Consideration Whether to Exercise the Option To Purchase 11054 Washington Boulevard City of Culver City California Redevelopment Agency Agenda Item Report Meeting Date: 04/21/08 AGENDA ITEM: Consideration of an Option To Purchase 11054 Washington Boulevard Contact Person/Dept.: John Fisanotti Phone Number: (310) 253 5767 Item Number: A 1 Fiscal Impact: Yes X No General Fund: Yes No X Public Hearing: Action Item: X Attachments: X Public Notification: Mr. Richard Tapp and the Lloyd Family Trust (04/07/08); Master Notification List (04/17/08). Department Approval: Sol Blumenfeld (4/04/08) Fiscal Impact Review: Jeff Muir (04/17/08) Executive Director Approval: Jerry B. Fulwood (04/17/08) RECOMMENDATION: Staff recommends the Culver City Redevelopment Agency ( The Agency ) exercise its Option to purchase the commercial property at 11054 Washington Boulevard. BACKGROUND: On December 28 2006 the Agency acquired the site of the former Pleasantview Home at 11056 Washington Boulevard. The property was purchased on terms and there is a payment of $1 550 000 plus interest at 5.5% due three years from the date of purchase (December 28 2009). On March 5 2007 the Agency approved an Option Agreement to purchase the adjoining property at 11054 Washington Boulevard owned by Mr. Richard Tapp. A copy of the Option Agreement is attached as Attachment No. 1. Under the terms of the Agreement the Agency and Tapp opened escrow and the Agency deposited the Option payment of $60 000. The Option period is for 14 months starting from March 6 2007. Therefore the Agency has until May 6 2008 to exercise the Option. If the Agency exercises the Option then the $60 000 option payment shall be applied to the purchase price of $1 152 000. If the Agency elects to let the Option expire then the Option payment is non refundable and is compensation payable to Mr. Tapp for keeping his property off the market for 14 months. A decision whether to exercise the Option and go forward with the purchase is needed f...
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