G\T Y OF
PISMO BEACH CITY COUNCIL STAFF REPORT
A�syo sEP Agenda Item #12.A
Meeting Date: March 18, 2025
TITLE:
Confirmation of Acquisition of Real Property at 350 Pismo Avenue and Appropriation of Related Budget Adjustments in Fiscal Year 2025 RECOMMENDATION:
Adopt a Resolution confirming the acquisition of real property located at 350 Pismo Avenue and appropriating related budget adjustments in Fiscal Year 2025.
DISCUSSION:
The City has been leasing the property at 350 Pismo Avenue, APN 005-076-027, since 2007 as a public parking lot. During the intervening years, the lease has been renewed on multiple occasions, most recently in August 2023 for a five-year period. The property was then subsequently listed for sale later that year at an asking price of $5 million.
On November 7, 2024, the City Council met in Closed Session to discuss the price and terms of the subject property at 350 Pismo Avenue. The City Council provided the City Manager direction and negotiation authority on a potential purchase from the Wolosz Family Trust. Ultimately, the City and the property owner agreed to a purchase price of $3,250,000, with each party paying its share of closing costs and broker fees. The final acquisition cost was $3,301,590.21, including taxes and fees. Funding for the purchase comes from the Parking Enterprise Fund net position (available fund balance).
This acquisition provides a significant value to the City for its parking inventory. Without this purchase, the property would be subject to continual renegotiation or private development in the future, without the ability to replace the number of parking spaces nor accounting for the proximately to the downtown and beach areas.
Conclusion and Recommendation
Staff recommends the City Council adopt a resolution (Attachment 1) confirming the acquisition of real property at 350 Pismo Avenue and appropriating related budget adjustments in Fiscal Year (FY) 2025.
FISCAL IMPACT:
The fiscal impact of adopting the Resolution to purchase 350 Pismo Avenue will result in an additional cost of$3,301,591.21 from the Parking Enterprise Fund. There are sufficient funds available in the Parking Enterprise Fund's net position (available fund balance) to support this purchase. After including the cost to purchase this property, the remaining available ending fund balance projected at the end of FY 2025 is $1.55 million.
Staff recommends that the Council appropriate $3,301,590.21 in the Parking Enterprise Fund Capital Outlay-Land account, supported by Parking Enterprise Fund's net position (available fund balance), in FY 2025.
Council Agenda 3-18-2025 12.A-1
ATTACHMENTS:
1. Resolution
Submitted by: Nadia Feeser, Administrative Services Director City Manager Approval:
Council Agenda 3-18-2025 12.A-2
Attachment 1
RESOLUTION NO. R-2025-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA CONFIRMING THE ACQUISITION OF REAL PROPERTY LOCATED AT 350 PISMO AVENUE AND APPROPRIATING RELATED BUDGET
ADJUSTMENTS IN FISCAL YEAR 2025
WHEREAS, the City has leased the property at 350 Pismo Avenue, Pismo Beach, California, APN 005-076-027 ("Property") since 2007 for use as a public parking lot; over the years, the lease has been renewed multiple times, most recently in August 2023 for a five-year term; and
WHEREAS, the Property was subsequently listed for sale later in 2023 with an initial asking price of$5.0 million; and
WHEREAS, on November 7, 2024, the City Council met in Closed Session to discuss the potential purchase of the Property, including price and terms; the City Council authorized the City Manager to negotiate a potential purchase; and WHEREAS, negotiations with the property owner resulted in an agreed purchase price of $3,250,000, with both parties responsible for their respective closing costs and broker fees; and
WHEREAS, the final acquisition cost, including taxes and fees, totaled $3,301,590.21 and is funded from the Parking Enterprise Fund net position (available fund balance); and WHEREAS, acquiring the Property represents a strategic investment in the City's parking infrastructure; without this purchase, the site would remain subject to future lease renegotiations or potential private development, jeopardizing the long-term availability of valuable public parking spaces in close proximity to the downtown and beach areas.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby confirms the acquisition of real property at 350 Pismo Avenue, Pismo Beach, California, APN 005-076-027, and appropriates $3,301,591.21 in the Parking Enterprise Fund capital outlay-land account, supported by the Parking Enterprise Fund's net position (available fund balance), in Fiscal Year 2025.
UPON MOTION OF Council Member seconded by Council Member the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 18t" day of March 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Council Agenda 3-18-2025 12.A-3
Attachment 1
RECUSED:
Approved: Attest:
Ed Waage, Mayor Erica Inderlied, City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand on
Erica Inderlied, City Clerk
Council Agenda 3-18-2025 12.A-4