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HomeMy WebLinkAbout1999-06-22 - AGENDA REPORTS - GVR RIGHT OF WAY ACQUISITION (2)PUBLIC HEARING CITY OF SANTA CLARITA AGENDA REPORT City Manager Approv Item to be presented by: Lawrence P. CUs - DATE: June 22, 1999 SUBJECT: GOLDEN VALLEY ROAD RIGHT-OF-WAY ACQUISITION RESOLUTION NOS. 99-115 THROUGH 99-122 DEPARTMENT: Transportation & Engineering Services RECOMMENDED ACTION City Council receive the staff report and review the evidence presented at the public hearing, including public comments and any written comments received; and adopt Resolution Nos. 99-115 through 99-122, authorizing the commencement of eminent domain proceedings so as to acquire several small parcels, portions of larger parcels, and easements for road, slope, and construction purposes for the construction of Golden Valley Road. BACKGROUND A Development Agreement between the Santa Clarita Business Park (SCBP) and the City was approved by City Council on April 7, 1998 (Master Case No. 97-124, Development .Agreement 97-001, Resolution No. 98-45, Ordinance No. 98-12), and recorded in the office of the Los Angeles County Recorder on June 5, 1998 (Instrument No. 98-951356). Pursuant to Sections 3.2, 3.5, 4, and 5, Schedule 3, and Exhibit E of the Development Agreement, SCBP agreed to acquire, design, and construct Golden Valley Road within Tract No. 42670-02 and southerly to Sierra Highway. It was further agreed that if SCBP was unable to acquire the necessary properties and easements, the City would use eminent domain for the acquisitions. Since the execution of the Development Agreement, the William S. Hart Union High School District is in the process of purchasing property along the Golden Valley Road corridor, north of Sierra Highway, and is planning to construct a new high school at this location. The plans for this new school facility have increased the urgency for start of construction on the road to access the site. The school district has agreed to provide any necessary easements through their property for the road construction, and a joint E.I.R. was processed through the City for the grading of the school site and the road construction. Over the past year, SCBP has sent at least two letters to owners of properties that are affected by the construction of Golden Valley Road. The letters requested the cooperation of these owners to either donate or sell all or portions of their land. Adopted: (- zz . Agenda Item: GOLDEN VALLEY ROAD RIGHT-OF-WAY ACQUISITION June 22, 1999 — Page 2 The proposed construction corridor for Golden Valley Road from Sierra Highway to Golden Triangle Road contains 55 parcels under 20 ownerships. Staff is working with the public agencies that own 22 parcels. The Education Foundation owns four large parcels; the Los Angeles Department of Water and Power owns at least 16 various sized parcels; and the County of Los Angeles owns two parcels. There are 16 separate private ownerships that include 33 separate parcels. The owners of two small parcels near Sierra Highway have agreed to sell their property. The owner of 15 separate parcels affected by the road construction has signed a letter of agreement to cooperate by providing the necessary right-of-way and easements in exchange for mitigation and the trade of unused portions of acquisition parcels. The owners of the property commonly known as Porta Bella have agreed to provide the requested easements. A positive response was not obtained from owners of six small parcels near Sierra Highway and two larger parcels near the future Via Princessa. Therefore, these parcels are the subject of this proposed action. The remaining private properties north of Via Princessa will be the subject of a future public hearing if agreement for the necessary easements is not reached. In March 1999, the SCBP representatives provided City staff with the results of their acquisition efforts. At that point, it was determined that a consultant specializing in acquisitions be hired to continue to pursue the necessary acquisitions and provide the documentation necessary for the City to pursue eminent domain proceedings if it became necessary. The acquisition consultant has attempted to make contact with all property owners, has requested permission to enter the properties for appraisal purposes, and has completed the preparation of appraisals for those properties considered in this action. Offers were made to these property owners. The City Council must now consider for condemnation those properties for which the consultant and/or City staff, through mutual agreement with the owners, have been unable to acquire fee ownership or easements. If the City Council determines that the public necessity requires the proposed acquisitions, the City Council should adopt resolutions authorizing condemnation proceedings for the purpose of acquiring the interests described in the attached resolutions. Questions relating to value are not relevant to this proceeding. However, that does not mean that negotiations for the acquisition of the parcels are at an end. If the City Council adopts the Resolution of Necessity, staff will continue to work with the property owners to reach agreement. Failing that negotiation process, the City Attorney will file the necessary condemnation actions. GOLDEN VALLEY ROAD RIGHT-OF-WAY ACQUISITION June 22, 1999 — Page 3 ALTERNATIVE ACTIONS 1. City Council could delay the project by requiring that more effort be made to come to agreement with the affected property owners. This may jeopardize state funding of the school construction. 2. City Council could request that the school district acquire the necessary properties and easements by use of their power of eminent domain. 3. Other action as determined by the City Council. FISCAL IMPACT This action will not have a great effect on the actual cost of purchasing the rights-of-way and necessary easements, as the City is obligated to pay the appraised values. The expense of litigation to finalize the acquisitions is unknown at this time. However, these legal costs could be sizable if settlements are not reached in a reasonable time frame. All costs associated with the road construction, including land acquisition, will be reimbursed from the Eastside B&T District funds and should have no effect on the City's General Fund. ATTACHMENTS Location Map Resolution Nos. 99-115 through 99-122 With associated: Settlement Offers Appraisal Summaries Exhibits June 11, 1999 Memorandum — Acquisition Status Report LPC:Ikl mundh.d.e d.doc 0 'a 3 W'0S "M Sl'H "N b'1 �y o£ Das 3Nn ----__ _---------- -- — --------------- — I I 3 J vl w z o� �o Q Z w z n� 3 Y a Z Y ~ J Z I � uOi4 rw Y z 0 K[V �N _ I _ --------- _ _ _wsls N sis`M sra 'N a1 �U£ '03s 3NIl AI,M i i o N OIS IA IOBfIs S,N HOf IS N� al �M Sb a �+ N L� \ N ti' I \ �ti II II v �s I I I � II v am --------------------------- --------------------------------------------------------- I I I o 0 I >o% li A I I I r I v� n O y 1y 0 / / I / V / V / � W / / I i i �1 e 3 23920 Valencia Blvd. Suite 300 Santa Clarita California 91355-2196 Website: www.santa•clarita.com City of Santa Clarita June 7, 1999 Maria A. Lopez P.O. Box 2123 Santa Clarita, CA 91386 Phone (661)259-2489 Fax (661) 259-8125 Regarding: Golden Valley Road Extension Project Assessor's Parcel Number: 2836-020-042 Dear Ms. Lopez: The City of Santa Clarita City Council has approved plans for the extension of Golden Valley Road. This project requires the acquisition of your property as listed below. Therefore, the City of Santa Clarita hereby makes an offer to settle the acquisition of your property located west of Sierra Highway, Santa Clarita, California, for the sum of $3,275.00. The City's offer is the full amount determined to be just compensation for the property interest. The basis for that determination is explained in the attached Information and Appraisal Summary Statement. It is the City's hope that this price is agreeable to you and that the acquisition can begin immediately. Mr. Frank Kobashi of Cutler & Associates, Inc., the acquisition agent for the City, will contact you regarding the acquisition of your property and answer any questions you have regarding this letter. Mr. Kobashi can be reached at (562) 431-6789. This offer is subject to and conditioned upon acceptable soils conditions and the absence from the property of toxic or hazardous substances and any other kind of soil or water contamination, and to the grant of a right -of -entry to the City for the purpose of conducting a soils, toxic and hazardous substances investigation of the subject property at City's expense. This offer is further subject to modification depending on the results of said investigation to the extent that the results of such investigation could have an impact on the value of the subject property. PRINTED ON RECYCLED PAPER Maria A. Lopez Page 2 In order to establish your eligibility or the eligibility of those occupying your property, for relocation purposes, it is requested that you acknowledge receipt of the City's offer by signing a copy of this letter and returning same to this office. Your signature on the copy does not signify acceptance of the offer to settle the acquisition by the City, it only acknowledges receipt of the City's offer. Your cooperation in this matter will be greatly appreciated. Sincerely An=y.J'Nisich�� Director of Transportation & Engineering Services OFFER RECEIVED 0 Dated: AJN\JMC:tj SCL\004\003.OFF- Receipt of Offer Does Not Constitute Acceptance INFORMATION STATEMENT This approved offer is presented in settlement of the acquisition of your property. $3,275.00 Land and Improvements The value of your property being purchased is based upon a market value appraisal prepared by an independent appraisal firm in accordance with accepted appraisal procedures. Where applicable, the valuation of your property is based upon an analysis of, recent sales of comparable sites and similar properties in this locality with consideration to the highest and best use for development of the property; an income approach based on the potential fair rental for your property has been considered; and a replacement cost approach considering the estimated depreciated cost of the improvements, together with the value of the land, has been considered. Any diminution in value of the remainder parcel, or costs to mitigate same, have also been considered. Before arriving at a conclusion of value, the appraiser conducted an investigation in order to obtain the information necessary. The investigation generally includes an inspection of the property and improvements, and review of the improvements, a review of the immediate surrounding and regional influences, the property zoning and uses permitted, a study of the highest and best use to which the property can be put, easements which may exist on the property, the availability of utilities, access and street improvements. The appraiser may conduct interviews with knowledgeable persons, collect comparable sales data, information relating to fair rental value of the property and the cost of reproducing the improvements on the property. The offer is the full amount believed by the City to be just compensation for your property. It is not less than the City's highest approved appraisal of the Fair Market Value of the property. Any decreases or increases in the Fair Market Value of the real property to be acquired prior to the date of the valuation caused by the public improvements or project for which the property is to be acquired, or by the likelihood that the property would be acquired for such improvement or project, other than that due to physical deterioration within the reasonable control of the owner, has been disregarded by the City and its appraiser in making their determination of the Fair Market Value of such property. FAIR MARKET VALUE, as used in the appraisal, is "........the highest price on the date of valuation that would be agreed by a seller, being willing to sell but under no particular or urgent necessity for doing so, nor obligated to sell, and a buyer, being ready, willing and able to buy but under no particular necessity for so doing, each dealing with the full knowledge of all the uses and purposes for which the property is reasonably adaptable and available." (Section 1263.320 Code of Civil Procedure) The determination of just compensation does not reflect any consideration of or allowance for relocation assistance and payments to which you may be entitled to receive under applicable State or Federal Law or of the City's agreement to pay certain settlement costs. This summary of the basis of the amount offered as just compensation is presented in compliance with State, and where applicable, Federal Law. Attached is an Appraisal Summary Statement including information pertinent to our offer to acquire the property. In the event you are the owner of a business conducted on the property being acquired by the City, you may be entitled to compensation for loss of goodwill, if any, if you are able to make a showing of such loss pursuant to the requirements of California Code of Civil Procedure Section 1263.510. For your information, Section 1263.510 is reprinted below in its entirety. (A) The owner of a business conducted on the property taken, -'or on the remainder if such property is part of a larger parcel, shall be compensated for loss of goodwill if the owner proves all of the following: (1) The loss is caused by the taking of the property or the injury to the remainder. (2) The loss cannot reasonably be prevented by relocation of the business or by taking steps and adopting procedures that a reasonably prudent person would take and adopt in preserving the goodwill. (3) Compensation for the loss will not be included in payments under Section 7262 of the Government Code. (4) Compensation for the loss will not be duplicated in the compensation otherwise awarded to the owner. (B) Within the meaning of this article, "goodwill" consists of the benefits that accrue to a business as a result of its location, reputation for dependability, skill or quality, and any other circumstances resulting in probable retention of old or acquisition of new patronage." APPRAISAL SUMMARY STATEMENT Project Name: Extension of Golden Valley Road. Property Owner: Maria A. Lopez Property Address: No situs address; property located west of Sierra Highway, Santa Clarita, California. Assessor's Parcel Number: 2836-020-042 Legal Description: Portion of the Southeast 1/4 of the Southeast 1/4 of Section 30, Township 4 North, Range 15 West. Site Area: 0.30± acres, per Assessor's mapping, or 13,068+ square feet. Improvements to be Acquired: None. Zoning: RL (residential -low). Interest Being Valued: APPROACH Fee simple. YES NO Market Data X Cost/Data Reproduction X Income X Total Just Compensation: $3,275.