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CITY OF <br />NEWPORT BEACH <br />- City Council Staff Report <br />June 9, 2015 <br />Agenda Item No. 22 <br />TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL <br />FROM: Kimberly Brandt, Community Development Director — (949) 644-3226, <br /> <br />PREPARED BY: James Campbell, Principal Planner <br />PHONE: (949) 644-3210 or <br />TITLE: Balboa Theater - Notice of Change of Intended Use and Sale, Located at 707 East <br />Balboa Boulevard <br />ABSTRACT: <br />The Balboa Theater was acquired in 1998 by the City using Federal Community Development Block Grant <br />(CDBG) funds. The property is located at 707 East Balboa Boulevard in Balboa Village. The City Council <br />has expressed a desire to dispose of this underperforming asset. Federal Regulation 24 CFR §570.505 <br />requires the City to provide notice of, and opportunity to comment on, any proposed change of use or <br />intended use of the property. This hearing will partly satisfy the Federal public participation requirement. <br />RECOMMENDATION: <br />a) Conduct a public hearing; <br />b) Find the change of the intended use and sale of the Balboa Theater building and property exempt from <br />environmental review pursuant to Section 15312 (Surplus Government Property Sales) of the California <br />Environmental Quality Act Guidelines, California Code of Regulations, Title 14, Chapter 3; <br />c) Direct staff to take necessary steps to sell the property and return to the City Council with the purchase <br />and sale agreement; <br />d) Direct staff to complete all necessary administrative activities consistent with U.S. Department of <br />Housing and Urban Development requirements to document the disposition of the Balboa Theater; and <br />e) Direct staff to begin planning for future use of the proceeds from the sale of the property consistent <br />with CDBG requirements. <br />FUNDING REQUIREMENTS: <br />The City funded one hundred percent of the acquisition of the Balboa Theater property with CDBG <br />funds. Total acquisition costs in 1998 were $489,461.18. Since acquisition, the City has not invested other <br />funds into the property that impacted its value; therefore, Federal regulations (§570.505) specify that all <br />22-1 <br />