HomeMy WebLinkAbout10/19/1999, 9 - ACQUISITION OF PROPERTY AT 883 MARSH STREET i
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CITY OF SAN LUIS OBISPO �
FROM: Mike McCluskey, Director of Public Works'w
PREPARED BY: Keith Opalewski, Parking Manger
SUBJECT: ACQUISITION OF PROPERTY AT 883 MARSH STREET
CAO RECOMMENDATION
1) Adopt a Resolution of Necessity to acquire by eminent domain a 10-foot section of the
parking lot of property located at 883 Marsh Street as part of the Marsh Street Garage
expansion project.
2) Appropriate $35,100 from the unappropriated parking fund balance for the land purchase and
legal fees.
DISCUSSION
Background
In April of 1998, the City Council approved the hiring of a design team for the Marsh Street
Garage expansion. During the concept design phase the architect determined that in order to
maairni e the number of parking spaces and, more importantly, meet the requirements for Post
Office operations, a small portion, the rear 10 feet, or approximately 400 square feet, of the
parking lot located at he rear of the subject property needed to be purchased (Exhibit A). This
land acquisition is essential to meet the turning radius needed by the large postal trucks as they
egress the redesigned loading dock. Maintaining normal truck delivery operations was a key
requirement for the sale of the Postal Service property to the City.
Following Council direction in January 1999, staff began and has continued to work towards an
agreement with the property owners, Mr. & Mrs. William Ranelletti, for purchase of sufficient
area to allow expansion of the Marsh Street Garage. The City's property negotiator, Lillian
Jewell of Hamner, Jewell Associates has continued to attempt to negotiate the purchase of the
10-foot section with the property owners. To date, a formal agreement for the land acquisition
has reached an impasse centered on the issue of guaranteed construction staging for the
property owner's stated plans to add a second story to their building.
Acquisition Status
Based on appraised fair market value,the property negotiator offered a cash settlement($20,100)
for the purchase of the land. The property owners rejected the offer. Thereafter a number of
items were discussed as possible measures to satisfy the property owners and allow a friendly
acquisition of the property. The City's last best and final offer included: a) designation of the
garage entrance lane as a public way to allow"zero" setback-for their addition;b)direct access to
pedestrian bridge from the second story; and c) a construction staging site (the back.half of the
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Council Agenda Report—Eminent Domain—883 Marsh Street
Page 2
former slo med parking lot) for the property owner's stated expansion project guaranteed until
the site was actually needed for the garage expansion project itself.
Only the first two items were accepted by the property owner. The property. owners demanded
that the construction staging area be guaranteed for the life their expansion project. Given that
they have not even formally submitted any plans to the City for processing as of the writing of
this agenda item, there is little likelihood that any such construction project could be completed
before the Garage Expansion project needs the site. The City's staging offer was rejected with
the understanding that the property owner would not sign a purchase agreement unless he
received a written guarantee to complete his expansion plans.
The City does not provide public space for construction staging for any private developer and has
never done so in the downtown. The City made this offer as a means to try to reach settlement
and because some space would be available on a temporary basis. Unfortunately, staff cannot
recommend to the City Council that a new precedent be set: essentially giving public space to a
private developer for as long as they want for a project that has not even been submitted and may
never be built. As a result of the property owners rejection of the City's final offer, the
negotiations have reached an impasse and staff is recommending the approval of the use of
eminent domain to acquire the needed section of land.
In approving the resolution of necessity, the Council will need to make the findings that:
• the public interest and necessity require the proposed project; and
• the proposed project is planned or located in a manner that will be most compatible
with the greatest good and the least private injury
• the property described in the attached resolution of necessity is necessary for the
proposed project
• the offer required by Section 7267.2 of the Government Code has been made to the
owner(s)of record of the property
Considering the direction of previous Council actions (12 meetings and over$1,000,000 spent to
proceed with the garage expansion), the parking demand in the immediate area, and the strong
support from residents, and the business community, it is staff's opinion that sufficient findings
exist for approving the use of eminent domain.
Marsh Street Garage Project Status
The expansion project has continued to receive Council support dating back to November of
1995, and most recently August of 1999. The August 1999 meeting approved the appeal of the
Planning Commission's denial of a use permit to grant height, site and setback variances for the
project. The project went before the Architectural Review Commission on October 4, 1999 and
received final design approval of the garage expansion. The project Architect is now pursuing
the completion of final plans and specifications for the construction bid documents.
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Council Agenda Report–Eminent Domain–883 Marsh Street
Page 3
With the acquisition of the 10-foot strip of the parking lot property, all-major properties (US
Postal Service and Mission Medical completed) needed to fulfill the Council goal of expanding
the Marsh Street Garage will be acquired. The 883 Marsh Street property is critical to the project
because it fulfills the purchase agreement with the Postal Service to maintain their current
operations for daily truck deliveries. Failure to obtain the required 10-foot section would require
major design and structural engineering changes that would increase the cost, reduce the number
of spaces, and severely impact the current construction schedule.
CONCURRENCES
The Downtown Association and their Broad of Directors continue to support the expansion of the
Marsh Street Garage and view the proposed action as necessary to complete this important
project.
FISCAL IMPACT
Based on the appraised purchase offer from the City, at least $20,100 (appraised value) will
initially be needed for the land purchase as it will be placed into a trust account with the courts.
In addition, estimated legal fees and court costs are $12-15,000. The current approved budget for
the garage expansion design and land acquisition has essentially been depleted at this time. The
additional funds needed to finalize the acquisition of the bookstore property will need to come
from the parking fund's unappropriated fund balance. As of October 1, 1999, the unreserved
parking fund balance was in excess of$2,200,000.
ALTERNATIVES
1) Direct staff to continue negotiations for the land purchase
Staff and the city's property negotiator have devoted numerous hours in an attempt to reach an
amicable agreement. Given the property owners desire to have a written guarantee for his
construction staging requirements, the City cannot comply because of the need to construct the
garage expansion project. In staff's opinion, as well as that of the property negotiator, initiating
eminent domain proceedings is the most cost effective and efficient means to finalize this land
purchase requirement.
2) Abandon the land purchase and consider a lesser project
The extra cost and.loss of parking coupled with the time delay would not support this alternative.
Furthermore, this approach would more than likely violate the purchase agreement with the
Postal Service and jeopardize the expansion project.
ATTACHMENTS—Resolution of Necessity
Exhibit A—Project Plan of Area to be Acquired
Car parable condercmanon
9-3
RESOLUTION NO. (1999 Series)
A RESOLUTION OF NECESSITY OF THE COUNCIL OF THE CITY OF SAN LUIS
OBISPO AUTHORIZING THE ACQUISITION BY EMINENT DOMAIN OF CERTAIN
REAL PROPERTY FOR THE CONSTRUCTION OF THE MARSH STREET GARAGE
EXPANSION PROJECT(APN 003-527-014; William A. Ranelletti and Mary E. Ranelletti,Owners)
WHEREAS, the public project proposed by the City of San Luis Obispo is the
construction of the Marsh Street Garage Expansion Project. The City needs to acquire certain real
property for that purpose; and
WHEREAS, written notice of the intent to consider adopting this resolution of necessity
was sent to the owner(s) of record pursuant to the last equalized County Assessment Roll. The
notice specified that the time and place of the hearing on this resolution of necessity would be on
October 19, 1999, at 7:00 p.m. in the City Council Chamber, 990 Palm Street, San Luis Obispo;
and
WHEREAS, no written requests to appear have been received; and
WHEREAS, the hearing was held and all interested parties were given an opportunity to
be heard.
NOW, THEREFORE, BE IT RESOLVED, based upon the evidence presented, by the
Council of the City of San Luis Obispo that:
Section 1. The property to be acquired is described in Exhibit "A" attached hereto and
incorporated herein;
Section 2. Said property is to be acquired for a public use, to wit, for public parldng and
public pedestrian access purposes, pursuant to the authority granted by Government Code
Sections 37350.5, 37353, 40401,40404 and Part 3,Title 7 of the Code of Civil Procedure;
Section 3. The public interest and necessity require the proposed project;
Section 4. The proposed project is planned and located in the manner which will be most
compatible with the greatest public good and the least private injury;
Section 5. The property described in Exhibit "A" is necessary for the proposed project;
and
Section 6. The offer required by Section 7267.2 of the Government Code has been made
to the owner(s) of record of the property.
9-4
NOW, THEREFORE, BE IT FURTHER RESOLVED by the Council of the City of San
Luis Obispo as follows:
Section 7. The City Attorney and special counsel, Price,Postel &Parma LLP,are hereby
AUTHORIZED AND EMPOWERED:
a. To acquire in the City's name, by condemnation, the said property in accordance
with the provisions of the California Eminent Domain Law in the Code of Civil Procedure and
the Constitution of California;
b. To prepare and prosecute in the City's name such proceedings in the proper court
as are necessary for such acquisition; and
C. To deposit the probable.amount of compensation, based on an appraisal, and to
apply to said court for an order permitting the City to take immediate possession and use of said
real property for said public uses and purposes.
Upon motion of seconded by ,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was this date if , 1999.
Mayor Allen Settle
ATTEST:
Lee Price, City Clerk
APPROVED AS TO FORM:
Je ey . Jor ense i Attorney
9-5
1. Fee Acquisition from APN 003-527-014,more particularly described as follows:
THE SOUTHEASTERLY 10 FEET OF THE NORTHEASTERLY 40 FEET OF LOT 6
IN BLOCK 100 OF THE MISSION VINEYARD TRACT, IN THE CITY OF SAN LUIS
OBISPO, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, AS PER MAP
FILED MARCH 8, 1873 IN BOOK A, PAGE 143 OF MAPS, IN THE OFFICE OF THE
COUNTY RECORDER OF SAID COUNTY.
2. Temporary construction easement for those reasonably necessary construction activities
required to construct the Marsh Street Garage Expansion Project, to commence upon the
effective date of an order for possession and to terminate two years thereafter over the
following described property:
A 10 FOOT WIDE STRIP OF LAND LYING IMMEDIATELY ADJACENT TO THE
NORTHWEST OF THE PARCEL DESCRIBED IN PARAGRAPH 1 ABOVE.
EXHIBIT A
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883 MARSH STREET, SAN LUIS OBISPO
FLOOR PLAN
Marsh Street
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66 2,640 SF
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Ila Shed 96 SF
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i 1,960 SF --�
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AFTER CONDITION
Scale 1" = 20't
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W O O r,•
V-t4TING AGENDA
� ol�oloull�lll1° ��III DAT ITEM #
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October 18, 1999 F&'ACAO
OUNCIL ❑CDD DIR
AO ❑FIN DIR
TO: City Council TORNEY ❑PW DRHIEF
LERKIORIG ❑POLICE CHF
VIA: John Dunn, City Administrative Of er , GAMp RECUTI �tR❑PERS DIR jO
FROM: Mike McCluskey, Director of Public Works.
SUBJECT: Impact of Not Acquiring Parable Bookstore Property
On October 19, 1999, the City Council will be considering the use of eminent domain to acquire
a 10 foot section of land for the Marsh Street Garage expansion. This small parcel is the last
piece of land needed to complete the required footprint for the proposed garage expansion.
Recently, the question has been posed of what would happen to the garage expansion project if
the 10 foot section was not acquired? As a result, staff contacted the design team to obtain more
precise information regarding the impact to the current garage design. The architect's detailed
response is attached for Council's review with the key points summarized as follows:
Building Design Changes---Redesign will be required to accommodate the maneuvering of the
Post Office truck. The Morro Street elevation will be increased by four feet to accommodate the
reconfigured truck movements.
Parking Space Reduction---Although the exact number is still to be determined, on-grade parking
spaces will be reduced. Based on the preliminary design,this could be 6-10 spaces.
Time Delay---The preliminary estimate is that a minimum of 2-21/2 months would be added to
the current schedule. This time frame could be considerably longer depending on the City
approval process for ARC and the City Council to approve use permit changes. The minimum
time delay would mean that the new spaces would not be available for the 2000 holiday shopping
season.
Postal Service Impact---The redesign would require Post Office approval and possible changes to
the current purchase agreement for their property. This could delay the project indefinitely if the
Post Office's concerns or requirements are not addressed.
Cost Impact---The fee estimate for the scope of work required to implement the proposed
changes is $98,400.
Considering all of the above negative impacts, staff recommends that the project proceed as
currently designed including the acquisition of the 10 foot section of land.
RECEIVED
attachments 0 C T 1 9 1999
SLO CITY CLERK
' Oct 15 99 05: 19p Steuer (805) - 227 - 0712 p. 2
STEUER FAX MEMO
PHILLIPS
TO: Keith Opalewski METSCH
FROM: Joe Steuer
MOORE
DATE: October 15, 1999, 05:19 PM
SUBJECT: Marsh Street Parking Garage Expansion PMSM#98028.00
ARCHITECTS
Keith,
It has been brought to my attention that there may be the need to pursue the project
without purchasing the portion of the property behind the Parable Bookstore. If the
City of San Luis Obispo doesn't make the proposed purchase:
• We will need to redesign the garage to accommodate the maneuvering of
the post office truck in the configuration shown on the attached drawing.
• The Morro Street elevation will end up rising approximately 4' feet higher
than currently drawn in order to accommodate this maneuver.
• We will need to add a minimum of 2-2.5 months on to the current project
schedule. At this point it is difficult to estimate the amount of time the
City approval process will add to this 2-2.5 month minimum.
• We will definitely have to go back through the ARC approval process.
• We may need to go back and get approval for a use permit.
• There will be an additional fee for the design team to perform the
necessary changes to the design. The fee estimate for the scope of work
required to implement the proposed change is$98,400. This includes the
estimated fees for all consultants working on the current project.
• It is likely that the layout required by the proposed change will reduce the
number of on-grade parking spaces.
• This may or may not require an amendment to the height variance.
Please call with any questions regarding these issues.
Joe S
Attached: 8 '/2 x 11 site plan of proposed change to truck maneuver.
ROGER A.PHILLIPS AIA
STEPHEN METSCH AIA
2020 ALAMEDA PADRE SERRA,SUITE22U,SANTA BARBARA,CA 93103 TEL S05 963-1955 FAX SOS-564-85R2 FRED L.SWEENEY AIA
935 RIVERSIDE AVENUE,#16 PASO ROBLES,CA 93446 TEL 805 227-4540 FAX 805-564-8582 JAMES E MOORE IV AIA
Oct 08 99 05: 00P Steuer 18051 - 227 - 0712 p. 3
MINOR
1332115 21210
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