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SR-300-002-01-01 (2) ....... -~ .;NM:sh e e "-D HOV 1 0 198'J Santa Monica, California, November 5, 1981 3 pO ....(}()-;;..... PI ~t!? J TO' Mayor and City Council FROM. Ci ty Staff SUBJECT CDBG Property Acquisition - 2233 Fifth Street ~ack9round/Discussion In January 1980, City Council allocated 5165,000 in Community Development Block Grant (CDBG) funds for the acquisition of a residential property to be converted to a neighborhood center. A proposal was presented by FE (Fraternal Endeavors) which included an outline of proposed programs and activities to be implemented by that organization in the new center. Following delays caused by difficulty in finding a suitable site, on May 19, 1981 City Council set a deadline of six months for the identification of a site and the completion of the preliminary acquisition process. This process has now been co~pleted, in accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. An appraisal of the selected site (2233 Fifth Street) was performed, as well as a second, review appraisal. City Council action is now required if it desires to proceed further with the purchase of this property. The final appraisal amount is $168,000 and the City under applicable law, is required to offer at least that amount for the purchase of this property. The COBG budget amount is $165,000, and therefore, an additional $3,000 from COBG Contingency funds will be needed. II-D Recommendation It is recommended that City Council: NOV 1 0 198J 1. Appropriate an additional $3,000 in CDBG funds to augment the existing acquisition budget of $165,000; ~ e e Mayor and City Council -2- November 5, 1981 2. Authorize the City Manager to execute a "1,./ritten Offer to Purchase!' for the purchase of the property at 2233 Fifth Street for a total price of $168,000; and 3. That an agreed upon condition of the offer be that the seller waiver relocation rights under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and that waiver be in accordance with the requirements of 24 C.F.R. ~ 42.23. 4 Upon acceptance of the offer by the Seller and execution of a "lvaiver of Relocation Rights" by the Seller, authorize the City Manager to open escrow and execute all appropriate related documents. Prepared by: Nancy McFarland John Herner Ca ro I Korade NM'JH'CK:sh