Title
SUMMARY: Introduce Two Ordinances that Resolve Two Encroachment Issues on City Property in Order to Facilitate the Start of Construction of the Cross Alameda Trail Project along Ralph Appezzato Memorial Parkway, Between Main and Webster Streets.
Introduction of Ordinance Approving an Amended and Restated Lease and Authorizing the City Manager to Execute Documents Necessary to Implement the Terms of an Amended and Restated Lease Agreement with Mr. Hi Chi Chen and Mrs. Lena Muy Chiv, a Married Couple, dba Hometown Donuts for 1930 Main Street. [Requires Four Affirmative Votes]; and
Introduction of Ordinance Approving a Grant of Non-Exclusive Easement and Authorizing the City Manager to Execute Documents Necessary to Implement the Terms of Grant of Non-Exclusive Easement to Alameda Boys & Girls Club (ABGC) and Alameda Unified School District (AUSD) for Access and Maintenance. [Requires Four Affirmative Votes] (Transportation 91402) [Not heard on September 5, 2017]
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: 1. Introduction of Ordinance Approving an Amended and Restated Lease between the City of Alameda as Landlord and Mr. Hi Chi Chen and Mrs. Lena Muy Chiv, a married couple, dba Hometown Donuts as Tenant, to Make Several Modifications to the Lease for Premises located at 1930 Main Street in Order to Facilitate Construction of the Cross Alameda Trail Project and Authorizing the City Manager to Execute All Documents Necessary to Implement its Terms. [Requires Four Affirmative Votes]; and 2. Introduction of Ordinance Approving a Grant of Non-Exclusive Easement from the City of Alameda to the Alameda Boys & Girls Club, Inc., a California nonprofit corporation and the Alameda Unified School District for Access and Maintenance of a Driveway along Ralph Appezzato Memorial Parkway (“RAMP”) between 3rd Street and Poggi Street in Order to Facilitate Construction of the Cross Alameda Trail Project and Authorizing the City Manager to Execute All Documents Necessary to Implement its Terms. [Requires Four Affirmative Votes]
BACKGROUND
As early as 1991, the City Council began enacting policies, via the General Plan, to “Pursue opportunities to utilize the corridor of the former Alameda Belt Line railroad for transit, bicycle and pedestrian transportation.” Since then, the City has worked to implement what is now called the “Cross Alameda Trail” (CAT) in this corridor. The entire CAT, when complete, will be a major east-west walking and bicycling corridor, connecting the entire island and stretching from the Seaplane Lagoon at Alameda Point to Tilden Way for a total of four miles. It will likely attract a large number and diversity of people, including children, seniors and people of all bicycling abilities.
In 2010, the City acquired the former railroad (Alameda Belt Line) property. Soon after, the City began to look for funding to construct a bicycle/pedestrian pathway in the right-of-way along Ralph Appezzato Memorial Parkway (RAMP) from Main Street to Webster Street, now referred to as the “CAT RAMP” segment. In 2014, the City secured two major construction grants and began public outreach and detailed planning and design of the CAT RAMP trail facility. Multiple community and focus group meetings were held in 2014 and early 2015. As a result of this input, the project was designed to be safe for users of all ages and abilities, and to minimize conflicts with motorists. The project design included separate, off-street bicycle and pedestrian pathways, with only two roadway crossings - one at Third Street and one at Poggi Street - and no driveway crossings. Ultimately, both the Transportation Commission and the Planning Board approved the preliminary design of the CAT RAMP project in early 2015.
Immediately after receiving grant funding in 2014, the City had the CAT RAMP property surveyed to confirm the property boundary lines and found two (2) adjacent property owners that were encroaching on City property along the CAT RAMP corridor, as well as one (1) City tenant that was leasing an area now needed for the creation of the trail. In one location, the City was encroaching on the adjacent private property owner’s property. The City promptly alerted all of these property owners of its findings in fall 2014 and began early discussions and negotiations with each of them. In 2015, when more significant soil contamination was found on the CAT RAMP property, these discussions were put on hold.
Late last year (2016), the City re-initiated conversations with each of the property owners, in an effort to reach final agreement with each of them in anticipation of construction of the RAMP segment of the CAT. To date, staff has successfully negotiated agreements with two of the three affected property owners. (A third agreement was negotiated and was ready to sign, however the property owner is finalizing other separate transactions which must be concluded before the agreement with the City may be signed. Staff will bring this agreement to Council when it is signed by the property owner.) If the two agreements included in this staff report are approved by the City Council, two of the three issues will be resolved, which will facilitate the start of construction of the CAT RAMP corridor along RAMP between Main and Webster Streets.
DISCUSSION
City staff have worked diligently to arrive at the two agreements discussed in this staff report (included as Exhibits 1 and 2). These agreements are needed in order to build the CAT between Main Street and Webster Street to current design standards, to build the project as it was approved by the Transportation Commission and Planning Board and to eliminate the encroachments onto City property.
I. Amended and Restated Lease at 1930 Main Street (at RAMP):
The City’s property along RAMP, where the CAT is planned, includes land that is currently leased to the owners of 1930 Main Street, at the southeast corner of RAMP and Main Street, a small shopping mall with two businesses. The leased City property includes half of the front parking lot, the landscaped areas to the north of the parking lot and the driveway to the lot. (The 1930 Main Street property also includes a small parking lot in the back, plus an adjacent parking area that is leased by the owner from the Housing Authority.) The current owners of 1930 Main Street (Mr. Chen and Mrs. Chiv) had leased this land from Alameda Belt Line, prior to the City’s purchase of the Belt Line property in 2010, and the City has continued to lease this area to Chen/Chiv since that time. The owners have been aware that the City planned to develop a trail on its leased property.
The approved CAT RAMP plans included relocating the 1930 Main Street parking lot driveway from RAMP to Main Street and utilizing almost all of the leased City property for the walking/bicycling trail and landscaping.
The City began discussing the CAT project and planned changes with the property owners several years ago. In the negotiations, Chen/Chiv expressed their concerns about potential impacts on their business of moving the driveway and the possible loss of parking spaces.
After numerous discussions, and in an effort to address their concerns and move forward with the CAT project, the City and Chen/Chiv have agreed to the attached Amended and Restated Lease (Exhibit 1). While the City (at City expense) will move the driveway from RAMP to Main Street, as included in the adopted project trail plans to create the safest conditions for people bicycling and walking, the City also agreed to modify its trail plans, moving the trail further to the north, and reducing the landscaped areas, to not only maintain the number of existing parking spaces, but increase the number of spaces by two (these changes are shown in Exhibit A of Exhibit 1: Amended and Restated Lease).
Given the impacts of the CAT construction on the property, the City and Chen/Chiv agreed to share the cost of repaving the parking lot (estimated to be about $36,000), with each party contributing 50% of the cost, as the parking lot is approximately half on City property and half on the Chen/Chiv property. The City also agreed to make the following improvements, above and beyond those which it has already planned to make in the development of the trail:
• After repaving, restripe the full parking lot, including relocation of existing ADA parking space (and ramp) on east side to west side of lot.
• Construct a connecting walkway between the Cross Alameda Trail and the leased parking lot for pedestrian access to the Chen/Chiv property.
The Amended and Restated Lease reduces the area of property leased from the current 3,616 square feet to 1,785 square feet, and will only include the hardscaped areas of the parking lot and the connecting pathway. As a result, the monthly lease rate was reduced from $453 per month, to start at $250 per month when the new lease becomes effective, and then increase at a rate of 2.5% each year, a rate that is comparable to other ground lease rates the City charges on other City property.
Furthermore, as part of the negotiation of an amended lease and related to the impacts of the relocated driveway on this small business/property owner, the City has also agreed to:
• Change the lease term from month-to-month, to a 20-year lease with a 10-year option to extend.
• Provide an option for the property owner to purchase the new leased area, based on fair market value.
The new lease will be signed by the City and become effective once the CAT project is closer to construction (early 2018). In the interim, the current lease will remain in full force and effect.
II. Grant of Non-Exclusive Easement for Alameda Boys & Girls Club & Alameda Unified School District (AUSD):
To the east of 3rd Street, the City’s property along RAMP shares a property line with AUSD, which owns property fronting 3rd Street that houses two schools (Alameda Community Learning Center (ACLC) and Nea), and also the Alameda Boys & Girls Club (B&GC). In a property survey, the City found that informal school parking and part of the driveway areas are encroaching onto City property. The AUSD property includes a driveway off of 3rd Street that generally follows the property line, and that runs behind the school buildings and parallel to the future trail. Near a fenced-in garden maintained by the B&GC, the driveway jogs onto City property to avoid the garden, and then connects to the B&GC parking lot.
Three years ago, the City began discussions with the B&GC and the schools about their needs in this area, and also explained that the CAT project design called for the trail to be built in the area where much of the parking and encroaching driveway areas are located. A verbal agreement was reached and recently this agreement was codified and agreed to by both AUSD and B&GC, as seen in the attached grant easement document (Exhibit 2). Separately, AUSD has acknowledged that it will stop using the City property for informal parking before construction of the trail starts.
In order to both maintain access to the B&GC parking lot and to allow the existing B&GC garden to remain in place, the City agreed to allow a narrow (9.5 feet) easement onto its property located approximately between the garden and the parking lot. The City modified its trail design to move the trail alignment slightly to the north to accommodate this easement. As well, a small triangle of land containing the northern end of the driveway entrance is also encroaching on City property, and this agreement will also provide an easement at this location. The easement areas are shown in Exhibit 3 (Grant Easement Areas). The entire grant easement is strictly for the use of vehicle and pedestrian egress/ingress, and no structures may be built on the City property. The City is not charging B&GC/AUSD for the easement, the consideration being their maintenance of the easement area. The easement remains in effect indefinitely unless terminated by the City or B&GC/AUSD.
FINANCIAL IMPACT
The total costs to the City of making the improvements to the Chen/Chiv property, above and beyond the costs of constructing the CAT RAMP, and as agreed to in the Amended and Restated Lease, are estimated to be about $28,000. These costs have been included in the overall CAT RAMP project budget (#91402). As a result of the reduction in the monthly rent paid by Chen/Chiv to reflect the reduction in total area leased in the new Amended and Restated Lease, the City will collect approximately $2,400 to $4,900 less in annual rent over the course of the up to thirty year lease. The rent monies that are collected will continue to be deposited into the Open Space Maintenance Fund (Fund 318.1).
There is no financial impact for the grant easement with AUSD and Boys & Girls Club.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act (CEQA), the Cross Alameda Trail (CAT) Project was evaluated and approved by the Transportation Commission at their September 24, 2014 meeting. The Transportation Commission found the Project to be “Categorically Exempt under the CEQA Guidelines Section 15301(c) - Existing Facilities and 15304(b) - Minor Alterations to Land and 15304(h).” The resolution of the encroachment issues addressed with this recommendation implements the CAT Project and does not introduce any new environmental impacts. No further environmental review is required.
RECOMMENDATION
1. Introduction of Ordinance Approving an Amended and Restated Lease between the City of Alameda as Landlord and Mr. Hi Chi Chen and Mrs. Lena Muy Chiv, a married couple, dba Hometown Donuts as Tenant, to Make Several Modifications to the Lease for Premises located at 1930 Main Street in Order to Facilitate Construction of the Cross Alameda Trail Project and Authorizing the City Manager to Execute All Documents Necessary to Implement its Terms. [Requires Four Affirmative Votes]; and
2. Introduction of Ordinance Approving a Grant of Non-Exclusive Easement from the City of Alameda to the Alameda Boys & Girls Club, Inc., a California nonprofit corporation and the Alameda Unified School District for Access and Maintenance of a Driveway along Ralph Appezzato Memorial Parkway (“RAMP”) between 3rd Street and Poggi Street in Order to Facilitate Construction of the Cross Alameda Trail Project and Authorizing the City Manager to Execute All Documents Necessary to Implement its Terms. [Requires Four Affirmative Votes]
Respectfully submitted,
Jennifer Ott, Transportation Planning Director
By,
Rochelle Wheeler, Transportation Planner
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits
1. Amended and Restated Lease with Mr. Chen and Ms. Chiv
2. Grant of Non-Exclusive Easement with AUSD and Boys & Girls Club
3. Grant Easement Areas