1 STAFF REPORT
DATE: August 8, 2023
TO: Justin Hess, City Manager
FROM: Patrick Prescott, Community Development Department Director VIA: Simone McFarland, Asst. Director Community Development
SUBJECT: Amend the Budget to Appropriate $520,000 for the Offer to Purchase 904 – 906 N. Lake Street, and Related Inspections
RECOMMENDATION
Amend the Fiscal Year (FY) 2023-24 Budget by appropriating $520,000 from the Water Reclamation and Sewer Fund for the purpose of issuing a refundable good faith deposit and funding various inspections in furtherance of negotiations for the potential purchase of 904-906 N. Lake Street.
BACKGROUND
The property located at 904 -906 N. Lake (Property) was listed for sale at a price of $8,699,000. The P roperty is located adjacent to the Burbank Water Reclamation Plant (BWRP) and is currently a warehouse that most recently was used to store steel blanks for making vehicle wheels.
The details are listed below:
• List Price: $8,699,000 ($400/sq ft)
• Built: 1969
• 21,735 square feet
• 50 parking spaces
• 2 Loading docks, 12x14
• Power: 400A/600A, 240V, 3 phase, 3 wire
• Zoning: M1 Limited Industrial
• Owner: Gento 2 LLC
• Last Purchased: 5/12/21 $6,425,000
COMMUNITY
DEVELOPMENT
2 DISCUSSION
Staff believes the Property could serve a future public use, due to its proximity to the BWRP. As part of the negotiations for a potential purchase and sale agreement, a budget amendment is necessary to finance a refundable deposit during escrow, as well as the necessary inspections. If negotiations are successful, staff will return to Council with a purchase agreement for consideration during open session that will include the final price and terms of the purchase.
ENVIRONMENTAL REVIEW
This activity has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and as such, is not a “project” subject to the requirements of the California Environmental Quality Act (CEQA) 14 Cal. Code Regs. § 15378.
FISCAL IMPACT
Staff recommends that Council Amend the Fiscal Year (FY) 2023- 24 Budget appropriating account number 494.ND000.33000.1004 (Water Reclamation and Sewer Fund, Non- Departmental, Retained Earnings, Hyperion Plant) to account number 494.PW23A.15001.0000 (Water Reclamation and Sewer Fund, Sewer Engineering and Design, Land-Clearing) for the escrow deposit, and to appropriate $120,000 from account number 494.ND000.33000.1004 (Water Reclamation and Sewer Fund, Non- Departmental, Retained Earnings, Hyperion Plant) to account number 494.PW23A.15001.0000 (Water Reclamation and Sewer Fund, Sewer Engineering and Design, Land-Clearing) for inspections.
CONCLUSION
The sale of the Property presents the City with the unique opportunity to enter negotiations to potentially acquire the Property for future public use. Amending the budget will allow staff to complete necessary steps prior to negotiating a final purchase and sale agreement. If negotiations are successful, a purchase and sale agreement with total price and terms of payment will be brought back to Council for final consideration.
ATTACHMENT
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