ITEM #2
City Council
MATA CLARA CANTE
Item 2 - Real Estate and
RNI. Morse Mansion Study
Session
1852
THE MISSION CIT
RTC 22-1155
November 1, 2022
* SALON VALLEY
POWER
CITY OF SANTA CLARA
Real Estate Update
• City does not have a Real Estate Manager
• Position created in 2021 to lead Real Estate, staff member left May 2022 Position not currently being recruited
- Work being absorbed as collateral duty by other staff • Council has expressed interest in a more "strategic approach" to the management of the City's real estate
• Working on two priorities
1. 900 Lafayette and 1000 Lafayette Properties
- Leases and management
- Future redevelopment
2. Morse Mansion
Other real estate items continue to move forward (Parks, Related)
POST MEETING MATERIAL
1 * SILICON
VALLEY
POWER.
CITY OF SANTA CLARA
900 and 1000 Lafayette
• Commerce and Peddlers Plaza
• City took over buildings in late 2021 and 2022
• 59 total available spaces for lease (95,000 SF)
• Council Eugene Burger Management Corporation for
Property Management Services 1000
• Significant work effort from the Housing Division,
Purchasing Division, and City Attorneys Office
• Last 4 months - completed 31 of 35 leases of
occupied spaces (2-year terms) 900
• About 65% of SF is occupied
• Completed approximately 17 Purchase Orders to
allow for daily operations and maintenance
Elevators, lighting, electrical, clean up/dumping,
signage, alarm system, security
SILICON
VALLEY
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CHY OSSANTA CARA
900 and 1000 Lafayette
• About $500,000 in "profit" to General Fund
• Many expenditures required to maintain building
• Significant long term capital investments needed
• Long term plan would be needed if properties
were to be leased/maintained as is
• City is not staffed to be long term landlord
• Downtown Precise Plan
• Actively working on developing the
process/options for City properties
• Working with staff and outside Counsel
• Future Council discussions
• Additional opportunities will be explored
4 SILICON
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CITY OF SANTA CLARA
Morse Mansion
• Purchased in 2016 for $3,875,070
• National Register of Historic Places
• Tenant lease expires June 2024
• Currently leased to sorority with request for lease
extension (Approx. $17,000 a month
• Property manager and maintenance costs
• Major capital improvements required (foundation
electrical, plumbing, root, etc.,
• Inspection Report 2016
• Preservation Treatment Plan Report 2017
• Currently estimated at $8.0 million plus (needs
update)
Spring 1893
• No current funding source
• Today - Council feedback on possible options
• Robust Community Outreach will be needed
5 SILICON
VALLEY
POWER.
TY OFSANTA CLARA
Morse Mansion
Option 1 - Extend Lease with Sorority
• Community concerns with the use and
discussions of no future extensions
• Extending lease would require additional capital
investment beyond current budgets
• Additional funding sources need to be identified
Option 2 - Sale of the Property
• Would need to go thru the surplus land act
process
Option 3 - Maintain for City Uses
• Important historical property
• City typically prefers to keep property not sell
• Would require significant capital investment
6 SILICON
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CITT OF SANTA CLARA
Option 2 - Sale of The Property
Surplus Land Act
• Historic Designation limits use
• Building would be available to public agencies,
schools, etc, and affordable housing providers
• Don't expect interest - limited use
• Staff research on affordable housing use/needs 86860 68 suggests limited interest
• Won't know for sure until process is complete
Sale on the Open Market
• Would need to hire a Realtor
• If sold the buyer would be able to use the building
for residential or commercial uses
• Could consider a deed restricted sale but it would
limit buyers and value
7 SILICON
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CITY OF SANTA CLARA
Option 3 - City Use
• Met with Public Works, Parks and
Recreation, and Community Development to
discuss options
?
• No use was identified
• Capital funding would be needed (likely
General Fund)
• Historical Designation limits uses
• One creative option exists for staff to explore
if there is Council interest
• SVP Sustainability Learning Center and
Historical Center
4. - SILICON
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CITY OF SANTA CLARA
Sustainability and Historical Center
• Staff expressed interest in the past in developing
an SVP Historic Center and more recently a
Sustainability Learning Center
• Roseville has a Utility Exploration Center
• SMUD Museum of Science and Curiosity
• Morse Mansion could be a great place to
implement a learning/historic center with
components such as:
• Historical nature of the building itself
• Demonstration of building and home electrification
• Learning center rooms solar and battery power
• Sustainable yard and landscape demonstration
• Could this be accomplished in a historic building?
• Consultant study would be needed
9 SILICON
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CITY OF CANTA CLARA
SVP Sustainability and Historical Center
• Allows the historic building to be maintained within City ownership
• Restricted SVP funds (for educational and demonstration purposes) would be used - does not affect rates
• Having a funding source and proposing a creative use
could make grant funding more realistic
• Reimburse General Fund for property value per updated appraisal
• Educational Sustainability and Historic center could be a destination for schools and residents
• Is it feasible? - if there is Council interest staff would need to work with consultants to determine feasibility
and cost
10 SILICON
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CITY OF SANTA CLARA
Discussion
• Option 1 - Extend Lease with Sorority
• Community concerns and funding
• Option 2 - Sale of the Property
• Would need to go thru the surplus land act process first • Option 3 - Maintain for City Uses
• Council thoughts on Sustainability and Historic Center • Other options
11 City Council
Item 2 - Real Estate and
Morse Mansion Study
Session
1852
THE MISSION CITY
RTC 22-1155
November 1, 2022
12 6
11/112022 Iter #2
From: Tahir Naim <[email protected]>
Sent: Tuesday, November 1, 2022 7:04 PM
To: Mayor and Council <[email protected]> Subject: Option 3 for Morse Mansion
Hi,
I heard some of this and I think it would be a lovely place for wedding rental. I wed in the historic house behind the Triton which was nice, but I suspect that if the Morse mansion had been available, we would have booked it instead.
I think a demonstration garden in partnership with Ferry-Morse seeds is worth exploring.
Sounds like we have some time before the lease is up to explore partnership and uses.
Sincerely,
Tahir J. Naim
District 2
POST MEETING MATERIAL