HomeMy WebLinkAbout07 - West Newport Library, 6000 W. Coast Hwy.3Q C-0 00
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CLOSED SESSION
ITEM NO.
CITY OF NEWPORT BEACH
OFFICE OF THE CITY MANAGER
FEBRUARY 14, 1994
TO: MAYOR AND CITY COUNCIL
FROM: ASSISTANT CITY MANAGER
SUBJECT: WEST NEWPORT LIBRARY, 6000 W. COAST HWY.
ACTION: Provide direction to staff regarding the sale of this property to
either James and Patricia Spentzos or Ninfa O'Brien and
Partners.
BACKGROUND: The Council approved the sale of this property in December 1992
for a price of $320,000. The proporty was appraised in September 1992 at a value of
$325,000. The Council approved a listing agreement on January 24, 1994 at a price
of $339,000.
On February 9, 1994, staff received an offer from the Spentzos for $315,000 with the
contingencies that the property be approved as a restaurant and that the sale include
nine adjoining parking spaces. The buyer provided a $5,000 deposit toward a 20%
down payment and will need to seek an 80% loan. Financing is a contingency of the
offer. The offer also included a requirement that the City provide a survey of the
premises. Staff made a counter-offer of $325,000 with no assurances of project
approvals other than those permitted under current building and zoning codes. Staff
also included a provision indicating that the nine adjoining spaces were not owned or
controlled by the City. The buyer accepted this counter-offer.
On February 11, 1994, staff received an offer of $315,000 from Ninfa O'Brien who was
excluded from the listing agreement because of the previous interest in the property.
Her offer is all cash with no contingencies and only a 4% commission. Staff countered
with $325,000, which was accepted.
Page 2
DISCUSSION: The Spentzos are reportedly related to the owners of the adjacent
Cappy Restaurant and plan to use the building as some sort of complimentary
specialty food use. Their review of the City's zoning code is that there would be
sufficient parking if the building was combined with the Cappy's property.
The net to the City after paying a 5% commission and other fees will be approximately
$305,000. The requested survey can be accomplished by the Public Works
Department.
Ninfa O'Brien has a partner who needs an office for a small business, and Ninfa will
also move her real estate office to the property. Her offer will net the City
approximately $4,000 more than the other.
RECOMMENDATION: These are reasonable offers consistent with the appraisal.
Staff recommends that both offerors be afforded one more opportunity to bid, and that
the Council authorize the City Manager to execute the sale to the party who offers the
highest net amount to the City.
Kenneth Y dejfi
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