HomeMy WebLinkAbout20 - Status of Negotiations for 338 Dahlia Avenue, Corona del MarCITY OF NEWPORT BEACH
OFFICE OF THE CITY ATTORNEY
June 19, 1996
TO: Mayor and Members of the City Council
FROM: Robin Clauson, Assistant City Attorney
June 24, 1996 015�
Council Agenda
Item No. 20
COUNCI
JUN 24
RE: Status of Negotiations for 338 Dahlia Avenue, Corona del Mar
City staff has discussed the purchase of the property at 338 Dahlia Avenue in
Corona del Mar with the owner since early 1992. The City is interested in purchasing the
property so that the City can stabilize the slope adjacent to the Fernleaf Ramp to protect
public property and access along Fernleaf Ramp. Staff believed it had reached a
tentative agreement with the owner of the property in September 1995, and forwarded a
letter which outlined the agreement. In April, 1996, the City Attorney wrote to the owner
asking for a response to the September, 1995 letter. To date staff has not received a
verbal or written response from the owner or his attorney.
Staff intends to continue efforts to work out a solution to remediate the slope
condition in cooperation with the property owner. However, due to the unsuccessful
nature of past negotiations, it may be in the City's best interest to consider eminent
domain proceedings to acquire the property. Eminent domain proceedings can be
summarized as follows:
Appraisal and Offer:
The City will need to first update an existing appraisal to comply with the provisions
of Section 1263.010 et seq. of the Code of Civil Procedure and related regulations. As
soon as possible after the appraisal is completed, and the fair market value of the
property is established, we can then provide the owner with a written offer. The City's
offer cannot be less than the amount of the appraisal. The appraisal must consider not
only the value of the parcel taken but also any damages for the impact on the remainder
parcel, known as severance damages. The offer must include certain information about
the appraisal, including the basis for the offer and the fact the offer does not include any
relocation benefits the owner would be entitled to receive. We must then allow the owner
an opportunity to negotiate with the City.
•1 • • --• •
If an agreement is not reached, the Council cannot file an eminent domain action
until it holds a hearing on a proposed adoption of a Resolution of Necessity. A Resolution
of Necessity requires approval by a two-thirds vote of the entire Council. If a Resolution
of Necessity is adopted, we would next prepare and file a Complaint and record a lis
pendens on the property. When the Complaint is filed the City may deposit into the Court
the amount of the fair market value established by the appraisal. After filing the
Complaint and service on the owner, the City may continue settlement negotiations
during litigation. If no settlement is reached, the owner is entitled to have a jury determine
the fair market value of the property and any severance damages.
At the same time as the City initiates negotiations to purchase the property, the
City must prepare and adopt a relocation plan and provide a copy of the plan to all
potentially eligible persons. There are detailed requirements for this plan which will
analyze all of the rights with regards to relocation benefits. The City will require the
assistance of a relocation consultant to prepare the plan and provide relocation
assistance to any persons eligible for these benefits.
This memo is intended to only summarize the detailed, complex area of eminent
domain law to give the Council an outline of the general procedures to be followed. The
City Council is entitled to meet in closed session once the updated appraisal is received
to determine whether an offer should be made to the owner of the property and if so the
amount and terms of the offer.
197 • - •- •
Direct staff to continue discussions with the property owner, obtain an appraisal to
conform to CCP 1263.010, return to Council for closed session to consider results of
appraisal and if necessary take the steps to proceed to acquisition by eminent domain.
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Robin L. Clauson,
Assistant City Attorney
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