25C - AGMT - SETTLEMENTS FOR GRAND AVE WIDENING

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Settlement Agreements for Grand Avenue Widening October 1, 2012 Page 2 DISCUSSION Grand Avenue is a major north-south transportation facility, which is designated as a major arterial highway and carries in excess of 35,000 vehicles per day. The widening of Grand Avenue between First and Seventeenth Streets has been a long-term priority project that will be constructed in several phases. Improvements include the widening of the street from two to three lanes in each direction; raised landscape medians; curb, gutter, and sidewalk construction; and bike lanes. The Public Works Agency is acquiring property for Phase I between First and Fourth Streets, and expects to complete the acquisition process by June 2013 and start construction in the summer of 2013. The Uniform Relocation Act obligates the City to relocate tenants of the properties acquired for the widening of Grand Avenue, and sets standards for benefit amounts (Exhibit 1). The tenants at 204, 208, 218 North Grand Avenue and at 1221 East First Street Unit D have agreed to the settlement amounts above. These settlement agreements are for all rights, title, and interest, including fixtures and equipment. Additionally, the project necessitates the full acquisition of 1225 East Fourth Street for a settlement amount of $300,000. The compensation amounts for these properties are the appraised values prepared by an appraiser licensed by the State of California. The project also necessitates the full acquisition of 202 North Grand Avenue. Negotiations for the acquisition are ongoing. However, several tenants, including those listed above at 204, 208, and 218 North Grand Avenue, have begun to receive relocation benefits and to move. The loss of rent agreement between the City and the property owner ensures that when tenants move, the City will compensate the property owner for the amount of rent and, in turn, these units will not be rented, forcing the City to pay for additional relocation benefits. ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the proposed project has been determined to be adequately evaluated in the previously prepared FEIR (SCH No. 1998051068) approved by City Council in 2002. 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. 1 25C-2