have impacts on cultural resources as the project entails only the purchase of commercial property by the City of Santa Monica and no construction or re-use of the property is planned. 15. Aesthetics (a, b, c, d) The proposed project will not have impacts on aesthetics as the project entails only the purchase of commercial property by the City of Santa Monica. 23 CITY OF SANTA MONICA PLANNING AND COMMUNfTY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 16. Construction Effects The proposed project will not have construction effects as the project entails only the purchase of commercial property by the City of Santa Monica and no construction or re-use of the property is planned 17. Economic and Social Impacts The proposed project will not have economic and social impacts as the project entails only the purchase of commercial properky by the City of Santa Monica. 18. Agriculture Resources (a, b, c) The proposed project will not have impacts on agriculture resources as the project entails only the purchase of commercial property by the City of Santa Monica and no construction or re-use of the property is planned. 19. Mineral Resources (a, b) The proposed project will not have impacts on mineral resources as the project entails only the purchase of commercial property by the City of Santa Monica and no construction or re-use of the property is planned. 20. Neighborhood Effects The proposed project will not have impacts on neighborhood effects as the project entails only the purchase of commercial property by the City of Santa Monica and no construction or re-use of the property is planned. 21. Mandatory Findings of Significance (a, b, c) a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish orwildlife species, cause a fish or wildlife population to drop below self sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or pre-history? No. The projecf will not degrade the quality of the environment as the project entails only the purchase of commercial property by the City of Santa Monica and no construction or re-use of the property is planned. 24 CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 b) Does the project have impacts that are individually limited, but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects)? No. The projecf has no cumulative impacts as the project entails only the purchase of commercial property by the City of Santa Monica and no consfruction or re-use of the property is planned. c) Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or indirectly? No. The project has no adverse effect on human beings as the project entails only the purchase of commercial property by the City of Santa Monica and no construction or re-use of the property is planned. V. DETERMINATION (See attachment) VI. SOURCES The following documents were used in determining the environmental effects of the proposed project: Land Use and Circulation Element, Safety Element, and Zoning Ordinance (all are available for review at the City Planning Division Public Counter). The following summarizes the content of these documents: Land Use and Circulation Element: Goa/s, policies, and objectives to guide development throughout the City, including the Industrial Land Use District 25 CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Santa Monica, California 90401-3295 where the subject property is located. E/R certified February 3, 1984. (State Clearinghouse Number 83071304) Safety Element: Goals and policies to reduce risks associated with natural and man-made hazards. EIR certified February21, 1995. State Clearinghouse Number 92031082. Zoninq Ordinance: City wide development standards. Final Supplemental EIR, June 1988. f:~ppd~.share\Fisher Lumber Acquisition\IS Checklist - Fisher Lumber.doc 26 Attachment A EXHIBIT "ONE" THAT PORTION OF RANCHO SAN VICENTE & SANTA MONICA, IN THE CITY OF SANTA MONICA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 3 PAGES 30 AND 31 OF PATENTS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, SHOWN AS PARCEL "A" ON SHEET 2 OF 2 OF EXHIBIT "B" ATTACHED TO CERTlFICATE OF COMPLIANCE NUMBER 93-001, RECORDED DECEMBER 17, 1993 AS INSTRUMENT NO. 93-2460572, DESCRIBED AS FOLLOWS: BEGINNiNG AT THE INTERSECTION OF THE SOUTHEASTERLY L1NE OF COLORADO AVENUE, (FORMERLY KNOWN AS RAILROAD AVENUE, 80.00 FEET WIDE) AS SHOWN ON AMENDED MAP OF THE TOWN OF SANTA MONICA, AS PER MAP RECORDED IN BOOK 39 PAGES 45, ET SEQ. OF MISCELLANEOUS RECORDS, IN SAID RECORDER'S OFFICE, WITH THE SOUTHEASTERLY PROLONGATION OF THE NORTHEASTERLY LINE OF FOURTEENTH STREET, 80.00 FEET WIDE, AS SHOWN ON SAID AMENDED MAP OF THE TOWN OF SANTA MONICA; THENCE ALONG SAID SOUTHEASTERLY LINE, NORTH 45 DEGREES 07 MINUTES 38 SECONDS EAST 761.31 FEET TO THE CENTERLINE OF SIXTEENTH STREET, 80.00 FEET WIDE, SAID CENTERLINE BEING A LINE PARALLEL WITH AND DISTANT 40 FEET NORTHEASTERLY, MEASURED AT RIGHT ANGLES FROM THE SOUTHWESTERLY LINE OF THE LAND DESCRIBED IN THE HIGHWAY EASEMENTS TO THE CITY OF SANTA MONICA, RECORDED AUGUST 18, 1923 AS INSTRUMENT NOS. 1333 AND 1334, IN BOOK 2667 PAGE 136 AND IN BOOK 2569 PAGE 253, RESPECTIVELY, OF OFFICIAL RECORDS, IN SAID RECORDER'S OFFICE; THENCE ALONG SAID CENTERLINE, SOUTH 44 DEGREES 46 MINUTES 40 SECONDS EAST 192.86 FEET TO THE SOUTHEASTERLY L1NE OF THE LAND DESCRIBED IN THE DEED TO THE LOS ANGELES AND INDEPENDENCE RAILROAD COMPANY, RECORDED DECEMBEER 11, 1875 IN BOOK 40 PAGE 282 OF DEEDS, IN SAID RECORDER'S OFFICE; THENCE ALONG SAID SOUTHEASTERLY LINE THE FOLLOWiNG FOUR COURSES: SOUTH 48 DEGREES 48 MINUTES 47 SECONDS WEST 40.08 FEET TO THE SOUTHWESTERLY LINE OF SAID SIXTEENTH STREET; THENCE SOUTH 47 DEGREES 53 MINUTES 51 SECONDS WEST 320.99 FEET; THENCE SOUTH 46 DEGREES 53 MINUTES 51 SECONDS WEST 80.04 FEET; THENCE SOUTH 45 DEGREES 52 MINUTES 34 SECONDS WEST 320.58 FEET TO SAID SOUTHEASTERLY A-1 PROLONGATION OF THE NORTHEASTERLY LINE OF SAID FOURTEENTH STREET; THENCE ALONG SAlD PROLONGATION, NORTH 44 DEGREES 50 MINUTES 47 SECONDS WEST 168.11 FEET T~ THE POINT OF BEGINNING. EXCEPTING THEREFROM, ALL RIGHTS, TITLE AND INTEREST IN AND TO ALL COAL, OIL, GAS AND OTHER HYDROCARBONS, GEOTHERMAL RESOURCES PRECIOUS METALS ORES, BASE METALS ORES, INDUSTRIAL-GRADE SILICATES AND CARBONATES, FISSIONABLE. MINERALS OF EVERY KIND AND CHARACTER, METALLIC OR OTHERWISE, WHETHER OR NOT PRESENTLY KNOWN TO SCIENCE OR INDUSTRY, NOW KNOWN TO EXIST OR HEREAFTER DISCOVERED UPON, WITHIN OR UNDERLYING THE SURFACE OF SAID LAND REGARDLESS OF THE DEPTH BELOW THE SURFACE AT WHICH ANY SUCH SUBSTANCE MAY BE FOUND; HOWEVER, WITHOUT THE RIGHT FOR ANY PURPOSE WHATSOEVER TO ENTER UPON, fNTO OR THROUGH THE SURFACE OR THE F{RST 500 FEET OF THE SUBSURFACE OF THE PROPERTY, AS RESERVED BY CATELLUS DEVELOPMENT CORPORATION, A DELAWARE CORPORATION, FORMERLY KNOW AS SANTA FE PACIFIC REALTY CORPORATION, IN DEED RECORDED DECEMBER 23, 1993 AS INSTRUMENT NO. 93- 2497110. Assessor's Parcel No. 4283-010-008. A-2 CITY OF SANTA MONICA PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT City Hall, 1685 Main Street, Room 212, Santa Monica, California 90401-3295 DETERMINATION Project Title: Property Acquisition - 160~ 14t" Street, Santa Monica, California Project Address: 1601 14th Street, Santa Monica, California On the basis of this initial evaluation: ! find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. X I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMFACT REPORT is required. I find that the proposed project MAY have a"potentially significant Impact" or "potentially significant unless mitigated impact" on the environment, but at least one effect: 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects (a) have been analyzed adequately in an earlier EIR or NEGATIVE DECLAf2ATION pursuant to applicable standards, and (b) have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project, nothing further is required. g ~ ~ g ~4 (~a~,~. c~.c-~>~ Date Planning Manager - City Planning Division EFF4 Last Revised: 3/99