25F - AGMT PROPERTY EXCHANGE - Laserfiche WebLink

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Property Exchange — Bristol Street Improvements Phase 4 February 20, 2018 Page 2 The property exchange is necessary to accommodate the improvements and widening for Phase 4 (Exhibit 1). The City owns property at 510-518 N. Bristol Street (Exhibit 2), which consists of an unused commercial office building and several remnant residential parcels from an earlier Bristol phase. Under the agreement (Exhibit 3), the parties will exchange fee interests in their respective properties with no further compensation. Mrs. Mendez is obligated under the agreement to complete construction and development of the City property as commercial office space and begin operation within 24 months following the close of escrow. If this condition is not satisfied, the City will have the right to re -purchase the property from her. The appraised values of the two properties are consistent with each other. To settle the matter would also avoid litigation costs of around $50,000 to $75,000. Additional savings will be seen in the termination of property management services for the 510-518 N. Bristol Street site to mitigate vandalism and break-ins. The acquisition of tenant interest is also necessary to accommodate the improvements. The above listed tenant agreed to quitclaim all of their tenancy interest, including loss of goodwill, for the listed purchase price. The purchase price was based on the appraised value determined by a State -licensed appraiser, and the offer was accepted by the respective tenant -seller. The purchase price for the acquisition listed above is shown in the corresponding agreement (Exhibit 4). STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 — Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy G (develop and implement the City's Capital Improvement Program in coordination with the Community Investment and Deferred Maintenance Plans). Approval of this item also supports the City's efforts to meet Goal #3 — Economic Development, Objective #2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies), Strategy C (support business development and job growth along transit corridors through the completion of critical transit plans/projects). ENVIRONMENTAL IMPACT In 1990, City Council approved the Bristol Street Final Environmental Impact Statement/Environmental Impact Report (FEIS/EIR No. 89-01). Due to several minor design modifications in Phase 4, which lies between Warner Avenue and St. Andrew Place, an Addendum to the FEIS/EIR was prepared and adopted pursuant to the California Environmental Quality Act by City Council on April 7, 2015. 25F-2