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Staff Report PREPARED BY: ARN ANDREWS Assistant Town Manager Reviewed by: Town Manager, Town Attorney, Finance Director, and Community Development Director 110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832 www.losgatosca.gov TOWN OF LOS GATOS TOWN COUNCIL REPORT MEETING DATE: 10/02/2018 ITEM NO: 9 DATE: SEPTEMBER 27, 2018 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: REVIEW AND DISCUSS DISPOSITION STRATEGIES FOR 4 NEW YORK AVENUE AND PROVIDE DIRECTION ON PREFERRED OUTCOMES RECOMMENDATION: Staff recommends that the Town Council review and discuss disposition strategies for 4 New York Avenue and provide direction on preferred outcomes. BACKGROUND: 4 New York Avenue is a Town-owned property adjacent to Los Gatos High School and consists of approximately 75,000 square feet (sq. ft.), or 1.71 acres. The subject property is further identified as Assessor Parcel Number (APN) 529-27-024 and the land is currently zoned Resource Conservation. The site is an irregularly shaped parcel with a vacant 3,720-square foot building which was built in 1994. Due to the irregularly shaped nature of the property, previous appraisals have identified that large portions of the property are only suitable for low intensity uses. Appraisals estimate that approximately 47,000 sq. ft. of the southern area of the property has a lower suitable intensity of use and the remaining 27,000 sq. ft. northern portion of the land as already developed land area. On September 13, 2016, the Town Council declared 4 New York Avenue as surplus property and directed staff to pursue disposition options. Due to the synergies associated with the High School being the dominant land use in the area, staff engaged in direct negotiations with the School District. Ultimately the School District determined that they would only entertain acquisition of the property on a donation basis. Over the course of the year, staff has received PAGE 2 OF 4 SUBJECT: REVIEW AND DISCUSS DISPOSITION STRATEGIES FOR 4 NEW YORK AVENUE AND PROVIDE DIRECTION ON PREFERRED OUTCOMES DATE: SEPTEMBER 27, 2018 S:\COUNCIL REPORTS\2018\10-02-18\Venue - 4 New York Ave\Staff Report.docx 9/27/2018 3:12 PM BACKGROUND (Cont’d): expressions of interest for 4 New York Avenue from other parties. With the School District no longer an interested party, staff felt it appropriate for Council to re-evaluate options for disposition or repurposing of the subject property. DISCUSSION: As previously noted, staff has received expressions of interest from three parties currently (Attachments 1, 2 & 3) for use of 4 New York Avenue. The three proposals all have varying degrees of community benefit and may, or may not, have monetary benefit associated wit h them. Provided below is a summary of the three proposals for Council’s deliberation and consideration. Proposal #1 – Liverpool Football Club International Academy America – Bay Area (LFC IAA Bay Area) LFC IAA Bay Area is a 501(c)(3) organization based in Los Gatos that serves as a youth soccer club for ages five to 18 years. The organization is 6.5 years old and has grown from three players to over 600, supporting both boy’s and girl’s programs. The club offers financial aid to those in need, supports community events, and seeks to create a club that exists as a family for members of all ages, using soccer to bring everybody together. LFC IAA currently offers free lunch time soccer to eight elementary schools in Los Gatos and Fischer Middle School. In addition, they have staff on the boy’s and girl’s programs at Los Gatos High School. The organization has stated the purpose for the use of 4 New York Avenue as: “Our core mission is to provide soccer to all of the community and bring them closer together and while we do achieve this through many events we have a desire to create a stand -alone environment that people can continue to meet at, learn at and have a home . We have many outreach opportunities for the younger players in the community, but we have a desire to serve the middle school and high school age players through the following ways • College education: The application process, contacting schools and prep aration • Safe environment after school for children to attend where they can also study, use computers, seek advice, eat and wait for parents or guardians to collect them • To hold events on education and community service, bring in groups to meet and support them and show them how soccer can bring structure, happiness and more to their lives “ PAGE 3 OF 4 SUBJECT: REVIEW AND DISCUSS DISPOSITION STRATEGIES FOR 4 NEW YORK AVENUE AND PROVIDE DIRECTION ON PREFERRED OUTCOMES DATE: SEPTEMBER 27, 2018 S:\COUNCIL REPORTS\2018\10-02-18\Venue - 4 New York Ave\Staff Report.docx 9/27/2018 3:12 PM DISCUSSION (Cont’d): In addition, they have stated the desire to purchase the property either through a lease/purchase agreement or through obtaining a mortgage. Proposal #2 – Anne Roley Ms. Roley is proposing to utilize the building as the Los Gatos Health and Wellness Center with a strong focus on Social Emotional Learning, which she describes as vital to the success of our youth. Workshops and classes for adults and seniors would be offered after school hours, on the weekends, and during the summer to address the needs of the older population. The purpose of the Center would be to “provide residents of Los Gatos with a place to go for mental, emotional, and physical support so desperately needed to handle the stresses of our current culture. Programs that heal and teach people new ways of responding to difficult situations create a more cohesive and healthier community.” Ms. Roley’s letter of interest stated that if the “Town Council seriously considers my vision of a Health and Wellness Center, I will seek out support and assistance from the community to establish a team and develop a business plan.” Proposal #3 – KCAT KCAT TV15 is the public TV station and digital media center serving Los Gatos and Monte Sereno. KCAT TV15 programs and services include: professional video production for individuals, organizations and businesses, recording and broadcasting local government meetings, as well as classes, youth camps, and access to media tools, equipment, training, and low-cost studio facilities. In addition, KCAT offers a myriad of media-related programs ranging from video production classes, summer broadcast and movie camps, and filming community events (the Parade, graduation, Chamber of Commerce events, sports, etc.). KCAT also creates original TV content which offer hands-on opportunities for students to work on live studio productions, learn editing, and film on location. The organization has stated the purpose for the use of 4 New York Avenue as: • Half the property for KCAT TV15 - TV studios and Control Room - Production areas and Class Rooms • Half the property for Community Groups - Reception, open spaces and seating areas PAGE 4 OF 4 SUBJECT: REVIEW AND DISCUSS DISPOSITION STRATEGIES FOR 4 NEW YORK AVENUE AND PROVIDE DIRECTION ON PREFERRED OUTCOMES DATE: SEPTEMBER 27, 2018 S:\COUNCIL REPORTS\2018\10-02-18\Venue - 4 New York Ave\Staff Report.docx 9/27/2018 3:12 PM DISCUSSION (Cont’d): - Reception and Large Conference Room - Offices and work stations - Kitchen - Landscaped outside for camp KCAT is requesting to pay rent in the amount of $1 per year for use of the p roperty as part of a multi-year lease with re-negotiations after five years. CONCLUSION: Based on the staff report, Council deliberations, and public and proposer input, the Council should provide direction to staff to either continue evaluating some, or all, of the proposals. Alternatively, if Council determines that the unique nature of the property does not accommodate any of the proposed uses, Council can consider directing staff to sell the property for market rate. COORDINATION: This report was coordinated with the Town Attorney’s Office and Director of Community Development. FISCAL IMPACT: No fiscal impact at this time. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required. Attachments: 1. LFC IAA Letter of Intent 2. Anne Rowley Letter of Intent 3. KCAT Letter of Intent