Title
Summary Title: Take Action to Acquire Union Pacific Property via Eminent Domain for the Cross Alameda Trail Clement Avenue East Extension/Tilden Way Project
Adoption of 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 Cross Alameda Trail Clement Avenue East Extension/Tilden Way Project and Seek an Order for Prejudgment Possession. (Transportation 91820)
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To: Honorable Mayor and Members of the City Council
From: David L. Rudat, Interim City Manager
EXECUTIVE SUMMARY
The Cross Alameda Trail Clement Avenue East Extension/Tilden Way project (Tilden Way Project) is a long-planned facility that will link the Cross Alameda Trail to the Miller-Sweeney Bridge and into Oakland. The City needs to acquire two parcels, totaling approximately 1.56 acres, owned by Union Pacific, to complete these walking, biking and other transportation improvements along the Tilden Way corridor. Without the property, the Cross Alameda Trail will remain incomplete and the Clement Avenue truck route will continue to be disjointed. The City has made numerous attempts to negotiate with Union Pacific regarding value and use restrictions on the property and has not been able to reach agreement. City staff therefore recommends that the City Council acquire the needed property via eminent domain.
BACKGROUND
The Cross Alameda Trail Clement Avenue East Extension/Tilden Way project (Tilden Way Project) has been envisioned since at least 2005, when the Cross Alameda Trail Feasibility Study was completed and adopted by the City Council. The City’s Transportation Element of the General Plan, approved in 2009, references future acquisition of the railroad right-of-way for a multi-modal corridor, including bicycling and walking facilities and a continuous truck route on Clement Avenue connecting to Tilden Way. In 2009 and 2010, the City Council approved the Pedestrian Master Plan and the Bicycle Plan Update, respectively, that list the Clement Avenue east extension project.
On June 6, 2017, the City Council approved the 2017-19 Capital Improvement Program Budget, which included funding for the Tilden Way Project and on July 24, 2018 the City Council approved a funding agreement with Alameda County Transportation Commission and related budget adjustments.
The Tilden Way Project will develop a complete street by improving walking, bicycling, transit and truck access between the Northern Waterfront Priority Development Area (PDA) in Alameda, Oakland, and Fruitvale BART, transforming the street from industrial railroad blight to a best-practices multi-modal gateway. The project includes these key elements:
1. Acquire 1.56 acres of abandoned Union Pacific Railroad (Union Pacific) right-of-way on the northwest side of Tilden Way on either side of Blanding Avenue.
2. Remediate the soil in the former railroad right-of-way, meeting all regulatory agency requirements.
3. Extend Clement Avenue approximately 155 feet to connect to Tilden Way.
4. Build a 1,000 foot multi-modal walking/bicycling facility, which will be the most eastern segment of the Cross Alameda Trail, connecting the planned Clement Avenue Complete Street to the Miller-Sweeney Bridge. (The Cross Alameda Trail is a four-mile, all-ages, cross island biking and walking facility extending from Alameda Point in the west to the Miller-Sweeney Bridge in the east.) The facility will include sidewalks, plus separated bicycling facilities - either a multi-use path or protected bike lanes - to be built in the former Union Pacific right-of-way, which is about 60 feet wide along Tilden Way.
5. Create a direct, continuous truck route on the new Clement Avenue Extension, between Clement Avenue and Tilden Way, both of which are existing truck routes.
6. Improve bus transit, including considering a bus queue jump lane in the 60 foot acquired right-of-way along Tilden Way.
7. Place landscaping throughout this linear property along Tilden Way, as well as rain gardens and required bio-retention areas in those areas not used by transportation, such as the intersection of Broadway/Tilden Way.
8. Install lighting, wayfinding signage, and other street infrastructure to create a safe, complete street.
The City needs to acquire two parcels, totaling approximately 1.56 acres and owned by Union Pacific, to connect Clement Avenue with the Miller-Sweeney (Fruitvale) Bridge and to complete the Cross Alameda Trail by adding bicycle and other transportation improvements along the Tilden Way corridor for the Tilden Way Project to be consistent with the City’s adopted plans (Exhibit 1). Without the 1.56-acre property, the Cross Alameda Trail will remain incomplete and safe, convenient public access for people bicycling and walking to and from Oakland and BART, a regional transit destination, will be inhibited. As well, the Clement Avenue truck route will continue to be disjointed, requiring longer truck trips on City streets. Additionally, there have been numerous complaints about the maintenance and upkeep of the Union Pacific parcels by members of the surrounding community.
As described in greater detail below, the City has made numerous attempts to negotiate with Union Pacific regarding value and use restrictions on the property and has not been able to reach agreement. As a result, City staff is recommending that the City Council acquire from Union Pacific the 1.56 acres of needed property for the Tilden Way Project via eminent domain.
DISCUSSION
The following provides a summary of the City’s negotiations with Union Pacific to acquire the Tilden Way Project parcels and the basis for staff’s recommendation to acquire Union Pacific’s land via eminent domain:
• City Initial Offer and Counter. Based on a January 2017 appraisal, in February 2017 the City offered Union Pacific $958,000 and Union Pacific countered at $2.9 million. Union Pacific also demanded that the property be subject to a recorded restrictive covenant (“Use Restrictions”) prohibiting any residential, recreational or park uses. 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 reduction 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 $1,685,000 for the highest and best use of the required parcels. On May 15, 2018, City staff made a statutory offer of the appraised amount for the parcels.
• Union Pacific Counter Offer. Union Pacific countered at $2,070,992. Despite the difference having been reduced to $385,922, Union Pacific would still impose the Use Restrictions on the property as described above.
Based on the summary provided above, staff recommends that the City Council adopt a resolution of necessity to condemn the needed parcels for the Tilden Way Project. An eminent domain acquisition would allow the City to take possession of the property within the next several months and take title without Union Pacific’s Use Restrictions. Since the land is needed as soon as possible in order to begin soil testing, determine remediation needs and costs, and to deliver the grant-funded complete streets project within the grant-funding timeline, City staff is also recommending that the City Council seek an order for prejudgment possession immediately. Before the motion is filed, the City will have to deposit the appraised amount of $1,685,000 with the Condemnation (eminent domain) Deposit Fund with the State Treasurer’s Office in Sacramento. If approved this evening, the City is anticipating to possess the property within the next four months.
FINANCIAL IMPACT
The 2017-19 Capital Budget for the Clement/Tilden Project (91820) includes sufficient funds for acquiring the relevant property from Union Pacific and making the deposit of the appraised amount of $1,685,000 immediately.
Upon possession of the Tilden Way Project parcels by the City, the City will become responsible for the costs to maintain these parcels. The cost for the initial site clean-up and also to replace and add new fencing is estimated to be between $60,000 and $110,000. Ongoing annual maintenance costs are projected to be between $15,000 and $25,000. Neither cost is currently budgeted. With approval of tonight’s item, staff will find a contractor who can perform the necessary work at the lowest price. Staff will then return to Council with a recommended Mid-Year Budget adjustment that would use Construction Improvement Tax funds to cover the initial one-time costs and General Fund Streets and Road program funds for the ongoing maintenance costs. The funds for one-time costs would be transferred to the Urban Forest Capital Improvement Project 91802. If possession of the property occurs prior to Mid-Year, staff will request Council approval of the appropriations sooner.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The Tilden Way Project is included in the 2017-2019 Capital Budget, contained in the Transportation Choices Plan as Project #30 and is consistent with the City’s Transportation Element of the General Plan.
ENVIRONMENTAL REVIEW
On January 20, 2009, by Resolution Nos. 14299 and 14300, the City Council certified the Final Environmental Impact Report (EIR) for the Transportation Element of the General Plan in accordance with CEQA. The EIR analyzed the environmental and transportation impacts of the 2009 Transportation Element and included analysis of the Tilden Way Project. The Final EIR found that the Clement Avenue extension improves traffic circulation and levels of service in the area. No further environmental review is necessary pursuant to CEQA.
RECOMMENDATION
Adopt a Resolution of the City of Alameda 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 Cross Alameda Trail Clement Avenue East Extension/Tilden Way Project and seek an order for prejudgment possession.
Respectfully submitted,
Jennifer Ott, Base Reuse and Transportation Planning Director
Rochelle Wheeler, Senior Transportation Coordinator
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Map of Property