TITLE
Recommendation to authorize City Manager, or designee, to execute any and all necessary documents with City Ventures, LLC, a Delaware limited liability company, or affiliate (Buyer), to amend the Purchase and Sale Agreement to allow for a reduction in sales price, in an amount up to $289,000, for a revised total purchase in an amount no less than $820,056, for remediation costs for the property at 4800 Long Beach Boulevard, Assessor Parcel Numbers 7133-010-900, -901, -902, -903, -904. (District 8)
DISCUSSION
On June 21, 2016, the City Council authorized the sale of property at 4800 Long Beach Boulevard (Subject Property) (Attachment). On June 1, 2021, the City Council authorized a price reduction based on the proportionate reduction of developable square footage available due to dedications required for future street widening. The Subject Property has received entitlements and is currently in the permitting process. Construction is anticipated to commence in summer 2022.
As part of the Buyer’s due diligence, elevated levels of lead were found in the soil and were anticipated to be remediated prior to construction. As preparation for construction activities continue, the amount of soil identified for excavation increased significantly and approximately 3,500 tons must be removed and disposed of prior to the residential development. The cost for soil removal is approximately $452,000 and presents a substantial challenge to the feasibility of the project, jeopardizing the likelihood of completion. The City and the Buyer have agreed to share in the costs associated with excavation to ensure the residential units can be built and home ownership opportunities are provided in the Virginia Village area. The City, as seller, will be responsible for 64 percent of the soil removal costs, in a total amount not to exceed $289,000, with the Buyer responsible for the remaining cost, and oversight of all remediation activities and fronting all associated costs. Up...
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