HomeMy WebLinkAbout09 - Sale of West Newport Library FacilityCITY COUNCIL AGENDA
ITEM NO. 9
BY ;�; iE 6f
CITY OF NEINP I .
CITY OF NEWPORT BEACH
OFFICE OF THE CITY MANAGER JAN 2 4
JANUARY 24, 1994
TO: MAYOR AND CITY COUNCIL
FROM: ASSISTANT CITY MANAGER
SUBJECT: SALE OF WEST NEWPORT LIBRARY FACILITY C- OYS-
ACTION: If desired, approve and authorize City Manager to execute a listing
agreement with Cannery Village Realty for the sale or lease of
6000 West Coast Highway.
BACKGROUND: The City Council approved the sale of this property in December
1992 for a price of $320,000. The property was appraised in September 1992 at a
value of $340,000 but a mistake in the appraisal was corrected to yield a value of
$325,000.
The property will be vacated on February 1, 1994, and there is an interested buyer.
However, before proceeding with this buyer it will be necessary to expose this property
to the general market.
DISCUSSION: Cannery Village Realty has submitted an excellent proposal
(available in my office) to market this property at a price of $329,000 with a 5%
commission. Sale at this price after expenses would net the Citj;, approximately
$305,000. To provide more bargaining space, staff recommends a listing price of
$339,000.
Cannery Village Realty and specifically Jim Jacobs have established an excellent
working relationship with the City based on their handling of the sale of 4210 River
Avenue. This sale netted the City a maximum fee but paid only a small commission to
the Realtor. Nevertheless the service from the agent was excellent throughout.
Furthermore, this brokerage is located nearby in West Newport and has excellent
experience in the area.
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The listing agreement will exclude the current interested buyer thus eliminating any
commission to Cannery Village Realty.
The market for commercial properties is very low, and if suitable bids are not received
it may be advisable for the City to consider leasing this property. Accordingly, the
proposed action includes entertaining proposals to lease the property. Preliminary
indications are that the City could net nearly $23,000 a year from such a lease.
RECOMMENDATION: Authorize the City Manager to execute a listing agreement
for the sale price of $329,000 with a commission of 5% or for lease of the property for a
price to be negotiated with a commission of 5% of the first five years rent.
Kenneth J. Delino
KJD:mb