City of Culver City, California
Agenda Item Report
Meeting Date: 10/11/10 Item Number: J-1
JOINT CITY COUNCIL/REDEVELOPMENT AGENCY BOARD AGENDA ITEM:
Discussion Related to the Reuse of Vacant Gas Station Sites and Provide Direction
to the City Manager/Executive Director Related Thereto.
Contact Person/Dept.:
Michael Pasternak, Redevelopment; Todd
Tipton, Redevelopment
Phone Number: (310) 253-5708 and 5783
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (USPS) All Property Owners, Businesses and Occupants within 500
feet of the Gas Station Sites (); (Email) Meetings and Agendas – City Council (10/06/10),
Meetings and Agendas - Redevelopment Agency (10/06/10);
Department Approval:
Sol Blumenfeld(09/30/10)
City Attorney Approval:
Carol Schwab (by H. Baker) (10/20/10)
Agency General Counsel Approval:
Murray Kane (10/19/10)
Chief Financial Officer Approval:
Jeff Muir (by N. Kimball) (10/20/10)
City Manager/Executive Director Approval:
John M. Nachbar (10/20/10)
RECOMMENDATION:
Staff recommends the City Council and Redevelopment Agency Board (Agency
Board) discuss and provide direction related to the reuse of vacant gas station sites.
BACKGROUND:
There are six vacant gas stations at major commercial intersections in
Redevelopment Component Area No. 4 (Attachment 1). Many of these stations
ceased operations due to leaks from underground storage tanks (UST).|1010| The vacant
gas station sites attract vandalism, graffiti tags, illegally posted advertisements, and
litter. The vacant sites typically consist of dilapidated buildings and poorly
maintained property surrounded with temporary chain-link fencing (Attachment 2).
Oil companies will often secure and maintain long-term leaseholds on vacant gas
station sites to prevent competitors from taking over those locations, thus extending
the timeframe that these sites remain vacant. In total, vacant gas stations make up
over 68,000 square feet of blighted commercial property within Culver City’s
corporate limits.
The Los Angeles Regional Water Quality Control Board (LARWQCB) is the lead
agency responsible for administering the UST Cleanup Program for gas stations in
Culver City. Once a UST leak is reported, there are three main stages of clean up: City of Culver City, California
Agenda Item Report
(1) site assessment (determining the level of contamination and the appropriate
action plan), (2) environmental remediation (actions taken to cure the site of
contamination), and (3) verification monitoring (ensuring that levels of contamination
no longer pose a threat to people or the environment). Case closure is the final
release where the party responsible for the leak is no longer required to actively
clean up or monitor the site|1010|.
DISCUSSION:
Staff recommends the City Council and Agency Board consider the alternatives
below.
1. Request for Proposals (RFP) for Redevelopment (Primary Recommendation)
The Agency issues a request for proposals to the current owners, current
lessees, and the development community for redevelopment proposals at the
blighted gas station sites. Should the property owners or leaseholder prove
unreceptive to the development proposals, the Agency has the option of
acquiring the properties outright through various available means. Applicable
sites include all vacant gas station properties; or, should the above process
prove unsuccessful, the Agency Board may consider the following options.
2. Invoke the Polanco Act for 3800 Sepulveda Boulevard
The Polanco Redevelopment Act gives redevelopment agencies the authority
to order, undertake, or expedite the investigation and cleanup of Brownfields
within redevelopment project areas. This tool is best used on sites where
ongoing remediation efforts do not meet the Agency’s acceptable timeframe
for reuse. This approach would require the Agency to hire an environmental
consultant to assess current remediation efforts.
3. Facilitate Tenanting of Sites
Staff has received unsolicited interest in vacant gas station property for reuse
as a convenience store, car wash, and biodiesel fueling station (Attachment
4). For sites that are clean, the Agency may attempt to work with property
owners to actively tenant the site. Applicable sites include 11304 Culver
Boulevard, 4436 Sepulveda Boulevard, 11281 Washington Place, and 11962
Washington Boulevard; and
4. Facilitate Interim Use
For sites that are clean, the Agency may attempt to work with property
owners and lessees to re-purpose the site with an interim use such as farm
stands, pop-up retail, public parking, or other neighborhood serving uses.
Applicable sites include 11304 Culver Boulevard, 4436 Sepulveda Boulevard,
11281 Washington Place, and 11962 Washington Boulevard; and
5. Set Policy and Requirements for Screening of Vacant Sites City of Culver City, California
Agenda Item Report
The City Council may consider creating a policy for the screening of vacant
gas stations and other vacant properties. The screening could be decorative,
part of a public art campaign, involve collaboration with the school system’s
art programs, or could promote City or Agency events, activities, etc.
Applicable sites include all vacant gas station sites and other vacant
properties.
FISCAL ANALYSIS:
It is difficult to determine the extent of the fiscal impact for each alternative at this
time. The City and Agency will incur staff costs if the RFP process is pursued.
Additional costs may be incurred depending upon options selected by the Agency
Board. The specific amount of such costs will be determined in large part by the
response of oil companies and property owners. Should the City Council and/or the
Agency Board provide direction to move forward with one or more of the options
described herein, the fiscal impact of each option will be discussed more in depth
during follow up reports to the City Council and Agency Board.
ATTACHMENTS:
1. Map of Vacant Gas Stations in Redevelopment Component Area No. 4
2. Photographs of Site Conditions 2010
3. Matrix of Vacant Gas Stations’ Status and Recommended Actions
4. Letter of Interest from Olina Biofuels LLC
MOTION:
That the City Council and Agency Board:
Discuss the topic of reuse of vacant gas station sites and direct the City
Manager/Executive Director as deemed appropriate.
Notes:
|1010| Until the mid-1980s most gas stations in California had UST’s made of steel, which were prone to corrode
and leak gasoline into the soil and groundwater. Stations are typically vacated while the machinery for active
environmental remediation occupies the site.
City of Culver City, California
Agenda Item Report
|1010| The following vacant gas station sites have no record of activity for at least 5 years:
• 3800 Sepulveda Boulevard
This station is owned by an oil company; its last Culver City business tax certificate expired in
1999. After completing remediation activities in 2004, the oil company has been monitoring levels
of contamination. The date when the responsible party will file for case closure is unknown at this
time.
• 11198 Washington Place
This station is owned by a private investment company and is under leasehold by an oil company.
The responsible party intends to submit a request for case closure package in 2010. The terms of
the leasehold are unknown at this time; the last valid business tax certificate for this address was
prior to the year 2000|1010|.
The following vacant sites are in the process of being reused:
• 11304 Culver Boulevard
This station is owned by a private investment company, and the property is under leasehold with
an oil company. Environmental remediation is complete and the responsible party will monitor
contamination levels at the site after which the site is a candidate for low-risk case closure. A car
repair business recently submitted an application for a conditional use permit (CUP) at this
address.
• 4436 Sepulveda Boulevard
This station is owned by an individual. The LARWQCB issued the case closure for the site in
October 2009. A convenience store is interested in occupying the site and has contacted the
Planning Division to obtain design guidelines for retrofitting the property.
• 11962 Washington Boulevard
This station is owned by an individual and is not under leasehold. Its last active business tax
certificate expired prior to the year 2000. Environmental remediation is complete, and the
LARWQCB issued case closure in 2007. The property owner is actively trying to sell the site,
which has a triangular parcel boundary that makes development and parking difficult.
• 11281 Washington Place
This station is owned by an individual who is actively marketing the site for sale (Attachment 2).
There is no UST leak reported for this site. A mixed use project was entitled in 2004 but never
built. The last business tax certificate for this address expired in 1994.
MEETING DATE: October 25, 2010
AGENDA ITEM: Discussion Related to the Reuse of Vacant Gas
Station Sites.
ATTACHMENTS
Pages
1. Map of Vacant Gas Station Sites in Redevelopment
Component Area No. 4
1
2. Photographs of Existing Site Conditions September 2010 2-3
3. Matrix of Vacant Gas Stations ’ Status and Recommended
Actions
4
4. Letter of Interest from Olina Biofuels LLC
5-6
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§ ¨ ¦|1010|Washington
Culver
Sawtelle
Alley
Sepulveda
Albright
Globe
Barman
Wagner
Elenda
Huron
Coolidge
Bentley
Aletta
Midway
Harter
Braddock
Spad
Minerva
Bledsoe
Berryman
Center
Lindblade
Tilden
Girard
Prospect
Tuller
Grand View
Centinela
Ramp
Charles
Garland
College
Oregon
Arizona
Franklin
Venice
Marietta
Matteson
East
Colonial
Commonwealth
Westwood
Lamarr
Piggott
Garfield
Herbert
Huntley
Inglewood
Atlantic
Coogan
McLaughlin
Louise
Chase
Arvee
Kenyon
Purdue
Corinth
Campbell
Alley
Huntley
Alley
Tilden
Tuller
Huron
Alley
Alley
Alley
Alley
Lindblade
Tuller
Harter
Alley
Alley
Alley
Alley
Culver
Ramp
Alley
Huntley
Matteson
Alley
Atlantic
Ramp
Oregon
Herbert
Huron
Alley
Ramp
Matteson
Alley
Washington
Alley
Alley
Alley
Alley
Alley
Culver
Ramp
Alley
Venice
Alley
Alley
Alley
Globe
Ramp
Alley
Alley
Globe
Alley
Alley
Tuller
Alley
Grand View
VACANT GAS STATIONS
Legend
GAS STATIONS
!
! ! !
! ! AIP
Area No. 3
Area No. 4
WITHIN REDEVELOPMENT COMPONENT AREA NO. 4
Area in Detail|10101010101010|(1) 11962 Washington Blvd.
(2) 11304 Culver Blvd.
(3) 4436 Sepulveda Blvd.
(4) 11281Washington Pl.
(5) 11198 Washington Pl.
(6) 3800 Sepulveda Blvd.
ATTACHMENT 1
111304 Culver Blvd.
(@ Sawtelle Blvd.)
3800 Sepulveda Blvd.
(@ Venice Blvd.)
4436 Sepulveda Blvd.
(@ Braddok Dr.)
ATTACHMENT 2
211198 Washington Pl.
(@ Sepulveda Blvd.)
11281 Washington Pl.
(@ Sawtelle Blvd.)
11962 Washington Blvd.
(@ Inglewood Blvd.)
ATTACHMENT 2
3Potential Agency Actions
Station Status: Environmental / Availability RFP Polanco
Interim
Use Tenant Screen
11304 Culver Blvd. Case Closure Pending / For Lease
X X X X
3800 Sepulveda Blvd. Remediation Complete- Monitoring / Oil
Leasehold X X X
4436 Sepulveda Blvd. Clean / For Lease
X X X X
11198 Washington Place Case Closure Pending / Oil Leasehold
X X
11281 Washington Place Clean / For Sale
X X X X
11962 Washington Blvd. Clean / For Sale
X X X X
ATTACHMENT 3
4
August 15, 2010
Sol Blumenfeld
Assistant Executive Director
Redevelopment Agency
City of Culver City
9770 Culver Blvd.
Culver City, CA 90232
Dear Mr. Blumenfeld,
This letter is an expression of interest on the part of Olina Biofuels LLC, a
Los Angeles based biofuels marketer and retailer, in establishing a working
relationship with the City of Culver City. After our meeting with Michael
Pasternak and Josh Williams on Monday, August 9th, my business partners
and I wish to formally express our interest in working with The City of
Culver City Redevelopment Agency to establish the first fully dedicated
biofuels fueling facility in Los Angeles County.
According to the Southern California Biodiesel Users Group there are more
then 4,000 biodiesel users in the Los Angeles area that could consume
2,000,000 gallons of fuel each year. Unfortunately access to retail biodiesel
fuel in “traditional fueling” stations has become very problematic in
California due to certain State regulations. Olina Biofuels would like to
meet the market demand for biodiesel by working with the City of Culver in
developing one or more fueling facilities dedicated to the sale of sustainable
fuels, while meeting all State and City regulatory requirements.
Biodiesel is a clean burning alternative fuel, produced from domestic,
renewable resources such as used cooking oil, excess plant oils, animal fats,
and even new sources such as algae. Biodiesel is sustainable and contains
no petroleum, but it can be blended at any level with petroleum diesel to
create a biodiesel blend. Biodiesel blends from B5 to B99 can be used in
most compression-ignition (diesel) engines with little or no modifications.
Biodiesel is simple to use, biodegradable, nontoxic, and essentially free of
sulfur and aromatics.
ATTACHMENT 4
5Page 2
August 15, 2010
We would like to meet with you and your staff to explore how Olina and the
City of Culver City may work together to bring about the first fueling
facility dedicated to the sale of sustainable biodiesel fuels. Please contact
me at your earliest convenience at 310.800.8079 so we can discuss Olina’s
strategic plan and what the appropriate steps might be to implement the plan.
Thank you in advance for your consideration in this matter.
Sincerely,
______________________________
Fred Makapugay, CEO
ATTACHMENT 4|1013|