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Budget committee backs forwarding purchase option for 1 Newhall as possible OCME facility
Summary
The Budget and Finance Committee voted to forward to the full Board a resolution to exercise the city's option to buy 1 Newhall Street for $5,304,500 as a potential new Office of the Chief Medical Examiner facility, subject to CEQA, design review and future funding authorization. The budget analyst warned capital improvements could add tens of millions to the total cost.
The Budget and Finance Committee on the morning advanced a resolution recommending the city exercise its option to purchase 1 Newhall Street for $5,304,500 as a potential new facility for the Office of the Chief Medical Examiner (OCME).
John Updike, Acting Director of Real Estate, told the committee the 33,000-square-foot industrial building in the India Basin area matches OCME’s space needs and that the proposed acquisition preserves options to put OCME there, lease to other city users or dispose of the asset later. Updike said the purchase price negotiated a discount and the city would close escrow on Sept. 1, 2011, if the Board approves.
The budget analyst presented a fuller cost picture: acquisition plus capital improvements are currently estimated between about $41.3 million and $50.2 million, with capital improvements alone estimated in the $35.42 million–$44.32 million range. The analyst said a purchase approach would be roughly 11% less costly than continuing to lease and build out the space over a comparable period.
Dr. Amy Hart, Chief Medical Examiner, said OCME’s accreditation has been continuous for more than 20 years but the physical plant was cited as deficient in a recent inspection. She said buying a suitable facility and demonstrating a concrete plan for improvements would show good-faith efforts to address those deficiencies and help preserve accreditation in the next inspection cycle.
Supervisors pressed departments on alternatives, including whether any city-owned surplus properties could meet requirements. Real estate staff said they had reviewed city inventories and enterprise-owned parcels and found no suitable, available warehouse-type sites that matched the price, size and entitlements of 1 Newhall. Staff also said the purchase decision would be subject to CEQA review, design approval and a subsequent decision on funding (including potential inclusion of improvements in a future general obligation bond).
After discussion, Supervisor Kim moved to forward the resolution and the committee approved sending the item to the full Board with a recommendation as amended; the committee recorded no formal roll-call vote and advanced the item without objection.
What happens next: The item will be taken up by the full Board of Supervisors; any final placement of OCME at 1 Newhall would depend on CEQA findings, design work and future funding decisions. If the Board approves acquisition but later decides not to locate OCME there, staff said ownership would preserve options to lease or dispose of the property.
