ITEM 6-I

Council Meeting: October 24, 2000 Santa Monica, California

TO: Mayor and City Council

FROM: City Staff

SUBJECT: Recommendation to Award Bid to Award Bid to Sell Commercial Properties Located at 2051 Neilson Way and 2200 Michigan Avenue (Triangular Remnant), both in Santa Monica, California, Bid #2805 and Authorize Staff to Negotiate and Execute a Contract and Any Related Documents for the Sale of the Commercial Properties

Introduction

This report recommends award of bid to sell commercial properties located at 2051 Neilson Way, Santa Monica, California and 2200 Michigan Avenue (Triangular Remnant), Santa Monica, California for a total amount of $201,000. This report further recommends that the City Council authorize staff to negotiate and execute a contract and any related documents for the sale of the commercial properties.

Background

On February 8, 2000, the Mayor and the City Council adopted a resolution declaring the City-owned properties at 2200 Michigan Avenue (824 square feet) and 2051 Neilson Way (4,432 square feet) “no longer needed for the purpose acquired nor for any other public purpose.” Both sites are remnants which are too small for independent development, not currently in use, and of no interest to other City departments or local agencies. Because the adjoining property owners are interested in purchasing the sites, the Council authorized staff to proceed with the sale of the property in compliance with SMMC 2.24.110 and applicable state and federal regulations; and authorized staff to negotiate and execute all necessary documents to complete the sale.

In response to published Notices Inviting Bids (published August 24 and 27, 2000) in accordance with City specifications, bids were received and publicly opened and read on September 7, 2000. Proposal forms were mailed to seven vendors and notices were advertised in accordance with City Charter and Municipal Code provisions. Two bids, one for each property, were received as follows:

BIDDER

AMOUNT

LOCATION

Calstar Equities, Inc.

$180,000

2051 Neilson Way

Law Offices of Jon Kodani

$ 20,000

2200 Michigan Avenue

In compliance with SMMC 2.24.110, which states that sales of real property shall be awarded to the highest and best bidder, staff has evaluated the bids submitted by Calstar Equities, Inc. and Law Offices of Jon Kodani and finds that they meet City requirements.

Discussion

Because neither site can be developed nor effectively utilized by anyone other than the adjoining property owners, and the City has no alternative process for sales in situations

such as this, it is reasonable to accept the purchase offers as presented. The sale of the sites was widely advertised and further advertising is unlikely to result in additional or better offers on the properties.

Budget/Financial Impact

Funds from the sale of these properties will be deposited in General Fund Miscellaneous Revenue account number 01224.404170.

Recommendation

It is recommended that the City Council award Bid #2805 to Calstar Equities, Inc. in the total amount of $180,000 and to Law Offices of Jon Kodani in the amount of $21,000 as the most responsible bidders and authorize staff to negotiate and execute a contract and any related documents for the sale of the commercial properties.