SR-407-003-018
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Council Meeting May 14, 1991
MAY 1- J. i991
Santa Monica, California
TO: Mayor and city Council
FROM: Ci ty Staff
SUBJECT: Recommendation to Authorize City Manager to Negotiate
and Execute Necessary Documents to Purchase 2233 and
2201 Pico Boulevard for Housing and Virginia Park
Expansion and to Appropriate Necessary Funds.
IN'l'kODUCTION
This report requests the city council to take necessary actions
to enable the city to acquire 2233 and 2201 Pico Boulevard,
commonly known as the Schurgin and Cook properties respectively.
These parcels are adjacent to Virginia Park in the pico
neighborhood, and would be used for a combination of affordable
housing and park expansion. It is necessary for the City Council
to appropriate monies to fund these purchases from the Housing
and Park Mitigation funds, the General Fund and the pico
Neighborhood Housing Trust Fund.
The purchase price for the
Schurgin property is $6.3 million dollars; the price for the Cook
property is $1.1 million dollars.
BACKGROUND
In 1986, the Schurgin Development company purchased the property
formerly known as the Smart and Final Iris site at 2233 pico
Boulevard. Schurgin planned to use the site for a combination
retail strip center and small grocery store, which development
review permit the City Council ultimately rejected. The property
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MAY 1 4 1991
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has been for sale for some months, and the property owners
approached the City to determine its interest in acquiring the
site. Staff negotiations with the owner have yielded a purchase
price of $6.3 million dollars for the ~15,745 square foot
.....
property, which contains several parcels zoned R-2 (38,125 square
feet) and C-4 (77,620 square feet).
This purchase is made possible through the use of accumulated
housing and parks mitigation fees, principally from the Southmark
Colorado Place Development Agreement and pico Neighborhood
Housing Trust Fund dollars, supplemented by a General Fund
contribution.
The property is currently leased to two movie
production companies, who will continue to occupy the site until
the expiration of their leases no later than August, 1991.
The Cook property at 2201 pica Boulevard is currently vacant land
for which the owner holds a development permi t to construct a
retail and office building. staff was able to negotiate a price
of $1.1 million dollars for this parcel, which is approximately
18,772 square feet and zoned C-4.
city control of these two properties will permit the construction
of 40 to 55 affordable housing units and a significant expansion
of Virginia Park to improve it and better connect it wi th pi co
Boulevard.
Specific design and use issues have not been
addressed at this time; it is anticipated that this will occur
subsequent to purchase of the properties through a process that
involves the affected neighborhoods.
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BUDGET/FINANCIAL IMPACT
Funding for these purchases is as follows:
Schurgin property
Mitigation Funds for Parks:
(deferred revenue account
01-000-000-00000-9870-04685)
$2,906,178.42
Housing Mitigation Funds:
(expenditure account
01-720-264-21689-8920-99059)
(deferred revenue account
01-000-000-00000-9870-04687)
2,036,789.21
10,295.75
Housing or Parks Funds:
(deferred revenue account
01-000-000-00000-9870-04686)
935,256.70
Pico Neighborhood Housing Trust Fund:
(expenditure account
(19-720-264-20791-8920-99047)
311,479.92
General Fund Unobligated Balance:
100,000.00
TOTAL:
$6,300,000.00
Cook Property
General Fund Reserves:
$1,100,000.00
Closing Costs
General Fund Unobligated Balance:
$15,000.00
It is necessary for the city council to appropriate $5,066,730.87
to
account
nUlnher
01-720-264-20091-8900-99050.It
is
also
necessary to transfer budget authority for $2,036,789.21 from
account
01-720-264-21689-8920-99059
to
account
number
01-720-264-21691-8920-99060 and to transfer budget authority for
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$311,479.92 from account number 19-720-264-20791-99047 to account
nnmher 19-720-264-20091-8900-99050.
RECOMMENDATION
It is respectfully recommended that the city Council take the
following action:
1. Authorize the City Manager to negotiate and execute necessary
agreements with the owner of 2233 pico Boulevard to acquire
the site for $6.3 million dollars.
2. Authorize the City Manager to negotiate and execute necessary
agreements with the owner of 2201 Pico Boulevard to acquire
the site for $1.1 million dollars.
3. Appropriate $5,066,730.87
01-720-264-20091-8900-99050.
at
account
number
4. Transfer budget authority for $2,036,789.21 million from
account number 01-720-264-21689-8920-99059 to account number
01-720-264-2009l-8900-99050.
5. Transfer budget authority for $311,479.92 from account number
19-720-264-20791-8920-99047 to account number
19-720-264-20091-8900-99050.
6. Direct Staff to return to the city Council at a later date
with a plan for involving the adjacent neighborhoods in a use
and design process to determine how best to use the sites for
the development of affordable housing and an expansion of
Virginia Park.
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Prepared by:
(cook)
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Peggy curran, Director
community Development
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