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HomeMy WebLinkAboutItem 31 - Real Property Acquisition for Warner Avenue Street ImprovementsPublic Works Agency www.santa-ana.org/public-works Item # 31 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report January 17, 2023 TOPIC: Real Property Acquisition for Warner Avenue Street Improvements AGENDA TITLE Public Hearing: Adopt a Resolution Authorizing the Condemnation of the Entire Real Property Located at 2245 South Halladay Street (APN 016-105-19), Owned by Kenneth A. Steele and Ana Steele, Husband and Wife as Joint Tenants, Declaring the Public Necessity and Interest Thereof (Project No. 18-6901) (Non -General Fund) RECOMMENDED ACTION Adopt a resolution authorizing the condemnation of the entire real property located at 2245 South Halladay Street (APN 016-105-19), owned by Kenneth A. Steele and Ana Steele, Husband and Wife as joint tenants, declaring the public necessity and interest thereof. (Requires five affirmative votes) DISCUSSION Warner Avenue is classified as an East-West Major Arterial in the City's General Plan Circulation Element and the County of Orange Master Plan of Arterial Highways. Improving the one -mile segment of Warner Avenue from Main Street to Wright Street has been a long-term priority project, constructed in several phases. Improvements include widening the street from a four -lane roadway to a six -lane arterial, to address safety issues and provide adequate vehicular capacity. Also included in the project is the installation of parkways, raised median landscaping, storm drains, protected bike lanes, sound walls, street lights, and traffic signals. The City is acquiring properties for the development of Phase 2 of the Warner Avenue Improvements Project, bounded by Oak Street and Grand Avenue. Construction is anticipated to begin in summer 2023. To accommodate these improvements, acquisition of the parcel at 2245 South Halladay Street is required (Exhibit 1). The Public Works Agency has made a diligent effort to negotiate with owner's Kenneth A. Steele and Ana Steele, Husband and Wife as joint tenants. A good faith offer was made on November 15, 2022, in the amount of $530,000 (Exhibit 2). The Public Works Agency has made, and will continue to make, every effort to reach a settlement with the property owner. However, to maintain the Warner Avenue Improvements project schedule and meet the funding requirement to commence construction in summer 2023, staff is requesting the adoption of a Resolution of Real Property Purchase Agreement: Warner Avenue Improvements, Phase 2 January 17, 2023 Page 2 Necessity (Exhibit 3) and initiation of condemnation proceedings while negotiations continue. ENVIRONMENTAL IMPACT On September 1, 2015, the City Council approved the Warner Avenue Final Environmental Impact Statement (SCH No. 2012101004). FISCAL IMPACT Funds in the amount of $530,000 are budgeted and available in the Warner Avenue Improvements Project (No. 18-6901) for property acquisition expenditures in FY 2022- 23 as follows: Fiscal Accounting Accounting Unit, Year Unit —Account Fund Description Account No. Amount No. Description 2022-23 03217663-66100 Measure M- Measure M2 Competitive $397,500 Street Construction Street, Land Select Street Warner Ave -Tustin 2022-23 05917668-66100 Construction Community Facilities $132,500 (City of Tustin District, Land Contribution) TOTAL $530,000 EXHIBIT(S) 1. Location Map 2. Offer Letter 3. Resolution of Necessity Submitted By: Nabil Saba, P.E., Executive Director — Public Works Agency Approved By: Kristine Ridge, City Manager EXHIBIT 1 z Z I i 016-090-26 I MONROE ELEMENTARY i I 016-090-25 (NATIONAL GUARDI ARMORY ------------------ I j i I i I 016-090-24 NATIONAL GUARDI LLJ j ARMORY I I Q I : IY LLJ I I Q N016-090-21 ATIONAL GUA 3.1 ARMORY , 016-090-22 DELHI PARK *1"I ► by KILSON DR HICKORY ST MATCHLINE SEE TOP RIGHT —SUBJECT PROPERTY —ACQUIRED PROPERTIES MATCHLINE SEE BOTTOM LEFT 016-090-22 DELHI PARK HALLADAY ST EXHIBIT 1 1016-133-441 I 016-133-33 016-133-32 I 016-133-31 HICKORY ST HALLADAY ST 16-105-19 5 S. HALLADAY SI 016-105-21 909 E. VARIER AVE CEDAR ST N I I � I I SAN T A ANA TITLE: P W A PURCHASE AGREEMENTS FOR WARNER AVENUE IMPROVEMENTS (PROJECT NO.18-6901 Fu9Llt roRlcs AGENCY NONGENERAL FUND) EXHIBIT 2 MAYOR Vicente Sarmiento MAYOR PRO TEM Phil Bacerra COUNCILMEMBERS Johnathan Ryan Hernandez Jessie Lopez Nelida Mendoza David Penaloza Thai Viet Phan November 15, 2022 CITY OF SANTA ANA PUBLIC WORKS AGENCY 20 Civic Center Plaza, M-36 • P.O. Box 1988 Santa Ana, California 92702 www.santa-ana.org Kenneth A. Steele and Ana Steele PO Box 9598 Laguna Beach, CA 92652-7564 SUBJECT: UPDATED OFFER TO ACQUIRE PROPERTY AT: 2245 S. Halladay Street Santa Ana, CA 92707 APN: 016-105-19 Dear Kenneth A. Steele and Ana Steele: CITY MANAGER Kristine Ridge CITY ATTORNEY Sonia R. Carvalho CLERK OF THE COUNCIL Via certified mail The City of Santa Ana ("City") is proceeding with its plans to construct the Warner Avenue Improvement Project — Phase 2 between Oak Street to Grand Avenue. The City obtained a preliminary title report that lists Kenneth A. Steele and Ana Steele, husband and wife as joint tenants, as vested owners, Attachment 1. The City seeks to acquire the property located at the above -mentioned address, which consists of the underlying real property as described in Attachment 2. The area to be acquired is referred to herein as the "Property". No final determination has been made as to the ownership of the Property. This offer is contingent upon presentation of conclusive evidence of title. If more than one person has an interest in the Property that the City is seeking to acquire, all parties with such interest must accept this offer. As you know, the City had your Property appraised to determine its fair market value. The appraisal was conducted in accordance with commonly accepted appraisal standards and included consideration of the highest and best use of the land. Based on the appraisal, the City offers a total compensation of Five Hundred Thirty Thousand Dollars $530,000. SANTA ANA CITY COUNCIL Vicente Sarmiento Phil Bacerra Thai Viet Phan David Penaloza Jessie Lopez Johnathan Ryan Hernandez Nelida Mendoza Mayor Mayor Pro Tern Ward 4 Ward 1 Ward 2 Ward 3 Ward 5 Ward 6 vsarmientono Santa-ana.oro obacerraano santa-ana.ora tohan(o)santa-ana.ora doenalozano Santa-ana.ora iessielooez(a)santa-ana.ora irvanhernandez(cbsanta-ana.ora nmendoza(a)santa-ana.oro 2245 S. Halladay Street, Santa Ana, CA 92707 November 15, 2022 The basis for this offer is explained more thoroughly in the attachments to this letter that are made a part of this offer by reference. This offer is conditional upon the City Council ratifying this offer by a formal action taken at a regular public meeting authorizing the execution of a Purchase and Sale Agreement or adopting a Resolution of Necessity, or both. If you are not satisfied with the City's offer, you are encouraged to present to us any material you believe to be relevant to the value of the Property, which material will be carefully considered by the City. If, in the City's opinion, the additional information warrants a change in the offer, the City's offer will be adjusted accordingly. If a voluntary agreement cannot be reached, the City may consider formal condemnation proceedings against the Property through its power of eminent domain or abandon its intention to acquire the Property, giving proper notice to you in either event. The City has made no decision to exercise its power of eminent domain to acquire the Property and can only do so after it holds a hearing, at which all affected Property owners have had an opportunity to appear and be heard. The Purchase Price is the full amount established by the appraisal as the fair market value of the Property and the just compensation for such acquisition. A written statement and a summary of the basis for the amount established as the Purchase Price is set forth in the attached Statement of Just Compensation, identified as Attachment 3. The California Relocation Assistance and Real Property Acquisition Guidelines provides that each Owner from whom the City purchases real property or an interest therein, or each tenant owning improvements on said Property, be provided with information relating to the acquisition procedures, as also stated in the CA Government Code, Paragraph 7267.2(a). This information is provided in Attachment 4. Please also be advised that under Code of Civil Procedure Section 1263.025, the City of Santa Ana will reimburse an owner of property, up to the amount of $5,000 for the owner to secure an independent appraisal of property subject to a potential acquisition. Although you have the right to obtain your own appraisal and are entitled to receive up to $5,000 for your appraisal as described above, please note that the City of Santa Ana is not obligated to accept your appraiser's value of the Property Interest. The City of Santa Ana, however, will review your appraisal and if appropriate, confer with the City's independent appraiser regarding the merits of your appraisal. If you wish to take advantage of this reimbursement, please forward to the undersigned a copy of the paid invoice from an appraiser. In order to qualify for this reimbursement, the appraiser selected must be identified and must be a California Certified General Real Estate Appraiser in good standing. In addition, the copy of the paid invoice must be submitted to the undersigned no later than ninety (90) days following the date of this letter. The City reserves the right to contact the appraiser to verify that payment has been made and in what amount, prior to approving any request for reimbursement. Please let us know prior to December 20, 2022 if the City's offer is acceptable. A written agreement concerning the acquisition of the Property will be provided to you for your review and approval. 2245 S. Halladay Street, Santa Ana, CA 92707 November 15, 2022 If for any reason you should see fit not to accept the City's offer, please be advised that this letter, the offer made herein, the enclosed summary statements, and all matters stated herein are made under the provisions of California Evidence Code §§1152 and 1154 and shall not be admissible in evidence in any eminent domain proceeding which may subsequently be instituted for acquisition of the Property, or in any other action. If you need additional information, please call the City's acquisition consultant, Daniela Borbe, Project Manager from Monument Inc. via email: dborbe(a-)monumentrow.com or phone: (562) 755-4297. Sincerely, Jason Gabriel, P.E. Principal Civil Engineer EXHIBIT 3 RESOLUTION NO. 2023-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA FINDING AND DETERMINING THAT THE PUBLIC INTEREST, CONVENIENCE, AND NECESSITY REQUIRE THE ACQUISITION OF CERTAIN REAL PROPERTY LOCATED WITHIN THE CITY OF SANTA ANA AT 2245 SOUTH HALLADAY STREET (APN NO. 016-105-19) FOR THE WARNER AVENUE IMPROVEMENTS PROJECT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. On January 17, 2023, the City Council of the City of Santa Ana, after written notice duly provided to all those claiming ownership in the property described hereafter, as they appeared on the last equalized County assessment roll, held a hearing pursuant to California Code of Civil Procedure section 1245.235 for the purpose of allowing the owners thereof a reasonable opportunity to be heard on the following matters: A. Whether the public interest and necessity requires the project described above ("Project"); B. Whether the Project is planned or located in a manner which is most compatible with the greatest public good and the least private injury; C. Whether the property proposed to be acquired is necessary for the Project; D. Whether the offer required by California Government Code section 7267.2 has been made; E. Whether the City has complied with all conditions and statutory requirements necessary to exercise the power of eminent domain to acquire the property described herein, as well as any other matter regarding the right to take said property by eminent domain; and F. Whether the City has statutory authority to acquire the property by eminent domain. Section 2. The City Council has, as a result of its consideration and the evidence presented at the hearings on this matter, and in accordance with the California Environmental Quality Act ("CEQA") and the State CEQA Guidelines, determined that the proposed project has been adequately evaluated in the previously prepared Final Environmental Impact Report (SCH No. 2012101004). On the basis of this review, the City Council finds that there is no evidence from which it can be fairly argued that the Project will have a significant adverse effect on the environment. Resolution No. 2023-XXX Page 1 of 4 Section 3. Pursuant to Title XIV, California Code of Regulations, section 753.5(c)(1), the City Council has determined that, after considering the record as a whole, there is no evidence that the Project will have the potential for any significant adverse effect on fish and wildlife. The Project exists in an urban environment characterized by paved concrete, roadways, surrounding buildings and human activity. Therefore, the payment of Fish and Game Department filing fees is not required in conjunction with this Project. Section 4. The City of Santa Ana hereby finds and determines each of the following: A. The public interest and necessity require the proposed Project. B. The proposed Project is planned or located in the manner that will be most compatible with the greatest public good and least private injury. C. The Property located at 2245 South Halladay Sreet (APN No. 016-105- 19), as described in Exhibit A, is necessary for the Project. D. The offer required by Section 7267.2 of the California Government Code was made. Section 5. The City hereby finds, determines and declares that the public interest, convenience, and necessity require the acquisition by the City of the property described in Section 4 above, including any and all leaseholds and related improvements, for the purposes of Phase 2 of the City's Warner Avenue Improvements Project. The location of the Project is between Oak Street and Grand Avenue for the widening of Warner Avenue. Included in the Project will be street pave -out, and the installation of concrete curbs, gutters, and sidewalks in a manner which will be most compatible to the greatest public good and the least private injury. Section 6. The taking of the interest in the property described in Section 4 above is necessary for the public right of way and is authorized by Section 19 of Article I of the California Constitution; Section 200 of the Santa Ana Charter; Santa Ana Municipal Code section 41-781; California Code of Civil Procedure sections 1240.010, 1240.110; California Government Code sections 37350.5 and 40404; California Streets and Highways Code sections 5101, 5101.5, 5102; and other applicable law. Section 7. The City hereby declares that it is the intention of the City of Santa Ana to acquire in its name, in accordance with the provisions of the laws of the State of California with reference to condemnation procedures, all interests in and to the property described in Section 4 above. Section 8. If any of the property described in Section 4 above has been appropriated for some public use, the public use to which it is to be applied and taken under this proceeding is a more necessary and paramount public use. Resolution No. 2023-XXX Page 2 of 4 Section 9. The property described in Section 4 above is located within the City of Santa Ana, County of Orange, State of California, and is more particularly described in Section 4 hereof. Section 10. The City of Santa Ana is authorized to acquire by eminent domain as provided in the California Code of Civil Procedure. Section 11. The City Attorney is hereby authorized and directed to prepare, institute and prosecute in the name of the City such proceedings, in the proper court having jurisdiction thereof, as may be necessary for the acquisition of the interests in the property described in Section 4 above. The City Attorney is also authorized and directed to obtain a necessary order of immediate possession and occupancy of such property, at the discretion of the City Attorney. Section 12. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of )2023. Valerie Amezcua Mayor APPROVED AS TO FORM: Sonia A. Carvalho, City Attorney By: John M. Funk Chief Assistant City Attorney AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: Resolution No. 2023-XXX Page 3of4 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Norma Orozco, Acting Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2023-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana Resolution No. 2023-XXX Page 4 of 4 EXHIBIT A LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN IS SITUATED IN COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:: LOT 11, IN BLOCK R OF TRACT NO. CITY OF SANTA ANA, COUNTY OF SHOWN ON A MAP RECORDED MISCELLANEOUS MAPS, RECORDS 668, MCFADDEN TRACT NO.5, IN THE ORANGE, STATE OF CALIFORNIA, AS IN BOOK 20, PAGE 5 OF OF ORANGE COUNTY, CALIFORNIA. EXCEPT THEREFROM ALL OIL, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES, LYING BELOW A DEPTH OF 500 FEET FROM THE SURFACE OF SAID PROPERTY, BUT WITH NO RIGHT OF SURFACE ENTRY, WHERE THEY HAVE BEEN PREVIUSLY SHOWN IN VARIOUS INSTRUMENTS OF RECORD. Assessor's Parcel Number: 016-105-19 I P I • - .iC/Qb77pNN ci) 0�2 ------------------ b � � i I E � ry\ E'A�.v.s...--- E 7j �, 133E�1 S .i.'JOJV:JIH °y ll i _ E I / I _ i•r � i (7t�{ _7AAW7 NpS7AI - - - - - -- — -- - ---- a\ I� N O' � N), C� C.i J ; j �• � CC� � 1 N _C� I �j� l'Nr •`? �`�1 f�1 ' M i ll din /�1 � a � I 'm� �°'�� •' J° t ! FI a I ' r ' J � 13.�211 S .4Y0 3: I I I I 1 I t_ I ----- *-._! n t .3 � 13�t!SS �77-a.SSl7pb' � r"—__...�_--------------------------- >b I This map/plat is being furnished as an aid in locating the herein described Land in relation to adjoining streets, natural boundaries and other land, and is not a survey of the land depicted. Except to the extent a policy of title insurance is expressly modified by endorsement, if any, the Company does not insure dimensions, distances, location of easements, acreage or other matters shown thereon. F 2