TITLE
Recommendation to authorize City Manager to execute a Purchase and Sale Agreement and Quitclaim Deed, by and between the City of Long Beach and the Long Beach Housing Development Company, a non-profit public benefit corporation, and all related documents necessary for conveyance of the City-owned land and improvements at 2640-2644 Anaheim Street. (District 4)
DISCUSSION
On April 8, 2004, the City of Long Beach purchased property located at 2640-2644
Anaheim Street (Site) at a Los Angeles County Sheriff's Sale resulting from delinquent
earthquake loan assessments and property tax payments. The Site measures
approximately 5,850 square feet (see attached) and contains a two-story 1 1,700 square
foot building known as the Palace Hotel. The second floor of the Palace Hotel contains 24 vacant hotel rooms and a vacant on-site manager unit. The ground floor is divided into four retailkommercial units.
On December 7, 2004, the City Council approved a month-to-month rental agreement
for 1 ,107 square feet of ground floor space with Marjorie Freeman, DBA Family Nutrition Center (FNC). FNC occupied the Site prior to the City's acquisition and is. the sole tenant in the building. FNC pays $750 per month in rent and is responsible for its own utility payments. The City is responsible for property maintenance and water costs of approximately $270 per month.
Since the acquisition of the Site, the City has paid $10,610 in property maintenance
costs and $6651 0 in earthquake assessments. Future earthquake assessment
payments are due in two installments each year through 2015. The earthquake
assessments are calculated using an 11 percent interest rate, reflecting market
conditions for such coverage. The earthquake assessments could be pre-paid for a
lump sum payment of $167,500, if executed during July 2005.
On June 15, 2005, during closed session, the Long Beach Housing Development
Company (LBHDC) Board of Directors approved the acquisition of the Site from the City
for ...
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