MISSION VIEJO : City OKs Purchase of Office Building

In a move that would eliminate almost $400,000 spent on annual rent for civic offices, the City Council recently voted to purchase an office building that once served as Mission Viejo Co.’s headquarters, officials said.

It is the second time in two months that the council has authorized the purchase. Its first vote, on March 26, was reversed in a special meeting three days later when the council decided it needed more information on the property.

The 2.3-acre parcel at 24800 Chrisanta Drive, near the intersection of La Paz Road and the San Diego Freeway, is listed for $3.4 million, said City Manager Fred Sorsabal. It is owned by Viejo Ltd., a San Francisco-based family partnership. Sorsabal declined to disclose the city’s offer for the property, which was settled in a closed session after the 3-2 vote instructing city staff to bid on the site.

Officials praised the decision to purchase the two-story, 32,000 square-foot office building because it would double the amount of space in the city’s leased facility at 26522 La Alameda.

Rent at the La Alameda site is $32,000 per month for 17,000 square feet. Proposed monthly financing of the Chrisanta building, approved by the council last month, is estimated at $26,000 per month, said Councilman William S. Craycraft, who voted for the purchase.

“The money we’re putting into rent would go into equity now, and would double our space for less money,” Craycraft said.

In addition to buying the building, the city would also have to pay for $1.3 million of improvements required by law for public facilities, such as an elevator, sprinkler system and access for the handicapped, Sorsabal said.