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HomeMy WebLinkAbout2022-16 CC ResolutionRESOLUTION NO.2022-16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN POSSESSION AND USE AGREEMENT BETWEEN CITY OF TEMECULA AND LINDA D. HUDDLESTON, TRUSTEE, ROXANNA M. HODGES, TRUSTEE, SUSAN D. RENNO, TRUSTEE, FOURSQUARE FINANCIAL. SOLUTIONS, INC., STEVEN WILLIAMS AND BRENDA JORDAN, SUCCESSOR CO -TRUSTEES, AND HOWARD OMDAHL IN CONNECTION WITH THE I-15/FRENCH VALLEY PARKWAY IMPROVEMENTS — PHASE II (PORTIONS OF APN 910-100-018) THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Findines. 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. Phase II requires the acquisition in fee of an approximate 11,516 square foot fee area ("Subject Fee Area") from that certain vacant property located on the northwest corner of Elm Street and Jackson Avenue in Murrieta, California identified as Riverside County Tax Assessor's Parcel Number 910-100-018 ("Property") described more particularly on Exhibit "A" to the attached Possession and Use Agreement. The City also needs to use that certain approximate 6,741 square foot temporary construction easement and the approximate 6,901 square foot temporary construction easement on APN 910-100-018 for a term of thirty-four months described on Exhibit "A-1" and Exhibit "A-2" (collectively "Temporary Construction Easements"), respectively, to facilitate the construction of Phase II. F. The City seeks to acquire the Subject Fee Property and Temporary Construction Easements (collectively "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. 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 based on a February 19, 2021 date of value. 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 11, 2021 to the record Owners of the Property, Linda D. Huddleston, Trustee, Roxanna M. Hodges, Trustee, Susan D. Renno, Trustee, Foursquare Financial Solutions, Inc., Steven Williams and Brenda Jordon, Successor Co -Trustees ("Owners") to purchase the Subject Property Interests at the fair market value established by the City's independent appraiser. During the course of negotiations, the City learned that there is a pending action between Foursquare Financial Solutions, Inc. and Howard Omdahl ("Omdahl") in connection with the one-fourth recorded interest of Foursquare Financial Solutions, Inc. in the Property. The Parties agreed that it would be necessary to wait for the issues in the pending action to be resolved to proceed with a Purchase and Sale Agreement for the Subject Property Interests. Accordingly, the Parties agreed to enter into the attached Possession and Use Agreement ("Agreement"), subject to the approval of the City Council, to authorize the City to use and possess the Subject Property Interests. The Parties contemplate entering into a Purchase and Sale Agreement after the pending action is resolved. H. Pursuant to the Agreement, the Owners grant to the City, its contractors, agents, representatives, employees and all others reasonably deemed necessary by City, the irrevocable right to exclusive possession, use and occupancy of the Subject Property Interests, including but not limited to, the right to conduct any hazardous materials testing required by City; the right to remove and dispose of any and all improvements within the areas of the Subject Property Interests; and the right to construct Phase II in the areas of the Subject Property Interests as of the date the Agreement is fully executed by the Parties. Omdahl consents to the Owner's grant of possession. The term of the City's use of the Temporary Construction Easements is thirty-four (34) months from the Effective Date. I. The Agreement provides that the City will deposit with Escrow the sum of $196,300 ("Compensation Amount") for the benefit of the Owners and/or Omdahl (as to a one- fourth interest). Said Compensation Amount is the all-inclusive Purchase Price that the City and Owners agreed to for the City's purchase of the Subject Property Interests. As noted above, however, the Parties cannot proceed with a Purchase and Sale Agreement until the pending action is resolved. In consideration for the Owner's irrevocable grant to the City of possession and use of the Subject Property Interests and Omdahl's consent to said grant of possession, City will consent to the Owner's withdrawal and release of $147,225 ("Partial Compensation Withdrawal"), which represents seventy-five percent (75%) of the Compensation Amount for the undisputed three -fourths (3/4) interest in and to the Property. The sum of $49,075, which represents one- fourth of the Compensation Amount, will remain on deposit in Escrow pending resolution of the pending action between Foursquare Financial Solutions, Inc. and Omdahl regarding the disputed one-fourth (1 /4) interest in and to the Property. J. The Agreement also provides that if the Parties are not able to enter into a Purchase and Sale Agreement and clear the encumbrances on title within 240 days of the Effective Date, the City may commence an eminent domain proceeding to acquire the Subject Property Interests by eminent domain. The Parties agree that the only issue in any such eminent domain proceeding shall be the issue of just compensation. In such case, if the City fails to file an eminent domain proceeding within 450 days of the Effective Date and the Parties have not reached a negotiated agreement for the City's purchase of the Subject Property Interests, then Owner and Omdahl (if it is determined in the Pending Action that Omdahl has an interest in and to a twenty-five percent (25%) undivided interest in the Larger Parcel), shall be entitled to file an inverse condemnation proceeding. The only issue in any such inverse condemnation proceeding shall be the amount of just compensation for the Subject Property Interests. Pursuant to the Agreement, the Parties will record a Memorandum of Possession and Use to provide record notice regarding the City's rights to possess and use the Subject Property Interests. K. 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 Possession and Use Agreement. The City Council hereby approves the Possession and Use Agreement Between City of Temecula, Linda D. Huddleston, Trustee, Roxanna M. Hodges, Trustee, Susan D. Renno, Trustee, Foursquare Financial Solutions, Inc., Steven Williams and Brenda Jordon, Successor Co -Trustees, and Howard Omdahl in Connection with I-15/French Valley Parkway Improvements — Phase II (Portions of APN 910- 100-018) in substantially the form attached, with such changes as the City Manager and Owners may mutually agree to that are approved by the City Attorney's Office. Section 3. Environmental Analysis. The environmental effects of the acquisition and proposed use of the Subject Property Interests were studied as an integral part of the Mitigated 3 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 and proposed use 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 and use 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 the Owners and Omdahl 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, Memorandum of Possession and Use, 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. Matt Rahn, Mayor ATTE Rani ohl, City Clerk [SEAL] 1 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. 2022-16 was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 22nd day of February, 2022, by the following vote: AYES: 5 COUNCIL MEMBERS: Alexander, Edwards, Rahn, Schwank, Stewart NOES: 0 COUNCIL MEMBERS: ABSTAIN: 0 COUNCIL MEMBERS: ABSENT: 0 COUNCIL MEMBERS: None None None Randi Johl, City Clerk 5