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HomeMy WebLinkAbout06-18-1985 Item C7 - 692 Marsh Street Suplus Propertyctty oF san l'.1 CcIIJNGIL ) s oBrspo AGiENtrlAFIEPCIFIT MEETING DATE:June IB " I9B5 Paul A. Lanspery, City Administrative Officer Preoared bv: Anne M. Russell, Assistant Citv Attornev IFROM SUBJECT: Determine whether City l.{arsh and Broad) is nopublic purposes. property located at 692 Marsh Street (corner of Ionger needed for public parking or other CAO RECOMMENDATION: Adopt Resolution declaring property unnecessary for public parking other public purposes. or BACKGFIOUND On August 13' 1982r the City purchased the property at 692 Marsh Street(formerly wayne's Tires) from wayne and wirma Hesselbarth for $366r000.As a part of the negotiations leading up to the purchase, the Citygranted an option to repurchase the property to John Rossetti and RobinRossi, who had contracted to buy the property from the Hesselbarthsprior to any City involvement. The option will expire in August, LggT Iand is not triggered until City Council action declaring the propertyunnecessary for public parking purposes. The City acquired this property when a surface parking lot/possibleparking structure was being considered on Marsh Streel between Broad andNipomo. In .Tanuary' 1985, staff brought offers from the next threeadjacent property owners to the Council for consideration. The Councildetermined two of the offers to be excessive, and accordingrycountered. The counter-offers were not accepted by the propertyowners. The middle parcel of property subseluentllr sold to a ttriraparty. lftel the negotiations with the adjacent property owners fell through,Mr. Rossetti and Mr. Rossi contacted ttre City to determine whether theproperty was stiIl being considered for use as public parking. Underthe terms of the option, should the city council, by resolution,determine that the property is not to be used for puuric parkingpurposes, then Mr. Rossi and l,tr. Rossetti have an 6ption io purihu"" theproperty for the price the city paid to acquire it, or fair marketvalue, whichever is higher. Shou1d Mr. Rossi and Mr. Rossetti fail toexercise the option and consummate the purchase within the timespecified in the option, then the propeity could be disposed of in thenormal fashion. on May B' 1985r the Planning Commission determined that sale of thisproperty would be in conformity with the general plan. ALTERNAT IVES : 1 2 Continue to use the property asAdopt resolution declaring thefuture public parking purposesstaff to dispose of property. public parking.property unnecessary for present oror other public purposes. Direct c-r-/ -..\'Wru gl|iilliTB'Efu oo F, EPJ=' PROS AND CONS: I Alternative 1: There is a need for public parking in the vicinityin which the property is located. The proplrty i; currently s.r.ri.,gas a temporary parking lot, with an existing structure on theproperty. rn order to continue to use the property as publicparking, the structure would need to be ."*Lu"i, aid permanentimprovements made. Additionally, staff questions wheiher the sizeof the property justifies the expenditure. 2.Alternative 2: Sale of the property wouldbe used to acquire property for parking inlocation, but would not necessarily rejolvethe immediate area. generate cash whicha more appropriatethe parking problem cou Id 1n FISCAL IMPAET: SaIe of the property would generateapproximately $400r000. To retainpermanent parking lot woutd require $60r000, for 25 spaces. RECOMMENDATION: revenue in the amount ofthe property and improve it as aan expenditure of approximately Adopt resolution declaringother public purposes. ATTACHMENTS: property unnecessary for public parking or Draft Resolution C- 7-?: April 19, 1985 Paul Lanspery Ci ty Ha1 1 990 Palm Street San Luis Obispo, CA 93401 RE: Marsh and Broad Streets Property (Wayne's Tire) Dear Mr. Lanspery, As per the tenms of our option, MF. Rossi and myself are interested in re purchasing the above referenced property. We feel the price can best be determined through an appraisal by an MAI designated appraisen, using the average of the market, income and replacement cost approaches. Please let Mr. Rossi or myself know how you would like us to proceed. Si ncerel y , John Rossetti JR: jb 805.544.3900 I3O3 GARDEN . SUITE 28 S'r,N LUIS OBISPO . CALIFORNIA . 93401 COMMERCIAL REAI ESTATE e-7-q