HomeMy WebLinkAbout15 - Caltrans West Sunset View Park•
0
0
November 22, 1999
CITY COUNCIL AGENDA
ITEM NO. 15
TO: Mayor and Members of the City Council
FROM: Public Works Department
SUBJECT: OPTION TO PURCHASE CALTRANS WEST (SUNSET VIEW PARK)
RECOMMENDATION:
Authorize the City Manager to negotiate and execute a 1 -year option to purchase
Caltrans West (Sunset View Park) for 10% of the appraised value with, (if needed), a 1-
year extension at 5% of the appraised value.
DISCUSSION:
In the 1960's, the California Department of Transportation (Caltrans) acquired property
along West Coast Highway in Newport Beach as a part of the planned Coastal
Freeway. Through a City referendum in 1973, the route was opposed and finally
deleted in 1975. All of the right -of -way acquired by Caltrans has been sold except for 1
parcel between Coast Highway and the Newport Crest development. Superior Avenue
goes through the parcel and it is referred to as Caltrans West. The City has designated
the preferred use for Caltrans West to be recreation /open space but it still has an
allocation for 160 dwelling units. The dwelling unit entitlement may be transferred to
another area in Newport Beach. The Recreation and Open Space Element of the
General Plan has named this site Sunset View Park.
Caltrans West is made up of 2 parcels on either side of Superior Avenue. See the
attached Caltrans RAN maps. The parcel west of Superior Avenue is approximately
13.7 acres (excluding street area) graded in 2 levels. This parcel is encumbered with a
35 -foot wide storm drain easement and a 30 -foot wide sewer easement across the
westerly side and includes 2.15 acres of roadway slopes above Superior Avenue and
West Coast Highway. The westerly parcel is unimproved with no vehicular access to
the adjacent roadways. The parcel east of Superior Avenue is approximately 1.1 acres
(excluding street area) and is sloping with a graded abutment for a future bicycle bridge.
Caltrans has attempted to sell the Caltrans West parcel on at least two occasions at
auction and received no acceptable bids. In 1992 they offered to sell the property to
the City for $8,240,000. The City countered with an offer of $2,100,000; however an
agreement on price was not reached. In 1996 Caltrans and the City agreed to have
Caltrans West appraised by an appraiser acceptable to both parties using instructions
for the appraisal that were also agreed to by both parties. That appraisal, completed in
September of 1997, concluded that the value was $2,530,000. Due to delays in
reaching an agreement on the purchase, Caltrans requested that the appraisal be
SUBJECT: Option To Purchase Caltrans West (Sunset View Park)
November 22, 1999
Page 2
updated with the date of value changed to August 1, 1998. As of that date, the
appraised value was $3,730,000. _
On September 23, 1999, the City received an offer from Caltrans to sell Caltrans West
at the appraised price of $3,730,000 and requested a 5% deposit. The City has
countered with a request for a 1 -year option to purchase at a fee of 10% of the sale
price with an extension of 1 year for an added 5 %. These fees would be applied to the
purchase. Caltrans has not yet agreed to these terms. The City Attorney and the City
Manager will need to have further discussions with Caltrans. The current year's budget
provides sufficient funds to cover the 10% option fee. Funds for the remaining 90%
have not been programmed. Taylor Woodrow's proposal for the development of the
West Newport Oil properties could include a park site on Caltrans West. If this is the
case, they may agree to provide funding for the City to complete the purchase.
It is recommended that the City Manager be authorized to negotiate and execute a 1-
year option to purchase Caltrans West (Sunset View Park) for 10% of the appraised
value with, if needed, a 1 -year extension at 5% of the appraised value.
Respectfully submitted,
cz ov
PUBLIC WORKS DEPARTMENT
Don Webb, Director
Attachement: Caltrans R/W Map No. F 1710 -2
f: \users\pbw\shared \council\"9 -00 \november- 22\caltrans west.doc
•
E
0i
COUNTY OF . Y OF
NEWPORT
= ORANGE BEA
a
u1 P C
w m '
OI ''
X100 1
O
Lo;- VICINITY MAP
u-
0
Z �IIII�
O
,>
� %\ r0z.4
y' \
\ \ 35' STO M DRAT
S•�nmt
COUNTY RTE P,µ
12 ORA I 19.7
PARCELS:040766
040767
CITY OF NEWPORT
sss Fq /N
N
Og qc0 FT G FSMT
S
6520 AC 9 Ft Slopa 9 Dra aqa EaRr
BEACH
SUPERIOR AVE
STREET AREA= 60,839 SO I
STATE OF CALIFORNIA --
PL 4T ACC5 ANMG
29
DEPARTMENT OF TRANSPORTATION -- DISTRICT 12
TORS DEED DD 040766-01-01
REP' AMR' F 171
SCALE: NONE
DRWN: EK CHKD:RC
DATE: 8 -28.91
�_ flap 1 of 2
COUNTY OF ! CITY OF
NEWPORT
U ORANGE BEAC
w w PACE-- i
(DI co �COAs
0lo0 \
0 0
a-
3. VICINITY MAP
U Z
IL
O,
I—
Z
O
U
CITY
I�,II \
14
35' Strom Draln
sm
J� '& Sewer Esmi
Slo a 8'Dralno e —
Esml
DIST COUNTY RTE P.K
12 ORA 1 I 119.7
PARCELS:040766
040767
(DD 040766- 01 -02)
OF NEWPORT BEACH
) AC q FI Slope 8 Drel an g E Z
` / SUPERIOR
\qsr
�yw\STREET AREA= 32,673 SQ FT
STATE OF CALIFORNIA --
tzar ACCOMOANnNG
D /RECTOR S
REF. MAP: F 7710-
'Port Bee /.
- AVER -+�
DEPARTMENT OF TRANSPORTATION -- DISTRICT
DEED DD 040766-01-02
SCALE: NONE
29
DRWN: EK CHKD:RC
DATE: 8 -2891
Rev 4 -30 -92
,11 � 41y9 - tt IS
Cost Comparisons for Property Purchased from Caltrans
West Newport Park purchased by the City:
Size: 5.119 acres
Date Purchased by Caltrans: 1963 for $1,527,501
Date Purchased By City from Caltrans May 1980
Purchase Price in 1980 Dollars: $ 689,150
Purchase Price in 1999 Dollars: $1,366,700
1999 cost per acre: $266,980 or per square foot = $6.13.
If this price were applied to Caltrans West's net 14.79 acres, the Caltrans West price
would be: $266,980 X 14.79 = $3,948,700.
Caltrans East purchased by Hoag Hospital::
Size: 22.85 acres
Date Purchased by Caltrans: 1965 for $3,688,000
Date Purchased By Hoag from Caltrans April 1984
Purchase Price in 1984 Dollars: $5,000,000
Purchase Price in 1999 Dollars: $8,531,800
1999 cost per acre: $373,380 or per square foot = $8.58
If this price were applied to Caltrans West's net 14.79 acres, the Caltrans West price
would be: $373,380 X 14.79 = $5,522,300.
Caltrans West:
Size: 14.79 acres (after street R/W removed)
Date Purchased by Caltrans: 1965 & 1966 for an estimated $2.3 - 2.8 Million.
In 1999 dollars this purchase price would be $ 9 to 11 million.
Caltrans has offered to sell Caltrans West to the City for $3,730,000.
This is a cost per acre of : $3,730,000/14.79 Acres = $252,197 /acre or $5.79/sq. ft.
11/22/99