TO:
Honorable Mayor and Members of the City Council
THROUGH:
John Jalili, Interim City Manager
FROM:
Quinn Barrow, City Attorney
Bruce Moe, Finance Director
SUBJECT:Title
Consideration of City's Option to Purchase Remaining Fifty Percent Interest in the Former City Manager's Residence Located at 2913 Pacific Avenue (City Attorney Barrow).
DISCUSS AND PROVIDE DIRECTION
Line
_________________________________________________________
Recommended Action
RECOMMENDATION:
Staff recommends that the City Council discuss and provide direction on the City's option to purchase the remaining fifty percent of the former City Manager's residence located at 2913 Pacific Avenue.
Body
FISCAL IMPLICATIONS:
The City currently maintains a fifty percent interest in the residence of former City Manager David Carmany and his spouse. The City also serves as the lender for the Carmanys' loan on their half of the property. If the City Council wishes to exercise its option to purchase the Carmanys' interest in the property, the value will need to be determined through an appraisal process outlined in the Tenancy in Common agreement (Attachment 1).
BACKGROUND:
Former City Manager David Carmany's employment contract provided for housing assistance. This arrangement is a common practice in cities where it is desirable to have the Manager live in the community, but where the cost of housing is high, as is the case in Manhattan Beach. The City had previously made this arrangement for a prior City Manager and a prior Police Chief (however, in both of those situations the City acted as lender only and did not have equity in the property).
DISCUSSION:
The housing assistance package provided to former City Manager Carmany included an equity sharing arrangement where the Carmanys and the City, both owned a 50% share of the property. Additionally, the City acted as the lender on the Carmanys' loan (see staff report dated January 18, 2011 - Attachment 2).
The or...
Click here for full text