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), for the reduction in sale price of 5100 Long Beach Boulevard, Assessor Parcel Numbers 7131-032-900, -905, -908, -909, -910, -911, -912, -913, for a total purchase amount of $2,214,727. (District 8)
DISCUSSION
On May 24, 2016, the City Council authorized the sale of property located at 5100 Long Beach Boulevard (Subject Property) (Attachment). The Subject Property totals approximately 75,376 square feet and is assembled into nearly a block of vacant land. The total sales price approved was $2,500,000, or approximately $33 per square foot.
The Subject Property is in escrow and a proposed development was approved by the Planning Commission on June 18, 2020. As a condition of approval, it was determined that a dedication of 8 feet of right-of-way along Cedar Avenue, 3 feet of right-of-way along East Sunset Street, 10 feet of right-of-way along East Home Street, and between 3 and 13 feet of right-of-way along Long Beach Boulevard adjacent to the project site would be needed by the City for sidewalk improvements and future street widening projects. As a result, only 66,731 square feet remain as developable square footage of the Subject Property. The Buyer has requested a proportionate reduction in the sale price of approximately $285,273, which is equal to the original sale price of $33 per square foot, for a revised total sales price of $2,214,727. The revised sale price does not represent the highest price offered but does provide 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 and by Budget Management Officer Rhutu Amin Gharib on May 11, 2021.
TIMING CONSIDERATIONS
Cit...
Click here for full text