City Council Agenda Report
April 1, 2025
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Alex Hamilton, Interim Director of Community Development SUBJECT: RESOLUTION NO. 25-13 - APPROVING THE FIRST AMENDMENT TO EXCHANGE AGREEMENT AND JOINT ESCROW INSTRUCTIONS FOR 12124
FIRESTONE BOULEVARD
Background:
On October 17, 2023 the City adopted Resolution No. 23-61 declaring the City-owned property located at 12124 Firestone Boulevard exempt surplus land pursuant to Government Code Section 54221(F)(1)(C) and approving an Exchange Agreement for the “swapping” of land of then City owned property located at the southwest corner of Firestone Boulevard and Clarkdale Avenue with Firestone Lofts, LP (the Developer) in return for the conveyance of real property located at the southeast corner of Firestone Boulevard and San Antonio Drive - San Antonio Property (see Attachment No. 3 for depiction of the lands exchanged).
The exchange of the City Property and San Antonio Property was deemed necessary to provide for improvements in the general area to accommodate parking and access. The exchange was also necessary to facilitate the development of the City Property into a 76-unit affordable workforce housing and market rate project, which would eliminate the current blighted and underutilized property, revitalize the Front Street commercial area, and support the City’s ongoing efforts to increase the supply of affordable and market rate housing.
The table below outlines the status of the Exchange Agreement obligations:
City & Firestone Lofts, LP. Open escrow for property
exchange pursuant to approved
escrow instructions.
Escrow opened & $500,000 by
Firestone Lofts, LP deposited into
account per Exchange Agreement
terms for work required to facilitate
parking improvements.
City Council April 1, 2025
Resolution No. 25-13 - First Amendment to Exchange
Agreement
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Firestone Lofts, LP. Design & entitle a 76-unit market
rate & affordable project located
on the former City property
12124 Firestone Boulevard.
Project design & entitlement
completed.
Firestone Lofts, LP. Demolish the bank building @
the southeast corner of San
Antonio & Firestone & construct
surface parking lot.
Pending, subject to City Council
approval of Exchange Agreement
Amendment No. 1.
TUVF, LLC-Lofts LP
Retail Partner (TUVF)
Acquisition & financing of APN’s
8056-015-004 & 8056-015-006
known as 12126 & 12142
Firestone Boulevard.
Acquisition & assignment completed.
Tenant improvements for “Bank
Building-Norwalk Records” at
northwest corner of Front and
Clarkdale to be completed at
Developers expense.
Proposed Amendment No. 1 to the Exchange Agreement terms:
This proposed amendment would assign the City the responsibility to demolish the bank building at the southeast corner of San Antonio and Firestone Boulevard. It would also allow for the release of the $500,000 in an escrow account to the Developer and TUVF in consideration of completion of shell only tenant improvements. To date the developer is significantly complete with these improvements and the valuation and associated costs with developing this landmark building is anticipated to be in excess of $500,000 and the transfer of funding is warranted. This building and its subsequent occupancy is expected to be an integral activity for the reactivation and revitalization of Front Street. Conversely, the City has sufficient funding to undertake the remediation and demolition of the bank building.
Environmental:
The First Amendment to the Exchange Agreement is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3) – Common Sense Exemption in that it can be seen with certainty that there is no possibility that the approval of the First Amendment to the Exchange Agreement may have a significant effect on the environment None of the exceptions to the Categorical Exemptions under CEQA Guidelines Section 15300.2 apply.
Fiscal Impact:
None at this time. If the amendment is approved, staff will return with bid documents for the abatement, demolition, and subsequent parking lot improvements of the property.
Citizens Advised:
N/A
City Council April 1, 2025
Resolution No. 25-13 - First Amendment to Exchange
Agreement
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Strategic Plan 2023 Implementation:
The recommended action will further the City’s Strategic Plan 2021 Goal 3: Create dynamic neighborhoods that incorporate mobility, connectivity, and sustainability.
Recommended Action:
Staff recommends City Council:
a. adopt Resolution No. 25-13, A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NORWALK APPROVING THE FIRST AMENDMENT TO THE EXCHANGE
AGREEMENT AND JOINT ESCROW INSTRUCTIONS BY AND BETWEEN THE CITY OF NORWALK AND FIRESTONE LOFTS, LP; and
b. finding this action to be exempt under California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) and none of the exceptions to the Categorical Exceptions under CEQA Guidelines Section 15300.2 apply; and c. approving the First Amendment to the Exchange Agreement by and between the City of Norwalk and Firestone Lofts, LP; and authorizing the City Manager to prepare, execute, or record (cause to be recorded) the First Amendment and any other ancillary documents, in a form approved by the City Attorney, that are reasonably necessary to effectuate the intent of the Resolution.
Attachments:
1. Resolution No. 25-13
2. Draft First Amendment to the Exchange Agreement
3. Depiction of Lands Exchanged