HomeMy WebLinkAboutR-11459 approving amendment to FY 23-24 Budget Allocation for the Acquisition and Use of 1166 Higuera StreetR 11459
RESOLUTION NO. 11459 (2023 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING AN AMENDMENT TO THE 2023-
24 BUDGET ALLOCATION FOR FISCAL YEAR 2023-24 FOR
PURCHASE AND USE OF THE PROPERTY LOCATED AT 1166
HIGUERA STREET
WHEREAS, in accordance with the San Luis Obispo City Charter Section 802, the
City Manager submitted the 2023-25 Financial Plan to Council for its review and
consideration on June 6, 2023; and
WHEREAS, on June 6, 2023, the Council approved and appropriated the 2023-24
budget allocation including operating expenditures, debt service, and capital
improvement plan budget (Resolution No. 11429, 2023 Series); and
WHEREAS, the City created an Infrastructure Investment Fund to set aside
funding for future infrastructure projects that contribute to improved economic
development and enhanced quality of life in the City of San Luis Obispo; and
WHEREAS, the use of these funds is at the discretion of Council based on the
guidelines established; and
WHEREAS, acquisition of the property located at 1166 Higuera Street would serve
the City’s interests by providing interim parking supply in the Upper Monterey area upon
approval of a conditional use permit and would facilitate development and economic
revitalization in the Upper Monterey area, consistent with the City’s General Plan goals
and policies; and
WHEREAS, parking lot and landscape improvements, in addition to potential
demolition of an existing structure, need to be completed to facilitate the City’s use of this
property; and
WHEREAS, the Infrastructure Investment Fund balance is sufficient to cover costs
associated with purchasing the property located at 1166 Higuera Street; and
WHEREAS, the City intends that the acquisition is for the purpose of orderly
planning in the Upper Monterey area consistent with General Plan policies and future
use(s) (e.g. affordable housing, transit center, parking, or other public benefit community
serving uses) for this property shall be determined through a 24-25 workplan item to
initiate a comprehensive community planning process for Upper Monterey; and
WHEREAS, the City’s Infrastructure Investment Fund will be used to pay for
acquisition and improvement costs and will be reimbursed via an interfund loan with a
repayment by the Parking Fund at a rate of 2.88% and a repayment term of 30 years,
with deferral of principal payments for three years and interest payments starting
immediately; and
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WHEREAS, Council contemplates interim use of the acquired property for surface
parking purposes to support economic development, private investment and area
improvement consistent with the Downtown Concept plan and to maintain maximum
flexibility of future use of the property; and
WHEREAS, it is in the overall economic development interest of the City to defer
the repayment of the interfund loan principal balance to the General Fund from the
Parking Fund for three years from the close of escrow in order to provide maximum
flexibility to the General Fund and Parking Fund to identify and address current and future
program needs, informed by the Parking Rate Study, Economic Development Strategic
Plan, Downtown Concept Plan, or other mechanism, and to facilitate evaluation of
potential long-term uses of the property other than, or in addition to, parking; and
WHEREAS, during the period of interfund loan principal repayment deferral, the
parking fund shall bear all costs of improvement, maintenance and operation of the
property for parking uses, subject to City permitting and approval, and shall improve and
maintain in operation a surface parking lot.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The findings and declarations stated in the recitals above are true,
correct, and incorporated herein by reference.
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SECTION 2. The 2023-24 budget is hereby amended to appropriate $4,845,000
from the Infrastructure Investment Fund to cover costs associated with the purchase and
improvement costs for the property located at 1166 Higuera Street, San Luis Obispo, CA.
Upon motion of Vice Mayor Marx, seconded by Council Member Pease, and on
the following roll call vote:
AYES: Council Member Francis, Pease, Shoresman, Vice Mayor Marx, and
Mayor Stewart
NOES: None
ABSENT: None
The foregoing resolution was adopted this 14th day of November 2023.
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
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11/30/2023 | 9:08 AM PST