At the City Council meeting on the evening of Monday, September 28, there was really only one major item on the agenda (following closed session, presentations, and the consent calendar.
Action Item 1 (A1) called for, “(1) Approval of a Purchase Option Agreement with CF CC Investor LLC Giving the Culver City Public Finance Authority (Authority) the Exclusive Right, but not the Obligation, to Purchase 9050 Washington Boulevard during a Defined Option Period; (2) Authorization to the Executive Director to Sign the Purchase Option Agreement, Subject to Approval as to Form by the Authority’s General Counsel; (3) Authorization of Payment of $375,000 by Authority to CF CC Investor LLC under the Terms of the Agreement; (4) Authorization of Expenditures by Authority Not-to-Exceed $500,000 for Related Due Diligence Analysis; and (5) Direction to City Manager/Executive Director as Deemed Appropriate.”
A staff note read, “The property at 9050 Washington Boulevard includes approximately six acres, three office buildings totaling approximately 198,000 square feet, and an underground garage marketed as containing 607 striped parking spaces. The owner is CF CC Investor LLC. The Authority and the owner signed a Letter of Interest, dated August 27, 2026 (the “LOI”). The LOI identified a potential purchase price of $103 million and a target closing date on or before February 28, 2027, subject to extension. Staff proposes that the Authority execute an option agreement that would hold the Authority’s right to buy the Property on agreed terms until February 28, 2027. During that period, staff would complete its review and due diligence and return with a recommendation on whether to purchase the Property or not.”
Staff pointed to the benefits of the desirable location in a presentation, while the fiscal analysis spelled out that, “The proposed purchase price is $103,000,000 subject to the Culver City Public Finance Authority’s due diligence, including property review and an appraisal by a qualified MAI appraiser showing that the Purchase Price does not exceed fair market value. The immediate request is to authorize up to $500,000 for due diligence and $375,000 as earnest money to enter into the option agreement. The requested amount not to exceed $875,000 would allow staff to gain site control, test the property’s condition, costs, parking value, and potential public uses before returning to the governing body with a recommendation of purpose. The entire $875,000 will be paid out of the Culver City Public Finance Authority’s current budget. The Culver City Public Finance Authority will consider purchasing the property through a conduit and/or revenue bond financing structure. There is no current financial impact contemplated to the City’s General Fund.”
Members of the public seemed concerned about the potential for the city’s general fund to be used to fund the project and, while City Manager Odis Jones was quick to dispel those fears, Council Member Albert Vera still requested that any language be removed completely (despite there not being an official contract on the table yet).
The item passed unanimously, 5-0.