HomeMy WebLinkAbout04/19/2005, C3 - PROPERTY EXCHANGE AGREEMENT WITH OCEAN PARK HOTELS-CVP, LLC FOR RIGHT OF WAY ALONG CALLE JOAQUIN council M
April 19ih,2005
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CITY OF SAN LUIS OBISPO
FROM: Jay Walter, P.E. —Public Works Director
Prepared By: Timothy Scott Bochum, P.E. —Deputy Director
SUBJECT- PROPERTY EXCHANGE AGREEMENT WITH OCEAN PARK HOTELS-
CVP, LLC FOR RIGHT OF WAY ALONG CALLS JOAQUIN
CAO RECOMMENDATION
Approve an agreement with Ocean Park Hotels — CVP, LLC. for the exchange of property and
right-of-way along current and future Calle Joaquin and authorize the Mayor to execute the final
agreement.
DISCUSSION
The City of has been working closely with property owners, businesses and individuals to
complete the Calle Joaquin Relocation project currently being undertaken by Costco as part of its
mitigation requirements. As part of that project, property for street right-of-way (ROW) must be
acquired across a small number of parcels under private ownership. Two of these properties are
under the ownership of Ocean Park Hotels—CVC, LLC, which is pursuing development projects
under the City's development review process for two hotels along Calle Joaquin.
The City has been in negotiation with Ocean Park Hotels for many years as part of their
development review process and during discussions of the advance development work needed for
both the Los Osos Valley Road (LOUR) Interchange project and the Calle Joaquin Relocation
project. In essence, we have been working to develop a property exchange agreement that will
allow acquisition of necessary ROW (adjacent to their property at 1605 Calle Joaquin) without a
cash payment and in lieu of such payment, the City will exchange existing Calle Joaquin ROW
(adjacent to their property at 1515 Calle Joaquin) that will become obsolete when the relocation
project is completed.
The attached draft agreement achieves these objectives and allows conveyance of the needed
ROW for the Calle Joaquin relocation. When that construction project is complete and existing
Calle Joaquin is no longer necessary, the property owner will be allowed to utilize the exchanged
property for use in development of his hotels, assuming subsequent project approval by the City.
The agreement also conveys to the City the necessary construction and slope easements required
to construct the Calle Joaquin Realignment project. A utility easement is preserved in the
existing Calle Joaquin ROW area to allow existing utilities to remain in place.
Property Exchange Agreement—Ocean Park Hotels CVP, LLC. Page 2
FISCAL IMPACT
There is no fiscal impact to the City as a result of this agreement.
ALTERNATIVES
Do not enter into the agreement. This alternative is not recommended because timing of the
Calle Joaquin relocation project is critical in addressing current safety issues near LOVR and
traffic that will be generated by new development in the LOVR area. Further, if a property
exchange agreement is not reached, financial compensation would be necessary to acquire the
needed ROW for the Calle Joaquin Relocation project.
ATTACHMENT
Draft Agreement
i:Lcouncil agenda reports\2005 agenda reports\transportation and development review (bochum)\traffic engineering (senor)\car
flagg property exchange agreement.doc
ATTACHMENT 1 .
4-07-0: Oslo/Costc l lagg/rev agreemt 4-6-05 clean)
PROJECT: City of San Luis Obispo=Calle Joaquin Realignment
ASSESSOR'S PARCEL#'S: 053-171-028,030,013(Ocean Park Hotels-Flagg)
RIGHT OF WAY AGREEMENT
THIS AGREEMENT is made and entered into by and between Ocean Park Hotels-
CVP,LLC, hereinafter called"Grantor", and the City of San Luis Obispo, a charter city,
hereinafter called"City."
RECITALS:
A. Grantor owns three parcels of land off Calle Joaquin in the City of San Luis
Obispo, identified by the San Luis Obispo County Assessor's office as AP#053-
171-028, AP#053-171-030, and AP#053-171-013, hereinafter referred to as
"Grantor's Parcels."
B. Grantor has submitted development plans to City for the construction of two hotels
upon Grantor's Parcels.
C. The City wishes to realign Calle Joaquin in preparation for future planned
interchange improvements in the area (the "Future Calle Joaquin Interchange
Improvement Project.").
D. In order to realign Calle Joaquin as proposed by the City, certain rights of way will
need to be acquired by City over portions of Grantor's Parcels.
E. In order to develop one of Grantor's proposed hotels, the"Hampton Project," upon
Grantor's Parcels in accordance with Grantor's pending plans, Grantor seeks to
obtain and utilize certain sections of existing Calle Joaquin that will become
superceded by the proposed Calle Joaquin Realignment Project (hereinafter
referred to as the "Roadway Realignment Project.") and to assure interim and
future access for the Hampton Project to Calle Joaquin.
F. Also in order to realign Calle Joaquin as proposed by the City, the driveway of the
adjacent property identified by the San Luis Obispo County Assessor's office as
AP#053-171-021 and hereinafter referred to as the "Motel 6 Parcel"would have to
be relocated utilizing an 0.013 acre area from Grantor's Parcels.
G. Grantor and City propose certain land exchanges, whereby Grantor would grant
new public roadway and related easements to the City for the Roadway
Realignment Project and; in exchange,the City would abandon certain existing
roadway rights of way that will become superseded and unnecessary for future
public use to Grantor, upon completion of construction of the Roadway
Realignment Project.
Now therefore, in consideration of the mutual agreements and benefits of the parties to
this Agreement, and other considerations hereinafter set forth, City and Grantor mutually agree as
follows:
Page 1 of 5
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1. CONVEYANCE OF REAL PROPERTY TO CITY. Grantor agrees to convey
to City, and City agrees to accept from Grantor, certain real property interests necessary for the
realignment of, construction of, and maintenance of Calle Joaquin. Said real property interests
shall include the following:
(a) Public Street Conveyance. Grantor agrees to grant to City in Fee,real
property for public street and related purposes in, on, over, and across
those certain portions of Grantor's Parcels that are shown in green and in
blue on the property exhibit (two pages) attached hereto and incorporated
herein, and hereinafter referred to as "Exhibit A."
(b) Permanent Slope Easements. Grantor agrees to grant to City permanent
slope easements over the areas shown in pink on the attached Exhibit A.
(c) Temporary Construction Easements. Grantor agrees to grant to City
temporary easements for the purposes of facilitating construction of the
new public roadway improvements, over the areas shown as speckled
areas in the attached Exhibit A.
(d) Fee Conveyance. Grantor agrees to grant to City, or its assigns, that
certain area shown in yellow on the attached Exhibit A, for the purposes of
realigning the Motel 6 Parcel driveway. Grantor acknowledges that this
fee conveyance parcel will eventually be transferred and integrated with
the Motel 6 Parcel.
An instrument in the form of a grant deed (the "Grant Deed") conveying the above referenced
real property interests to City has been executed by Grantor concurrently with the execution of
this Agreement and delivered to City representatives.
2. CONDITION OF TITLE TO PROPERTY CONVEYED TO CITY. Grantor
agrees to convey all of the real property interests described in Paragraph 1 above to City, free and
clear of conflicting title liens and encumbrances, leases, assessments,easements, and other
possessory or non-possessory interests in the real property, except for recorded public utility
easements and recorded public rights of way. Grantor warrants that there are no oral or written
leases on all or any portion of the areas being conveyed to City, or if there are any such leases,
Grantor agrees to indemnify and hold the City harmless and reimburse City for any and all of its
losses and expenses occasioned by reason of any lease of said property held by tenant of Grantor.
Title to the real property interests conveyed by Grantor shall vest in City, subject only to Real
Property Taxes for the current fiscal year, recorded public utility easements , recorded public
rights of way, and other items as may be approved in writing by City in advance of Grant Deed
acceptance. City will obtain and review a preliminary title report, at City expense, to conium the
acceptability of the condition of title in advance of Grant Deed acceptance. Grantor agrees to
work with City to seek any encumbrance releases necessary to assure that clear title to the rights
to be transferred by Grantor to City is conveyed.
3. PROPOSED PUBLIC IMPROVEMENTS. Grantor understands that the City
proposes to construct or have constructed public street and related improvements within the
permanent easement areas conveyed by Grantor to City. The new roadway improvements are
hereinafter referred to as "the Calle Joaquin Realignment."
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4. MISCELLANEOUS COSTS. The City agrees to pay any usual and necessary
transfer and recording fees incurred in this transaction and,.if title insurance is desired by the
City, the premium charged therefor.
5. RECORDATION OF GRANT DEED. The City agrees to accept the Grant
Deed referred to in Paragraph 1 hereinabove, at such time as the condition of title to the real
property interests described therein is deemed acceptable to City, and agrees to then cause the
same to be recorded in the office of the San Luis Obispo County Recorder.
6. CONVEYANCE OF REAL PROPERTY TO MOTEL 6 PARCEL OWNER.
Grantor acknowledges that once the Calle Joaquin Realignment is constructed and the Motel 6
Parcel driveway is realigned to the new roadway, City will quitclaim the rights granted to City by
Grantor in and to that certain fee conveyance area described in Paragraph 1(d) hereinabove, to the
owner(s) of the Motel 6 Parcel. In conjunction with such conveyance, Grantor agrees to
participate, at no cost to Grantor,in any lot line adjustment/parcel merger application and
approval process required by City, with the Motel 6 Parcel owner, to perfect the lot lines between
Grantor's Parcels and the Motel 6 Parcel relative to the area quitclaimed, in order to comply with
any City requirements regarding said lot line adjustment and parcel legalization.
7. RECORDATION OF QUITCLAIM DEED. The City agrees to execute and
record a quitclaim deed for the area referred to in Paragraph 1(d) hereinabove to the owner of the
Motel 6 Parcel promptly upon the completion of the Calle Joaquin Realignment and the Motel 6
Parcel driveway realignment, and to process in good faith any lot line adjustment or other City-
required processes to perfect said area and merge it into the Motel 6 Parcel.
8. PERMISSION TO ENTER. Grantor hereby grants to the City and its agents
and contractors,permission to enter upon Grantor's Parcels as of the date of this Agreement, for
the purposes of preparation for and construction of the Calle Joaquin Realignment, subject to all
applicable terms and conditions contained in this Agreement and the associated Grant Deed.
9. INDEMNIFICATION. In conjunction with preparing for and completing the
construction of the Calle Joaquin Realignment, the City agrees to defend, indemnify, and hold
harmless Grantor from any and all claims, damages, costs,judgments, or liability resulting from
the negligent or willful acts or omissions of the City or its officers,employees, agents,
contractors, or assigns, during the time that the Temporary Construction Easements referred to in
Paragraph 1 of this Agreement are in effect.
10. EXCHANGE PROPERTY. In exchange for Grantor's cooperation and
participation in the Roadway Realignment Project and Grantor's conveyance of the real property
interests described hereinabove to City, City agrees to convey by Quitclaim Deed to Grantor, at
no cost or expense to Grantor, those specific portions of the existing Calle Joaquin that will
become superceded by the Calle Joaquin Realignment, and that lie immediately adjacent to and
contiguous with Grantor's Parcels. Specifically, those sections that City will quitclaim to
Grantor are those generally shown in Exhibit B, attached hereto and incorporated herein by this
reference (hereinafter called "Exchange Property'). Grantor acknowledges that City cannot
quitclaim said property interests until such time as the Calle Joaquin Realignment has been
completed and City has complied with all necessary processes of abandonment of public rights
required in advance of the conveyance of such rights. City agrees to pursue such processes in
Page 3 of 5
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good faith and to complete the quitclaim of said interests to Grantor within eighteen (18) months
after the date of completion of the Calle Joaquin Realignment. The quitclaim of interests to
Grantor shall be subject to reservation of existing easements for public utilities. In conjunction
with quitclaiming said rights to Grantor, City and Grantor shall take such steps as may be
necessary, at no cost to Grantor, to.merge or otherwise incorporate (and shall merge or otherwise
incorporate) the Exchange Property with and into Grantor's Parcels.
11. FLAGG TRIANGULAR.REMAINDER. Grantor hereby elects and shall retain
ownership of the small parcel identified as "Flagg Triangular Remainder" on Page 1.of Exhibit
A, attached, and shall have the right, subject to standard City approval and permitting processes,
to utilize said parcel for signage or other permittable purposes. Grantor further agrees to grant
permission to the"Margie's Diner Parcel," identified in the County Assessor's records as
Assessor's Parcel#053-171-029, to erecta sign on this Flagg triangular Remainder parcel,
subject to Grantor's and City's approval of sign details and reasonable conditions, if the owner of
the Margie's Diner Parcel expresses an interest in erecting and maintaining a sign in said
location.
12. ACCESS TO AND DEVELOPMENT OF THE HAMFrON.PROJECT. City
hereby authorizes direct access to the future Calle Joaquin from that portion of Grantor's Parcels
that will be developed with the Hampton Project, subject to all conditions and approvals of City's
Planning Department. This provision is not intended to circumvent nor limit the normal City
development submittal, review and approval process for the Hampton Project,but rather to
confirm City's acknowledgement that the Hampton Project parcel will have direct access from
realigned Calle Joaquin and that an initial interim access to the Hampton Project parcel from the
realigned Calle Joaquin may utilize the proposed Future Calle Joaquin Interchange Improvement
Project right of way upon the Hampton project parcel until such time as the City is able to
proceed with the construction of the Future Calle Joaquin Interchange Improvement Project.
Grantor agrees that no structural improvements will be planned or constructed within that area
identified as the Future Interchange Improvement Project right of way,per plans on file at City
offices as of the date of this Agreement.
13. JUDGMENT IN LIEU OF DEED. In the event Grantor is unable to deliver
acceptable title to the property rights described in Paragraph I of this Agreement within a
reasonable time under the terms of the Agreement,the City may file an action in eminent domain
to pursue the acquisition of the real property interests necessary for the construction of the Calle
Joaquin Realignment and/or the resulting relocation of the Motel 6 Parcel driveway. If City so
elects, and at City's sole discretion, this Agreement shall constitute a stipulation which may be
filed in said proceedings as final and conclusive evidence of the total amount of damages for the
taking, including all of the items listed in Section 1260.230 of the Code of Civil Procedure,
regarding Grantor's Parcels.
14. ARTICLE HEADINGS. Article headings in this Agreement are for convenience
only and are not intended to be used in interpreting or construing the terms, covenants and
conditions of this Agreement.
15. ENTIRE CONSIDERATION. The parties have herein set forth the whole of
their agreement. The performance of this Agreement constitutes the entire consideration for the
property rights being conveyed by Grantor to City and shall relieve the City of all further
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obligation or claims on this account, or on account of the location, grade or construction of the
Calle Joaquin Realignment.
16. COMPLETE UNDERSTANDING. This Agreement constitutes the entire
understanding between the parties with respect to the subject matter hereof, superseding all
negotiations,prior discussions, and preliminary agreements or understandings, written or oral.
This Agreement may not be amended except in writing by the parties hereto or their successors
or assigns.
17. COUNTERPARTS. This Agreement may be executed in counterparts, each of
which so executed shall irrespective of the date of its execution of delivery be deemed an
original, and all such counterparts together shall constitute one and the same instrument.
18. .CITY COUNCIL APPROVAL. This Agreement is subject to and conditioned
upon approval and ratification by the San Luis Obispo City Council. This Agreement is not
binding upon the City until executed by the appropriate City official(s) acting in their authorized
capacity.
No Obligation Other Than Those Set Forth Herein Will Be Recognized.
GRANTOR:
Ocean Park Hotels-CVP,LLP
Dated: by
James M. Flagg,General Partner
APPROVED AS TO FORM:
by
Ci ttomey
APPROVED AS TO CONTENT:
by
Public Works Director CITY OF SAN LUIS OBISPO,
A CHARTER CITY:
by
Date
ATTEST:
by
City Clerk
a
Prepared by 7Date
Reviewed by
Page 5of5 n � ` �
NOTE REGARDING EXHIBITS:
DUE TO TIME SENSITIVITY, THIS REPORT IS BEING
DISTRIBUTED WITHOUT THE FINAL AGREEMENT
EXHIBITS, WHICH ARE CURRENTLY BEING
PREPARED. THE EXHIBITS WILL BE DISTRIBUTED TO
COUNCIL BY THE END OF THE WEEK (4/15105). IF, FOR
SOME REASON, THE EXHIBITS ARE NOT COMPLETED
IN TIME, THE ITEM WILL BE RESCHEDULED FOR
COUNCIL CONSIDERATION ON MAY 39 2005.
i
RED FILE
MEETING AGENDA
DATE-1/ ITEM
c o u n c i l m E m o iza n 6 u m
April 19, 2005
TO: City Council
VIA: Ken Hampian, City Administrative Officer
FROM: Jay Walter,P.E.—Public Works Director
Timothy Scott Bochum,Deputy Director of Public Works
SUBJECT: Continuance of Item #C-3, Property Exchange Agreement with Ocean Park
Hotels—CVP,LLC until the May 3`d,.2005 Council Meeting.
Public Works staff received communication late this afternoon from Ocean Park Hotels — CVP,
LLC regarding Item C-3 of tonight's agenda. Ocean Park has stated there are a couple of issues that
they need more time to consider prior to final approval of the property exchange agreement.Prior to
this contact staff was under the assumption that all remaining issues had been resolved by the
current draft agreement and that the draft agreement could be acted upon by Council.
Although the timing of the property exchange is time sensitive in order to allow construction of
Calle Joaquin to commence, staff.believes that it is prudent at this time to continue this item to the
May 3, 2005 Council meeting to allow additional discussions with the property owner and address
their concerns, if any, to deliver a final agreement.
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0 15 30 45 60
LEGEND EXHIBIT A
Pon !!Tsiiiia 1:1250 a (APN: 053-177Park 1-028) Cbeforercel
takes): 1.486 AC.
(64,730.16 SF)
Ocean Paris Hotels(Flagg)Parcel 0.473 Ac.
(APN 053-171-013) (20,612.34 SF)
Slope Easements(SE)(2 total): 0.020 Ac.
(883.09 SF)
El
Qty ROW: 0.068 A6
(2,975.24 SF)
Temporary C utnx2lon
(TCE)(3 total): 0.795 AC.
(34,634.09 SF)
\ Flagg Small Remainder-0.030 Ac.
TICE Di: 114.42 SF (1,294.67 SF)(including i T�
(APN: 053-171-028)
SE D2: S06.41 SF
i
Calle Joaquin (Realigned)
/ ROW D3: 2,975.24 SF
/ SE D4: 376.68 SF —
/ . 053- 71X
TCE 05: 13,907.33 SF
a .. APS::
Flagg Main
Remainder- 1.368 Ac.
(59,577.16 SF) /
(Including 1 TCE) /
(APN: 053-171-028) TCE 136: 20,612.34 SF
(Entire 0.473 Ac. Parse
�— — — under TCE D6)
Calle Joaquin (Existing
— — i
'FIFMKI �q��tltl�aM w�' 'M Gltnot�� CALLE JOAQUIN REALJGNMENT
3141L�1EL.W IISYR6IXfYa 616IDR1R W
A L S O C I A Y G S NYffllw tzo68 im[OOIw/.➢OR N0 Rpvmt¢w
tntwEn�ac.sox no t.[ax smRcr.rtwnaR.
[R t i R[[R■ ra icwaar NEOOOOIIS our cnuias a ttaanunas EXHIBIT D - APN: 053-171-028 & APN: 053-171-013
r[R R N c t t m G N¢twtmrrs ar exars�o'u�sm+cs rmtmu®
er ARINRE Doan Hurt G WT WHJLT w•OVFn¢
O tl R Y[I O R tQg{Npl G fJw NflTan PREpOT NON
DRAWN BY: TR CHECKED BY: SJH DATE: 09/17/04
0 15 30 45 50TTSiiiiii Exm�
1:1250 1a
LEGEND VV
® Ocean Park Hotels(Flagg) Parcel
(APN: 053-171-028): 1.486 Ac.
(64,730.16 SF)
® Ocean Park Hotels(Flagg) Parcel 0.473 AC.
(APN 053-171-013) (20,612.34 SF)
® City R/W to be Abandoned: 0.20 Ac.
(to APN: 053-171-013) (8,926.3 SF)
® City R/W to be Abandoned: 0.38 Ac.
(to APN: 053-171-028) (16,517.5 SF)
Calle Joaquin (Realigned)
/
/
0
g
i
0.05 AC.
a 193.922 M"2
G
CITY R/W
0.20 AC.
829.28 M"2
8,928.3 Fr2
s
Calle Joagwn W••�_ CITY R/W
marmim
1,340.90 Y"2
>m YYaLmJr ca wLEu¢Y Lr Glave•ssaa�TJs
"z ' M CALLE JOAQUIN REALIGNMENT
[.Y,.LL.. MEIFC+IdT1EWPJII. To =OIIYmRImT EXHIBIT B — ABANDONMENT PLAT
O L 11��t E[ m G rsmomin w rxaLmaW mma amawo:n
R YRUI YIIER 111W G WT YL9L1 p pleGlg
1 Y N Y L f O L[ ap,Igylmllg yJg1 G CJI IY111LR pYCYT NM
DRAWN BY: TR CHECKED BY: PXR DATE: 04/13/05
�IIIIIIIIII����I�� IIII= �
aiifficouncit mcmomnaum
JCity of San Luis Obispq
RECEIVED I
DATE: April 13, 2005 APR 1 �-, M 1 I
TO: Mayor and Members of the City Council SLO CITY CLERK
FROM; Audrey Hooper, City Clerk
VIA: Ken Hampian, City Administrative Officer
SUBJECT: PROPERTY EXCHANGE AGREEMENT WITH OCEAN PARK HOTELS-CVC,
LLC FOR RIGHT OF WAY ALONG CALLE JOAQUIN
Attached are the exhibits to the subject Property Exchange Agreement. These documents were not
available at the time the Agenda packet was distributed.
I
%'COUNCIL P
IR
I
-2-CA
RED FILE ACA HIEF
ATTORNEY
ME, I G AGENDA a cLEAKICRIG CHF
DAT # C'.3 ° T HODS� R
GA301-03 AGENDASUted File Correspondence\Red File 012905 Supplemental Information.DOC