2025-06-03 CC Agenda Packet - ITEM D14 - Options for Long-Term OperationsCITY OF
ELSEGUNDO
Options for Long -Term Operations
Park Vista
City of El Segundo —Affordable Housing Strategy
RSG I June 2025
Background
• Park Vista is a City owned 97- unit senior affordable community
• 2018 Physical Needs Assessment identified approximately $3.2
million dollars in capital needs over the next 10 years.
• City considering options to extend affordability and strengthen
operations
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6/3/25 City of El Segundo 1 350 Main St. El Segundo, CA 90245 3
LONG-TERM OPERATIONS
EVALUATION CRITERIA
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Key Evaluation Criteria
Criteria
Ownership & Control
Financial Impacts
Risk & Liability
Affordability Assurance
Mission Alignment
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Considerations
Retention vs. Transfer
Upfront value, long-term return
Who's responsible for repairs,
compliance, operations?
- Strength of legal commitments
Alignment with City's mission & housing
goals
City of El Segundo 1 350 Main St. El Segundo, CA 90245
5
ELSEGUNDO
LONG-TERM OPERATIONS
OPTIONS
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Option 1 - Sell with Affordable Covenant
Sell the land and/or improvements with a 55-year affordability covenant
recorded on title.
Pros
Cons
■ Immediate revenue generation ■ Loss of long-term control
■ Transfer operations & financial burden ■ Compliance monitoring
■ Affordability through covenants ■ Potential limited interest due to
site restrictions
■ Potential of tenant displacement
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Option 2 — Long-term Ground Lease with Sale
City retains land ownership but leases it long-term to an affordable
housing developer.
■ Pros
■ Cons
■ Maintains public ownership of land May yield less financial return
compared to sale
■ Affordability through covenants
■ Potential ground lease revenue
■ Compliance monitoring
■ Potential limited interest due to
site restrictions
■ Potential of tenant displacement
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ELSEGUNDO
Option 3 - Refinance the Property
Refinance the existing asset to pull equity for reinvestment into
Park Vista or other priorities.
Pros
Cons
■ Maintains ownership ■ Subject to market conditions and
property income
■ Generates cashflow without sale ■ Adds long -tern debt
■ Equity can be used for housing City remains liable for operations
efforts or other capital
improvements
6/3/25 City of El Segundo 1 350 Main St. El Segundo, CA90245 9
ELSEGUN DO
Option 4 — Maintain Ownership & Partner with a
Mission Aligned Partner
City retains ownership and enters into long-term agreement with
a qualified non-profit
Pros
Cons
■ Maintains ownership ■ City remains liable for operations
■ Partners with mission -driven & ■ Potential for limited interest with
experienced non-profit ownership stake
■ May improve of affordability of
operations and services
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City of El Segundo 1 350 Main St. El Segundo, CA90245
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B L,` GGUNUO
CITY OF
ELSEGUNDO
QUESTIONS?
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Requested Council Direction
1. Receive and file a report on long-term operations of the Park
Vista senior housing facility.
2. Provide direction to staff to further pursue any options
presented.
3. Alternatively, discuss and take other action related to this
item.
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