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AGENDA REPORT
DATE: April 9, 2001
TO: - Honorable Mayor and City Council
THRU: John B. Bahorski, City Manager.
FROM: Dan Dorsey, Assistant to the City Manager
SUBJECT: PROPOSED PURCHASE OF LEASEHOLD INTEREST
TO OLD CITY HALL
SUMMARY OF REQUEST:
Council to authorize purchase of the leasehold interest to Old City Hall from California
Historic Properties -80.
BACKGROUND:
The City of Seal Beach entered into a 40 -year agreement in 1984 with California Historic
Properties -80 (CHP) for the latter's lease of the Old City Hall facility, located at 20186
Street. Although CHP currently has several tenants in Old City Hall, the trustee for CHP
has recently expressed an interest in selling the leasehold interest.
Staff has identified the following potential benefits related to the City's re- acquisition of
the leasehold interest to Old City Hall:
I. Re- acquiring Old City Hall could provide the City's PEG Programming Coordinator,
public access producers and Channel 3 with a permanent location for a television
studio and control room as well as offices and storage space.
2. The City is currently sub - leasing three, upstairs offices in order to house photocopy,
blueprint and office equipment. These rent payments by the City would cease
subsequent to re- acquiring Old City Hall.
3. Some of the upstairs offices at Old City Hall are currently vacant. These offices
could be utilized for a variety of public and private uses.
Agenda Item: Al-
FISCAL IMPACT:
Subsequent to lengthy negotiations, California Historic Properties -80 and City of Sea]
Beach agreed on a purchase price of $740,000 for the leasehold interest to Old City Hall.
Funds for the leasehold buy back have not been budgeted. However, this purchase can be
funded from the following sources:
From the Redevelopment Agency: $ 363,000
Undesignated balance * *: $377,00 0
TOTAL: $ 740,000
** The undesignated fund balance is currently $1,812,142 - -which will be reduced by
$377,000 in order to effect this purchase. Subsequent to the purchase of Old City
Hall, the undesignated fund balance will be $1,435,142. Replenishment of this
fund balance will occur when funding is received from Bixby Ranch Company.
RECOMMENDATION:
That Council approve the purchase of the leasehold interest to Old City Hall, authorize
the Mayor to execute the attached Purchase Agreement between California Historic
Properties -80 and City of Seal Beach.
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Dan Whey
Assistant to the City ger
NOTED AND APPROVED:
Jo . ahorski
y Manager