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HomeMy WebLinkAbout07/21/2009, C7 - SUMMARY VACATION OF EXCESS RIGHT-OF-WAY OF UPHAM STREET (APPROXIMATELY 758 SQUARE FEET) council Mfi,,D Ju, 21,2009 acEnba nEpoat h.Nu.6� C 41- C I TY OF SAN LU I S OBISPO FROM: Jay D. Walter, Public Works Direct O Prepared By: Hal Hannula, Supervisit Civil Engineer SUBJECT: SUMMARY VACATION OF EXCESS RIGHT-OF-WAY OF UPHAM STREET (APPROXIMATELY 758 SQUARE FEET) RECOMMENDATION Adopt a resolution vacating an excess portion of Upham Street not required for street or highway purposes. DISCUSSION Background Council previously authorized the transfer of approximately 8,200 square feet of City property (which was partially occupied for many years by an existing privately-owned, historic Railroad Square building) to Depot Square, LLP. See Attachment 1 for the "Real Property Exchange Agreement." That transfer was authorized in exchange for Depot Square's contribution of a number of area improvements beyond its project requirements, as well as Depot Square's assumption of liability and defense and indemnification of the City for any potential liability that may arise from contamination on the site that could exist related to historic railroad operations. The transfer of property will occur through the lot line adjustment process. See Attachment 2 for a preliminary lot line adjustment map. The summary vacation of a portion of Upham Street is another transaction necessary to accommodate the renovation of the historic railroad area. The portion of Upham Street to be vacated was not included in the 8,200 square feet of City property to be transferred by lot line adjustment per the property exchange agreement because there is a separate statutory procedure for vacation of right-of-way (ROW) by which abandoned ROW simply reverts to the adjacent private property owner. Upham Street was originally a through street acquired by the City with the Ingleside Homestead Tract in the year 1887. Currently, Upham terminates at the intersection of Santa Barbara Street with the new signalized entrance to the historic railroad area. Upham Street Summary Vacation Page 2 Action The portion of Upham to be vacated is approximately 758 square feet between Santa Barbara Street and the railroad tracks. The portion to be vacated is described in Exhibit "A" and shown in Exhibit "B" of the attached draft resolution (Attachment 3) and is currently a landscaped area that is no longer required for street or highway purposes. The proposed vacation meets the criteria for a summary vacation per § 8334(a) of the Streets and Highways Code because it is excess street ROW not required for street purposes. The procedures for summary vacation are outlined in § 8335 and 8336 of the Streets and Highways Code. The procedures require that City Council adopt and record a resolution of vacation. Summary vacation proceedings do not require a public notice or hearing. While the vacation of a street in an area where a general plan has been adopted usually requires a finding of general plan conformity by the Planning Commission, Government Code § 65402 exempts certain minor abandonments, including "the disposition of the remainder of a larger parcel which was acquired and used in part for street purposes" if the legislative body specifies by resolution that the vacation shall not be subject to that process. Because the abandonment at issue is minor in nature and falls within the scope of§ 65402, staff recommends that the vacation is appropriate for summary process. Why is the recommended action to vacate rather than sell the property? In some circumstances where street ROW is proposed for vacation, the additional property has value to the adjacent land owner. In this case, the vacation is part of a beneficial transaction process with Depot Square, LLP. The initial discussions about what land would be needed for the renovation-of the historic railroad area included the idea that the existing ROW .would be abandoned to allow for development of the adjacent site. The owner constructed a number of area improvements beyond its project requirements and assumed potential liability that may arise from contamination that could exist related to historic railroad operations. Because the initial discussions included the exchange of land, rather than the sale of land, it would be inconsistent to now ask the owner to pay for the vacated ROW after they have already assumed these obligations. Next Steps Once vacated, the ROW will be incorporated into the Railroad Square project and become a landscaped area maintained by the property owner. The attached resolution of vacation authorizes the Mayor and City staff to take the necessary steps to complete the vacation and convey the property to the adjacent property owner. Recordation of the resolution of vacation can be followed up with a Grant Deed or a Quitclaim Deed,at the discretion of the property owner and the City. CONCURRENCES The Community Development Director concurs with the summary vacation recommendation. e� -ot G:\Staff-Repons-Agendas-Minutes\—CAR\2009\DevRcv\Upham Summary Vacation\CAR—Summary Vacation Upham Street.doc Upham Street Summary Vacation Page 3 FISCAL IMPACT There is no fiscal impact resulting from the recommended action. ALTERNATIVE The City Council could chose to not take any action at this time. This alternative is not recommended as it would be inconsistent with the Real Property Exchange Agreement approved by Council and other discretionary approvals by the City. ATTACHMENTS 1. Real Property Exchange Agreement 2. Preliminary Lot Line Adjustment Map 3. Draft Resolution Vacating a Portion of Upham Street G:\Staff-Reports-Agendas-Minutes\_CAR\2009\DevRev\Upham Summary Vacation\CAR—Summary Vacation Upham Street.doc Attachment 1 REAL PROPERTY EXCHANGE AGREEMENT THIS REAL PROPERTY EXCHANGE AGREEMENT ("Agreement") by and between, Depot Square, LP a California limited partnership ("Depot Square") and the City of San Luis Obispo,a municipal corporation and charter city (the"City"), is made as of July 1,2008 (the "Agreement Date"), with reference to the following facts: A. The City is a charter city as defined in the California Constitution article XI, section 5.The parties agree and acknowledge that the City has availed itself of the power to make and enforce all laws and regulations with respect'to municipal affairs as required by the California Constitution and as indicated the City's Charter section 203. B. The City owns, or has rights in, certain property located at 1820 Osos Street in the City of San Luis Obispo (Assessor's Parcel No. 003-655-009), which is currently utilized as a surface parking lot. C. Depot Square owns,or has rights in;certain property located and 1880 Santa Barbara Avenue in the City of San Luis Obispo (Assessor's Parcel No. 003-655-006). and adjacent to the above City property,which is currently occupied by the historic Railroad Square building. D. On May 21, 2007,the City's Architectural Review Commission(ARC) approved project design plans for the preservation and rehabilitation of the Railroad Square building and the demolition and reconstruction of the annex portions of the building (City Application No. ARC 44-07). E. During planning review of the ARC application, it was discovered that portions of the existing Railroad Square building encroach upon a portion of the City property described herein. F. In order to complete the proposed project as approved by the ARC, it is necessary for Depot Square to obtain approximately 8,184 square feet of the City property by means of a lot line adjustment. Depot Square has submitted an application and map for the proposed lot line adjustment to the City(Application No. LLA 44-07)and has requested that the City approve the lot line adjustment, and thereby transfer the necessary property to Depot Square, in exchange for the consideration set forth herein. G. The Parties recognize that there is a risk that the City property being transferred. herein is impacted by underground soil contamination resulting from past railroad operations. It is the intention of the Parties that, through this agreement and a subsequent contaminated materials agreement to be drafted at the direction and to the satisfaction of the City Attorney, Depot Square will assume all risks, liabilities and financial obligations arising from or relating to contamination, if any. 1 1�,-7-4 \I Attachment 1 H. The City Council finds that disposition of the City's property as set forth herein is in the best interest of the City and results in public benefits, including, but not limited to, the provision of enhanced public amenities to the historic Railroad District; maintenance of a compact urban form; facilitation of economic development, provision of a variety of housing types; and enhancement of the historical context and character of the Railroad District. NOW,THEREFORE, the parties hereto agree as follows: I Agreement-to Exchange Properties. (a.)Exchange. Subject to the terms, covenants and,conditions of this Agreement and compliance with otherwise applicable City application requirements,on or as soon as practicable after July 2,2008, City will approve Depot Square's application for a lot line adjustment, as reflected with greater specificity in City Application No. LLA 44-07 and depicted in Exhibit A hereto. The approval will result in the transfer of the City's ownership interest in approximately 8,184 square feet of Assessor's Parcel No. 003-655- 009 being transferred to Depot Square. As soon as practicable after the execution of this Agreement,Depot Square will record a grant deed.transferring to the City ownership of the triangular portion of Depot Square's property located at the northwesterly boundary of its property,Assessor's Parcel No. 003-655-006, and adjacent to the City property(as depicted with greater specificity in Exhibit I hereto). 2. Exchange Values of Properties. (a.) Monetary Value. The parties agree that establishing a precise monetary value of the City property subject to exchange via the lot line adjustment is not practical due to the longstanding and previously undiscovered encroachment of the historic Railroad Square building onto the subject City property, the remote likelihood that the City would seek to make any economical use of that portion of its property, and the possibility of. contamination on the property relating to historical railroad operations. 3. Consideration. (a.) Real Property. As partial consideration for transfer of the City owned property to Depot Square,Depot Square shall record a grant deed transferring to the City ownership of the triangular portion of Depot Square's property located at the northwesterly boundary of its property, Assessor's Parcel No. 003-655-006, and adjacent to the City property (as depicted with greater specificity in Exhibit 1 hereto). (b.) District Improvements. Depot Square agrees to construct its Project(City Application No. ARC 44-07) substantially as approved by the ARC. In consideration of the remainder of the value of the City property to be transferred to Depot Square for purposes of constructing the Project, which is not offset by the real property to be transferred to City by Depot Square as set forth above, Depot Square will provide amenities and construct improvements in conjunction with its Project with approximate values as set forth in Exhibit 2 to this Agreement and also as set forth below: 2 C11-5 'Attachment 1 1) Construct wooden boardwalk on Santa Barbara Street 2) Install seven(7) pedestrian oriented light fixtures consistent with District character at locations to be agreed upon by applicant and City 3) Re-construct Rear parking lot 4)Public Art, a.donation to the RR Museum in exchange for a period piece of RR art to be incorporated into the project (estimated cost of$80,000) 5) Landscape maintenance (estimated cost of 54,800 annually) (c.) Adequacy. The Parties agree that the dollar value of the proposed improvements to be constructed by Depot Square that is in excess of the value associated with improvements that the City could otherwise have required as conditions of project approval is equal to or greater than any reasonably estimable value of the City's property. Together the improvements will constitute a significant public benefit to the District and the City as a whole and constitute adequate consideration for the property transferred. 4. Hold Harmless and Indemnification. As additional consideration for the transfer of City property, Depot Square shall indemnify, defend and hold the City harmless from and against any and all liabilities, claims, demands and expenses of any kind or nature made on or after the effective date of the lot line adjustment, including but not limited to, any claim arising from or related to any title defect; labor, materials or supplies in connection with work performed on the City Property; hazardous materials and contamination(as set forth here and in the separate contaminated materials agreement between the Parties, as drafted to the satisfaction of the City Attorney and which Depot Square hereby agrees to execute); and all expenses related thereto including, without limitation,court costs and attorneys' fees. 5. Taxes. All property taxes relating to the transfer of City property to Depot Square shall be the sole responsibility of Depot Square. 6. Miscellaneous. (a.)Notices. All notices, demands or other communications of any type (collectively "Notices")given by the City to Depot Square or by Depot Square to the City, whether required by this Agreement or in any way related to this transaction, shall be sufficient if in writing and delivered by hand or Federal Express or similar courier service to the person to whom the Notice is directed or mailed by United States Mail, as aRegistered or Certified item,Return Receipt Requested, at or to the addresses specified in this section,as follows: 3 1..�' Attachment 1 If to City: If to Depot Square: City of San Luis Obispo 990 Palm Street San Luis Obispo, California 93401-3249 Attention: City Administrative Officer Facsimile: (805) 781-7109 With a copy to: City Attorney City of San Luis Obispo 990 Palm Street San Luis Obispo, California 93401-3249 Facsimile: (805) 781-7409 (b) Governing Law; Plurality; and Gender. This Agreement shall be construed and interpreted in accordance with the laws of the State of California. Where required for proper interpretation, words in the singular shall include the plural; the masculine gender shall include the neuter and the feminine, and vice versa. (c.) Amendment. This Agreement may not be modified or amended,except by an agreement in writing signed by the parties to this Agreement. The parties may waive any of the conditions contained in this Agreement or any of the obligations or the other party under this Agreement, but any such waiver shall be effective only if in writing and signed by the party waiving such conditions or. obligations.. (d.) Authorization. The person executing this Agreement on behalf of Depot Square hereby warrants and represents to the City that all necessary legal prerequisites to that party's execution of this Agreement have been satisfied and that he or she is fully authorized to do so and to bind the party of whose behalf he or she signs. The person executing this Agreement on behalf of the City claims to do so to the extent the authority to do so has been duly delegated to that person by the City Council of the City in accordance with applicable law. (e.)Time of Essence. Time is of the essence in this Agreement. (f.) Attorneys'Fees. If it becomes necessary for either party to file a suit to enforce this Agreement or any provisions contained in this Agreement,or to seek damages for a breach, the prevailing party shall be entitled to recover, in addition to all other remedies or damages, reasonable attorneys'fees incurred in such suit. (g.) Cantions. The description headings of the several Articles, Sections and Paragraphs contained in this Agreement are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions of this Agreement. 4 Attachment 1 (h.) Entire Agreement. Except for those certain obligations of Depot Square or successors as set forth in the separate hazardous materials agreement to be executed by the Parties, the Agreement constitutes the entire agreement among the parties pertaining to the subject matter of this Agreement and supersedes all prior and contemporaneous agreements and understandings of the parties in connection therewith.No representation, warranty, covenant,agreement or condition not expressed in this Agreement shall be binding upon the parties to this Agreement or shall affect or be effective to interpret, change or restrict the provisions of this Agreement. (i.) Counteraarts. A counterpart of this Agreement with separate but fully executed signature pages attached thereto shall have the full force and effect of an original executed instrument. 0.) Successors. This Agreement shall be run with the City Property transferred to Depot Square and shall be binding upon and inure to the benefit of the Parties, their heirs, assigns,and successors in interest: Dated: %)t, 2wlir CITY OF SAN LUIS OBISPO DEPOT SQUARE, LP A California Limited Partnership By: By: Mayor Dave Romero Hamts hall Authorized Agent APPROVED AS TO FORM: on P. Lowell, Michael Pfau, City Attorney Attorney for of quare EXHIBi-�l to Agreement RAILROAD SQUARE PROPERTY EXCHANGE ttac �ent 1 QO lY ' X is 4 Area to be deeded to City 7-4 co % £4 v DArea to be deeded o to Depot Square LP 4 / t I i ® Area to be deeded to the City Area to be deeded to Depot Square LP Depot Square LP Owned Parcel Iqty Of.Sd s OBISpO City Owned Parcel SLO GIS tachment I o i 1 � \ s s0 S\ 1 r r / P Hotel Excess Railroad Square property to City or Park 1 / Hotel/Vintage Properties. —4 } J{11 Area=161 S.F. Q jr ` \Existig Property Line Adjusted Property Line 6° Area io be adjusted from City Parcel to Railroad Square Parcel. a Area=8184 S.F. ° ' Railroad Square ° BuildingDOW SQ�AP �r Upham Street R.O.W.to be abandonded/relinquished by ' city,and included in LLA. Area=752 S.F. --J j DRAFT Upham Street R.O.W.to be J / abandonded/relinquished Exhibit for by city,and included in LLA. S L4 AL 07-0050 / s°- Area-8 S.F. r i Lot Line Adjustment it Railroad Square 1880 Santa Barbara Street © ., San Luis Obispo,California do r / / Now Mb Use Redevelopment FioJoct °'•+ - C4,' iEXHIB�,—.12 to Agreement quality Joijife Attachment 1 CSp�eciailty Co'nstractic' Inc. Specialty I U V. '10 QbJspo. 27038-001 June 20,2008 Depot Square, LP 895 Aerovista Place, Suite 100 San Luis Obispo, CA 93401 Mr. Hamish Marshall Reference: Railroad Square, 1880 Santa Barbara St., SLO Subject: Improvements in Public ROW Mr. Hamish Marshall: In accordance with the Assistant City Attorney's request,.SCI has reviewed the conditions of approval for the project and evaluated which improvements being constructed where originally conditioned, and which were not. I Depot Square LP is constructing the following improvements in the public right of way that were not originally conditioned as part of the project: i Removal and salvage of railroad tracks, remove AC walk, remove $6200 I curbs Demo parking stalls, curbs, etc in upper $7200 [Pave new stall, new cuts, etc in upper parking lot $6300 New curbs for walkway, new flatwork for public sidewalk --I 1 Grading for prep of all new work in public walks and drives,base $12000 1 for flatwork I Trimming of trees for clearance and access in public right of way $2500 Additional 7 bollard lights along Santa Barbara St. in public right of $28000 Way. TOTAL OF IMPROVEMENTS j $71.200 Thank you in advance for your attention to these matters. Sincerely, Specialty Construction, Inc. Tom Ehlers Project Manager File: 01 Estimate Cc: JK RB,RC,Garcia Architecture,Oasis License A, B 619361 645 Clarion Court'San Luis Obispo, CA 93401 Telephone: 8051543-1706`Administrative Fax: 8051543-1712'Estimating Fax:8051543-1722 �x _.Attachment 2 a @ 6Y "'OdS/9O 51/17 MW i0 All7 3N1 NI N100 095/7P0"19.40.0.730t14d iO NOLLUOd OM/ „$[y 3 Hgl�g'l�Ig`g 31E 96i-W 079 Wd d09732HYd 90 ARAWS O1NdVHVOdaL 8 wil ®� �3 (,� 963! r h � ppp ggq0 b'n / \Illy/ fit Ila 6 gag u N qq pp � pp eY C .� • ' C 4 ! 9 g �pA/511111 N' \ 5 yy6€ r\ ag -=i.: � _ - �G a 41 1.1 \ 1u is j z g I ell lo � mw Allq , g� r \ \�, ' � —a - jj ^\ - ' Attachment 3 RESOLUTION NO. (2009 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO SUMMARILY VACATING A PORTION OF UPHAM STREET WHEREAS, California Streets and Highways Code Section 8334 provides that the City Council may summarily vacate an excess right-of-way of a street not required for street purposes; and WHEREAS, the portion of Upham Street to be vacated is unnecessary.for present or prospective public use as a street; and WHEREAS, pursuant to California Government Code Section 65402, this parcel is appropriate for summary vacation without a general plan conformity report by the Planning Commission because it is the remainder of a larger parcel, which was acquired and used in part for street purposes. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The portion of Upham Street as described in Exhibit "A" and shown in . Exhibit `B", attached hereto and made a part hereof, is not necessary for present or future pubic street purposes. SECTION 2. The summary vacation of said right of way is made pursuant to California Streets and Highways Code, Chapter 4, Article 2, Section 8335, and from and after the date of this Resolution no longer constitutes right of way for public street purposes. SECTION 3. Pursuant to California Government Code Section 65402, this parcel is appropriate for summary vacation without a general plan conformity report by the Planning Commission because it is the remainder of a larger parcel, which was acquired and used in part for street purposes. SECTION 4. The City Clerk shall cause a copy of this Resolution, duly attested under the seal of the City,to be recorded in the Office of the San Luis Obispo County Recorder. SECTION 5. The Mayor and City staff are authorized to take action necessary to cant' out the intent of this resolution, including conveying the vacated portion of Upham to the adjacent property owner. Upon motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: R Resolution No. Attachment 3 (2009 Series) Page 2 The foregoing resolution was adopted this 21 st day of July 2009. Mayor David F. Romero ATTEST: Elaina Cano, City Clerk APPROVED AS TO FORM: Jo than P owell, City Attorney G:\Staff-Reports-Agendas-Minutes\_CAR\2009\1)evRev\Upham Summary Vacation\Resolution—Upham Summary Vacation.doc 'Attachment 3 Exhibit "A" PORTION OF ABANDONED UPHAM STREET RIGHT OF WAY A portion of the Upham Street.right of way of the Ingleside Homestead Tract in the City of San Luis Obispo, County of San Luis Obispo, State of California,as shown on the map filed in Book A,Page 132 of Maps, in the Office of the County Recorder of said County,said portion being described as Parcels X and Y as follows: .Parcel X Bounded on the north by the northerly right of way line of said Upham Street; Bounded on the east by the westerly line of Parcel B described in Document Number 075219 recorded in Book.2786,Page 550 of Official Records in the Office of the County Recorder of said County; Bounded on the west by the southerly projection of the easterly right of way line of Santa Barbara Avenue as shown on said Map; Bounded on the south by the following described line; Commencing at a 1/2 inch rebar with cap stamped LS 4819 marking the most southerly corner of Parcel 1 as shown on the Parcel Map SLO 84192 filed in Book 37,Page 59 of Parcel Maps, in the Office of said County Recorder; Thence along the line common with said Parcel 1 and Parcel 2 of said Parcel Map,north 55004'16"east(north 53006'21"east per 37/PM/59)39.72 feet to a#5 rebar capped LS 6192; Thence south 34°55'57"east 47.59 feet to a tag stamped LS 6192; Thence south 15°38'02"west 240.09 feet to a tag stamped LS 6192 and-the True Point of Beginning; Thence north 75°18'51"west 47.10 feet to a point on the said southerly projection of the easterly right of way line of Santa Barbara Avenue and being marked by a#5 rebar capped LS 6192. Excepting therefrom Parcel Y described below. Containing 750 square feet,more or less. Attachment 3 Exhibit "A" .Parcel Y Bounded on the north by the centerline of said Upham Street; Bounded on the east by the westerly line of Parcel B described in Document Number 075219 in the City of San Luis Obispo, County of San Luis Obispo, State of California, recorded in Book 2786, Page 550 of Official Records in the Office of the County Recorder of said County; Bounded on the south by the following described line: Commencing at a 1/2 inch rebar with cap stamped LS 4819 marking the most southerly comer of Parcel 1 of said Parcel Map; Thence along the line common with said Parcels 1 and 2,north 55°04'16"east(north 53°06'21" east per 37/PM/59)39.72 feet to a#5 rebar capped LS 6192; Thence south 34955'ST'east 47.59 feet to a tag stamped LS 6192; Thence south 15°38'02"west 240.09 feet to a to a tag stamped LS 6192 and the True Point of Beginning; Thence north 75°18'51"west 47.10 feet to a point on the said southerly projection of the easterly right of way line of Santa Barbara Avenue and being marked by a#5 rebar capped LS 6192. Containing 8 square feet,more or less. The above-described parcels are graphically shown on Exhibit `B" attached hereto and made a part.hereof. END DESCRIPTION ✓C' No.6192 4 Exp. 3131/10 JffsepiVr. Morris. PIS 6192 exp. 3/31/2010 P Exhibit III Attachment 3 cn R�E�Ap50: A FD L&T QP• 0 Z z 5 LS 4519 Dw F mo ., z m `CAP ILLEGIBLE 0 PARCEL X=750 SQ,FT. = m O „ma o � m a > ti m61 o� c PARCEL Y=8`SO, FT. 5� S�ger85�,.E - 4,�10, WESTERLY LINE 4 OB PARCEL B E y0 G\V 278610R/550 i � s LEGEND 0 -SET 5/8°REBAR LS 6192 SCALE` ❑ -SET LEAD TACK&TAG LS 6192 0 5 10 20 • -FD 1/2"REBAR LS 4819 - UNLESS OTHERWISE NOTED R1 -371PW59 1 INCH= 10 FEET TPOB-TRUE POINT OF BEGINNING EXHIBIT B UPHAM ST JOB NO.: 562-01 W.�62CLAR"CWAT ABANDONMENT DRAWING:RS SAN LUIS OBISPO.cns7aot CITY OF SAN LUIS OBISPO DRAWN BY.MM T8055a4aUn --- - F3054442% COUNTY OF SAN LUIS OBISPO, CA DATE:B/2008 �'wvmmcvwctww WALLACE GROUP C�- 13