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HomeMy WebLinkAboutJ-2 - Acquisition of 5.5 Parcels (Doan Property) in Cannery Village at the Soutyhwest Corner of 30th Street and Villa Way for the Construction of a Public Parking FacilityCity Council Meeting January 11, 1988 Agenda Item No. J-2 CITY OF NEWPORT BEACH TO: City Council FROM: Planning Department BY THE CITY COUNCIL CITY OF NEWPORT BEACH JAN 111988 SUBJECT: Acquisition of 5.5 Parcels (Doan Property) in Cannery Village at the Southwest Corner of 30th Street and Villa Way for the construction of a Public Parking Facility. Suggested Action: If desired, 1. Adopt Resolution No. , a Resolution of the Newport Beach City Council declaring the necessity to acquire the property located at 430 30th Street by eminent domain; and 2. Authorize Staff to conclude the negotiations with the property owner consistent with the City's appraisal; and 3. Direct staff to prepare the necessary budget amendments allocating $500,000 from the Off -Street Parking Fund and $700,000 from the sale of Certificates of Participation. 4. Direct staff to prepare the financing agreement for the remainder of the acquisition and construction costs for submittal to the City Council. Background The City Council Off -Street Parking Committee and staff have been discussing the acquisition of the property at the southwest corner of 30th Street and Villa Way since February of 1986. In June of 1987, staff indicated to the property owner the City's desire to purchase the property for fair market value, which was to be determined by an appraisal. On July 29, 1987, staff met with the Off -Street Parking Committee and briefed them on the progress of negotiations for the Doan property. The Committee indicated their intention to recommend to the City Council that the site be condemned under the power of eminent domain. At its meeting of August 10, 1987, the City Council directed Staff to retain an appraiser to establish fair market value for the property. TO: City Council - 2. Analysis As indicated above, staff has been pursuing the acquisition of approximately 5.5 lots at the southwest corner of 30th Street and Villa Way. There is approximately 15,528 sq.ft. of property, which will provide approximately 47 parking spaces, with the appropriate lighting and landscaping. The major points that the Off -Street Parking Committee and staff have agreed upon in principal with the property owner are as follows: 1. Price. The purchase price will be based upon fair market value, as determined by an appraisal, of no less than $60.00 per square foot. 2. Use of In -lieu spaces. The property owner will have the option to purchase in -lieu parking spaces up to the maximum number of spaces in the proposed parking lot for non-exclusive nighttime use only to facilitate the conversion of the Pelican Market to a restaurant and the expansion of the Cafe Lido restaurant at some future date. In the event the cost of an in -lieu parking space is increased over the current rate of $150 each per year, the City would establish a limit on the total cost of each in lieu space of $500 or the rate set forth in Section 12.44.125, whichever is less for a period of five years. At the end of the first five years the required number of spaces may be purchased at 75% of the rate set forth in Section 12.44.125 or $500, whichever is less, for a second five year period. At the end of the second five years, or ten years after the first in -lieu parking space was purchased, the cost for each space would be as set forth in Section 12.44.125. 3. Condemnation. The City will adopt all of the necessary resolutions for acquiring the property under threat of condemnation. 4. "Core Use Permit." The City would consider approving a "core use permit" for the future expansion of the Cafe Lido and the conversion of the Pelican Market to a restaurant. However, inasmuch as the property owner could not define the restaurants operational characteristics such as hours of operation, size, or whether or not there would be dancing and/or live entertainment, there was no mechanism available to approve a "core use permit" without the necessary plans or a public hearing before the Planning Commission. 5. The City will agree to lease the property from Pelican Properties at the current rate of $7,000/month from the time escrow opens and the current tenant vacates the property until close of escrow. Pelican Properties will be responsible for any other costs associated with the termination of the existing lease. It is understood that the property owner will make every effort to keep the existing tenant on a month -to - month lease, which will terminate prior to the close of escrow. It is also understood that Pelican Properties will assure the City that the existing tenant will vacate the premises on or before the close of escrow. TO: City Council - 3. All of the above described points will be included in the purchase agreement except for Item No. 4, which could not be completed due to time constraints. Based upon the appraisal performed by Richard Fuller, the land and improve- ments have a combined value of $1,036,000, or approximately $66.72 per square foot. It is estimated that the demolition of the existing buildings and construction of a surface parking lot with landscaping and lights will cost approximately $160,000. The total project cost is approximately $1.2 million. By using approximately $500,000 from the Off -Street Parking Fund as a "down payment," a balance of $700,000 remaining. It should be noted that the proposed parking lot and all of the on -street parking spaces in the Cannery Village area will have parking meters in- stalled. It is currently anticipated that the meters will have a rate of $.25/hr. The revenues from these meters are estimated to be approximately $200,000 annually. These meter revenues are adequate to service the remaining debt of $700,000 over a five-year period, based upon the responses to the City's request for proposal distributed to several financial institu- tions. Parking Demand Since 1967, there have been several parking, traffic, and circulation studies done in the area. Without exception, each of these studies iden- tified the shortage of public parking in the area as a major problem that must be addressed. In preparing the Traffic Management Plan as a part of the implementation of the Cannery Village/McFadden Square Specific Area Plan, Boyle Engineering analyzed these previous studies to determine their current validity. It has been determined that the previously identified shortage of parking in the area still exists. In addition, should the proposed roadway restriping project between 19th Street and 32nd Street be implemented, there will be a further loss of on -street parking that must be replaced. The acquisition of sufficient land to construct a 47-space parking lot will satisfy a portion of the existing demand in the area. Staff is of the opinion that the use of this lot should be monitored for a period of at least three years to determine if sufficient demand exists to warrant construction of a multi -story parking facility. Acquisition Procedures Prior to acquiring private property through the use of the City's power of eminent domain, it is necessary to follow the procedures set forth in State Law. The following summarizes the major steps in acquiring property by the City for a public purpose. The City Council, at its meeting of August 10, 1987, directed staff to retain a qualified appraiser to conduct an appraisal of the property to determine its fair market value, which is the first step in the process. The appraisal was performed by Richard Fuller, an M.A.I. appraiser, who has established the value of the land and improvements at $1,036,000. TO: City Council - 4. Subsequent to the completion of the appraisal, letters are sent to the property owner with the City's offer. The property owner would then respond with either acceptance of the City's offer, a counter offer, or refusal of the City's offer. The City Council must also notify the property owner that it intends to adopt a Resolution of Necessity and Intent to Condemn. The property owner was notified by telephone on December 17, 1987, of the appraisers determination, and again in writing on December 31, 1987 (copies attached). Staff anticipates a response from the property owner prior the City Council meeting of January 11, 1988. It is imperative that the City Council recognize that if the process of condemnation is begun and terminated at some later date, the City will be responsible for all of the costs incurred by the property owner in conjunc- tion with the City's action. Therefore Staff recommends that the City Council receive the property owners acceptance of the terms described herein prior to adopting the subject resolution. Respectfully Submitted PLANNING DEPARTMENT JAMES D. HEWICKER, Director By. Chris Gustin Senior Planner Attachments: 1. Resolution No. a Resolution of Necessity Pending Acquisition of Property 2. Copies of Offer and Notice of Public Hearing on Resolution of Necessity. CG\CCSR\Acquirel.CSR Agenda Item No. J-2 RESOLUTION NO. 88- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING THE NECESSITY TO ACQUIRE THE PROPERTY LOCATED AT 430 30TH STREET BY EMINENT DOMAIN WHEREAS, the City Council of the City of Newport Beach has adopted a Specific Area Plan for Cannery Village which calls for the provision of a public parking area in and around 30th Street and Villa Way; WHEREAS, the City Council has determined that the property located at 430 30th Street is best suited for use as a public parking facility; and WHEREAS, the City Council, by this Resolution, intends to express the need, and its intention, to acquire the property by eminent domain. NOW, THEREFORE, the City Council hereby resolves as follows: Section 1: The City Council finds and declares that the property located at 430 30th Street and legally described as set forth in Exhibit A to this Resolution, Is the property proposed to be acquired by eminent domain subsequent to adoption of this Resolution; Section 2: The property to be acquired by eminent domain is to be used as a public parking lot as set forth in the Specific Area Plan for Cannery Village and to serve the needs of the patrons and customers of the businesses and offices within Cannery Village; Section 3: The City Council of the City of Newport Beach finds, declares and determines that: A. The public interest and necessity require the proposed project; B. The proposed project is planned and located in the manner that would be most compatible with the greatest public good and the least private injury; C. The property described in this resolution is D necessary for the proposed parking lot; and D. The City has made an offer to the owner to acquire the property for the full amount believed to be just compensation for the property, and has provided the owner of the property to be acquired with the written statement of, and summary of the basis for, the amount it has established as just compensation. Section 4: The City Council finds and determines that the proposed project is consistent with all applicable general and specific area plans. Section 5: That appropriate notice of the intention of the City of Newport Beach to adopt this resolution, as required by Section 12.45.235 has been given to the owner of the property. ADOPTED this llth day of January, 1988. ATTEST: City Clerk Mayor -2- Ci' LEGAL DESCRIPTION Lots 12, 13, 14, 15, 16, and the easterly 17.5 feet of Lot 17, Block 230, Lancasters Addition of Newport Beach, as shown on Book 5, Page 14, of Miscellaneous Maps in the County Recorder's Office. Address: 430 30th Street. Value Value of Land and Improvements: $1,036,000.00. -3- O��FWP°� CITY OF NEWPORT PEACH OFFICE OF THE CITY ATTORNEY U P.O. BOX 1768, NEWPORT BEACH, CA 92658-8915 I OR (714) 644-3131 December 31, 1987 Dorothy Doan Pelican Properties, Inc. 1920 East Warner Suite 3A Santa Ana, CA 92705 Re: Notice of Public Hearing to Adopt Resolution of Necessity Pending Acquisition of Property on 30th Street Dear Dorothy: Please take notice that on January II, 1988 at 7 : 3 0 P.M., or as soon thereafter as the matter may be heard, the City Council will consider the adoption of a Resolution of Necessity preliminary to acquisition of your property at 430 30th Street (see legal description attached as Exhibit A to Resolution). A copy of the proposed Resolution of Necessity is enclosed for your information. The purpose of this notice is tell you the following: 1. Staff is recommending the City Council adopt the Resolution, and we believe the Council intends to follow staff's recommendation; 2. You have a right to appear and be heard on all matters relative to the contents of the Resolution and the provisions of Section 12.45.230 of the Code of Civil Procedure of the State of California. You may appear in person, through a representative, or you may send your comments, in writing, so long as they are received by the City Clerk prior to the time of the hearing; 3. Your failure to file a written request to appear and be heard may result in a waiver of that right. 3300 Newport Boulevard, Newport Beach Please call me if you have any questions. Very truly yours Robert H. B6rnham City Attorney RHB/jc Enclosures 9 POR® CITY Of NEWPORT BEACH o - '' OFFICE OF THE CITY ATTORNEY V = P.O. BOX 1768, NEWPORT BEACH, CA 92658-8915 eM 1pof9k (714) 644-3131 December 31, 1987 Dorothy Doan Pelican Properties, Inc. 1920 East Warner Suite 3A Santa Ana, CA 92705 Re: Formal Offer to Acquire Property on 30th Street Dear Dorothy: This letter constitutes a formal offer to acquire property owned by Pelican Properties, Inc. and located at 430 3 0 t h Street (legal description attached as Exhibit A) in the Cannery Village area of Newport Beach. The City hereby offers to purchase the property and improvements for the sum of $1,038,123. This offer is contingent upon the City Council's adoption of a Resolution of Necessity and authorization to execute a Contract of Acquisition. For your information, land value was appraised at $916,152, and the improvements were appraised at $119,971. Land value was determined based upon standard MAI criteria. The value of the improvements was determined based upon the size, age and unique characteristics of the structure. If you desire additional information about the manner in which the property was valued or the criteria used, please contact this office. RHB/jc Very truly your, Robert H. Burnham City Attorney 3300 Newport Boulevard, Newport Beach �� RESOLUTION NO. 88-5 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING THE NECESSITY TO ACQUIRE THE PROPERTY LOCATED AT 430 30TH STREET BY EMINENT DOMAIN WHEREAS, the City Council of the City of Newport Beach has adopted a Specific Area Plan for Cannery Village which calls for the provision of a public parking area in and around 30th Street and Villa Way; WHEREAS, the City Council has determined that the property located at 430 30th Street is best suited for use as a public parking facility; and WHEREAS, the City Council, by this Resolution, intends to express the need, and its intention, to acquire the property by eminent domain. NOW, THEREFORE, the City Council hereby resolves as follows: Section 1: The City Council finds and -declares that the property located at 430 30th Street and legally described as set forth in Exhibit A to this Resolution, is the property proposed to be acquired by eminent domain subsequent to adoption of this Resolution; Section 2: The property to be acquired by eminent domain is to be used as a public parking lot as set forth in the Specific Area Plan for Cannery Village and to serve the needs -of the patrons and customers of the businesses and offices within Cannery Village; Section 3: The City Council of the City of Newport Beach finds, declares and determines that: A. The public interest and necessity require the proposed project; B. The proposed project is planned and located in the manner that would be most compatible with the greatest public good and the least private injury; C. The property described in this resolution is -1- necessary for the proposed parking lot; and D. The City has made an offer to the owner to acquire the property for the full amount believed to be just compensation for the property, and has provided the owner of the property to be acquired with the written statement of, and summary of the basis for, the amount it has established as just compensation. Section 4: The City Council finds and determines that the proposed project is consistent with all applicable general and specific area plans. Section 5: That appropriate notice of the intention of the City of Newport Beach to adopt this resolution, as required by Section 12.45.235 has been given to the owner of the property. -2- LEGAL DESCRIPTION Lots 12, 13, 14,E 15, 16, and the easterly 17.5 feet of Lot 17, Block 230, Lancasters Addition of Newport Beach, as shown on Book 5, Page 14, of Miscellaneous Maps in the County Recorder's Office. Address: 430 30th Street. Total Value of Land and Improvements: $1,036,000.00. -3-