HomeMy WebLinkAbout1991-09-24 - AGENDA REPORTS - COMMUTER RAIL STATION (2)AGENDA REPORT
CONSENT CALENDAR
DATE: September 24, 1991
SUBJECT: COMMUTER RAIL STATION
DEPARTMENT: Public Works
BACKGROUND
City Manager Approval
It to be presented by:
7n F. Medina
The Initial Studies for environmental clearance prepared for both the Bermite
site and the Glazer site (alternate location of the Commuter Rail Station)
have been completed. The Initial Studies have determined that a mitigated
Negative Declaration is appropriate for both sites. (See Proposed mitigated
Negative Declarations, Attachment 1.)
The owners of the Gates property have indicated that their site need not be
considered at this time, due to development time restraints.
The proposed Negative Declaration has been prepared pursuant to the California
Environmental Quality Act and is currently concluding the public review
phase. Any comments on the proposed mitigated Negative Declaration will be
forwarded to the Council for consideration.
The Los Angeles County Transportation Commission has sent to staff a
Memorandum of Understanding (M.O.U.) by which they will loan the City the
required amount of money to finance the costs for the.station project. This
loan program was implemented by the LACTC because Proposition C funding, which
could be used for rail station purposes, is currently in litigation. It is
also the City's only funding source which provides immediate capital in order
to meet the construction and station start-up schedule of October, 1992.
The anticipated sources- for funding this project- are: the Transit Capital
Improvement Program (TCI); the Transportation Development Act (TDA); and the
loan program established by the LACTC The loan would ultimately be paid back
with Proposition C local distribution. In the event that Proposition C fails
in litigation and these funds were not available, then the loan would be paid
back with Proposition A, TDA, and/or General Fund money.
On June 11, 1991, staff presented to Council a revised outline agreement with
the Whittaker Corporation in order for the City to lease and eventually
acquire, a portion of the Bermite property. The Council approved the outline
in concept, and directed staff to. draft a legal document from the outline
agreement.
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APPROWED Agenda Item:
Agenda Report
Commuter Rail Station
Page 2
The draft outline was sent to the City Attorney's office and a draft lease
purchase agreement was prepared (See Attachment 3). There are some issues
remaining between the agreed upon outline and the draft agreement yet to be
resolved.
• Anden/Whittaker prefer to use an escrow company of their choice. Staff
feels :that the City should have -the option of using a local company.
• Anden/Whittaker wishes to establish shared parking with the station.
Staff foresees parking conflicts if Anden sites businesses with peak
hours which coincide with rail service parking and City leased Speedway
parking. (A potential acquisition option with Rodeo Property.
• Anden/Whittaker seeks to reserve the right to preview and approve the
City's non -rail station uses or other sublease uses. This may restrict
the City's ability to establish multi model transit uses and control
commercial uses around the station.
Staff feels that these issues would hamper our development of the property.and
would like the Council's concurrence in that regard. Staff is seeking
Council's approval, in concept, of the Draft Agreement as presented.
Staff has met with representatives of Rodeo Property (owners of the Saugus
Speedway) in order to acquire a narrow strip of land between the City's future
lease/purchase and the railroad right-of-way, which they own. Our
negotiations have not been completed but they have indicated a willingness to
trade the property for joint use of the parking on the Commuter Rail site.
The draft of the proposed mitigated Negative Declaration is on file in the
office -of the City Clerk.
1. Conceptually approve the proposed mitigated Negative Declarations for the
Bermite and Glazer sites, with direction to staff to return the proposed
Negative Declaration for final certification within thirty days.
2. Council approve, in concept, the lease/purchase agreement as presented
contingent upon certification of the proposed mitigated Negative
Declaration.
3. Subject to the City Attorney's approval, authorize the City Manager and
City Attorney to execute the Memorandum of Understanding with the Los
Angeles County Transportation Commission.
ATTACHMENTS
Memorandum of Understanding
Lease Purchase Agreement
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CITY OF SANTA CLARITA
N E G A T I V E D E C L A R A T I O N
[X] Proposed [ ] Final
PERMIT/PROJECT: City of Santa Clarita Commuter Rail Station
APPLICANT: City of Santa Clarita MASTER CASE NO:
LOCATION OF THE PROJECT: The site is located along the eastern side of
San Fernando Road. east of the railroad right-of-way. approximately between
13th and 16th Streets.
DESCRIPTION OF THE PROJECT: The pro]ect consists of the construction of a
commuter rail station including a station platform approximately 10 feet
wide and 425 feet lone and parking spaces for 300-500 cars. The station
would provide commuters with access to proposed rail service connecting
Santa Clarita with downtown Los Angeles.
Based on the information contained in the Initial Study prepared for this
project, and pursuant to the requirements of Section 15065 of the California
Environmental Quality Act (CEQA), the City of Santa Clarita
[X] City Council
[ ] Planning Commission
[ ] Director of Community Development
finds that the project as proposed or revised will have no significant
effect upon the environment, and that a Negative Declaration shall be
adopted pursuant to Section 15070 of CEQA.
Mitigation measures for this project
[ ] are not required. [X] are attached. . [ ] are not attached.
LYNN M. HARRIS
DIRECTOR OF COMMUNITY DEVELOPMENT
Prepared by: Myra L. Frank and Associates
(Sig ture (Name/Title) .
Approved Donald M. Williams. Senior Planner
Signa ure) (Name/Title)
Public Review Period From To
Public Notice Given On By:
[ ] Legal advertisement. [ ] Posting of properties. [ ] Written notice.
CERTIFICATION DATE
Y
COMMUTER RAIL STATION
BORROWING AGREEMENT
THIS AGREEMENT. is made and entered, in duplicate, as of
the day of , 1991, pursuant to a minute
order adopted by the City Council of the City of Santa Clarita
at its meeting held on September 24 , 1991, and pursuant to'a
minute order adopted by the Los Angeles County Transportation
Commission at its meeting held on June 26, 1991, by and between the
CITY OF SANTA CLARITA , a municipal corporation, ("City") and
the LOS ANGELES COUNTY TRANSPORTATION COMMISSION, a public body,
("Commission").
WHEREAS, the City has agreed to pay for the planning
and construction of a commuter rail station; and
WHEREAS, Commission has approved the City's commuter
rail site selection; and
WHEREAS, City wishes to borrow and the commission
Two million 2,500,000.
agrees to loan City five hundred DOLLARS ($ ) for costs related
thousand
and—
to the construction of the City's commuter rail station; and
NOW, THEREFORE, in consideration of the mutual terms
and conditions herein, the parties agree as follows:
1. To the extent funds are available, Commission shall
Two million, five
transfer hundred thousand_ DOLLARS ($2,500,000. ) to City upon a date
selected by the City and -approved by the Commission. City agrees
to use said funds solely for costs associated with constructing a
commuter rail station at the site approved by the Commission.
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2. City shall be charged a variable rate for funds
borrowed that is based. upon the rate funds earn in Los Angeles
County's Pooled Investment Fund plus one-half a percentage
point. Interest on funds transferred shall accrue upon the
date of receipt by the City. Interest will accumulate with
1
monthly,amortization in arrears.
3. City will repay Commission the principal and
interest accrued there to completely within five (5) years of
receipt of funds. Repayment schedule shall be annual payments
due one year from date of receipt of funds. Commission will
provide City with annual invoices. City may repay any or all.
amounts due in excess of the annual required in the annual
payment schedule any time within the five years.
4. Upon approval by Commission, Commission may allow
City to repay loan including interest by directly accessing
City's Proposition "A" Local Return Allocation from the Los
Angeles County Auditor Controller.
5. City may, at its option, return to Commission any
portion of loaned funds not needed for construction of the
commuter rail station. Said funds repaid will be charged the
agreed rate of interest for the time the funds were borrowed.
6. The terms and conditions of this Agreement shall
be effective upon execution by the City and the Commission.
7. All notices required pursuant to this Agreement
shall be in writing and personally served or deposited in the
U.S. Postal Service, first class, postage prepaid to City at
Pi
23920 Valencia Blvd.
Santa Clarita, CA 91355
California 91355 , Attention:
City Manager and to Commission at 818 West 7th Street,
Los Angeles, California 90017. Notice shall be deemed given
on the date personal service is obtained or on the date of
deposit in the mail, whichever applies.
._8. This Agreement shall not be amended, nor any
provision or breach hereof waived, except in writing signed
by the parties which expressly refers to this Agreement.
9. This Agreement constitutes the entire
understanding between the parties and supersedes all other
agreements, whether oral or written, with respect to the
subject matter herein.
10. In the event that there is any legal proceeding
between the parties to enfprce or interpret this Agreement
or to protect or establish any rights or remedies hereunder,
the prevailing party shall be entitled to its costs and
expenses, including reasonable attorney's fees.
IN WITNESS WHEREOF, the parties hereto have caused
these present to be duly executed with all of the formalities
required by the law on the respective dates set forth opposite
their signatures.
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IN WITNESS WHEREOF, the parties hereto have caused
these present to be duly executed with all of the formalities
required by the law on the respective dates set forth opposite
their signatures.
LOS ANGELES COUNTY TRANSPORTATION COMMISSION
NEIL PETERSON DATE
EXECUTIVE DIRECTOR
APPROVED AS TO FORM:
DE WITT CLINTON
County Counsel
Date:
NINA PHILLIPS
Deputy County Counsel
CITY OF Date:
City Manager
This Agreement is hereby approved as to form this
day of , 1991.
BY:
4.
City Attorney
Depu
LEASE WITH OPTION TO PURCHASE
This lease is entered into as of this _ day of , 1991 by and
between the Whittaker Corporation (Landlord) and the City of Santa Clarita
(City).
1. Landlord hereby leases to City that certain real property, herein
after described ("Property"). Subject to Paragraph 10, the term of the lease
shall be for three (3) years commencing , 1991 and terminating
1992. City.shall have the option to extend.this lease for an
additional two (2) years as set forth in Paragraph
2. Rent. Tenant shall pay.to Landlord $1.00 per year payable in full
upon commencement of the lease.
3. Use of Property. The Property shall be used by the City for the
purpose of establishing a commuter rail station and parking facility together
with such other commercial or non-commercial uses deemed desirable by the City.
4. Description of Property. Attached hereto as Exhibit A is a map
depicting the Property. The Property consists of approximately five (5)
acres. At the option of City, the leased area may be increased from time to
time from 5 acres up to 10 acres. The additional area is to be contiguous to
the original 5 -acre area in a figuration to be designated by City. City may
elect to add said additional acreage at any.time prior to expiration of the
lease or any extension hereof. No additional rent shall be due Landlord upon
City's election to expand the size of the leased area.
6. During the term of this lease, shall be responsible for all
property taxes and or possessory interest taxes assessed against the Property.
7. City shall have the right to sub -lease all or any portion of the
leased premises without the prior consent of Landlord.
8. Option to Extend Lease. City shall have an option to extend this
lease for a period up to an additional two (2) years by giving written notice
thereof to Landlord at least ninety (90) days prior to the end of the original
term. The rent to be paid to Landlord during said option period shall be
calculated as follows:
The parties agree to conduct an appraisal of the Property, approximately
sixty (60) days prior to the end of the initial lease term. 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 and
parking facilities or any improvements constructed in connection with the rail
station. The annual rent.payment for the option period shall be ten percent
(10%) of the appraised value as determined above. The rent shall be paid
monthly commencing with the first day of the option period.
9. Option to Purchase.
a. Landlord hereby grants to City an option to purchase the Property or
any portion thereof, including the additional area as provided in Paragraph 4
whether or not said additional area becomes a part of the Lease.
b. City shall have the right to exercise this option beginning
years after the date of this Lease and ending years
thereafter by giving written notice of said exercise to Landlord within said
time period.
c. The purchase price for the Property subject to this option shall be
determined as follows:
(i) Landlord and City will. agree to obtain a joint appraisal of the
thirty (30) acre portion of Landlord's property designated on attached Exhibit
"B." Said appraiser'shall also determine the value of the Property.
(ii) The base purchase price shall then be the current value of the
Property as determined by said appraisal, less the increase in value of the
remaining Exhibit "B" property (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 commuter rail station and parking facility
and exclusive of the value ofanyimprovements constructed by the City on the
Property.
d. If the City elects to exercise its option hereunder, the parties
shall open an escrow to complete the sale of the Property. At the option of
the City, the City may pay the .purchase price at close of escrow in cash or
with a ten percent (109x) cash downpayment and a note for the balance at prime
(at bank) plus two percent (24), with principal and accrued interest all
due and payable at the end of two (2) years following close of escrow.
e. The City shall receive a credit to be applied against the purchase
price (or cash downpayment) for any lease payments made pursuant to Paragraph
8 alone as follows:
(i) If .the City leases in years four (4) and five (5) less than a
total of eight (8) acres, then twenty-five percent (25%) of the rent paid for
years four (4) and five (5) shall be credited to the purchase price; if the
City leases eight (8) acres or more for years four (4) and five (5), then
thirty-five percent (35%) of the Lease payments for years four (4) and five
(5) shall be credited to the purchase price.
f. Escrow. Within five (5) days following City's exercise of this
option the parties shall cause an escrow to be opened at a mutually acceptable
escrow office for the purpose of the sale of the premises pursuant to the term
of this option. Instructions to set escrow shall provide:
(i) The escrow shall close on or before the expiration of sixty (60)
days following the opening of escrow.
(ii) Title to the Property upon close of escrow shall be vested in
City or City's nominee. Title to the Property shall be free and clear of any
and all liens and encumbrances and subject only -to such CC&R's and easements
as may be approved in writing by City.
(iii) Landlord shall provide City with an ALTA title insurance
policy issued by a title company selected.by City with coverage in the amount
of the total purchase price. insuring title to the Property free and clear of
all liens, covenants, restrictions and easements and other matters of - record
except for such matters approved in writing by City.
(iv) Escrow fees and charges shall be paid by the parties in the
manner customarily followed by said escrow company. Landlord shall pay the
title insurance premium attributable to a CLIA, and City shall pay the excess
charges associated with an ALTA policy.
(v) The escrow instructions shall contain such other provisions
concerning the escrow as are normally contained in the standard form of escrow
instructions used .by said escrow company, provided however that said standard
provisions shall not supersede the escrow provisions provided for herein.
10. The rights and obligations of the parties- hereto shall be conditional
upon the prior approval by the City of a phase one environment site assessment
report on the Property prepared by an environmental consultant selected by
City. shall pay all costs associated with obtaining said report.
11. All notices required or permitted under this lease shall be in
writing and shall be personally delivered or sent by certified mail return
receipt requested postage prepaid to the addresses following the signature of
the parties hereto.
12. All waivers must be in writing and signed by the waiving party.
13. This lease shall be interpreted in. accordance with the law of the
State of California.
AGREED AND ACCEPTED BY:
DATED
DATED
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LANDLORD
CITY
IV
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