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Home My WebLink About1991-06-11 - AGENDA REPORTS - COMMUTER RAIL STATION (2)AGENDA REPORT City Manager Approval Item to be presented b . UNFINISHED BUSINESS John E. Medina DATE: SUBJECT: DEPARTMENT: BACKGROUND June 11, 1991 COMMUTER RAIL Public ON On April 23, 1991, staff presented to Council its progress toward establishing a commuter rail station in the. City. This included an outlined summary agreement with the.owners of the Bermite property. Staff also indicated that the Glazer and Gates property owners have been contacted, concerning their site as a possible alternate or second site locations. With regard to the outlined agreement, Council directed staff to pursue establishment of a purchase credit for any increased value to the remaining Bermite property due to the construction of the rail station in the event the City would be required to buy the station site. Council also directed staff to initiate an environmental assessment of all three properties, and request that the property owners fund .the environmental work, being undertaken. Pursuant to Council's direction, staff has negotiated further with the Whittaker Corporation, the owners of the Bermite property, resulting in .the attached revised outline summary agreement. All of the original wording that has been deleted is shown in brackets [ ], and added wording is shown in bold/underlined. The main points of the outline are: • The City may lease the initial parking area (5 acres) for $1 per year for three years. • If Whittaker receives development approval for the remainder of its property it may donate up to 10 acres to the City (including the initial 5 -acre area.) • If Whittaker does not receive approval for its development, the City may lease the property for two more years and purchase it over the next two years. • If the City purchases the property, it will be given credit for the increased value to the leased property and to 20 acres of adjacent Whittaker property created by the commuter rail station. APPROVED Agenda Xem:� Page 2 The Los Angeles County Transportation Commission (LACTC) has agreed to fund the initial environmental assessment on the Bermite and Glazer property and indicated that they would not fund this assessment for the Gates property because it did not meet their criteria for a station site at this time. We have requested the owner of the Gates property fund their environmental assessment work but have not received their answer at this time. The Los Angeles County Transportation Commission has indicated to staff that an agreement with the Whittaker Corporation is necessary in order to begin negotiations for the additional rail right-of-way and for them to start rail work design. It is essential that we proceed with development and adoption of a formal agreement in order that design and construction may proceed for the October 1991, commencement of service date. Staff has negotiated the deal points of the agreement including the direction provided by Council. It is felt that the items proposed for inclusion in the contract provides desirable options to the City and permits flexibility for deferring and distributing purchase funding over a period of time after station operation is commenced, consistent with anticipated revenues. RECOMMENDATION Staff recommends that Council review the latest outline agreement; provide input to staff; and direct staff to work out a final agreement. ATTACHMENTS Outline for Acquisition Map JEM:rod AGN:467 OUTLINE FOR ACQUISITION BY CITY OF SANTA CLARITA OF A COMMUTER RAIL STATION ON THE WHITTAKER CORPORATION'S BERMITE PROPERTY 1. Whittaker Corporation grants to .City a lease for a mutually agreed upon portion of the Bermite Property for the purpose of establishing a commuter rail station and parking facility. A. Term of lease to be three years [from commencement of actual commuter rail service.] B. Lease Rate — $1.00 per year. C. Area of initial leasehold to be approximately five (5) acres. D. Potential area of ultimate leasehold/purchase to be 8-10 acres. E. City may, at City's option, increase the size of its leasehold up to the ultimate area at any time during the lease term. 2. It is anticipated that the ultimate development approval(s) of the Bermite property [will result in a number of significant public extractions including the.donation for public use of parking and station facilities.] may result in Whittaker donating property for public use for train station and parking facilities. 3. If at the end of the initial lease term, the Bermite land plan has not been approved, the City may continue the lease with an option to purchase for up to two years upon the annual payment of 10% of the [then current] appraised property value. The parties agree to conduct an appraisal of the rail station property not earlier than sixty (60) days prior to the end of the initial lease term for purposes of determining the lease extension payment amount. Said appraisal shall be based upon the value of similarly zoned and located property in the City of Santa Clarita without regard to the proximity of the rail station or the existence of any improvements constructed in connection with the rail station. 4. The City shall identify at the start of Year five (5) of the lease. the size and configuration of the City's desired purchase. if at the end of year five (5) the City elects to exercise its purchase option. If purchase of the property is required Whittaker and City to obtain a second appraisal of the approximate thirty (30) acre portion of the Whittaker property located as shown on the attached exhibit (hereinafter referred to as "Parcel A^) not earlier than sixty (60) daps prior to the purchase. A. The base purchase price shall be the then current value of the acquired station site (approximately 8-10 acre), as determined by appraisal. less [ ] deleted wording added wording OUTLINE FOR ACQUISITION COMKUTER RAIL STATION Page 2 B. The increase in value of the remainder Whittaker ownership of the "Parcel A^. approximately twenty (20) acres. over and above the value of similarly zoned and located property in the City of Santa Clarita due to the proximity of the train station and exclusive of the value of any improvements constructed by the City in connection with the train station. . C. At the City's option, the City may close the purchase of the property for a down payment of 10% and a note at prime + 2%. principal and interest all due and ravable at the end of two years. D. A portion of the lease payments shall apply as a credit against the down payment as set forth below: 1. If the City leases in years four (4) and five .(5) of this agreement less than eight (8) acres then twenty-five (25%) Percent of the lease payments shall apply. 2. If the City leases eight (8) acres or more. then thirty-five (35%) percent of the lease payments shall apply. [4] 6. Any time following the initial lease term, the City may condemn the property.. [Whittaker and City agree that compensation shall be 90% of the then current property value.] [5] Z. The City and Whittaker agree that the location of the station and parking facilities may be relocated by Whittaker at.Whittaker's sole expense, subject to the City's and CTC's reasonable right to review and approve the proposed relocations. The City shall have the right to sublease the City leased property and retain proceeds from such sublease. subject to Whittaker's right to review and approve such leases. 9. Whittaker retains the right to lease the balance of the potential ultimate train facility not subiect to the initial leasehold provided that all leases executed by Whittaker shall be cancelable within one hundred twenty (120) days of written notice by the City that it wishes to expand its initial leasehold. 10. Whittaker shall be responsible for providing a toxic report satisfactory to the City of Santa Clarita. [ ] deleted wording added wording HDS:1000 r .,