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HomeMy WebLinkAbout2008-11-25 - AGENDA REPORTS - ACQUISITION OF 24509 SPRUCE ST (2)Agenda Item: rzc '94 -45 CITY OF SANTA CLARITA JOINT CITY COUNCIL / REDEVELOPMENT AGENCY AGENDA REPORT City Manager Approval: PUBLIC HEARING Item to be presented by: Paul Brotzman DATE: November 25, 2008 SUBJECT: RESOLUTION OF NECESSITY FOR THE ACQUISITION OF REAL PROPERTY LOCATED AT 24509 SPRUCE STREET, APN 2831-006-032 FOR PROJECT NO. F2007390 DEPARTMENT: Community Development RECOMMENDED ACTION City Council: No action required. Redevelopment Agency: 1. Conduct a public hearing and adopt a Resolution of Necessity authorizing the acquisition of real property located at 24509 Spruce Street (Assessors Parcel No. 2831-006-0032) by condemnation for the development of the proposed public library improvements in Downtown Newhall. 2. Approporiate $806,000 from available funds in the Redevelopment Agency fund balance to Account 13400-5201.004. 3. Authorize the Executive Director or designee to deposit $790,000 from Account 13400-5201.004 to the Los Angeles County Superior Court to initiate immediate taking proceedings; to approve additional payments up to a maximum amount of $16,000 for costs related to the purchase, and to execute all required documentation to complete the acquisition of 24509 Spruce Street, subject to Agency Attorney approval. BACKGROUND Downtown Newhall Specific Plan: Mooed, 'Weso.'2 )A The Redevelopment Agency of the City of Santa Clarita has been designated as the Agency in the City of Santa Clarita to carry out the functions and requirements of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.) and to implement its Redevelopment Plan for the elimination and mitigation of blighted areas. The subject property, 24509 Spruce Street is located within the Newhall Redevelopment Project Area. As an active and engaged partner in the revitalization of East Newhall, the Agency assisted in the implementation of the Downtown Newhall Specific Plan ("DNSP"), which was adopted on December 22, 2005. The primary purpose of the DNSP is to revitalize and transform the present commercial character of Downtown Newhall into an attractive, mixed use, pedestrian oriented, economically vital center as envisioned in the Specific Plan. The revitalization plan developed in the DSNP consists of 50 main blocks for residential, commercial and office development and civic buildings and envisions, among other elements, a set of civic and community facilities that enable the public life of all people there, as well as educational facilities that promote life-long learning. Project Site As noted in the DNSP, one of the several initiatives to enhance Downtown Newhall is the construction of a new, visually prominent public library at the northerly terminus of Main Street. This is one of two important buildings that will visually anchor and define the ends of Main Street. This new library will draw from beyond Newhall and strengthen the greater community's presence and awareness of the Downtown Newhall area, as well as, attract a wide range of age groups to the Downtown Newhall area. The Agency has been successful in acquiring by negotiation most of the property needed to construct the new library. Mr. Fitterer's property at 24509 Spruce Street ("Property") is the final parcel that must be obtained by the Agency before it will be possible to begin construction on the new library. Currently, the Property is occupied by the "Just Passing Through" piercing studio. Property Negotiations The Agency is required by state law to make a reasonable effort to acquire property by negotiation. In September of 2007, staff was authorized to enter into negotiations with Thomas Fitterer, Trustee for the property owner, Fitterer Retirement Trust dated September 28, 2001, for the purchase of the Property. Since September 24, 2007 the Agency has been engaged in negotiations with Mr. Fitterer to purchase the property. To date, staff has been unable to negotiate an acquisition through a negotiated purchase. Therefore, it would be appropriate for the Agency to consider adopting a Resolution of Necessity to initiate eminent domain proceedings to acquire the Property, whose acquisition is necessary to effectuate the DNSP. Property Condemnation Pursuant to Section 19, Article I of the California Constitution, Sections 33391 (b) and 33000 et seq. of California Health & Safety Code, Section 1230.010 et seq., of the California Code of Civil Procedure, the California Redevelopment Law and other authorities, the Agency is authorized to acquire the fee title to the Property by eminent domain, provided certain procedural steps are followed. First, the Agency must make an offer to the owner of the Property, which offer must be transmitted in writing, based upon an appraisal. On September 17, 2008 an appraisal was completed by Valentine & Associates which established the value for just compensation of the property. As required by Section 7267.2 of the California Government Code, an offer to purchase the property was made to the property owner on October 15, 2008 in the amount of said appraisal (a copy of the offer letter is attached as Exhibit A.) This offer was rejected by the owner. Due to the fact that the Agency's offer has not been accepted, it is now necessary that an action in eminent domain be commenced to acquire the Property. Prior to filing the action, the Agency must hold a hearing on a proposed Resolution of Necessity (attached) and provide the owner an opportunity to be heard at that hearing, provided the owner has filed a request to be heard in writing with the Agency prior to the hearing. A Notice of Hearing has been mailed by first class mail to the property owner and states the Agency's intent to consider the adoption of the resolution, the right of each person to appear and be heard on these issues, and the failure to file a written request to appear will result in a waiver of the right to appear or be heard. The required notice to the property owner was provided on November 4, 2008 (a copy of the Notice of Hearing is attached as Exhibit B). The Notice of Hearing was mailed in accordance with the requirements of State law pertaining to eminent domain proceedings. After conducting the public hearing, the Agency must determine whether the public necessity requires that a Resolution of Necessity be adopted authorizing condemnation proceedings for the purpose described therein. Analis The findings, which need to be made, are as set forth in the proposed Resolution of Necessity. As to these findings, staff has the following comments: - 1. That the public interest, convenience and necessity require the proposed project. As set forth above, the Project will serve public purposes of the Redevelopment Plan, including the elimination and mitigation of blight within the Redevelopment Area, through implementation of the revitalization plan developed in the DNSP. A primary purpose of the DNSP is' to transform the present commercial character of Downtown Newhall into an attractive, mixed use, pedestrian oriented, economically vital center. A key component of the DNSP is the construction of a new, visually prominent public library at the northerly terminus of Main Street, which will announce to Newhall and the greater community of Santa Clarita the civic importance of the revitalized r Downtown, providing more reasons for people to visit Downtown Newhall. This replanning, redesigning and redevelopment of Downtown Newhall meets the goals and objectives of the Agency's Redevelopment Plan to revitalize the Project Area. 2. That the project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury. The DNSP envisions two important public buildings, the public library and a museum, that will visually anchor and define the ends of Main Street to define and energize it. The location of the new public library will be strategically located at the northern terminus of Main Street. It is the opinion of staff that a public library on that site would achieve the greatest public good while resulting in the least private injury by implementing the goals and objectives of the DNSP, the Redevelopment Plan and the California Redevelopment Law. The acquisition of the Property will be the highest and best use for the Property. Moreover, the Agency has been successful in acquiring by negotiation most of the property needed to construct the new library. The Property is the final parcel that must be obtained by the Agency before it will be possible to begin construction on the new library. At this point, any other proposed location will result in greater private injury because more property would need to be acquired. 3. That the Property is necessary for the project. The Property is situated within that portion of the DNSP designated as necessary for the construction of the new public library. Given the fact that the Property is the final parcel that must be obtained by the Agency before construction may begin on the new library, an alternate location for the library would not at this point be feasible. 4. That the Agency has satisfied the provisions and complied with all requirements of the California Environmental Quality Act ("CEQA") for the project. On November 8, 2005, per Resolution 05-133, the City Council certified a Final Environmental Impact Report for the Downtown Newhall Specific Plan. The proposed public library project, for which the site acquisition is necessary was discussed in those environmental documents. Therefore, the City has satisfied its obligation under the California Environmental Quality Act ("CEQA") to conduct ' an environmental analysis of the proposed acquisition. Thus, further environmental review is not necessary. In addition, this acquisition has been found in compliance with Government Code Section 65402 regarding general planconsistency. Questions relating to value of the property and disposition of the business are not relevant to this proceeding. However, that does not mean that negotiations' for the acquisition of the Property are at an end. As is the case for every proposed -condemnation, staff will continue to negotiate with the property owner to reach a settlement. At this time, however, staff believes that it is important to move the official acquisition processes forward to facilitate the implementation of the goals of the Downtown Newhall Specific Plan by adding needed public facilities such as a public library to the Project Area and removing blighted conditions. A map of the property site is attached as Exhibit C. ALTERNATIVE ACTIONS Other action as determined by the Agency. FISCAL IMPACT 1. Approporiate $806,000 from available funds in the Redevelopment Agency fund balance to Account 13400-5201.004. 2. Authorize the Executive Director or designee to deposit $790,000 from Account 13400-5201.004 to the Los Angeles County Superior Court to initiate immediate taking proceedings; to approve additional payments up to a maximum amount of $16,000 for costs related to the purchase, and to execute all required documentation to complete the acquisition of 24509 Spruce Street, subject to Agency Attorney approval. ATTACHMENTS Resolution Offer Letter - Exhibit A Notice of Hearing - Exhibit B Aerial Map - Exhibit C RESOLUTION NO. 08- A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARITA FINDING AND DETERMINING BY VOTE OF TWO-THIRDS OR MORE OF ITS MEMBERS THAT THE PUBLIC INTEREST, CONVENIENCE, AND NECESSITY REQUIRE THE ACQUISITION OF CERTAIN PROPERTY FOR PUBLIC PURPOSES FOR THE CONSTRUCTION OF THE NEWHALL LIBRARY THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARITA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Redevelopment Agency of the City of Santa Clarita (hereafter "Agency"), after consideration of the Agenda Report, staff presentation, discussion, oral testimony and evidence presented at the public meeting on November 25, 2008 hereby finds, determines and declares as follows: a. The public interest, convenience, and necessity require the acquisition by Agency of certain real property ("Property") located within the City of Santa Clarita, the County of Los Angeles, State of California for public use relative to the construction of a new public library in the Downtown Newhall Redevelopment Project Area ("Project"); b. The Property to be acquired is described and depicted on Exhibit "A" attached hereto and incorporated herein by this reference; C. The proposed Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; d. The taking of the Property is necessary for the stated Project, and such taking is authorized by Section 19, Article I of the California Constitution, Sections 33391 (b) and 33000 et seq. of California Health & Safety Code, Section 1230.010 et seq., of the California Code of Civil Procedure, the California Redevelopment Law and other applicable law; e. The offer to purchase required by California Government Code Section 7267.2 has been made to the owner of the property; f. The AGENCY has complied with all conditions and statutory requirements necessary to exercise the power of eminent domain (the "right to take") to acquire the Property, as well as any other matter regarding the right to take said Property by eminent domain; and g. The necessary notification of the Notice of Hearing, as required by the California Code of Civil Procedure, Sec. 1245.235 was given. SECTION 2. The Agency Board of the AGENCY hereby declares that it is its intention to acquire said Property in its name in,accordance with the provision of the laws of the State of California with reference to condemnation procedures. SECTION 3. That if any of the area of the Property has been appropriated to some public use, the public uses to which they are to be applied by the Agency, as described above, are more necessary and paramount public uses, pursuant to Code of Civil Procedure Section 1240.610, or at the very least are compatible with the existing public use pursuant to Code of Civil Procedure, Section 1240.510. SECTION 4. That the Property, the acquisition of which is required by said public interests, convenience, and necessity for the purposes set forth in Section 1 hereof, is located within the City of Santa Clarita, County of Los Angeles, State of California. SECTION 5. That the AGENCY has satisfied the provisions and complied with all requirements of the California Environmental Quality Act ("CEQA") for the Project; SECTION 6. Agency Counsel and the firm of Burke, Williams & Sorensen, as special counsel, under the direction of Agency Counsel, are authorized and directed to prepare, institute, and prosecute in the name of the Agency such proceedings in the proper court having jurisdiction thereof as may be necessary for the acquisition of said interest, including filing of an application for an order of immediate possession prior to judgment. SECTION 7. This Resolution shall be effective immediately upon its adoption. SECTION 8. The Agency Secretary shall certify the, adoption of this Resolution and certify this record to be a full, complete and correct copy of the action taken. PASSED, APPROVED, AND ADOPTED this day of , 2008. ATTEST: Agency Secretary 2 Agency Executive Director J a STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Sharon L. Dawson, MMC, Agency Secretary of the Redevelopment Agency of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the Redevelopment Agency of the City of Santa Clarita at a regular meeting thereof, held on the day of , 2008, by the following vote of the Agency Board: AYES: AGENCY MEMBERS: NOES: AGENCY MEMBERS: ABSENT: AGENCY MEMBERS: F. 3 ( 3 AGENCY SECRETARY STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) 0 CERTIFICATION OF REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARITA RESOLUTION I, Sharon L. Dawson, Agency Secretary of the Redevelopment Agency of the City of Santa Clarita, do hereby certify that this is a , true and correct copy of the original Resolution No. 08-, adopted by the Redevelopment Agency of the City of Santa Clarita of the City of Santa Clarita, California on 2008, which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California, this day of , 2008. Sharon L. Dawson, MMC Agency Secretary By Susan Coffman Deputy City Clerk rd October 15, 2008 CERTIFIED MAIL Thomas M. Fitterer, Trustee Fitterer Retirement Trust 18410 Irvine Blvd., Suite A Tustin, CA 92789-3438 Subject: Offer to Purchase the real property located at 24509 Spruce Street, Santa Clarita, California APN 2866-006-800 Dear Mr. Fitterer: The Santa Clarita Redevelopment Agency (SCRDA) is planning for the construction of a new library in Downtown Newhall. This important project is a top priority of the Redevelopment Agency. Your property located at 24509 Spruce Street, Santa Clarita ("Property") is required for the successful completion of this project. The SCRDA has obtained an independent appraisal which has determined the fair -market value of the just compensation of the Property to be $790,000. - The Redevelopment Agency is offering, subject to Agency Board approval, the full amount reflected in the appraisal as the fair -market value for the Property. The basis for that determination as just compensation for the Property is explained in the enclosed summary of the Complete Appraisal Summary Report. This appraisal report includes the highest and best use analysis, comparable sales, and the approaches to value considered in the process of determining the just compensation. Should you be willing to sell your Property for SCRDA's offered amount, the SCRDA will pay all usual fees, charges, and costs that arise out of this escrow. Please note that this offer is subject to the ratification of an agreement for purchase and sale by the Agency Board for the Redevelopment Agency, the adoption of a resolution of necessity, or both. Please be advised that you are entitled to a reasonable amount, not to exceed five thousand dollars ($5,000.00), for an appraisal prepared by an independent appraiser licensed by the Office of Real Estate Appraisers. Please be advised that the offer stated above presumes the Property is free of hazardous substances (as that term is defined under California Health and Safety Code Section 33459(b)) and all other subsurface soil contamination. In the event that any facts or circumstances arise which indicate the presence of such subsurface contamination, the SCRDA reserves the right to rescind or modify the offer stated above at any time prior to its written acceptance to reflect the estimated or actual costs to remediate the Property to the satisfaction and approval of all applicable regulatory agencies. Further, in the event the SCRDA discovers such soil contamination after it acquires the Property, the SCRDA reserves all rights and remedies it may have against you and all prior owners to seek damages or other Mr. Fitterer October 15, 2008 Page 2 obligations the SCRDA incurs as a result of the contamination, as may be permitted or authorized by any law, including but not limited to CERCLA (42 U.S.C. `9601 et seq.), the Hazardous Waste Control Law (California Health and Safety Code 25100 et seq.), the Porter Cologne Act (California Water Code 13000 et seq.), California Health and Safety Code 25280 et seq., 33459 et seq., and provisions of Proposition 65. If this, offer is acceptable to you, please so indicate to the undersigned in writing by 3:00 p.m. on Friday, November 14, 2008. Upon your acceptance, the SCRDA will prepare and forward to you an agreement to complete the transaction. Upon receipt of a signed agreement, the matter will be reviewed by the Agency Board, which has final ratification authority. In addition, you should be aware that in the event negotiations fail to result in an agreement, the SCRDA will proceed with the acquisition of the Property through eminent domain. The Public Hearing for the Resolution of Necessity will be held at City Hall, 23920 Valencia Blvd., Santa Clarita, California, on November 25, 2008. If for any reason you do not accept the SCRDA's offer, please be advised that the matters included within this letter, as well as the enclosed summary statement, fall within the provisions of, inter alia, Section 1152 and 1154 of the California Evidence Code, Section 1255.060 of the Code of Civil Procedure, and Sections 7267.1 and 7267.2 of the Government Code, and are not admissible in evidence in any eminent domain proceeding, which may be subsequently instituted for the acquisition of the present property interests, or in any other action. If you have any questions regarding this offer or have information regarding the value of your property, please contact me at (661) 255-4365 or Barbara Stoll, Acquisitions Specialist at (661) 286-4046. Sincerely, Paul Brotzman Director Community Development Enclosure BS: s/pr/open space & real property/renee/fitterer — offer letter cc: Chris Price, Assistant City Engineer Harry Corder, Senior Engineer Armine Chaparyan, Redevelopment Manager ACCEPTANCE The foregoing offer of the Santa Clarita Redevelopment Agency for the acquisition of the property described in enclosed appraisal report is hereby accepted: Dated: Signature Thomas M. Fitterer, Trustee Fitterer Retirement Trust REGARDING SUBJECT PROPERTY: FITTERER 24509 SPRUCE STREET SANTA CLARITA APN: 2836-006-032 $789,000 CITY OF SANTA CLARITA CITY COUNCIL and SANTA CLARITA REDEVELOPMENT AGENCY NOTICE OF PUBLIC HEARING Pursuant to Health & Safety. Code Section 33679 the Santa Clarita Redevelopment Agency and the City of Santa Clarita will hold public hearings on the expenditure of Agency funds to be used for the purchase of land, Block 10, Lots 9, 10 and 11, of the Town of Newhall, City of Santa Clarita, State of California, commonly known as 24509 Spruce Street, Santa Clarita, CA for the construction of a public library. NOTICE IS HEREBY GIVEN: A Public Hearing will be held before the City Council of the City of Santa Clarita and the Santa Clarita Redevelopment Agency in the City Hall Council Chambers, 23920 Valencia Blvd., 1St Floor, Santa Clarita, California on the November 25, 2008, at 6:00 pm, or as soon after as possible, to consider the purchase proposed above. Proponents, opponents, and any interested persons may appear and be heard on this matter at that time. Should you have any questions regarding the proposed purchase, please contact Renee Stoll at (661) 286-4182. 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: November 12, 2008 Sharon L. Dawson, MMC City Clerk Published on: November 17, 2008 November 24, 2008