Loading...
HomeMy WebLinkAboutItem No. 26 - Joint Escrow Instructions for the Partial Acquisition for Assessor’s Parcel 0271-051-11 and 0271-051-12 for the Widening of West 40TH Street from Johnson Street to Electric Avenue Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Kris Jensen, Director of Public Works Subject: Purchase and Sale Agreement for 337 & 339 West 40TH Street Recommendation Adopt Resolution No. 2020-117 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute a Partial Purchase and Sale Agreement with Bryan Henley and Sharland L. Henley for the property located at 337 & 339 West 40th Street. Background This project consists of the widening of West 40th Street from Johnson Street to Electric Avenue to provide two through lanes in each direction and a two-way left-turn lane (Attachment 2 - Location Map). The project includes right-of-way (ROW) acquisition, undergrounding overhead utility lines, pavement widening, pavement rehabilitation, signing and striping. On July 19, 2017, the Mayor and City Council adopted Resolution No. 2017-131 approving an agreement with Engineering Resources of Southern California, Inc. to provide environmental and civil engineering design for the widening of West 40th Street from Johnson Street to Electric Avenue. Design and right-of-way acquisition for the widening of West 40th Street from Johnson Street to Electric Avenue was approved as part of the FY 2018/19 Capital Improvement Program. The environmental component of the project was completed on April 24, 2018, and the Plans Specifications & Estimate (PS&E) are 95% completed. As part of the PS&E, Engineering Resources of Southern California, Inc., was required to identify necessary ROW, full and partial takes for this project. A total of 15 parcels were identified to complete this project. On March 21, 2018, the Mayor and City Council adopted Resolution No. 2018-75 adopting a Mitigated Negative Declaration (MND), approving a Mitigation Monitoring and Reporting Program (MMRP). On September 5, 2018, the Mayor and City Council adopted Resolution No. 2018-248 approving an agreement with Paragon Partners, Ltd to acquire the right-of-way for this project. Page 1 6773 Discussion The subject property, located at 337 & 339 West 40th Street, San Bernardino, California (Property), consists of approximately 24,832 square feet of land and is improved with two single-family residences and a single tenant retail tenant, 664, 520, and 875 square feet in size, respectively. A small portion of the property is required for the construction of the City's capital improvement project West 40th Street Widening from Johnson Street to Electric Avenue (Project). The Project requires acquisition of a permanent easement for roadway purposes, approximately 2,919 square feet in size, from the subject property. Valbridge Property Advisors completed an appraisal report dated January 31, 2019, which established the Fair Market Value of the permanent easement at $200,250, which includes compensation for site improvements and severance damages. On June 17, 2019, The City of San Bernardino (City) approved the amount of just compensation and authorized the initiation of formal negotiations to acquire the permanent easement. On June 27, 2019, a written offer to purchase in the amount of $200,250 was presented to the property owner, Bryan Henley (Owner). improvements, including a portion of the asphalt-paved parking lot (five parking spaces), ion of concrete and asphalt-paved driveways. Additionally, acquisition of the permanent roadway easement will require the demolition of the 520 square foot single-family house located on the property in order to allow for replacement of the five parking spaces located within the permanent easement area. Demolition of the single-family home will result in the loss in value to the remainder property. The Owner reviewed the offer and appraisal and contested that the offer did not adequately compensate for the loss of value associated with the demolition of the single-family house located on the property. Moreover, the Owner contended that real value. Lastly, the owner provided a lease agreement for the 520 square foot house on the property, which illustrated an increase in the monthly rent from $800 to $1,000 since the appraisal was completed. As expressed by the owner, the house was re-leased to a new tenant upon expi Based upon the change in market conditions, the owner presented staff with a counter offer in the amount of $250,000. Staff consulted with Valbridge Property Advisors to evaluate the effect on the just compensation amount associated with the increase in rental income for the 520 square foot house. It was determined that the increase in the rental income equated to an equivalent increase in valuation of $40,000; suggesting a counter offer in the amount of $240,250. In response, staff prepared the attached Purchase and Sale Agreement (Agreement) and presented it to the owner on December 30, 2019; which was reviewed, accepted, and signed by the owner. Additionally, the owner is waiving his rights to reimbursement of up to $5,000 for an independent appraisal. Page 2 6773 the permanent easement and believes the counter offer to be fair and reasonable, and Staff recommends that the City of San Bernardino approve an administrative settlement in the amount of $240,250 and proceed with consummating the Agreement attached forward it to First American Title and Escrow Company, which will commence the escrow period for acquisition of the property rights required for the Project. 2020-2025 Key Strategic Targets and Goals Purchase of this property aligns with Key Target No. 1e: Create an asset management plan as it will allow the City to acquire right-of-way needed to move forward with - year Capital Improvement Plan. Fiscal Impact This project is being reimbursed by the San Bernardino County Transportation Authority (SBCTA) as part of the Valley Major Street Program. The West 40th Street Widening Project is one of the four projects in the City of San Bernardino approved for reimbursement under the Val Needs Assessment (CPNA). The reimbursement rate is 67.6%. Regional Circulation DIF funding in the amount of $3,122,206.09 was previously approved by the Mayor and City Council for the West 40th Street Widening From Johnson Street to Electric Avenue (account 264-160-7160-5504) and $2,622,340.09 remains available for this project. th Purchase of the property located at 337 & 339 W 40 Street in the amount of $240,250 will be paid from these available budgets. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, provide direction to staff regarding the right-of-way acquisition for West 40th -117 authorizing the City Manager to execute a Partial Purchase and Sale Agreement with Bryan Henley and Sharland L. Henley for the property located at 337 & 339 W. 40th Street. Attachments Attachment 1 Resolution 2020-- Sale Agreement Attachment 2 Location Map Ward: 4 Synopsis of Previous Council Actions: July 19, 2017 Mayor and City Council adopted Resolution No. 2017-131 approving an agreement with Engineering Resources of Southern California, Inc. to provide environmental and civil engineering design. Page 3 6773 March 21, 2018 Mayor and City Council adopted Resolution No. 2018-75 approving a Mitigated Negative Declaration (MND), adopting a Mitigation Monitoring and Reporting Program (MMRP), and authorizing the Director of Community Development or designee to file a Notice of Determination (NOD) with the Clerk of the Board of Supervisors of San Bernardino County for the widening of West 40th Street from Johnson Street to Electric Avenue. September 5, 2018 Mayor and City Council adopted Resolution No. 2018-248 approving an agreement with Paragon Partners, Ltd to provide right-of-way acquisition services. Page 4 RESOLUTION NO. 2020-117 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A PARTIAL PURCHASE AND SALE AGREEMENT WITH BRYAN HENLEY AND SHARLAND L. HENLEY FOR THE PROPERTY LOCATED AT 337 & 339 WEST 40TH STREET th WHEREAS, pursuant to the street widening project of 40 street between Johnson street and Electric Avenue, the City of San Bernardino requires the a small portion of the property th located at 337 & 339 W 40 Street; and WHEREAS, the parcels to be acquired are -051-11 and 0271-051- and WHEREAS, on July 19, 2017, the Mayor and City Council adopted Resolution No. 2017-131 approving an agreement with Engineering Resources of Southern California, Inc. to th provide environmental and civil engineering design for the widening of 40 Street from Johnson Street to Electric Avenue (SS04-014); and WHEREAS, on September 5, 2018, the Mayor and City Council adopted Resolution No. 2018-248 approving an agreement with Paragon Partners, Ltd to provide Right-of-Way th Acquisition Services for the widening of 40 Street from Johnson Street and Electric Avenue (SS04-014); and WHEREAS, the City and property owner have reached an agreement on the terms and purchase price for parcels to be. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager or her designee is hereby authorized on behalf of the City of San Bernardino to execute the Partial Fee Acquisition Purchase and Sale Agreement and Joint Escrow Instructions to conclude the purchase of said parcels for the amount of $240,250 attached hereto as Exhibit A. The City Manager is authorized to execute any additional documents necessary to effectuate the transaction. SECTION 3. The City Council finds that a Mitigated Negative Declaration (MND) was adopted for this project satisfying the requirements of the California Environmental Quality Act (CEQA), and the actions contemplated by this Resolution are within scope of the previously adopted MND. Resolution No. 2020-117 SECTION 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 5. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Acting City Clerk this ___ day of __________, 2020. __________________________________ John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, Acting City Clerk Approved as to form: __________________________________ Sonia Carvalho, City Attorney Resolution No. 2020-117 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. _____, adopted at a regular meeting held at the ___ day of _______, 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. ______________________________ Genoveva Rocha, CMC, Acting City Clerk Ǿ 3 ­ "¤±­ ±£¨­®Ǿ #!ȁ Street th tƩƚƦĻƩƷǤ \[ƚĭğƷźƚƓ ΖΖΜ ΗΓ ΖΖΚ