1 City Council Meeting: December 17, 2024 Santa Monica, California RESOLUTION NO. ________ (CCS)
(City Council Series)
RESOLUTION OF THE CITY OF SANTA MONICA FINDING THAT THE ACQUISITION OF REAL PROPERTY LOCATED AT 1402 WILSHIRE BOULEVARD, SANTA MONICA, CALIFORNIA, (APN 4282-003-020) SERVES A PUBLIC PURPOSE;
FINDING THAT THE PROPERTY INTENDED TO BE LEASED IMMEDIATELY THEREAFTER IS EXEMPT SURPLUS LAND UNDER THE SURPLUS LAND ACT;
DELEGATING AUTHORITY TO THE CITY MANAGER OR DESIGNEE TO
NEGOTIATE, ENTER INTO, AND SIGN ALL AGREEMENTS AND DOCUMENTS
NECESSARY OR REQUIRED TO ACQUIRE AND CONSUMMATE THE PURCHASE
OF THE PROPERTY, INCLUDING BUT NOT LIMITED TO THE CERTIFICATE OF
ACCEPTANCE, AND TO TAKE ALL OTHER NECESSARY ACTIONS TO COMPLETE
THE ACQUISITION
RECITALS
WHEREAS, the City of Santa Monica (“City”) desires to purchase the real property located at 1402 Wilshire Boulevard, Santa Monica, California, APN 4282-003-020, which is more particularly described in the attached Exhibit A (“Property”), from Hollywood Community Housing Corporation, a California nonprofit public benefit corporation (“Seller”) to serve a public purpose;
WHEREAS, for good and valuable consideration in an amount not to exceed $6,000,000, which amount does not exceed the appraised value of the Property, the City desires to acquire the Property for public purpose;
WHEREAS, a proposed Disposition and Development Agreement (“Purchase Agreement”) by and between the parties, once drafted and executed, will memorialize the intent of the parties to transfer the Property to the City pursuant to its terms; WHEREAS, the City Council did meet to consider the consummation of the proposed purchase on December 17, 2024;
2 WHEREAS, the City is a Charter City, authorized by its charter to acquire real property for any public purpose;
WHEREAS, the City desires to accept the Property for use by the City for public purposes and desires to pay Seller a sum not to exceed $6,000,000 for the transfer of this Property to the City;
WHEREAS, Government Code Section 27281 requires the City to accept the dedication of the Property by adopting a resolution of acceptance or delegating the authority to the City Manager, or designee, to sign on the City’s behalf a Certificate of Acceptance substantially in the form presented in Government Code Section 27281, a copy of which is attached and incorporated by this reference herein as Exhibit B; WHEREAS, immediately after the purchase of the Property by the City, the parties will execute a Ground Lease (“Lease Agreement”) pursuant to which the Seller will develop an affordable housing project on the Property; WHEREAS, the development will consist of eighty-two (82) units, with at least 40 percent of the housing units affordable to households whose incomes are equal to or less than 75 percent of the maximum income of lower income households and at least half of these affordable to very low income households plus two (2) resident manager units without income restrictions;
WHEREAS, the Lease Agreement satisfies the criteria set forth in Government Code Section 37364 because (1) at least 80 percent of the Property will be used for the development of housing, (2) at least 40 percent of the housing units will be affordable to households whose incomes are equal to or less than 75 percent of the maximum income of lower income households and at least half of these will be affordable to very low income 3 households, and (3) the parties will execute a Regulatory Agreement guaranteeing that the Seller and its successors in interest will maintain the affordability restrictions described herein for at least 30 years; and,
WHEREAS, land transferred for the development of affordable housing pursuant to Government Code Section 37364 qualifies as “Exempt Surplus Land” under Section 54221(f)(1)(A).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Monica, State of California, that the purchase of the Property for the amount not to exceed $6,000,000 from the Seller, in accordance with the terms of the Purchase Agreement to be drafted and executed by the parties, serves a public purpose and is therefore approved and authorized;
BE IT FURTHER RESOLVED, that the Property is hereby declared “exempt surplus land” under Government Code Section 54221(f)(1)(A) as the land will be transferred to provide affordable housing pursuant to Section 37364; and, BE IT FURTHER RESOLVED, that the City Manager, or his designee, is hereby delegated the authority to negotiate, amend and execute all documents and agreements necessary to consummate the purchase, including but not limited to the Certificate of Acceptance substantially in the form presented in California Government Code Section 27281, following approval as to form and legality by City Counsel and approval by City Manager, and to take all other necessary actions to complete the acquisition of the property.
APPROVED AS TO FORM:
4 _____________________________
Douglas Sloan, City Attorney
5 EXHIBIT A
LEGAL DESCRIPTION
LOTS "X" AND "W" IN BLOCK 110 OF SANTA MONICA, IN THE CITY OF SANTA
MONICA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 3, PAGES 80 AND 81 AND IN BOOK 39, PAGE 45 ET SEQ., OF
MISCELLANEOUS RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
APN: 4282-003-020
6 EXHIBIT B
CERTIFICATE OF ACCEPTANCE
(Government Code Section 27281)
Certificate of Acceptance
by
City of Santa Monica
THIS IS TO CERTIFY that the interest in real property conveyed by the Grant Deed dated ____________, _____ from ____________________, to the City of Santa Monica, a political subdivision of the State of California, is hereby accepted by the undersigned officer or agent on behalf of the City of Santa Monica pursuant to authority conferred by Resolution No. ____________ of the Santa Monica City Council adopted on ________________, and the grantee consents to recordation thereof by its duly authorized officer.
In witness whereof, I have hereunto set my hand on _______________ day of _______________.
By: ________________________
Name: DAVID WHITE
Title: CITY MANAGER
APPROVED AS TO FORM AND LEGALITY
_______________________________
Name: DOUGLAS SLOAN
Title: CITY ATTORNEY