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HomeMy WebLinkAbout25 - Newport 32nd Street Street ModificationsCITY OF NEWPORT BEACH City Council Staff Report August 12, 2014 Agenda Item No. 25. TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director- (949) 644 -3330, dawebb @newportbeachca.gov PREPARED BY: Andy Tran, Senior Civil Engineer PHONE: (949) 644 -3315 TITLE: Newport Boulevard and 32nd Street Modification — Approval of Right -of -Way Acquisition Purchase and Sale Agreement for 3201 Newport Boulevard and 3204 Marcus Avenue ABSTRACT: To construct the preferred alternative of the Newport Boulevard and 32nd Street Modification project, real property is required from adjacent parcels. Staff successfully negotiated an agreement with Lido Pacific, LLC for the sale of both 3201 Newport Boulevard and 3204 Marcus Avenue to the City. A fully executed Purchase and Sale Agreement is needed to proceed with escrow and record the real property transaction. RECOMMENDATION: a) Approve the Purchase and Sale Agreement with Lido Pacific, LLC for the acquisition of real property for the Newport Boulevard and 32nd Street Modification project and authorize the Mayor and City Clerk to execute the Purchase and Sale Agreement; b) Direct the City Manager to execute the Certificate of Acceptance and authorize the City Manager, or his Designee, to open an escrow account, complete any actions necessary to complete the transaction, and execute any documents approved as to form by the City Attorney and in furtherance of the Purchase and Sale Agreement: and c) Approve Budget Amendment No. 15BA -002 appropriating $3,313,087.00 from the unappropriated General Fund balance to Account No. 7013- C2002048 and appropriating $3,048,413.00 from Measure M Competitive Fund (284 -3605) to Account No. 7284- C2002048 and recognizing $85,913 in additional revenue from Orange County Transportation Authority (284- 4861). FUNDING REQUIREMENTS: Staff recognizes that there are many competing needs and interests in the City that these general funds could be applied toward. In alignment with City Council goals and direction, as well as recent resident surveys and requests, staff has developed the Newport Boulevard modification project between Via Lido and 30th Street. Accomplishing this major purchase makes significant progress towards addressing traffic congestion on and off of the Peninsula, improving bicycle and pedestrian safety, as well as landscaping and further enhancing this important and high profile gateway. Upon approval of the budget amendment, the current budget will have sufficient funding for this purchase. Funding sources are as follows: Account Description Account Number Amount Measure M Competitive 7284- C2002048 $ 3,048,413.00 General Fund 7013- C2002048 $ 3,313,087.00 Total: $ 6,361,500.00 Proposed uses are as follows: Account Description Account Number Amount Purchase Agreement 7284- C2002048 $ 3,048,413.00 Purchase Agreement 7013- C2002048 $ 3,301,587.00 Escrow Expenses 7013- C2002048 $ 7,000.00 Incidentals 7013- C2002048 $ 4,500.00 Total: $ 6,361,500.00 DISCUSSION: This proposed widening project is located on Newport Boulevard between Via Lido and 30th Street and involves widening Newport Boulevard to accommodate one additional northbound through lane from 30th Street to 32nd Street and one additional southbound through lane from Via Lido to 32nd Street terminating as a right -turn only lane at 32nd Street. Bike lanes on both sides of Newport Boulevard will be extended from Via Lido to 32nd Street. The intersection at 32nd Street will be modified to improve roadway geometrics. This project also involves the construction of raised landscaped medians, parkway trees and some landscaping, street light modifications and upgrades to LED's, traffic signal modifications, and signing and pavement striping. As a result of the roadway widening and the addition of vehicular and bike lanes, on- street parking along Newport Boulevard between Via Lido and 30th Street will be eliminated. A new public parking lot will be constructed on the bank property being acquired under this action on the northwest corner of Newport Boulevard and 32nd Street which will replace the on- street parking being removed. In addition to this new public parking lot and several other public parking lots in the vicinity, there are four privately owned parking lots on the west side of Newport Boulevard that serve the existing businesses between 32nd Street and Short Street. As the project is still in the Concept Development phase, the new parking lot and street landscaping has not been fully developed and detailed as of this date. Upon approval of the purchase of the bank property, staff plans to complete the detailed landscaping concept plans for the street and parking lot in accordance with the approved Lido Village Design Guidelines and bring these landscape concept plans back to City Council at a public meeting for review and approval prior to applying for a Coastal Development Permit and completing the construction plans. We welcome the public's input as these concept plans are finalized. In addition to this purchase of 3201 Newport Boulevard and 3204 Marcus Avenue to accommodate the widening, three other minor partial acquisitions or dedications are desirable and will be addressed as necessary by separate action. It should be noted that two of these parcels are currently owned by the City, and a third, 3305 Newport Boulevard is owned by a private party. It should also be noted that the desired partial acquisition involving 3305 Newport Boulevard is very small and is only being considered to maintain a consistent 8 -foot sidewalk across that frontage, however it is not necessary to acquire it to complete the project should the owner not want to voluntarily enter into a sales agreement. The table below shows the potential parcels involved. An exhibit showing the proposed right -of -way acquisitions, dedications and temporary construction easement is also attached to this report. Address Description Current Owner Description 3201 Newport Former Bank Lido Pacific, LLC Full Acquisition Boulevard 3204 Marcus Parking Lot Lido Pacific, LLC Full Acquisition Avenue 3305 Newport Retail Strip Center Terra Cotta Realty Fund, LLC Partial Acquisition Boulevard 3300 Newport Former City Hall City of Newport Beach Partial Dedication Boulevard 3531 Newport Gateway Park City of Newport Beach Partial Dedication Boulevard An appraisal for the two parcels at 3201 Newport Boulevard and 3204 Marcus Avenue was completed on October 16, 2013 and reflects the estimated cost for the full acquisition of both parcels. The existing former bank building will be demolished and a new municipal parking lot will be constructed on the site as part of this project should Council approve this Purchase and Sale Agreement. Additionally, an appraisal for 3305 Newport Boulevard was also completed on November 18, 2013 that reflects the estimated cost for a partial acquisition and a temporary construction easement (TCE) associated with that particular parcel. Both appraisals are on file with the project manager and available if needed. Initial offers were presented to both Lido Pacific LLC for the parcels at 3201 Newport Boulevard and 3204 Marcus Avenue, and to Terra Cotta Realty Fund, LLC for 3305 Newport Boulevard on December 19, 2013. These offers reflected the just compensations shown on the appraisals. After several months of negotiations, the property owners, the City, and right -of -way consultant Paragon Partners have now reached a tentative agreement with Lido Pacific, LLC. The agreed upon purchase price for full acquisition of both 3201 Newport Boulevard and 3204 Marcus Avenue is $6,350,000.00. Negotiations with Terra Cotta Realty Fund, LLC regarding 3305 Newport Boulevard are still currently on- going. Pursuant to the terms of the negotiated agreement, the City would acquire the property from Lido Pacific, LLC in an "as -is" condition, with the seller disclaiming all representations and warranties as to the environmental condition of the property. As part of its due diligence, City staff identified the property at 3201 Newport Boulevard as a former gas station site. In 1973, this site was redeveloped and three underground storage tanks were removed. As part of the Purchase and Sale Agreement, the City will have a 45 -day due diligence period to examine and inspect the property. If during the due diligence period, staff determines that the condition of the property is not desirable, the City will have the option to not proceed with the real property transaction. Staff also recently completed a subsurface investigation within the adjacent public alley and confirmed that there is no presence of any objectionable material. Staff was successful in applying for Orange County Transportation Authority (OCTA) Measure M competitive grant funds in the amount of $3,048,413 to pay for a portion of this right -of -way acquisition associated with the project. The remaining balance will be paid with City funds. In addition to the actual right -of -way cost as shown above, staff anticipates additional cost of up to $11,500 to pay for escrow fees and other miscellaneous fees associated with the closing of this transaction. Upon receiving the payment demand from the escrow company, funds will be deposited into an escrow account. Any surplus funds will be refunded to the City upon close of escrow. In addition to funding for the right -of -way purchases as described above, the City will also be receiving $225,000 in OCTA M2 grant funding, combined with approximately $172,000 in gas tax for the necessary project environmental and design work. The consultant contract for the project design and environmental work was awarded to VA Consultants by City Council on June 12, 2012. The construction of this project is expected to cost approximately $2.0 million. Staff successfully applied for OCTA M2 grant funding in the amount of $1,194,000 to fund the construction phase. The balance of the construction cost will most likely come from the City's annual gas tax allocation. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. As part of the project concept design phase, an Initial Study /Mitigated Negative Declaration was prepared and circulated for public review from June 26, 2014 to July 28, 2014. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Description Attachment A - ROW Exhibit Attachment B - Budget Amendment Attachment C - Purchase and Sale Agreement R; Jill mean `(E) R/W c (F) R/W IW ro 3300 NEWPORT BLVD -- v R/W = 10,782 SF N. If ,� RIGHT -011 ACQUISITION FOR NEWPORT BLVD AND 32ND STREET WIDENING I min %//////MMMIi FFFFFFFFFTI ATTACHMENT A RIGHT —OF —WAY (R /W) ACQUISITION AREAS RIGHT —OF —WAY (R /W) DEDICATION AREAS TEMPORARY CONSTRUCTION EASEMENT (TCE) EXISTING PROPOSED (E) RIGHT —OF —WAY (P) RIGHT —OF —WAY 3531 NEWPORT Pill \� R /W_= 1,224 .^�F (E) R/w --(P)) Raw (E) R /W� r 1 ....•c vv+� C_ 1/1 4 R}W - -- CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT 08/12/2014 ATTACHMENT B City of Newport Beach NO. BA- 15BA -002 BUDGET AMENDMENT 2014 -15 AMOUNT: $s,3s1,5oo.00 EFFECT ON BUDGETARY FUND BALANCE: X Increase Revenue Estimates X Increase in Budgetary Fund Balance X Increase Expenditure Appropriations X Decrease in Budgetary Fund Balance Transfer Budget Appropriations No effect on Budgetary Fund Balance SOURCE: from existing budget appropriations X from additional estimated revenues X from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: To increase expenditure appropriations from General Fund unappropriated fund balance and Measure M unappropriated fund balance to fund acquisition of real properties for the Newport Boulevard and 32nd Street Modification project and to recognize additional revenues for the oroiect from the Orange Countv Transoortation Authority. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account Description 010 3605 General Fund - Fund Balance 284 3605 Measure M Competititive - Fund Balance REVENUE ESTIMATES (3601) Fund /Division Account 284 4861 EXPENDITURE APPROPRIATIONS (3603) Description Measure M Competitive Signed: Signed: Signed: Finance Approval: City City Council Approval: City Clerk Amount Debit Credit $3,313,087.00 $3,048,413.00 $85,913 $85,913 $3,313,087.00 $3,048,413.00 7 °!(,- /Y Date ,l ttol rA Date Date Description Division Number 7013 Street Account Number C2002048 Newport Blvd / 32nd Street Mod Division Number 7284 Measure M Competitive Account Number C2002048 Newport Blvd /32nd Street Mod Signed: Signed: Signed: Finance Approval: City City Council Approval: City Clerk Amount Debit Credit $3,313,087.00 $3,048,413.00 $85,913 $85,913 $3,313,087.00 $3,048,413.00 7 °!(,- /Y Date ,l ttol rA Date Date ATTACHMENT C AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY AND ESCROW INSTRUCTIONS Escrow No. Date of Opening of Escrow: _, 2014 To: First American Title Company ( "Escrow Holder") Attention: Telephone: THIS AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY AND ESCROW INSTRUCTIONS (this "Agreement") is entered into this _day of . 2014 (the "Effective Date ") by and between the City of Newport Beach, a Municipal corporation and Charter City (hereinafter called "Buyer" or "City"), and Lido Pacific, LLC, a California Limited Liability Company (hereinafter called "Seller") for acquisition by Buyer of certain real property hereinafter set forth. RECITALS: A. Seller is the owner of that certain real property commonly known as 3201 Newport Boulevard (APN 423 102 03) and 3204 Marcus Avenue (APN 423 382 05), located in the City of Newport Beach, County of Orange, State of California, more particularly described on Exhibit "A" attached hereto and by this reference incorporated herein, together with all improvements now or hereafter constructed thereon, all easements, licenses and interests appurtenant thereto and all intangible property owned or held by Seller in connection with such real property, including without limitation, development rights, governmental approvals and land entitlements (collectively referred to herein as the "Property "). B. City has the authority to acquire property for public uses utilizing City's power of eminent domain. In lieu of City's exercise of said power and under the threat thereof, Seller is willing to sell the Property to City and City is willing to purchase the Property from Seller, upon the terms and conditions set forth in this Agreement. NOW, THEREFORE, the parties hereto agree as follows: TERMS AND CONDITIONS 1. PURCHASE AND SALE OF PROPERTY. Seller agrees to sell to Buyer, under threat of Buyer's exercise of its power of eminent domain, and Buyer agrees to purchase from Seller, upon the terms and for the consideration set forth in this Agreement, the Property. 2. PURCHASE PRICE. The total purchase price for the Property, which includes the value of the land and improvements is Six Million Three Hundred Fifty Thousand Dollars ($6,350,000) ( "Purchase Price "). 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Aljedad ay; yo!4m ui alels ay; ul sseu!snq op o; pezljo4lne s! 'pewjol � lnp si l! ley; slueiiem pue s;uosaadaa AUed 4oe3 - 11aOH' inv :N011b'OIjnvn0 OZ -Z6- [30Vd 1X3N NO S3vn.LVNJISI Wl K'U'L Z0600-Z lV •anogeuleiaq ypol las lead pue Aep ayl luawaaj6V sly; pelnoaxe eneq olejaq sallied ay; '303H3HM SS3N11M NI •luewaaj6V sigl japun pauliolJad eq o; sallnp pue s9!1!I!glsuodsej 'suolle6ligo s,f%110 ayl Ja ;slulwpe o; pue luewaaj6V sly; luaweldwl pue lno Aneo of aleudadde pue Ajessooeu sluawnoop lie u6ls o; 'ft110 ay; to liegeq uo 'pazuoylne Ageioq sl yoea8 podMeN to Al10 ayl to ja6eueW A110 e41 'NOIIVZRIOH1f1V .1110 U •goeajq luanbesgns jo jaylo Aue to jenleM a peweep eq ileys japunejaq goeajq Aue ;o Aped Aus Aq JanleM ON -Agajagl punoq aq of Aped ay; ;o;legeq uo jo Aq palnoexe Alnp pue 6ulluM ul Wol les aq ileys ;uaweaJ6V sly; to uolslnad Aue of loadsaj yl1M eoueosalnboe jo luesuoo uolleoglpow 'Janlem AuV •luaweei6V sly; ul peuleluoo siallew ay; of loadsaj y11M salped ayl uaaMlaq 'uallpm jo lejo jeglagm 's6ulpuelsiapun pue sluawaai6e joud lie sepesiedns 11 ';uew99a6V slyl to jagew loefgns eyl of loadsaj yl1M sallied ayl uaaMlaq luawaai6V eigue ayl sl Iuaweaj6V s141 'NOUV013140W (INV 2:MAIVM 1N3W33bOV 3MI1N3 M •sesuedxe elgeuoseai jaylo lie pue 'sse; sseullM padxe 'slsoo Ile apnioul pegs seal (s) AeujogV 'luaw6pnf SELLER Lido Pa ' ie �LC,Ia Calyfornia limited liability comp v / �I / Bruce- yeas manager Date: 2014 BUYER City of Newport Beach By: Rush N. Hill, Il, Mayor Date: Leilani I. Brown, City Clerk Approved as to form: City Attorney Al2 -00902 7.29.14 LM -13- 2014 -b 6- V41 rL•6Z•L Z0600-Z W £0-Z06-£Zb pue 90-Z8E -EZb :(s)JagwnN laoJed s,JOssassy •Il;uno0 pies ;o JapJooa -1 Aluno0 eqj jo 9oW0 eqj ul 'sdeW laoJed ;o q 96ed 'Lg Moog ul palg dew a uo umogs se 6 laoJed :9 laoJed •Aluno0 pies ;o JapJooa*l )4uno0 eqj jo ao!40 eqj ul 'sdeW laoJed ;o ZZ pue lZ s86ed 'EZ£ Moog w palg dew a uo umogs se 'elwo;lle0 ;o aje38 '96ueJ0 ;o /quno0 'yoeag }JodmaN to 40 a41 ul ' H7Z-000Z 'ON deW laoJed 10 Z laoJed :y laoJed :smollo; se paquosep sl pue 'elwople0 ;o aje ;g '96ueJo ;o Aluno0 ay; ul pa;enlls sl }iodaJ sly; ul of paJJJa;oi puel a41 „H„ 1181HXB -41,- Wl 46 HI Z0600-ZLV ollgnd fJeloN 'leas leloi4o pue pueg Aw SS3N11M •loaJJOO pue onJl sl gdeJ6eJed 6u!o6ejoj ay} legl e!wo }IleO ;o alelS ay; jo smel aql Japun .k2jnr2Ocl d0 kIIVN3d Japun Appoo I •luewnJlsul aql polnoaxe 'paloe (s)uosJad eql go!gm jo;legaq uodn llgue eql Jo '(s)uosJad eq; luewnJlsul eql uo (s)amleu6ls J!agl /Jag /slq Aq legl pue '(sal)Al!oedeo pezuoglne Jlagl /aaq /sly ui awes eql palnoexe Aagl /eqs /eq legl aw of pabpalmou�oe pue 'luawnJlsul ulgl!m agl of paquosgns aJe /sl (s)eweu asogm (s)uosJad eql aq of aouap!Aa AJOloelslles to slseq aql uo aw o; panwd oqm 'Ja (aW eoniq paJeadde (lleuosiad 'ollgnd (JeloN e ' 'aw aJOlaq 171,0Z ' uO S313JNV SO-1 dO.11Nnoo dIN2i0dllVO AO 31H1S Jabeuew si! 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