SR-303-011 (9)
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Council Meeting: November 24, 1987
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Santa Monica, califgfhiJ 1987
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To:
Mayor and city council
From:
City Staff
Subject: Recommendation Regarding Proposed Expansion of virginia
Park
INTRODUCTION
During the budget adoption hearing of June 16, 1987, the City
Council directed staff to examine the feasibility of purchasing
property adjacent to virginia Park so that the total land area of
the park could be increased. The city Council also approved an
$800,000 loan from the General Fund reserves to enable such an
acquisition. It was stated that this $800,000 commitment by the
General Fund would be repaid from park-in-lieu fee receipts when
they become available. This report presents the latest
information on the parcels adjacent to virginia Park which are
currently available for purchase and recommends that the City
council authorize the City Manager to negotiate the acquisition
of one of these properties.
DISCUSSION
Two separate properties which adjoin virginia Park are available
for purchase. Both of these parcels are zoned C4 (commercial
development). The first parcel is located at 2201 Pica Boulevard,
the former site of the Pica Motel, and is currently vacant. This
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cleared parcel is directly east of the narrow section of Virginia
Park which fronts on Pica and contains a total of 18,772 square
feet of land (.43 acres). All utilities are available and all
street improvements are in place.
The second parcel is located at 2121 pica boulevard, directly
west of the narrow section of Virginia Park which fronts on Pico
Boulevard. This parcel is developed with about a 2,600 square
foot, one-story, brick building near the front of the property
that is in use by the Deak Plumbing and Heating company. Near the
northeast corner of this parcel is a one-story, wood frame single
family residence of approximately 1,000 square feet. There is a
small amount of landscaping around the residence, and the
remaining land between the buildings is paved for parking. The
total land area of this property is 19,189 square feet (.44
acres). All utilities are connected and all street improvements
are in place.
The asking price of the first parcel (2201 pico) is $1,235,000
($65 per square foot). The second parcel (2121 pica) has been
optioned by the Southmark Corporation for a proposed purchase
price of $1,040,000. This option was entered into on September
21, 1987 and will expire after eight m.onths, on May 21, 1988.
This optioned price comes to approximately $54 per square foot
for the property. Representatives of the Southmark Corporation
have indicated that they are willing to purchase this property
for the City if their park-in-lieu fee advance required under the
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terms of their proposed development agreement with the City is
reduced by an amount equal to the purchase price.
In July, ci ty staff contracted the services of an independent
appraisal firm to arrive at approximate market values for the two
properties in question. These appraisals are complete and City
staff now has in its possession the specific market value data on
each parcel.
Park-In-Lieu Fee Payments
Upon execution of the development agreement between the city and
Southmark Pacific Corporation for development of 2000-2224
Colorado, Southmark will advance $2.2 million of their required
$3.3 million of in-lieu fees to the city. Of this $2.2 million,
$1.1 million will be available for parks and $1.1 million will be
available for housing. The development agreement with Southmark
stipulates that the park-in-lieu fees which are received by the
City shall be utilized solely for acquisition and development of
land for new parks or expansion of existing parks. The purchase
of land to expand Virginia Park would therefore be a suitable use
of this park-in-lieu money. It is anticipated that the park-in-
lieu fee advance from Southmark will be received by the middle of
December.
Differences Between the Two Parcels
Both of the parcels described above have almost the same total
land area. Both of the parcels are also very similar with regards
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to their physical orientation to the existing park. Given these
similaritiesl it is the belief of staff that the decision as to
which property is acquired should be primarily based upon the
total costs to the city. A choice between the parcels is
therefore contingent upon the results of negotiations between the
city and the property owner/owners.
BUDGET/FINANCIAL IMPACT
It is likely that the purchase of the one property which arises
as the preferred choice will cost more than the $800,000 that is
currently budgeted as a General Fund loan. Once the land is
acquired, there will also be some costs associated with site
improvements to make the property usable as park space. It is
estimated that these landscaping and irrigation system
improvements will cost no more than $50,000.
since the exact budget impact of Virginia Park expansion is
presently uncertain, no specific budget adjustments are presented
for Council authorization at this time. City staff will return to
Council for budget adjustments related to the purchase of the
preferred property once more definitive cost information is
received.
RECOMMENDATIONS
It is recommended that the City Council authorize the city
Manager to negotiate the purchase of either the property at 2201
pico Boulevard or the property at 2121 pi co Boulevard so that
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virginia Park can be expanded. City staff will return to Council
at an appropriate time for any necessary budget adjustments
associated with the purchase.
Prepared by:
Craig Perkins
Senior Management Analyst