TITLE
Recommendation to authorize City Manager, or designee, to execute any and all necessary documents with Raintree-Evergreen LLC, a Delaware limited liability company, for the reduction in sale price of Broadway and Long Beach Boulevard (125-133 North Long Beach Boulevard and 234-248 East Broadway), Assessor Parcel Numbers 7280-025-903, -917, -922, -923; for a total purchase amount of $7,093,316. (District 2)
DISCUSSION
On June 21, 2016, the City Council authorized the sale of property located at Broadway and Long Beach Boulevard (125-133 North Long Beach Boulevard and 234-248 East Broadway) (Subject Property) (Exhibit A). The Subject Property totals 44,849 square feet and is assembled into a nearly half block of land currently utilized as a public parking lot. The total sales price approved was $7,300,000, or approximately $163 per square-foot.
The Subject Property is in escrow and the Buyer is pursuing entitlements. During that process, it was determined that an alley dedication including a corner cut of approximately 1,268 square feet of the Subject Property would be required for any project developed. As a result of the required dedication, there is a reduction in the developable square footage of the Subject Property. The Buyer has requested a proportionate reduction in the sale price of approximately $206,684 for a revised total sales price of $7,093,316. 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 November 2, 2017 and by Budget Analysis Officer Julissa José-Murray on November 9, 2017.
TIMING CONSIDERATIONS
City Council action is requested on December 5, 2017, to facilitate development of the Subject Property in a timely manner.
FISCAL IMPACT
This action ap...
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