HomeMy WebLinkAboutAGENDA REPORT 1994 0615 CC REG ITEM 08I 7a' ig
ITEM
CITY OF MOORPARK
AGENDA REPORT
4 . 1
TO: The Honorable City Council i.C1.0.4: F .! ,
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FROM: Richard Hare, Deputy City Man g j]
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DATE: June 7, 1994 (CC Mtg. 6/15/94)
SUBJECT: Consider Authorizing the Borick Property Acquisition
from the Los Angeles Avenue Area of Contribution.
The acquisition of the Borick property was originally approved by the
City Council on March 16, 1994, with the funding from the General Fund
for an amount not to exceed $750,000. Staff is requesting that the Los
Angeles Area of Contribution Fund be used instead of the General Fund
to purchase the property.
Background
Caltrans had originally proposed to build their new maintenance
facility at the intersection of Highway 23 and Los Angeles Avenue. The
City objected and after several months of attempting to gain Caltrans'
acceptance of alternative sites, the City filed a lawsuit to compel
Caltrans to honor their original agreement to offer the site to the
City as surplus property.
At the crux of this issue has been the need for Caltrans to find a
suitable piece of property with enough storage space and quick access
to route 23 and route 118. The Borick property located on Fitch Avenue
was considered an appropriate location. Caltrans has agreed to the
location if the City will purchase the site for them in exchange for
the original Caltrans property at Highway 23 and Los Angeles Avenue.
The City is finalizing an agreement to sell the property to C.T.
Financial. The agreement will have a seven (7) year term with interest
only payments. Repayment will be required immediatley if certain
development activity occurs.
Originally, staff requested funds for purchasing the property from the
General Fund. This restricts the use of the General Fund, and staff is
requesting that the Los Angeles Avenue Area of Contribution Fund be
used for the financing of the purchase. The Los Angeles Avenue Area of
Contribution Fund has an adequate fund balance (over 6.6 million) to
hold this asset for the seven (7) years of the agreement; and the
purchase of the property is related to the development and improvement
of the Los Angeles Avenue corridor. The property will be transferred
to C.T. Financial at some time after the property exchange with
Caltrans occurs.
Recommendation:
Approve the funding of the Borick property purchase from the Los
Angeles Avenue Area of Contribution Fund in an amount not to exceed
$750, 000.