SR-1000-001-04 (2)
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Counc1.1 J1eeting of 6/12/84
JU~ 1 : JSo.,
Santa Monlca, Californla
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Addendum to City Council Agenda Item llF
INTRODUCTION
This report is an addendum to C1.ty Counc1.l Agenda Item llF
authorizing the purchase of 602-620 Colorado Avenue and 1606
Seventh Street for the future expans~on of the Munic~pal Bus
Llnes FaC1IJty. The report provides add1.t1.onal informat1.on
and a recommendat1.on that the C1.ty Cauncll establlsh a reserve
relocatJon fund to meet any future potent1.al relocation ex-
pense assoclated wlth the acqulsitlon of the slte.
BACKGR.OmJD
Under the proposed terms for acqu1sitlon, the City has request-
ed that the seller mod1fy the term of the exist1ng lease ~vith
Richard's Surgical to 3.5 years. There 1S some possiblllt~ that
this action may cause the City to be liable for relocation ex-
penses to the lessee pursuant to Government Code Section 7260 in
the event the lessee is dlsplaced. Th1S would requlre the Clty to
pay for the costs of relocating the tenant.
DISCUSSION
An ~ndependent and prel1minary estlmate has been received by
C~ty staff WhlCh estimates the total cost for relocatlon to be
approxlmately $500,000. Staff has identif1ed additional funds
/4t1d t8 /1-';:
JUN 1 2 1984
WhlCh may be used to this potentlal obl1gatlon. There are
currently addit10nal funds ava1lable from the or1g1nal Trans-
portation CONmlssion and SCAG program funds which were provided
to the City for 51te acquisitlon. In addltlon there 15 lease
revenue of approximately $700,000 to be derived from the acqu1-
sltlon of the site which could be used towards fundlng any
potential relocatlon expense. If the Clty can not ldent1fy an-
other capital improvement proJect WhlCh meets the Transportatlon
Cornmlssion and SCAG's crlterla, the funds will revert back to
thelr oTlglnal fundlng source and wlll no longer be available to
the Clty.
RECO~t~ENDATION
It 1S staff's addltlonal recommendation that the City Councll
establlsh a reserve relocatlon fund to be funded from any re-
mainlng funds available from account number 41-980-007-000-000
and from any future lease revenue derlved from the acqulsition
of 602-620 Colorado Avenue and 1606 Seventh Street.
Prepared by: Ernesto R. Flores, Manager
EconO~lC Development D1V1Slon
Community & Economic Development Department
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