HomeMy WebLinkAbout11/10/1998, C11 - PURCHASE OF 893 MARSH STREET-POST OFFICE PARKING LOT councilM fin D.
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C I TY OF SAN L U IS O B 1 S P 0
FROM: Michael D. McCluskey,Director of Public Works-V�
SUBJECT: Purchase of 893 Marsh Street-Post Office Parking Lot
CAO RECOMMENDATION
1. Authorize the purchase of property located at the rear of 893 Marsh Street for$350,000.
2. Authorize an agreement for services between the City and United States Postal Service.
3. Authorize the CAO to sign purchase documents and the deed.
DISCUSSION
Following Council direction, staff has successfully concluded negotiations with the Postal
Service for purchase of sufficient area to allow full expansion of the Marsh Street Parking
Structure. The expansion project was first authorized by the City Council in November of 1995
and received formal budgetary authority in January of 1996. With funding ability, appraisals
were undertaken and on April 16, 1996 the City Council, in closed session, reviewed that data
and authorized staff to begin negotiations with the Postal Service.
Staff made contact with representatives of the Postal Service immediately and, via a series of
meetings over the course of next 14 months, was successful in negotiating the ability to accept an
initial offer from the City. The Postal Service initially had internal policies against such sales
which during this period had also been reversed. This change in policy helped in achieving the
ability to make an initial offer. The formal first set of negotiating parameters as a basis for a
final document was made on February 14, 1997. The Postal Service was positive and responsive
to the document. Over the last 20 months many issues were discussed and resolved. Key issues
for the Postal Service fell into three basic groups: a) maintaining high levels of service to its
customers; b) input during the design process; and c) operation and maintenance issues once
construction is complete. Two documents were created to resolve all issues: the purchase
agreement and an agreement covering ongoing service and maintenance.
Purchase Agreement
A key issue was how the property would be purchased: would the City purchase air rights (via an
Air Space Easement) over the post office parking lot, or would the City purchase the land and
deed back air rights to the Post Office? It was finally decided that, due to construction related
issues, it would be easier for the City to purchase the land and deed the Air Space Easement back
to the Postal Service.
Council Agenda Report-Property Purchase-893 Marsh Street
Pape 2
The purchase agreement is a slight modification of the one most commonly used by the City in
property acquisition. Although all paragraphs (25 total) must be negotiated separately and/or
modified individually for each purchase, the specifics necessary to address Postal Service
concerns are found in Paragraph 21 - Design Issues of Expanded Parking Garage. Five areas are
addressed:
1. The need of the Postal Service to have significant review and comment authority in the
design of the structure to assure their service levels are maintained.
2. That the structure shall be designed to prohibit access from the roof of the structure to any
part of the Post Office structure.
3. That pedestrian access from the structure be only to pedestrian areas of either Pacific Street
or Morro Street and not to Post Office parking lot.
4. That the structure be designed to allow efficient and effective ingress and egress to Postal
Service delivery vehicles.
5. That all operations of the Postal Service by maintained during construction to the satisfaction
of the Postal Service.
Staff feels each of these areas do not constrain the ability to proceed with design or construction
of the facility and in fact are currently being incorporated into the project. However, these are
pre-design, design and during-construction issues. In order to meet the post-construction issues
of the Postal Service the second agreement was necessary.
Agreement for Maintenance and Services
Once the structure is complete and postal operation are back to normal, key issues became the
on-going nature of the relationship of the City to the Postal Service with its unique needs. The
agreement reached provides a clear relationship of the City's duties to be fulfilled as long as the
Post Service owns and operates a Post Office in the current building. The five key areas
addressed are:
1. Maintaining sufficient minimum lighting levels for postal patrons parking in the air space
allocated to the Postal Service.
2. Maintaining all landscaping around the two sides of the existing Post Office.
3. Maintaining all postal signage within the air space of the Postal Service.
4. Maintaining the parking surface within the air space of the Postal Service.
5. Servicing, enforcing and maintaining Postal Service parking meters within the air space of
the Postal Service- should they decide at some point to install parking meters.
PLANNING COMMISSION ACTION
The Planning Commission reviewed the proposed property acquisition for General Plan
conformity on October 14, 1998. The Commission found the proposed acquisition to be in
conformance with the General Plan.
Council Agenda Report-Property Purchase-893 Marsh Street
Page 3
FISCAL IMPACT
In April of 1996 the Council approved $720,000 for appraisals, acquisition of two properties,
design and environmental studies. The $350,000 purchase price is within the negotiating
parameters the Council approved on April 16, 1996 and sufficient funds exist to proceed with the
purchase without supplemental funding.
Attachments
Vicinity map
Purchase agreement and Agreement for maintenance and services (copy available in the Council
reading file)
I:addiv/propertyacq/postoffice/po purchase 11-10-98 agenda report
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