Tracking the future
COLORADO AVENUE — One of the few remaining, under-developed parcels in downtown will soon be added to City Hall’s real estate portfolio at a cost of more than $35 million.
The City Council voted unanimously on Tuesday to purchase more than 104,000 square feet of land currently owned by Sears Roebuck and Co., giving elected officials and residents more power in which to shape the future of downtown.
The area is undergoing a major reconstruction as part of the Civic Center Redevelopment Plan, a $120 million overhaul of downtown that would serve as a connection between the Third Street Promenade, a renovated Santa Monica Place mall, the pier and Main Street.
Council members said the property, which is currently home to a Sears auto shop, will serve as an anchor downtown, with development at the site tailored to support a more walkable, pedestrian-friendly environment.
City officials are discussing the possibility of locating a light-rail terminus at the site, as well as affordable housing, parking and supportive retail, said Miriam Mack, the city’s economic development manager.
There is hope that downtown will be served by the Exposition Light Rail line, and that the Sears property will serve as a major transit hub.
“That underutilized corner is a keystone of a future mass transit-oriented downtown,” said Councilman Kevin McKeown. “Our opportunity to bank the land while allowing Sears to continue serving the community for several years means that when light rail arrives, our downtown will be ready for it.”
As part of the deal, Sears’ auto shop will remain in operation at the site for three years upon completion of the sale, with two automatic renewals of one year each, according to a city staff report. The lease would be subject to termination by either party with 90 days notice.
Plans for the rail line are still preliminary, though more than $505 million has been set aside for the first phase, which goes as far as Culver City and is scheduled to be completed in 2012. No money has yet been earmarked for the Santa Monica extension.
City Hall’s inclusive offer includes the acquisition of the property, relocation, loss of good will and severance damage. That means, because Sears operates a business on the property, the deal would waive any claims Sears could seek for additional compensation, Mack said.
Chris Brathwaite, a spokesman for Sears, confirmed the deal was on its way to escrow, but could not comment further on the future of Sears in Santa Monica.
The company still operates a retail store adjacent to the auto-shop, and there are no plans at this time to relocate, Brathwaite said.
The deal for the 402 Colorado Ave. site has been in the works since 2003.
“There is no doubt that this is a very important and much needed purchase,” said Councilman Herb Katz, an architect who envisions a light-rail terminus at the site along with mixed-use development that will serve as an unofficial demarcation of downtown’s southeastern boundary.
“It is in the city’s best interest to scoop up important pieces of land like this whenever we can, because land isn’t going to get any less expensive in the future, and it allows us more flexibility in what we want to see developed,” Katz said.
Originally published in the Santa Monica Daily Press print edition on June 16, 2006. Read the original PDF.