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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 3, 2013 <br />TITLE: <br />SETTLEMENT AGREEMENT WITH LA <br />ESTRELLITA FOR GRAND AVENUE <br />WIDENING (PROJECT NO. 1732 <br />NONGENERAL FUND <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1S` Reading <br />❑ Ordinance on 2 I Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and Clerk of the Council to execute a settlement agreement with La <br />Estrellita Novelties, tenant of the property located at 208 North Grand Avenue, Unit A (APN 398- <br />453-06), in the amount of $12,962 for the value of the loss of business goodwill, subject to <br />nonsubstantive changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />Grand Avenue is a north -south transportation facility which is designated as a major arterial <br />highway, and carries in excess of 35,000 vehicles per day. The widening of Grand Avenue <br />between First and Seventeenth Streets has been a long -term priority project that will be <br />constructed in several phases. Improvements include the widening of the roadway from two to <br />three lanes in each direction; construction of raised landscape medians; new curb, gutter, and <br />sidewalk; and inclusion of bike lanes. The Public Works Agency is acquiring property for <br />development of Phase I, bounded by First and Fourth Streets, and expects to complete the <br />acquisition process by September 2013. Construction is anticipated to begin by early 2014. <br />The Uniform Relocation Act obligates the City to relocate tenants of the properties acquired for the <br />widening of Grand Avenue, and sets standards for benefit amounts. As part of the relocation <br />process, La Estrellita, the tenant at 208 North Grand, Unit #A (Exhibit 1), must be paid for the loss <br />of goodwill, due to the relocation of the business to its replacement site at 1322 North Grand <br />Avenue, Santa Ana, CA. Compensation in the amount of $12,962 is the value for the loss of <br />business goodwill as reviewed by an appraiser licensed by the State of California. <br />ENVIRONMENTAL IMPACT <br />In accordance with the California Environmental Quality Act, the proposed project has been <br />determined to be adequately evaluated in the previously prepared Final Environmental Impact <br />Report (SCH No. 1998051068) approved by the City Council in 2002. In accordance with the <br />25G -1 <br />