sr-112365-8bI3A TE
TO:
FROM
CITY OF SANTA MONICA 65-C-50
October 21, 1965
The Honorable City Council
Perry Scott, City Manager
SUBJECT: Surplus City .Properties
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The fallowing city-owned properties are currently {or will be in the foreseeable
future] in excess of the basic operating requirements of the Gity,
Water System Property
Charnock Wells (portion) 315,375 sq, ft, ±
Transportation System Property
Parking Area 37, 733 sq, ft. ±
Gas Tax Fund Properties
Excess R/W along Nielson Way 29>800 sq, ft. ±
Excess R/ W along 26th Street and Cloverfield 8,300 sq, ft, ±
General Properties
Fire Station--Norman Place and Washington Blvd. 5, 000 sq, ft, ±
Fire Station--Broadway and 20th Street 7, 500 sq, ft. ±
Parcel at Main Street and Pacific 18, 000 sq, ft. }
Parcel at Strand, Main, Hollister ~c Nielson 31,200 sq, ft, ±
Moss Tract, Portion of Lots 6 and 7 520 sq, ft, ±
Main Street, Pico Boulevard and Ocean Avenue 75, 965 sq, ft, ±
Library at Fifth Street and Santa Monica Blvd, 15, 000 sq, ft. ±
Water System Property
It was previously reported that it was the administration's position that the City
could beneficially dispose of appxoximateiy 7 acres of the Charnock Wells
property, subject to the reservation and retention of all water and mineral rights,
This portion of the property fronts on Ocean Park Avenue and is currently under
lease for radio transmitting facilities (lease expires February 28, 1966) and
Little League baseball {lease expires November 30, 1970). The lease to the
North Venice Little League, however, contains a 90-day cancellation. clause v~hi::'.^.
would permit the City to recapture the property in the event the City Council
decides the property should be sold,
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Date: October 21, '1g~65 ''
To: The Honorable City Council
Subject: Surplus City Property
The property in question is currently zoned for single family residential uses
and is in an area that would be suitable for apartment development. Rezoning
of this property for apartment development would potentially increase the value
by up to 25%. It is therefore the recommendation of the administration that we
be directed to institute rezoning proceedings in the City of Los Angeles on this
portion of the property prior to offering the property for sale.
It is possible that the sale of this property would finance all or a major portion
of the capital costs associated with -the modification of our water treatment
facilities. Rezoning and actual transfer of title may well involve as much as one
year or longer and would potentially delay the construction of water treatment
facilities if these revenues were to be assigned the responsibility of financing
the project. Accordingly, it is the recommendation of the administration that the
Gity Council:
A. Authorize and direct the issuance of revenue bonds for the water treatment
facilities,
B. Authorize the initiation of the legal action recommended by the legal firm of
O'Melveny and Myers.
C. Authorize the rezoning and sale of the subject 7 acres of the Charnock Wells
property.
It is conceivable that the subject property could be sold in time to meet the cash
disbursement obligations of the Gity for the water treatment facilities. In the
event this proves to be true, then it would not be necessary to issue the revenue
bonds proposed. On the other hand, if it proves necessary to actually issue the
revenue bonds, they can be issued with a redemption or call provision which
would permit the retirement of the bonds from the proceeds of the sale of the land.
Transportation System Property
The current budget includes the funds estimated as necessary to acquire alterna.-
five parking for the Transportation yards just north and west of the Transportation
Department office. Following the acquisition and improvement of this property,
the existing parking area east of Seventh Street may be declared surplus and sold,
We do not believe that revenues from this source should be used to finance
improvements or facilities except those of the Transportation system.
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Date:' :OeYober 21, ' 1965 ''
To: The Honorable Gity Council
Subject: Surplus City Property
Gas Tax Fund Properties
The excess right-of-way along Nielsen Way, as well as 26th Street and Glover-
field Boulevard, should be sold. The original acquisitions were for street
improvement purposes and were financed from gas tax funds. Revenues from
the sale of these properties must be redeposited in the gas tax fund and expended
for streetsmprovement purposes.
General Properties
Ali general properties listed {except the fire station site at Broadway and 20th
Street] could be disposed of immediately if purchasers with the requisite financial
resources were available. We cannot, however, recommend immediate sale of
such properties as are surplus in the Ocean Park area without advising the
Council that in our opinion the value of such propexties will be substantially
enhanced by the completion of the redevelagment project I{a). We believe these
properties should be retained by the City until at least July 1, 1966.
The parcel bounded by Main Street, Pico $oulevard, and Ocean Avenue has
heretofore been reserved by the City Council as a potential hotel site. Unless
or until we can obtain a hotel developer, it may be reasonable to assume that
this parcel is not really available for sale. However, in the event the City
Council is disposed to approve a sale for other purposes, it is most probable that
the property could be sold in short order.
The abandoned fire station sste at Norman Place and Washington Boulevard, as
well as the old Main Library at Fifth Street and Santa Monica Boulevard, were
included as sources of current revenue in the budget adopted by the Council in
July of 1965. Accordingly, revenue from the sale of these two properties wo~al~
not be available for other than existing budget expenditures.
The fire station at Broadway and 20th Street is scheduled to be abandoned upon
the completion of a new fire house at Park Drive and Broadway. The construction
of the new facility is currently programmed for the 1966-67 fiscal year.
Other Considerations
The Council will undoubtedly recall that the new gas tax legislation requires
matching funds from local sources prior to the availability of such additional gas
tax revenues. It is and has been the intention of both the administration and the
-3-
Date: October 21, Iy65
To: The Honorable City Council
Subject: Surplus City Property
Council to provide matching fund credits with the flood control expenditures
scheduled for Santa Tvlonica. The acceptability of such expenditures for matching
fund credit has not as yet been approved by the State. In the event an adverse
determination is made by the State, the City would be required to produce other
matching funds to avoid loss of current allocations. Therefore, it would be
most desirable that the City increase rather than deplete unappropriated surplus, rr
at least until this determination has been made by the State. We would therefore
recommend that the proceeds from the sale of all general properties which have
not heretofore been budgeted for other purposes be credited to unappropriated
surplus.
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PERRY SCOTT
City iblanager
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c, c. City Clerk
City Attorney
Director of Finance-City Controller
Fire Chief
City Librarian
Director of Public Works
Director of Transportation