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HomeMy WebLinkAbout2022-17 CC ResolutionRESOLUTION NO.2022-17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN SETTLEMENT, DISMANTLE COSTS, AND LOSS OF ADVERTISING RENT AGREEMENT BETWEEN THE CITY OF TEMECULA AND LAMAR CENTRAL OUTDOOR, LLC IN CONNECTION WITH THE I-15/FRENCH VALLEY PARKWAY IMPROVEMENTS — PHASE II 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. The City is acquiring for the construction of Phase II certain real property interests in fee for right of way purposes, footing easements, and temporary construction easements from the real properties located in the City of Murrieta identified as Riverside County Tax Assessor Parcel Numbers 910-060-002 and 910-060-004 (the "Property Interests"). The City's acquisition of the Property Interests and construction of Phase II will impact two outdoor advertising structures identified as Sign Number 33321 and Sign Number 33322 ("Subject Signs") located on a portion of the Property Interests. The Subject Signs are owned by Lamar Central Outdoor, LLC, a Delaware limited liability company dba Lamar Advertising Company ("Lamar"). F. Pursuant to Government Code Section 7267.2, on August 10, 2021, the City Council set just compensation for the interests of Lamar in and to the Subject Signs, including compensation for the structures, leasehold interests in connection with the Subject Signs, easement interests, if any, in connection with the use of the portions of the Property Interests on which the Subject Signs are located, and goodwill relating to said Subject Signs at the fair market value estimates as determined by the City's independent appraisers. The City Council also authorized the Director of Public Works/City Engineer to make offers and negotiate the acquisition of said interests of Lamar in and to the Subject Signs. G. The City extended to Lamar a written offer dated October 22, 2021 pursuant to Government Code Section 7267.2. The offer was based on the independent fair market value appraisals prepared on behalf of the City that assumed that it was not feasible for Lamar to relocate the Subject Signs. The Parties negotiated in good faith, but had not reached an Agreement, as of December 14, 2021, regarding the impact of the acquisition of the Property Interests and Phase II on the Subject Signs. H. On December 14, 2021, the City Council of the City of Temecula adopted Resolution No. 2021-69, 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 Real Property Interests in Connection with Outdoor Advertising Structures/Billboards Identified as Sign Number 33321 and Sign Number 33322 Located on Portions of the Real Properties Identified as APNs 910-060-002 and 910-060-004) by at least four -fifths vote of all its members ("Resolution of Necessity"). On January 6, 2022, the City filed a Complaint in Eminent Domain as Riverside County Superior Court Case No. CVSW2200256 to condemn the interests of Lamar in and to Sign Number 33321 and Sign Number 33322 ("Complaint in Eminent Domain"). I. The Parties continued their negotiations after the City's adoption of the Resolution of Necessity. The City has not served the Complaint in Eminent Domain on Lamar based on the agreement reached by the Parties. J. Pursuant to the Agreement, Lamar agrees to take steps to relocate the Subject Signs. In consideration for the payment by City of Dismantle Costs, Rebuilding Costs, and Lost Rent, Lamar agrees to dismantle and remove the Removed Signs within thirty (30) days written notice from the City. This allows the City to proceed with construction of Phase II. The Agreement provides that the City will compensate Lamar for expenses associated with the reasonable, necessary costs for dismantling of the Subject Signs, the rebuilding of the Subject Signs, and the loss of advertising rental income resulting from the required removal of the Subject Signs. The 2 payment for loss of advertising rental income is based on the weekly rate of $3,451.25, representing the weekly rental amount currently received by Lamar less the lease payment paid by Lamar to owners of the Property Interests the City is acquiring. The Agreement recognizes that if, despite Lamar's commercially reasonable efforts, the Subject Signs are not replaced in a timely manner, Lamar will continue to incur losses with respect to advertising revenue. Accordingly, under the Agreement, the City agrees, that in such event, City will deposit into Escrow for the benefit of Lamar an additional advertising loss compensation at the above weekly rate for a period of up to twenty-six (26) weeks. Under the Agreement, the City will deposit into Escrow for the benefit of Lamar up to $812,027.50, consisting of estimated Dismantle Costs ($10,000); the Estimated Rebuilding Costs ($450,000); the Lost Rent Costs for a period up to 78 weeks ($269,197.50), and the Additional Lost Rent Costs, if applicable, for up to an additional 26 weeks ($82,830). 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 Settlement, Dismantle Costs, and Loss of Advertising Rent Agreement. The City Council hereby approves the Settlement, Dismantle Costs, and Loss of Advertising Rent Agreement and Joint Escrow Instructions Between the City of Temecula and Lamar Central Outdoor, LLC in Connection with the French Valley Parkway/I-15 Improvements — Phase II, in substantially the form attached, with such changes as the City Manager and Lamar 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 Property Interests and impact to the Subject Signs 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 Property Interests and impacts to the Subject Signs. 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 1 analysis. These environmental findings are the appropriate findings with respect to the proposed acquisition of the Property Interests and impacts of Phase II on the Subject Signs. 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 Lamar 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, 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 22"d day of February, 2022. ATTEST-, Randi johl, City Clerk [SEAL] Matt Rahn, Mayor n 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. 2022-17 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, Stewart, Schwank NOES: 0 COUNCIL MEMBERS: ABSTAIN: 0 COUNCIL MEMBERS: ABSENT: 0 COUNCIL MEMBERS: None None None Randi Johl, City Clerk 5