City Acquires Office Building Across from City Hall

Submitted by Laguna Beach City Manager John Pietig:

The City of Laguna Beach has entered into an agreement to purchase a 4-unit office building located at 479 Ocean Avenue in downtown Laguna Beach.

The property has 2,400 square feet of leasable space on a lot of 3,230 square feet.  The property is located directly across from City Hall on the corner of Forest Avenue and Ocean Avenue.  After completing its due diligence and the escrow process, the City expected to acquire title to the property on July 18, 2013.  The purchase price of the property is $1,425,000.

The City has taken the opportunity to purchase the building because of its close proximity to City Hall.  Approximately 15 City employees, supplies, and equipment can be relocated from temporary trailers and satellite structures currently located behind City Hall to the new building and some existing space at the City Corporation Yard. The transfers will likely occur in about next two years.  Acquiring the building will allow the City to house employees and eliminate the need to build a new building at the ACT V parking lot.  Construction of a new building at the ACT V parking lot would eliminate twenty-five parking spaces, is estimated to cost $2 million, and would add about a year to the timeline for the Village Entrance project.

Funding for the acquisition will come from monies set aside in the Capital Improvement Fund to relocate employees displaced by the Village Entrance Project.

The City Council will consider final actions related to the acquisition of 479 Ocean Avenue at their June 18, 2013 regular meeting which begins at 6:00PM in the City Council Chambers located at 505 Forest Avenue, Laguna Beach.