TITLE
Recommendation to authorize City Manager, or designee, to execute any and all necessary documents with City Ventures, LLC, a Delaware limited liability company, or affiliate (Buyer), for the reduction in sale price of 4800 Long Beach Boulevard, Assessor Parcel Numbers 7133-010-900, -901, -902, -903, -904, for a total purchase amount of $1,109,056. (District 8)
DISCUSSION
On June 21, 2016, the City Council authorized the sale of property located at 4800 Long Beach Boulevard (Subject Property) (Attachment). The Subject Property totals approximately 48,127 square feet and is currently unimproved. The total sales price approved was $1,250,000, or approximately $26 per square foot.
The Subject Property is in escrow and a proposed development was approved by the Planning Commission on June 18, 2020. As a condition of approval, it was determined that a dedication of 13 feet of right-of-way along Long Beach Boulevard and 8 feet of right-of-way along East 49th Street adjacent to the project site would be needed by the City for future street widening projects. As a result, only 42,706 square feet remain as developable square footage of the Subject Property. The Buyer has requested a proportionate reduction in the sale price of approximately $140,944, which is equal to the original sale price of $26 per square foot, for a revised total sales price of $1,109,056. The revised sale price remains the highest price offered and provides the best value for the City. Additionally, the sale of the Subject Property remains consistent with the Successor Agency’s revised Long-Range Property Management Plan and dissolution law.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on May 11, 2021 and by Budget Management Officer Rhutu Amin Gharib on May 12, 2021.
TIMING CONSIDERATIONS
City Council action is requested on June 1, 2021, to facilitate the closing of escrow on the Subject Property, which will allow development to commence in a timely manner.
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