Title
Final Passage of Ordinance Authorizing the City Manager to: (1)Execute a Memorandum of Understanding, Quitclaim Deed and All Other Necessary Documents Between the City of Alameda and the United States of America Acting By and Through the U.S. Army Corps of Engineers to Acquire 94 Parcels of Semi-Submerged and Submerged Land On the Alameda Side of the Oakland Inner Harbor Tidal Canal (“Tidal Canal”); (2) Execute Purchase and Sale Agreements, Quitclaim Deeds and All Other Necessary Documents Between the City of Alameda and Various Purchasers to Sell Approximately 92 Parcels on the Tidal Canal at Fair Market Value. A Draft Negative Declaration has been prepared for the proposed actions consistent with the California Environmental Quality Act (CEQA). (Requires 4 affirmative votes) (Community Development)
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CITY OF ALAMEDA ORDINANCE NO. ____
New Series
AUTHORIZING THE CITY MANAGER TO: (1) EXCUTE A MEMORANDUM OF UNDERSTANDING, QUITCLAIM DEED AND ALL OTHER NECESSARY DOCUMENTS BETWEEN THE CITY OF ALAMEDA AND THE UNITED STATES OF AMERICA ACTING BY AND THROUGH THE U.S. ARMY CORPS OF ENGINEERS TO ACQUIRE 94 PARCELS ON THE ALAMEDA SIDE OF THE OAKLAND INNER HARBOR TIDAL CANAL (‘TIDAL CANAL”) AND (2) EXECUTE PURCHASE AND SALE AGREEMENTS, QUITCLAIM DEEDS AND ALL OTHER NECESSARY DOCUMENTS BETWEEN THE CITY OF ALAMEDA AND VARIOUS PURCHASERS TO SELL APPROXIMATELY 92 PARCELS ON THE TIDAL CANAL AT FAIR MARKET VALUE
WHEREAS, the U.S. Army Corps of Engineers (the “Corps”) excavated, dredged, and created the Oakland Inner Harbor Tidal Canal (the “Tidal Canal”) between 1882-1905, which is a waterway approximately 1.8 miles long and 400 feet wide and connects the Oakland Estuary with the San Leandro Bay from approximately 1,800 feet northwest of the Park Street Bridge to approximately 2,300 feet south of High Street Bridge. The Corps has retained fee title ownership of the Tidal Canal since its creation. The southern edge of the Alameda side of the Tidal Canal now includes uplands and bulkheads that have been utilized to varying degrees by adjacent private property owners; and
WHEREAS, in 1990, the U.S. Congress authorized the Corps to transfer the Tidal Canal at no cost to the cities of Alameda and Oakland through the Water Resources Development Act (“WRDA”) of 1990, as amended by WRDA 1996, 2007, and 2014; and
WHEREAS, starting in 2000, the Corps instituted a moratorium on issuing regulatory permits or real estate licenses for any repairs, upgrades, improvements or new construction along the Tidal Canal, with the exception of emergency repairs, (the “Permitting Moratorium”) to encourage the City of Alameda (the “City”) to accept the Alameda side of the Tidal Canal. The Permitting Moratorium has prevented repairs and improvements to existing structures along the waterfront, which has negatively affected adjacent property owners and has limited the City’s ability to enforce code requirements along the Tidal Canal; and
WHEREAS, the Corps has agreed to take all reasonable steps necessary to effectuate the transfer, including filing a tentative map application under the Subdivision Map Act (CA Gov. Code §§66410-66413.5) to divide the Tidal Canal into approximately 105 individual parcels to facilitate the transfer to the City and the immediate subsequent transfer of portions of the Alameda side of the Tidal Canal to certain adjacent property owners. The Corps also has agreed to lift the Permitting Moratorium on the Alameda side of the Tidal Canal once the property is transferred out of federal ownership; and
WHEREAS, pursuant to the WRDA as amended, the Corps desires to convey (at no costs) fee title to 94 parcels on the Alameda side of the Tidal Canal through execution of a Memorandum of Understanding (“MOU”) and a Quitclaim Deed (“Army Deed”) to the City; out of the 99 lots, the Corps desires to transfer Parcels 2 and 4 through 96 to the City (the “Transferred Property”) and to reserve and retain ownership of Parcels 1 (Oakland side of the canal), 3 (property adjacent to the federally-owned Navy Operational Support Center), and 103 through 105 (footings for the High Street Bridge, the Miller-Sweeney Bridge and the Fruitvale Rail Bridge and the Park Street Bridge) as depicted in the Tentative Map; and
WHEREAS, the City is authorized and empowered to enter into agreements for the acquisition and disposition of real property in the City of Alameda; and
WHEREAS, Article XVI of the California Constitution prohibits the City prohibits the City from selling property for less than its fair market value as such would be a gift of public funds; and
WHEREAS, the City has obtained an appraisal report from Watts, Cohn and Partners, Inc. a licensed appraisers who determined the fair market value of the Transferred Property and the City intends to dispose of the Transferred Property at its fair market value; and
WHEREAS, an application was made on June 1, 2016, by City staff on behalf of the Corps requesting approval to subdivide105 lots out of the approximately 85-acre Tidal Canal; and
WHEREAS, on June 1, 2016, the City published a Draft Initial Study/Negative Declaration (“IS/ND”) for the OIHTC Project in accordance with the California Environmental Quality Act (“CEQA”), which addresses all potential environmental impacts associated with the proposed transfer and subsequent transfers into private ownership, amendments to the E, Estuary District, and the proposed subdivision map application; and
WHEREAS, the Planning Board held a public hearing on this application on July 11, 2016 and unanimously recommended that the City Council approve the Tentative Map; and
WHEREAS, by Resolution No. _______, the City Council previously certified the Negative Declaration under the California Environmental Quality Act (“CEQA”), California Public Resources Code Section 21000 et seq. and adopted written findings.
NOW THEREFORE, BE IT ORDAINED by the City Council of the City of Alameda (“City Council”) that after hearing all qualified and interested persons and receiving and considering all relevant evidence, finds and determines as follows:
Section 1. The City Council hereby delegates to the City Manager the authority to: execute the Quitclaim Deed, substantially in the form attached hereto as Exhibit A; execute the Memorandum of Understanding substantially in the form attached hereto as Exhibit B; to execute auxiliary documents and to perform any and all acts necessary or desirable to consummate the acquisition and accept on behalf of the City the acquisition of the Army Corps’ fee title interest in the Transferred Property.
Section 2. The City Council hereby delegates to the City Manager the authority to: execute Purchase and Sale Agreements containing the price and terms for the City’s sale of individual parcels from the City to private purchasers at fair market value, substantially in the form attached hereto as Exhibit C; execute quitclaim deeds transferring the City’s fee title interest in said parcels; and to execute auxiliary documents and to perform any and all acts necessary or desirable to consummate the disposition of the City’s fee title interest in portions of the Transferred Property to private purchasers at fair market value.
Section 3. If any portion, section, subsection, paragraph, subparagraph, sentence, clause, phrase or application of this Ordinance is held invalid or inapplicable by a final judgment of a court of competent jurisdiction, such decision shall not affect the validity or applicability of any other part of this Ordinance.
Section 4. This Ordinance shall be in full force and effect from and after the expiration of thirty (30) days from the date of its final passage.
_________________________
Presiding Officer of the Council
Attest:
_____________________
Lara Weisiger, City Clerk
Exhibits A, B, and C
(SEE ATTACHMENTS)
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I, the undersigned, hereby certify that the foregoing Ordinance was duly and regularly adopted and passed by the Council of the City of Alameda on the 4th day of October, 2016, by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official seal of said City this 5th day of October, 2016.
Lara Weisiger, City Clerk
City of Alameda
APPROVED AS TO FORM:
______________________
Janet C. Kern, City Attorney
City of Alameda