HomeMy WebLinkAbout2017-08-22 - AGENDA REPORTS - REAL PROPERTY PURCHASE OF AP #2844-005-028 AND 029 (2)Agenda Item: 11
CITY OF SANTA CLARITA
Q:° AGENDA REPORT
CONSENT CALENDAR
7,
CITY MANAGER APPROVAL: 1 j4 _ "
DATE: August 22, 2017
SUBJECT: APPROVAL OF REAL PROPERTY PURCHASE OF 1.6 +/- ACRES,
ASSESSOR'S PARCEL NUMBERS 2844-005-028 AND -029, AND
2844-003-004 AND -005. INCLUDING RELOCATION SERVICES IN
SUPPORT OF THE CANYON COUNTRY COMMUNITY CENTER,
PROJECT F3020
DEPARTMENT: Public Works
PRESENTER: Damon Letz
RECOMMENDED ACTION
City Council:
1. Approve the acquisition of 1.6 +/- acres adjacent to the future Canyon Country Community
Center, Assessor's Parcel Numbers 2844-005-028 and -029, and 2844-003-004 and -005 at a
total cost of $4,560,000, which includes the property purchase price of $4,520,000 and
$40,000 for escrow, title, surveying fees, and due diligence cost.
2. Appropriate $4,560,000 from the Facilities account (Fund 723) to the Canyon Country
Community Center Project Land Purchase expenditure account F3020723-5201.004 for
acquisitions.
3. Approve the relocation of tenants and appropriate $1,600,000 from the Facilities account
(Fund 723) to the Canyon Country Community Center Project Land Purchase expenditure
account F3020723-5201.004 for relocation services.
4. Authorize the City Manager, or designee, to execute all documents, subject to City Attorney
approval.
BACKGROUND
In September 2014, the City Council authorized the purchase of four parcels of vacant land
comprising 6.5 acres located at the northeast corner of Soledad Canyon Road and Sierra
Highway for a new community center. Following a public engagement process, the Conceptual
Page 1
Packet Pg. 118
Master Plan for the community center was adopted by the City Council on June 28, 2016. The
Conceptual Master Plan included additional adjacent parcels not currently owned by the City of
Santa Clarita (City).
ACQUISITIONS
The acquisition of these adjacent parcels is necessary to implement the ultimate vision of the
adopted Master Plan for the Canyon Country Community Center. On-site parking along with
traffic improvements on both Soledad Canyon Road and Sierra Highway will be made possible
with the purchase of these properties. This acquisition supports the Canyon Country Community
Center, which is identified in the Building and Creating Community theme of the Santa Clarita
2020 plan.
Negotiations have resulted in willing sellers for two of the three adjacent property owners, who
have signed purchase and sales agreements for four parcels. The Nardin/Salovich property
owners (APNs 2844-005-028 and -029) have agreed to a purchase price at the appraised value of
$1,020,000. The Nishanian property owner (APNs 2844-003-004 and -005) has agreed to a
purchase price of $3,500,000 which is consistent with the Administrative Settlement value after
adjusting for the actual income versus assumed income stream of the commercial property. A
justified Administrative Settlement is recommended, which calculates the property value with
operating businesses and goes beyond standard property appraisal, based on the analysis and
recommendation of the City's acquisition consultant.
City Council adopted the Mitigated Negative Declaration pursuant to the California
Environmental Quality Act (CEQA) at its July 11, 2017, meeting. The overall project description
for the environmental review included the parcels recommended for acquisition. The acquisition
of these parcels was found to be consistent with the City's General Plan in accordance with
Government Code Section 65402.
RELOCATIONS
Pursuant to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of
1970 (49 CFR Part 24) as amended (Uniform Act), the City must provide relocation advisory
services to all eligible displaced persons, including non-residential displaced persons.
Obligations of the agency include providing adequate notice to businesses, relocation advisory
services and reimbursement for moving, and re-establishment expenses.
Ten businesses are currently operating on the parcels that will be purchased for the Canyon
Country Community Center project, along with two billboards. The businesses will be relocated,
while the billboards will be removed. The City has notified all businesses of the impact of the
acquisitions and is working diligently on their relocation. Eligible relocation expenses include
time invested searching for a new site, re-establishment costs, fixtures/equipment, moving
expenses and loss of goodwill. Collectively, the estimated cost for relocating all businesses and
removing the billboards associated with the development of the Canyon Country Community
Center is $1,600,000, which is consistent with the anticipated relocation costs for the project. A
Settlement Agreement will be executed with each business detailing the cost of their relocation
services.
Page 2
Packet Pg. 119
The approval of this item will appropriate the necessary funding to complete the real property
sales transaction and relocation of affected businesses, allowing the City to continue with the
overall project design and relocation of tenants. Additional acquisitions will be necessary for the
complete implementation of the Canyon Country Community Center project and will be
presented to City Council at a future date.
ALTERNATIVE ACTION
Other action as determined by City Council.
FISCAL IMPACT
Upon approval of the recommended action, the budget will be adjusted accordingly.
ATTACHMENTS
Location Map
Page 3
Packet Pg. 120
11.a
2844-005-029 w
;. 2844-005-028 �" �" y _
1 _ - 1.......
0
0
City Owned Parcels — z
a
City Own =
;1 Par else r
' - , • ' GOLDEN RQ I N --N a
'� ••. - - it ;�
w
t J
w
s r u
LL
0
City Owned Pa l J
o
1 ^
J � i.!
I. jl 2844-003-004,
i
°
w
� 4 �
2844-003-005
This map is a user-generated static output from City of Q
s 7 - Santa Clarita GIS Online mapping website and is for
/ reference only. Data layers that appear on this map
• _ may or may not be accurate, current, or otherwise
reliable. The City of Santa Clarita does not warrant the
i� accuracy of the data and assumes no liability for any
Tr errors or omissions.
�L'�DAD�AIVtYON-
Packet Pg. 121