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Home My WebLink AboutF-11 - Santa Ana River Mainstem Flood Control Project Acquisition of City-Owned Property (Old Sewage Treatment Plant Site) by U.S. Corps of EngineersTO: City Council BY THE CITY COUNCIL CITY OF NEWPORT BEACH SEA ?SInjfl ArrKuvtu September 23, 1991 CITY COUNCIL AGENDA ITEM NO. F-11 FROM: Public Works Department SUBJECT: SANTA ANA RIVER MAINSTEM FLOOD CONTROL PROJECT ACQUISITION OF CITY -OWNED PROPERTY (OLD SEWAGE TREATMENT PLANT SITE) BY U.S. CORPS OF ENGINEERS RECOMMENDATIONS: 1. Authorize City Manager to negotiate terms of sale with the U.S. Corps of Engineers, and to make a counter- offer on behalf of the City. 2. Authorize the City Manager to execute conveyance documents on behalf of the City if a successful negotiation is concluded. DISCUSSION: The United States Government, represented by the Los Angeles District of the Corps of Engineers, wishes to acquire a 7.28 acre parcel ("Old Treatment Plant Site") of City -owned land adjacent to the Santa Ana River. This land is being utilized as a portion of the wetlands mitigation project in conjunction with the Santa Ana River Flood Control Project. Previously the Corps of Engineers had offered the City $610,000, based on their original appraisal. This offer was rejected as inadequate. On May 29, 1990, the City Council took action authorizing the staff to retain George Hamilton Jones to perform an appraisal of the property for the City; and also granted the Corps of Engineers a Right -of -Entry Permit for the land. Mr. Jones appraisal has been completed, with his appraisal of the fair market value being $1,300,000. Following this, the Corps made an increased verbal offer of $762,500, which was also rejected. Subsequently, the Corps has had a supplementary appraisal prepared. The later appraisal resulted in a fair market value figure of $910,000; and this amount has been offered to the City in a letter received September 12, 1991 (copy attached). Subject: September Page 2 the City Is desirable settlement litigation Santa Ana River Mainstem Flood Control Project Acquisition of City -owned Property (Old Sewage Treatment Plant Site) by U.S. Corps of Engineers 23, 1991 While the later offer is still substantially less than appraisal of $1,300,000, the staff feels it would be to attempt to achieve a compromise negotiated in an effort to avoid the need for condemnation between the two public agencies. It is proposed that a counter-offer be made, offering the property to the Corps for $1,100,000. A "Letter of Intent" has been sent to the Corps (copy attached) indicating that the staff intends to make this recommendation to the City Council. (2& Benjamin B. Nolan Public Works Director BBN:so Attachments DEPARTMENT OF THE ARMY LOS ANGELES DISTRICT, CORPS OF ENGINEERS P.O BOX 2711 LOS ANGELES. CALIFORNIA 90053-2325 REPI.V T,:) ATTENI,DN OF. Real Estate Division Acquisition Branch East Section City of Newport Beach Public Works Director ATTN: Mr. Ben Nolan 3300 Newport Boulevard P.O. Box 1768 Newport Beach, California 92659-1768 Dear Mr. Nolan: y, SEP�'� 1Jgl �V CALIF. ram I.AL I F. 0 As previously discussed, it is necessary for the United States of America (Government) to acquire the following real property for use in connection with the Santa Ana River Mainstem Flood Control Project. The property consists of 7.28 acres of land, identified in Government records as Tract Nos. 101 and 107, as outlined in red on the enclosed drawing (enclosure 1), together with all rights of ingress and egress appurtenant to the property. A legal description of the property is enclosed (enclosure 2). Purchase of the property is necessary for wet- lands restoration and preservation, environmental mitigation, and channel widening for flood control purposes. In compliance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, Public Law 91-646, our recent appraisal has determined that the amount of just compensation for the 7.28 acres to be acquired is $910,000.00. This amount is based upon and is not less than our approved appraisal of the fair market value of the land in an uncontaminated condition. If an agreement is reached, the Government will deposit $910,000.00 in an interest -bearing escrow account, payable to the owners when the land is available to be conveyed to the government free of contaminants and certified by the Government. Our appraisal was made by a qualified real estate appraiser using standard, nationally accepted market approach to value techniques recognized by authorities in the appraisal field. The appraisal was reviewed by a qualified review appraiser, who approved it as a well -documented conclusion of market value for the subject property. The amount does not reflect any consideration of or allowance for any relocation assistance and payments under Public Law 91-646. -2- All costs and expenses incident to the closing of this transaction will be borne by the Government except for escrow prorations on such items as taxes and liens of record, if any, made as of the date of settlement. Enclosed is an 'Offer to Sell Real Property' (enclosure 3), which is being hand -delivered to your office. Respectfully request your immediate attention to this offer. The Government desires possession of the property no later than October 31, 1991. If you have any questions or comments, please contact Mr. Roy Johnson at (714) 383-5800. Thank you for your cooperation in this matter. Sincerely, 4 - ay lor Chi Real Estate Division Enclosures `\ I .ram � , -..._ r• � -` .• � . 1t�1- ` . _ -. - .. � �'�� ,,'J y�� - 440 ''; `' ; 1,-• , ' \. • m ! ,, c � j ;_\ •, _... i ' � !� ; •:-� .�+' ' - �.! \ +- \ 11 R \04 ; 49 r F 303 GG U;'`' � X - .:ram •� _�' / j�'�j � �,� �� -, - •' �' J - _ _ gyp, _ �• �.. „�' �,; C r•V tZ .ram _ ", .^ !".� .!,l �' ,�..- r �• + i. U lam. \ 1• �•' \.\ � 15�, I L• //,Ij ___ .i � . , �.I � � � .�:. IN r Am 4A . 2 A4! '14 ik \Y' MARSH RESTORATION AREA lo :7 (4 PACIFIC COAST LEAST TERN RESERVE AREA Lu -7r kk pr 1-1UNTINGTON 4, z BEAC8 NEV/PORT EAC,,j o N IttA PHOTO 1: LOOKNIG UPSTREAM FROM MOUTH. LEAST TERN NESTING COLONY TO THE LEFT OF TALBERT CIIANKIFL. — I lt;t- 'r'pj CITY OF NEWPORT BEACH 11U131.IC• \V0RKS I)URAR"1 NIF. 1 f'.O. {iG;ti 1764, tiEWPOWf l3F•.ACH, i';'1 92659--176F (714) 04.4-331 1 September 13, 1991 Department of the Army Los Angeles District, Corps of Engineers P.O. Box 2711 Los Angeles, California 90053-2325 Attention: Mr. Virgil Taylor., Chief Real Estate Division; Acquisition Branch East Section Subject: Santa Ana River Mainstem Project, Acquisition of City Owned Land (Tract Nos. 1014and 107) by the Government - Letter of Intent Gentlemen: The City has received, on September 12, 1991, your offer to purchase 7.28 acres of City owned land identified as Tract Nos. 101 and 107 for the sum of $910,000. As previously indicated, the City has had an appraisal of the property prepared by George Hamilton Jones, MAI, with his appraised value being $1,300,000. We still believe that Mr. Jones appraisal correctly reflects the value of the property. Further, the City must acquire additional land at substantial cost in the nearby area to replace prior uses on the property and to provide for planned future municipal uses. IIowever, the City desires to cooperate in accomplishing the Santa Ana River flood control project, and is willing to compromise in order to avoid the necessity for condemnation litigation between public agencies. It is the intent of the City staff to recommend to the City Council, at its meeting of September 23, 1991, that the staff be authorized to submit a counter-offer to the Government for the acquisition of the property. The purchase price which will be recommended is $1,100,000. This letter of intent does not constitute the counter-offer. There are several minor technical matters in the Government offer which the City desires to modify, in addition to the change in the purchase price. A counter-offer will be prepared by the City and submitted to you as soon as practical. We wish to cooperate with your desire to acquire possession of the property by September 30, 1991. �BoVj�m'O'y truly ours, � c �Gt/"�,in B. Nolan Public Works Director BBN:so xc: City Manager City Attorney 3300 Newport Boulewird, Newport Be:zch