TITLE
Recommendation to authorize City Manager, or designee, to execute any and all documents necessary, including a Purchase and Sale Agreement, with Peter Metropoulos, Trustee of the Thomas C. Maganes and Stella Maganes 1988 Family Trust, for the purchase of certain real property located at 1365 Long Beach Boulevard, Assessor Parcel Number 7269-015-001, in the amount of $815,000, and accept the Categorical Exemption CE 17-122. (District 1)
DISCUSSION
On July 5, 2016, the City Council approved the Fiscal Year 2017 (FY 17) Annual Action Plan for the expenditure of Community Development Block Grant, Emergency Solutions Grant and Home Investment Partnership Grant Funds (FY 17 Action Plan). Section X of the FY 17 Action Plan identifies priority community facilities and infrastructure projects the City will pursue, one of which is acquisition of the Subject Property for the purposes of expanding 14th Street Park (Exhibit A). The Subject Property is approximately 8,670 square feet and is improved with a vacant restaurant building. Acquisition of the Subject Property would provide additional open space consistent with the City's ongoing effort to improve the recreational needs of the residents, as well as allow 14th Street Park to expand its presence to Long Beach Boulevard.
The property owner has agreed to sell the Subject Property to the City for $815,000, which is approximately 8 percent above fair market value, as determined by an independent appraisal. Acquisition of the Subject Property above fair market value is allowable when the Subject Property is required and the settlement amount is reasonable, prudent, and in the public interest. The Subject Property is the only parcel that could extend 14th Street Park to Long Beach Boulevard and the purchase price is a less costly alternative to judicial resolution and potential litigation costs. In addition to the purchase price, an additional amount up to $30,000 will be expended for acquisition costs, including ...
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