HomeMy WebLinkAbout1995-05-09 - AGENDA REPORTS - PURCHASE PRINCESSA RAIL (2)NEW BUSINESS
DATE:
SUBJECT:
DEPARTMENT:
.AGENDA REPORT
City Manager Approval
Item to be presented
Dennis Luppens,
Works Direct
May 9, 1995
PURCHASE OF PRINCESSA RAIL STATION
Public Works
With the use of transit funds, staff is recommending the purchase of the existing rail station
located on Via Princessa near Sierra Highway from the Newhall Land and Farming
Company (NL&F). Staff is currently seeking a grant from the Metropolitan Transportation
Authority (MTA) to fully or partially fund the purchase. Staff and the owner have thereby
negotiated a structured purchase agreement to integrate the grant procedures into the
purchase agreement. Over a period of three years, the City would make three payments.
The first years' payment would be 25 % of the purchase price with the balance being paid
over the following two years.
The Princessa Station is the second of ultimately three Stations in Santa Clarita. It serves the
eastern portion of the City as well as unincorporated areas along the Highway 14 corridor
between Santa Clarita and the Antelope Valley. Currently 300 to 400 trips originate and
terminate at the station each weekday. If the station were to close, it is likely some of these
trips would be lost due to the longer drives needed to reach the Santa Clarita Metrolink
Station on Soledad. However, if all users of the Princessa Station were to shift to the Santa
Clarita Station, insufficient parking would result and there would be no room to
accommodate growth.
The Princess Station was built immediately following the January 17, 1994 Nothridge
Earthquake. The City entered into an rental agreement with NL&F for the land. No rent
was charged for the first nine months. For the subsequent the months, the lease required
rent in the amount of $10,000 per month. Because significant readership continues from the
station, beginning last October, staff began its investigation into the purchase of the land.
'; 0�f f D Agenda item: �v
Purchase ofPrincessa Rail Station
May 9, 1995
Page 2
Staffs appraisal was completed in October of 1994. The report came back valuing 8.5 acres
without improvements at $2,000,000, or $4.86 per square foot. Staff continues to negotiate
with NL&F for a final purchase price. The purpose for this item appearing tonight is to open
escrow as soon as possible. The money for the purchase comes from the City's Transit
Reserve funds. Currently, there are sufficient funds available to pay for the entire purchase of
the property. However, staff believes our chances are good that a grant may be awarded by
the MTA for at least a significant portion of that amount. With this in mind, staff
recommends the purchase of the land with grant money to keep Transit Reserve funds at
significant levels in the event unforseen service expansion is required.
An environmental analysis of the site is in progress. Staff is in the process of acquiring an
environmental consultant to conduct a Phase I Environmental Assessment for possible
contaminants before the close of escrow, Staff does not foresee any environmental problems
at this time.
Finally, staff at this time does not intend to 'improve the property beyond is current condition.
When sufficient funds become available, staff will investigate this possibility: When the
property is developed, the City will have to make improvement to the property which include,
street widening, sidewalk, curb and gutter, trees, water and sewer.
1. That the City Council authorize the purchase of the Princessa Rail Station from the
Newhall Land and Farming Company.
2. Direct the City Manager to negotiate a purchase price comparable to recent nearby
land sales.
Appropriate up to $25,000 from AB 2766 Air Quality Improvement Funds to
Account 55-7000-410 to open the escrow account upon agreement of a purchase, price.
4. Appropriate $5,000 from AB 2766 Air Quality Improvement Funds to
Account 55-7000-227 to pay for an environmental assessment of the property.
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