HomeMy WebLinkAbout04/06/1999, C6 - PURCHASE OF TWO UNION PACIFIC RAILROAD PROPERTIES council
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C I TY OF SAN LUIS O B 1 S P 0
FROM: Michael D.McCluskey,Director of Public Works*m
SUBJECT: Purchase of two Union Pacific Railroad Properties
CAO RECOMMENDATION
1. Authorize the purchase of two properties from Union Pacific Railroad for the Railroad
Transportation Center and the Railroad Recreation Trail - Phase 2 in the amounts of
$680,995.65 and$81,837.50 respectively.
2. Authorize the CAO to sign purchase documents and the deed.
DISCUSSION
Railroad Transportation Center- Union pacific Railroad Property.
In 1995, negotiations for the purchase of property on Marsh Street for use as a consolidated
Multi-modal Transit Transfer Center(MMTC) collapsed. At that time, the City Council
authorized staff to pursue the acquisition of property near the current AMTRAK station as a
replacement site. This site, located south of the Railroad Square building with frontage on Santa
Barbara Street, had been offered for sale by Southern Pacific Railroad. Thus,there was a willing
seller and the site's location near the existing rail station farther emphasized its "multi-modal"
potential.
Since 1995,however, the proposed use of the railroad site has evolved somewhat. A consultant
study revealed that, while the site would be needed in the long term for a transit transfer center,
in the short term (present to 15 years out) it would be best used for additional AMTRAK
customer parking and short term SLORTA bus parking. Bus routing and schedule problems
were also identified as constraints to using this property as a transfer center at this time. Based
on the results of the consultant study, staff received new direction to continue to pursue
acquisition of the property for the newly formulated short- and long-term purposes. Addition-
ally, the Council recognized that purchasing the property would allow the City to acquire the
historical freight warehouse and save it as a cultural resource for eventual reuse. (As a separate
project, SLOCOG has approved the use of over $440,000 of Federal TEA-21 fimds to rehabili-
tate the freight warehouse.) Due to the fact that the project would no longer be a multi-modal
facility as originally envisioned, the project was renamed the Railroad Transportation Center
(RTC)to better reflect its location and character.
The RTC site includes two properties: one currently owned by the Union Pacific Railroad and an
adjacent parcel owned by Guidetti. The staff is separately pursuing the acquisition of the Guidetti
parcel. The Council reviewed two conceptual plans for development of the project site and, at
its last meeting, offered ideas for further refinements to the plan. These ideas will be incorpo-
rated where feasible into the project's final concept plan and construction documents. The
Council also approved the project's environmental documents, a Negative Declaration with
mitigation. The Planning Commission has found this project to be consistent with the General
Plan.
Before entering into formal acquisition negotiations with Union Pacific, staff obtained Phase I
and Phase H hazardous materials tests of the property as well as a Cultural Resources -
Council Agenda Report-Property Purchase-Railroad Transportation Center and Pbase II Bike Path
Pate 2
tion. While minor amounts of contaminates were found on the site all were below current state
mitigation levels and therefore are acceptable. The project will involve very little excavation- it
is mostly a parldng lot paving project, so little site disturbance is anticipated. As expected, no
cultural resources predating the Southern Pacific Railroad were found since railroad activity had
removed all original ground. However,remnants from the railroad era were found.
Staff obtained a formal appraisal of the property and began negotiations with Union Pacific
Railroad (successor to Southern Pacific Transportation Company). Staff received direction from
the Council on negotiation guidelines. The purchase price agreed to by UPRR is within the
parameters set by the Council.
Railroad Recreational Trail-Phase 2- Union Pacific Railroad
Purchase and development of the second phase of the Railroad Bt1ce Path (now called the
Railroad Recreational Trail) was identified in the 1997-99 Financial Plan. This project will
extend along the east side of the railroad from the northern end of Phase 1 of the trail at Bushnell
Street to the Jennifer-Oros Street Bridge.
Like the RTC site, staff obtained Phase 1 and Phase 2 hazardous materials reports. The reports
indicate that the site has some levels of contamination but that these levels are below State
mitigation thresholds except for an area near the northern end of the property. In this area Union
Pacific Railroad has assured the City, via the contract, that the property will be cleaned prior to
payment by the City.
Staff obtained negotiating guidelines from the Council for this property as well. The negotiated
price is within those guidelines and is the same price per square foot as Southern Pacific Railroad
property purchased in 1995 near Orcutt Road. The Planning Commission has found this project
to be consistent with the General Plan.
FISCAL IlVIPACT
Propertyfor the Railroad Transportation Center
The price of the UPRR property needed for the Railroad Transportation Center is $680,995.65.
The money for this acquisition is budgeted in the land acquisition account of the Railroad
Transportation Center project budget. The money in this account is appropriated from two
approved state grant allocations:
• Clean Air and TransportationImprovementAct of 1990(Proposition 116)Bond Funds
• Transit Capital Improvement(TCI)Funds
The following table s m n ari zes the proposed activity in the land acquisition account:
State Prop. 116 Grant State TCI Grant Total
Balance of Land AcquisitionAccount: $475,916.00 $582,000.00 $1,057,916.00
Cost of Railroad TransportationCenter Parcel: 98,995.65 582,000.00 680,995.65
Balance Remaining After Acquisition: $376,920.35 $0.00 $376,920.35
One property(Guidetti)remains to be purchased to complete all land acquisition for this project
Once that property has been acquired all remaining funds will be transferred into that project
construction account.
C6-2
Council Agenda Report-Property Purchase-Railroad Transportation Center and Phase II Bike Path
Page 3
Proper&for the Ra&oadRecreation Trail-Phase 2
The price of the property needed for the Railroad Recreation Trail-Phase 2 is$81,837.50. There is
$400,000 budgeted for this project in total (current allocation is shown in constriction account
only),and that money is appropriated from an approved Regional State Highway Account(RHSA)
Funds grant. Public Works recommends transferring$81,837.50 from the construction account to a
land acquisition account to cover this purchase. Remaining funds will be used for design and
construction.
ALTERNATIVES
Do not purchase the property.
Attachments
Vicinity map
Purchase agreement(copy available in the Council reading file)
Imddiv/propenyac9/mmtduprr/mmtccc agenda
C6-3
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