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HomeMy WebLinkAbout2022-14 CC ResolutionRESOLUTION NO.2022-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN PURCHASE AND SALE AND SETTLEMENT AGREEMENT AND JOINT ESCROW INSTRUCTIONS BETWEEN CITY OF TEMECULA AND BRE 26201 YNEZ OWNER IN CONNECTION WITH THE I-15/FRENCH VALLEY PARKWAY IMPROVEMENTS — PHASE II (PORTIONS OF APN 910-281-001) THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Findings. A. The City of Temecula (City), in cooperation with the California Department of Transportation (Caltrans), seeks to construct the I-15/French Valley Parkway Improvements — Phase II (Phase II) to alleviate traffic congestion and improve operational efficiency within the limits of the I-15/French Valley Parkway Improvements Project (Project). City completed Phase I of the Project, which was designed to provide interim relief by widening the existing southbound off -ramp at Winchester Road, construction of the southbound off -ramp at the French Valley Parkway and construction of the westbound portion of French Valley Parkway between the new off -ramp and Jefferson Avenue. As part of Phase II, City proposes to construct a two-lane northbound collector/distributor system along I-15 from the Winchester Road/I-15 interchange northerly on -ramps to just north of the I-15/I-215 junction with connectors to I-15 and I-215. B. Phase II is identified in the City's Capital Improvement Program Budget for Fiscal Years 2022-26. C. On May 28, 2019, the City Council adopted Resolution No. 19-30 approving a Cooperative Agreement, Agreement 08-1667, with Caltrans for the design of Phase II. Pursuant to Agreement 08-1667, City is the implementing agency for right of way and is responsible for acquisition of the property interests needed for Phase II. D. Phase II also requires the cooperation of the City of Murrieta ("Murrieta"). The City and Murrieta entered into that certain Cooperative Agreement Between the City of Temecula and the City of Murrieta in Connection with the French Valley Parkway/I-15 Improvements Project — Phase II, which was executed by the City of Temecula on May 13, 2021 and by the City of Murrieta on July 28, 2021 ("Temecula-Murrieta Cooperative Agreement"). Pursuant to the Temecula-Murrieta Cooperative Agreement, the City and Murrieta set forth their agreement to cooperate on right-of-way issues in connection with Phase II. Murrieta agreed and acknowledged that the City could acquire property located in the City of Murrieta. The City and Murrieta also agreed and acknowledged that each City may exercise the power of eminent domain to acquire real property for a public use if each City meets all legal requirements, including the payment of just compensation to the owner or into the court for the benefit of the owner. (California Constitution, Article 1, Section 19). E. BRE 26201 Ynez Owner, LLC, a Delaware limited liability company ("Owner"), is the record owner of that certain real property located at 26201 Ynez Road, in Temecula, California, and identified as Riverside County Tax Assessor's Parcel Number 910-281-001 ("Property"). The Property is approximately 320,131 square feet (7.35 acres) in size and is improved with a multi -tenant Class B industrial warehouse totaling approximately 100,938 square feet. The Property is encumbered by, and thus has a servient estate in, an approximate 21,754 square foot non-exclusive access and parking easement located along the northern boundary of the Property adjacent to the property located at 26155 Ynez Road, Temecula, identified as APN 910- 271-002, which is owned by Ynez Acres II, a California general partnership (referred to as "Ynez Acres II Parcel"). The Property also benefits from, and thus has a dominant estate in, an approximate 18,033 square foot non-exclusive access and parking easement on the Ynez Acres II Parcel. Owner uses the approximate 18,033 square foot dominant estate for parking for the warehouse improvements on the Property. The Property and Owner's dominant estate interest in the non-exclusive access and parking easement on the Ynez Acres II Parcel are referred to collectively as the "Larger Parcel". F. Phase II requires the acquisition of the following real property interests from the Larger Parcel (referred to below collectively as the "Subject Property Interests") for public use, namely public street and highway purposes, retaining wall construction, drainage, public utilities, and all uses necessary or convenient thereto in connection with the City's proposed construction of Phase II: (i) A fee interest in an approximate 177 square foot portion of the Larger Parcel identified as Caltrans Parcel 25216-1 located on the Property identified as APN 910-281-001, and described on Exhibit "A-1" to the Agreement. (ii) A permanent footing easement on an approximate 500 square foot portion of the Larger Parcel identified as Caltrans Parcel 25216-2 located on the Property identified as APN 910-281-001, and described on Exhibit "A-2 to the Agreement. (iii) An approximate 822 square foot temporary construction easement with a term of twenty-eight (28) months to help facilitate the City's construction of Phase II on the portion of the Larger Parcel identified as Caltrans Parcel 25216-3 located on the Property identified as APN 910-281-001, and described on Exhibit "A-3" to the Agreement. (iv) Owner's interest in and to (i) an approximate 10 square foot portion of the footing easement on the access and parking easement (dominant estate) portion of the Ynez Acres II Parcel included within the legal description of Caltrans Parcel 24616-2 and (ii) an approximate 215 square foot portion of the temporary construction easement with a term of twenty-eight (28) months on the access and parking easement (dominant estate) portion of the Ynez Acres II Parcel included within the legal description of Caltrans Parcel 24616-3 that the City seeks to acquire on the Ynez Acres II Parcel. Caltrans Parcel 24616-2 is described on Exhibit "A-4" attached hereto and incorporated herein by this reference. Caltrans Parcel 24616-3 is described on Exhibit "A-5" to the Agreement. Owner's interest in the approximate 10 square foot footing easement and in the approximate 215 square foot temporary construction easement that the City seeks to acquire on the Ynez Acres II Parcel is referred to below as "Dominant Estate Interest in Access and Parking Easement". G. Pursuant to Government Code Section 7267.2, on August 10, 2021, the City Council set just compensation for the Subject Property Interests at the fair market value as determined by the City's independent appraiser. The City Council also authorized the Director of Public Works/City Engineer to make offers and negotiate the acquisition of the Subject Property Interests. The City and its consultant, Overland, Pacific & Cutler, extended a written offer dated October 21, 2021 to the Owner of the Property to purchase the Subject Property Interests at the fair market value established by the City's independent appraiser. The Parties negotiated the City's acquisition and use of the Subject Property Interests but had not reached an agreement regarding the terms of the purchase as of December 14, 2021. H. Accordingly, based on the timing of Phase II and the status of negotiations, on December 14, 2021, the City Council of the City of Temecula adopted Resolution No. 2021-68, a Resolution of the City Council of the City of Temecula Declaring Certain Real Property Interests Necessary for Public Purposes and Authorizing the Acquisition Thereof in Connection with the I- 15/French Valley Parkway Improvements — Phase II (Certain Property Interests on APN 910-281- 001 and Certain Interests in Dominant Estate Interest on APN 910-271-002) ("Resolution of Necessity") by at least four -fifths vote of all its members. On January 6, 2022, the City filed a Complaint in Eminent Domain as Riverside County Superior Court Case Number CVSW2200255 ("Complaint in Eminent Domain") to condemn the Subject Property Interests. I. The Parties continued their negotiations after the adoption of the Resolution of Necessity and have reached an agreement, subject to ratification by the City Council, regarding the terms of the City's Purchase of the Subject Property Interests, any improvements thereon, impact to parking, and impact of the acquisition of the Subject Property Interests and Phase II on the remainder portions of the Larger Parcel. The City has not served the Complaint in Eminent Domain on Owner. The Parties agreed to enter into the Agreement as an all-inclusive settlement in consideration of the mutual promises and conditions set forth in this Agreement and to minimize the litigation expenses, costs relating to experts, and attorneys' fees in connection with the filed Eminent Domain Proceeding, subject to the terms and conditions set forth herein. J. The total Purchase Price the City will pay for the Subject Property Interests is the sum of $71,250 ("Purchase Price") for the fair market value of the Subject Property Interests described above in Recital 1.F., including use of the Temporary Construction Easement and any improvements thereon, including a masonry wall with stucco finish, temporary impact to parking spaces in said areas, impact to three parking stalls, one parking light eight foot pole, entrepreneurial profit for Seller's costs in replacing said items after the construction of Phase II, and severance damages resulting to the remainder parcel, if any. K. Under the Agreement, the City agrees that it will dismiss the Complaint in Eminent Domain and that the City Staff will present to the City Council for adoption a Resolution rescinding Resolution No. 2021-69 within thirty days of the Effective Date of the Agreement. L. At its meeting of February 23, 2010, the City Council approved the Mitigated Negative Declaration for the I-15/French Valley Parkway Improvements Project. The City Council found that based on the record before it (1) the Mitigated Negative Declaration was prepared in compliance with California Environmental Quality Act (CEQA); (2) there is no substantial evidence that the Project will have a significant effect on the environment that cannot be adequately and feasibly mitigated; and (3) the Mitigated Negative Declaration reflects the independent judgment and analysis of the City Council. The City duly filed the Notice of Determination in accordance with CEQA. Section 2. Approval of Purchase and Sale Agreement The City Council hereby approves the Purchase and Sale and Settlement Agreement and Joint Escrow Instructions between the City of Temecula and BRE 26201 Ynez Owner in Connection with I-15/French Valley Parkway Improvements — Phase II (Portions of APN 910-281-001) in substantially the form attached, with such changes as the City Manager and Owner may mutually agree to that are approved by the City Attorney's Office. Section 3. Environmental Analysis. The environmental effects of the acquisition of the Subject Property Interests were studied as an integral part of the Mitigated Negative Declaration approved for the I-15/French Valley Parkway Improvements Project. The findings made by the City Council at its meeting on February 23, 2010 in approving the Mitigated Negative Declaration are the appropriate findings for the acquisition of the Subject Property Interests. A re- validation of the Mitigated Negative Declaration was approved on July 9, 2021. In connection with the attached Agreement, City staff reviewed all of the environmental documentation prepared in connection with the Phase II project, including, but not limited to, the re -validation of the Mitigated Negative Declaration, the Mitigated Negative Declaration, the initial environmental study, the mitigation monitoring program and agenda report related to the approval of the Mitigated Negative Declaration. Pursuant to the criteria of Section 15162 of the CEQA Guidelines and Section 21166 of the Public Resources Code, City staff concluded that no substantial changes have occurred in the Phase II project and that the City has obtained no new information of substantial importance that would require further environmental analysis. These environmental findings are the appropriate findings with respect to the proposed acquisition of the Subject Property Interests. Section 4. City Manager's Authority. The City Manager is authorized to execute the Agreement in substantially the form attached, with such changes as the City Manager and the Owner may mutually agree to that are approved by the City Attorney's Office. A copy of the final Agreement shall be placed on file in the Office of the City Clerk. The City Manager (or the City Manager's designee), is hereby authorized, on behalf of the City, to take all actions necessary and convenient to carry out and implement the Agreement, and to administer the City's obligations, responsibilities and duties to be performed under the Agreement, including but not limited to escrow instructions, Certificates of Acceptance, and other similar agreements and documents as contemplated by or described in the Agreement or as necessary and convenient to effectuate the transaction contemplated therein. Section 5. Certification. The City Clerk shall certify the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 22nd day of February, 2022. ATTES Rands , City Clerk [SEAL] 1 1 Matt Rahn, Mayor 1 1 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Randi Johl, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 2022-14 was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 22°d day of February, 2022, by the following vote: AYES: 5 COUNCIL MEMBERS: Alexander, Edwards, Rahn, Schwank, Stewart NOES: 0 COUNCIL MEMBERS: None ABSTAIN: 0 COUNCIL MEMBERS: None ABSENT: 0 COUNCIL MEMBERS: None Randi Johl, City Clerk 6