TITLE
Recommendation to authorize City Manager to execute a Purchase and Sale Agreement and Lease, by and between the City of Long Beach and The Nininger Revocable Living Trust dated October 14, 1999, or assignee, and all related documents necessary for the sale and lease of the City-owned land and improvements at 1439 Cota Avenue and
1412-1440 Seabright Avenue. (District 1)
DISCUSSION
The City owns 41,175 square feet of land at 1439 Cota Avenue and 1412-1440 Seabright Avenue (Site) that includes three concrete and corrugated metal warehouse buildings totaling 12,000 square feet (see attachment). Technology Services (TS) currently manages this property and uses one warehouse to store retired City assets, such as desks, cabinets, chairs, and other equipment. The Long Beach Police Department (PD) uses the other two warehouses for storage. PD also utilizes containers on the Site for additional storage.
TS conducts public auctions on the property approximately three times per year. These auctions include unclaimed items that are released for sale as well as retired City assets described above. TS has concluded that live auctions are an inefficient use of City resources and is in the process of preparing a Request For Proposals (RFP) to outsource this function and/or conduct online auctions. The RFP should be released within the next 60 days. As a result, TS will be vacating the building it currently occupies.
PD has ongoing requirements for storing evidence, which are estimated to increase over time. PD has considered vacating the Site and leasing larger warehouse and storage facilities nearby to accommodate increasing storage requirements.
In researching the local marketplace, monthly rental rates average around $0.30 per square foot for vacant land and $0.65 per square foot for warehouse buildings. For a similarly sized and improved property, this equates to approximately $120,000 to $150,000 per year in lease expense, depending upon the proportions of land...
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