17422 Murphy Avenue Purchase Agreement
Transcript of 17422 Murphy Avenue Purchase Agreement
Overview• Unique opportunity to
acquire an asset that solves pressing Civic Center space planning needs
• Nearby industrial office/warehouse building is available for purchase
• Additional space will allow for 10 years of growth• Will allow time for staff to identify resources to build
a new police station
Granite Court
Kelvin Apts
360 FusionResidences on Jamboree
17422 Murphy
Life Storage
Storage WestSan Diego Creek
Property Profile• Building is 27,187 square feet
– 11,498 sf office
– 2,363 sf mezzanine
– 13,326 sf warehouse
• Built in 1975; renovated in 2014
• Outstanding condition• 10-minute walk from City Hall
CDBG Capital ProjectsCommission
RecommendationCity of Irvine
Community Facilities ADA $ 73,700
City of IrvineLakeview Senior Center $ 767,850
City of Irvine Residential Rehabilitation Program $ 67,699
CDBG Capital Total $ 909,249Driveway
Driveway
Warehouse
Offices
Loading Dock
Entrance
Mur
phy
Ave
Conference Room
SecurityGate
San
Die
go C
reek
Storage West
Life Storage
Proposal• Public Safety Divisions to
relocate (28 people)– Animal Services
– Regulatory Affairs
– Emergency Management
– Office of Professional Development
– Office of Professional Standards
• Primarily internal support staff will work normal business hours
• Vehicles to relocate (48 total vehicles)– Five large footprint vehicles
– 43 fleet and employee vehicles
• Vehicles will not activate lights and sirens from Murphy location
Terms• Negotiated sales price is
$7,585,000
• $50,000 deposit due from City at signing
• City has 45-day due diligence period
– Environmental review
– Building, structural and termite inspections
– Evaluate anticipated operating costs
• After due diligence period, deposit increases to $100,000
• Deposit will be credited toward purchase price
• Seller has up to two 30-day escrow extension options
• Seller has up to 14-month leaseback option
Anticipated ImprovementsTotal anticipated cost is $1.6 million• At Murphy
– Earthquake retrofitting
– Building security
– Office reconfiguration
– Warehouse reconfiguration
– IT infrastructure
– New small locker facilities
– Cubicles and office furniture
• At City Hall– Expand men’s locker room
– Office reconfiguration
Financing• Purchase price to be
financed from the Asset Management Plan (AMP) fund balance
– Balance is $50.5 million
• Will be repaid with a fully amortized 10-year internal note
– Repaid from the General Fund and leaseback rental revenue
• Anticipated loan payment is $807,000 per year
• Anticipated rental revenue is $304,494 for 14 months
• Proposed financing will not compromise funding of previously identified City Council priorities
AMP Balance
$50.5
$33.6
$56.8
$0
$10
$20
$30
$40
$50
$60
Millions
Pension Pay Down PlanPension Pay Down PlanLoanLoan
Loan RepaidLoan
Repaid
Benefits• Eases overcrowding at Civic Center• Opens parking in back and public lots at Civic Center• Provides secured parking for high value vehicles• Provides potential new community room in the IBC• Extends capacity at Civic Center for 10 years