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Home My WebLink About11-19-1985 Item C7 - Purchase Option 148-182 Higuerat (,', ,') 'ilrrnrrllillllillffiillllllliJl|l||il crry of san rJrffiGCIUNCIL s oBrspo MEETING BATE: $ovember 19, l9B5 FROM Anne M City AttorneyRusser tl$hista.nt SUBJECT Purchase of Option on 1"48-182 Higuera Street CAO RECOMMENDATION Adopt Resolution approving Option Agreernent with EvansFanily. Adopt resolution authorizing supplemental.appropriation. BACKGROUND Irr t}:e Capital Facil-lti*s Plan, the Courrcil }:as planned for thewidening of Higuera Street north of the intersection with MadonnaRoad. The CFP projects property acquisition in the area for fiscalyear 1S86-1987, and construction of the actual improvements in the f oliowing f iscal year'. This f iscal yearrs budget ii:clucles gl.S, OOOfor prelitninary studies and appraisaLs. The 1986-87 CFP projects abudget appropriation of g450,OOO for acquisition. In order to widen Higuera, the City will need to acquire land fromseveral property owners. The Evans fanrily owns one of the parc:erJ,$, Located at the southwest corner of Higuera and Sor-rth Street. Half ofthe property is currently in probate, and tkre yemaining ovrRer anclheirs have offered an option to the city to purchase the entireparcel , not jtrs't the strip necessary for widening, in the next f iscaLyear. The Cor:.nci1 previously au.thorized in closed session $20,000for an option price, and g49o,ooo cash for the property purcha.seprice if the option is exercised. The option price is in addition tothe purchase price of the property. By purchasing the option, the City retains the ability to decide at afr:.tu.r'e d.a"te, i.€., Novetnber of ne>ct year, ulhether or not to a"cqu.ire tl:re entire parcel or just the strip necessary for widening.Regardless of whether the City acqui.res the entire parcel or just thestrip, demolition of both buildings may be necessary. The optiondoes not address any relocation of existing tenants, but does provS.rlethat any vacancies that occur during the option term shall not befi1led. ALTHRNATIVES I I . Adopt Resolution approving Optlon Agreernent. PROr This aLternative will permit the City to g::'oceed onschedule with the proposed widening, with a firrn knowledge ofacquisition cost for this parcel. The option approach gives theC-lty maximun fl.exibility prior to having to come up with the cash C-7-/ 'ffiru ctf,y oF san L"-ls oBtspo I GGITJIVCIL AGIEIV trIA FIEPGIFIT L for the purchase, and allows for the purchase to be made in asystenatic manner projected in the CFp for 1996-8?. CON: The option approach will cost g2O,OOO. Reject option Agreement - purchase entire property or stripoutright this year. PRO: This alternative will save $AO,OO0. CON: The City would have to borrow from Capital Outlay Reservesor General Fund Reserves to make the futl purchase this year. rfthe city desires to purchase only the strip, staff would need. toreopen negotiations with the property owner$. Reject Option Agreernent. PRO: Save $2O,OO0 by not acquiring optiorr. CON: The City will need to renegotiate acquisition of the entireproperty or negotiate acqi-risition of just the strip in the f r:.ti;re . FLSCAL TMPACq The option purchase price is gzo,ooo. Because this item was notincluded in this yearrs budget, the council mu.st authorize theappropriation of an additional g2o,o0o frorn unappropriated fundbalances to project fund 882, Should the Council decide to exercisethe option in November 1986, the i.986-8? budget allocation wiLl haveto be increased to at least $49O,OOO from the cu.rrently estirnated$45o,ooo. More may be necessary to cover the acquisition of theadditional properties involved in the widening. Staff hopes to beable to sell- the portion of the property renaining after wicleninE tosignif icantly redr.:.ce total acquisition costs. RECOIvIMENDATTON : Adopt Resolu'tion approving option Agreement withr EvarrsResolution authorizing supplementaL appropriation. ATTACHMENTS: Fanily. Adopt 3 1 2 .J + Option Agreement with three exhibits (purchase andAgreement, list of Leases, and Memorand,um of OptionResolution approving Option AgreementResolution appropriating fundsPg. E-B of 1985-87 FinanclaL plan Sale Agreement ) t- 7. CAPITAT FACITITIES PLAN PROTECT COST AND FT'NDING SOUBCE r9E -E6 Approprlation $r2r,m ' t9&.-E7 Estlmatcd Approprbtlrrl + 1967-EE EEtlmated Approprlrtlon + rgEE-t9 Egdnatcd- AND I. AMTMK TERMINAL Reconstruction and renovation of the Amtrak terminal and sunounding area. Ttris will include paviag. lighung and landscaping the parking area as well as renovation of the interior of the Amtrak terminal. Eslilmated carryover; lbtal prolect cost: of Fund State intermodal gant Capital Outlay/Revenue Sharing Esdmated carryover; Total prolect cost' Estimated carqrover: lbtal prolect cost: Fund: Strcet fund Estimated carryover' lbtal profect cost: Fund Street fund Esdmated carryover: lbtal prolect coet: Fund' Street fund Estlmated carry-over: Tbtal profect cost: Fund: Street fund Estlmated carryover: Total profect cost: Fund: PUC Grant SPRR Grant Street Fund $ lm.m l.07t,m t4t,m 2r0.0m E9l,m E9r.m $70t,m Apercqllafton + -o2. LOS OSOS VATLEY ROAD CONSTRUCTION Extend los Osos tvhlley Road from Highway IOI to Higuera Street. This would include extendlng the overpass at Highway l0l and improving the ramp access system. \r.brk begun on $9@.(D prolect in FY E4.E' ,. HIGUERA STREET WIDENING - Madonna Road to South street Wider west si& of Hfiuen Street lncluding rcaligning Ma&nna Ftoad/Higuen Street lntersec[on and installaUon of signal modifications. 4. HIGUERA STREET WIDEN|NG - Kimball Butlding to South Strcet Wideo the west sde of Htguera Street. '. MADQINNA ROAD WIDENING - EI Merca& to Highway IOI Widen the south Sde of Madoruu Road. -o +{} +$ lt.m $4to.m $240,m + t $lto.m +i lo.m fi40.m + {}$ zt.m . Srtojm i" , .' o .{} +6. MADONNA ROAD WIDENING - at Highway l0l Develop prelimirury desrgr for widening Madonna Road over Highway l0l irrcluding ramp improvements. Nore that this prolect includes only schematic and preliminary desigr at this poini with costs of construcuon yet to be determined. 7. HIGUERA STREE'I WIDENING - Marsh Srreet ro Kimball Building Widen the west side of Hfuen Street. This would complete ftnai design work on the widenlng foi the west stde of Higuera Stre€t. At this time the prciect does not lnclude costs of acquinng right-of-way or construction. Es$mated carry-over, -G Totalpro,ectcost: $1(x).@ Fund: Street fund or revenues associated wlth San Luls Mall Development {} $tt0,m .o $ zr,m -o $170,m 296.m ,7.0m t7.(m $rc,m $100.m o -(}+ +$ru.m + G -\\ E. oRcUTT ROAD GRADESEpAnAnON \) Final design for a bridge on Orcutt Road. At ttris Ume the costs fort r this proiect are for final desgn and do not include costs of\ construction. Staff to pursue gant fundlng for prolect completton as early as possible +.(}{} 'prn) MEETTNG AGENDA /7-7 DATE ilov re 's6 ITEM # u f cc:r/ e November 18, 1985 D mTo: l"layor Bi[ig and Mernbers of the San Luis Obispo City Council From: Residents of the Evans Building Subject: Item #c-7 of the SLO City Council agenda report for the November 19, 1985 neeting Dear Sir or. Ivladam, Ttre deadline for appeals to ER 66-85 (the Higuera St. widening) is Novenbex 23, 1985. W€, the residents of the Evans Building, feel the purchase of this property and the widening of Higuera are integrally related and therefore any actions concerning this purchase should be delayed until such time as the Higuera St. widening appeals period has terminated. In addition, since 17 (not 9 as stated in the city's initial study of, environmental impact) residents will be displaced by this action we f,eel the item should be open to discussion. We request these two things: I. to postpone said item to the next City Council meeting on December 3, 1985 2. that said item be changed from a consent item to a discussion item. Thank you John Kay Representative for residents of the Evans Building 158 Higuera St. San Luis Obispo, CA 9340I 543-9839 RffiflffiNVffiM , t 'l I jr i -i- CITY CI.TiiK Si\N L'.ll$ 03lG::C, CA