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Home My WebLink About2001-10-09 - AGENDA REPORTS - GVR ACQUISITION (2)CITY OF SANTA CLARITA AGENDA REPORT PUBLIC HEARING DATE: October 9, 2001 City Manager Approval: Item to be presented by: kobert G. Newman SUBJECT: GOLDEN VALLEY ROAD RIGHT-OF-WAY ACQUISITION DEPARTMENT: Transportation & Engineering Services RECOMMENDED ACTION City Council conduct the public hearing, receive the staff report, and review the evidence presented, including public comments and any written comments received; and adopt a resolution authorizing the commencement of eminent domain proceedings to acquire a portion of a larger parcel, and easements for road, slope, and construction purposes, for the construction of Golden Valley Road. City Council direct staff to transfer $750,000.00 from Golden Valley Road Interchange, Project No. 53005301-8001, to Golden Valley Road Phases II and III, Project No. 53006301-8001; and consistent with the commencement of eminent domain proceedings, authorize staff to place a deposit with the Court for an amount not to exceed the appraised fair -market value of the subject parcel, subject to City Attorney approval. BACKGROUND A Development Agreement between Santa Clarita Business Park (SCBP) and the City was approved by the 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 (GVR) within Tract No. 42670-02 and southerly to Sierra Highway for applicable Bridge and Thoroughfare (B&T) credit. 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 purchased property along the Golden Valley Road corridor, north of Sierra Highway, with plans to construct a new high school at this location. Plans for this new school facility increased the urgency to start construction on the road to access the site. The School District Adopted: q Agenda Item: /D GOLDEN VALLEY ROAD RIGHT-OF-WAY ACQUISITION October 9, 2001— Page 2 agreed to provide any necessary easements through their property for the road construction, and a joint Environmental Impact Report (EIR) was processed through the City for the grading of the school site and the road construction. It was determined to be in the best interest to all parties to revise the Development Agreement between SCBP and the City to make provisions for constructing GVR in phases. The City would undertake GVR Phase I, which was determined to be the section from Sierra Highway to north of the future Via Princessa and Golden Valley Road intersection. SCBP would be responsible to build Phase III, from the limits of Phase I to Redview Drive and Phase II, from Redview Drive to the northerly tract limits, south of Golden Triangle Road. The City and the School District entered into a funding agreement to grade the school site and construct GVR Phase I, which was recently completed. Subsequently, the Development Agreement was amended, the City has taken over Phase III, and a contract has been awarded. The construction corridor for Golden Valley Road from Sierra Highway to Golden Triangle Road contains 55 parcels under 20 ownerships. Staff worked with the public agencies that own 22 parcels and are currently processing the deed transfer documents. Additionally, there are 16 separate private ownerships that include 33 separate parcels. The owners of two small parcels near Sierra Highway agreed to sell their property. The owner of 15 separate parcels affected by the road construction 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. All but five (5) cases have been resolved. A court date is scheduled in April 2002. Santa Clarita, L.L.C. (SCLLC), the owners of the property commonly known as Porta Bella, previously agreed to provide the requested easements. On April 5, 2000, SCLLC granted the City a license in the form of an Access Agreement to construct GVR on the Porta Bella property. This agreement was utilized to construct portions of GVR Phase I, which included the UXO clearance for DTSC throughout the limits of Phase I and Phase III. Phase I was completed in May 2001. On July 10, 2001 the City Council awarded a contract for GVR Phase III. On July 23, 2001, the City received a letter from Santa Clarita, L.L.C. through the managing member, Remediation Financial, Inc., indicating that consideration to terminate the Access Agreement was imminent. Considering the commitment to completing the GVR Phase III project within targeted completion dates and the impacts of the loss of daylight hours and impending rainy season, a Notice to Proceed was issued for September 17, 2001 that allowed the contractor to begin mobilizing, and construction commenced on September 24, 2001. The City then retained an acquisition consultant to prepare an appraisal of the property. The consultant completed the preparation of the appraisal for the property considered in this action. On September 21, 2001, an offer of $555,100.00 was made to Santa Clarita, L.L.C. through the managing member, Remediation Financial, Inc., to purchase the property required to construct Golden Valley Road. The offer, which is attached, was faxed and sent by certified mail. GOLDEN VALLEY ROAD RIGHT-OF-WAY ACQUISITION October 9, 2001— Page 3 The City Council must now consider condemnation of 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 resolution. The City Attorney will file the necessary condemnation immediately. ALTERNATIVE ACTION 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 without the requirement of the owner to dedicate. 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 within 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. The appraised fair -market value of the subject property has been estimated to be $558,100.00. Pending City Council's approval of a budget transfer of $750,000.00 from the Golden Valley Road Interchange, Project No. S3005301-8001, to Golden Valley Road Phases II and III, Project No. S3006301-8001, sufficient funds are available at this time. In the event that the City Council adopts the resolution authorizing the commencement of eminent domain proceedings, staff will place a deposit with the Court for an amount not to exceed the appraised fair -market value of the subject parcel, subject to City Attorney approval. ATTACHMENTS Location Map Resolution with associated: Settlement Offer Appraisal Summary Exhibits RGN:JJS:vjj S:\TES\COUNCIL\CNDMAGNDpb 10W1.D0C CITY OF SANTA CLARITA NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN: A Public Hearing will be held before the City Council of the City of Santa Clarita in the City Hall Council Chambers, 23920 Valencia Blvd. I" Floor, Santa Clarita California, on the 9`h day of October, 2001, at or after 6:00 p.m. to consider the adoption of a Resolution of Necessity for acquisition by eminent domain of fee ownership of certain real property for public road purposes and all uses appurtenant thereto. The project for which the acquisition of the interest so stated hereon is the public road to be known as Golden Valley Road northerly of Sierra Highway. Proponents, opponents, and any interested persons may appear and be heard on this matter at that time. Further information may be obtained by contacting the Transportation & Engineering Services Department, Santa Clarita City Hall, 23920 Valencia Blvd. Third Floor, Santa Clarita, CA 91355, (661) 286-4089. If you wish to challenge this action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council, at, or prior to, the public hearing. Dated: September 26, 2001 Sharon L. Dawson, CMC City Clerk Publish Date: S:\TES\ENG-CIVI\GOLDEN\ROW\notice926.doc