THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF LOS ANGELES, CA
DATE: APRIL 17, 2008 HO2100
TO: CRA/LA BOARD OF COMMISSIONERS
FROM: CECILIA V. ESTOLANO, CHIEF EXECUTIVE OFFICER
RESPONSIBLE PARTIES: CAROLYN HULL, REGIONAL ADMINISTRATOR WILLIAM CHUN, PROJECT MANAGER
SUBJECT: AUTHORIZATION TO ACQUIRE REAL PROPERTY LOCATED AT 3685 S. VERMONT AVENUE FROM THE CITY OF LOS ANGELES FOR AN AMOUNT NOT TO EXCEED $3,385,000 AND VARIOUS RELATED ACTIONS EXPOSITION / UNIVERSITY PARK REDEVELOPMENT PROJECT SOUTH LOS ANGELES REGION (CD 8)
RECOMMENDATION
That the CRA/LA Board of Commissioners:
1. Authorize the acquisition of real property located at 3685 S. Vermont Avenue from the City of Los Angeles for an amount not to exceed $3,385,000 and authorize the Chief Executive Officer or designee to execute the City’s standard title transfer documents and take such other necessary actions to carry out this transaction; and
That the CRA/LA Board of Commissioners, subject to City Council review and approval:
2. Amend the FY08 Budget and Work Program to transfer $525,000 in Bond Proceeds from budgeted line item “Public Improvements”, $1,867,500 in Bond Proceeds and Tax Increment from budgeted line item “Development Opportunities” and $404,000 in Bond Proceeds and Tax Increment from budgeted line item “General” into budgeted line item “Commercial Development”.
SUMMARY
The recommended actions will allow the CRA/LA to acquire a commercial opportunity site located just across the street from the University of Southern California (See Attachment A – Location Map) in the Exposition / University Park Redevelopment Project (Project Area). The City of Los Angeles General Services Department (GSD), acting as the real estate agent on behalf of the Los Angeles Public Library (LAPL), is disposing of an approximately 34,000-square foot parcel (Property), currently used for a limited time as the Exposition Park Dr. Mary McLeod Bethune Regional Branch Library. CRA/LA intends to purchase the Property at its appraised fair market value of $3,299,000.
MARY MCLEOD BETHUNE BRANCH LIBRARY ACQUISITION 2
Following acquisition of the Property, CRA/LA staff intends to issue a Request for Proposal (RFP) to identify a qualified commercial and/or residential developer that can develop a mixed- use development.
RE
Initial Action
SOURCE OF FUNDS
Exposition / University Park bond proceeds and tax increment.
PROGRAM AND BUDGET IMPACT
The recommended actions will amend the FY08 Budget and Work Program to transfer $2,796,500 to budgeted line item “Commercial Development” plus the existing $588,700 for a total of $3,385,200.
ENVIRONMENTAL REVIEW
Pursuant to State California Environmental Quality Act (CEQA) Guidelines Section 15004(b)(2)(A), future use of and/or disposition of the Property would be subject to environmental review pursuant to CEQA and CRA/LA approval of the future project.
BACKGROUND
The Property is currently improved with a 9,720-square foot, one-story Class “C” building and a surface parking lot for thirty nine (39) stalls. The Exposition Park Dr. Mary McLeod Bethune Regional Branch Library is currently open to the public. LAPL is currently constructing an approximately $10 million replacement library, Exposition Park Regional Branch Library, at 3900 S. Western Avenue, situated on the southeast corner of Western Avenue and 39th Street. The new 14,500-square foot Exposition Park Regional Branch Library is expected to be ready for operation in July 2008.
The Los Angeles Public Library Branch Facilities Plan was adopted by the Board of Library Commissioners in 1988. It consisted of two components: (i) Site Selection Guidelines that set standards for the size and features of branches based on location and the population served in each community and (ii) List of Projects that identified the facility status and need of each existing branch library and identifying the need for branch libraries in communities without existing libraries. The Facilities Plan was implemented through back-to-back Bond Measures approved by more than two-thirds of the voters of Los Angeles. Phase 1 was the 1989 Bond Program which provide $53.4 million for 26 library projects and Phase 2 was the 1998 Bond Program which provided $178.3 million for 32 library projects. The original Facilities Plan is completed except for two remaining projects (Exposition Park Regional Branch and Silver Lake Branch).
CRA/LA staff concluded that the property presented a strong economic development opportunity for new commercial and/or residential uses due to the close proximity to the University of Southern California. Staff has already received strong interest in the Property from a national pharmacy chain that wishes to establish a retail store in the area.
The Exposition/University Park Redevelopment Project Area Committee (PAC) supports this site acquisition. Councilmember Bernard Parks (CD 8) is in support of the recommended action. MARY MCLEOD BETHUNE BRANCH LIBRARY ACQUISITION 3
Cecilia V. Estolano Chief Executive Officer
______Glenn F. Wasserman Chief Operating Officer
There is no conflict of interest known to me, which exists with regard to any CRA/LA officer or employee concerning this action.
Attachment A – Location Map