Title
Introduction of Ordinance Approving a Real Estate Exchange Agreement between the City of Alameda (“City”) and PUR Atlantic LLC (“PUR Atlantic”) to Exchange Approximately 820 Square Feet of City Owned Property for Approximately 2,173 Square Feet of PUR Atlantic Owned Property in Order to Facilitate Construction of the Cross Alameda Trail Project along Ralph Appezzato Memorial Parkway between Main and Webster Streets and Authorizing the City Manager to Execute Documents Necessary to Implement Its Terms. [Requires Four Affirmative Votes] (Transportation 91402)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Introduction of Ordinance Approving a Real Estate Exchange Agreement between the City of Alameda (“City”) and PUR Atlantic LLC (“PUR Atlantic”) to Exchange Approximately 820 square feet of City Owned Property for Approximately 2,173 square feet of PUR Atlantic Owned Property in Order to Facilitate Construction of the Cross Alameda Trail Project and Authorizing the City Manager to Execute 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. 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 that several adjacent property owners were encroaching on City property. As well, 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 CAT RAMP segment of the CAT. Staff successfully negotiated agreements with all three of the affected property owners. Two of the needed agreements were already approved by the City Council at its September 5, 2017 meeting. A third agreement, which was not yet ready for signature at that time due to a pending transfer in ownership by the adjacent private owner, is now finalized and ready for approval. If the agreement included in this staff report is approved by the City Council, it will facilitate the start of construction of the CAT RAMP corridor along RAMP between Main and Webster Streets.
DISCUSSION
When the City conducted its property survey, it found that the fence that runs along the north side of 1825 Poggi Street (an apartment complex) does not match the property line at the southern edge of the City’s property. This wrought iron fence runs parallel to RAMP, while the City property is angled, forming a virtual “x” between the fence line and property line (for a site map, see Exhibit A to the Real Estate Exchange Agreement included in Exhibit 1).
The owner of the adjacent property, called Atlantic Apartments, is PUR Atlantic LLC (“PUR Atlantic”), which has improvements, including parking and landscaping, immediately south of its fence. The discrepancy between the fence and property line results in a triangle of the City’s land being encroached upon with the fence and parking lot, and an opposite triangle of PUR Atlantic property being controlled but undeveloped by the City to the north of the fence. Because PUR Atlantic’s hardscape improvements are already in place and have been for a number of years, and the City did not find the encroached upon area necessary for the development of the CAT since there is ample width in the City’s property, City staff and PUR Atlantic have agreed to a property swap, which is codified in the attached Agreement.
The City will exchange approximately 820 square feet of City owned property for approximately 2,173 square feet of PUR Atlantic property. The parties have agreed that the fair market value of this land, at its highest and best use, is $1.38 per square foot based on a recent comp of a similar property. Thus, the fair market value of the PUR Atlantic property is approximately $2,998 and the fair market value of the City property is approximately $1,131, resulting in a difference in value of $1,867 in the City’s favor. Additionally, the City has paid for the processing of the Lot Line Adjustment application, which is necessary to consummate the transaction, and totals just over $2,000. Therefore, both parties have agreed that this is an even exchange. Each party will pay for its own closing costs and attorney’s fees, if any, in connection with the exchange.
The City has also reviewed and preliminarily approved a Lot Line Adjustment, submitted by PUR Atlantic. Lot Line Adjustments are approved administratively by City staff. It will be finalized only after the City Council approves the real estate exchange agreement.
City staff has worked diligently to arrive at this agreement, which is needed in order to build the CAT between Main Street and Webster Street as it was approved by the Transportation Commission and Planning Board, and to eliminate the encroachments onto City property.
FINANCIAL IMPACT
The resulting financial impact of this real estate exchange agreement is neutral.
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 issue addressed with this recommendation implements the CAT Project and does not introduce any new environmental impacts. No further environmental review is required.
RECOMMENDATION
Introduction of Ordinance approving a real estate exchange agreement between the City of Alameda (“City”) and PUR Atlantic LLC (“PUR Atlantic”) to exchange approximately 820 square feet of City owned property for approximately 2,173 square feet of PUR Atlantic owned property in order to facilitate construction of the cross alameda trail project and authorizing the City Manager to execute 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
Exhibit:
1. Real Estate Exchange Agreement