REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution Declaring City-Owned Property Located at 1484 Kifer Road (Unilever) as Surplus Property and Authorizing the Sale of the Unilever Property in Compliance with Government Code Section 54220 et seq. and approval of Budget Modification No. 32
Report
BACKGROUND
The City owns one industrial parcel along the City's east boundary line at 1484 Kifer Road, commonly known as the Unilever Margarine Plant (as shown in Attachment 1). The Unilever site and building at 1484 Kifer Road was gifted to the City without consideration in 1979, subject to the terms and conditions of a thirty (30) year lease with owners of the margarine plant. The original 30-year lease was entered in December 1962 and provided for five successive 5-year extensions, with a termination date of December 31, 2017. The City and Unilever (current owner of the Margarine Plant) entered into an early lease termination agreement, effective October 31, 2016.
For several fiscal years, the City's 20-year Financial Plan included projected revenues from the sale of the Unilever property. This assumption was first included as part of the FY 2006/07 budget and adjusted, after a recent appraisal. The property was appraised in 2015 as part of the Civic Center Modernization Project with an estimated value of $11 million. Funds from the sale would be added to the City's General Fund Capital Improvement Reserve in accordance with current City policy. To prepare for a sale, the City would need to update its 2015 appraisal.
The Unilever site is now part of the Lawrence Station Area Plan (LSAP), adopted by the City Council on December 6, 2016. The LSAP allows industrial and research and development uses on the Unilever site, up to 50% floor area ratio (FAR). In addition, the City Council has directed staff to evaluate additional opportunities for allowing residential development in the LSAP area; the Unilever site could be considered for residential or flexible mixed uses....
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