Speaker 1: Thank you. Item 21, please.
Speaker 0: Item 21 is a report from Economic and Property Development and Development Services recommendation to adopt specifications for the purchase and development opportunity at Broadway and the Promenade North, declare the city owned subject property as surplus and authorize city manager to execute all necessary documents with Raintree Evergreen for the sale of the purchased property in the amount of two 8.2 million. District to.
Speaker 1: Staff report please.
Speaker 8: Mayor, council members and other sale and Purchase Agreement Staff Report by Mike Conway, the Economic and Property Development Director.
Speaker 7: Mia Garcia. Members of the City Council. The property located at one 2701 35 East Broadway at the northwest corner of Broadway. And the promenade is a vacant lot containing 45,280 square feet, which is slightly over one acre in size. The property was categorized as future development in the long range property management plan, which properties are disposed through a request for proposals process.
Speaker 8: The city received.
Speaker 7: Four proposals submitted in response to the RFP and the review panel analyzed the four proposals from the perspective of best value for the city. The four proposals are very similar in nature 4 to 6 storey residential development over podium parking with ground floor retail or co-working space. The proposals are all very high quality, high density, architecturally appropriate, generated a good level of jobs and are within a very tight range and total development costs based on the best value to the city. The panel selected Rain Tree, Evergreen LLC Rain Tree offered the highest price for the property, which was 17% higher than the next highest proposal. Rain Tree also offered the greatest retail and flex space square footage. Rain Tree was the second highest total development cost just 5% lower than the next highest proposal. Braintree proposes a five story residential rental project over two story podium parking with 14,000 square feet of retail and flex co-working space. With all else being relatively equal, the combination of highest sale price within 5% of highest development cost and greatest amount of retail flex space persuaded the panel to select rain tree rain trees development timeline is proposed to be 90 days for due diligence, an additional nine months for entitlement and closing 30 days thereafter. Construction is anticipated to take 24 months. Staff request some flexibility in their due diligence and entitlement timeline if unforeseen events occur that delayed the proposed timeline and was stacked with that staff request that City Council adopt specifications number RFP.
Speaker 8: EP 6-003.
Speaker 7: For the purchase and development of 127 135 East Broadway declare the property surplus authorized city manager to execute all documents necessary for the sale of the property to Raintree, Evergreen LLC for $8.2 million and accept categorical exemption. S.E. 16 Dash 128 And that concludes my report.
Speaker 1: Kate, thank you. Voicemail before a voicemail goes up. So, Mr. Cano, I know that the staff reports are really detailed, which is great. When we do when we do in the future, just parcels like this, it'd be nice just to get the maps up on the screen, just for the for the public. I think we've got to show the parcel. We have to show if there's a proposed design that's I think we've got to include that. I know that the staff report has a lot more, but I think just for. Understood. Okay. Thank you.
Speaker 2: Vice-Chair Lowenthal Thank you, Mr. Mayor. I think that's a great suggestion. And also, if there could be be a short summary of what the RFP would seek in development concepts, if that's known at the time too, I think the one pager with the maps would be very helpful for everyone.
Speaker 8: Absolutely.
Speaker 2: So I wanted to thank Mr. Conaway for his presentation and his work on this parcel. It. I know from the report and our conversations that you would certainly seek a architecturally superior design for anything that comes forward here. So I look forward to that. And Mr. Mayor, I'd like to just convey that I support this item.
Speaker 1: Okay. Thank you, Councilwoman Gonzales.
Speaker 4: I'll just say I want to thank Mike Conway for his work and the vice mayor for being very open to to looking at and exploring new development and especially those who expressed interest. I think it's really important as downtown is growing, that we have great development that touches on so many different components, local jobs, density in the area, good parking solutions. And I think all of that is is comprehensive in many of these proposals. So thank you very much, Mike.
Speaker 1: Thank you.
Speaker 2: Yes, I may also add, I know as these surplus properties come before the Council for consideration, whatever use we may have allowed in the interim, whether it's use for fee or use for a dollar a year, what ends up happening is there will be a disappointment. So whatever the use was, if the use was temporary interim parking, there will be disappointment when these properties are released for development. And so I'd like us to all keep that in context that it is always better to have an interim use on city owned property than to have it lay fallow or vacant. That's usually when the mischief comes about and there's blight at times. And so I've always supported interim use of city owned properties. And even when it's not city owned, if it's privately owned, but there's no development plan, it is far better to have an active use, as we can see at the loop on ocean and pine than to have it vacant. So just to keep that in context, we will hear individuals that will come forward and and be concerned about perhaps loss of immediate or adjacent parking to their property that they had access to for the number of years that we had this property vacant. So I want to appreciate staff for really being able to address that and respond to that. I know those are issues that will be addressed or can be addressed through the entitlement process. And we can make recommendations for where alternate parking can be found very, very near to where the projects are currently parked. Thank you.
Speaker 1: Thank you. Councilman Gonzales. No public comment on this item. Casey, no public comment on this item. Members, please go ahead and cast your votes. I'm sorry. Someone coming up for public comment on this or no? Oh, please come forward.
Speaker 8: Hello, I'm Myron. Well, I'm with the Long Beach Gray Panthers. It occurs to me that the city has an affordable housing crisis. And why should I speak about affordable housing when we're talking about a partial sale? Well, one way you can the problem with affordable housing is money. Where are you going to get the money to create the affordable housing? Well, one way you can create affordable housing is to have a portion of whatever the sale prices for city properties be put aside for affordable housing. That is, developers who want to create in their own development help pay for affordable housing within the housing within the city of Long Beach. And so what I would like the council to consider is a proposal like this, similar to one in which Los Angeles is considering, in which when development funds are are used, when developers are coming to the city and creating and proposing to buy property that added to their cost is a whatever you want to call it, a cost for affordable housing. And that's my proposal for the council to consider.
Speaker 1: Thank you, sir. Any other public comment? Okay. CNN members, please go ahead and cast your vote.
Speaker 0: Well, she carries Andrews. I'm sorry. Motion carries.
Speaker 1: Okay. Thank you. And I believe this the parcel we just passed is the Broadway blocks. I mean, that's a you think about the amount of investment the city has made on the Broadway block. This will connect that final piece of that downtown promenade. So that's that's a pretty important parcel. So congratulations to everybody as part of that. Next up is in District eight, the final parcel tonight, 22.
Recommendation to adopt Specifications No. RFP EP16-003 for the purchase and development opportunity at Broadway and The Promenade North (127-135 East Broadway), Assessor Parcel Numbers 7280-020-902, -903, -908, -909, -910, -911, -912, -913 (Subject Property);

Declare the City-owned Subject Property as surplus; 

Authorize City Manager, or designee, to execute any and all necessary documents, including a Purchase and Sale Agreement with Raintree-Evergreen LLC, a Delaware limited liability company, for the sale of the Subject Property in the amount of $8,200,000; and 

Accept Categorical Exemption CE 16-128.  (District 2)