HomeMy WebLinkAbout08/05/1986 Item 14 - 110 Higuera Acquisition of Property Frontage for street Wideningrl
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CGIIJNCIL AGiENtrIA FIEPGIFIT
MEETING DATE:
AUG. 5. 1986 ^rreru ruuveen:f7f,l.
Anne M. Russell, Assistant City AttorneyFROM:
Acquisition of lrrontage of Propetrty at 110 lliguera
Street for Higuera Str-eet Widening.
SUBJECT:
CAO RECOMMENDATION:
Adnpt Resolution approving a purcirase agreement
BACKGROUND:
In the Capital Facilities P1att, the Council hirs planned for the
widening' of Higuertr Street north of the interselction with Madonna
Rotrd. The CFP 1:rojects property acqui.sition in tire a.rea f or f iscalyear 1986-87, aud cotrstrttction of the actual ilnprovelnents in Lhefollowing fiscal year. This fiscal yetrr's budget appropr.iates
$450 , 000 for acquisition.
ln order to widen Higuera, the city witl need to acquire land fronr
severaf property owners, including Paul and ./arcqueline Prather, lvho
own the property at 110 Higuera street, which is occnpieti by Buclget
Rent-A-Car . 'lhe; Counci I previous]y authorized an of f er of $?0 , 000for acquisition of the necessary front.age and impr.ovements located on
the property. These included "co$L to cure" danage$ attributable to
the road widetritrg such as the loss of 3 older nnclelground tanks, the
sel'vice station canopy, f uel d.ispensers and rel.ated apparatus,
rentodeling of the service bay entrance to prevent backward exiting
clnto the street, loss of good wil1, and any other datnagesattributable to the acquisition. In addition, due to staff,s concer.n
over: potential contanrination of the soil due to leaks frorn [he
tttrdergrouncl tanks, Couircil authorized nn irdditional $20,000 f or the
owrlers to remove the tanks and clean up any contanrination prior to
close of escrow. The attached purchase agreement reflects a purchaseprice of $90,000 ($20,000 Jri"us $20,000).
0rigittally, rentoval of the tirnlqs was a condition plecedent to closeof escrow. However, a few weeks ago, the Prilthers relnoved the t.anksiu atrt,icipatiotr of tiris sale. The Agreenent now contains a war.r.anty
l.hat all underground tanks have been renroverl or legally abandonecl and
the Property is free of gasoline or petr.oleun Lry-products
contarnination (section 15.2.K) as of the close of escrow. whiler
st-aff would have preferred that the warranLy survive the close of
escrow, the Prathers were very concerned about a potential liability
extending into the distant future. Since the Fire Departmen't
tleterntitred that there was no contanination from either the 3 tanksthat were renove.'d, or fron 2 tanks previously legally abandoned inplace, the agreentetrt allows the warranty to encl after title passes to
the City.
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CCIIJNGIL AGIEN trIA FIE]'GIFIT
There is a question as to whether the 2 renaining tanks are even onthe Property the city is acquiring. lf they are on the property, the
deed will describe their location in accordance with applicable State
Law (section 4.2). According to the Filc Department, ilre z tanks arefiIled witlt a concrete/slurry mix, and are located 12 feet beneaththe surface. Tire city Engineer indica[.es that the tanks do notpresent a problem for construction or mainteltance of a street.
The Agreenent also provides, cnrrtrary to nornal procedure in
negotiated sales, that the city will pay for its own title insurance(a $500*1,000 item). Ilowever, if the City were to condemn theproperty, the City wonld be responsible for this iten.
sincer the ci'by is only acquiring the front2s feet., the renainderportion of the Prather property witl be landlocked between close of
escrow and the completion of the Higuera Street widening.
Accordingly, one of the attirchnents is a license agreement which
allows the Prathers (and their agents and invitees) to closs the
right-of--way strip until the street is completed. The Pratliers will
maintain the property. The Prathe:rs will defend aird -indennify theCity against any claims arising out of their use of the property.
ATTERNATIVES
Adopt Resolu'Lion approving purchase agrr:ement.
Do not adopt Resolution approving agreement.
The first alter"native would permit the City to acquire one of theparcels necessary for the right-.of-way, thereby permitting the cityto proceed on schedule with the proposed widening. Failure to
acquire this parcel at this time could result in deLays in the street
widening, and pr:ssible higher acquisition costs.
The secoud alternative is to not adopt the resolntion, therelry not
expending $90,000 at tltis time. However, if Higuera Street is to be
widened itr the near future, rejection of the resolution at this time
does no1- s€)em appropriate.
FISCAL IMPACTI
The purchaser price is $90,000. since $4s0,000 has been appropr-i.a'teclfor the acqrrisition, there wi1l be $360,000 left in the account to
acquire other r-ights-of-way, not including the Evans property, on
which the City has an Option to purchase for $490,000.
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PROS ANI] CONS:
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RErOBIENDATTON:
Adopt Resolution approving purchase agreement with paul ancl
Jacgueline Prather.
ATTACHMENTS:
r. Purchase Agreement with exhibits (legal descriptions, prelininarytitle report and license agreenent).2. Resolution Approving Purchase Agreenent.
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