California * & ERIC GARCETT1 MAYOR

Transcription

1 TONY M ROYSTER GENERAL MANAGER AND CTY PURCHASNG AGENT City of Los Angeles Califonia * & DEPARTMENT OF GENERAL SERVCES Room 701 City Hall South 1 11 East Fist Steet Los Angeles, CA (213) FAX NO (213) ERC GARCETT1 MAYOR June 12, 2017 Honoable Councilmembes City of Los Angeles c/o Office of the City Clek City Hall, Room 395 Attention: Patice Lattimoe, Legislative Assistant EXCHANGE OF BUREAU OF SANTATON S (LASAN) PROPERTY LOCATED AT 9940 WEST JEFFERSON BOULEVARD, CULVER CTY, FOR PROPERTY LOCATED AT 6001 WEST JEFFERSON BOULEVARD, CULVER CTY BACKGROUND City Council Motion CF No (Wesson - Blumenfield) adopted by Council on Januay 27, 2016, diected LASAN, with the assistance and coopeation of the City Administative Office (CAO) and the Depatment of Geneal Sevices (GSD) to eview and evaluate the feasibility of: 1) enteing into negotiations with the cuent popety ownes fo the acquisition of popety located at 6001 West Jeffeson Boulevad fo the development of a Mateial Recovey Facility (MRF) and 2) the best manne to dispose of the LASAN City-owned suplus popety located at 9940 West Jeffeson Boulevad, including the feasibility of a land swap fo the popety at 6001 Jeffeson Boulevad n addition, LASAN was instucted to epot on the status of shaed solid waste management between the City of Los Angeles and Culve City Allowing this land swap will open the possibility of shaed waste management between the City of Los Angeles and the City of Culve City and enhance solid waste esouce sevices fo LASAN s Westen Distict cubside collection sevices On Febuay 15, 2017 City Council adopted the Enegy and Envionmental Committee Repot elative to the exchange of the City-owned popety located at 9940 West Jeffeson Boulevad, Culve City (except fo the appoximately 17,000 squae feet aea cuently being used as a sewe odo contol facility ( OCF ) with 6001 Jeffeson, LLC s popety located at 6001 West Jeffeson Boulevad, Culve City, and an additional $10,000,000 paid to the City in cash o equivalent popeties located in the vicinity of the Culve City Tansfe Station AN EQUAL EMPLOYMENT OPPORTUNTY - AFFRMATVE ACTON EMPLOYER

2 Honoable Councilmembes -2- June 12, 2017 SUMMARY As pat of LASAN inteest and citical need to develop Solid Waste Resouces nfastuctue in West Los Angeles wasteshed and oppotunities fo egional collaboation, LASAN became awae of an available site located at 6001 West Jeffeson Blvd that could be developed as a MRF The popety is owned by 6001 Jeffeson, LLC, an affiliate of NantWoks LLC, a phamaceutical company (collectively 6001 Jeffeson, LLC and NantWoks, LLC ae efeed to as Nant ) The popety is appoximately 59,472 squae feet and is located patly in Culve City and patly in the City of Los Angeles Afte extensive evaluation LASAN has detemined that this site is suitable fo a possible MRF The popety is zoned to allow fo a MRF, and was in fact peviously occupied by an olde MRF which was demolished and cleaned up by Nant n addition, having this site in close poximity to the existing Culve City Tansfe Station will facilitate and expand the potential fo a joint patneship with Culve City fo shaed solid waste management that would be mutually beneficial Plans fo facilitating the joint patneship ae undeway LASAN secued the sevices of a consultant (HDR) to assist LASAN and Culve City with the pocess of secuing the entitlements fo the development of a MRF and elated public outeach and CEQA analysis LASAN, in collaboation with GSD, has negotiated an ageement with Nant fo the exchange of LASAN s popety at 9940 Jeffeson Blvd with thei popety located at 6001 Jeffeson Blvd Accoding to the tems of the ageement, 6001 Jeffeson, LLC will sell 6001 Jeffeson to LASAN fo $7,500,000 via fee title and quitclaim and LASAN will sell 9940 Jeffeson to NantWoks, LLC fo $17,500,000 The ageement will esult in an exchange of popeties as well as a cash payment of $10,000,000, o equivalent popeties ( Reconciliation Payment ) fom Nant to LASAN As pat of the exchange, 6001 Jeffeson LLC will etain, on a month-to-month basis, paking fo thei vehicles at 6001 Jeffeson Blvd LASAN has also identified some additional popeties, located at 9401 West Jeffeson Blvd (the 9401 Popeties) that LASAN ecommends fo its acquisition as pat of this exchange Nant, though its affiliate Vetean Holdings LLC, a Delawae limited liability company, has ageed to use its best effots to extend offes to acquie the 9401 Popeties The 9401 Popeties wee appaised at the equest of the City The appaised value was detemined to be $9,000,000 and the negotiated puchase pice was established at $9,100,000 Nant is to ente into puchase ageements ( Additional Lot Puchase Contacts ) appoved by the City fo the acquisition of this popety f Nant successfully entes into these Additional Lot Puchase Contacts, then Nant shall deposit the Additional Lot Puchase Contact Assignments, all documents and funds, into Escow (collectively, the Reduced Reconciliation Payment ) The Reduced Reconciliation Payment shall equal $10,000,000, less the aggegate amount paid by Nant fo this popety n the event the Reduced Reconciliation Payment Conditions ae not satisfied, then the Reconciliation Payment shall equal $10,000,000 LASAN will etain appoximately 17,000 squae feet in fee fom 9940 West Jeffeson Boulevad fo its Odo Contol Facility NantWoks, LLC will gant easements to the City fo access to the OCF and fo connection to the OCF s powe box and powe pole An access easement will be obtained by City, allowing access to and fom Jeffeson

3 Honoable Councilmembes -3- June 12,2017 Boulevad, though adjacent College Boulevad, with the assistance of Nant, at City s own expense f this access easement is not secued befoe closing, Nantwoks, LLC will povide a 16-foot wide access easement to and fom Jeffeson Boulevad, though 9940 fo the benefit of City s etained 17,000 squae foot pacel n addition, the exchange of 9940 Jeffeson will eseve two easements as follows: a subsuface sanitay sewe easement, without ight of suface enty, within a thity-foot wide potion of one pacel and a second easement fo ingess and egess ove anothe pacel RECOMMENDATONS Based on eview and ecommendations by LASAN and GSD, it is ecommended that the City Council adopt the following ecommendations: 1 Appove the exchange of the City-owned popety located at 9940 Jeffeson Boulevad, Culve City with the popety located at 6001 W Jeffeson Boulevad, Culve City owned by 6001 Jeffeson, LLC (togethe with the Additional Lot Puchase Contact Assignments (if applicable) and the Reconciliation Payment); 2 Appove the eceipt of payment of $10,000,000 to be paid fo the City by Nant in cash o equivalent popeties in the vicinity of the tansfe station in Culve City; 3 Request the City Attoney to eview and appove as to fom all documents including but not limited to the Puchase & Sale Ageement, Paking License and Easement Ageements; 4 Adopt the attached Odinance authoizing the exchange of the Popeties and the Easements, with 6001 Jeffeson, LLC and Nantwoks, LLC; 5 FND that the sale/exchange of the City-owned popety at 9940 Jeffeson is exempt fom the povisions of the Califonia Envionmental Quality Act (CEQA) pusuant to City CEQA Guidelines, Aticle, Section 1, Categoical Exemption Class 12; 6 Diect the Geneal Manage of GSD to execute the Paking License Ageement with 6001 Jeffeson, LLC fo $500 pe month, on a month-to-month basis, fo the 6001 W Jeffeson popety City will have joint use of Popety with 6001 Jeffeson, LLC on an as-needed basis; 7 Diect the Geneal Manage of GSD and Diecto of LASAN to execute the Puchase and Sale Ageements and the Easement Ageements; 8 nstuct the Depatment of Geneal Sevices to complete the tansactions outlined in the Odinance, pocess the necessay documentation to execute the exchange, and deposit the poceeds into the appopiate accounts, as diected by the Los Angeles Administative Code and as appoved to fom by the City Attoney; and,

4 Honoable Councilmembes -4- June 12, Authoize the Geneal Manage of GSD and Diecto of LASAN to execute all necessay ageements, eviewed and appoved as to fom by the City Attoney, fo the acquisition of the 9401 Popeties fom Jeffeson Popety LLC should the Additional Lot Puchase Contacts and the assignment to the City be appoved by the City (thu GSD and LASAN) and diect GSD to pocess the necessay documentation to effectuate this acquisition FSCAL MPACT STATEMENT This eal estate tansaction will esult in Nant paying the City $10,000,000 cash o $10,000,000 in equivalent popeties Poceeds will be deposited in the Sewe Constuction and Maintenance Fund, Revenue Souce Code , Sale of Real and Pesonal Popety Fo LASAN infomation, please contact Ali Poosti, Pincipal Civil Enginee, at (323) o Abdul Danishwa, Senio Envionmental Enginee, au323) Fo GSD Real Estate Sevices Division infomation, please con David Robets, Assistant Diecto, at (213) / Tony M Royste Geneal Manage Depatment of Geneal Sevices EniqueNC Vi Diecto Bueau of Sanitation (LASAN) Attachments

5 FORM GEN 160 (Rev 11-02) CTY OF LOS ANGELES NTERDEPARTMENTAL CORRESPONDENCE Date: June 7, 2017 To: David Robets, Assistant Diecto Real Estate Sevices Division Depatment of Geneal Sevices Attn: Amando Paa, Senio Real Estate Office (MS 706) Fom: Maia Matin, Manage Envionmental Management Goup Bueau qfengineeing Depatment of Public Woks Subject: flat fwta fk *9940 JEFFERSON BLVD, CULVER CTY, CA (APN and APN ) (WO E ) CEQA NOTCE OF EXEMPTON Following you equest fo envionmental documentation, we have detemined that this poject is exempt fom the povisions of the Califonia Envionmental Quality Act (CEQA) pusuant to City of Los Angeles CEQA Guidelines (At, Sec 1, Class 12) and State Guidelines (Sec 15312) The attached Notice of Exemption seves as you ecod that CEQA eview has been completed and it should be etained in the official poject file This detemination is based on the infomation submitted to us by you office and on ou subsequent investigation Please eview the enclosed notice caefully f the notice incompletely o inaccuately descibes the poject, the City could be vulneable to legal challenges f you think thee may be inconsistencies, o if the poject desciption changes, please contact this office fo a e-evaluation of the poject s exempt status The Notice of Exemption may be filed with the Los Angeles County Clek afte the poject is appoved o a detemination is made to cay out the poject Filing with the County Clek is not usually equied but has the advantage of limiting legal challenges to a 35-day peiod Without the filing, legal challenges can be filed up to 180 days following commencement of the poject The filing is subject to a $75 filing fee, which you office will be expected to povide f you want EMG to file the notice with the County Clek, please let us know immediately afte the poject is appoved o a detemination is made to cay out the poject Poject appoval can occu in any of seveal actions, such as declaing the popety suplus, enteing o closing escow, etc Should you have questions o concens egading this notice, please contact Noman Mundy of my staff at (213) o at nomanmundv@lacitvog MM/nm:CEQA NOE Tansmittal Memo Enclosue: Notice of Exemption

6 COUNTY CLERK'S USE CTY OF LOS ANGELES OFFCE OF THE CTY CLERK ROOM 395, CTY HALL LOS ANGELES, CALFORNA CALFORNA ENVRONMENTAL QUALTY ACT NOTCE OF EXEMPTON (Aticles and - City CEQA Guidelines) CTY CLERK'S USE Submission of this fom is optional The fom shall be filed with the County Clek, E mpeial Highway, Nowalk, Califonia, 90650, pusuant to Public Resouces Code Section 21152(b) Pusuant to Public Resouces Code Section 21167(d), the filing of this notice stats a 35-day statute of limitations on cout challenges to the appoval of the poject LEAD CTY AGENCY AND ADDRESS: City of Los Angeles c/o Envionmental Management Goup Los Angeles City Enginee 1149 S Boadway, MS 939 Los Angeles, CA PROJECT TTLE: Jeffeson Blvd 9940 WO E PROJECT LOCATON: 9940 Jeffeson Blvd, Culve City, CA COUNCL DSTRCT Adjacent to CD 10 LOG REFERENCE TG Page 672 Gid H2 DESCRPTON OF NATURE, PURPOSE, AND BENEFCARES OF PROJECT: The City of Los Angeles is pocessing fo possible land swap and disposition a potion of City-owned popety located at 9940 Jeffeson Boulevad in Culve City (APN ) and also adjacent pacel APN (see Figue 1) The City will etain an appoximately 17,000 squae foot potion of APN fo puposes of continued use of an existing odo contol facility associated with undegound sewes in the vicinity This pacel is cuently vacant, except fo the afoementioned odo contol facility Pacel APN povides access to 9940 Jeffeson Blvd fom College Boulevad This CEQA exemption is only fo the potential sale o disposition of the subject popety CONTACT PERSON: Noman Mundy TELEPHONE NUMBER: (213) EXEMPT STATUS: (Check One) CTY CEQA STATE CEQA GUDELNES GUDELNES MNSTERAL At, Sec 2b Sec DECLARED EMERGENCY At, Sec 2a(1) Sec 15269(a) EMERGENCY PROJECT Sec 15269(b)(c) At, Sec 2a(2)(3) At, Sec 1 GENERAL EXEMPTON Sec 15061(b)(3) CATEGORCAL EXEMPTON* At ll, Sec 1 Class 12 Sec STATUTORY* At Sec * See Public Resouces Code Sec and set foth state and city guidelines povisions JUSTFCATON FOR PROJECT EXEMPTON: Califonia CEQA Guidelines Section 15312, consists of sales of suplus govenment popety except fo pacels of land located in an aea of statewide, egional, o aea wide concen identified in Section 15206(b)(4) Section 15206(b)(4) concens pojects fo which an Envionmental mpact Repot (ER) and not a Negative Declaation was pepaed, and would be located in and would substantially impact the following aeas of citical envionmental sensitivity: the Lake Tahoe Basin; the Santa Monica Mountains Zone; the Califonia Coastal Zone; an aea within 1/4 mile of a wild and scenic ive; the Sacamento-San Joaquin Delta; the Suisun Mash; o the juisdiction of the San -ancisco Bay Consevation and Development Commission City oflos Angeles CEQA Guidelines (At, Sec 1, Class 12(2) c)) exempts the sales of suplus govenment popety except fo pacels of land located in an aea of statewide inteest o potential aea of citical concen as identified in the Goveno s Envionmental Goals and Policy Repot, pepaed pusuant to Govenment Code Section 65041, et seq The poject site is not located in such aeas F FLED BY APPLCANT, ATTACH CERTFED DOCUMENT OF EXEMPTON FNDNG SGNATURE: Maia Matin FEE: $7500 RECEPT NO DSTRBUTON: (1) County Clek (2) City Clek (3) Agency Recod TTLE: Envionmental Affais Office Envionmental Management Goup DATE: REC'D BY DATE (si*n

7 9940 Jeffeson Blvd, Culve City, Sale of Popety WO E Page 2 of 3 CATEGORCAL EXEMPTON NARRATVE ENVRONMENTAL REVEW - The State CEQA Guidelines (CCR Sec ) limit the use of categoical exemptions in the following cicumstances: 1 Location Exemption Classes 3,4,5,6, and 11 ae qualified by consideation of whee the poject is to be located - a poject that is odinaily insignificant in its impact on the envionment may be significant in a paticulaly sensitive envionment Theefoe, these classes ae consideed to apply all instances, except whee the poject may impact on an envionmental esouce of hazadous o citical concen whee designated, pecisely mapped, and officially adopted pusuant to law by fedeal, state, o local agencies The cuent exemption is unde Class 12 and this exception has no application hee 2 Cumulative mpact This exception applies when, although a paticula poject may not have a significant impact, the cumulative impact of successive pojects of the same type in the same place, ove time is significant This poject is the potential sale o disposition of suplus City popety at this location Thee ae no othe known pojects that could involve cumulatively significant impacts in the geneal aea Theefoe, this exception has no application hee 3 Significant Effect This exception applies when, although the poject may othewise be exempt, thee is a easonable possibility that the poject will have a significant effect due to unusual cicumstances The poject site is located within the nglewood Oil Field and potential constuction would be subject to applicable engineeing contols fo constuction on such sites Howeve, this poject consists only of the potential sale o disposition of suplus City popety at this location and does not include any gound distubance, excavation o constuction Thus, thee is no easonable possibility that the poposed poject will have a significant effect due to unusual cicumstances Theefoe, this exception has no application hee 4 Scenic Highway A categoical exemption shall not be used foa poject which may esult in damage to scenic esouces, including but not limited to, tees, histoic buildings, ock outcoppings, o simila esouces, within a highway officially designated as a state scenic highway This poject is the potential sale o disposition of suplus City popety at this location The poposed poject is not within sight of any state designated scenic highway esouce Theefoe, this exception has no application hee 5 Hazadous Waste Site This exception applies when a poject is located on a site listed as a hazadous waste site unde Govenment Code Section This poject is the potential sale o disposition of suplus City popety at this location The

8 9940 Jeffeson Blvd, Culve City, Sale of Popety WO E Page 3 of 3 State Depatment of Toxic Substances Contol Website (at Enviosto, wwwenviostodtsccagov) and the Califonia Wate Quality Contol Boad Website (at Geotacke, wee visited on May 23, 2017 No sites have been listed on the Envionstoo Geotacke websites elated to hazadous mateials o soils contamination at the poject site The poposed poject aea is not listed as a hazadous waste site Theefoe, this exception has no application hee 6 Histoical Resouces This exception applies when a poject may cause a substantial advese change in the significance of a histoical esouce Thee ae no known histoical esouces in the poject aea Thee ae no othe unusual cicumstances known to this office Theefoe, a substantial advese change in the significance of histoical esouces is not anticipated and this exception has no application hee

9 TV V lu 7* A v> JTTft L'M V :a «: : $#l ' A 1 K' *-!? Hf* Hi te-«l' ^>i : ( i* i> 5? V, v V, 1-11 jt A wt st s?kt fk : j i * : - j? d: T Bntumd tif BGiomp WniWtMf Engh ing aamiow Qwmmi ^'1' A :, Cty<fb»*eiM ^*3 *32 " ' * fe Q 'J-l* FGURE 1 n V -* fif ; *!*«* * -Ry m * i*' v- Ban <H SantHcn Date: 5/11/2017 * v v H 'ti -b> ' zmx&a 4 i Ep i-ttti;' u 4 1 '*4 > SEWER (undegound) ~ Vf * iu» s: ^ V 1 m f «/// f ~ ft hitae ^X;jjjgopa 1 N l 1 k " ' l Jl1 lsahw APN y 1 f/' a - 3 tt ;A ea 11 0 ^ «T Uss - <v S l > y (APN ; L*j L - ji_ Tf _dj«s 1ft f 'j? f' ;, H^S? * pt y t! V, v,!t * t a j *J~ &> f-j 3JBSW^ V V A 9940 Jeffeson Blvd Culve City, CA = lo polenlial sale/disposilion ] = etained by City» twfcv # «Ji C CfUF**l