11-B
TO: Honorable Mayor and Members of the City Council
ATTENTION: Ryan Smoot, City Manager
FROM: Jim DellaLonga, Director of Economic Development
SUBJECT: Consideration and possible action to conduct a public hearing to consider adopting a Resolution authorizing the City Manager to amend the FY 2023-24 Operating Budget and execute a Purchase and Sale Agreement, in a form approved by the City Attorney, with Arioto Cali Properties Inc. for the purchase of real property located at 9835 Flower Street (APN 7109-013-036 and 037).
DATE: April 8, 2024
EXECUTIVE SUMMARY
In anticipation of completing the negotiations for the purchase of real property located at 9835 Flower Street, staff posted and published the Public Hearing Notice for April 8, 2024.
Negotiations are ongoing and staff is recommending the City Council continue the public hearing to April 25, 2024.
RECOMMENDATION TO CITY COUNCIL
1) Continue the public hearing to April 25, 2024; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
The City anticipates paying $5,100,000 to Arioto Cali Properties Inc. to acquire the Property plus $10,000 to cover estimated escrow fees and title insurance costs.
A budget amendment to the 2023-24 Operating Budget is needed to allocate $5,110,000 in the Public Projects Fund – Account No. 012-47212-9000 for the purchase of the Property. The following sources of funds are available: $1.8 million in cash reserve set-aside for property acquisition, $3.2 million from the sale and liquidation of the Municipal Water System, and $110,000 in unencumbered fund balance.
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Staff Report – Public Hearing: 9853 Flower Street Acquisition April 8, 2024
PUBLIC NOTICE
On March 22, 2024, a Public Hearing Notice was posted at City Hall, Brakensiek Library, Bellflower Substation, Thompson Park, and Simms Park; also on March 22 , 2024, a Public Hearing Notice was published in the Los Cerritos Community News newspaper. In addition, it was made available on our website.
DISCUSSION
Over the past 30 days, staff has been working with the broker of the property located at 9835 Flower Street for potential acquisition by the City. In anticipation of completing the negotiations, staff posted and published the required public hearing notice for an April 8, 2024 public hearing. Due to ongoing negotiations, staff recommends that the City Council continue the public hearing to a Special Meeting at 9:00 am on April 25, 2024.
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