sr-022564-8cDATE:
TO:
FR3z~/::
SUBJECT:
CITY OF SANTA MONICA
February 20, 1964
The Honorable Gity Council
Ernest N. Mobley, City Manager
Sale of Old ylain Library Site
64-C-33
There is attached hereto an offer from the Century Federal Savings
to purchase the old I~lain Library site at a price substantially in ex-
cess of our own appraisal.
We believe that the type of improvement proposedand the price
offered are such as to strongly argue for immediate acceptance
on a negotiated basis.
Our new building will not be ready for occupancy before June I of
1965. 12ather than accept full cash payment now and thereafter
pay what amounts to interest thereon, as they suggest, we would
recommend entering an escrow wherein Century Federz.l Savings
would be required to deposit a reasonable sum subject to forfeit
to the City if the deal was not consumated when we are ready to
relinquish occupancy and transfer tstle.
Subject to this modification in the proposal, we recammend sale
of the subject property to Century Federal Savings for tlae amount
offered. A resolution authorizing the sale and authorizing waiver
of bids is submitted herewith.
r' ;,.v
E?~1ES^_ N. iVIOBLEY~
City iVionager ~
L:Niv / js
cc: City Cierk
City Librarian
Director of Finance-Controller
~~
~ ~,
P~< ~ ~
p "~ ~~~.
t
~yy~ ~$g~ `~ 195q ~ ~~
L8 ~ ~3 Y.. ~,~d,~1~.~f ..`
~ A'o-xir ~~~ 1~'~~~81'"x~Tl
' OFFIL ERS
EIET
. CARL q =Ep ~ER CENTURY FEDERAL SAVINGS
HARRY F. CLARK
""` PREfl'°`"' AND LOAN ASSOCIATION
BEN R. PARKINS
execu nvs v¢E vResm ENr _ 7347 FIFTH STREET-SANTA MONICA. CALIFORNIA
HARRY J. CH RISTENSEN p. O. Box 709-EXeROOx 3-0117
SECgETA RY-TRETSl1R EP
February 12, 1954
Mr. Ernest N. Mobley, City Manager
City of Santa Monica
City Aall
lb$5 Main Street
Santa Monica, California
Dear Mr. Mobley:
OAP ELTOflS
CARL E. TEGNER
HARRY F. CLARK
FRED G. REGMAN
ROGER S. MARSH ALL
BEN R. PARKINS
G7ith reference to the 15000 square foot site at Fifth Street and Santa Monica
Boulevard, presently occupied by the Santa Monica Library, and about which we
hive had some conversations expressing our possible interest in acquiring this
property should the city authorities decide to sell it, we are submitting below
our firm offer, This offer is considerably above the appraisal figure furnished
us by a competent, licensed appraiser who has made a thorough check on all re-
cent sales in the area, held extensive consultations at the County Assessor°s
Office, and who has had considerable experience in appraising properties of this
nature,
We are making this 1°above appraisal'° offer because the property is contiguous
to our present real estate holdings on Fifth Street, and we feel is, therefore,
of particular value to us.
We are hereby making a firm offer of $150,000.00 cash for the property, this
figure representing a somewhat generous appraisal as to the fair market value
of the bare land. Our Association will absorb the cost of demolition of the
presently existing structure either as additional cost of the bare land or as
a part of the construction costs of a new building.
As to our intent for the use of this ground, we definitely state that we are
not attempting to acquire this property for speculative purposes. As we do
not oom this property we cannot at this time have formulated definite plans
for its development, but in several informal conversations among the members of
our Board of Directors, it was pretty well agreed that we should put up a Class
A building of some four to six stories in height, with a full basement so con-
structed that it would qualify as a bomb shelter should such a drastic emergency
arise, The possibility exists that the building would also be so constructed
that additional stories could be added at a later date, providing there is a
proper demand or need for such space.
The larger part of the first floor quarters, and possibly all, would be oc-
cupied by our Association for Aome Office quarters,
Tile wish to point out that an acquisition date in the near future by this Associa-
tion is not important to us, but would grobably be advantageous to both the City
of Santa Monica and to ourselves, as an early sale date would provide the City
with funds for the possible .acquisition of additional parking lots to replace
those lost at the site of the new Library, and would provide our Association with
Mr. Ernest N, Mobley, City i~°ianager
February 12, 19b4
Page 2
a reasonable period for planning a new building, which we estimate will take
from twelve to eighteen months.
tde caish also to point out that the physical possession of the property in
the near suture is of no importance to us, due to the fact that the archi-
tectu-rai planning could proceed without possession as well as with possession.
Should the City authorities reach the decision to sell in the near future,
and a transaction with our Association is consummated, we would be agreeable
to the City retaining possession of the building as a tenant up to but not
beyond the date of December 31, 1965. The rental would be based on a net re-
turn to the Association of 6 per cent per annum on the amount paid for the
property. As our funds cost us 4.$ per cent, this would yield us a net profit
of but 1.2 per cent per annum. We think you will agree this is most reasonable.
Under such a rental agreement, the City of Santa Monica would be obligated to
take care of any taxes or assessments that might be placed against the subject
property due to the title having been transferred from municipal to private
o*.anership, and the City would also retain financial responsibility for any
needed repairs, maintenance, insurance and general up-keep.
It is the desire of this Association to pay a full-and fair price Eor this
property, and the above bid reflects that desire.
It is also the desire of this Association to erect in the near future the type
of structure that would be a definite and major asset to the City, and one which
would very definitely up-grade this paxticuiar,area.
We ask that you submit this offer to the proper governing body, and to advise us
at your earliest convenience of its decision.
Yours very truly,
+~~+ CENTURY FEDERAL SAVINGS AND LorllV ASSN,
i"~ ~ ~^ ~'
. t-~-~.
is ~~ f~~~,.
Carp: Tegner, Pr silent
B. R. Parkins, Exec. Vice Pres.
OFFIC ERE
CAftL E. TEGNER
HARRYRFS CLARK
vmE roes m ENT
BEN R. PARKINS
ETECU TIVE VICE rP E51VENT
HARPY J. CH FIST ENSEN
SECPETARY.TftEASVP'cR
CE\TTURY FEDERAL SAVINGS
AND LOAN ASSOCIATION
7347 FIFTH STREET-SANTA MONICA. CALIFORNIA
P. O. BoX 709-EXaROOK 3-0777
February 12, 19b4
Mr. Ernest N. Mobley, City Manager
City of Santa Monica
City Aall
1685 Main Street
Santa Monica, California
Dsar Mr. Mobley:
QE: Public Library Property at Fifth Street
and Santa Monica Boulevard.
As per our recent conversations, one in your office and one by telephone,
this Association has submitted a firm offer for the above referenced prop-
erty.
VIPECTOPS
CARL E. TEGNER
MARRY F. CLARK
FREp G. REDMAN
ROGER S. MA RS HALL
BEN R. PARKINS
We sincerely believe that the offer is a substantial one, and represents a
sum for this property to the City of Santa Monica substantially in excess of
its fair market value.
T-s" - '^ to supplement our letter of offer with some of our own thoughts about
__._,;:a, Boulevard, in particular as it affects the welfare and future of
Santa iionica, In the many years that the undersigned have lived
and worked in this City, we have developed a very deep attachment for the
co~rn7unity. One thing that distresses us deeply is what might be termed the
retrogression of downtown Santa Monica Boulevard, a thoroughfare that was
once tiie "main stem" of our community, and on which was located the financial
center, providing the homes for three major banks and ane savings and loan
association.
At Second and Santa Monica Boulevard there was formerly located the First Fed-
eral Savings and Loan Association, which left that area for its new location
at Fourth and [dilshire. After more than a year, the former home of that
association still stands vacant.
From Third and Santa Monica Baulevard the Bank of America moved over four
years ago to its new location at Fourth and Arizona, and that property still
stands vacant; this in spite of more than one plan having been announced for
its development -- plans which so far at least have never materialized.
On another corner of Third and Santa Monica Boulevard, the United California
Bank will leave as soon as their new quarters on Wilshire Boulevard are avail-
able for occupancy. Due to the architectural type of this building, it would
appear that there is a good chance for that building to also stay vacant for
a lengthy period.
.. ., .. .r_rr
h%r. Ernest N. P%obley, City Manager Page 2
February i2, i9b4
From Fourth and Santa P:onica Boulevard some tcvo or more years ago the Security
First National Sank moved to its new location at Fourth and Arizona. Its former
home stood vacant for many months, and was occupied for a short period by a
merchant of very mediocre quality. After a recent exterior face-lifting, this
property is now occupied by several small stores, with one or two vacancies
remaining.
If the city authorities want to stop the retrogression of the Boulevard that
bears the name of our City, what is needed is new development. The new Library
at Sixth and Santa Monica Boulevard will certainly be a very bright touch, and
the first new structure, of any consequence on Santa Monica Boulevard in the
downtown area.
We know that the erection of a building for this Association, which we can
assure you would be beautifully done in a high quality manner, would be a
second very bright spot which might well end the docanward trend on Santa Monica
Boulevard and bring new interest to this street by other private developers.
It could Drell prove to be a turning point.
As both of us have been with businesses directly connected with real estate
or in the real estate business for more than forty years, we are always in-
terested in the elimination of decay and retrogression, and never cease to
get a thrill out of seeing new, quality developments being constructed.
As you may knoca, our Association dates back to 1927, right here in Santa Monica.
TAe have groean with and participated in helping with the growth of this community,
and we know that the Chamber of Commerce and our local daily newspaper will con-
firm that all worthcahile local projects have always been able to depend on
"Century" for substantial support.
Should this Association succeed in acquiring the Library property, we will re-
ceive a great deal of satisfaction in playing our parts on behalf of the Associa-
tion in making a fine, attractive corner development. We feel that every Santa
Monica citizen would be proud of the end result.
Yours very truly,
CEN^1URY FEDERAL SAVINGS AND LOAN ASSN,
,r/
~°'
Carl E. Tegner, President
:~~~
B. R. Parkins, Executive Vice Pres.
BRP:S
•T
.'.H FAY £51.^.ENY ~y'~~~:i
IRRY J CHIfiIATEYSZN Q. ®. ®AX.6O~°EXBS8SZJK E4•LS9S E
$8CA3TAWY-Yal HA 9V PSR
February 2&, 396~s
® S~neat Yi. bley, pity er
old in Library Site
a are in receipt of your letter
gents on the sub~get as pee year
~ ~ _ r;
°
- ~
~
' '
- a
~
_.N
r ~~
T.
of Feb ry 19, aced hereby tender r c
inwitatian®
bt is #u3ly aec®ptable to tlxis Assosiati that, shou3d our o##ar be accepted,
sscr be a d at an manly daee, axed dosed at your su sated date of ®ctaber
1, 1953® rely suggested an earlier elosi data Wight ar might not haws
t 1 wanta$es.
ca mscr s beam ope d, the deposit da, and all partinea~t papers
pr er3y si d by b®t}t parties, anticipator negotiating with an arohi®