AgdaPkt 2000-09-11 - Laserfiche WebLink

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REPORT To the Honorable Mayor and City Council From the City Manager September 11 , 2000 Subject Acquisition of Davies Property (Assessor's Parcel #'s 053-093-070, 080, 130 and 140) Recommendation (1) Approve Authorization to Purchase and (2) Appropriate funds for Acquisition Background At the recommendation of the Housing and Human Concerns Committee, the Council approved a setaside of CDBG and HOME funds for Landbanking beginning in Fiscal 1998/99. Since that time, approximately 1.2 million has been accumulated in federal funds for the express purpose of acquiring a site to be used for the development of affordable housing. These funds would be used with Redevelopment Housing funds depending on the cost of a site. Over the last few months, Council has authorized staff to pursue several sites for possible acquisition. During this period of time, the site owned by the Davies Trust, located at EI Camino between Vera and Lincoln Streets, was offered for sale. The Council had previously authorized staff to obtain an appraisal and environmental reports necessary to be able to make an offer on this property. The appraisal and environmental reports were obtained and the City and Redevelopment Agency are in a position to make a formal offer to purchase the property. The Agency appraisal valued the property at $2,028,000 and the written offer was made on this basis, as the attached report from Eminent Domain Counsel indicates, the owners had a valid offer at $2,125,000 and our Eminent Domain Counsel is recommending settlement on this amount. Attached is a report from Christine Fitzgerald, Special Eminent Domain Counsel. Our offer would also provide an indemnification for environmental costs to the seller. The Agency's environmental consultant estimates that there may be an additional cost of $150,000 - $195,000 to clean the site. The site includes four parcels, two of which are zoned commercial and two are zoned residential. The two residential units are currently occupied. The tenants would be eligible for relocation assistance under the Uniform Relocation Act as amended, at the time the units are demolished and the site is transferred to a developer. Additionally, these two units would be replaced within the housing development. General relocation notices will be sent to the tenants advising them of their rights if Council gives the authorization to acquire the property. Upon approval of authorization to purchase and appropriation of funds, escrow will close within the month of September. r'.'" -r'