HomeMy WebLinkAbout05/18/1999, C7 - PURCHASE OF 870 PACIFIC STREET - MISSION MEDICAL PARKING LOT council " fin°�
j acenaa uepoat C7
CITY OF SAN LUIS OBISPO v��
FROM: Michael D.McCluskey,Director of Public Works'
SUBJECT: Purchase of 870 Pacific Street-Mission Medical Parking Lot
CAO RECOMMENDATION
1. Authorize the purchase of property located at the rear of 870 Pacific Street for$243,000.
2. Authorize the CAO to sign purchase documents and the deed.
3. Appropriate$217,000 from the unreserved parking fund balance for the land purchase.
DISCUSSION
Following Council direction, staff has successfully concluded negotiations with Tenet Health
System Partners, Inc. (Mission Medical) for purchase of sufficient area to allow expansion of the
Marsh Street Parking Structure. The expansion project was first discussed by the City Council in
November of 1995 and received formal budgetary authority in January of 1996. With funding
ability, appraisals were undertaken and on April 16, 1996 the City Council, in closed session,
reviewed that data and authorized staff to begin negotiations with Mission Medical.
Staff contracted with Hammer, Jewell and Associates to negotiate with Mission Medical. Ms.
Lillian Jewell conducted all negotiations and kept staff informed of all issues. Via staff
direction, Ms. Jewell responded to all issues and was able to resolve all details necessary to make
the purchase possible without the necessity of eminent domain procedures. The amount of
purchase is within the guidelines approved by the Council.
Marsh Street Garage Project Status
With acquisition of the Tenet property, both major properties needed to fulfill the Council goal
of expansion of the Marsh Street Parking Garage Structure will be acquired. A small segment of
the Ranelletti property still must be acquired and staff, via Ms. Jewell, is making progress there
as well. As of tonight's meeting, the project Architect has presented the concept plans to the
ARC on May 3, 1999 and is scheduling a second ARC meeting as well as an upcoming Planning
Commission meeting. Assuming all stays on track, construction should begin late this fall and
new parking spaces available in time for Christmas shoppers in 2000.
Purchase Agreement-key issues
A key issue with Mission Medical was the disposition of their existing 24 parking spaces. As a
part of the agreement, Mission Medical will purchase two years worth of parking passes for those
24 parking spaces. Within that time frame, they plan on determining their continuing need for
C7-1
Council Agenda Report-Property Purchase-870 Pacific Street
Pa e 2
medical and office space in the downtown and how best to meet those needs. That analysis will
determine their ultimate parking space needs.
PLANNING CONDUSSION ACTION
The Planning Commission reviewed the proposed property acquisition for General Plan
conformity on October 14, 1998. The Commission found the proposed acquisition to be in
conformance with the General Plan.
FISCAL UYVACT
In April of 1996 the Council approved$720,000 from the Parking Fund for appraisals,acquisition
of two properties, design and environmental studies. The $243,000 purchase price is within the
negotiating parameters the Council approved on April 16, 1996. However, additional funding is
needed to complete this purchase because costs for the Post Office land purchase and costs for
environmental review and design work exceeded original expectations. Therefore, an additional
$217,000 is needed from the unreserved parking Fund balance(currently in excess of$2.3 million)
to complete this phase of land acquisition. Additionally,since the current environmental review
and design work is still pending,supplemental funding may be needed to complete that phase of the
project as well.
Expenses
Purchase Cost: $243,000
Escrow/Misc.: 5,000
Total: $248,000
Funds Available: 31,000
Additional Needed: $217,000
Attachments
Vicinity map
Purchase agreement(copy available in the Council reading file)
Laddiv/propertyacq/mission medical/missionmed 5-18-99 cc agenda report
C7-2-2
870 PACIFIC
1 J \ L 1Y
I
t r' ♦ 1
V t+ Y
t ♦
ol
` ` Y
♦ / r
♦ 1 ,
Y /
t
x
t JJ t`
t
.c t
t t
, J•
+ .t Y • J
J t t
\ J+ t
t \
� , r
/ J
♦ r
• � X
rr \
J t
JJ t �
:0 J
\/ J
J r \
r t
♦ t
\ r r
y J ♦ J
CITY OF SAN LUIS OBISPO
GEODATA SERVICES
955 MORRO STREET C7-3
SAN LUIS OBISPO,CA 93401
(805)781-7167 05/06/99 13:29