The Garden Grove Agency for Community Development (“Former Agency”) acquired the Properties for the purpose of conveying and developing an upscale hotel and related amenities at the northwest corner of Harbor Boulevard and Twintree Lane. The Properties were transferred to the City pursuant to the Long Range Property Management Plan after compensation agreements were executed with the taxing agencies. On April 9, 2013, the City of Garden Grove  and the Developer negotiated the terms of a hotel development agreement entitled, “Grove District Resort Hotel Development Agreement” (“Resort Agreement”) for the proposed development of Site “C” (the “Project”). Pursuant to the Resort Agreement, the City is to demolish all site improvements prior to the conveyance of the Properties to the developer.

The Properties have deteriorated rapidly since they were acquired. The Properties have been repeatedly vandalized due to the fact that they have remained vacant for an extended period of time. The Properties are in poor condition and pose an immediate health and safety concern to the surrounding neighborhood and are a liability to the City.

Section 2.50.070 of the Garden Grove Municipal Code authorizes the City Council to proceed with the repairs of a public facility without adopting plans, specifications, working details, or notice inviting bids in cases of emergency. The structures were inspected by Building Division staff and the Chief Building Official has issued an order to demolish the structures immediately (see Attachment), constituting an emergency situation.

Prior to the demolition of structures, all asbestos containing material (“ACM”) must be removed as identified by an asbestos survey. An Asbestos and Lead Abatement Services Contract was executed with Edgar Gonzalez in the amount of $49,000. At the time of asbestos abatement, significant amounts of ACM was discovered in all of the Properties. The additional ACM was located in areas that were inaccessible to the asbestos surveyor during the initial inspection. The removal of the additional ACM will cost an additional $47,000.

There will be no impact to the General Fund. The project will be paid from the Economic Development Fund/Package: 106/8850 in the amount of $47,000.

Based on the foregoing information, staff recommends that the City Council:

• Adopt the attached Resolution approving the Amendment to the Asbestos and Lead Abatement Services Contract with Edgar Gonzalez increasing the contract amount by $47,000 for removal of asbestos containing material at 12302 Harbor Boulevard, 12511 Twintree Lane, 12531 Twintree Lane, 12551 Twintree Lane, and 12571 Twintree Lane, in Garden Grove.

• Authorize the City Manager to make minor modifications if necessary to do so.