Purchase and Sale Agreement - 125 Elm Avenue
City Council Meeting – October 11, 2022
125 Elm Avenue
2 • Owner: Southern California Edison Company.
• Use: Former SCE Long Beach Service Center.
• Size: 286,334-square-foot five-story building
with rooftop deck parking. Office space
available is approximately 91,411 square feet.
• Status: Currently vacant.
• Acquisition Process: Owner listed property
for sale in March 2022, notified City in early
September of selection to purchase property.
Background
Proposed Uses
3 • Acquisition would provide solution office space
needs as well as replacement of City facilities that
require significant upgrades.
• Facility Needs Addressed:
Permanent location for Long Beach Police
Department Crime Lab on City-owned property.
Administrative Offices for Energy Resources
reducing additional rebuild at Spring Street
location.
Provide modern, more efficiently planned Long
Beach Senior Center.
• Tenant improvements will be required for
proposed services and programs.
• Anticipated construction timeline is 18-24 months.
Fiscal Impact
4 • Purchase price: $21,000,000
• Transaction costs: $150,000
• Tenant Improvements: $23,315,000
• Total Project Cost: $44,465,000
Operations and Fund Group Allocated
Space
Purchase Price Refurbishment
Costs
Total
Parks, Recreation & Marine,
Police Departments, and Other
Administrative Functions
General Fund Group
71% 14,980,571 17,110,000 32,090,571
Energy Resources Department
Gas Fund Group 29% 6,019,429 6,205,000 12,224,429
Total 100% $21,000,000 $23,315,000 $44,315,000
Transaction Costs $150,000 $44,465,000
Sources
5 Source Description Amount
General Fund Group Measure A 5-year plan, Police Department Mid-year Savings $12,630,000 Gas Fund Group Budgetary Funds Available $12,224,429
Future Bond Sale -
General Fund Group
If authorized by City Council $19,610,571
Total Proposed Sources $44,465,000
Recommendations
6 • Authorize the City Manager, or designee, to execute any and all documents necessary, including a Purchase and Sale Agreement and Escrow Instructions with Southern California Edison Company for the purchase of 125 Elm Avenue, in an amount not to exceed $21,000,000;
• Increase appropriations in the General Fund Group in the Economic Development Department by $21,000,000, offset by various funding sources; • Increase appropriations in the Gas Fund Group in the Energy Resources Department by $12,224,429 offset by budgetary funds available; and, • Accept the Categorical Exemption CE-22-157.
Thank you.