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.