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7.3.A. - Page 2 <br /> house of about 1,170 square feet. It is held in the Dick G. Lee Trust. The house is in <br /> poor condition and the price to market was based on the assumption that it would be <br /> demolished and the site used for development. By moving quickly, the City was able to <br /> freeze the price and avoid a bidding war for a development site near to transit and <br /> Downtown. The property was offered at $349,000 and the City has pursued its purchase <br /> at that price. <br /> In preparation for the acquisition, the City has completed a Phase I environmental <br /> analysis to determine the likelihood of contamination that would require abatement. The <br /> report, prepared by AEM Consulting, indicates no known prior uses likely to be <br /> hazardous. Depending upon the disposition of the property, additional analysis for lead <br /> and asbestos in the building materials of the house will be completed. An historical <br /> evaluation of the house has also been completed, given its age and the determination is <br /> that structure is not historically significant. Finally, because there are tenants who will <br /> be relocated as a result of the City's acquisition, staff will retain a relocation consultant <br /> and enter into an agreement to prepare a relocation plan and work with the tenants to <br /> assist in their relocation and coordination of any benefit payments due from the City. <br /> If the Council authorizes the City Manager to take all steps necessary to complete the <br /> acquisition process, including acceptance of the Property, staff will proceed with the <br /> preparation of a relocation plan for the tenants, demolition plans for the house and site <br /> improvements, and evaluation of the inclusion of the property into Jardin de Ninos Park. <br /> The City has placed an initial deposit of $11,000 into the escrow account, with the <br /> remaining balance of $338,000 due upon close of escrow. If the City chooses to not <br /> proceed with the acquisition after the deposit is placed in escrow, it would be liable for a <br /> 3% liquidated damages charge ($10,470). The seller wishes to close within 30 days of <br /> escrow. <br /> A budget must be established for the acquisition of the property and related activities, <br /> including closing costs, studies, relocation plans and demolition plans. Staff <br /> recommends that $550,000 be appropriated within the Park Impact Fee Fund to fund <br /> pre-acquisition reports for hazardous materials and cultural resources, acquisition, <br /> preparation of a relocation plan for the four tenants, relocation of the tenants, <br /> preparation of plans and specifications for demolition of the house and site <br /> improvements, and a project manager to coordinate the work. Because no specific <br /> plans for the redevelopment of the site have been determined, this acquisition assists <br /> the City by banking the available property until a final plan for its use is developed and <br /> approved by the Council. Because there are sufficient funds in the Park Impact Fee <br /> Fund, staff recommends using that fund for the initial acquisition and planning. If the <br /> ultimate use is determined to not be related to park use, the Park Impact Fee Fund will <br /> be repaid by other City funds. <br /> ALTERNATIVES <br /> The Council can determine to not proceed with the acquisition process. <br />