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Purchase of Real Property Located at 2807 Newport Boulevard <br />for Relocation of Fire Station No. 2 <br />September 12, 2017 <br />Page 3 <br />New Location <br />Staff searched for larger properties in proximity to the current site, but no suitable <br />properties were for sale at the time. However, the McDonald's restaurant at 2807 Newport <br />Boulevard was closed, and a future retail project was advertised for lease at the site. Staff <br />contacted the property owner to determine if they were interested in selling the property. <br />The owners of the property purchased the site from McDonald's Corporation in June <br />2016. They planned to redevelop the site with a 6,000 sf retail center. When staff <br />contacted them in January 2017, they were open to discussing a purchase offer from the <br />City, as they had not yet started construction on the retail project. Staff began negotiations <br />in March 2017, and the property owners recently agreed to sell the property for <br />$4,000,000. <br />The property is approximately 0.3 miles from the existing fire station. The site is <br />considerably larger at 17,693 sf, and has street access on three sides including direct <br />access to both the north and southbound lanes of Newport Boulevard (Attachment D). <br />Emergency Services Response Time <br />Service response times must be evaluated in consideration of relocating Fire Station No. <br />2 to the McDonald's site. Staff requested Emergency Services Consulting International <br />(ESCI) determine the adequacy of emergency services response times and perform an <br />analysis to compare the coverage between the two locations, within a four minute and <br />forty second travel window (Attachment E). ESCI determined that the coverage changed <br />very little between the two locations, and the proposed site was a viable alternative to the <br />current station. <br />Appraised Values <br />Staff obtained an appraisal for the existing fire station site and an appraisal for the vacant <br />McDonald's site in April 2017. The McDonald's site appraised for $3,553,200 (Attachment <br />F). The appraiser calculated a 25 percent reduction in the current market value, due to a <br />20 -year deed restriction preventing food or beverage sales at the site. The existing Fire <br />Station No.2 site appraised for $2,325,000 (Attachment G). <br />26-3 <br />