City submits a bid for day labor site

The city has put in a formal $18,000 bid for the day labor site in Laguna Canyon owned by Caltrans.

State law requires that the parcel be offered to certain public agencies. Bidding will be open for 60 days through mid-February. The city’s bid was mailed Jan. 9.

“We have sent the letter indicating we are interested,” City Manager Ken Frank said. “They have received the letter, but they have to keep the bidding open to see if anybody else responds. If not, we will buy the property. If another public agency bids on it — and I can’t imagine who that would be — then we would have to discuss it.”

In that event of multiple offers, the agencies would bid against one another.

“But I think it is 99% sure that $18,000 will be sufficient to purchase the parcel,” Frank told the council at the Jan. 8 meeting.

The amount of the bid was based an independent appraisal commissioned by Caltrans after it had no takers when the site was appraised for commercial use for more than $1 million.

Frank had previously said it is unlikely the council would repeal the ordinance that designates the parcel as the city’s sole day labor center. The lack of permanent structures on the site qualify it for open space zoning.

The city’s bid for the almost 17,000 square-foot parcel was contained in a letter mailed to Caltrans, one day after the council authorized Frank in a closed session to submit the offer.

Although Deputy City Attorney Hans Van Ligten said no reportable action had been taken in the Jan. 8 closed session, Frank eschewed the legal loophole that no report is necessary until the action is completed. In other words: when or if the bid is accepted.

“I suggest we do it [announce the bid] because it will become public as soon as my letter to Caltrans is delivered,” Frank said.

Frank’s announcement came in response to a query posed by former School Board member Karl Schwarz during the public communication period at the beginning of the council meeting. Any member of the public can speak on any subject not on the regular agenda.

Schwarz’s interest was piqued by the closed session agenda, which included the possible acquisition of the day labor parcel, as well as the existing litigation against the city by an opponent of the city’s use of the site for a day labor center.

He complimented the city attorney, the city manager and the City Council for their “robust” defense against the lawsuit filed by Laguna resident Eileen Garcia and her husband, George Riviere.

“This is not an immigration issue, it is local action to benefit residents,” Schwarz said.