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CC:CCPFA - ACTION ITEM: (1) Approval of a Purchase Option Agreement with CF CC Investor LLC Giving the Culver City Public Finance Authority (Authority) the Exclusive Right, but not the Obligation, to Purchase 9050 Washington Boulevard during a Defined Option Period; (2) Authorization to the Executive Director to Sign the Purchase Option Agreement, Subject to Approval as to Form by the Authority’s General Counsel; (3) Authorization of Payment of $375,000 by Authority to CF CC Investor LLC under the Terms of the Agreement; (4) Authorization of Expenditures by Authority Not-to-Exceed $500,000 for Related Due Diligence Analysis; and (5) Direction to City Manager/Executive Director as Deemed Appropriate.
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Meeting Date: September 28, 2026
Contact Person/Dept.: Adam K. Troy, Assistant City Manager
Stephen Agnostini, Assistant City Manager
Phone Number: (310) 253-6000
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Attachments: Yes [X] No []
Public Notification: (E-Mail) Meetings and Agendas - City Council (09/24/2026)
Department Approval: Odis Jones, City Manager (09/22/2026)
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RECOMMENDATION
Staff recommends the City Council and Culver City Public Finance Authority (Authority) Board (1) approve a Purchase Option Agreement with CF CC Investor LLC (Attachment 1) giving the Authority the exclusive right, but not the obligation, to purchase 9050 Washington Boulevard (Property) during a defined option period; (2) authorize the Executive Director to sign the Purchase Option Agreement, subject to approval as to form by the Authority’s General Counsel; (3) authorize payment of $375,000 under the terms of the agreement; (4) authorize expenditures not-to-exceed $500,000 for related due diligence analysis; and (5) provide direction to the City Manager/Executive Director as deemed appropriate.
These actions would give the Culver City Public Finance Authority time and resources to evaluate the purchase of the Property. Such actions do not approve the purchase of the Property or any future development project. The Staff would need to come back to City Council and the Culver City Public Finance Authority Board to seek approval of the purchase of the Property and any development project.
BACKGROUND/DISCUSSION
The Culver City Public Finance Authority is evaluating an unsolicited national destination economic development opportunity via the Los Angeles Economic Development Corporation (LAEDC) and as part of this opportunity will need to consider purchasing property to meet the public purpose of economic development, public parking, recreation, tourism, the potential creation of jobs and the generation of new sales, hotel and utility tax revenue for the City as well as meeting the City Council’s goals of addressing the affordability concerns of the community with regards to housing availability from both an affordable and workforce housing perspective.
The property at 9050 Washington Boulevard includes approximately six acres, three office buildings totaling approximately 198,000 square feet, and an underground garage marketed as containing 607 striped parking spaces. The owner is CF CC Investor LLC. The Authority and the owner signed a Letter of Interest, dated August 27, 2026 (the “LOI”). The LOI identified a potential purchase price of $103 million and a target closing date on or before February 28, 2027, subject to extension. Staff proposes that the Authority execute an option agreement that would hold the Authority’s right to buy the Property on agreed terms until February 28, 2027. During that period, staff would complete its review and due diligence and return with a recommendation on whether to purchase the Property or not.
Visitors drawn by future programming at the Property could also bring customers to nearby restaurants, hotels and small businesses. Public ownership of the Property, through the Authority, could also give the City a way to plan for economic development in Downtown over time.
These possibilities are at an early stage. Staff would need to study the buildings, zoning requirements, the cost of improvements, parking demand, traffic, neighborhood effects, and the cost of operating any proposed facilities.
Staff would also seek community input as to Property use and potential development. If a specific project moves forward, it will return to the required City bodies for public review and consideration of final approvals. In addition, at the final approval stage, staff will make available to the community all appraisals and feasibility analysis for inspection and review.
Approving the Purchase Option Agreement does not approve the purchase of the Property, nor does it approve a specific project, or select a development partner, nor does it commit the City to construction.
The option would give the Authority until February 28, 2027 to decide whether to purchase the property on the agreed terms. During that period, the owner would be restricted from selling it to another buyer, subject to any exceptions in the agreement.
The following is a summary of key terms of the proposed agreement:
• Purchase price of $103,000,000, subject to due diligence, including but not limited to an MAI appraisal establishing the fair market value of the Property as not less than the Purchase Price
• Authority would deposit $375,000 in earnest money, which is non-refundable and would be applied to the purchase price.
• Authority may terminate at any time prior to Closing, for any reason, provided there is no return of the Earnest Money for such termination.
• Property shall be sold in an “as-is” condition.
• Closing date of the purchase shall be no later than February 28, 2027, with two 30 day extension rights by Authority, each upon payment of $100,000 extension fees that are not applied to the Purchase Price.
Staff recommends the Authority approve the option to purchase the Property as outlined above.
Due Diligence
Staff would present their findings before requesting Culver City Public Finance Authority to exercise the option. If the Culver City Public Finance Authority decided to proceed, the Purchase Option Agreement would govern the steps to closing. If the Culver City Public Finance Authority decided not to proceed, the option would expire without an obligation to buy.
Staff requests approval use of Culver City Public Finance Authority funds, in accordance to the Culver City Public Finance Authority budget, of up to $500,000 to complete the due diligence work needed for an informed purchase decision. This funding authority or amounts will not be taken from the City’s General Fund but yet from the Culver City Public Finance Authority in accordance with the Culver City Public Finance Authority’s approved budget and would allow staff to obtain needed professional services and studies concerning, but not limited to the following:
• The condition, capacity, access, and operating costs of the underground parking;
• Environmental, geotechnical building condition, structural and seismic issues, and likely repair costs ($80,000);
• Title, survey, and property legal matters ($110,000);
• Existing agreements, and other obligations affecting the property ($30,000);
• An independent appraisal and analysis of purchase financing ($55,000);
• Parking demand, traffic, and potential neighborhood effects ($50,000);
• The economic feasibility and operating costs of possible public uses ($100,000); and
• Community engagement and related planning work.
The $500,000 includes a contingency and is the maximum authorization, not a commitment to spend the full amount. Staff would report their findings and actual costs when returning to the Authority and Council.
FISCAL ANALYSIS
The proposed purchase price is $103,000,000 subject to the Culver City Public Finance Authority’s due diligence, including property review and an appraisal by a qualified MAI appraiser showing that the Purchase Price does not exceed fair market value.
The immediate request is to authorize up to $500,000 for due diligence and $375,000 as earnest money to enter into the option agreement. The requested amount not to exceed $875,000 would allow staff to gain site control, test the property’s condition, costs, parking value, and potential public uses before returning to the governing body with a recommendation of purpose. The entire $875,000 will be paid out of the Culver City Public Finance Authority’s current budget.
The Culver City Public Finance Authority will consider purchasing the property through a conduit and/or revenue bond financing structure. There is no current financial impact contemplated to the City’s General Fund.
ATTACHMENTS
1. 2026-09-28_ATT 1_Proposed Purchase Option Agreement
recommended action
MOTIONS
That the City Council and Culver City Public Finance Authority Board:
1. Approve the Form of a Purchase Option Agreement with CF CC Investor LLC Giving the Authority the exclusive right, but not the obligation, to purchase 9050 Washington Boulevard during a defined option period and direct the City Manager, the Executive Director of the Authority, the City Attorney and the General Counsel of the Authority to make such changes, insertions and omissions to the Purchase Option Agreement that’s in the best interest of the City and the Authority as the City Manager, Executive Director, City Attorney and General Counsel may approve; provided, such changes, insertions and omissions are consistent with City Council direction;
2. Authorize payment of $375,000 in earnest money under the terms of the Agreement;
3. Authorize expenditures not to exceed $500,000 for due diligence related analysis;
4. Authorize the City Attorney/Authority General Counsel to review/prepare the necessary documents; and,
5. Authorize the City Manager/Executive Director to execute such documents on behalf of the City.