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Home My WebLink AboutSPJT Minutes 2000-06-05SRRA/SRCC MINUTES (Special Jt., 6/5/2000 Page 1 IN THE COUNCIL CHAMBER OF THE CITY OF SAN RAFAEL, MONDAY, JUNE 5. 2000, AT 7:30 PM Special Joint Meeting: Present: Albert J. Boro, Chairman/Mayor San Rafael Redevelopment Agency Barbara Heller, Member/Councilmember San Rafael City Council Cyr N. Miller, Member/Councilmember Gary 0. Phillips, Member/Councilmember Absent: Paul M. Cohen, Member/Councilmember Also present: Rod Gould, Executive Director/City Manager Gary T. Ragghianti, Agency Attorney/City Attorney Jeanne M. Leoncini, Agency Secretary/City Clerk SPECIAL JOINT PUBLIC HEARING TO APPROVE THE SALE AND LEASE OF EXCESS PROPERTIES ADJACENT TO ANDERSEN DRIVE BETWEEN BELLAM BOULEVARD AND LINDARO STREET (RA) - File (SRCC) 2-7 x (SRCC) 2-8 x (SRRA) R-246 Chairman/Mayor Boro opened the public hearing, and asked for the staff report. Senior Redevelopment Specialist Stephanie Lovette explained this issue involved the sale and lease of nine remnant parcels, which were left over from the Andersen Drive extension project. She stated staff was recommending all the parcels be sold or leased to the adjacent property owners. Ms. Lovette reported an appraisal had been done for all of the properties, and staff was suggesting the sale and lease rates be at the appraised rates. Ms. Lovette stated there had been one change from the information in the staff report, explaining the Soderstroms', who originally wanted to lease their property on Duffy Place, would now like to purchase it. She noted the original appraisal had been for either the lease or purchase of the property. Ms. Lovette reported staff had discussed the issue with the Public Works Department, and they were not concerned about the purchase, noting they would obtain an easement from the Soderstroms' to keep the storm drain clear. In addition, Ms. Lovette noted the Lazzarinis' were in the process of selling their property, and the new owners may not want the lease, they may want to purchase, which would provide a little more money to the Agency up front, rather than in annual lease payments. Chairman/Mayor Boro asked, with regard to Exhibit "B" of the chart, if the $6,988 would move over into the "Purchase" column? Ms. Lovette stated that was correct, explaining the total purchase amount would be $69,000. She note that if the Lazzarini property were to be purchased rather than leased, it would also move over to the "Purchase" column, and the purchase amount would be $19,176. Chairman/Mayor Boro asked if, in the interim, it was staff's recommendation to go with the lease on the Lazzarini property? Ms. Lovette stated that was correct: however, she reported the sale of the Lazzarini property had only occurred on Friday, and in speaking with Mr. Lazzarini, he had suggested staff speak with the people who purchased his property, as they had not yet made the decision of whether they wanted to go with the lease or purchase. Chairman/Mayor Boro invited public comment. Dave Soderstrom, owner of property adjacent to Andersen Drive, stated that in the past, before the City purchased the old railroad right-of-way for the Andersen Drive project, he had leased the railroad strip for approximately 40 years, in partnership with Mr. Lazzarini. He recalled it had been a 20 foot easement, but now it was only to be 16.4 feet, although the 15 feet from the building to the face of the curb was actually the only usable portion for their access to the buildings. Mr. Soderstrom reported that in the past they had been able to get 40 foot steel delivery trucks in; however, the current reduced width has hampered their operations, and his tenants cannot get the deliveries they have had in the past. Mr. Soderstrom also reported that in the past few months he had to pave this strip himself, where the City did not finish the job, at a cost of approximately $7,000. Mr. Soderstrom requested the width be reduced from 16.4 feet to 15 feet, which is their usable area, pointing out that the curb, fencing and landscape strip were City improvements, and he did not believe they should have to purchase that. He asked that the lot lines be drawn from the building to the face of the curb, which would reduce the square footage by approximately 750 square feet, for a total of 8,030 square feet, down from the original 8,790 square feet. Mr. Soder$trom stated that in the mid -50s, his company donated several thousand square feet to the City of San Rafael for Duffy Place, which is a City street that has supported several businesses through the years, from which the City has generated many thousands of tax dollars. He believed that might be worthy of the Agency Members' consideration. Mr. Soderstrom stated the Dave Tattersol 1999 appraisal report was quite comprehensive: however, it did not address all the negative issues regarding this remnant property parcel, including the lack of parking, the fact that it is non -buildable, there is no revenue derived from it, it is taxable, and it must be maintained, except for the fence, which Mr. Soderstrom felt the City should be responsible for, as it was one of the City's improvements. SRRA/SRCC MINUTES (Special Jt.) 6/5/2000 Page 1 SRRA/SRCC MINUTES (Special Jt., 6/5/2000 Page 2 Mr. Sod rstrom stated that due to these considerations, they were prepared to offer the City $38,303.10, which was 60% of the appraised value at $7.95 per square foot. He asked the Agency to consider this request, which he believed was a fair price for a piece of land they used to lease for approximately $600.00 annually. He pointed out they now had reduced use because the parcel is not as wide as it was, and the quality of life has been reduced there. Chairman/Mayor Boro stated a purchase price could not be negotiated during this meeting, explaining that if Mr. Soderstrom was not happy with the recommendation, that parcel would be removed from the action being taken by the Agency/Council, and staff would negotiate further with him. Mr. Soderstrom agreed, stating he wanted his position to be made clear in the record. Chairman/Mayor Boro asked if Mr. Soderstrom was currently paying rent to the City on this property? Mr. Soderstrom stated he was not. Larry Prell, partner in Market Transell TD, stated they were the new owners of 45 Duffy Place, which they purchased from Mr. Lazzarini. Mr. Prell noted it had only been within the last 90 days that they had learned of the situation regarding the property behind their building. He stated they had questions regarding the completion of the road, because they have noticed the curb does not continue, it stops at Mr. Soderstom's property. He stated the City had not completed the road nor the curb, which was causing a spillage from the planter beds onto the property, and this will be an ongoing problem unless something is done about it. He acknowledged he did not know what the remedy would be, stating it was more a question of whether there had been a plan and something was left unfinished, or if that was the way it was meant to be. He reported Mr. Lazzarini had already spent approximately $15,000 for paving. Mr. Prell stated he was also concerned that Mr. Soderstrom was paying $7.95 per square foot while he was quoted $9.85, and asked if there was a reason for that. He noted he had seen the appraisal, but did not understand how one property, which is adjacent to another that dead -ends into an alley, would be worth less than another. Chairman/Mayor Boro suggested, since Mr. Prell is a new property owner, that his item also be removed from the action now before the Redevelopment Agency and City Council, and that staff meet with Mr. Prell to discuss his issues, and return when an agreement has been reached. There being no further public comment, Chairman/Mayor Boro closed the public hearing. SAN RAFAEL REDEVELOPMENT AGENCY: 1. RESOLUTION RECOMMENDING THE CITY COUNCIL APPROVE THE SALE AND LEASE OF PROPERTIES OWNED BY THE REDEVELOPMENT AGENCY ADJACENT TO ANDERSEN DRIVE BETWEEN BELLAM BOULEVARD AND LINDARO STREET Member Phillips moved and Member Miller seconded, to adopt the Resolution recommending the City Council approve the sale and lease of properties owned by the Redevelopment Agency. RESOLUTION NO. 2000-17 - RESOLUTION RECOMMENDING THE CITY COUNCIL APPROVE THE SALE AND LEASE OF PROPERTIES OWNED BY THE REDEVELOPMENT AGENCY ADJACENT TO ANDERSEN DRIVE BETWEEN BELLAM BOULEVARD AND LINDARO STREET (Excluding two properties at 45 Duffy Place and 601 Irwin. Owners of these two properties to negotiate with staff re: sale rather than lease). AYES: MEMBERS: Heller, Miller, Phillips & Chairman Boro NOES: MEMBERS: None ABSENT: MEMBERS: Cohen SAN RAFAEL CITY COUNCIL: 1. RESOLUTION AUTHORIZING ECONOMIC DEVELOPMENT DIRECTOR TO EXECUTE AGREEMENTS TO SELL AND LEASE PROPERTIES OWNED BY THE REDEVELOPMENT AGENCY ADJACENT TO ANDERSEN DRIVE BETWEEN BELLAM BOULEVARD AND LINDARO STREET Councilmember Heller moved and Councilmember Miller seconded, to adopt the Resolution authorizing the Economic Development Director to execute agreements to sell and lease properties owned by the Redevelopment Agency. RESOLUTION NO. 10639 - RESOLUTION AUTHORIZING ECONOMIC DEVELOPMENT DIRECTOR TO EXECUTE AGREEMENTS TO SELL AND LEASE PROPERTIES OWNED BY THE REDEVELOPMENT AGENCY ADJACENT TO ANDERSEN DRIVE BETWEEN BELLAM BOULEVARD AND LINDARO STREET. AYES: COUNCILMEMBERS: Heller, Miller, Phillips & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Cohen SRRA/SRCC MINUTES (Special Jt.) 6/5/2000 Page 2 SRRA/SRCC MINUTES (Special Jt., 6/5/2000 Page 3 There being no further business, the meeting was adjourned at 8:10 PM. . �L Js, JEANNE .� �..� EONCINI, -ftTY CLERK/AGENCY SECRETARY APPROVED THIS DAY OF , 2000 MAYOR OF THE CITY OF SAN RAFAEL SRRA/SRCC MINUTES (Special Jt.) 6/5/2000 Page 3