HomeMy WebLinkAbout14 - 1971 Mesa Drive and 20401 Acacia StreetCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 14
March 9, 2004
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Fire Department
Tim Riley, Fire Chief, 644 -3101, triley @city.newport- beach.ca.us
SUBJECT: Adoption of a Resolution of Necessity to Acquire Certain Real
Property by Eminent Domain and Direct Staff to Acquire the Real
Properties located at 1971 Mesa Drive and 20401 Acacia Street.
ISSUE
Should the City, using its powers of eminent domain if necessary, acquire the real
• properties located at 1971 Mesa Drive and 20401 Acacia Street in Newport Beach for
the purposes of constructing a permanent fire station to serve the Santa Ana Heights
and Airport areas of Newport Beach?
RECOMMENDATION
Approve the attached Notice of Exemption from the requirements of CEQA for the
proposed Santa Ana Heights Fire Station and Training Facility;
2. Adopt Resolution #2004-_, establishing the need for the City of Newport Beach to
acquire the real properties located at 1971 Mesa Drive and 20401 Acacia Street in
Newport Beach for the purposes of developing a fire station and training facility to
serve the surrounding community;
Direct staff to acquire the real properties located at 1971 Mesa Drive and 20401
Acacia Street in Newport Beach, using its powers of eminent domain if necessary,
for the purposes of developing a fire station and training facility to serve Newport
Beach and the surrounding community; and
4. Approve Budget Amendment #BA_, increasing expenditure estimates in 7456 -
C2320669 to $3,092,000 and increasing revenue estimates in 455 -4845 by
$2,500,000. The balance, $592,000, will come from General Fund unappropriated
fund balance.
March 9, 2004
Page 2 of 13
DISCUSSION .
On February 13, 2001, in anticipation of the City's annexation of eastern Santa Ana
Heights (which became effective on July 1, 2003), the City Council ratified the City
Manager's decision to establish a temporary fire station at 2301 -2331 Zenith Avenue to
serve the airport area of Newport Beach and Santa Ana Heights. This site is leased
from the County of Orange.
The Council further directed staff to address the long -term fire and emergency medical
service needs in Santa Ana Heights and the airport area of Newport Beach. Since
March 2001, Fire Chief Tim Riley and Assistant City Manager Dave Kiff have been
working with the County of Orange and the citizens of Santa Ana Heights to find a
suitable location for the construction of a permanent fire station.
As a part of this search, the City, County, and Santa Ana Heights Project Advisory
Committee (SAH PAC) addressed the funding for the site's purchase and the station's
construction via a formal agreement between the City and the Orange County
Development Agency (OCDA). The OCDA administers the redevelopment project area
of Santa Ana Heights. Redevelopment allows tax increment revenue to fund certain
capital improvements in a project area — like a fire station. The Council approved an
agreement with OCDA on July 8, 2003 — this Agreement directs OCDA to transfer $2.5
million to the Citv for the purchase of a fire station site and uo to $1.6 million for the
station's construction. 0
After exploration of many different options, staff has determined that the acquisition of
the real properties located at 1971 Mesa Drive and 20401 Acacia Street provide the
best possible solution for the development of a fire station and a training tower.
Need for a Fire Station, Now and the Future
The Fire Department provides fire protection and emergency medical services to the
different parts of our community with a first due response time standard of 7 minutes or
less, 90% of the time. Over the years, we have distributed fire stations throughout
different parts of the city with this response goal in mind; the last one being the Fashion
Island Fire Station in 1971. We also rely on automatic aid from our neighbors when
practical. This was the case in north Newport Beach and Santa Ana Heights prior to
establishing our temporary fire station. Without our temporary facility, the majority of the
airport area and Santa Ana Heights falls outside of our response time envelope and
would be considered underserved in comparison to the remainder of the City.
Need for a Training Facilities, Including a Tower
On October 1, 2003, the Fire Department ended its 12 years of participation as a
member of the Central Net Operations Authority; a Joint Powers Agency formed for the
purpose of administering dispatch and training activities for member agencies. Due to
reasons of operational and fiscal efficiency, the City Council supported the
Department's desire to develop a small training site within the corporate limits of
Newport Beach (City Council action on November 26, 2002). This would allow us to
March 9, 2004
Page 3 of 13
A& increase the number of manipulative training hours available to our firefighters while
reducing the amount of time they were out of service due to the long travel times
between Newport Beach and the Huntington Beach - located training tower. It is
significant to note that the number of training hours has dramatically increased since
2001 due largely to the recent annexations of Newport Coast and Santa Ana Heights
and the concurrent increase in newly hired and promoted employees.
The Search for an Appropriate Site
The development of a fire station brings with it certain site acquisition issues — a good
site needs:
• An appropriately -sized lot (between 1 and 1.6 acres);
• Minimum street frontage for access and egress of emergency vehicles;
• A location that is compatible with surrounding uses, and, most particularly;
• A location that allows the Station to cover the largest area of the City possible within
our 7 minute response time goal.
This last issue limited our search for properties to an area that is bordered by Irvine
Avenue on the west, Birch Street on the east, Mesa Drive on the south and Bristol
Street on the north (Illustration 1). The area is predominantly zoned as Business Park
( "BP ") within the Santa Ana Heights Specific Plan and would be a suitable environment
to accommodate a fire station as a neighbor.
ILLUSTRATION 1
,a N�
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IN
N IN
1P00+1
IN
March 9, 2004
Page 4 of 13
The same can be said for the site acquisition needs for a training facility. We need an
area large enough to accommodate a minimum one -acre drill ground, a 3 -story training
tower, a large classroom, and enough parking to accommodate fire apparatus during
classroom sessions. Due to the nature of our training activities, it is also important that
we locate the training tower in an area of the city that would least impact our neighbors.
We note that the training facility, while adjacent to the flight path of many planes
departing John Wayne Airport, will not be used for burning activities that will result in a
smoke plume.
The Santa Ana Heights area is very active with development of vacant parcels. At the
outset of our quest (March 2001) to obtain a parcel suitable to accommodate the
development a fire station, there were five parcels that would meet our needs and were
still not developed into projects that fit in with the current Business Park zoning. Since
the annexation of Santa Ana Heights was not yet complete, we were unable to move
forward with property acquisition. From the time we began our search until the
annexation became a reality, two of our preferred parcels went into development. Of the
three remaining, the properties addressed by this staff report most nearly meet both our
fire station and training needs.
The properties are situated on the northwest corner of Mesa Drive and Acacia Street,
adjacent to a commercial occupancy to the north and east, a golf course driving range
to the west, open space to the south, and under the departure corridor for John Wayne
Airport (Illustration 2.) They provide an appropriate location from which to serve Santa
Ana Heights and other areas in and around Newport Beach. They are located in a
business park zone area least prone to disturbing permanent residents.
0
�.J
March 9, 2004
Page 5 of 13
ILLUSTRATION 2
We believe that property in Santa Ana Heights is being developed at such a fierce pace
that if we don't act soon, there will be no vacant parcels available to meet our
community fire station needs.
The Resolution of Necessity
Since July 2003, we have been in negotiations with the subject property owners and
have failed to reach a purchase agreement. As mentioned above, we believe it is
prudent to acquire these properties immediately. We are recommending immediate
acquisition of these two properties, including using the City's power to condemn private
property for public use (compensated at Fair Market Value) if we deem it a necessity.
Staff will continue to pursue a negotiated acquisition even if the resolution is adopted.
March 9, 2004
Page 6 of 13
The California Code of Civil Procedures Section 1245.230 requires that, before the City
can exercise its powers of eminent domain, the City adopt a Resolution of Necessity
(attached) that finds and determines that:
Public interest and necessity require the project. Prior to the annexation of Santa
Ana Heights into the corporate limits of Newport Beach, the City Council
recognized the need to provide fire and emergency medical services to this area
and authorized the establishment of a temporary fire station in January 2001.
Following that action, the City entered into discussions with OCDA and SAHPAC
regarding the development of a permanent facility. SAHPAC, in its advisory role
to the Board of Supervisors, represent property owners in the Santa Ana Heights
area. SAHPAC agreed that a permanent fire station should be OCDA's highest
funding priority. SAHPAC acted to change their funding recommendations to
reflect that need. As noted above, OCDA, acting in support of the PAC, entered
into an agreement with the City to fund the acquisition of property and
development of a fire station. All public actions were properly noticed and
conducted in accordance with state law.
The project is planned and located in a manner most compatible with the
greatest public good and least private injury. As mentioned earlier, the location of
a fire station must first serve overall response needs of the greater community
good balanced against the impacts to the immediate surrounding properties. The
subject properties meet many civic needs:
1. It is located in the general area that best covers underserved areas;
2. The property provides sufficient area to accommodate the development and
operation of a full - service, modern fire station and a limited -use training tower;
3. The operation of a fire station and training tower blends in well with the
surrounding property uses and will not impair any aspects of operations at
John Wayne Airport; and
4. The operation of a fire station and training tower on this property would create
the least impact on neighborhood residential uses when compared to other
area properties.
The property sought to be required is necessary for the project. An examination
of properties within the Santa Ana Heights area will demonstrate that there are
few pieces of property available for the development and operation of a fire
station. It is our belief that failure to acquire the subject properties will diminish
the possibility of developing a fire station in a timely manner and at a location
with the greatest public benefit and the least private injury.
The offer required by Government Code Section 7267.2 was made. On October
2, 2003, the City made formal written offers to Ms. Mary Davis and Ms. Laurie
Murray, respectfully, for the fully- appraised value of the subject properties. These
letters are attached. The City, through it's agent, has continued to negotiate with
the property owners without reconciliation. 0
March 9, 2004
Page 7 of 13
• The proposed project is in compliance with local planning requirements and that
CEQA has been satisfied. The Newport Beach Planning Department has
reviewed the project and has determined that it is consistent with the local
planning and zoning requirements. Further, the Planning Department has
determined the project is exempt from the requirements of CEQA based upon a
Class 32, Section 15332 Categorical Exemption for In -fill projects.
The adoption of the Resolution of Necessity must receive the approval of 2 /3rds
of the City Council (at least five votes).
The adoption of the attached Resolution of Necessity will satisfy these requirements.
This resolution was prepared by Douglas J. Evertz of the law firm of Stradling Yocca
Carlson & Rauth, special counsel to the City regarding this eminent domain action.
Required Notice
Pursuant to California Code of Civil Procedures Section 1245.230, on February 17,
2004, a certified letter was sent to Mary Davis, property owner of 1971 Mesa Drive and
Laurie Murray, property owner of 20401 Acacia Street, giving notice of the City's intent
to consider a resolution of necessity to acquire their properties by eminent domain. We
received a certified return receipt indicating that these letters were received by the
addressees on February 18, 2004. Both Mary Davis and Laurie Murray have filed a
. written request to appear and be heard on this matter (attachments).
Funding Availability
Presently, the combined, appraised value of these two parcels is $3,092,000. In
anticipation of this development, the City has entered into an agreement with OCDA to
fund up to $2,500,000 of property acquisition costs. The attached budget amendment
increases revenue estimates by $2,500,000 and transfers $592,000 from the General
Fund unappropriated reserve into 7456- C2320669 (attached).
Alternatives
1) That the City Council direct staff to pursue other property acquisition
opportunities.
2) That the City Council direct staff to continue to negotiate with the subject property
owners and not proceed with eminent domain.
March 9, 2004
Page 8 of 13
Attachments
Resolution of Necessity
Notice of Exemption
Request by Mary Davis to appear and be heard on this matter.
Request by Laurie Murray to appear and be heard on this matter.
Budget Amendment BA #_
Prepared and Submitted by:
Timothy Rilev/
Fire Chief ;✓
1J
•
March 9, 2004
Page 9 of 13
0 RESOLUTION NO. 2004-
A RESOLUTION OF THE CITY OF NEWPORT BEACH AUTHORIZING AND DIRECTING
THE CONDEMNATION OF CERTAIN REAL PROPERTY IN THE COUNTY OF ORANGE,
STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR
WHEREAS, the City of Newport Beach C' City") is a municipal corporation organized
and operating pursuant to the laws of the State of California, and is authorized to take properties
by condemnation and to hold, use and enjoy such properties as necessary to fully exercise its
powers; and
WHEREAS, the City has been investigating constructing additional facilities to address
the long -term fire and emergency medical service needs in Santa Ana Heights and the airport
area of Newport Beach. Since March 2001, the City has been working with the County of
Orange and the citizens of Santa Ana Heights to find a suitable location for the construction of a
new fire station. After exploration of many different options, City staff has determined that the
acquisition of real properties located at 1971 Mesa Drive and 20401 Acacia Street provide the
best possible solution for the development of a fire station and training center; and
WHEREAS, the City is specifically authorized by virtue of Government Code section
40404 and other provisions of the statutes of the State of California to take any property or
interests in property necessary to carry out the business of the City by condemnation, such power
to be exercised pursuant to the provisions of section 1230.020 et seq. of the Code of Civil
Procedure; and
SWHEREAS, the legal notice of intention to adopt a resolution of necessity to acquire by
eminent domain the hereinafter described property in fee simple was duly given by the City
pursuant to and in compliance with the requirements of Code of Civil Procedure section
1245.235 and which notice advised of a hearing by the City on March 9, 2004; and
WHEREAS, a public hearing was held by the City on March 9, 2004, at which the
matters set forth in Code of Civil Procedure section 1240.030 were discussed, including the
following matters:
a) Whether the public interest and necessity require the project;
b) Whether the project is planned and located in the manner that would be most
compatible with the greatest public good and the least private injury;
C) Whether the property sought to be acquired (which is described herein) is
necessary for the project; and
d) Whether any offer required by section 7267.2 of the Government Code has been
made to the owner or owners of record.
WHEREAS, the City has provided all persons a reasonable opportunity to appear and be
heard on those matters referred to in section 1240.030 of the Code of Civil Procedure; and
WHEREAS, at such hearing, information on the project and the matters set forth in this
resolution was presented to the City by the City Fire Department staff.
NOW, THEREFORE, BE IT RESOLVED, the City of Newport Beach hereby declares,
finds, and determines as follows:
March 9, 2004
Page 10 of 13
1. The public interest and necessity require the acquisition of the property described
herein. The City Council finds that the acquisition of the herein described property is necessary
to advance the business of the City, which property is generally located at 1971 Mesa Drive,
Newport Beach, California (APN 439 - 391 -27) and 20401 Acacia Street, Newport Beach,
California (APN 439 - 391 -02).
2. The public interest and necessity require the acquisition and taking of fee simple
interest of the described real property for construction of a new fire station, which use is a public
use authorized by law. Government Code section 40404, among other provisions of the statutes
of the State of California, permit and empower this acquisition by the City through its exercise of
the power of eminent domain for the stated public use.
3. The real property sought to be condemned is legally described in Exhibit "A" and
its location is depicted on Exhibit `B," both of which are attached to this Resolution and hereby
fully incorporated by this reference.
4. The offer required by Government Code section 7267.2 has been made to the
owner or owners of record.
5. The taking and acquiring by the City of the property described herein is deemed
necessary for the construction and completion of, among other things, fire station and related
facilities, and the project is planned and located in a manner most compatible with the greatest
public good and the least private injury.
6. As to any portion of the property that is currently appropriated for a public use,
the use to which the property is sought to be taken is a more necessary public use and the City is
empowered to take for a more necessary public use pursuant to Code of Civil Procedure section
1240.610.
7. In accordance with the California Environmental Quality Act ( "CEQA "; Pub.
Res. Code, § 21000 et seq.), the City determined on March 9, 2004 that the project is exempt
from the requirements of CEQA based upon a Class 32, Section 15332 Categorical Exemption.
8. The law firm of Stradling Yocca Carlson & Rauth is authorized, empowered and
directed to prepare, commence and prosecute an eminent domain action or actions in the
Superior Court of the State of California in and for the County of Orange in the name and on
behalf of the City of Newport Beach against all owners and persons and entities claiming or
having interests in the above described property, for the purpose of performing and carrying out
all proceedings and steps incident to the condemnation and the acquisition of the property,
including obtaining warrants for deposit of funds, orders for prejudgment possession, and other
steps necessary to acquire fee simple title to the subject property by and for the City of Newport
Beach.
PASSED AND ADOPTED this day of 2004.
AYES:
NOES:
ABSENT:
ABSTAIN:
9
0 By:
TOD RIDGEWAY, MAYOR
CITY OF NEWPORT BEACH
ATTEST:
LAVONNE HARKLESS, CITY CLERK
CITY OF NEWPORT BEACH
0
March 9, 2004
Page 11 of 13
March 9, 2004
Page 12 of 13
Exhibit "A"
Legal Description of Subject Property(s)
439- 391 -27
1971 Mesa Drive, Newport Beach, California
Lots 57 through 60, Tract No. 706, per map recorded in
Book 21, Page 25 of Maps, in the office of the County
Recorder, County of Orange, California.
439- 391 -02
20401 Acacia Street, Newport Beach, California
Portion of Lot 56, Tract No. 706, per map recorded in
Book 21, Page 25 of Maps, in the office of the County
Recorder, County of Orange, California.
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w1b N T ` CITY OF NEWPORT BEACH
\, +n 3300 Newport Boulevard - P.O. Box 1768
J Newport Beach, CA 92658 -8915
(949) 644 -3200
NOTICE OF EXEMPTION
To:
From: City of Newport Beach
❑ Office of Planning and Research
1400 Tenth Street, Room 121
Planning Department
3300 Newport Boulevard - P.O. Box 1768
Sacramento, CA 95814
Newport Beach, CA 92658 -8915
(Orange County)
County Clerk, County of Orange
❑X Public Services Division
P.O. Box 238
Date received for filing at OPR:
Santa Ana, CA 92702
Name of Project: Santa Ana Heights Fire Station & Training Facility
Project Location: Santa Ana Heights area of Newport Beach
Specific: 1971 Mesa Drive & 20401 Acacia Street
Project Location -City: Newport Beach Project Location - County: Orange
Project Description: See attached
Exempt Status: (check one)
Ministerial (Sec. 21080(b)(1);15268);
Declared Emergency (Sec. 21080(b)(3); 15269(a));
Emergency Project (Sec. 21080(b)(4); 15269(b)(c);
Categorical Exemption. State type and section number. Class 32, Section 15332
Statutory Exemptions. State code number:
General Rule (Sec. 15061 (b)(3))
Reasons why project is exempt:
See attached
Name of Public Agency Approving Project: City of Newport Beach
Date of Approval: February 20, 2004
Name of Person or Agency Carrying Out Project: City of Newport Beach
Contact Person: Tim Riley Title: Fire Chief
Signature: Tel.No. 949 - 644 -3101 Date: February 20, 2004
•
0
0
Project Description:
The fire station and training facility will include the development of an 8,000 square foot fire
station designed to accommodate two units and eight personnel. The facility will be
occupied twenty -four hours per day, 365 days per year. The proposed station will occupy
approximately 1 acre of the 2.10 acre site. The municipal fire station will include an
apparatus room to accommodate two fire vehicles, office space, a day room, kitchen
facilities, sleeping facilities, bathing facilities, physical fitness facilities, and space to
accommodate utilities and fire equipment storage. The site will also be used to develop
and accommodate a training tower /drill ground area. This facility will occupy approximately
1 acre of the 2.10 acre site. The facility will include a 50- person classroom /meeting room, a
three -story training tower and open area to maneuver fire apparatus and personnel during
training exercises. Training exercises and classroom instruction will generally occur during
regular business hours 7 days per week. The project includes the construction of new or
replacement improvements within the abutting public right of way along Mesa Drive and
Acacia Street. These improvements may include but are not limited to roadway, driveway
approaches, curb, gutter, sidewalks, street trees and street lights. The project also includes
other appurtenant items such as parking areas, landscaping and exterior site lighting and
utility connections to serve the redeveloped site.
Reasons why the project is exempt:
1. The project is in conformance with the General Plan and Zoning regulations. The site is
• designated Administrative Professional and Financial by the Land Use Element of the
Newport Beach General Plan. This designation does not prohibit municipal facilities
such as fire stations. The site is subject to the provisions of the Santa Ana Height
Specific Area Plan (zoning) and must be designed consistent with all applicable
provisions. Conformance will be ensured through the development review process in
conjunction with the consideration of a Use Permit by the Planning Department.
2. The site is on less than 5 acres as it is comprised of two lots totaling approximately 2.10
acres. The site is within the corporate city limits and is surrounded by urban uses.
Specifically, the Newport Beach golf course abuts the project site on the west. The golf
course is also located to the south across Mesa Drive. Nonconforming residential uses
and office used are located to the north of the site and a business park is located to the
east.
3. The site is presently developed with two residential units and a series of accessory
structures including a pool, horse corral, barns and storage buildings. The site has no
value as a habitat due to its past development.
4. Approval will not result in significant effects to traffic, noise, air quality or water quality.
The City Traffic Engineer has determined that the project will not generate more than
300 daily trips and, therefore a traffic study is not required. Impacts to air quality are
less than significant due to the low vehicle trip generation and since the project will not
require significant earth movement due to the existing flat topography. Potential impacts
to noise will be insignificant with the site being subject to the Noise Ordinance. Water
quality impacts are not anticipated with the implementation of a water quality
management plan and storm water pollution prevention program as required by the
Water Quality Ordinance.
5. The site is presently served with all required utilities and public services. The capacities
of these existing services that are located within the abutting public right of way are
adequate to serve the proposed facility.
Alva R. & Maiy Spann Davis
1971 Mesa Drive, Newport Beach, California 92660
February 24, 2004
Newport Beach City Clerk
3300 Newport Boulevard
Newport Beach, California 92660 -1707
City Clerk,
We [lave received a letter from Chief Timothy Riley of the Newport- - -- - - - --
Beach Fire Department informing us that a hearing will be held-on Mafch -9,
2004, at 7:00 p.m. to consider adoption of a Resolution of Necessity to
determine if certain conditions are met and to vote on a Resolution of Necessity
to acquire by eminent domain our property located at 1971 Mesa Drive,
Newport Beach, California (APN No. 439 - 391 -27).
He informs us that we must file a written request to appear and be heard
with the City Clerk. Please consider this our written request to appear
personally and/or with a representative.
Very truly yours, n
Mary Spann Davis
(949) 756 -9355
0
Laurie Davis
2001 Seadrift Drive, Corona del Mar, California 92625
February 24, 2004
Newport Beach City Clerk
3300 Newport Boulevard
Newport Beach, California 92660 -1707
City Clerk,
_
-I have -received a_ letter_from-Chief-Timothy Rilev of the Newport Reacf� --
Fire Department informing me that a hearing will be held on March 9,2094,--at
7:00 p.m. to consider adoption of a Resolution of Necessity to determine if
certain conditions are met and to vote on a Resolution of Necessity to acquire by
eminent domain my property located at 20401 Acacia Street, Newport Beach,
California (APN No. 439 - 391 -02).
He informs me that I must file a written request to appear and be heard
with the City Clerk. Please consider this my written request to appear personally
and/or with a representative.
Very truly yours,
Laurie Davis
(714) 438 -1438
City of Newport Beach NO. BA-
BUDGET AMENDMENT
2003 -04
EFFECT
ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates
Increase Expenditure Appropriations AND
Transfer Budget Appropriations
from existing budget appropriations
from additional estimated revenues
from unappropriated fund balance
Pq
Division
SOURCE:
PX
Account
EXPLANATION:
This budget amendment is requested to provide for the following:
04BA -039
AMOUNT: $3,092,000.00 .
Increase in Budgetary Fund Balance
X Decrease in Budgetary Fund Balance
No effect on Budgetary Fund Balance
To increase revenue estimates and expenditure appropriations related to the acquisition of property for Fire Station #7.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund Account Description
010 3605 General Fund Fund Balance
REVENUE ESTIMATES (3601)
Fund /Division Account Description
455 4845 OCDA Funds
EXPENDITURE APPROPRIATIONS (3603)
Signed:
Signed:
Signed
Approval: Administrative Services Director
Administrative Approval: City Manager
City Council Approval: City Clerk
Amount
Debit Credit
$592,000.00
$2,500,000.00
$3,092,000.00
,3-,3-c)
Date
Da
Date
Description
Division
Number
7461 Fire Station 7 Building Fund
Account
Number
C2320669 Fire Station 7
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Signed:
Signed:
Signed
Approval: Administrative Services Director
Administrative Approval: City Manager
City Council Approval: City Clerk
Amount
Debit Credit
$592,000.00
$2,500,000.00
$3,092,000.00
,3-,3-c)
Date
Da
Date
A0
RESOLUTION NO. 2004- 20
A RESOLUTION OF THE CITY OF NEWPORT BEACH AUTHORIZING AND
DIRECTING THE CONDEMNATION OF CERTAIN REAL PROPERTY IN THE
COUNTY OF ORANGE, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC
NECESSITY THEREFOR
WHEREAS, the City of Newport Beach ( "City') is a municipal corporation
organized and operating pursuant to the laws of the State of California, and is
authorized to take properties by condemnation and to hold, use and enjoy such
properties as necessary to fully exercise its powers; and
WHEREAS, the City has been investigating constructing additional facilities to
address the long -term fire and emergency medical service needs in Santa Ana Heights
and the airport area of Newport Beach. Since March 2001, the City has been working
with the County of Orange and the citizens of Santa Ana Heights to find a suitable
location for the construction of a new fire station. After exploration of many different
options, City staff has determined that the acquisition of real properties located at 1971
Mesa Drive and 20401 Acacia Street provide the best possible solution for the
development of a fire station and training center; and
WHEREAS, the City is specifically authorized by virtue of Government Code
section 40404 and other provisions of the statutes of the State of California to take any
property or interests in property necessary to carry out the business of the City by
condemnation, such power to be exercised pursuant to the provisions of section
1230.020 et seq. of the Code of Civil Procedure; and
WHEREAS, the legal notice of intention to adopt a resolution of necessity to
acquire by eminent domain the hereinafter described property in fee simple was duly
given by the City pursuant to and in compliance with the requirements of Code of Civil
Procedure section 1245.235 and which notice advised of a hearing by the City on March
9, 2004; and
WHEREAS, a public hearing was held by the City on March 9, 2004, at which the
matters set forth in Code of Civil Procedure section 1240.030 were discussed, including
the following matters:
a) Whether the public interest and necessity require the project;
b) Whether the project is planned and located in the manner that would be
most compatible with the greatest public good and the least private injury;
c) Whether the property sought to be acquired (which is described herein) is
necessary for the project; and
d) Whether any offer required by section 7267.2 of the Government Code
has been made to the owner or owners of record.
WHEREAS, the City has provided all persons a reasonable opportunity to appear
and be heard on those matters referred to in section 1240.030 of the Code of Civil
Procedure; and
WHEREAS, at such hearing, information on the project and the matters set forth
in this resolution was presented to the City by the City Fire Department staff.
NOW, THEREFORE, BE IT RESOLVED, the City of Newport Beach hereby
declares, finds, and determines as follows:
1. The public interest and necessity require the acquisition of the property
described herein. The City Council finds that the acquisition of the herein described
property is necessary to advance the business of the City, which property is generally
located at 1971 Mesa Drive, Newport Beach, California (APN 439 - 391 -27) and 20401
Acacia Street, Newport Beach, California (APN 439 - 391 -02).
2. The public interest and necessity require the acquisition and taking of fee
simple interest of the described real property for construction of a new fire station, which
use is a public use authorized by law. Government Code section 40404, among other
provisions of the statutes of the State of California, permit and empower this acquisition
by the City through its exercise of the power of eminent domain for the stated public
use.
3. The real property sought to be condemned is legally described in Exhibit
"A" and its location is depicted on Exhibit `B," both of which are attached to this
Resolution and hereby fully incorporated by this reference.
4. The offer required by Government Code section 7267.2 has been made to
the owner or owners of record.
5. The taking and acquiring by the City of the property described herein is
deemed necessary for the construction and completion of, among other things, fire
station and related facilities, and the project is planned and located in a manner most
compatible with the greatest public good and the least private injury.
6. As to any portion of the property that is currently appropriated for a public
use, the use to which the property is sought to be taken is a more necessary public use
and the City is empowered to take for a more necessary public use pursuant to Code of
Civil Procedure section 1240.610.
7. In accordance with the California Environmental Quality Act ( "CEQA ";
Pub. Res. Code, § 21000 et seq.), the City determined on March 9, 2004 that the
project is exempt from the requirements of CEQA based upon a Class 32, Section
15332 Categorical Exemption.
8. The law firm of Stradling Yocca Carlson & Rauth is authorized,
empowered and directed to prepare, commence and prosecute an eminent domain
action or actions in the Superior Court of the State of California in and for the County of
Orange in the name and on behalf of the City of Newport Beach against all owners and
persons and entities claiming or having interests in the above described property, for
the purpose of performing and carrying out all proceedings and steps incident to the
condemnation and the acquisition of the property, including obtaining warrants for
deposit of funds, orders for prejudgment possession, and other steps necessary to
acquire fee simple title to the subject property by and for the City of Newport Beach.
PASSED AND ADOPTED this 9°h day of March, 2004.
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
CITY CLERK
MAYOR
Exhibit "A"
Legal Description of Subject Property(s)
439 - 391 -27
1971 Mesa Drive, Newport Beach, California
Lots 57 through 60, Tract No. 706, per map
recorded in Book 21, Page 25 of Maps, in the office
of the County Recorder, County of Orange,
California.
439 - 391 -02
20401 Acacia Street, Newport Beach, California
Portion of Lot 56, Tract No. 706, per map recorded
in Book 21, Page 25 of Maps, in the office of the
County Recorder, County of Orange, California.
Exhibit °B"
Location of Subject Property(s)
STATE OF CALIFORNIA
COUNTY OF ORANGE
j as.
CITY OF ?NEWPORT BEACH
I, LaVonne Al. Harkless, City Clerk of the City of Newport Beach, California, do
hereby certify that the whole number of members of the City Council is seven: that the foregoing
resolution, being Resolution No. 2004 -20 was duly and regularly introduced before and adopted by
the Citv Council of said City at a regular meeting of said Council. duly and regularly held on the 9th
day of March. 2004, and that the same was so passed and adopted by the following vote, to wit:
Ayes: Rosansky, Adams, Bromberg. NA, ebb; Mayor Ridgeway
Noes: Heffernan, Nichols
Absent: None
Abstain: ?None
IN N8qTNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said Citv this 10th day of March, 2004.
(Seal)
Citv Clerk
Newport Beach, California
F.sOM
it•1 ?,? ? VO -'. 1n:c iS 1 :a %;'NC. d3;'39S :d 2
GEOFFREY S. PAYNF
A PROFESSIONAL CORPORKITON
5305 E. Second Street, Suite 204
Long Beach, California 90803
Phone No. (562) 433-5975
Facsimile (562) 433 -8926
gpgvneralgeoffreypavne¢roup.cown
Of Counsel To
W ieaorek & Rice, LLP
March 9, 2004
Homer L. Bludau
City Manager
City of Newport Beach
3300 Newport Boulevard
P.O. Box 1768
Newport Beach, California 92654 -8915
Re; Proposed Fire Station at Mesa Drive and Acacia Street, Newport Beach
I
Dear Mr. Bludau
This firm represents Steadfast Properties. Tonight, the City will bring before its council
the condemnation of those certain properties located at 1971 Mesa Drive and 20401 Acacia
Strect lboth in Newport Beach and contiguous to each other. We understand that the City has
sought these properties for some time for the purpose of constructing a fire department on part of
the site. Steadfast has also sought these properties for nearly two years. In fact, Steadfast is in
escrow to purchase these properties and intends to develop them into an office building for its
own use. Steadfast has developed over 250,000 square feet of Class A office buildings in the
immediate area during the past four years.
In good faith, Steadfast has discussed with the City and its Fire Department the
Department's inclusion in Steadfast's proposed development. Steadfast is willing to reduce its
proposed project to accommodate the Department.
Steadfast worked diligently and tenaciously for two years to negotiate the purchase of the
properties. It is in escrow for the purchase price of $45.50 per square foot, plus other costs
including the commissions. Prices have consistently risen through the past four years because of
the desirability of this area. Steadfast's last purchase of a property in this area was for $40 per
square foot. While Steadfast would have liked to purchase the properties for a lower price, it
believes it paid what a willing buyer and seller would pay.
FROM
(TUE)MAR 9 2004 16: 58 /ST.I 6: 5710.6312398U46 P 3
March 9, 2004
Page 2
We are concerned about the City's proposed actions. We believe that if the City pursues
a condemnation action, that it will likely have to litigate and will still pay at least close to the
escrow price for which Steadfast is in escrow. The City insists that the properties are worth only
$33.75 per square foot, and we understand that the City has an appraisal to that effect. However,
condemnation actions are risky; accordingly, we also believe that the City could pay $50,000 in
attorney's fees, and be subject to pay Steadfast's and the seller's attorney's fees, among other
costs, all of which adds to the price per square foot.
We would again encourage the City to discuss with Steadfast a project that would include
the Fire Department. I hope we can have the opportunity to meet either tonight before or after
the hearing or at the next most mutually convenient time.
W190
Thank you for your consideration. I look forward to hearing from you.
Very truly yours,