TITLE
Recommendation to declare City-owned property at 652 ½ Alamitos Avenue, Assessor Parcel Number 7266-006-900 (Subject Property), as surplus; authorize City Manager, or designee, to execute any and all documents necessary, including a Purchase and Sale Agreement, with the Robert Gumbiner Foundation, a California nonprofit corporation, for the sale of the Subject Property, in the amount of $27,500; and
Accept Categorical Exemption CE-19-221. (District 2)
DISCUSSION
The City of Long Beach (City) currently owns a vacant 3,150-square-foot parcel at 652 ½ Alamitos Avenue (Subject Property) (Attachment A). Formerly owned by the Redevelopment Agency of the City of Long Beach (Agency), the Subject Property was included in the Successor Agency’s Long Range Property Management Plan (LRPMP), which was approved by the State of California Department of Finance (DOF) on March 10, 2015 and amended on June 24, 2015. The Subject Property has been categorized with a permissible use of “Government Use” as the Subject Property was originally purchased by the Agency for traffic improvements including a sidewalk with access ramp compliant with the Americans with Disabilities Act. It also facilitated a northbound right-turn at the traffic signal and a bus stop. The Subject Property is now effectively a remnant parcel and is not reasonably capable of independent development.
The adjacent property owner, the Robert Gumbiner Foundation (Foundation), has expressed interest in purchasing the Subject Property to install a monument sign welcoming visitors to the Museum of Latin American Art (Museum), which is located adjacent to the Subject Property. The sale of the Subject Property to the Foundation would allow the Museum to maintain a presence on the corner of 7th Street and Alamitos Avenue, as well as remove the Subject Property from the City’s liability and allow the parcel to be placed back onto the property tax rolls.
The sale of the Subject Property is exempt from Government Code Section 54220 et seq (Chapter 621, Statutes of 1968), due to its size of less than 5,000 square feet and less than the minimum legal residential building lot size for this area. A Categorical Exemption, CE-19-221 (Attachment B), was completed related to the proposed transaction on September 5, 2019.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on August 26, 2019 and by Budget Management Officer Rhutu Amin Gharib on August 29, 2019.
TIMING CONSIDERATIONS
City Council action is requested on September 17, 2019, to facilitate the sale of the Subject Property.
FISCAL IMPACT
Sale proceeds of $27,500, less escrow and closing fees and recovery of administrative costs, will be remitted to the Los Angeles County Auditor-Controller for distribution to the affected taxing agencies. The net proceeds available for remittance is estimated to be $23,100. The County will distribute the net proceeds to the affected taxing agencies based on their share of the 1 percent tax rate. The City’s share is approximately 21 percent of the net sale proceeds, estimated to be $4,851. Consistent with City Council policy direction, 75 percent of the City's proceeds will be retained for non-recurring economic programs in the former Central Long Beach Project Area, and 25 percent will be retained for non-recurring economic programs with a citywide impact. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN KEISLER
DIRECTOR OF ECONOMIC DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER