To: HONORABLE MAYOR AND From: Katy Allen

CITY COUNCIL

Subject: WEST LIBRARY Date: 10-29-03

BRANCH FACILITY

ACQUISITION PROJECT

Council District: 6

RECOMMENDATION

Adoption of a resolution authorizing the Director of Public Works to:

1. Execute an agreement with Malcom H. Martin, Surviving Trustee of the Murray L.

Martin 2002 Living Trust, for the purchase of land and improvements located at 1015 South Bascom Avenue in the amount of $3,472,000, and any additional documents necessary to complete this transaction;

2. Settle the relocation claim for the business operated on the subject property.

CEQA: Exempt, PP03-09-286.

BACKGROUND

The Branch Facilities Master Plan identified the need for a branch library to serve the neighborhoods on the west side of the City. This new branch will reduce the distance traveled to the library for those living nearby, and diminishes the demands placed on the individual libraries in that branch network. Over the past two years a number of potential sites were identified and studies were completed for each. The site at 1015 South Bascom Avenue (APN#282-11-014 & 015) was selected as the preferred site due to its size and location and the lack of plans for future development.

Each potential site was analyzed to determine ability to serve the library service area, accessibility to the public and future development plans. The selected site consists of a 2,432 square foot commercial building known as Murray’s Bar built in 1970 and an adjacent vacant lot. The combined properties total approximately 1.3 acres. The current owners do not have approved plans for the future development of the site. The study determined that the site was well suited to serve the library service area and was large enough to accommodate the 22,000 square foot building and related parking and circulation.

ANALYSIS

On June 14, 2003, City staff presented the owner of the property an offer of $3,124,440. That offer was based upon the full-appraised value of the property that the City wanted to acquire. Negotiations were subsequently terminated by the death of the owner approximately one month later. The ownership of the property is in a trust with the late owner’s brother acting as trustee. A portion of the land to be acquired is improved with Murray’s Bar and is also owned by the trust. In addition the owner was told he was eligible for $20,000 in relocation assistance for the business on site. This is the maximum amount provided by law for an owner who elects to receive a lump-sum payment rather than actually relocate. It was based upon the business’ last two years net income.

A map showing the subject property is attached as Exhibit A. In October 2003, the appraiser reviewed subsequent sales in the area and changed his determination of fair market value to $3,472,000.

PUBLIC OUTREACH

Community input into the location of the new branch libraries was accomplished as part of the Branch Facilities Master Plan process. Fifteen public workshops were held across the City and booths set up in the libraries where over 800 residents contributed their opinions and ideas.

COORDINATION

This memorandum and agreement have been coordinated with the Departments of Planning, Building and Code Enforcement and Library, the City Manager’s Budget Office and the City Attorney’s Office.

COST IMPLICATIONS

The appraised amount of $3,472,000 is specified in the purchase agreement. In addition, there will be escrow and closing costs estimated at $30,000. The property owner is eligible for up to $20,000 in relocation assistance for the existing business. The total cost is anticipated to be approximately $3,522,000.

BUDGET REFERENCE

Fund #	Appn. #	Appn. Name	RC #	Total Appn.	Amt. For Contract	Proposed Budget Page	Last Budget Action (Date, Ord. No.)
472	6877	Land Acquisition	120472	$9,293,659	NA	374	10/14/03, Ord. No. 26997

CEQA

Exempt, PP03-09-286.

KATY ALLEN

Director, Public Works Department