Title
Status Report on Offer to Transfer a Portion of the Oakland Inner Harbor Tidal Canal from the Army Corp of Engineers to the City of Alameda at No Cost and Subsequent Disposition of Property. (City Attorney 7120)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Interim City Manager
Re: Status Report on Offer to Transfer a Portion of the Oakland Inner Harbor Tidal Canal from the Army Corps of Engineers to the City of Alameda at No Cost and Subsequent Disposition of Property
BACKGROUND
The Oakland Inner Harbor Tidal Canal ("Tidal Canal") is a 1.8 mile long, 400 feet wide portion of the waterway between Oakland and Alameda that was dredged in 1882 by the US Army Corps of Engineers ("Army Corps") to create a tidal effect throughout the Oakland Estuary. The Tidal Canal covers 85 acres and is currently owned by the Army Corps.
The Army Corp desires to transfer ownership of the Tidal Canal to one or more public entities at no cost and has legislative authority to do so. The Army Corps has offered to convey half of the Tidal Canal (split down the middle) to the City of Oakland and the other half to the City of Alameda. On September 2, 2014 and again on February 3, 2015, staff met with the City Council in Closed Session to discuss whether the City is interested in negotiating the transfer and if so, under what price and terms. Staff met with the City Council in open session on April 7, 2015 to allow the Councilmembers to hear public comment from the public and interested stakeholders regarding this matter.
This presentation will: (i) update the City Council and the public on the progress that staff has made since the last public session; (ii) discuss recommended next steps; and (iii) provide the City Council the opportunity to ask questions and to give further direction to staff.
DISCUSSION
Please see the attached Power Point for the presentation to be presented by City Attorney staff and outside counsel.
FINANCIAL IMPACT
It is difficult to estimate the fiscal impact to the City at this time. If the transaction is ultimately approved by the City Council, the transfer from the Army Corps to the City will be at no cost. However, to proceed with the transfer the City will have to pay the upfront transaction costs as described below.
The transaction costs associated with the survey, mapping, subdivision and immediate subsequent transfer of the residential and commercial parcels from the City to the adjacent property owners will be covered by the buyers as part of the purchase price. The purchase price is also intended to fully reimburse the City for its upfront transaction costs.
If the transaction is approved, the City would also be responsible for the maintenance of the open water parcel. As this is submerged lands and the responsibility of dredging is anticipated to remain with the Army Corps, no fiscal impact is anticipated as a result of a no-cost transfer from the Army Corps to the City for this parcel.
At this time, the anticipated future transaction costs are estimated to be $350,000. The City Manager will propose for the City Council’s consideration an allocation of funding for this project in a separate action item on September 15, 2015.
ENVIRONMENTAL REVIEW
This item is for information only.
RECOMMENDATION
No action required.
Respectfully submitted,
Janet C. Kern, City Attorney
By:
Andrico Q. Penick, Assistant City Attorney
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Oakland Inner Harbor Tidal Canal City Council Presentation