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HomeMy WebLinkAbout75A - PH - RESO 1607 N BRISTOLREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 1502016 TITLE: PUBLIC HEARING — RESOLUTION AUTHORIZING. CONDEMNATION OF REAL PROPERTY AT 1607 NORTH BRISTOL STREET FOR BRISTOL STREET IMPROVEMENTS (PROJECT NO. 116740) (NONGENERAL FUND) {STRATEGI PLA CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: _ J:• _*, [I As Recommended ❑ A ®Amended ❑ Ordinance on I" Reading Ordinance on god Reading [] Implementing Resolution ® Set Public Hearing For CONTINUED TO //, -/9 /� FILE NUMBER Adopt a resolution authorizing the condemnation of the entire real property located at 1607 North Bristol Street (APN 405 - 252 -22) declaring the public necessity and interest therefore, and approve the transfer of funds in the amount of $631,435 to the State Treasurer's Office Condemnation Deposits Fund. DISCUSSION Bristol Street is a major north -south transportation facility which is designated as a major arterial highway in the City's Circulation Element of the General Plan. Improving the 3.9 -mile Bristol Street segment from Warner Avenue to Memory Lane has been a long -term priority project that will be constructed in several phases. Improvements include widening the street from two to three lanes in each direction, and installing raised landscape medians and bike lanes. Public Works Agency staff is acquiring properties for the development of Phase 1116, bounded by Washington Avenue and Seventeenth Street, and expects to complete the acquisition process by spring 2017. Construction is anticipated to begin in summer 2017. To accommodate these improvements, acquisition of the entire parcel at 1607 North Bristol Street is required (Exhibit 1). The Public Works Agency has made a diligent effort to negotiate with the property owners and their representatives for the past 27 months. A good faith offer was made on November 16, 2015, in the amount of $631,435 (Exhibit 2). Furthermore, Public Works staff has been working closely with the representatives of the property owners and the City's Planning Division to facilitate potential relocation within the project segment. The Public Works Agency will continue to make every effort to reach a settlement with the property owners. However, to maintain the Bristol Street Improvements project schedule and meet the funding requirement to commence construction in summer 2017, staff is requesting adoption of a Resolution of Necessity (Exhibit 3) and initiation of condemnation proceedings while negotiations continue. 75A -1 Public Hearing & Resolution Authorizing Condemnation of Real Property for 1607 North Bristol Street March 15, 2016 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 — Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy G (develop and implement the City's Capital Improvement Program in coordination with the Community Investment and Deferred Maintenance Plans). Approval of this item also supports the City's efforts to meet Goal #3 — Economic Development, Objective #2 (create new opportunities for business /job growth and encourage private development through new General Plan and Zoning Ordinance policies), Strategy C (support business development and job growth along transit corridors through the completion of critical transit plans /projects). ENVIRONMENTAL IMPACT In 1990, City Council approved the Bristol Street Final Environmental Impact Statement/Environmental Impact Report (FEIS /EIR No. 89 -01). Due to several minor design modifications in Phase 1116, which encompasses the area between Washington Avenue and Seventeenth Street, an Addendum to the FEIS /EIR was prepared and adopted by City Council on June 3, 2014, pursuant to the California Environmental Quality Act. FISCAL IMPACT Funds are appropriated in the Bristol Street Improvements Project (No. 116740); $157,858.75 in the Select Street Construction Fund (Account No. 05917661- 66220), and $473,576.25 in the Measure M2 Street Construction Fund (Account No. 03217662- 66220) for transfer to the State Treasurer's Office Condemnation Deposits Fund in FY 2015 -2016. w b w- �o. Fred Mousavipour Executive Director Public Works Agency FM /EWG /KN Exhibits: 1. Location Map 2. Offer Letter 3. Resolution of Necessity APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez pi Executive Director Finance & Management Services Agency 75A -2 4 (NTS) 18TH STREET 17TH STREET 405 - 252 -21 MATCHUNE SEE TOP RIGHT -;r,I ,Etr PaQIERTI MATCHUNE SEE BOTTOM LEFT EXHIBIT 1 WASHINGTON AVENUE SANTA ANA PUBLIC HEARING — RESOLUTION AUTHORIZING CONDEMNATION NORTH pVH AGENDA STREET OR BRISTOL IMPROVEMENT,, (PROJECT NO. 116740) (NONGENERAL FUND) oWL (STRATEGIC PLAN NO. 6,1,G AND 3,2,C) 75A -3 H W `~' a w u F- e w 0 W � o U J O6 � 6 6 /I- Vd N 405 - 252 -21 MATCHUNE SEE TOP RIGHT -;r,I ,Etr PaQIERTI MATCHUNE SEE BOTTOM LEFT EXHIBIT 1 WASHINGTON AVENUE SANTA ANA PUBLIC HEARING — RESOLUTION AUTHORIZING CONDEMNATION NORTH pVH AGENDA STREET OR BRISTOL IMPROVEMENT,, (PROJECT NO. 116740) (NONGENERAL FUND) oWL (STRATEGIC PLAN NO. 6,1,G AND 3,2,C) 75A -3 75A -4 City of Santa Ana RECEIPT OF OFFER PACKAGE Bristol Street Widening -Washington Avenue to Seventeenth Street Parcel File No, 405 - 252 -22 Owner(s) of Record: Additional Owner (s) of Record: Property Address: JERONIMO CHAVEZ AND GUADALUPE CHAVEZ, HUSBAND AND WIFE AS JOINT TENANTS 1607 N. Bristol Street Santa Ana, CA This is to acknowledge receipt of the offer package containing the following items: Updated Offer letter dated November 16, 2015 which includes: • Property Legal Description (Attachment 1) • Statement of Just Compensation (Attachment 2) • Summary Explanation Statement (Attachment 3) City of Santa Ana Handbook on Acquisition Jeronimo Chavez Guadalupe Chavez Exhibit 2 75A -5 Date Date MAYOR Miguel A. Pulido MAYOR PRO TEM Vincent F. Sarmiento COUNCILMEMBERS Angelica Amezcua P. David Benavides Michele Martinez Roman Rayne Sal Tinajero 01 15 Rai1107 'iitIe ,4171M CITY OF SANTA ANA PUBLIC WORKS AGENCY 20 Civic Center Plaza M -36 • P.O. Box 1988 M -36 Santa Ana, California 92702 w .santa- ana.oro Jeronimo Chavez & Guadalupe Chavez 1607 N. Bristol Santa Ana, CA 92706 SUBJECT: UPDATED OFFER TO ACQUIRE PROPERTY AT: 1429 N. BRISTOL STREET, SANTA ANA, CA APN: 405 - 252 -22 Dear Mr. and Mrs. Chavez: CITY MANAGER David Cavazos CITY ATTORNEY Sonia R. Carvalho CLERK OF THE COUNCIL Maria D. Huizar The City of Santa Ana ( "City ") is proceeding with its plans to construct Phase IIIB of the Bristol Street Improvements and Widening Project between Washington Avenue and Seventeenth Street. The City obtained a preliminary title report that lists Jeronimo Chavez and Guadalupe Chavez, husband and wife as joint tenants. The City seeks to acquire the property located at the above - mentioned address, which consists of the underlying real property as described in Attachment 1. The area to be acquired is referred to herein as the `Property'. No final determination has been made as to the ownership of the Property. This offer is contingent upon presentation of conclusive evidence of title. If more than one person has an interest in the Property that the City is seeking to acquire, all parties with such interest must accept this offer. As you know, the City had your Property appraised by certified appraisers for the real estate as well as improvements pertaining to the realty to determine its fair market value. The appraisals were conducted in accordance with commonly accepted appraisal standards and included consideration of the highest and best use of the land. Based on the appraisals, the City offers you $620,000 for the real estate and $11,435 for Improvements Pertaining to Realty IPR) for a total compensation of $631,435. The basis for this offer is explained more thoroughly in the attachments to this letter that are made a part of this offer by reference. This offer is conditional upon the City Council ratifying this offer by a formal action taken at a regular public meeting authorizing the execution of a Purchase and Sale Agreement or adopting a Resolution of Necessity, or both. 75A -6 1607 N. Bristol Street November 16, 2015 Page 2 If you are not satisfied with the City's offer, you are encouraged to present to us any material you believe to be relevant to the value of the Property, which material will be carefully considered by the City. If, in the City's opinion, the additional information warrants a change in the offer, the City's offer will be adjusted accordingly. If a voluntary agreement cannot be reached, the City may consider formal condemnation proceedings against the Property through its power of eminent domain or abandon its intention to acquire the Property, giving proper notice to you in either event. The City has made no decision to exercise its power of eminent domain to acquire the Property and can only do so after it holds a hearing, at which all affected Property owners have had an opportunity to appear and be heard. The Purchase Price is the full amount established by the appraisal as the fair market value of the Property and the just compensation for such acquisition. A written statement and a summary of the basis for the amount established as the Purchase Price is set forth in the attached Statement of Just Compensation, identified as Attachment 2. The California Relocation Assistance and Real Property Acquisition Guidelines provide that each Owner from whom the City purchases real property or an interest therein, or each tenant owning improvements on said Property, be provided with information relating to the acquisition procedures pursuant to the Government Code, Paragraph 7267.2(a). This information is provided in Attachment 3. Please also be advised that under Code of Civil Procedure Section 1263.025, the City of Santa Ana will reimburse an owner of property, up to the amount of $5,000 for the owner to secure an independent appraisal of property subject to a potential acquisition. Per our records you have requested and received the $5,000 for preparation of the appraisal report for your property. Please let us know prior to November 30, 2015 if the City's offer is acceptable. A written agreement concerning the acquisition of the Property will be provided to you for your review and approval. If for any reason you should see fit not to accept the City's offer, please be advised that this letter, the offer made herein, the enclosed summary statements, and all matters stated herein are made under the provisions of California Evidence Code § §1152 and 1154 and shall not be admissible in evidence in any eminent domain proceeding which may subsequently be instituted for acquisition of the Property, or in any other action. If you need additional information, please call me at (714) 647 -5664. Sincerely, Jason Gabriel Principal Civil Engineer 75A -7 ATTACHMENT LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF ORANGE, CITY OF SANTA ANA, AND IS DESCRIBED AS FOLLOWS: THAT PORTION OF THE LAND ALLOTTED TO JACOB ROSS IN DECREE OF PARTITION OF THE RANCHO SANTIAGO DE SANTA ANA, RECORDED IN BOOK "B" OF JUDGEMENTS OF THE 17TH JUDICIAL DISTRICT COURT OF CORPORATION, IN THE CITY OF SANTA ANA, AS DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF THE SOUTH 6 ACRES OF A TRACT OF LAND DESCRIBED AS COMMENCING AT THE CORNER COMMON TO SECTIONS 1, 2, 11 AND 12, TOWNSHIP 5 SOUTH, RANGE 10 WEST, SAN BERNARDINO BASE AND MERIDIAN, CITY OF SANTA ANA; RUNNING THENCE SOUTH ALONG THE WEST LINE OF SAID SECTION 12, 10 CHAINS; THENCE EAST 10.59 CHAINS; THENCE NORTH 10 CHAINS; THENCE WEST 10.59 CHAINS TO THE POINT OF COMMENCEMENT; SAID POINT OF BEGINNING BEING A DISTANT 285.74 FEET, MORE OR LESS, SOUTHERLY FROM SAID CORNER COMMON TO SECTIONS 1, 2, 11 AND 12; RUNNING THENCE FROM SAID POINT OF BEGINNING EASTERLY ALONG THE NORTHERLY LINE OF SAID 6 ACRE TRACT 174.62 FEET; THENCE SOUTHERLY, PARALLEL WITH THE WESTERLY LINE OF SAID SECTION 12, 100 FEET; THENCE WESTERLY, PARALLEL WITH THE NORTHERLY LINE OF SAID 6-ACRE TRACT, 174.62 FEET TO THE WESTERLY LINE OF SAID SECTION 12; THENCE NORTHERLY ALONG SAID WESTERLY LINE 100 FEET TO THE POINT OF BEGINNING. EXCEPT THEREFROM THE NORTHERLY 50.00 FEET THEREOF. ALSO EXCEPT THEREFROM A STRIP OF LAND 30 FEET WIDE OFF THE WEST OF SAID LAND, NOW INCLUDED IN BRISTOL STREET. SAID LAND IS ALSO SHOWN AS PARCEL 3 ON LICENSED SURVEYOR'S MAP RECORDED IN BOOK 3, PAGE 12 OF RECORDS OF SURVEY. APN: 405 - 252 -22 75A -8 ATTACHMENT 2 STATEMENT OF VALUE AND SUMMARY OF THE BASIS FOR APPRAISAL Code of Civil Procedures § 1255.010(b) THE AMOUNT ESTABLISHED AS JUST COMPENSATION Government Code § 7267.2(a) OWNERSHIP Jeronimo Chavez and Guadalupe Chavez, husband and wife as joint tenants The following is a Statement of Value and Summary of the Basis for Appraisal and the Amount that the client established as Just Compensation ( "Summary") required by the California Eminent Domain Law. The appraisal on which this summary is based was made in connection with establishing the amount of compensation as required by Code of Civil Procedure section 1255.010(b). The appraisal on which this summary is based was made in accordance with accepted appraisal principles, consistent with California Valuation Law. A statement and summary described the basis for the appraisal from which the client established compensation. There follows the Statement of Value and Summary of the Basis for Appraisal and the Amount Established as Just Compensation ( "Summary "): BASIS OF VALUATION The fair market value is based upon an appraisal prepared in accordance with accepted appraisal principles and methodologies. Code of Civil Procedure Section 1263.320 defines Fair Market Value as follows: (a) The fair market value of the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell, but under no particular or urgent necessity for so doing, nor obliged to sell; and a buyer, being ready, willing and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available. (b) The fair market value of property taken for which there is no relevant comparable market is its value on the date of valuation as determined by any method of valuation that is just and equitable. Section 1263.330 provides that the fair market value shall not include an increase or decrease in the value attributable to the project for which the property is to be acquired. The property is being appraised for the possible full acquisition by the City of Santa Ana to assist in negotiations with the property owner for the possible full acquisition of the subject property as a part of the Bristol Street Widening Improvement Project. 75A -9 DESCRIPTION OF THE SUBJECT PROPERTY Ownership: Jeronimo Chavez and Guadalupe Chavez, husband and wife as joint tenants Location: 1607 North Bristol Street, Santa Ana, California 92706 Assessor's Parcel No.: 405 - 252 -22 Date of Value: October 30, 2015 Property Rights Appraised:Fee simple Site Area: Approximately 6,731 square feet, or 0.15 acre, according to the Assessor's Map Zoning: The parcel is zoned C -5 (arterial commercial), within the Bristol Street Corridor Specific Plan designated by the City of Santa Ana. Present Use: Highest and Best Use (As Vacant): Highest and Best Use (As Improved): Commercial Retail development Continue the existing use Improvements: According to information obtained from public records and verified by physical measurements of the building, the building has a gross building area of 1,491 square feet. It was originally constructed in 1926. Description of Acquisition: A full acquisition is proposed 75A -10 SALES COMPARISON APPROACH The estimated fair market value of the subject property is based on improved sales data for other properties with essentially the same utility and amenities. The subject property is located on a primary arterial street and the property benefits from good access and visibility. To analyze the value of the subject property, a search was conducted of the market area for similar improved office building sales. Very few transactions were found in Santa Ana. The search was expanded to surrounding areas and included small office buildings that sold throughout Orange County since January 2014, built before 1990 and between 1,000 and 10,000 square feet in size. Of the comparables discovered, the six most similar properties were chosen for comparison. The comparables reflect selling prices ranging from $370,000 to $600,000, which is approximately $293 to $417 per square foot of building area, or approximately $34 to $106 per square foot of land area. Office buildings of this size are primarily purchased for owner - occupancy whereby the fee simple interest is conveyed. The primary approach used in this market by owner -users is the sales comparison approach. As such, the sales comparison approach is developed to provide an indication of the fee simple market value. The comparable sales are analyzed using the price per square method, which is the typical basis used by buyers in this market. This unit of measure provides a reliable basis of comparison for the assignment. As a check to the reasonableness of the conclusion price per square foot of land area is also reviewed. Adjustments are considered for transactional differences as well as for physical differences between the subject property and comparables. Included on the following page is a Comparable Improved Sales Summary. 75A -11 Conclusion 75A -12 � E it II y 4 146 q V : s E I$ a8 p �a�i a o T v m° Z s A 4 p v O j �g K h E N. p� p 5 .0 tg e°4r'.••u`.0 t�ib. U. tY 4� Qi�aS. Conclusion 75A -12 After adjustments for market conditions, the comparables establish a fair market value range for the subject property between $316 and $423 per square foot as shown in the following table. Comparable No. 4 is superior at $423 per square foot, whereas Comparable No. 1 is inferior at $411. Based on the subject property's size, location and condition, a value between these two comparables appears reasonable for the subject property. Indicated Values Comparable Overall Indicated $ /SF No. Comparability 4 Superior $423 Subject - - - -- $415 1 Inferior $411 5 Inferior $374 6 Inferior $340 2 Inferior $326 3 Inferior $316 A fair market value of $415 per square foot is concluded. Based on the preceding investigation and analysis, the fair market value of the subject property, as of October 30, 2015, is calculated as follows: INDICATED VALUE - SALES COMPARISON APPROACH 1,491 SF X $415 PSF = $618,765 ROUNDED $620,000 75A -13 INCOME APPROACH The subject property is an owner - occupied, single - family residence which has been converted and utilized as aN office building. As such, the fee simple value is analyzed using market rent and expenses. Market Rent Analysis A survey of Santa Ana and the surrounding cities for recently executed leases and asking rents for office space ranging from 500 to 10,000 square feet in size is used in the analysis. The important factors considered during selection of the comparables include location, building area, visibility and access. The search focused on properties with arterial street visibility, but data for such properties was found to be somewhat limited; however, sufficient data was available to estimate a market rental rate for the subject property. The survey properties indicate that rents are written on a triple -net, modified gross, and full service gross basis. For valuation purposes, a triple -net basis will be utilized. For triple -net leases, the tenants pay operating expenses such as property taxes, insurance, tenant utilities and janitorial, common area maintenance and utilities, building repairs and maintenance, security, parking and sometimes management (or a portion of management). These expenses are normally recouped by the landlord in the form of an expense reimbursement charge. The landlord is still responsible for non - reimbursed management (collecting the check and watching over the property) miscellaneous expenses such as those incurred between tenancy, accounting, legal, miscellaneous and replacement of short -lived items such as the roof, air - conditioning units and exterior walls, if applicable. Based on the review of the rental data and after consideration for differing property characteristics, it is concluded that a rental rate of $1.80 per square foot per month, triple -net, for the subject property is reasonable for the analysis and is used in the direct capitalization analysis. The estimated market income for the subject property is calculated in the following table: CONCLUDED MARKET RENT Building Market Rent /SF Market Annual Market Size Mo. Rent/Mo. Rent 1,214 SF $1.80 $2,185 $26,222 Vacancy and Collection Loss Small office buildings are most frequently purchased for owner - occupancy and are analyzed using the sales comparison approach, with values calculated assuming no vacancy or collection loss. However, from the perspective of an investor, a 75A -14 stabilized vacancy and collection loss within the historical range is usually applied, assuming a five- to 10 -year holding period. An estimated stabilized vacancy and collection loss of 3% is considered appropriate for the direct capitalization analysis. Expense Analysis The subject property is an owner -user office building. Typically, leases for similar buildings in this market are written on a triple -net lease basis, where the tenant is responsible for operating expenses for the property including: taxes, insurance, utilities, common area maintenance, building repairs and maintenance. The owner is responsible for management, miscellaneous expenses, and administrative costs. The capital value analysis has been analyzed on a typical triple -net basis. Overall Capitalization Rate A review of sales and listings of office properties found that reported OARs reflect rates from 4.00% to 5.87 %. These sales are considered the best evidence of an appropriate capitalization rate for the subject property. 75A -15 DIRECT CAR TALI ZATI ON ANALYSIS Office Building 1607 N. Bristol Street Santa Ana, California I NCOM E: Rental Income Market Fbntal Income Monthly FBntal Income $1.50 PEF x Total LeaseableArea 1,491 S= Total Potential Gross Income Vacancy 3% Effective Goss Income Management 2.0% Fbserves rtal Fbmbursable Expenses Operating Income Indicated Valueat Market Rent "Difference maybe due to rounding. Income Approach Conclusion $ /SF ($0.42) (P0.101 ($0.52) Annual 12 Months $32,206 $32,206 ($966' $31,239 ($625) /.41491 ($774) ($774' $30,466 5.00° $609,311 The direct capitalization analysis and resulting indication of market value via the income approach is shown on the following page. The indicated fair market value, as of October 30, 2015, is as follows: INDICATED VALUE - INCOME APPROACH $610,000 CONCLUSION OF VALUE The approaches most often relied on by buyers of this type of property have been developed. Thus, the sales comparison approach is developed as the primary value indicator. The cost and income approaches are rarely considered by buyers in 75A -16 this market and are less reliable than the sales comparison approach as the typical buyer of the subject property would be an owner - occupant. There are limited investor sales with reported overall capitalization rate data in this building market segment and data for signed leases is of limited quantity and quality. The income approach has been developed, but is given less weight in the final conclusion of value. The cost approach is rarely used by buyers in this market and does not tend to produce reliable valuation results; the cost approach has not been developed. APPRAISAL CONCLUSION Considering the data and analyses presented, the opinion has been formed that as of October 30, 2015, the fair market value of the subject property is: INDICATED VALUE Sales Comparison Approach $620,000 Income Approach $610,000 Reconciled Value (Rounded) $620,000 75A -17 ATTACHMENT 3 SUMMARY STATEMENT ACCOMPANYING OFFER RELATING TO ACQUISITION PROCEDURES FOR PURCHASE OF REAL PROPERTY OR AN INTEREST THEREIN You are entitled to receive full payment prior to vacating the real property being purchased unless you have heretofore waived such entitlement. You are not required to pay recording fees, transfer taxes, or the pro rata portion of real property taxes which are allocable to any period subsequent to the passage of title or possession. 1. The holders of liens, deeds of trust or other security interests in your property and /or any leases or tenants of your property may be entitled to all or a portion of the consideration to be paid by the City of Santa Ana ( "City ") for your property in accordance with the particular contract(s) existing between you and the lien holder or lessee /tenant. 2. All buildings, structures, and other improvements affixed to the land described in the reference documents covering this transaction and owned by the grantor herein or, if applicable, owned by you as a tenant are not being conveyed unless other disposition of these improvements has been made. The interest acquired is fee title. 3. The amount determined to be just compensation was determined after consideration of an appraisal of the fair market value of the Parcel. The basis for the amount determined to be just compensation is summarized on the attached Appraisal Summary Statement (Statement of Just Compensation) and the amount of the Purchase Price: a. Is the full amount believed by the City to be just compensation for the property taken; b. Is not less than the approved appraisal of the fair market value of the property as improved; c. Disregards any decrease or increase in the fair market value of the public improvement for which the property is to be acquired for such public improvement, other than that due to physical deterioration within the reasonable control of the owner or occupant; and d. Reflects the definition of "fair market value" as defined in Eminent Domain Law (California Code of Civil Procedure Section 1263.320) which is "the highest price on the date of valuation that would be agreed to by a seller being willing to sell but under no particular or urgent necessity for doing so, nor obliged to sell, and a buyer, being ready, willing and able to buy but under no particular necessity for so doing, each dealing with the other will full knowledge of all the uses and purposes for which the property is reasonably adaptable and available." 75A -18 Page 2 APN: 405 - 252 -22 e. Does not reflect any consideration of or allowance for any relocation assistance and payments or other benefits which the owner is entitled to receive under an agreement with the public entity. 4. If you ultimately elect to reject the offer made by the City of Santa Ana for your property, you are entitled to have the amount of compensation determined by a court of law in accordance with the laws of the State of California. 75A -19 JXS/4/19/16 RESOLUTION NO. 2016- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA FINDING AND DETERMINING THAT THE PUBLIC INTEREST, CONVENIENCE AND NECESSITY REQUIRE THE ACQUISITION OF CERTAIN REAL PROPERTY LOCATED WITHIN THE CITY OF SANTA ANA LOCATED AT 1607 N. BRISTOL STREET (APN 405 - 252 -22) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana on April 19, 2016, after written notice duly provided to all those claiming ownership, including the owners of the properties described hereafter, as they appeared on the last equalized County assessment roll, held a hearing pursuant to Code of Civil Procedure section 1245.235 for the purpose of allowing the owners thereof a reasonable opportunity to be heard on the following matters: A. Whether the public interest or necessity requires the project; B. Whether the project is planned or located in a manner which is most compatible with the greatest public good and the least private injury; C. Whether the property proposed to be acquired is necessary for the project; D. Whether the offer required by Government Code section 7267.2(a), together with the accompanying statement and summary of the basis for the amount established as just compensation, was actually made and whether said offer and statement /summary contained all of the factual information required by Government Code section 7267.2(a); E. Whether the City has complied with all conditions and statutory requirements necessaryto exercise the power of eminent domain to acquire the property described herein, as well as any other matter regarding the right to take said property by eminent domain; and F. Whether the City has statutory authority to acquire the property by eminent domain. Section 2. The City Council has, as a result of its consideration and the evidence presented at the hearings on this matter, and in accordance with the California Environmental Quality Act ( "CEQA ") and the State CEQA Guidelines, determined that the proposed project has been adequately evaluated in the previously prepared Environmental Impact Report/Environmental Impact Statement EIR No. 89 -01 and all Exhibit 3 Resolution No. 2016- Page 1 of S 75A -20 subsequent addenda. In accordance with National Environmental Policy Act, an Environmental Assessment document with a Finding of No Significant Impact was prepared for the proposed project and approved by the California Department of Transportation and Federal Highway Administration in 2011. On the basis of this review, the City Council finds that there is no evidence from which it can be fairly argued that the Project will have a significant adverse effect on the environment. Section 3. Pursuant to Title XIV, California Code of Regulations ( "CCR ") § 735.5(c)(1), the City Council has determined that, after considering the record as a whole, there is no evidence that the proposed project will have the potential for any adverse effect on wildlife resources or the ecological habitat upon which wildlife resources depend. The proposed project exists in an urban environment characterized by paved concrete, roadways, surrounding buildings and human activity. Therefore, pursuant to Fish and Game Code § 711.2 and Title XIV, CCR § 735.5(a)(3), the payment of Fish and Game Department filing fees is not required in conjunction with this project. Section 4. The City of Santa Ana ( "the City "), as a result of said hearing, has determined that the public interest and necessity require the proposed project and that the proposed project is planned or located in a manner that will be the most compatible with the greatest public good and least private injury and that the public interest, necessity, health, safety and welfare require the acquisition by the City of Santa Ana of the certain real property located at 1607 N. BRISTOL STREET (APN 405 - 252 -22) in the City of Santa Ana, California ( "the "Property "). The City's construction of the Project will leave a portion of APN 405 - 252 -22 as a remnant parcel, and the City is acquiring that portion of APN 405 - 252 -22 as a remnant parcel, pursuant to Code of Civil Procedure section 1240.410. The Property is situated in the City of Santa Ana, County of Orange, State of California, and more particularly described in Exhibit "A" which is attached hereto and incorporated herein by reference and made a part hereof as though fully set forth herein, for the public purposes hereafter set forth. Section 5. The City hereby finds, determines and declares that the public interest, convenience and necessity require the acquisition by said City of the Property described in Section 4 above, including any and all leaseholds and related improvements for the purposes of the Phase I1113 of the Bristol Street Widening Project ( "the Project "). The location of the Project is between Washington Avenue and Seventeenth Street for the widening of Bristol Street. Included in the project will be street pave -out, and the installation of concrete curbs, gutters, and sidewalks in a manner which will be most compatible to the greatest public good and the least private injury. Section 6. The taking of the interest in said Property as described in Section 4 above is necessary for the public right of way and is authorized by Section 19 of Article I of the California Constitution, Section 200 of the Santa Ana Charter, Santa Ana Municipal Code § 41 -781; California Code of Civil Procedure section 1240.010,1240.110; California Resolution No. 2016 - Page 2 of 5 75A -21 JXS/4/19/16 Government Code sections 37350.5 and 40404; California Streets and Highways Code sections 5101, 5101.5, 5102, and other applicable law. Section 7. The offer required by Government Code section 7267.2 was made to the appropriate party or parties with respect to the Property on or about October 1, 2013, an updated offer on June 16, 2014 and an additional updated offer on November 16, 2015. Section 8. The City hereby declares that it is the intention of the City of Santa Ana to acquire in its name, in accordance with the provisions of the laws of the State of California with reference to condemnation procedures, all interests in and to said Property described in Section 4 above and a portion of the property will be acquired pursuant to Code of Civil Procedure section 1240.410. Section 9. That if any of the Property described in Section 4 above has been appropriated for some public use, the public use to which it is to be applied and taken under this proceeding is a more necessary and paramount public use, Section 10. Said Property described in Section 4 above is located within the City of Santa Ana, County of Orange, State of California, and is more particularly described in Section 4 hereof. Section 11. The City of Santa Ana is authorized to acquire by eminent domain as provided in the California Code of Civil Procedure. Section 12. The City Attorney is hereby authorized and directed to prepare, institute and prosecute in the name of the City such proceedings, in the proper court having jurisdiction thereof, as may be necessary for the acquisition of the interests in said Property described in Section 4 above. The City Attorney is also authorized and directed to obtain a necessary order of immediate possession and occupancy of said Property, at the discretion of the City Attorney. Section 13. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of 12016. Miguel A. Pulido Mayor Resolution No. 2016 - Page 3 of 5 75A -22 APPROVED AS TO FORM: Sonia A. Carvalho, City Attorney By: se andoval of Assistant City Attorney AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2016- to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Resolution No. 2016 - Page 4 of S Clerk of the Council City of Santa Ana 75A -23 Exhibit A LEGAL DESCRIPTION THF- LAND REFERRED TO HEREIN IS SITUATED IN THC STATE OF CALIFORNIA, COUNTY OF ORANGE, CITY OF SANTA ANA, AND IS DESCRIBED AS FOLLOWS: THAT PORTION OF THE LAND ALLOTTED TO JACOB ROSS IN DECREE OF PARTITION OF THE RANCHO SANTIAGO DE SANTA ANA, RECORDED IN BOOK "B" OF JUDGEMENTS OF THE 17TH JUDICIAL DISrRILT COURT OF CORPORATION, IN THE CITY OF SANTA ANA, AS DESCRIBED AS FOLLOWS: A r THE NORTHWEST CORNER OF THE SOUTH G ACRES OF A TRACT OF LAND AS COMMENCING AT THE CORNER COMMON TO SECTIONS 1, 2, 11 AND 12, S SOUTH, RANGE 10 WEST, SAN BERNARDINO BASE AND MERIDIAN, CITY OF FAST riVnc Vn L=c WUI 11MKLT rKVlh SAIU 4VKVER COMMON T 'O SECTIONS I, 21 11 AND 12; RUNNING THENCE FROM SAID POINT OF BEGINNING EASTERLY ALONG THE NORTHERLY LINE OF SAID G ACRE TRACT 174,62 FEET) THENCE SOUTHERLY, PARALLEL WITH THE WESTERLY LINE OF SAID SECTION 12, 100 FEET' 'I HENCE WESTERLY, PARALLEL, WITH THE NORTHERLY LINE OF SATO G -ACRE TRACT, 174.6' 2 FEETTO THE WESTERLY LINE OF SAID SECTION 12) THENCE NORTHERLY ALONG SAID WESTERLY LINE 106 FEETTO THE POINT OF BEGINNING, EXCEPT THEREFROM THE NORTHERLY $0.00 FEET THEREOP. ALSO EXCEPT THEREFROM A STRIP OF LAND 70 FEET WIDE OFF THE WEST OF SAID LAND, NOW INCLUDED IN BRISTOL STREET. SAID LAND IS ALSO SHOWN AS PARCEL 3 ON LICENSED SURVEYOR'5 MAP RECORDED IN BOOK 3, PAGE 12 OF RECORDS OF SURVEY. APNI 40S ^2S2122 75A -24 JXS/4/19/16 Resolution No. 2016 - Page 5 of 5