HomeMy WebLinkAbout07/15/1997, C-14 - PURCHASE OF FOUNDATION FOR PERFORMING ARTS CENTER (FPAC) PROPERTY FOR FUTURE BIKE PATH council Nleere Dao7�S_f
acEnaa 12Epont LLemNembn � /�
C ITY O F SAN LU IS O B I S P O
FROM: Michael D. McCluskey,Director of Public Works
SUBJECT: PURCHASE OF FOUNDATION FOR THE PERFORMING
ARTS CENTER(FPAC)PROPERTY FOR FUTURE BIKE PATH
CAO RECOMMENDATION
0 Authorize the purchase of the FPAC property, Assessor's Parcel No. 004-950-009, located
between Lawrence Drive and Francis Avenue, for the sum of$56,541.
■ Appropriate $65,000 from the Transportation Impact Fee Fund for property purchase and
miscellaneous expenses.
■ Authorize the CAO to sign purchase documents and the deed upon successful conclusion of
property investigation and closing of escrow.
DISCUSSION
. The Foundation for the Performing Arts Center owns a piece of property that it wishes to sell and
use the proceeds for support of the Performing Arts Center. The property is located as shown on
Exhibit A and is 0.94 acres in size and stretches between Lawrence Drive and Francis Avenue. The
Foundation offered the piece of property to the City for purchase. The CAO and the Public Works
Director reviewed the piece of property and any potential uses it may have to the City. The City's
adopted Bicycle Transportation Plan calls for an eventual construction of bicycle paths along both
sides of the railroad tracks between Orcutt Avenue and Marsh Street. This piece of property would
facilitate a bicycle path on the southwesterly side of the railroad tracks in this area, and therefore
would be in compliance with the City's adopted Bicycle Transportation Plan.
The Foundation was pursuing sale of the property at an asking price of$155,000. They were not
able to receive any bids for the property at this price. Based upon comparable sales that the City
participated in directly across the railroad tracks when it purchased former Southern Pacific
Railroad property for$1.25 a square foot, that same number was discussed with the Foundation for
the Performing Arts Center. Because the purchase of the Souther Pacific Railroad property was
made two years ago, staff also added in a CPI index of 5%per year. Therefore, an additional 12.5
cents per square foot was discussed with the foundation, making a total per square foot of$1.375.
Based on the size of the property at 0.944 acres, the potential purchase price would be $56,540.88,
or$56,541.00.
Because this property was old Pacific Coast Railroad property, it has the potential to be
contaminated, and as such, prior to any final purchase agreement being negotiated, the City must
make itself sure that any contamination is known and liability for that clean-up is not responsibility
of the City. Therefore, additional research must be done and reports generated prior to actual close
of escrow.
Council Agenda Report-Purchase of FPAC Property `
Page 2
The Foundation has asked the City to assume all closing costs so as to maximize its net proceeds in
order to provide the greatest amount of funding available to the Performing Arts Center. This
request was found agreeable to the CAO.
Because the property does have the potential for achieving a City goal, as well as benefiting the
Performing Arts Center, staff is recommending the purchase of the property at this time. However,
prior to actual purchase, the CAO must be confident that the area is not contaminated by former
railroad uses, and will not be a burden to the City in the future. Assuming all investigations lead to
that conclusion,the City would incur all costs associated with the investigation and all closing costs
associated with the purchase of the property. Staff therefore estimates total overall cost of
acquiring the property to be approximately $65,000, once all environmental studies have been
completed and escrow costs accounted for.
FISCAL IMPACT
No current funding is budgeted for this project. Since this project is eligible for funding from the
transportation impact fee (TIF) fund, this is the recommended funding source. Based on 1997-99
Financial Plan estimates,adequate TIF revenues are projected to fund the estimated$65,000 cost.
ALTERNATIVES
■ Do not purchase the property. The bike path could be pursued at a later date and the most '
likely property owner would be Union Pacific Railroad. However at this time, the Railroad
is not a willing seller and has not declared property on this side of the tracks to be surplus.
■ Use general fund resources. While this purchase could be financed through the General
Fund,this approach is not recommended. At this time,the Director of Finance recommends
limiting supplemental appropriations from the General Fund to only those areas where other
sources are not available.
ATTACHMENTS
■ Vicinity map
■ Assessor's parcel map
I:car/Fpac prop aquis2
��
EXHIBIT A
caU
�t01 fA O j
QOJ
`J�•• U N z
31
W
O "
a
�.
,I o
_ ' '7/9x YO07� .Un'tl1xlYf JO 1Yfd - ,
'3Nd ' �� ra7xooxrrrl
00 Otf go
` a
34
�T • 0 : _ _ 4:• ,, S 1
•00I
:3/1t! ca�xoaxrnl �.� R b'18Q„t�l%� .
LU
r—
L°J s_ Lu ,
p .— N n r q q .I- — i o I .. I t• I I c
03
do
Ol Of
2 3� L ]aayS 'S6-Y00 :dew - b6-C661 NJ 'odacgp ajnl U%S :e7e0 d]xadoxd I(IN'd &-&L
y
CAL POLY
Q HIGHLAND
U �\
9 \
CN
RAMONA cin
0
Q
Q
AHIGH
LAGUNA o
G
LAKE SOUT,Y Z'
\�v SO(mwoo0
Q
oo��P vJ
�P
a� ORCUTT
FJ
Q
m
X
0
�o
O� o
w
h'
N J��
\
TANK FARM
city of
: ' san tut s 0 B I s p 0 . .