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Summary Title: Take Action to Acquire Union Pacific Property via Eminent Domain for the Jean Sweeney Open Space Park Project
Adoption of Resolution Determining that the Public Interest and Necessity Require the Acquisition of Certain Real Property Interests for a Public Project and Directing the Filing of Eminent Domain Proceedings for the Jean Sweeney Open Space Park Project. (Recreation and Parks 310)
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To: Honorable Mayor and Members of the City Council
From: David L. Rudat, Interim City Manager
EXECUTIVE SUMMARY
The Jean Sweeney Open Space Park Project consists of a planned 25-acre park bounded by Constitution Way, Atlantic Avenue, and Sherman Street on predominantly former Alameda Beltline Railroad property. The City of Alameda also needs to acquire four remnant parcels totaling approximately 2.8 acres of the 4.52 acres owned by Union Pacific to complete major public access components of the Sweeney Park Project. Without the remnant parcels, a significant portion of the existing residential neighborhood to the south of the Jean Sweeney Park Project will be cut off from any direct public access to the park and the gateway to the Cross Alameda Trail at Constitution Way will not be completed to national “best practice” standards for pedestrian and bicycle access and safety. The City has made numerous attempts to negotiate with Union Pacific regarding value, the amount of property to be acquired, and the allowable use of the property as a park, and has not been able to reach agreement. As a result, City staff is recommending that the City Council acquire from Union Pacific the 2.8 acres of needed property for the Sweeney Park Project via eminent domain.
BACKGROUND
The Jean Sweeney Open Space Park Project (Sweeney Park Project) consists of a planned 25-acre park bounded by Constitution Way, Atlantic Avenue, and Sherman Street. The site is the former Alameda Beltline Railroad property that was secured by the City due to the advocacy efforts of long-time resident Jean Sweeney. The City of Alameda also needs to acquire four remnant parcels totaling approximately 2.8 acres of the 4.52 acres owned by Union Pacific that were not part of the Alameda Beltline acquisition to complete major public access components of the Sweeney Park Project, including public access for the southern neighborhood and permanent connection to the Cross Alameda Trail to the west (Exhibit 1).
On July 15, 2014, the City Council approved the Jean Sweeney Open Space Park Master Plan through an extensive public input process, including the remnant parcels needed for major public access.
On July 5, 2016, the City Council approved the design development plan for the Sweeney Park Project, including the remnant parcels, which was designed to be constructed in phases.
On April 17, 2018, the first phase of construction of the Cross Alameda Trail within the Sweeney Park Project, an off-street bicycle and pedestrian trail that meanders through the park from east to west, was completed and accepted by the City Council. An interim alignment was created for a short segment of the trail specifically to route around an existing Union Pacific owned parcel. This segment is narrower than the trail standard and connects the trail to the plaza at Constitution Way and Atlantic Avenue.
The second phase of construction is the eastern 8-acres near Sherman Street, which includes a natural playground, parking lot, restroom, open lawn, large picnic pavilion and smaller picnic areas throughout. This construction is planned for completion in October 2018.
Predominant features of the park include:
• The Cross Alameda Trail, a pedestrian and bicycle trail running the length of Alameda, located on the northern edge of the property;
• Active use areas on the east and west sides each with a parking lot, restroom, and natural-based playground;
• Picnic area with a gazebo, open lawn, and picnic pavilion. This provides an area for community rentals; however, no amplified sound will be allowed;
• Outdoor classroom adjacent to the community garden for use by schools and the College of Alameda to study the history, botany and environmental aspects of the park;
• Natural open space with pedestrian-only trails through the central portion;
• A bike skills loop with elements and obstacles to provide recreation and improved bike skills;
• Picnic tables, benches, and bicycle racks located throughout the park;
• A one-acre, fenced community garden with plots available to Alameda residents, as well as addressing food insecurity in Alameda by providing Food Bank constituents with plots, gardening skills, and fresh fruit and vegetables;
• One-acre of demonstration gardens and urban orchard; and
• Educational signage and displays on the railroad history and local biology.
As stated above, the City needs to acquire four remnant parcels totaling approximately 2.8 acres of the 4.52 acres owned by Union Pacific to complete major public access components of Sweeney Park Project (Exhibit 1), including public access for the southern neighborhood and permanent connection to the Cross Alameda Trail to the west consistent with the City’s adopted plans for the Sweeney Park Project. Without the 2.8-acre remnant parcels, a significant portion of the existing residential neighborhood to the south of the Jean Sweeney Park Project will be cut off from any direct public access to the park and the gateway to the Cross Alameda Trail at Constitution Way will not be completed to national “best practice” standards for pedestrian and bicycle access and safety.
As described in greater detail below, the City has made numerous attempts to negotiate with Union Pacific regarding value, the amount of property to be acquired, and the allowable use of the property as a park, and has not been able to reach agreement. As a result, City staff is recommending that the City Council acquire from Union Pacific the 2.8 acres of needed property for the Sweeney Park Project via eminent domain.
DISCUSSION
The following provides a summary of the City’s negotiations with Union Pacific to acquire the remnant parcels and the basis for staff’s recommendation to acquire Union Pacific’s land via eminent domain:
• City Initial Offer and Union Pacific Counter. Based on a December 2016 appraisal, in February 2017 the City offered Union Pacific $870,000 for the four remnant parcels. The City did not offer to buy a remaining remnant parcel because it is not necessary for the development of Sweeney Park Project. Union Pacific countered with $8.5 million for all five parcels, including the remnant that the City does not need. Union Pacific also demanded that the property be subject to a recorded restrictive covenant (“Use Restrictions”) prohibiting any recreational or park uses, which is inconsistent with the City’s adopted plans for the Sweeney Park Project. The Use Restrictions would also prohibit any residential use even though Union Pacific’s counter offer of $8.5 million was based on valuing the land at a residential use.
Union Pacific would agree to release the covenants only if the City performs a Phase II Environmental Assessment that shows the property to be free of contamination. If contamination is found, the City would be required to remediate the property to residential levels without any deduction in price. Subject to Union Pacific’s review and approval and payment of an additional $10,000, Union Pacific would then release the Use Restrictions. Additionally, Union Pacific refuses to provide access to the City for physical inspection or testing of the property for characterization of potential hazardous materials contamination.
• City Updated Appraisal and Offer. Subsequently, City staff obtained an updated appraisal showing a value of $1,098,284 for the highest and best use of the required remnant parcels. On May 15, 2018, City staff made a statutory offer of the appraised amount for the four remnant parcels. The City did not offer to buy the parcels that are most developable for residential use and, therefore, most valuable. These areas are not necessary for the design or access to Sweeney Park Project.
• UP Counter Offer. Union Pacific has not yet made a counter proposal, and staff anticipates that any counter will include the Use Restrictions and the requirement to acquire all five parcels instead of just the parcels needed for the Sweeney Park Project.
Based on the summary provided above, staff recommends that the City Council adopt a resolution of necessity to condemn the needed remnant parcels for the Sweeney Park Project. An eminent domain acquisition would allow the City to acquire only the parcels needed for park use and to take title without Union Pacific’s Use Restrictions. Since the land is not needed immediately, staff does not recommend seeking an order for prejudgment possession at this time.
FINANCIAL IMPACT
The Jean Sweeney Open Space Park Project is accounted for in projects 91309 and 91614 in the 2017-19 Capital Improvement Program Budget. The City’s General Fund maintains sufficient reserve funds to acquire the relevant property from Union Pacific. Since immediate possession is not required at this time, staff is not requesting specific appropriation of available funds for deposit with the State Condemnation Deposit Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The Jean Sweeney Open Space Park Project is consistent with Sweeney Park Master Plan approved by the Council on July 15, 2014 and the Jean Sweeney Open Space Park Design Development Plan approved by the City Council on July 5, 2016.
ENVIRONMENTAL REVIEW
On July 15, 2014, by Resolution No. 14955, the City Council adopted a Mitigated Negative Declaration for the Jean Sweeney Open Space Park Master Plan and made findings, based on the initial study and any comments received, that the project has minimal environmental impacts, that those that were identified are related to the construction period (e.g. dust, construction traffic, etc.), and mitigations are recommended to minimize those impacts. No further environmental review is necessary pursuant to the California Environmental Quality Act (CEQA).
RECOMMENDATION
Adopt a Resolution determining that the public interest and necessity require the acquisition of certain real property interests for a public project and directing the filing of eminent domain proceedings for the Jean Sweeney Open Space Park Project.
Respectfully submitted,
Jennifer Ott, Base Reuse and Transportation Planning Director
Amy Wooldridge, Recreation and Parks Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Map of Remnant Parcels