TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Marisa Lundstedt, Community Development Director
Laurie B. Jester, Planning Manager
SUBJECT:Title
Receive Status Report on Rite-Aid Property, Located at 1100 Manhattan Beach Boulevard at Sepulveda Boulevard; Review and Discuss the Options; Provide Direction to Staff to Seek an Inspection Warrant Should Rite Aid Not Grant Interior Access to the Building for a Site Inspection (Community Development Director Lundstedt).
RECEIVE REPORT; DISCUSS AND PROVIDE DIRECTION
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council accept the staff presentation, review and discuss the options, and provide direction to staff to seek an inspection warrant should Rite Aid not grant interior access to the building for a site inspection.
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FISCAL IMPLICATIONS:
No fiscal implications are anticipated.
BACKGROUND:
The City Council raised concerns about the condition of the vacant site, leased by Rite Aid, on the southeast corner of Manhattan Beach Boulevard and Sepulveda Boulevard, and requested that staff place an item on the agenda for discussion.
In February 2008 the City Council approved, on appeal, a new 13,000 square foot Rite Aid at the corner of Manhattan Beach and Sepulveda Boulevards. With this location on two major commercial streets with almost 100,000 vehicles per day passing by, the site is a key gateway into the City. The site, which used to be a service station, was demolished to make way for the new construction in 2009. The adjacent 3-story liquor store, fitness studio and office building, which is also part of the site but separate ownership, has also been vacant since 2009. The site is regularly maintained and City Code Enforcement staff proactively monitors the site to ensure that there are no weeds or graffiti and that the site is secure. The vacant portion on the corner is secured with a perimeter fence that has a wrap with Historic Manhattan Beach photo images installed in the summer of 2014. The vacant liquor store and office building on the south portion of the site is secured, however there is vehicular access to the site off of 11th Street. The surface parking lot on the site appears to be used by the adjacent Providence Little Company of Mary Medical Institute located across 11th Street to the south, as well as other users. Rite Aid has a 50 year ground lease with the two property owners for the site.
A number of people have contacted Rite Aid to develop the site over the past few years and those interested parties have indicated to the City that Rite Aid did not have an interest in subleasing or developing the site. This is consistent with what Rite Aid has indicated to staff over the years in the past. The Use Permit and height Variance for the site expired in 2010, so any new development would need to go through a new Use Permit process.
DISCUSSION:
Given the past history of the Rite Aid site, the City Manager and Community Development staff have taken proactive measures to reach out to Rite Aid to facilitate development of the site. Initial discussions, as noted below, indicated that Rite Aid was interested in developing the site, however, in recent weeks, staff has attempted to reach out to Rite Aid on numerous occasions with no response.
As a result, staff has taken more aggressive efforts and actions as noted below, including exterior site inspections, and an attempt to schedule an interior site inspection. In addition, and as referenced in the information, the recommended remedy would be to request an inspection warrant if staff is unable to access the interior of the site.
Meetings
The City Manager and Community Development staff met with the Senior Real Estate Director for the Western Division of Rite Aid in March to get an update on the site. The Rite Aid representative indicated that since 2010 they have been focusing on remodels and have had only one net new location. With the improved economy and a number of other factors, they are now interested in possibly pursuing development of the site and will be discussing options with their internal real estate committee. Their store prototype and business model has changed over the past several years and they are interested in possibly a new layout with a drive-thru, a small coffee-tea-pastry component, a Redi-clinic, which is basically a limited health care clinic, and full alcohol sales for off-site consumption only.
City staff indicated to Rite Aid that we would work closely with them to evaluate any proposal submitted and assist them through the required Planning Commission Use Permit public hearing process. Staff has reached out to Rite Aid several times since the March meeting and has not received an update from Rite Aid on discussions with their internal real estate committee, and nothing has been submitted by Rite Aid.
Site Inspections
Staff has been regularly monitoring the site, it was recently added to our "hot spot" list with proactive daily inspections and staff is committed to continuing this monitoring. Staff was able to reach the Rite Aid construction manager and requested conducting an on-site inspection of the site.
The City's Code Enforcement Officer, Structural Engineer, Building Inspector and Fire Marshall were able to inspect the exterior of the site for structural integrity, safety issues and Code compliance. A number of concerns were identified by staff including no electrical or water (fire sprinkler) service to the building, a broken window and dry rot, water damage and termite damage on a portion of the structure that overhangs the property line over the Sepulveda Boulevard sidewalk. The building has a number of non-conformities that could potentially be safety issues including windows on portions of the building with zero setback from the property line, weak structural elements on the first floor that are not designed to support the two floors above in the event of an earthquake, and portions of the building overhanging the public sidewalk.
Staff has arranged access for an interior inspection of the building. If staff has that opportunity, staff will provide an oral update at the Council meeting. If staff is unable to gain interior access we would recommend that the Council authorize staff to pursue obtaining an inspection warrant.
Public nuisance- Manhattan Beach Municipal Code
Section 9.68.010 of the Manhattan Beach Municipal Code (MBMC) defines a Public nuisance as:
"Anything injurious to health, indecent or offensive to the senses, or an obstruction to the free use of property, including but not limited to the conditions listed below, so as to interfere with the comfortable enjoyment of life or property by a neighborhood or by a considerable number of persons in the City, irrespective of whether the annoyance or damage inflicted upon individuals is unequal, shall constitute a public nuisance. "
Section 9.68.020 of the code also states that the following conditions are unlawful and are examples of what may constitute a public nuisance: unsafe or substandard buildings, dry rot, warping, or termite infestation, buildings that increase the danger of fire or other calamity because of deterioration, defective component parts of the electric, gas, water, or plumbing systems, unsecured windows and other openings into vacant structures, or any other condition which adversely affects the public health, welfare, and safety.
Based upon the recent exterior inspection, there may be grounds for the Director to issue a written notification requesting that the condition be abated, which is the first step of the nuisance abatement procedure. However staff would like to inspect the inside of the structure prior to issuing a letter.
Remedy Options and Next Steps
The City Council expressed concerns with the condition of the site and requested a discussion of possible approaches and remedies. Possible actions that the Council could direct staff to pursue would be to first work with the City Attorney to obtain an inspection warrant or other method to inspect the interior of the building, if needed. And second to evaluate various options to remedy the site conditions including the possibility of utilizing the City's nuisance abatement regulations.
CONCLUSION:
Staff recommends that the City Council accept the staff presentation, review and discuss the options, and provide direction to staff to seek an inspection warrant should Rite Aid not grant interior access to the building for a site inspection.