THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF ,

M E M O R A N D U M 5

DATE: FEBRUARY 21, 2008 CR2140

TO: CRA/LA BOARD OF COMMISSIONERS

FROM: CECILIA V. ESTOLANO, CHIEF EXECUTIVE OFFICER

RESPONSIBLE PARTIES: CAROLYN HULL, REGIONAL ADMINISTRATOR ALVIN JENKINS, PROJECT MANAGER

SUBJECT: AUTHORIZATION TO ACQUIRE TWO PARCELS (AND TO PAY FOR RELATED DEMOLITION AND CLOSING COSTS) LOCATED AT 3700 W. MARTIN LUTHER KING, JR. BOULEVARD AND 4013 MARLTON AVENUE FROM DISCOUNT SECURITY STORAGE FOR A TOTAL AMOUNT NOT TO EXCEED $5,250,000 AMENDED CRENSHAW REDEVELOPMENT PROJECT AREA REGION (CD8)

RECOMMENDATIONS

1. That the CRA/LA Board of Commissioners authorize: (i) the acquisition of two adjoining parcels located at 3700 W. Martin Luther King, Jr. Boulevard and 4013 Marlton Avenue from their owner, Security Discount Storage, for an amount not to exceed $5,100,000, (ii) the expenditure of $150,000 for demolition and escrow closing costs related to these parcels, (iii) the Chief Executive Officer or designee to award a contract to demolish a vacant crime-ridden building on said parcels in an amount not to exceed $140,000; and (iv) the Chief Executive Officer or designee to take the necessary steps to carry out these actions, and

That the CRA/LA Board of Commissioners, subject to City Council review and approval, amend the FY08 Budget and Work Program to:

2. Transfer $5,000,000 from ”CRA/LA Land Acquisition Fund” to budgeted line item “Commercial and Industrial”;

3. Advanced Carryover of $57,000 in General Revenue funds from the FY07 Budget and Work Program; and

4. Recognize additional projected Tax Increment resources of $103,000 in the FY08 Budget and Work Program.

3700 MLK BLVD. AND 4013 MARLTON AVE. PROPERTY ACQUISITION

2

SUMMARY

The Purchase Transaction

Staff recommends CRA/LA acquisition of an opportunity site consisting of two adjoining parcels located at 3700 W. Martin Luther King, Jr. Boulevard and 4013 Marlton Avenue (collectively “Property”) through a negotiated purchase from their owner, Security Discount Storage (“Owner”). The Property, APN #s 5032-0003-001 and 013, is located at the southwest corner of these two streets. (See Location Map of Property on Attachment “A” and Site Map on Attachment “B” hereto.) Staff intends to use the Property for redevelopment consistent with the objectives of the Amended Crenshaw Redevelopment Plan (“Redevelopment Plan”) and with City zoning, for the development of retail uses as part of the 22-acre Marlton Square mixed-use development project (“Marlton Square Project”). The two parcels which constitute the Property are adjacent to each other. Staff recommends their purchase for $5,100,000, the Owner’s asking price. CRA/LA’s appraised value of the Property is $4,998,000, which is within 2% of the Owner’s asking price. The acquisition would be subject to completion of a Phase I environmental investigation of the Property. Staff also recommends the expenditure of $140,000 for demolition of the existing building on the Property, and $10,000 for escrow and related costs. Actual costs for these two items are not to exceed $150,000.

Staff also recommends the expenditure of up to $140,000 for demolition of the vacant building on the Property, and up to $10,000 for escrow and related costs. The Los Angeles Police Department has made numerous complaints about crime, noise and public nuisance at said building over the many months it has been vacant. Accordingly, staff will conduct a bid process under the State Public Contracting Code to award a demolition contract to promptly remove this building within said $140,000 budget limit.

The Redevelopment Plan Objectives Achieved

The proposed acquisition and redevelopment of the Property will implement several