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Home My WebLink About2009-11-24 - AGENDA REPORTS - VIACOM SETTLEMET AGMT (2)Agenda Item: W/�'�� CITY OF SANTA CLARITA JOINT CITY COUNCIL / REDEVELOPMENT AGENCY AGENDA REPORT City Manager Approval: CONSENT CALENDAR Item to be presented by: Armin Chaparyan DATE: November 24, 2009 SUBJECT: SETTLEMENT AGREEMENT REGARDING 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 N. MAIN STREET, SANTA CLARITA, CA 91321, FOR PROJECT NO. F2007390-NEWHALL LIBRARY DEPARTMENT: Community Development RECOMMENDED ACTION City Council: Approve the acquisition and adopt a resolution consenting to payment being made by the Redevelopment Agency of the City of Santa Clarita (Agency) for the purchase of the leasehold interests and related improvements pertaining to the realty, loss of goodwill, and all other damages and costs that may be associated with the acquisition of a billboard advertising sign owned by Viacom/CBS Outdoor Advertising ("Leasehold Interests and related improvements") for public improvement and making the findings required by Section 33445 of the California Redevelopment Law to permit the use of Agency funds to purchase the "Leasehold Interests and related improvements" to provide for the construction of a public library. Redevelopment Agency: 1. Adopt a Resolution of the Agency requesting consent from the City Council to use Agency funds for the purchase of the "Leasehold Interests and related improvements" for public improvement and making the findings required by Section 33445 of the California Redevelopment Law and to permit the use of those funds to acquire the 'Leasehold Interests and related improvements" for the construction of a public library; 2. Authorize the appropriation of $55,000 from available funds in the Redevelopment Agency non -housing fund balance to Account 13400-5201.004; �pP�Od�D Ad-p ��eRoq�Iy 3. Authorize Executive Director or designee to approve payments up to a maximum amount of $55,000 for the acquisition and for all required costs related thereto and execute all required documentation to complete the transaction, subject to review by the Agency Attorney. BACKGROUND On December 18, 2007, the Agency purchased the real property located at 24535 Main Street, the site formerly occupied by Car Quest Auto Parts. The property was purchased as part of the assemblage of parcels necessary for the Old Town Newhall Library project. As part of the Newhall Library project and the revitalization of Downtown Newhall and in accordance with the Downtown Newhall Specific Plan, on October 6, 2008, the Agency made an offer to purchase the leasehold hold interest and related improvements to Viacom/CBS Outdoor for the appraised value of $44,000. On January 27, 2009 a joint City Council/Agency public hearing was held and a resolution of necessity was adopted authorizing initiation of eminent domain proceedings to acquire the leasehold interest and related improvements. The Agency deposited $44,000 with Los Angeles County Superior Court. Negotiations continued with the billboard owner and on October 3, 2009 Viacom/CBS Outdoors' representative orally agreed to accept an all-inclusive settlement offer from the Agency in the amount of $55,000 which will include the cost to demolish and remove the improvements and it is also acknowledged that the agreement would remain subject to City Council/Agency approval and the completion of a written agreement reflecting same. The negotiated settlement amount of $55,000 represents full compensation to Viacom/CBS Outdoor Advertising for the leasehold interests, all related improvements including those pertaining to the realty, loss of goodwill, and all other damages and costs that may be associated with the removal of the billboard sign and will allow for a timely and mutually agreeable resolution in lieu of completing the earlier eminent domain action. If the eminent domain action were pursued, there is the potential the case could go to trial and trigger additional settlement and legal costs that may exceed the current negotiated settlement of $55,000. In order for redevelopment agencies to spend funds for acquisition of "Leasehold Interests and related improvements" for the construction of public improvements such as a public library, the Agency must request and the City Council must consent and each body must make findings as provided for in the attached resolutions. The payment of funds for the project will facilitate completion of required public improvements to induce new construction and/or rehabilitation by private enterprise; will remove blighted conditions, promote the comprehensive planning, redesign, replanning, reconstruction and/or rehabilitation in such a manner as to achieve a higher and better utilization of the land within the project area and facilitate implementation of the goals of the Downtown Newhall Specific Plan by adding needed public facilities such as a public library to the Newhall Redevelopment Project Area. ALTERNATIVE ACTIONS 1. Agency may direct staff to cease the acquisition effort. Y, — 2. Other actions as determined by the Agency or City Council. FISCAL IMPACT Authorize the appropriation of $55,000 from available funds in the Redevelopment Agency Non -housing fund balance to Account 13400-5201.004. ATTACHMENTS Resolution - City Council Resolution - Redevelopment Agency RESOLUTION NO. 09- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, MAKING THE FINDINGS REQUIRED BY SECTION 33445 OF THE CALIFORNIA REDEVELOPMENT LAW AND DETERMINING THAT THE PURCHASE OF THE LEASEHOLD INTERESTS AND THOSE CERTAIN IMPROVEMENTS PERTAINING TO THE REALTY LOCATED AT 24535 MAIN STREET FOR THE CONSTRUCTION OF A PUBLIC LIBRARY IS OF BENEFIT TO THE NEWHALL REDEVELOPMENT PROJECT AREA WHEREAS, the Redevelopment Agency of the City of Santa Clarita (the"Agency") is a public body, corporate and politic, duly established and authorized to transact business and exercise powers under and pursuant to the provisions of the Community Redevelopment Law of the State of California, constituting Part 1 of Division 24 of the Health and Safety Code of the State of California (the "Law"), including the power to expend funds for public improvements for the benefit of the Newhall Redevelopment Project Area ("Project Area"); and WHEREAS, the City of Santa Clarita ("City") is the legislative body for the community in which the Project Area is located and pursuant to Health & Safety Code Section 33445 is required to consent to payments to be made by its Agency for the acquisition of the leasehold interests, those certain improvements pertaining to the realty, loss of goodwill and all other damages and costs associated with the removal of the Viacom/CBS Outdoor Advertising billboard advertising sign located at 24535 Main Street ("Leasehold Interests") for the installation of public improvements; and WHEREAS, the Downtown Newhall Specific Plan adopted on December 22, 2005, provides for the funding of public improvements within the Project Area; and WHEREAS, the provision of public improvements is consistent with the Redevelopment Agency's Five -Year Implementation Plan in that the purchase of the "Leasehold Interests" for the construction of a public library ("Project") is also identified in the Downtown Newhall Specific Plan as a goal and objective; and WHEREAS, the Agency desires to purchase the "Leasehold Interests" for the Project with $55,000 of Agency funds as presently the City does not have funds available for this project; and WHEREAS, there are appropriate facts supporting the findings required by Health & Safety Code Section 33445 for the City Council to consent to the Agency's expenditure of funds for the purchase of "Leasehold Interests" for public improvements provided by the Project. NOW, THEREFORE, the City Council of the City of Santa Clarita, California does hereby resolve as follows: SECTION 1. Recitals. The City Council finds and declares that the above recitals are true and correct and incorporates them herein. Gi SECTION 2. Findings Required by Health & Safe1y Code Section 33445. The City Council hereby determines that: (a) The Project is of benefit to the Project Area as there are inadequate public facilities within the Project Area and the purchase of the "Leasehold Interests and related improvements" to construct a public library will provide those needed public facilities; and (b) No other reasonable means of financing the purchase of the "Leasehold Interests and related improvements" are available to the community as the City is using its funds to undertake other public improvements throughout the City; and (c) That the payment of funds for the Project will assist in the elimination of blighting conditions inside the Redevelopment Project Area by providing for adequate parcels and required public improvements to induce new construction and/or rehabilitation by private enterprise; promoting the comprehensive planning, redesign, replanning, reconstruction and/or rehabilitation in such a manner as to achieve a higher and better utilization of the land within the project area, and assisting in attracting new businesses and residential developments to the area; and (d) The use of Agency funds for the acquisition is consistent with the Agency's adopted implementation plan per Health and Safety Code Section 33490. SECTION 3. City Consent. The City Council consents to the Agency's request to pay $55,000 for the "Leasehold Interests and related improvements" to permit the construction of a public library. SECTION 4. Effective Date. This Resolution shall take effect from and after its date of passage; approval and adoption. SECTION 5. Certification. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 24th day of November, 2009. ATTEST: CITY CLERK MAYOR STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Sharon L. Dawson, MMC, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 24th day of November, 2009, by the following vote: AYES: NOES: ABSENT: DISQUALIFIED: COUNCILMEMBERS: COUNCILMEMBERS: COUNCILMEMBERS: COUNCILMEMBERS: Weste CITY CLERK 11 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF CITY COUNCIL RESOLUTION I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution No. 09- , adopted by the City Council of the City of Santa Clarita, California on November 24, 2009, which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California, this day of , 2009. Sharon L. Dawson, MMC City Clerk By Susan Caputo, CMC Deputy City Clerk 4 --+ RESOLUTION NO. RDA A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARITA, CALIFORNIA, MAKING THE FINDINGS REQUIRED BY SECTION 33445 OF THE CALIFORNIA REDEVELOPMENT LAW AND DETERMINING THAT THE PROVISION OF PUBLIC IMPROVEMENTS FROM THE PURCHASE OF THE LEASEHOLD INTERESTS AND THOSE CERTAIN IMPROVEMENTS PERTAINING TO THE REALTY LOCATED AT 24535 MAIN STREET FOR THE CONSTRUCTION OF A PUBLIC LIBRARY IS OF BENEFIT TO THE NEWHALL REDEVELOPMENT PROJECT AREA WHEREAS, the Redevelopment Agency of the City of Santa Clarita (the "Agency") is a public body, corporate and politic, duly established and authorized to transact business and exercise powers under and pursuant to the provisions of the Community Redevelopment Law of the State of California, constituting Part 1 of Division 24 of the Health and Safety Code of the State of California (the "Law"), including the power to expend funds for public improvements for the benefit of the Newhall Redevelopment Project Area ("Project Area"); and WHEREAS, the City of Santa Clarita ("City") is the legislative body for the community in which the Project Area is located and pursuant to Health & Safety Code Section 33445 is required to consent to payments to be made by its Agency for the acquisition of the leasehold interests, those certain improvements pertaining to the realty, loss of goodwill and all other damages and costs associated with the relocation of the Carquest Auto Parts business located at 24535 Main Street ("Leasehold Interests") for the installation of public improvements; and WHEREAS, the Downtown Newhall Specific Plan adopted on December 22, 2005, provides for the funding of public improvements within the Project Area; and WHEREAS, the provision of public improvements is consistent with the Redevelopment Agency's Five -Year Implementation Plan in that the purchase of the "Leasehold Interests and related improvements" for the construction of a public library ("Project") is also identified in the Downtown Newhall Specific Plan as a goal and objective; and WHEREAS, the Agency desires to purchase the "Leasehold Interests and related improvements" for the Project with $55,000 of Agency funds as presently the City does not have funds available for this project; and WHEREAS, there are appropriate facts supporting the findings required by Health & Safety Code Section 33445 for the City Council to consent to the Agency's expenditure of funds for the purchase of the "Leasehold Interests and related improvements" for public improvements provided by the Project. NOW, THEREFORE, the Redevelopment Agency of the City of Santa Clarita, California does hereby resolve as follows: SECTION 1. Recitals. The Agency Board finds and declares that the above recitals are true and correct and incorporates them herein. SECTION 2. Findings Required by Health & Safety Code Section 33445. The Agency hereby determines that: a) The Project is of benefit to the Project Area as there are inadequate public facilities within the Project Area and the purchase of the "Leasehold Interests and related improvements" to construct a public library will provide those needed public facilities; and b) No other reasonable means of financing the purchase of the property are available to the community as the City is using its funds to undertake other public improvements throughout the City; and c) That the payment of funds for the Project will assist in the elimination of blighting conditions inside the Redevelopment Project Area by providing for adequate parcels and required public improvements to induce new construction and/or rehabilitation by private enterprise; promoting the comprehensive planning, redesign, replanning, reconstruction and/or rehabilitation in such a manner as to achieve a higher and better utilization of the land within the project area, and assisting in attracting new businesses and residential developments to the area; and d) The use of Agency funds for the acquisition is consistent with the Agency's adopted implementation plan per Health and Safety Code Section 33490. SECTION 3. Agency Request for use of Funds. ` The Agency requests the City Council's consent for the Agency to use its funds to pay $55,000 for the "Leasehold Interests" to permit the construction of a public library. SECTION 4. Effective Date. This Resolution shall take effect from and after its date of passage; approval and adoption. SECTION 5. Certification. The Agency Secretary shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 24th day of November, 2009. ATTEST: CHAIR SECRETARY STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Sharon L. Dawson, MMC, 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 24th day of November, 2009, by the following vote: AYES: AGENCY MEMBERS: None NOES: AGENCY MEMBERS: None ABSENT: AGENCY MEMBERS: None DISQUALIFIED: AGENCY MEMBERS:: Weste SECRETARY P STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF REDEVELOPMENT AGENCY RESOLUTION I, Sharon L. Dawson, 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. RDA 09- , adopted by the Redevelopment Agency of the City of Santa Clarita, California on November 24, 2009, which is now on file in my office. Witness my hand and seal of the Redevelopment Agency of the City of Santa Clarita, California, this day of , 20_. Sharon L. Dawson, MMC Secretary Susan Caputo, CMC Deputy Secretary El