TITLE
Recommendation to approve an amendment to the Revised Long Range Property Management Plan to change the permissible use of the property at 2175 Atlantic Avenue from Future Development to Government Use. (District 6)
DISCUSSION
The City of Long Beach, as Successor Agency to the Redevelopment Agency of the City of Long Beach (Successor Agency), currently owns the property located at 2175 Atlantic Avenue (Subject Property) (Exhibit A). The Subject Property is approximately 13,990 square feet and is currently unimproved. Formerly owned by the Redevelopment Agency of the City of Long Beach, the Subject Property is included in the Successor Agency's Long Range Property Management Plan, which was approved by the State of California Department of Finance (DO F) on March 10, 2015 and amended on June 24, 2015 (Revised Plan). The Subject Property has been categorized with a permissible use of "Future Development," allowing for the disposition of the Subject Property through a Request for Proposals (RFP) process for development consistent with the vision and intent of the Central Long Beach Redevelopment Project Area and its guiding documents. As further required in the Revised Plan, the Subject Property has been conveyed to the City and is now a City-owned asset.
An RFP to purchase the Subject Property was advertised in the Long Beach PressTelegram on February 18, 2016, and 6,924 potential proposers specializing in purchase and development opportunities were notified of the RFP opportunity. Of those proposers, 78 downloaded the RFP via the City's electronic bid system. The Purchasing Division notified 733 Long Beach vendors to submit proposals, of which three downloaded the RFP and none submitted a proposal. The RFP document was made available from the Purchasing Division, located on the seventh floor of City Hall, and the Division's website at: www.longbeach.gov/purchasing. An RFP announcement was also included in the Purchasing Division's weekly update of Open Bid Opportunities, which is sent to 22 local, minority and women-owned business groups. One proposal was received on April 26, 2016.
A panel consisting of representatives from the Development Services and Economic and Property Development Departments, and an outside real estate economics consultant reviewed the one submittal. The panel determined that given the size of the Subject Property and lack of interest, the Subject Property would better serve the residents of Long Beach if retained for public use rather than private development. The Subject Property's adjacency to Burnett Library, as well as its location within an area that is deficient in open space, creates an opportunity to both address excess parking demand for the Burnett Library and provide needed open space for the local community. In order to do so, the Subject Property would need to be reclassified as Government Use.
To further the goal of providing enhanced community benefits, staff requests that the Successor Agency authorize an Amendment to the Revised Plan to change the permissible use of the Subject Property to Government Use.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on June 28,2016 and by Revenue Management Officer Julissa Jose-Murray on June 30, 2016.
TIMING CONSIDERATIONS
Successor Agency action is requested on July 19, 2016, so the Amendment to the Revised Plan regarding the reclassification of 2175 Atlantic Avenue may be considered by the Oversight Board on August 1,2016, and promptly submitted to the DOF for review.
FISCAL IMPACT
If the DOF approves the property's permissible use change from Future Development to Government Use, the City of Long Beach will be responsible for the development and maintenance of the Subject Property. Potential costs cannot be determined at this time due to the lack of specifics regarding the proposed parking lot and open space. As such specifics are determined, the City Council will be provided that information.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
AMY J. BODEK, AICP
DIRECTOR OF DEVELOPMENT SERVICES
PATRICK H. WEST
CITY MANAGER