TITLE
Recommendation to authorize City Manager, or designee, to execute any and all documents including the Purchase and Sale Agreement (PSA) with Lyon Capital Ventures, LLC, a California limited liability company, for the sale of City-owned property at 100 Long Beach Boulevard (City Hall East) in an amount of $4,000,000; and to authorize the close of escrow. (District 2)
DISCUSSION
The City of Long Beach acquired the office building at 100 Long Beach Boulevard, also known as City Hall East (CHE), from Southern California Edison in June 2000 as part of the negotiated franchise agreement extension. The site consists of a ten-story office building having approximately 149,160 square feet of office space and includes a 149-space parking structure (Site Map). The building was originally constructed in 1959. In 2002, the first three floors of the building were renovated and occupied by the Long Beach Police Department as a temporary replacement facility while the City's existing Public Safety Building was being renovated. Since completion of the Public Safety Building improvements in June 2005, the CHE building has been vacant.
In May 2005, a Request for Proposals (RFP) was issued for the development of several downtown properties, including CHE. In April 2006, City Council authorized City staff to enter into separate non-exclusive Memorandums of Understanding (MOUs) to negotiate with two development teams, however, for a variety of reasons the City was unable to successfully reach agreement with either team. In July 2007, the City received another unsolicited offer to purchase the building, but primarily due to uncertainties related to the economy, was unable to successfully conclude those negotiations.
Beginning in July 2009, the City received four unsolicited offers from firms offering to purchase CHE and renovate the building for various proposed uses including residential, commercial office and hotel. Based upon this renewed level of interest, the City Counc...
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