SR-901-010
RM:HRD:RB:RB:f:\RESOURCE\SHARE\STAFFREPORTS\NeilsonWayVillas.doc
Council Meeting: June 14, 2005Santa Monica, California
To: Mayor and City Council
Chairperson and Redevelopment Agency
From: City Staff
Subject: Authorization to Explore the Possible Renegotiation of the
City/Redevelopment Agency Option to Purchase the Improvements
Located at 3100 Neilson Way
Introduction
This report requests authorization to explore the possible renegotiation of the
existing City/Redevelopment Agency option that allows the City or the
Redevelopment Agency in the year 2018 to purchase the improvements located
at 3100 Neilson Way.
Background
On July 13, 1976 the Redevelopment Agency of the City of Santa Monica
(Agency) entered into a ?Contract for Sale of Land for Private Redevelopment?
with Shapell Government Housing, Inc. for the purpose of facilitating a low and
moderate income housing development on the property located at 3100 Neilson
Way. The property was owned by the Agency and sold to the developer in
conjunction with the property?s redevelopment. A 100-unit affordable housing
development for low income seniors was completed in June 1977 and has been
in operation ever since. The contract provides that the City and the Agency have
the option in the year 2018 to purchase the land for one dollar and the
improvements for market value.
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Discussion
The developer has expressed an interest in renegotiating the City/Agency
purchase option and has requested that the City and Agency consider
renegotiating the contract. If City Council and Redevelopment Agency authorize
staff to explore the possible renegotiation of the purchase option, and a proposed
agreement to terms ensues, staff would return to Council and the Agency for
further authorization to execute a modification of the contract on behalf of the
City and its Redevelopment Agency.
Budget/Financial Impact
No budget or financial impact is incurred as a result of action on this
recommendation. Future budget or financial impact will be identified and
reported.
Recommendation
It is recommended that City Council and the Redevelopment Agency authorize
staff to explore the possible renegotiation of the existing City/Redevelopment
Agency option that allows the City or the Redevelopment Agency in the year
2018 to purchase the improvements located at 3100 Neilson Way.
Prepared by: Jeff Mathieu, Director, Resource Management Department
Ron Barefield, Acting Housing & Redevelopment Manager
Jim Kemper, Acting Housing Administrator
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