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HomeMy WebLinkAbout20 - Status of Negotiations for 338 Dahlia Avenue, Corona del MarCITY OF NEWPORT BEACH OFFICE OF THE CITY ATTORNEY June 19, 1996 TO: Mayor and Members of the City Council FROM: Robin Clauson, Assistant City Attorney June 24, 1996 015� Council Agenda Item No. 20 COUNCI JUN 24 RE: Status of Negotiations for 338 Dahlia Avenue, Corona del Mar City staff has discussed the purchase of the property at 338 Dahlia Avenue in Corona del Mar with the owner since early 1992. The City is interested in purchasing the property so that the City can stabilize the slope adjacent to the Fernleaf Ramp to protect public property and access along Fernleaf Ramp. Staff believed it had reached a tentative agreement with the owner of the property in September 1995, and forwarded a letter which outlined the agreement. In April, 1996, the City Attorney wrote to the owner asking for a response to the September, 1995 letter. To date staff has not received a verbal or written response from the owner or his attorney. Staff intends to continue efforts to work out a solution to remediate the slope condition in cooperation with the property owner. However, due to the unsuccessful nature of past negotiations, it may be in the City's best interest to consider eminent domain proceedings to acquire the property. Eminent domain proceedings can be summarized as follows: Appraisal and Offer: The City will need to first update an existing appraisal to comply with the provisions of Section 1263.010 et seq. of the Code of Civil Procedure and related regulations. As soon as possible after the appraisal is completed, and the fair market value of the property is established, we can then provide the owner with a written offer. The City's offer cannot be less than the amount of the appraisal. The appraisal must consider not only the value of the parcel taken but also any damages for the impact on the remainder parcel, known as severance damages. The offer must include certain information about the appraisal, including the basis for the offer and the fact the offer does not include any relocation benefits the owner would be entitled to receive. We must then allow the owner an opportunity to negotiate with the City. •1 • • --• • If an agreement is not reached, the Council cannot file an eminent domain action until it holds a hearing on a proposed adoption of a Resolution of Necessity. A Resolution of Necessity requires approval by a two-thirds vote of the entire Council. If a Resolution of Necessity is adopted, we would next prepare and file a Complaint and record a lis pendens on the property. When the Complaint is filed the City may deposit into the Court the amount of the fair market value established by the appraisal. After filing the Complaint and service on the owner, the City may continue settlement negotiations during litigation. If no settlement is reached, the owner is entitled to have a jury determine the fair market value of the property and any severance damages. At the same time as the City initiates negotiations to purchase the property, the City must prepare and adopt a relocation plan and provide a copy of the plan to all potentially eligible persons. There are detailed requirements for this plan which will analyze all of the rights with regards to relocation benefits. The City will require the assistance of a relocation consultant to prepare the plan and provide relocation assistance to any persons eligible for these benefits. This memo is intended to only summarize the detailed, complex area of eminent domain law to give the Council an outline of the general procedures to be followed. The City Council is entitled to meet in closed session once the updated appraisal is received to determine whether an offer should be made to the owner of the property and if so the amount and terms of the offer. 197 • - •- • Direct staff to continue discussions with the property owner, obtain an appraisal to conform to CCP 1263.010, return to Council for closed session to consider results of appraisal and if necessary take the steps to proceed to acquisition by eminent domain. i ti Robin L. Clauson, Assistant City Attorney F Ade\ccmemo\dahlia.doc