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Home My WebLink About1998-08-25 - AGENDA REPORTS - BILLBOARD SIERRA HWY (2)AGENDA REPORT City Manager Approv""'�""a"-� Item to be presented by: Ken 1h NEW BUSINESS DATE: August 25,1998 SUBJECT: OFFER TO PURCHASE AND REMOVE A 14' X 48' BILLBOARD LOCATED AT 27565 SIERRA HIGHWAY DEPARTMENT: Planning and Building Services Department RECOMMENDED ACTION Appropriate $3,500 from the Council Contingency Fund and direct staff to prepare an appraisal of the billboard sign and begin negotiations with the property owner to purchase the sign. BACKGROUND The owners of the property located at 27565 Sierra Highway recently approached staff regarding a billboard located on-site. Having concerns about regulations governing signage, the property owners were preparing to lease the billboard to a sign company. When asked by staff whether or not they would consider selling the billboard outright to the City so that it could be removed, the property owners indicated interest. A proposal has been received and the owners have requested approximately $108,000. Staff is proposing that the City purchase the billboard and ultimately remove it. To allow the City to recoup as much of the cost as possible, staff recommends that the City explore the possibility of leasing the billboard to a sign company for a short period of time. This would allow the sign to be removed in the near future while minimizing the amount of money the City would pay. Prior to purchasing the sign, the City must go through an appraisal process and negotiations with the property owners. Staff is requesting direction from the City Council as to whether or not negotiations should proceed. ALTERNATIVE ACTION The City Council could either adopt staffs recommendation or elect not to pursue the purchase of the billboard sign. I ei '2 Argrenda ftencA=o FISCAL IMPACT There would be an immediate fiscal impact to the City of approximately $3,500, from the Council Contingency Fund, associated with having an appraisal conducted. However, until such a time as staff can negotiate the amount of the purchase and the method of f1mding, it is difficult to quantify the ultimate price for the sign. ATTACHMENTS Proposal to Purchase the 14'x 48' Commercial Sign SAPBS\ Council \bboard-s. doc 141 X 481.-,Comwxcial Sign. .(909) 8451545 EERMW LUNDBEW (213) 460 2957 MOM D&MAWT (310) 673 4302 PO BCX 84175 WS ANGMM, DATE: July 29, 1998 TO: Conal McNamara, Associate Planner Planning & Bldg. Svcs. 23920 Valencia Blvd., Suite 300 Santa Clarita, Ca. 91355-2196 Phone (805) 255 4330 FROM: Herbert Lundberg - PO Box 84166 Los Angeles, Ca 90073 Phone (213) 460 29-57 SUBJECT: 14" X 481 Designated Commercial Sign; A Prospective For Market Value. Location- 27565 Sierra Hwy. Santa Clarita, Ca. 91351 A.P.N. 2803 028 012 We have arrived at the market value for this sign; $ 144,000 PROCESS ; Three prospective lesees have established the present market lease value @ $14,400 per year and additionally cost of living with extended lease options, for the sign. In using the Income Approach for valuation, we have utilized a 1110 X Grose Income Multiplier per annum" for the determination of market value for the purpose of sign sale. EXHIBIT A. 1. Proximity of sign to high car count at the EXHIBIT D. convergence of Sierra Wy. & Soladad EXHIBIT E. Canyon Rd. EXHIBIT B. 2. Sign size (141X 48"), hight, placement EXHIBIT C. and all around visability. EXHIBIT D. EXHIBIT D. 3. 'Lack of cmrpeetative sinage in the area. 4. scarcity of future commercial sinage due to City of Santa Clarita Sign ordinance. EXHIBIT E. 5. Neighborhood Analysis. page I TOTAL SIGN PURICHASE CONSIDERATION; Only for an expedited, "Fast Tract" process for the purtchase of this sign would we consider the sale of this sign. We have been in negotiations with three major out -door advertising caqpanies and are near ccupeletion with them. t Depending on the shortest time'frame for transaction corpeletion, regarding the purtchase of this sign, would we vary from market value; But for the shortest acceptable time frame, BY US, we -would -consider offers around; $108,000 Thank you for your intrest, and please respond as soon as posible. Enclosed EXHIBITS A. through E. page 2 OA 1 rNRCEL MAP NQ 3458 IN T)IE MINCAWORITED TERPTORI OF THE CELNTY OF VS NIMES STATE OF C)LIFORNEA DEM A DWSM OF A PORTION OF LOT A OF SM2k T4N. R.15W, 3.5.U. I Ilk E—,—. �-- W. RO AM - PO -1 �e�o I l=,o=' it tip IS �EEI 1 71 "UT Fit IS IS A �EEI 1 71 "UT Fit IS IS -ADDENDUM I � I of Too *A m 1-7m IDS ANGELES COMM THOMAS GUIDE, PAGE 4551, GRID H3 ul CL 0 R 0 JVN ih:x- R114. #2 A coq lw�� 4-8 , 9GIIA Loribiq PROPERTY APN 2803 028 012 27565 SIERRA HWY PARCEL 2.7 ACRES #1 CANYON BROADCASTERS INC. 27567 SIERRA.HWY T EE #2 HALM'S At= SERVICE 27515 SIERRA HWY LEESEE #3 WATERWF= CAR WASH 27567 SIERRAL HWY T EE #4 RITE -WAY HOMES 27515 SIERRA, HWY P, N % � I k4::0 - Notes: SO - I CITY OF SANTA CLARITA , �---IIITRANSPORTATION & ENGINEERING SERVICES TRAFFIC ENGINEERING DIVISION TRAFFIC FLOW MAP AVERAGE DAILY TRAFFIC a" UK iz` - - " SPUND mjtm�7 M= pr low. ovum .16 NEIGHBORHOODANALYSIS EXHIBIT E. Introduction A neighborhood is a grouping of smuilar and/or complementary land uses. A Commercial/Residential neighborhood (Market Area) includes the complementary uses that support the value of the immediate location. Neighborhood (Market Area) Boundaries North: South: East and West: Soledad Canyon Road Via Princessa Sierra Highway Neighborhood Description and Existing Land Use Patterns The subject is located on the west side of Sierra Highway Road, approximately 200 feet south of Soledad Canyon Road. The subject area is in the northeast part of Santa Clarita, approximately a quarter mile west of unincorporated Los Angeles County. The intersection of Sierra Hwy and Soledad Canyon is a primary commercial intersection in the area. According to the average daily traffic counts published. by the city office, Soledad Canyon Rd is the busiest street in the city, at sierra hwy and Sierra hwy just south of Soledad Canyon Rd is the second busiest street, with respective traffic counts of +/-38,000-45,000 (5/98) vehicles and +/-28,400 (6/96) vehicles. The commercial thoroughfare continues south approximately one mile to Via Princessa, which intersects with the exit of The Antelope Valley (14) Freeway. The stretch between Soledad Canyon and Via Princessa. is a zone that is experiencing strong retail development, which will lead to increased ftffic in the future. The subject is located within the main hub of this increasing commercial area, and is a prime commercial site. The commercial vacancy in the subjects market area is low to moderate in general. The subject has average freeway access via the Antelope Valley (14) Freeway approximately I mile south, which connects with the Golden State (5) Freeway, approximately three miles south, Adjacent and surrounding land uses: North: Commercial - Strip Retail Center South: Drainage Canal East: Across Sierra Highway — Strip Retail Center West: Residential — Mobile Home Park Conclusion of Neighborhood Analysis and Trends The neighborhood has above average functionality and viability as general commercial area. Crime is controllable and below average for commercial areas in Los Angeles County. The area has average activity and will remain a functioning commercial area due to the aforementioned positive factors. PHOTOGRAPH ADDENDUM VIEW; FACING SOUrH SIERRA HWY. P74 Me ; �v ot -- �9- I a VIEW; FACING NORTH SIERRA HW. 44. � PHOTOGRAPH ADDENDUM bDS Cam LOS T�—N� - mft CA. mo code 90073 off-S-W� I � I 5= C -I m Wqu 1-#� -pfto� *2 VIEW; FACING SOUIH SIERRA HWY. EXHIBIT C. 1,000*40114 FACING NOIZIH SIERRA HWY. "PHOTOGRAPH ADDENDUM VIEW; PANORAMIC CONVERGENCE OF SIERRA HWY. & SOLEDAD CANYON ROAD