HomeMy WebLinkAbout0607.000'.-.,
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December 13, 1990
TIlE HOHORAllLE CITY COONer L
palo Alto, California
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PUIlCP" or PAGE JQLLIABB PROPERTY nox DB COO1rITl 01' BunA cr !I!
Members of the Council t
hpor\ ill ,ri.f:
This report recommends that Council approve the purchase of a .85-
acre vacant parcel of excess land, at the southwest corne~ of Page
Mill Road and. Ash Street from the county of Santa Clara for
$1,598.000 and commit the use of $600,000 of community Development
Block Grant {COBG} funds for the initial down payment, subject to
Housing and Urban Development's (HUD's) approval o~ an environ
mental analysis.
In April 1988, Council adopted a resolution notifying the county of
santa Clara of the Clty r s intent to purchase county-owned property
at the southwest corner of Page Mill Road and Ash Street
(CMR:252:8J. council action was in response to the county's Notice
of Intent to Sell the property for low-income resictential purposes.
Before the transaction could be co~pleted, the County temporarily
withdrew the pr~rty from the sale to analyze its possible use as
a COunty facility. Earlier this year, santa Clara County notified
Palo Alto that the property was aqaln available. City and county
ataff negotiated the purchase price of $1.,588,00-0,. with a down
payment of $600,000,. and the balance of $988,000 due in August of
1992. No interest would be charqed on the balance~ Because the
property bas an existinq hazardous waste water problem, the sale
price vas negotiated, rather than acceptinq an updated 1990
appraised value of $1,650,000
CIIR:607:0
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prior to presentlnq this report to Council, staft authorized a
level one hazar-dous vaste ana.lysis. The report stated that the
property was clean except for indications that at some point in
time, the water table bad reached a level that was 8 feet below the
8urface. At first, City staff was concerned because the property
lies within an identified hazardous waste water plume from the
Stanford Research Pa.rk ~ It is very like.ly that any developme_nt of
this property would require underground parkinq; and it the need
arose to pump qround water from underqround surface, the develop
aent would be responsible for cUspasal of the hazardous waste.
water. Staff vas then informed there is a relatively easy and
inexpensive way of sealing the underground parking to keep ground
water from entering. county staff estimated the cost to properly
seal the parking facility would be between $105,000 and $140,000.
Tbe. county and the City also estimated that the city would be
savinq approximately $240,000 by using the 1988 appraisal of
$1,588,000, coupled with a no-interest loan for the balance due.
staff proposes to use $600,000 of CDBG funds, to make the initial
down payment for the property, and attempt to obtain the balance of
$988,000 frOD additional COSG funds. If staff is unable to obtain
CDBG funding, a request to Council will be made to tund from the
Houslnq In-Lieu Ind:ustrial/commercial account. Staff has not
determined what type of low-income housing would. best suit this
property to meet the needs of the communi ty ~ Therefore, a
recommend&tion cannot be ~ade at this time to use Housing In-Lieu
.Industrial/Commercial runds. Such: tunds car! be used solely to
buIld housing for low-income fa.ilies and Would not allow the City
the option of providing other torms of low-income hau5inq~
IDvironaep.tal Revie.
Acquisition of the site does not constitute a project under CEQ~;
however,. the use of CDBG funds would require an environmental
analysis which will take approximately 90 days to complete. Funds
cannot be committed until the analysis is complete.
'eduction 18 co.t Of Lan'
Jrfotiiithstanding t..lte comment made above, staff is 'Working ~ith
county officials to obtain the prop~rty at a lower cost. Because
of the long: 9iJ-day lead time required by the use of COBG funds,
statf rec"ii:iitenOs that CO\i;:i)~il approve the recommendation below. If
the property can be purchased from the County at a lower cost,
council will be notified and appropriate changes made to the £inal
purchase figures.
CIIR: 607: 0
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staff recoaaenda that council::
1) Approve the purchase of the county of Santa Clara land at the
southwest corner of Pa98 Mill Road and Ash Stre.e.t for
$1,588,,000;
2) Direct staft to prepare an environmental analysis and commit
the-use of CDBG funds to purchase the subject property if
environaental analysis is supportive; and
3j Authoriz.e the Mayor to execute any documents necessary to
complete this transaction.
Respectfully submitted,
(fItI~ $,1&&
lIILIJAK 11. F
Real Property Manager
WILL
City
CC~ Ernie Filgone, Santa Clara Transportation Agency
Palo Alto Housinq Corporation
Palo Alto Planning Commission
Related Staff Reports: CKR:252:8
CJ!R:607:0
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