TITLE
Recommendation to authorize City Manager to execute two Purchase and Sale Agreements and Escrow Instructions and all necessary documents for the acquisition of 8.0 acres of land from Amerigas Propane, L.P., a Delaware limited partnership, and subsequent conveyance of the same property on identical terms to Wilmington-Lomita Blvd., LLC, a California limited liability company. (District 7)
DISCUSSION
For over 10 years the City has pursued construction of the Sports Park project, located between California and Orange Avenues, south of Spring Street. The estimated cost is approximately $50 million and there is little likelihood of identifying the needed funding in the foreseeable future. Eight acres at the northeast corner of the Sports Park project (Site) are owned by Amerigas Propane, L.P. (Amerigas). Please see the attached exhibit. Earlier, the City had negotiated a purchase and sale agreement to acquire the Site for inclusion into the Sports Park project; however, this acquisition is also unfunded.
Without identified funding, the Sports Park project is not achievable, and there is no need for the City to acquire the Site.
Staff has also been working with Wilmington-Lomita Blvd., LLC (WLB), to permanently relocate a crane sale business to the City of Long Beach. The company currently has 100 employees, with gross revenues around $25 million, $15 million of which would be taxable crane and equipment sales. The company is growing about 20 percent per year. Additionally, the company averages two company acquisitions per year, which generate "asset sales" that are also taxable. No sites were identified that were sufficiently large and appropriately zoned to accommodate this use. However, with the demise of the Sports Park project, the Site is a potential location for a crane sale business. However, before any business could be established, appropriate permitting and environmental review would need to occur.
The Site and the rest of the Hilltop Property wa...
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