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HomeMy WebLinkAboutRA Minutes 2002-09-03SRRA MINUTES (Regular) 09/03/2002 Page 1 IN THE COUNCIL CHAMBER OF THE CITY OF SAN RAFAEL, TUESDAY, SEPTEMBER 3, 2002 AT 7:30 PM Regular Meeting: San Rafael Redevelopment Agency Also Present: Rod Gould, Executive Director Gary T. Ragghianti, Agency Attorney Jeanne M. Leoncini, Agency Secretary OPEN SESSION — COUNCIL CHAMBER — 7:00 PM: Vice -Chair Cohen announced Closed Session item. Present: Paul M. Cohen, Vice -Chair Barbara Heller, Member Cyr N. Miller, Member Gary O. Phillips, Member Absent: Albert J. Boro, Chairman CLOSED SESSION — CONFERENCE ROOM 201 — 7:00 PM: Conference with Real Property Negotiator (Government Code Section 54956.8) Property Street Address: 915 B Street, San Rafael (APN 11-255-07) 919 B Street, San Rafael (APN 11-255-06) Empty Lots (APN 11-255-09, 15) Agency Negotiators: San Rafael Redevelopment Agency: Nancy Mackle Negotiating Parties: Wells Fargo Bank, Owner Under Negotiation: Price and Terms re: Parking Structure Vice -Chair Cohen announced that no reportable action was taken. ORAL COMMUNICATIONS OF AN URGENCY NATURE: 7:55 PM None CONSENT CALENDAR: Member Miller moved and Member Phillips seconded, to approve the following Consent Calendar items: 2 3 ITEM RECOMMENDED ACTION Approval of Minutes of Regular Meeting of Monday, August Approved as submitted. 19, 2002 (AS) Monthly Investment Report for Month Ending July, 2002 (MS) — File R-123 AYES: MEMBERS: Heller, Miller, Phillips NOES: MEMBERS: None ABSENT: MEMBERS: Chairman Boro Accepted Investment Report for month ending July, 2002, as presented. and Vice -Chair Cohen SRRA MINUTES (Regular) 09/03/2002 Page 1 SRRA MINUTES (Regular) 09/03/2002 Page 2 AGENCY CONSIDERATION: 4. RESOLUTION FINDING THAT THE PUBLIC USE AND NECESSITY REQUIRE THE ACQUISITION OF CERTAIN REAL PROPERTIES (APN: 11-255-07 & 15 AND PORTIONS OF 11-255-06 & 09) IN SAN RAFAEL, MARIN COUNTY, FROM WELLS FARGO BANK AND AUTHORIZING THE COMMENCEMENT OF AN EMINENT DOMAIN ACTION TO ACQUIRE THOSE PROPERTIES (RA) FILE R-449 x R-430 x R-140 #8 Economic Development Director Nancy Mackle reported that for the past few years, staff has been analyzing the issue of parking downtown, and the relevant sections of some prior staff reports addressing the need for parking downtown and the site selection for a parking structure are attached to the staff report. She explained that one of the property acquisitions required for the parking structure is from Wells Fargo Bank and staff has been working since January, 2002, in good faith negotiations; however, an agreement on price has not been reached to date. Ms. Mackle recommended a resolution be adopted finding that the public use and necessity require the acquisition of these properties, as detailed in the staff report. Ms. Mackle noted that staff would continue to work with Wells Fargo in an attempt to negotiate and settle on price as soon as possible. She indicated her availability to answer questions and noted that representatives of Wells Fargo and their legal counsel were also present. Margo Bradish, Attorney, Brobeck, Pheleger & Harrison LLP, San Francisco, indicated she was present to represent Wells Fargo Bank in this matter. Ms. Bradish stated she hoped Agency would agree it was in both parties' interests to attempt to resolve this issue through negotiations and not resort to litigation. In this regard, she reported the parties had engaged in significant negotiations to date to try to resolve their differences and on the positive front, had made significant progress on some of the non -monetary aspects. She indicated that unfortunately, to date, the parties had been unable to reach agreement on the monetary aspects, the subject of this evening's discussion. Ms. Bradish explained that in the acquisition process there are two components that need to be addressed: the value of the take of the property itself as well as the severance damage to the remainder of the property through the notion in the law that the whole is sometimes greater than the sum of its parts. She stated that with respect to the take parcel, staff had an appraisal completed which relies in large part, although not entirely, on comparable sales figures to value the property being taken and Ms. Bradish was concerned that those comparable sales do not reflect true comparables, in that they are not located in downtown and some are as many as four years old. In addition, Ms. Bradish stated that with respect to the severance damage component of the appraisal completed on the Agency's behalf, there is concern that while the Agency staff appears to have acknowledged that an income approach is an appropriate one to take in this circumstance, that the Agency's valuation of severance damages has not been revised to take this into account; therefore, the $9,000 appraised severance value does not truly reflect the decrease in the value to the remaining Wells Fargo property from having all of the parking and land taken away. Ms. Bradish indicated they continue to be hopeful that agreement can be reached on price once the appropriate methodologies are taken into consideration; therefore, she respectfully requested that prior to taking action on a Resolution of Necessity and going down a litigation path, that staff be directed to revisit its appraisal methodology to take these issues into account in the hope of arriving at an agreement on price, as has been achieved on some of the other issues. SRRA MINUTES (Regular) 09/03/2002 Page 2 SRRA MINUTES (Regular) 09/03/2002 Page 3 Vice -Chair Cohen inquired whether it was Ms. Bradish's view that taking this action would preclude further negotiations. Responding, she indicated her belief that it would not preclude further negotiations, rather it would cause the parties to divert both attention and resources to litigation in a circumstance she deemed to be unnecessary. She stated that Wells Fargo had already made clear, and, in fact, has entered into a letter agreement with the Agency indicating they would grant possession of the property, so a problem is not anticipated. She noted December was the date for commencement of construction of the parking lot and Wells Fargo does not intend to hold up the Agency's possession of the property. Member Phillips stated it was his understanding the project is time sensitive and as such, it is necessary to move forward with the staff's recommendation and at the appropriate time he would offer a motion to accomplish this. Member Phillips moved and Member Miller seconded, to adopt the Resolution. RESOLUTION NO. 2002-21 — RESOLUTION FINDING THAT THE PUBLIC USE AND NECESSITY REQUIRE THE ACQUISITION OF CERTAIN REAL PROPERTIES (APN 11-255-07 & 15 AND PORTIONS OF 11-255- 06 & 09) IN SAN RAFAEL, MARIN COUNTY, FROM WELLS FARGO BANK AND AUTHORIZING THE COMMENCEMENT OF AN EMINENT DOMAIN ACTION TO ACQUIRE THOSE PROPERTIES Vice -Chair Cohen indicated it was also his understanding from staff that this does not preclude further negotiations and is not the intent. He explained valuation or methodology were not scheduled for discussion this evening; however, it was the Agency Board's intention to keep the project moving along and this motion accepts staff's recommendation to take this step but in no way directs staff to cease efforts to reach agreement with Wells Fargo. AYES: MEMBERS: Heller, Miller, Phillips and Vice -Chair Cohen NOES: MEMBERS: None ABSENT: MEMBERS: Chairman Boro AGENCY MEMBER REPORTS: 5. a) Upcoming Events: File R-181 x R-423 x R-140#8 Economic Development Director Nancy Mackle announced there would be a special observance of September 11 on that particular regular Brown Bag Lunch Day. It will be entitled "American Spirit in Unity and Song" and will feature an American Veterans' Group who will present a flag, a moment of silence, and music to mark this special day. Ms. Mackle issued a reminder that the Cycling Classic takes place downtown on Saturday, September 14, 2002. There being no further business, the San Rafael Redevelopment Agency meeting was adjourned at 8:02 PM. JEANNE M. LEONCINI, Agency Secretary SRRA MINUTES (Regular) 09/03/2002 Page 3