Resources have been implemented since adoption of the City’s 2021 Comprehensive Strategic Plan to Address Homelessness (CSPAH), which serves as a five-year roadmap to identify pathways to connect homeless individuals to resources and programs. A few notable action items are summarized below:

In recent months, efforts to identify a suitable property for a future navigation center has been significantly challenged due to limited real estate inventory. After extensive brokerage engagement, an off-market property located at 13871 West Street and within the City’s homeless shelter overlay zone was identified. The property sits on a 0.41 acre or approximately 18,166 square foot lot. It is developed with two adjoining industrial structures totaling 11,363 square feet. The primary building is 9,653 square feet and recently rehabilitated. An adjacent smaller building is 1,774 square feet. Per the Assessor’s mapping, the Assessor Parcel Number is 100-591-08.

Staff received Council direction to proceed with negotiations towards property acquisition of 13871 West Street at the August 9, 2022 meeting. To that end, property acquisition negotiations initiated with Ashwill Associates, on behalf of the property owner (West St Investments LLC). The terms of the Purchase Agreement and Escrow Instructions (Attachment No. 2) outlines the negotiated purchase price of $5,600,000. This purchase price has been confirmed by a Fair Market Value appraisal prepared by Vanguard Realty Advisors. The escrow period is anticipated to be approximately six (6) months upon execution date of the Purchase Agreement and Escrow Instructions.  Staff will be working through a number of due diligence items including: further site assessment, final schematic design, project scope development, architectural plans, along with finalizing funding commitments with the cities of Fountain Valley and Westminster.

Provided is a general overview of additional action items to be completed:

• Project Scope: Further refinement of the Project Scope for the Central Cities Navigation Center will be undertaken in the next 60 days. A preliminary schematic plan has been developed. (Attachment No. 3)  In concept, the proposed navigation center is anticipated to support 80-100 individuals experiencing homelessness within the participating Central SPA cities. The navigation center will be a referral-only based facility with managed and controlled (transportation) access in and out.

• Service Provider: A formal Request for Proposals (RFP) will be released in mid-September 2022 for solicitation of a service provider for the Central Cities Navigation Center operations. Selection of a preferred service provider for the Navigation Center prior to construction is recommended.

• Professional Architectural and Engineering Plans: Given priority of advancing the navigation center is in the best interest of public, health and safety, initiating work associated with design development plans and construction documents is critical to project delivery. Borders Architect brings extensive experience in providing architectural services for municipalities, and has successfully completed several navigation center projects including delivery of design development and construction documents for cities of Costa Mesa (Costa Mesa Bridge Shelter/70-bed site), Fullerton (Fullerton Navigation Center/90-bed site) and Santa Ana (Carnegie Navigation Center/200-bed site). It is recommended that City Council find that it is in the best interest of the City to waive the bidding requirements per GGMC 2.50.060.G and approve an award of contract to Borders Architects in the amount of $304,000 to complete the design development plans and construction documents for Central Cities Navigation Center. (Attachment No. 4)

• Project Funding: Concurrently with funding commitment by the County of Orange, staff is finalizing terms to the Tri-Cities MOU Memorandum of Understanding (MOU) with the cities of Fountain Valley and Westminster for operation and funding of the Central Cities Navigation Center.

In closing, it is recommended that the City Council approve the Purchase Agreement and Escrow Instructions with West St Investment LLC for acquisition of 13871 West Street by the City in the amount of $5,600,000, and further direct staff to advance implementation of the Central Cities Navigation Center project.

Funds have been budgeted in the Biennial Budget for FY 2021-2022 and FY 2022-2023 for the Navigation Center project.

It is recommended that the City Council:

• Adopt a Resolution to authorize approval and execution of the Purchase Agreement and Escrow Instructions with West St Investment LLC for acquisition of 13871 West Street by the City in the amount of $5,600,000, and an amount of $50,000 for escrow, title and broker related costs; (Attachment No. 5)

• Authorize the City Manager to execute a Professional Services Agreement with Borders Architect in the amount of $304,000, and make minor modifications thereto as needed; and,

• Direct staff to accelerate advancement of the Central Cities Navigation Center, as appropriate.