TITLE
Recommendation to authorize City Manager to execute a Purchase and Sale Agreement and all documents necessary with the Redevelopment Agency of the City of Long Beach for the purchase of a 1.83-acre section of the former Pacific Electric right-of-way extending from Martin Luther King Jr. Avenue to Lemon Avenue for the Pacific Electric Right-of-Way Bike Trail Project at a cost of $1,200,000. (District 6)
DISCUSSION
On April 7, 2008, the Redevelopment Agency of the City of Long Beach (Agency) authorized the purchase of 2.76 acres of property at 2300 Martin Luther King Jr. Avenue for a total purchase price of $4,200,000. Of the 2.76 acres purchased by the Agency, 1.83 acres is comprised of the former Pacific Electric Right-of-Way (PE ROW) extending from Martin Luther King Jr. Avenue to Lemon Avenue (Subject Property) (Exhibit "A"). The Subject Property will be included in the development of the Pacific Electric Right-of-Way Bike Trail Project (Bike Trail Project), which includes developing sections of the former PE ROW with bicycle and pedestrian trails from the Willow Street Blue Line Station to Long Beach Community College and Chittick Field. The development of the remaining .93 acres will be passive recreation with benches, picnic tables, pedestrian trails and southern California native landscaping.
The Agency, acting as the City's agent, purchased the property in order to expedite the acquisition, utilizing 2006 Open Space Bond Funds until such time the City could secure authority to expend grant funding that had been awarded to the Bike Trail Project. Once the authority to expend grant funding had been received, the City was a) to enter an agreement with the Agency to purchase the property from the Agency, b) to obtain fee title to the Subject Property and c) to reimburse the 2006 Open Space Bond Funds for the amount of the grant funding.
The City was awarded $2,374,500 from the Metropolitan Transportation Authority (MT A) through the MT A's call for projects to develop the Bike Trail Project. Of the total grant, the MTA has authorized $1,200,000 for the acquisition of the Subject Property. In order to comply with grant requirements, a Purchase and Sale Agreement is required as well as transferring ownership of the Subject Property to the City by June 30, 2008. The funds paid to the Agency from the City will be reused to develop the Subject Property as well as a 3-acre parcel of the PE ROW extending from Walnut Avenue to Orange Avenue.
The remaining .93 acres of the Agency purchase is currently under consideration for grant funding by the San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy. If the City is successful in seeking grant funding, separate Council action will be requested to accept the grant, to appropriate the funds and to purchase the remaining property from the Agency.
This letter was reviewed by Chief Assistant City Attorney Heather A. Mahood on May 20,2008, and Budget Management Officer Victoria Bell on May 23,2008.
SUSTAINABILITY
The Subject Property will be developed as part of the Pacific Electric Right-of-Way Bike Trail Project. This Project will provide pedestrian and bicycle trails contributing to sustainable circulation. Additionally, drought tolerant landscaping will be planted, allowing for the beautification of a blighted portion of the PE ROW with minimal requirement of water resources.
TIMING CONSIDERATIONS
City Council action is requested on June 10, 2008, in order to facilitate the purchase from the Agency and the transfer of fee title to the City by the June 30, 2008 deadline.
FISCAL IMPACT
The acquisition amount of $1,200,000 has not yet been appropriated. The Department of Parks, Recreation and Marine will return at a later date to appropriate the funds in the Capital Projects Fund (CP) in the Department of Parks, Recreation and Marine (PR).
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
Dennis J. Thys
Director of Community Development
Phil T. Hester
Director of Parks, Recreation and Marine
NAME |
APPROVED: |
TITLE |
|
|
|
|
PATRICK H. WEST |
|
CITY MANAGER |