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HomeMy WebLinkAboutF-9a - Acquisition of City-Owned Property ("Old Treatment Plant Site") by U.S. Corps of EngineersOctober 14, 1991 CITY COUNCIL AGENDA ITEM NO. F-9 (a ) BY THE CITY COUNCIL CITY OF NEWPORT BEACH OCT 1 4 1991 TO: City Council FROM: Public Works Department 8t SUBJECT: ACQUISITION OF CITY -OWNED PROPERTY ("OLD TREATMENT PLANT SITE") BY U.S. CORPS OF ENGINEERS DISCUSSION: On September 30, 1991, the U.S. Corps of Engineers accepted the City's counter-offer to sell to the Federal Government the 7.28 acre "old treatment plant site" for $1,100,000. The counter-offer was authorized by the Council on September 23, 1991. The action concludes a process begun nearly 2 years ago, when the Corps commenced land acquisition for the Santa Ana River Flood Protection Project, and for the associated marsh restoration project. The initial Corps appraisal and offer were for a price of $610,000. (It is worth mentioning that the market value of the parcel is severely limited by access constraints and by potential wetlands constraints.) Through a process of acquisition has been completed litigation between two public attached copy of the September detail. Benjamin B. Nolan Public Works Director BBN:so Attachment negotiation and re -appraisal, the without the need for condemnation agencies. Please refer to the 23 Council memo for additional TO: City Council FROM: Public Works Department SUBJECT: SANTA ANA RIVER MAINSTEM ACQUISITION OF CITY -OWNED TREATMENT PLANT SITE) BY RECOMMENDATIONS: September 23, 1991 CITY COUNCIL AGENDA ITEM NO. F-11 FLOOD CONTROL PROJECT PROPERTY (OLD SEWAGE U.S. CORPS OF ENGINEERS 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). A P P R V rD BY C[11 �' COUNCIL. DATE, 9- 23- I / Subject: Santa Ana River Mainstem Flood Control Project Acquisition of City -owned Property (Old Sewage Treatment Plant Site) by U.S. Corps of Engineers September 23, 1991 Page 2 While the later offer is still substantially less than the City's appraisal of $1,300,000, the staff feels it would be desirable to attempt to achieve a compromise negotiated settlement in an effort to avoid the need for condemnation litigation 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. 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 900S7.2025 R E 1'I.v T,) AT T E'Jl ,ON 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 41 Dear Mr. Nolan: { .I 1 SEP 1 2 1 J 91 a 1 �1 Nt ty� CALIFJ~r;i 8 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, s a`ylor .Chi Real Estate Division Enclosures t� sue' i ,• .,r /_fI f'. ,in,,, w. .� k.- l.: a , t. �J+' � � u,y,nn.:.i ,� a.a• +, i `...n �,- y!• �.� � Y 3 +'Gi.•k •.k�' ".� �..♦•- 'y �'�k. W6, � i. s � t 1 '' •. S�K...� ' ef:. �,.v.�• a'd g4 �: y,.. ti � W/„ � W "pa�ssb.iy C ^� �• ram" �� �� ,�4..� . - ro y y.�.d7 X�,W 37 �• kJ� Or. e .rr%.. J � 1 .__..�� �y... ..�•''•'•�w'r^fr- ,JAa•..nJr. PACIFIC COAST IiICiHV,AY,_`� ♦` C"" —�` ' . • f i i _ R.• _ iw°",'• �`•. • "r'.•'vy-y • al..���;,� r- ` Q ♦ ' Y .' p� of 1 jJ LEAST TERN RESERVE AREA HIiwTINpTpr� gcAC1-� £ ♦Cs: r9 �: ""tea, nt. u ca <--cc 'LLB y �� ��� ►1 ;;.�� V GE ACi I b ' �• ,, • .Tk� n - .i.Ltfys:-gyp- �%,`'y_: PHOTO 1: LOOCIN'G UPSTREAM FROM MOUTH, LEAST TERN NESTING COLONY TO THE LEFT OF TALBERT CHANNEL. F�p,T o; CIYY OF NEWPORT BEACH �`• p .� _-� x I>1ii11.IC' \�'C)ftli:; DI:.1'ARA f.Al c `�" • �� I'.O. 13o\ 1708• \Ewl'OIZ'( 131 :�C'Fl, CA 92659-1768 qC/FOwZ� (714) 04-1 3311 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. 101-sand 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 $1,100,000. This letter of intent does not constitute the counter-offer. There are several minor technical matters in the Government offer which, the City desires to modify, in addition to the change in the purchase price. A counter-offer will be prepared by the City and submitted to you as soon as practical. We wish to cooperate with your desire to acquire possession of the property by September 30, 1991. 4e�tm rulYAK in an Public Works Director BBN:so xc: City Manager City Attorney 3300 Newport Boulevard, Newport Beach City Clerk Deed No. K-MT63 Recorded at the request of FIRST AMERICAN TITLE INS. CO. a. GO P.M.M. APR 151992 Official Records range County. C lifornia e2. Recorder When Recorded - Return To: Commander Los Angeles District Corps of Engineers P _ 0 . Box 2711 Los Angeles, California 90053 ATTN: Joyce Fredholrn (213) 894-0504 CESPL-RE-L 11, Mail Tax Statements To The Commarder It RECEIVED JUL 1 1992 CITY CLERK REWPM T BEACH \t GRANT DEED (Deed to a Tax Exempt _ - Documentary Stamps Not =r ���� c�c� 1a� Required) j �.2 c-o�lC // �r 2- z 6 ro 3 r �' �6- � uo Q IN CONSIDERATION OF THE SUM OF EIGHT HUNDRED NINETY THOUSAND AND NO/100 DOLLARS ($B90,000.00), the receipt and sufficiency of which is hereby acknowledged, The City of Newport Beach hereby grant (or grants) to the UNITED STATES OF AMERICA and its assigns the real property in the County of Orange, State of California, as described as TRACT: 101 ACREAGE: 5.79- OWNER. CITY OF NEWPORT BEACH, a municipal corporation of the sixth class PROJECT: 14ARSH RESTORATION AREA, Santa Ana River Mainstem Project LOCATION, Orange County, California Tract 101, Marsh Restoration Area, Santa Ana River Mainstem Proj. (cont'd) DESCRIPTION THAT CERTAIN REAL PROPERTY, in the County of Orange, State of California, situate in Lot B of the Banning Tract, in a portion of the Rancho Santiago de Santa Ana as shown on a map filed in March of 1890 as an exhibit in the case of Hancock Banning, et al, vs. Mary H. Banning, being Decree of Partition Case No. 6385 of Superior• Count of California in and for Los Angeles County, further described as follows: BEGINNING at the most southerly corner of that certain Parcel I described in Finial Judgment in the case of City of Newport Beach vs. Townsend Land Company, et al, being Court Case No. 34747 of Superior Court of California in and for Orange County, said Judgment being decreed and recorded 20 August 1937 as Document No. 24769 in Book 910, Pages 19-20-21, of Official Records in the office of the County Recorder of Orange County (said judgment hereinafter called "0R910/19'); THENCE northwesterly along the southwesterly boundary of said Parcel I, North 76037' 56" West (Record North 76035' West per OR 010/19), 382.12 feet, more or less, to a point lying southeasterly along said southwesterly boundary 277.88 feet from the most westerly corner of said Parcel I; THENCE, leaving said parcel boundary, North 130 24' 01' East, 660 feet, more or less, to intersect the northeasterly boundary of said Parcel I at a point lying southeasterly along said northeasterly boundary 278.26 feet from the most northerly corner of Parcel I; THENCE southeasterly along the northeasterly boundary of said Parcel I, South 760 37' 56" East (Rec. South 76)35' East per OR910/19), 381.74 feet, more or less, to the most easterly corner of parcel I; THENCE southwesterly along the southeasterly boundary of said Parcel I, South 130 22' 04" West (Rec. South 11 25' West per OR910/19), 660 feet, more or less, to the POINT OF BEGINNING; and containing 5.79 acres of land, more or less; AND THE BASIS OF BEARINGS for the description above being the same as for that map filed 18 July 1963 as Document No. 16712 in Book 65, Pages 31 through 36, inclusive, of Records of Survey of Orange County. N Tract 101, Marsh Restoration Area, Santa Ana River Mainstem Proj_ (cont'd) Together with all buildings and improvements thereon, and all right, title, and interest of the Grantor in the banks, beds, and waters of any streams bordering said land; and in alleys, roads, streets, ways, strips, gores, or railroad right-of-way abutting or adjoining said land; and in any meads of ingress or egress appurtenant thereto_ The vendor reserves only the following rights and interests in the above -described property (namely): All oil and gas and all other minerals in and under said land and all appurtenant rights used in connection with the exploration, development, production, and removal of said oil and gas and all other minerals, provided however that the said oil and gas, all other minerals, and appurtenant rights so excepted and excluded are hereby subordinated to the rights of the UNITED STATES as may be necessary in the construction, operation, and maintenance of the Santa Ana River Mainstem Flood Control Project, for restoration and preservation of wetlands, environmental mitigation, channel widening, and flood control purposes; and provided that the exploration and/or development of said oil and gas and all other minerals shall be subject to the prior written approval of the District Engineer, U.S. Army Engineer District, Los Angeles, California, or his duly authorized representative or assigns. The right of nonexclusive ingress and egress on, over, and across that certain 30-foot wide easement as shown in the Final Judgment, recorded in book 910, page 19, of Official Records in the Recorder's Office, County of Orange, State of California, and appurtenant easements as described in quitclaim deed recorded as document 83-151675 of Official Records in the Recorder's Office, County of Orange, State of California; together with the right to grade, surface, and maintain access roads within said easements; and together with the right to operate, maintain, and replace pipe lines within said easements. The said land has been designated Tract 101 of the Santa Ana River Mainstem Flood Control Project in the records of the U-S. Army Engineer District, Los Angeles, California, 300 North Los Angeles Street, Los Angeles, California 90053_ The said Grantor for itself and its assigns do hereby covenant with the Grantee and its assigns that it is lawfully seized of the premises aforesaid, and that they will warrant generally the title thereto and will defend the same against the lawful claims and demands of all persons whomsoever- 3 OFFICIAL SEAL <� E;ar<' • SNnUM, li'11 OYIER © NOTARY PUGLIC CALIFORNIA ORANGE CX'JY ,F a . My Comm. Exaires Jc.t 16.1993 Tract 101, Marsh Restoration Area, Santa Ana River Mainstem Prof. (cont'd) THIS CONVEYANCE IS MADE SUBJECT TO existing easements for public highways, public roads, public utilities, railroads, pipelines, covenants, conditions and restriction of record, and to any water rights, claims, or title to water on or under said land_ Executed this _d a y of (SEAL) '�'� mom/ St.at.F of STATE OF CALIFORNIA ) ss: COUNTY OF ORANGE ) Robert L _ Wirnn City Manager City of Newport Beach On December 23 , 1991, before me, the undersigned, a Notary Public in and for the State, personally appeared Robert L. Wynn , known to me to be the City Manager of the City of Newport Beach, known to me to be the person whose name is subscribed to the within instrument, and acknowledged to me that he executed the same. WITNESS my hand and official seal. lotary Public in any for sa d State 4 I;, c l Of. -, N i {n t- 00 E c n C ---I t ', L,J <j r_r CL of F-.J [2' Z Cl `j CEO r`! r J� c_. Ll J . i Lai J I _} L7 cr I_iJ Ld ff I—' CL r1 LL PARCEL D3 121A OR I t_. 4-1 r• ; or�.wxcwwn,,..u�� om�aa �.aagw 10 O 10 100 200 300 SCALE IN FEET '�-a_I f V EY W AP F I L L, -'1T B C,fJ K 65, REt.t)RD'S (if CC.li..lt.M' I.1F O(-'.A[-,K7;F C'EPAMMENT OF "1-11E AfI,.(Y U.S.. ARMY EN INUR DIST3,IID1, LOS AN+--EIES SOUTH PAf--:iFIC ONISION MARSI-1 RESTORNTION A,REA Lue,-er Santa sno F:nvsr Irnpr c"n>rnents fa�nport Beach, Gal-d rnia 1 } A 1T 1 f)1 AND CERTIFICATE OF ACCEPTANCE This is to certify that the interest in real property conveyed by the deed dated December 23, 1991, from the City of Newport Beach to the United States is hereby accepted by order of the undersigned officer of the U.S. Army Corps of Engineers, Los Angeles District, and the grantee consents to recordation thereof by its duly authorized officer. DATED��'��L�-- By VIRGIL . TAYLOR Chief, Real Estate Division Los Angeles District U.S. Army Corps of Engineers DEPARTMENT OF THE ARMY LOS ANGELES DISTRICT. CORPS OF ENGINEERS P.O. BOX 2711 LOS ANGELES. CALIFORNIA 90053-2325 June 12, 1982 IitYLY I ATTENTION OF: Via Express Mail John Wolter City of Newport,Beach Public Works Department 3300 Newport Beach Blvd Dear Mr. Wolter, 1._ 01 C ql�ftyl, 199Z ® tUl pry u, 1 ��+;y��A� ('�. 1 A - i Enclosed is a an original Grant Deed for the land to be conveyed to Orange County Flood Control District, also known as tract 107. Please note that I have made the minor changes that you requested over the telephone. Also I have included a map, as part of Exhibit A to clarify the parcel in question. Also enclosed is a copy of the Grant Deed that was conveyed to the United States Government, our tract 101. Thank you very much for all your assistance in getting this document executed. Please use the enclosed envelope to return this document. If you -have any questions please call me at (213)894-4530. Sincerely, Aobert W. Colange o Chief, Legal Branch