Speaker 0: Thank you. We're going back up to 1841.
Speaker 1: Report from Economic Development Recommendation to authorize city manager to execute all necessary documents with City Ventures to amend the Purchase and sale agreement to allow for a reduction in sales price and amount up to 289,000 District eight.
Speaker 0: Honorable mayors and members of the city council. I'm gonna introduce Mary Torres to give us a short staff report on this item. Thank you.
Speaker 1: Thank you, Mayor. Members of the City Council. Uh, this project, the item before you is for the project at 4800 Long Beach Boulevard. The development at the site will be 18 three story townhomes that will be for sale. This project was first approved by the City Council on June 21st, 2016. Uh, we came back to City Council in June of 2021 to reduce the price to $1,109,056 due to dedication of approximately 5000 square feet of property that was due to dedication for City Street. In preparation for construction of the project soil. A testing was done and elevated levels of lead were found to be in the soil and need to be remediate in order for residential construction to occur. The estimated cost for the removal was approximately $452,000. The city and the developer have agreed to a cost sharing with the city, contributing up to 64% or $289,000 and the buyer up to 3030 6% or $136,000. Additionally, a buyer will also conduct all those remediation activities and will cover any costs that exceed the city's share of $289,000. This reduces the proposed sale price to no less than $820,000, and that's only if the full share of $289,000 is realized. So far the project status. There are some milestones to be noted. The project has been fully entitled. The project is in building project and nearing completion for the construction permit. The soil remediation will be conducted once the amendment to the agreement is approved. And once remediation is completed and construction permits are issued, construction will be there for the item before use to authorize the city manager to execute any and all necessary documents with the developer to amend the purchase and sale agreement to allow for the reduction in sale price. Her purchase price in amount, no less than $820,000 to cover the remediation costs for the project. This concludes my staff report. I'm available for any questions.
Speaker 0: Thank you. There's a motion and a second. I believe that public comment can be. Of course, as we can see, the quote unquote, housing advocates and quote unquote housing providers have left the room ample opportunity to speak about housing, but no one's here. This is a describe, I have to say. They cut this land for a steal and now they want the city to pay to clean up the land that they got to steal. This land has been empty for quite some time. I'm sure the History Council can tell you it's right over there by Johnny Rebs and everything, and that is above. And you know, my issue with this is, for one, it's a Delaware limited liability company based in San Francisco, in Irvine. So we can clearly see that they don't like to pay their taxes and they feel very comfortable with leaning on municipalities to pay the difference for things. But when I went on their page, you know, doing during this housing crisis we're dealing with, I looked up and they said, City Ventures is a rapidly growing California homebuilder focused on repositioning underutilized real estate into residential housing in supply constrained coastal urban infill areas as well as high demand suburban locations. So we have 18 three story townhomes being built. None of them have any inclination of affordable housing connected to them. They're all going to be market rate. Okay. I have no problem with that. That's just the reality of the market and you get what you get. My issue is why does the city have to pay the difference for and soil remediation? They should pay it. They're going to make, you know, square for 5 million on top of the project. I don't know why we have to cover, you know, like the similar TLT thing, like these these developers, they they get opportunities. Okay, you have the money, you can have the opportunity. But why do we have the taxpayers have to cover the difference for them? Thank you. That concludes public comment for this item. Please cast your vote through a motion in a second with enough for me.
Speaker 1: Motion is carried.
Recommendation to authorize City Manager, or designee, to execute any and all necessary documents with City Ventures, LLC, a Delaware limited liability company, or affiliate (Buyer), to amend the Purchase and Sale Agreement to allow for a reduction in sales price, in an amount up to $289,000, for a revised total purchase in an amount no less than $820,056, for remediation costs for the property at 4800 Long Beach Boulevard, Assessor Parcel Numbers 7133-010-900, -901, -902, -903, -904.  (District 8)