News

City looking to acquire downtown property for $2 million-plus

Foothill bicycle plan, I-580 overpasses also on tap for Olson's final meeting

The Pleasanton City Council will consider signing off on the purchase of the commercial property at 4363 and 4377 First St., which includes these two buildings. Tenants would be offered relocation compensation. (Photo by Jeremy Walsh)

The Pleasanton City Council will be asked Tuesday to formally sign off on terms for the city to acquire a commercial parcel on First Street for up to $2.34 million.

Though how the city would use the property next to Lions Wayside Park and the Firehouse Arts Center in the future would be subject to more public deliberations, plans would almost certainly include razing the two buildings once the tenants relocate and offering more public parking downtown, according to assistant city manager Brian Dolan.

"The city's interest in acquiring the site stems from its adjacency to the Firehouse Arts Center's parking lot, the direct pedestrian access to Lions Wayside Park, potential to create a connection between First Street and the Firehouse Arts Center's parking lot, the potential to increase public parking in the downtown and the opportunity to improve the appearance of highly visible property along a main arterial at the entrance to downtown Pleasanton," Dolan wrote in his staff report to the council.

The owners of the 18,200-square-foot parcel at 4363 and 4377 First St. (Ianson Holdings, LLC and Malakoff & McIntyre, Inc.) have been aiming to sell their property, with the goal of closing escrow by the end of the year, Dolan said.

Accordingly, the council talked in closed-session with city staff in August and again Election Night and supported City Manager Nelson Fialho entering into a contingent agreement with the property owners so escrow could close by Dec. 31, Dolan said. One of the terms is that the council consider the final agreement in a public meeting.

Another term is that each of the six tenants currently under lease at the property must enter into relocation agreements with the city to free up the two buildings, which are nearly 50 years old.

Those tenants are Express Liquor, Yan's Massage, Roots of Eastern Medicine (acupuncture), Team EdServe (marriage and family counseling), Urban Realty Services and a leased storage unit. Each could be eligible for financial help from the city to help with relocation costs.

"Based on the terms of the leases with the existing tenants and requirements of state law, it is anticipated that the tenants generally will vacate as leases expire or are not renewed, and the buildings will eventually be removed," Dolan said.

The acquisition costs would include $2 million for the property purchase, $2,650 for environmental review, $32,500 to hire a relocation consultant and relocation expenses for the tenants that could total between $92,500 and $310,000, according to Dolan. Building removal and interim site maintenance would cost another estimated $70,000.

The costs would be paid from the city's Lions Wayside Park renovation project budget, which has about $4.5 million in funding in the city's capital improvement program. The Lions Wayside project would then be reimbursed in the 2019-20 budget year.

The property purchase agreement is listed among the council's 13-item consent agenda, a collection of items deemed routine and voted upon all at once unless pulled for separate individual consideration.

The regular council meeting is scheduled to begin at 7 p.m. Tuesday in the council chambers at the Pleasanton Civic Center, 200 Old Bernal Ave.

In other business

* Council members will consider adopting the city's Foothill Road Bicycle Corridor Plan, which outlines short- and long-term bicycle improvements along the major western Pleasanton roadway.

* They will also discuss a new plan for improving conditions for bicyclists and pedestrians on Interstate 580 overpasses.

* In closed-session at 6:45 p.m., the council will confer with the city's legal counsel about the pending lawsuit filed by Pleasanton Citizens for Responsible Growth challenging the Johnson Drive Economic Development Zone and proposed Costco warehouse store.

* Tuesday will mark the final full meeting for Arne Olson on the City Council. Olson, who opted not to seek re-election this fall, will officially step down when Councilwoman-elect Julie Testa takes the oath of office during a special meeting Dec. 11.

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Comments

11 people like this
Posted by Rob
a resident of Birdland
on Dec 4, 2018 at 9:34 am

I hope there will be some form of free city parking when this property is redeveloped, and not a couple of five-story condo buildings. I trust the new City Council will do the right thing.


7 people like this
Posted by Why Not Stack and Pack!
a resident of Another Pleasanton neighborhood
on Dec 4, 2018 at 1:09 pm

That's what they want to tear down the Library and Police buildings for- to enrich Builders and Developers!

They could claim it is near a bus stop- on Main,
and point to how nice the park would be for the future residents- who probably would not have any open space of their own. Of course they would limit the amount of parking provided, like building on the BART parking lots, so people could compete for the few parking spaces left.


Like this comment
Posted by Robert S. Allen
a resident of Livermore
on Dec 4, 2018 at 2:15 pm

Enhance parking at BART by adding major parking by I-580 at Isabel and at Greenville, and adding a freeway express bus connecting with every train until Valley Link gets built. Low cost, effective, no AB 2923 mal-planning.


7 people like this
Posted by Mark M
a resident of Old Towne
on Dec 4, 2018 at 3:14 pm

It is highly unlikely that the city would or even could develop the property on 1st Street. Those two buildings are eye sores and have attracted the wrong kind of people next door to a city park. The fact that they could build additional parking spots for people wanting to use downtown businesses, the Art Center or the park is a huge plus for our downtown. Now let’s get going on the much anticipated improvements to Wayside Park and get it done while we are still young enough to enjoy it!


5 people like this
Posted by Map
a resident of Del Prado
on Dec 4, 2018 at 5:52 pm

Some posters keep forgetting that we taxpayers did not pay extra taxes all these years to have shuttle buses from Livermore to Pleasanton Bart, enough of the easy shortcuts, give us the promised stations, the longer trains and quit selling off the present and future parking lots that our taxes paid for


7 people like this
Posted by Glenn L Martin
a resident of Sycamore Place
on Dec 4, 2018 at 9:51 pm

This is a bad time to buy real estate - we are in an overpriced market and have a good chance of a recession in the next few years. I wouldn't pay 2 million for that place if this were my money. I'd wait for a few years and expect to get a better deal.


Like this comment
Posted by David
a resident of Alisal Elementary School
on Dec 5, 2018 at 7:03 pm

David is a registered user.

Like the newly renovated Kotttinger senior apartment complex, build new one and two story senior apartments and relocate the seniors now in the dilapidated units on Railroad Avenue and Division Street. Use the Railroad/Division property (across from the Firehouse) for addition downtown parking. We need both senior housing and parking in downtown.


Like this comment
Posted by Pro-Law
a resident of Another Pleasanton neighborhood
on Dec 9, 2018 at 3:48 pm

@Glenn L Martin - but isn't that the million dollar question. If someone knew when the market would go up and down they would be filthy rich. The thing is no one knows and in a couple years it could be half the price or a couple years it could be double.


Like this comment
Posted by Pete
a resident of Downtown
on Dec 9, 2018 at 7:10 pm

Pro,

Currently prices are dropping and time on market is growing. I suspect we will see contraction for some tone because of reductions in SALT.


Like this comment
Posted by Pro-Law
a resident of Another Pleasanton neighborhood
on Dec 10, 2018 at 12:04 am

@Pete,

So, when is it the bottom of the market? What is the day/price? The point of my post is we don't know either way.


Sorry, but further commenting on this topic has been closed.

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