Item 6-T

City Council Meeting 11-24-98 Santa Monica, California

To: Mayor and City Council

From: City Staff

Subject: Recommendation to Authorize the City Manager to Negotiate and Execute a Purchase Contract for Real Property Located at 2101 and 2115 Pico Boulevard, Amend the Contract with Takata Associates for Additional Design and Community Outreach Services, and to Adopt the Initial Study/Negative Declaration Prepared to Assess the Environmental Impacts Associated with the Purchase of the Property.

Introduction

This report recommends that City Council authorize the City Manager to negotiate and execute a purchase contract for real property located at 2101 and 2115 Pico Boulevard for an amount not to exceed $4,000,000, including all closing costs, and amend the contract with Takata Associates for additional design and community outreach services. This report also recommends that City Council adopt the Initial Study/Negative Declaration prepared to assess the environmental impacts associated with the purchase of the property by the City.

Background

In April of 1998, City staff became aware of the potential availability of real property located at 2101 and 2115 Pico Boulevard. The two properties consist of approximately 38,000 square feet of land with two 10,000 square foot buildings. The properties are strategically located immediately west of Virginia Avenue Park and staff recognized a potential opportunity to expand the land area of Virginia Avenue Park, consistent with land acquisition strategies in the City's Parks and Recreation Master Plan. This was particularly timely because the initial design phase for the Virginia Avenue Park expansion was underway, which includes improvements planned for the APico/Cloverfield@ site which was purchased by the City in 1989.

Staff retained a certified appraiser to determine the market value of the properties and an appraisal was prepared on August 5, 1998. The appraisal found the combined value of the two properties to be $3,950,000. A purchase offer was submitted to the property owner and negotiations ensued over a period of several months. Those negotiations were successful, concluding with an agreement to purchase at the appraised value, contingent upon City Council's approval of the transaction.

Discussion

Currently, a concept design for the Virginia Avenue Park Expansion project, for development of the 2.9 acres of land at the northwest corner of Pico and Cloverfield Boulevards as an expansion of the adjacent Virginia Avenue Park, is nearing completion. The community design process for the project began in March of 1998 and since then, four community design events as well as several neighborhood surveys have been completed. In the last few months, the concept design for the project has had initial reviews by the Virginia Avenue Park Advisory Board, the Recreation and Parks Commission, the Arts Commission, and its Public Art Committee.

The addition of these two properties to the Virginia Avenue Park Expansion project provides an excellent opportunity to enhance the project, provide more space for the park's currently over-crowded programs, and build upon the strong neighborhood character of the park. Development of the properties as part of the Virginia Avenue Park Expansion Project would allow the park to stretch from 21st Street to the intersection of Pico and Cloverfield Boulevards, a distance of almost 900 feet along one of the City's most heavily traveled arterials.

In recognition of the high land values and scarcity of land available for parkland acquisition, the Parks and Recreation Master Plan places a priority on the purchase of centrally located parcels which are accessible by the broadest cross section of residents. The assembly and acquisition of small parcels which can be combined to form larger pieces, and the purchase of property adjoined on at least two sides by streets is also advised. In particular, the Plan recommends that Asites adjacent to existing parks or schools would be desirable in order to capitalize upon existing resources and broaden recreational opportunities.@ The two properties in question clearly meet all of these criteria.

Upon acquisition, staff recommends the integration of these properties into the design of the expansion project, the extension of the current community outreach programs to define the program for these two additional sites, development of an expanded overall park concept design, and further review by City Commissions and City Council for final concept design. Additional funding to develop the two properties will be identified at the concept design approval stage and in the context of the FY 1999-2000 budget process. However, additional funds are currently needed for extended community outreach activities (workshop planning and facilitation), programming, initial site design, and environmental analysis of the two properties. Staff recommends that the contract and scope of work with the consultant team led by Takata Associates, the landscape architectural firm working on the Virginia Avenue Park Expansion Project, be amended to include this additional work, in an amount not to exceed $130,000.

CEQA Status

Purchase of the Properties

An Initial Study and Negative Declaration for the proposed purchase was prepared by the City Planning Division in compliance with CEQA. The Initial Study did not identify any significant adverse environmental impacts resulting from the acquisition of the property by the City. The document acknowledges that the property will remain in its present condition and that the City is purchasing this property to preserve the possibility of expanding Virginia Avenue Park in the near future. The Initial Study states that no plans for this expansion have been prepared. The twenty (20) day public review and comment period for the Initial Study and Negative Declaration commenced on October 29, 1998 and closed on November 17, 1998 and was noticed in The Argonaut. Planning staff received no comments during this public review period.

Since Housing and Urban Development (HUD) have discretionary approval of federal funding for portions of this project, an Environmental Assessment (EA) is currently being prepared to satisfy federal environmental review requirements in accordance with the National Environmental Policy Act (NEPA). The City is, however, only responsible for taking action on the Initial Study/Negative Declaration.

Development of the Properties

Once concept design plans are developed and approved by the City, a draft environmental impact report will be prepared, in accordance with CEQA, on the entire park expansion concept design (including the two Pico properties) prior to construction document preparation and actual construction.

Budget and Financial Impact

Community Development Block Grant (CDBG) funds in the amount of $1,447,082 and parkland acquisition funds in the amount of $2,552,918 are proposed for the purchase of the two properties. Approval of the use of the CDBG funds is currently under review by the Department of Housing and Urban Development (HUD). Upon approval, staff will return to the City Council with an amendment to the City's Consolidated Plan and any other required actions necessary to use HUD funding. If the HUD approval should delay the purchase as currently structured with the seller, parkland acquisition funds would be the sole source of funding.

Acquisition of these properties will be financed from funds budgeted from the following accounts:

If only parkland acquisition funds are used, acquisition of these properties will be financed from funds budgeted from the following accounts:

Funds are available in the following account for the additional design services and community outreach for the two properties:

Recommendation

Staff recommends that City Council authorize the City Manager to negotiate and execute a purchase contract for real property located at 2101 and 2115 Pico Boulevard for a purchase price not to exceed $4,000,000, including all closing costs, and amend the contract with Takata Associates for additional services for an amount not to exceed $130,000. Staff also recommends that City Council adopt the Initial Study/Negative Declaration prepared to assess the environmental impacts associated with the purchase of the property by the City based upon the following findings:

• Based upon the Initial Study and Negative Declaration, there is no substantial evidence that the project will have a significant effect on the environment;
• The Initial Study and Negative Declaration reflects the City Council's independent judgement and analysis; and
• The City Planning Division shall retain in their files the Initial Study and Negative Declaration adopted by the City Council.

Prepared by:

Jeff Mathieu, Director of Resource Management

Barbara Stinchfield, Director of Community and Cultural Services

Suzanne Frick, Director of Planning and Community Development

Howard Robinson, Economic Development Manager

Karen Ginsberg, Planning Manager

Gretchen Kubacky, Senior Real Estate Analyst

Brett Horner, Senior Administrative Analyst

Paul Foley, Associate Planner