HomeMy WebLinkAbout2009-01-27 - AGENDA REPORTS - LEASEHOLD INTEREST VIACOM CBS (3)Agenda Item: CC/SCRPA '"
CITY OF SANTA CLARITA
JOINT CITY COUNCIL / REDEVELOPMENT AGENCY
AGENDA REPORT
City Manager Approval: a)a
PUBLIC HEARING Item to be presented by: Alex Hernandez
DATE: January 27, 2009
SUBJECT: RESOLUTION OF NECESSITY FOR THE ACQUISITION OF THE
LEASEHOLD INTEREST AND IMPROVEMENTS RELATED TO
THE OUTDOOR ADVERTISING STRUCTURE OWNED BY
VIACOM/CBS OUTDOOR, INC., LEASE #900890 LOCATED AT
24535 MAIN STREET, SANTA CLARITA, CA FOR PROJECT
NO. F2007390 - NEWHALL LIBRARY
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
leasehold interest and improvements related to the outdoor advertising structure owned by
Viacom/CBS Outdoor, Inc., Lease #900890 located at 24535 Main Street by condemnation for
the development of the proposed public library improvements in downtown Newhall.
2. Appropriate $44,000 from available funds in the Redevelopment Agency fund balance to
Account 13400-5201.004.
3. Authorize the Executive Director or designee to deposit $44,000 from Account
13400-5201.004 to the Los Angeles County Superior Court to initiate immediate taking
proceedings; and to execute all required documentation to complete the acquisition of the
leasehold interest and improvements related to the outdoor advertising structure owned by
Viacom/CBS Outdoor, Inc. located at 24535 Main Street, subject to Agency Attorney approval.
BACKGROUND
Downtown Newhall Specific Plan:
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 outdoor billboard lease #900890 owned by Viacom/CBS, Outdoor, Inc. is located
within the Newhall Redevelopment Project Area.
As an active and engaged partner in the revitalization of 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. At the time the Agency purchased the property located at 24535 Main
Street the subject outdoor advertising structure was already in existence.
The billboard has an existing lease in place since December 2004. The property purchase and
sale agreement allows the billboard to remain under the terms of the prior property owner's lease
agreement. Before it will be possible to begin construction on the new library, the Agency must
purchase the leasehold interest (goodwill value & structure) for the subject outdoor advertising
structure.
Leasehold Interest Neizotiations
The Agency is required by state law to make a reasonable effort to acquire the leasehold interests
by negotiation. In July 2008, staff was authorized to enter into negotiations with
Viacom/CBS Outdoor, Inc. for the acquisition of the leasehold interest and improvements related
to the outdoor advertising structure. Following completion of the required appraisal, two
seperate offers to purchase the leasehold interest and improvements were mailed to the owner.
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 leasehold interests and improvements
related to the outdoor advertising strucutre, lease #900890, owned by Viacom/CBS Outdoor,
Inc., as this 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 leasehold interest and improvements related to the outdoor advertising
structure owned by Viacom/CBS Outdoor, Inc. by eminent domain, provided certain procedural
steps are followed.
First, the Agency must make an offer to the owner of the outdoor billboard, which offer must be
transmitted in writing, based upon an appraisal. On August 13, 2008 an appraisal was
completed by Donna Desmond Associates which established the value for just compensation of
the leasehold interest value, inclusive of goodwill and structure value. A copy of the appraisal is
provided as Exhibit A.
As required by Section 7267.2 of the California Government Code, an offer to purchase the
leasehold interest was made to the property owner on August 25, 2008 (Exhibit B) and again on
October 6, 2008 (Exhibit C) in the amount of said appraisal. This offer was not accepted 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 leasehold interest and improvements related to the
outdoor advertising structure. 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
January 13, 2009 (a copy of the Notice of Hearing is attached as Exhibit D). 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.
Analysis
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
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 leasehold interest and
improvements related to the outdoor advertising structure will contribute to the highest and best
use for the Property. Moreover, the Agency has been successful in acquiring by negotiation most
of the property and all other related property interests required to construct the new library. The
leasehold interest and improvements related to the subject outdoor advertising structure
represents one of the two remaining property interests which must still be obtained by the
Agency before it will be possible to begin construction on the new library. At this point, any
other proposed location for the Library 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 subject outdoor advertising sign is located on one of the most important
parcels within those now owned by the Agency and purchased for the purpose of constructing 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, 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 plan consistency.
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 process 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.
ALTERNATIVE ACTIONS
Other action as determined by the Agency.
FISCAL IMPACT
Approporiate $44,000 from available funds in the Redevelopment Agency fund balance to
Account 13400-5201.004.
TTACHMENTS
Resolution
Appraisal - Exhibit A
First Offer Letter - Exhibit B
Final Offer Letter - Exhibit C
Notice of Hearing - Exhibit D
RESOLUTION NO. RDA
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
SANTA CLARITA, CALIFORNIA, 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
INTERESTS 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 January 27, 2009 hereby finds,
determines and declares as follows:
a. The public interest, convenience, and necessity require the acquisition by Agency
of certain property interests, which includes the leasehold interest and improvements
related to the outdoor advertising structure owned by Viacom/CBS Outdoor, Inc.
("Interests") which is 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
Newhall Redevelopment Project Area ("Project'); and
b. The Interests to be acquired are located at 24535 Main Street, Santa Clarita, CA
and are further described on Exhibit "A" attached hereto and incorporated herein by this
reference; and
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; and
d. The taking of the interest is necessary for the stated Project, and such taking is
authorized by Section 19, Article I of the California Constitution, Sections 33391 (b) and
133000 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; and ,
e. The offer to purchase required by California Government Code Section 7267.2
has been made to the owner of the property; and
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
Interest, as well as any other matter regarding the right to take said Interest by eminent
domain; and
14r. 6)
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 Interest 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 Interest 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 Interest, 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 , 2009.
Agency Secretary
Agency Chair
7
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 , 2009, by the following vote of the Agency Board:
AYES: AGENCY MEMBERS:
NOES: AGENCY MEMBERS:
ABSENT: AGENCY MEMBERS:
AGENCY SECRETARY
3 �� g
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA)
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 onginal Resolution No.
09-, adopted by the Redevelopment Agency of the City of Santa Clarita of the City of Santa
Clarita, California on 2009, which is now on file in my office.
Witness my hand and seal of the City of Santa Clarita, California, this day of
52009.
Sharon L. Dawson, MMC
Agency Secretary
By
Susan Coffinan
Deputy City Clerk
4
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V—
APPRAISAL SUMMARY STATEMENT
IDENTIFICATION: CBS Outdoor Billboard Lease # 900890,
Face Nos. 14227A & 14228A
PROPERTY OWNER: CBS Outdoor, Inc.
PROPERTY LOCATION: San Fernando Road South of 11 h Street, Santa Clarita,
California
DATE OF VALUE August 13, 2008
PROJECT Library Project
Description of the Board
The subject outdoor advertismg sign (the "Board") is located on San Fernando Road Just south of 11`h Street in Santa
Clarita , California. The Board is owned and operated by CBS Outdoor ("CBS"). The Board is an illuminated
double-faced 30 -sheet poster billboard with advertising faces measuring 12' x 25'. CBS identifies the Board as
lease number 900890 with panel numbers 14227A and 14228A. The north panel shows southbound traffic on San
Fernando Road and westbound traffic on '11'h Street. The south panel shows to northbound traffic on San Fernando
Road San Fernando Road is a north -south arterial running through the old downtown area of Santa Clarita. 11`h
Street is a two lane street which runs for only four blocks between Newhall Avenue and San Fernando Road.
According to the City of Santa Clarita Traffic Department, no current traffic counts exist for either San Fernando
Road or 11`h Street near this site. Both faces have good visibility and read time with no obstructions The Board's
panels are aligned back-to-back and are supported by a steel monopole The Board is in good condition with no
visible deferred maintenance.
The Board is subject to CBS lease number 900890, between Viacom Outdoor, predecessor, in interest to CBS, and
William Clark. The lease agreement was executed on December 1, 2004 and was effective January 1, 2005. The
term of the lease was for twenty years, continuing upon expiration for successive like terms. The annual rental was
scheduled at $3,720. The property that houses the board is utilized by an automotive aftermarket retailer. The
Board'appears to be consistent with continued commercial use of the property
Advertising contracts and revenue data for the Board was requested from CBS which, to date, has not been supplied.
Market research indicates that monthly net paid rates for 30 -sheet posters in the Los Angeles County area range
from $450 to $550. Occupancy rates typically average 80% to 85%, equivalent to ten paid months per year.
Development of Financial Performance
A pro forma operating statement for the Board was developed based on market information relative to advertising
rates for comparable boards, the lease agreement, and market data relative to expense levels. The pro forma income
statement is exhibited on Schedule 1 attached hereto. The bases for the income and expense levels are outlined in
the accompanying notes
Valuation Methodology
Market research indicates that outdoor advertising signs transfer based upon multiples of cash flow and gross
income. Numerous boards in the Western United States have transferred in the most recent five years. According to
market sources, industry publications, SEC filings and transfer agreements, multiples of between 8 and 14 times
cash flow and 5 to 10 times gross income have been paid for outdoor advertising plants. The low end of the range is
typically applied to pro forma or projected income streams. The higher end of the range is typically paid for'
underperforming outdoor advertising assets based upon trailing twelve months of income. Numerous transactions
were reviewed that have occurred in California between 2003 and 2006. These transactions indicate multiples
within the abovementioned ranges.
LA #4815-3283-2002 v
In 2003, Lamar Advertising Company ("Lamar") purchased the outdoor advertising assets of Adams Advertising,
Inc. ("Adams") and OMG, Inc. ("OMG"). The plants of both companies were predominantly located in Riverside
and San Bernardino Counties and were comprised solely of bulletins. According to Diane Adams, former owner of
Adams, and other sources, Lamar purchased 251 bulletins for $40,136,502 based on trailing twelve month gross
income of approximately $5,200,000 and a multiplier of 7.7. According to OMG and other sources, Lamar
purchased 259 bulletins for $40,000,000 on trailing twelve month gross income of approximately $5,000,000 and a
multiple of 8 0. According to Lamar, at the time of acquisition, the advertising rates contracted by Adams and OMG
were below market levels. Subsequent to the acquisition, Lamar was able to increase the gross income generated by
the boards.
During 2003, an outdoor advertising company acquired a number of boards in the Los Angeles area. The sites were
all considered "second tier" with respect to quality of market, with all faces showing to surface streets. The
multiples paid in these transactions averaged 5 times pro forma gross income and 7 3 times pro forma cash flow.
Subsequent to acquisition, these boards performed far below projected income levels, resulting in actual acquisition
multiples of between 18 times and 35 tunes gross income.
In 2004, an outdoor advertising company purchased the assets of a small billboard company in Northern California
based on a trailing twelve month gross income multiple of 7 8. The acquired bulletins are visible to a highly
traveled interstate freeway in the San Francisco Market Area The boards that were part of this transaction are
considered "marquee quality." Subsequent to the acquisition of the bulletins, the company was able to increase
gross income and profitability of the boards.
During 2005 and 2006, there was very little market activity in California In the first quarter of 2005, a small
outdoor advertising company purchased fourteen bulletin faces in the Bakersfield area showing predominantly to
Highway 99 based on 7 times pro forma gross income. In early 2007, a large billboard company purchased 13
billboards showing to Highway 101 in Northern California. The gross income multiple paid in the transaction for
billboard assets only was 6.11 based on pro forma income
Some of the above market multiples are derived from the sale of entire plants or billboard companies which often
encompass hundreds of boards, therefore diversifying risk to the entire investment. Conversations with individuals
involved in these transactions indicate that when only a few boards are transferred, the multiple may need to be
adjusted for the relative risk of the futufe continuity of the ground leases. If the continuity of the leases is in
question, a discount should be applied to the multiple.
The lease agreement for the Board runs through December 31, 2024, indicating excellent security of occupancy.
However, the Board's annual rent of $3,720 is currently equivalent to 37% of its projected gross income This is
considered high, with rent typically running 20% to 25% of gross income for a poster panel sized billboard. The
quality of the individual Board, in regard to traffic exposure is considered average. The economic malaise will
likely result in stagnant growth in income generated by the Board through the next twelve to eighteen months.
Based upon the foregoing, it is our opinion that the appropriate multiples given the Board's qualities and risk factors
is 13 times cash flow and 6 5 times gross income The development of the Board's income streams and the
implementation of the valuation methodologies are exhibited on Schedule 1 attached hereto.
Valuation Conclusion
Applying these multiples to the Board's cash flow and gross income indicates the following correlated value as of
August 13, 2008•
Lease 900890
Value of
Structure &
Structure Value + Goodwill Value = Goodwill
$ 26,500 $ 17,500 44 000
LA #4815-3283-2002 v1
Schedule 1
CBS Outdoor
Lease # 900890, Panel #s 14227A & 14228A
San Fernando Road South of 11th Street
Summary of Valuation Methodology
Cash Flow Multiplier Method
Income (Net of Agency Commission)
Expenses
Rent
Illumination
Posting and Installation
Property Tax
Maintenance
Sales and Marketing
General and Administrative
Total Expenses
Net Cash Flow (EBITDA)
Cash Flow Multiple
Indicated Leasehold Interest Value
Rounded
Gross Income Multiplier Method
Income
.'Multiplier
Indicated Leasehold Interest Value
Rounded
Correlated Leasehold Interest Value
Allocation of Value
Structure Value (rounded)
Goodwill Value
LA #4815-3283-2002 v I
$ 9,588 (1)
3,720
(2)
1,440
(3)
800
(4)
265
(5)
660
(6)
431
(7)
240
(8)
7,556
2,032
X 13
(9)
$ 26,414
$ 26,000
$ 9,588
X 6 5
(9)
$ 62,322
$ 62,000
$ 44,000 (10)
26,500 - (11)
17,500 (12)
Schedule 1 — Cont'd
CBS Outdoor
Lease # 900890, Panel #s 14227A & 14228A
San Fernando Road South of 11th Street
Summary of Valuation Methodology
(1) Gross income is based on an assumed net paid rate of $470 per month and a paid occupancy
rate of 85% The paid rate and occupancy rate are based on DDA's market research of
comparable board rates I
(2) Annual rent is included per the lease agreement.
(3) Illumination expense is included at $60 per month based on interviews with industry participants
(4) Posting and installation expense is estimated at $80 per install, with 10 annual installs per face.
(5) Property tax is based on 1 % of structure value as indicated by Caltrans Schedule A, Payment for
Poster Panel Removal, dated February 2007
(6) Maintenance expense is estimated at $55 per month based on DDA's analysis
(7) Sales and marketing expense is based on CBS's in-house rate of 4 5% of gross income
(8) General and administrative expense is estimated at 2 5% of gross income based on DDA's
market research and review of numerous outdoor advertising companies profit and loss
statements
(9) Market multiples are based on DDA's market research of the transfer of comparable boards
throughout California
(10) The leasehold interest is correlated giving equal weight to each method
(11) Based on Caltrans Schedule A, Payment for Poster Panel Removal, dated February 2007,
(12) Goodwill value is leasehold interest value minus structure value
I
LA #4815-3283-2002 vl
August 25, 2008
Mr. Robert Harbin
CBS Outdoor, Inc.
a/k/a Viacom Outdoor, Inc.
1695 Eastshore Highway
Berkeley, CA 94710
CERTIFIED MAIL
Subject- Offer to Purchase Viacom Outdoor Billboard Lease # 900890,
Face Nos 14227A & 14228A
San Fernando Road South of 11 `h Street, Santa Clarrta, California
Dear Property Owner:
As part of a Library Project (hereinafter, "Project"), the Santa Clarrta Redevelopment
Agency ("Agency") requires the acquisition and removal of that certain outdoor 12' x 25'
advertising sign ("Board") located on San Fernando Road south of 1 1 `h Street in Santa
Clarrta, California A precise description of the Board is included in the Appraisal
Summary enclosed herewith.
The Agency has determined that CBS Outdoor owns and operates the Board If you are
not the owner of the Board, please contact us immediately.
The Agency has obtained an appraisal of the fair -market value of the Board, which
includes its structure and goodwill value. The Board was valued on August 13, 2008 by
an independent, professional appraiser. Using a date of valuation of August 13, 2008, the
total dust compensation for the taking of the Board was determined by the appraiser to be
$44,000. The basis for this amount is explained in the attached Appraisal Summary.
This Appraisal Summary is presented in compliance with state laws, and has been
derived from a formal appraisal prepared by the Agency's independent appraiser.
Based on the foregoing, the Agency hereby offers you $44,000 for its acquisition of the
Board, which is the full amount believed by Agency to be dust compensation for Board
and is not less than the approved appraisal of its fair market value. This amount
disregards an decrease or increase in the fair market value of the Board prior to the date
of valuation caused by the public improvement for which the Board is to be acquired for
such public improvement. This offer does not reflect any consideration of or allowance
for any relocation assistance and payments or other benefits, if any, which the owner may
be entitled to receive under an agreement with the Agency.
Please be advised that CBS Outdoor is 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.
If this offer is acceptable to you, please so indicate to the undersigned in writing on or
before September 30, 2008. Upon your acceptance, the Agency will prepare and forward
to you the appropriate documents to complete the transaction This offer is subject to the
ratification of an agreement for purchase and sale by the Agency, the Agency's adoption
of a resolution of necessity, or both.
If for any reason you are not satisfied with this offer of just compensation and have
relevant information regarding the value of the property that you would like the Agency
to consider, we will be happy to do so. In addition, you should be aware that in the event
negotiations fall to result in an agreement, and the
Agency decides to proceed with the acquisition of the property through eminent domain,
a hearing on the Resolution of Necessity will be held at a public meeting before the board
members of the Santa Clanta Redevelopment Agency, at a date to be determined.
If for any reason you do not accept the Agency's offer, please be advised that the matters
included within this letter, as well as the attached summary statement, fall within the
provisions of, inter alfa, 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 Board, or in any other
action.
If you have any questions regarding this offer, or have information regarding the value of
your property, please contact Renee Stoll at 661 28611182.
Sincerely,
SANTA CLARITA REDEVELOPMENT AGENCY
Paul D. Brortman
Director of Community Development
Enclosure
cc Joseph Montes, Esq.
Alan Sozio, Esq.
PDB:AS:lep
s/cd/redevelopment/cbs-viacom outdoor 7267 2 offer Itr carquest billboard(4)
ACCEPTANCE
The foregoing offer of the Santa Clarita Redevelopment Agency for the acquisition of the
CBS/Viacom Outdoor Billboard Lease 4900890 is hereby accepted:
Dated -
Dated:
LA 94815-3283-2002 vi
r ,
October 6, 2008
Mr Robert Harbin
CBS Outdoor, Inc.
a/k/a Viacom Outdoor, Inc.
1695 Eastshore Highway
Berkeley, CA 94710
CERTIFIED MAIL
Subject- Offer to Purchase Viacom Outdoor Billboard Lease # 900890,
Face Nos. 14227A & 14228A
San Fernando Road South of 11 `h Street, Santa Clarita, California
Dear Property Owner -
As part of a Library Project (hereinafter, "Project"), the Santa Clarita Redevelopment
Agency ("Agency") requires the acquisition and removal of that certain outdoor 12' x 25'
advertising sign ("Board") located on San Fernando Road south of l l`h Street in Santa
Clarita, California. A precise description of the Board is included in the Appraisal
Summary enclosed herewith
The Agency has determined that CBS Outdoor owns and operates the Board If you are
not the owner of the Board, please contact us immediately
The Agency has obtained an appraisal of the fair -market value of the Board, which
includes its structure and goodwill value The Board was valued on August 13, 2008 by
an independent, professional appraiser Using a date of valuation of August 13, 2008, the
total dust compensation for the taking of the Board was determined by the appraiser to be
$44,000 The basis for this amount is explained in the attached Appraisal Summary
This Appraisal Summary is presented in compliance with state laws, and has been
derived from a formal appraisal prepared by the Agency's independent appraiser.
Based on the foregoing, the Agency hereby offers you $44,000 for its acquisition of the
Board, which is the full amount believed by Agency to be dust compensation for Board
and is not less than the approved appraisal of its fair market value. This amount
disregards an decrease or increase in the fair market value of the Board prior to the date
of valuation caused by the public improvement for which the Board is to be acquired for
such public improvement This offer does not reflect any consideration of or allowance
for any relocation assistance and payments or other benefits, if any, which the owner may
be entitled to receive under an agreement with the Agency.
Please be advised that CBS Outdoor is 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
If this offer is acceptable to you, please so indicate to the undersigned in writing on or
before October 31, 2008 Upon your acceptance, the Agency will prepare and forward to
you the appropriate documents to complete the transaction. This offer is subject to the
ratification of an agreement for purchase and sale by the Agency, the Agency's adoption
of a resolution of necessity, or both.
L4-16
If for any reason you are not satisfied with this offer of just compensation and have
relevant information regarding the value of the property that you would like the Agency
to consider, we will be happy to do so. In addition, you should be aware that in the event
negotiations fail to result in an agreement, and the
Agency decides to proceed with the acquisition of the property through eminent domain,
a hearing on the Resolution of Necessity will be held at a public meeting before the board
members of the Santa Clartta Redevelopment Agency, at a date to be determined.
If for any reason you do not accept the Agency's offer, please be advised that the matters
included within this letter, as well as the attached summary statement, fall within the
provisions of, inter alfa, 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 Board, or in any other
action.
If you have any questions regarding this offer, or have information regarding the value of
your property, please contact Renee Stoll at 661 286-4182
Sincerely,
SANTA CLARITA REDEVELOPMENT AGENCY
Paul D. Brortman
Director of Community Development
Enclosure
CC. Joseph Montes, Esq.
Alan Sozio, Esq.
PDB•AS:lep
s/cd/redevelopment/cbs-vtacom outdoor 7267 2 offer Itr carquest billboard(4)
ACCEPTANCE
The foregoing offer of the Santa Clarita Redevelopment Agency for the acquisition of the
CBS/Viacom Outdoor Billboard Lease #900890 is hereby accepted -
Dated:
Dated:
LA #4815-3283-2002 vl LJ
January 13, 2009
Mr Robert Harbin
CBS Outdoor, Inc
a/k/a Viacom Outdoor, Inc.
1695 Eastshore Highway
Berkeley, CA 94710
Subject: Acquisition of Leasehold Interest (Lease #900890) and
Improvements Related to the Outdoor Advertising Sign located at
24535 Main Street, Santa Clarita, CA
NOTICE OF HEARING REGARDING THE INTENTION OF THE
SANTA CLARITA REDEVELOPMENT AGENCY,
TO ADOPT A RESOLUTION OF NECESSITY FOR THE ACQUISITION OF THE
LEASEHOLD INTEREST AND IMPROVEMENTS RELATED TO THE OUTDOOR
ADVERTISING STRUCTURE OWNED BY VIACOM/CBS OUTDOOR, INC. WHICH
IS LOCATED AT 24535 MAIN STREET, SANTA CLARITA, CA
BY EMINENT DOMAIN FOR PROJECT 2007390
Dear Owner(s),
YOU ARE HEREBY NOTIFIED, pursuant to Code of Civil Procedure Section 1230.010 et.
seq., that the Santa Clarita Redevelopment Agency intends to consider the adoption of a
Resolution of Necessity for acquisition by eminent domain of the leasehold interest and certain
improvements pertaining to the realty for the outdoor advertising sign owned by Viacom/CBS
Outdoor, Inc., Lease #900890, Face Numbers 14227A & 14228A, which is located at
24535 Main Street, in Santa Clarita, CA ("Improvements") for the construction of a new library
in Downtown Newhall, Project No. F2007390.
A hearing will be held on Janaury 27, 2009 at 6:00 p.m., or as soon thereafter as the Agency can
hear said matter, at the Council Chambers, located at 23920 Valencia Boulevard, Santa Clarita,
California 91355 If the resolution is adopted at this meeting, it will authorize the Agency to
acquire the improvements described herein by eminent domain for the construction of the new
library in Downtown Newhall (hereinafter, the "Library")
Please take further notice that you have a right to appear and be heard at said Hearing on the
following matters and issues, and to have the Agency give judicious consideration to your
testimony prior to deciding whether or not to adopt the proposed Resolution of Necessity:
LA #4849-5075-7379 v
14-1
Mr. Robert Harbin
Viacom/CBS Outdoor, Inc.
January 13, 2009
Page 2
a. Whether the public interest and necessity require the proposed project;
b. Whether 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;
C. Whether the Improvements sought to be acquired by eminent domain and described
in the Resolution of Necessity is necessary for the proposed project;
d. Whether the offer required by Government Code Section 7267.2(a), together with
the accompanying statement and summary of the basis for the amount established
as just compensation, was actually made to you and whether said offer and
statement/summary were in a form and contained all of the factual information
required by Government Code Section 7267.2(a);
e. Whether 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 Improvements described herein, as well as any other matter regarding the right
to take said Improvements by eminent domain; and
f. Whether the Agency has statutory authority to acquire the Improvements by
eminent domain; and
g. Whether the necessary notification of the Notice of Hearing, as required by the
California Code of Civil Procedure, Sec. 1245.235, was given in regard to the
Improvements;
h. Whether the project complies with all the provisions of California's Environmental
Quality Act;
A copy of the proposed Resolution of Necessity will be available upon your request for
inspection at the office of the City Clerk at 23920 Valencia Blvd., Suite 304, Santa Clarita, CA
91355, five (5) days after this Notice was mailed (January 13, 2009) and prior to the hearing at
the place of the hearing.
The issue of compensation relative to the acquisition is not a matter or issue being heard by the
Agency at this time. Your nonappearance at this noticed hearing will not prevent you from
claiming greater compensation as may be determined by a court of law in accordance with the
laws of the State of California. This Notice is not intended to foreclose future negotiations
between you and the representatives of the City and/or the Agency on the amount of
compensation to be paid for your Improvements.
If you desire to be heard, please be advised that a written request must be actually received by
the City Clerk prior to the commencement of the hearing on the Resolution of Necessity. If you
elect not to appear and not to be heard, you will only be foreclosed from raising in a court of law
LA 94849-5075-7379 0
Mr. Robert Harbin
Viacom/CBS Outdoor, Inc.
January 13, 2009
Page 3
the issues that are the subject of this noticed hearing and that are concerned with the right to take
the Improvements by eminent domain.
If you have any questions regarding this hearing, the offer, or have additional information
regarding the value of your Improvements, please contact me at (661) 255-4365 or Barbara Stoll,
Acquisitions Specialist at (661) 286-4046.
Sincerely,
Paul Brotzman
Director Community Development
RS
S \pr\open space & real property\stoll\redevelopment\carquest— notice of hearing
Enclosure
cc: Alan Sozio, City Attorney
Armine Chaparyan, Redevelopment Manager
Harry Corder, Senior Engineer
LA 14849-5075-7379 vl n
V
Mr. Robert Harbin
Viacom/CBS Outdoor, Inc.
January 13, 2009
Page 4
Date of Mailing: Janaury 13, 2009
You may use the enclosure for the purpose of notifying the City of your intent and desire to be
heard.
LA 94849-5075-7379 vl
NOTICE OF HEARING REGARDING THE INTENTION OF THE
SANTA CLARITA REDEVELOPMENT AGENCY,
TO ADOPT A RESOLUTION OF NECESSITY FOR THE
ACQUISITION OF THE LEASEHOLD INTEREST AND
IMPROVEMENTS RELATED TO THE OUTDOOR
ADVERTISING STRUCTURE OWNED BY VIACOM/CBS
OUTDOOR, INC. WHICH IS LOCATED AT 24535 MAIN
STREET, SANTA CLARITA, CA
BY EMINENT DOMAIN FOR PROJECT 2007390
REQUEST TO APPEAR AND BE HEARD
Name
Telephone
Address
Date
Signature
Mail or deliver to: City Clerk
City of Santa Clarita
23920 Valencia Blvd., Suite 304
Santa Clarita, CA 91355
LA 44849-5075-7379 vl (
_'Y .' �/
January 13, 2009
Mr. Robert Harbin
CBS Outdoor, Inc.
a/k/a Viacom Outdoor, Inc.
1695 Eastshore Highway
Berkeley, CA 94710
Subject: Acquisition of Leasehold Interest (Lease #900890) and
Improvements Related to the Outdoor Advertising Sign located at
24535 Main Street, Santa Clarita, CA
NOTICE OF HEARING REGARDING THE INTENTION OF THE
SANTA CLARITA REDEVELOPMENT AGENCY,
TO ADOPT A RESOLUTION OF NECESSITY FOR THE ACOUISITION OF THE
LEASEHOLD INTEREST AND IMPROVEMENTS RELATED TO THE OUTDOOR
ADVERTISING STRUCTURE OWNED BY VIACOM/CBS OUTDOOR, INC. WHICH
IS LOCATED AT 24535 MAIN STREET, SANTA CLARITA, CA
BY EMINENT DOMAIN FOR PROJECT 2007390
Dear Owner(s),
YOU ARE HEREBY NOTIFIED, pursuant to Code of Civil Procedure Section 1230.010 et.
seq., that the Santa Clarita Redevelopment Agency intends to consider the adoption of a
Resolution of Necessity for acquisition by eminent domain of the leasehold interest and certain
improvements pertaining to the realty for the outdoor advertising sign owned by Viacom/CBS
Outdoor, Inc., Lease #900890, Face Numbers 14227A & 14228A, which is located at
24535 Main Street, in Santa Clarita, CA ("Improvements") for the construction of a new library
in Downtown Newhall, Project No. F2007390.
A hearing will be held on Janaury 27, 2009 at 6:00 p.m., or as soon thereafter as the Agency can
hear said matter, at the Council Chambers, located at 23920 Valencia Boulevard, Santa Clarita,
California 91355. If the resolution is adopted at this meeting, it will authorize the Agency to
acquire the improvements described herein by eminent domain for the construction of the new
library in Downtown Newhall (hereinafter, the "Library").
Please take further notice that you have a right to appear and be heard at said Hearing on the
following matters and issues, and to have the Agency give judicious consideration to your
testimony prior to deciding whether or not to adopt the proposed Resolution of Necessity:
LA 114849-5075-7379 vl
Mr. Robert Harbin
Viacom/CBS Outdoor, Inc.
January 13, 2009
Page 2
a. Whether the public interest and necessity require the proposed project;
b. Whether 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;
C. Whether the Improvements sought to be acquired by eminent domain and described
in the Resolution of Necessity is necessary for the proposed project;
d. Whether the offer required by Government Code Section 7267.2(a), together with
the accompanying statement and summary of the basis for the amount established
as just compensation, was actually made to you and whether said offer and
statement/summary were in a form and contained all of the factual information
required by Government Code Section 7267.2(a);
C. Whether 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 Improvements described herein, as well as any other matter regarding the right
to take said Improvements by eminent domain; and
f Whether the Agency has statutory authority to acquire the Improvements by
eminent domain; and
g. Whether the necessary notification of the Notice of Hearing, as required by the
California Code of Civil Procedure, Sec. 1245.235, was given in regard to the
Improvements;
h. Whether the project complies with all the provisions of California's Environmental
Quality Act,
A copy of the proposed Resolution of Necessity will be available upon your request for
inspection at the office of the City Clerk at 23920 Valencia Blvd , Suite 304, Santa Clarita, CA
91355, five (5) days after this Notice was mailed (January 13, 2009) and prior to the hearing at
the place of the hearing.
The issue of compensation relative to the acquisition is not a matter or issue being heard by the
Agency at this time. Your nonappearance at this noticed hearing will not prevent you from
claiming greater compensation as may be determined by a court of law in accordance with the
laws of the State of California. This Notice is not intended to foreclose future negotiations
between you and the representatives of the City and/or the Agency on the amount of
compensation to be paid for your Improvements.
If you desire to be heard, please be advised that a written request must be actually received by
the City Clerk prior to the commencement of the hearing on the Resolution of Necessity If you
elect not to appear and not to be heard, you will only be foreclosed from raising in a court of law
LA #4849-5075-7379 v I
Ll - 2
�
Mr. Robert Harbin
Viacom/CBS Outdoor, Inc.
January 13, 2009
Page 3
the issues that are the subject of this noticed hearing and that are concerned with the right to take
the Improvements by eminent domain.
If you have any questions regarding this hearing, the offer, or have additional information
regarding the value of your Improvements, please contact me at (661) 255-4365 or Barbara Stoll,
Acquisitions Specialist at (661) 286-4046.
Sincerely,
Paul Brotzman
Director Community Development
RS
S \pr\open space & real property\stoll\redevelopment\carquest— notice of hearing
Enclosure
cc: Alan Sozio, City Attorney
An -nine Chaparyan, Redevelopment Manager
Harry Corder, Senior Engineer
LA 44849-5075-7379 vl
Mr. Robert Harbin
Viacom/CBS Outdoor, Inc.
January 13, 2009
Page 4
Date of Mailing: 'Janaury 13, 2009
You may use the enclosure for the purpose of notifying the City of your intent and desire to be
heard.
LA #4849-5075-7379 vl
NOTICE OF HEARING REGARDING THE INTENTION OF THE
SANTA CLARITA REDEVELOPMENT AGENCY,
TO ADOPT A RESOLUTION OF NECESSITY FOR THE
ACQUISITION OF THE LEASEHOLD INTEREST AND
IMPROVEMENTS RELATED TO THE OUTDOOR
ADVERTISING STRUCTURE OWNED BY VIACOM/CBS
OUTDOOR, INC. WHICH IS LOCATED AT 24535 MAIN
STREET, SANTA CLARITA, CA
BY EMINENT DOMAIN FOR PROJECT 2007390
REQUEST TO APPEAR AND BE HEARD
Name
Telephone
Address
Date
Signature
Mail or deliver to: City Clerk
City of Santa Clarita
23920 Valencia Blvd., Suite 304
Santa Clarita, CA 91355
LA #4849-5075-7379 vl
LI -27