City of Culver City, California
Agenda Item Report
Meeting Date: 06/09/2014 Item Number: C-8
CITY COUNCIL AGENDA ITEM: Approval of a Purchase and Sale Agreement in
the Amount of $1,345,790 with Thomas James Capital Regarding the Sale of City-
Owned Property Located at 11304 Segrell Way (Former Fire Station #3).
Contact Person / Department:
Joe Susca/CDD
Todd Tipton/ CDD
Phone Number:
(310) 253-5763
(310) 253-5783
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification (E-Mail) Meetings and Agendas – City Council (06/04/14); The Culver
City Chamber of Commerce (06/03/14); Keller Williams Realty (05/29/14); Thomas
James Capital Inc. (05/29/14); Via U.S. Post: A total of 730 businesses, residents, and
property owners within 500 feet of the property to the end of block (05/29/14)
Department Approval:
Sol Blumenfeld (06/04/14)
Charles Herbertson (06/03/14)
City Attorney Approval:
Carol Schwab (by H. Baker) (06/04/14)
Chief Financial Officer Approval:
Jeff Muir (06/04/14)
City Manager Approval:
John M. Nachbar (06/04/14)
RECOMMENDATION:
Staff recommends the City Council approve a Purchase and Sale Agreement in the
amount of $1,345,790 with Thomas James Capital Inc. for the purchase of the City-
owned property located at 11304 Segrell Way.
BACKGROUND:
On September 14, 2010, Fire Station No. 3 located at 11304 Segrell Way (Property)
was decommissioned due to construction of a replacement station at 6030 Bristol
Parkway. The Property is comprised of a 4,880 square feet building, which resides on
three, 5,000 square feet single family; residentially zoned parcels.
During the City Council’s Regular Meeting of March 26, 2013, the City Council
authorized the release of a Request for Qualifications to secure a real estate agent to
market and sell the Property. On August 12, 2013 the City Council selected Keller
Williams Realty to represent the City in this transaction. Keller Williams was selected
based on their extensive experience selling property to developers for redevelopment,
including those properties that require demolition of existing improvements.
Following selection of Keller Williams, staff prepared agreements, guidelines and
disclosure statements that outline the history of the Property, including prior ground City of Culver City, California
Agenda Item Report
water and soil remediation activities. Staff prepared the necessary contracts and
buyer disclosure statements in preparation of placing the Property on the market.
On October 24, 2013, the City executed a contract with Keller Williams, and on
October 25, 2013, the Property was listed for sale in an amount of $1.25 million with a
November 22, 2013 deadline to submit offers. Four initial offers were received and
counter offers were submitted to all four respondents. The City Council reviewed the
counter offers and responded to Thomas James Capital Inc., (TJC); the highest
bidder, with a conditional acceptance of their offer provided TJC agrees to 1) a right-
of-reverter clause if they fail to commence construction within two years of closing
escrow, 2) install solar panels on the roof of each of the three houses they construct
and 3) the neighborhood embraces their proposed conceptual plans. TJC accepted
the City Council’s counter offer.
On February 5, 2014, TJC held a meeting at the Property to present their conceptual
plans to the Segrell neighborhood. Twelve residents attended, provided comments,
and ultimately found the plans to be a good fit for the neighborhood. The residents’
comments are included in the terms and conditions below.
Thomas has built or remodeled approximately 200 homes in Southern California over
the past five years. Staff contacted TJC’s references and found them to be positive.
Once construction permits are issued, TJC anticipates it will take four to five months to
complete demolition of the existing improvements and construction of the three
houses.
DISCUSSION:
The proposed Purchase and Sale Agreement (PSA) includes the following terms and
conditions:
1. A selling price of $1,345,790 with a 60 calendar-day escrow.
2. A $40,500 deposit will be placed into escrow by TJC.
3. TJC agrees that the deposit will be forfeited as liquidated damages if they do
not complete the purchase.
4. Payment is to be made in cash only, (traditional financing will be unnecessary).
5. TJC shall engage Pest Control Services at the Property prior to demolition of
the existing building.
6. Preparation of a construction management plan that includes clearing
construction debris around the site and regulation of construction hours, truck
routes, and off-site contractor parking.
7. New parkway design standards for landscaping.
8. Buyer option to plant drought-tolerant landscaping in their front yard.
9. New concrete block wall replacement, if required.
10. Pave or slurry seal the immediately adjacent alley and/or street that is
excavated to hook-up utilities. City of Culver City, California
Agenda Item Report
11. TJC understands that acceptance of the offer is no guarantee that unusual
construction methods will be approved by the City.
12. Solar panels on the roof of the houses.
13. TJC agrees to commence construction within one year and to build a project in
substantial conformance with their conceptual plans (see attached). Failure to
do so will result in a $5,000 per month penalty up to a $25,000 maximum over
five months. If TJC submits evidence that the cause of the delay is no fault of
their own, however, they may apply for an extension.
14. If TJC fails to commence construction within two years, a right of reverter
clause will allow the City the option to file a quiet title action to regain title to the
Property. If the Property reverts back to the City, TJC will receive the original
purchase price amount minus escrow fees, real estate agent commissions and
related fees incurred by the City during the original land sale transaction, in
addition to subtracting fees incurred by the City to exercise its rights under the
right of reverter.
FISCAL ANALYSIS:
Should the City Council approve this item, the sales price would be $1,345,790. Five
percent of the sales price ($67,290) will be split between Keller Williams and TJC’s
broker as their commission, which is payable upon the close of escrow. The
remaining $1,278,500 in sales proceeds (less escrow fees and related costs) will be
deposited into the City’s General Fund. .
ATTACHMENT:
? Thomas James Capital Conceptual Plans
MOTIONS:
That the City Council:
1. Approve a Purchase and Sale Agreement for the sale of City-owned property
located at 11304 Segrell Way to Thomas James Capital Inc. in the amount of
$1,345,790; and,
2. Authorize the City Attorney to review/prepare the necessary documents; and,
3. Authorize the City Manager to execute such documents on behalf of the City.
MEETING DATE: 06/09/2014
AGENDA ITEM: CITY COUNCIL AGENDA ITEM: Approval of a Purchase
and Sale Agreement with Thomas James Capital
Regarding City Property Located at 11304 Segrell Way.
ATTACHMENTS
No. Item Pages
1
Thomas James Capital Conceptual Plans
1-39
ATTACHMENT NO. 1
Page 1ATTACHMENT NO. 1
Page 2ATTACHMENT NO. 1
Page 3ATTACHMENT NO. 1
Page 4ATTACHMENT NO. 1
Page 5ATTACHMENT NO. 1
Page 6ATTACHMENT NO. 1
Page 7ATTACHMENT NO. 1
Page 8ATTACHMENT NO. 1
Page 9ATTACHMENT NO. 1
Page 10ATTACHMENT NO. 1
Page 11ATTACHMENT NO. 1
Page 12ATTACHMENT NO. 1
Page 13ATTACHMENT NO. 1
Page 14ATTACHMENT NO. 1
Page 15ATTACHMENT NO. 1
Page 16ATTACHMENT NO. 1
Page 17ATTACHMENT NO. 1
Page 18ATTACHMENT NO. 1
Page 19ATTACHMENT NO. 1
Page 20ATTACHMENT NO. 1
Page 21ATTACHMENT NO. 1
Page 22ATTACHMENT NO. 1
Page 23ATTACHMENT NO. 1
Page 24ATTACHMENT NO. 1
Page 25ATTACHMENT NO. 1
Page 26ATTACHMENT NO. 1
Page 27ATTACHMENT NO. 1
Page 28ATTACHMENT NO. 1
Page 29ATTACHMENT NO. 1
Page 30ATTACHMENT NO. 1
Page 31ATTACHMENT NO. 1
Page 32ATTACHMENT NO. 1
Page 33ATTACHMENT NO. 1
Page 34ATTACHMENT NO. 1
Page 35ATTACHMENT NO. 1
Page 36ATTACHMENT NO. 1
Page 37ATTACHMENT NO. 1
Page 38ATTACHMENT NO. 1
Page 39