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<rFOR��P CITY COUNCIL STAFF REPORT
DATE: JANUARY 16, 2016 NEW BUSINESS
SUBJECT: PROVIDE DIRECTION TO STAFF REGARDING POTENTIAL ACQUISITION
OF BUILDING LOCATED AT 441 S. CALLE ENCILIA (APN 508-094-015) FOR
USE BY ENTITIES PROVIDING SERVICES TO HOMELESS INDIVIDUALS
AND FAMILIES.
FROM: David H. Ready, City Manager
BY: Community & Economic Development Department
SUMMARY
Guidance from the City Council is requested in the allocation of staff resources. A building in
moderate state of disrepair is available to the City at a greatly reduced price. In order to
consider using the structure for offices and provision of services to homeless persons, an
investment of staff time and consulting services would be necessary to thoroughly investigate
the facility, assess the structural and cosmetic improvements needed, identify a full range of
funding opportunities, and negotiate a purchase agreement. Before expending the staff time
necessary to investigate this potential acquisition and rehabilitation project, Staff would like to
ascertain the interest of City Council members in such an undertaking.
RECOMMENDATION:
1. Direct staff to initiate investigation, concept development, and full cost estimates for
acquisition, renovation, and maintenance of the subject property.
2. Authorize the City Manager or his designee to enter into negotiations to acquire the
subject property. (Staff would return to the City Council for approval prior to execution of
a Purchase and Sale Agreement.)
STAFF ANALYSIS:
The recently -created Homelessness Task Force has identified a need for a centrally -located
facility from which agencies and non-profit organizations can provide services to homeless
persons and those in danger of becoming homeless.
Eisenhower Medical Services owns a building located at 441 S. Calle Encilia and has offered it for
sale to the City at a greatly reduced price. Despite the attractive offer, such an acquisition would
carry a price for renovation, maintenance, and operation of the building, and these costs should
be fully investigated before action is taken. The proposed use would also require public hearings
for a Conditional Use Permit, and no measure has been taken of neighborhood receptivity to the
concept.
ITEM NO. b
City Council Staff Report
(January 13, 2016) — Page 2
441 S. Calle Encilia Property Acquisition
The building was constructed in 1978, and has been vacant for at least five years. During this
time, it has been vandalized fairly extensively. The owner reports that the electrical system has
been stripped, but that the air conditioners and roof are relatively new. The building does not
meet current standards for accessibility; the parking lot is deteriorated; and the landscaping is
dead. The assessed valuation of the building is approximately $1.5 million, and it is about 10,000
square feet in size, situated on a .92 acre parcel. The parcel belongs to an Ague Caliente Band
of Cahuilla Indians allottee, and the land is leased from the allottee.
A considered investigation of this opportunity would involve:
• A condition inventory survey by qualified professionals
• Working with various agencies and non-profit organizations to identify appropriate building
users and their needs
• Identification of all work required to bring the structure into compliance with building and
accessibility codes, and to subdivide the building into tenant spaces for various users
• A detailed cost estimate of the necessary renovation work
• Identification of costs to secure the premises and to maintain the property until such time
as construction work would begin
• Identification of ongoing building lease, maintenance, and operations costs
• Researching funding opportunities including grants, charitable fund-raising, and City
monies
• Negotiation of the price and terms of purchase and of the lease of the underlying property.
FISCAL IMPACT:
The cost of this investigation is likely to be $15,000 to 25,000 for the professional services
needed to perform the condition inventory survey, prepare conceptual floor plans, and develop
cost estimates. No money has been budgeted in the current fiscal year for this work; an
appropriation of unobligated General Fund reserves would be required.
Lauri Aylaian, Director of Community & Economic Development
David H. Ready, City Manag�
Attachments:
1. Site Plan
2. Interior and Exterior Photos
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441 S. Calle Encilia — Interior Conditions
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