HomeMy WebLinkAbout05/24/1976 Item #G-4M�
May 24, 1976
CITY COUNCIL AGENDA
?., ITEM NO. G -4
TO: :CITY COUNCIL APPROVED BY CIiY COUNCIL
FROM: 'Public Works Department MAY 2 4 1976
DATE
SUBJECT:. 32ND STREET PROPERTY EXCHANGE
RECOMMENDATIONS:
1. Approve in concept the property exchange with the
Southern Pacific Land Company on the basis that the
parcels are of equal value, and direct the staff to
prepare the necessary deeds and agreements.
2. Direct staff to budget over a three year period a
transfer from the Off- Street Parking Meter Fund to the
Gas Tax Fund a sum of $133,000 to purchase Parcel "Z"
for parking purposes.
DISCUSSION:
On April 28, 1975 the Council authorized the staff to negotiate a
property exchange with the Southern Pacific Land Co. and William Cagney for
the following property:
(A) From the City-to S.P. and Cagney - Parcels "F" and "H"
(B) From S.P. and Cagney to the City - Parcels "X" and "Z"
These parcels are.shown on the attached sketch.
An agreement between the City .staff and the Southern Pacific Land
Co. (S. P.) staff has been reached on the basis that the two City parcels and
the two S.P. parcels are of equal value and should be exchanged without
monetary consideration. This concept will have to be approved by the City
Council and Southern Pacific management.
The appraiser, George H. Jones, MAI, retained by the City determined
the value of the.parcels as follows:
City Owned.Parcels
S.P.
Owned Parcels
Parcel "F"
= $ 96,560
Parcel "X"
= $ 54,500*
$ 70,000 **
Parcel "H".-
104,000
Parcel "Z"
= 133,000
133 000
Total
200,500
Total
187,500*
203,000 **
*The appraiser assumed that the larger remainder S.P. Parcel could
be developed with 4,000 Sq.Ft. R -2 lots. Most R -2 lots in the
vicinity are 2,000 to 3,000 Sq.Ft.
* *The appraiser assumed that the larger remainder S.P. Parcel could
be developed with 5,000 Sq.Ft. R -2 lots. 5,000 Sq.Ft. is the
minimum lot area allowed for R -2 by the code without a variance.
May 24, 1976
Subject: 32nd Street Property Exchange
Page 2
The value of the S.P. parcels is 6% below the City parcels in one case and
1% above in the other case. Since present trends are for reduced density it
is assumed that the higher value for the S.P. parcels is the appropriate value
to use. The total area of City owned parcels "F" and "H" is 19,672 Sq.Ft. and
the total area of S.P. owned parcels is 20,750 Sq.Ft.
Some background information on the exchange and the way the parcels
were chosen follows:
When.32nd Street was widened between Balboa Boulevard and Newport
Boulevard, whole lots were acquired to avoid large severance damage costs.
Not all of the property acquired was needed for the street widening and two
excess parcels were created. The parcels are indicated as Parcels "F" and
"H" on the attached sketch.
Since these parcels were purchased with State Gas Tax Funds this
property must be exchanged for property to be used for street purposes or
sold, with the revenue generated being deposited in the gas tax fund.
The Market Basket site adjacent to Parcels "F" and "H" is owned by
the Southern Pacific Land Co. with a master lease to William J. Cagney. Both
of these parties have contacted the City and requested that the City exchange
Parcels "F" and "H" for other property they own in the area. Two parcels
suggested for the exchange are shown as Parcels "X" and "Z".
Parcel "X" is a portion of the right of way needed if 32nd Street
were extended from Balboa Boulevard to meet an extension of Seashore Drive.
Parcel "Y" is the remainder of the needed right of way and it is assumed that
this parcel would be dedicated to the City as a condition of the development
of the adjacent vacant land. Until development occurs a 10' wide pedestrian/
bikeway could be constructed on Parcel "X ". Parcel "X" would be considered
as future street right of way and therefore an acceptable use of the property
acquired with gas tax funds.
Parcel "Z" is a good location for a City parking lot. It would be
an extension of the existing strip parking lot along Newport Boulevard begin-
ning at 28th Street. 25 to 28 parking places could be constructed on this
site. The site is situated so that it could be of benefit to the Cannery
Village area.
.Since the purchase of right of way for parking purposes.is not an
acceptable gas tax expenditure, the gas tax fund would have to be reimbursed
for the value of the parcel. It is recommended that the off -street parking
fund be used to repay the gas tax fund. The value of Parcel "Z" was appraised
at $133,000.
The estimated off - street parking fund balance on July 1, 1976 is
$61,000 with a revenue of $44,000 projected for the year. The following three
year fund transfer is suggested to repay the Gas Tax Fund:
January 1, 1977 transfer $61,000
January 1, 1978 36,000
January 1, 1979 36,000
Total Transfer T133,000
Joseph T. Devlin
Public Works Director