HomeMy WebLinkAboutAgenda Report - October 15, 1997 (106)AGENDA TITLE: Improvement Agreement and Improvement Deferral Agreement for
Lodi Retirement Residence, 2145 West Kettleman Lane
MEETING DATE: October 15, 1997
PREPARED BY: Public Works Director
RECOMMENDED ACTION: That the City Council take the following action with regard to the
Lodi Retirement Residence:
1. Direct the City Manager and City Clerk to execute the improvement agreement and
improvement deferral agreement on behalf of the City.
2. Appropriate funds for necessary reimbursements.
BACKGROUND INFORMATION: This development is located on the north side of Kettleman Lane
and east of the Lodi Town Plaza (Target) Shopping Center as
shown on the attached Exhibit A. The development consists of a
117 private -room retirement complex on a 3.75 acre lot. The
development will provide full-service retirement housing for ambulatory senior citizens.
Lodi Retirement Residence Limited Liability Company, developer of the Lodi Retirement Residence, has
furnished the City with improvement plans, necessary agreements, guarantees, insurance certificates,
and fees for the proposed development. The Development Impact Mitigation Fees have been paid.
In conformance with LMC §16.40, Reimbursements for Construction, the developer is entitled to
reimbursement for an oversize master plan water main ($3,015.48), a major water main crossing
($11,181.94), and excess width street improvements in Kettleman Lane ($22,783.80) installed with the
Lodi Retirement Residence development. The reimbursement for excess street width improvements
includes $8,970.00 for engineering design fees for street frontage improvements for the properties west
of the subject site and east of the Lodi Town Plaza shopping center.
At the outset of this project, staff contacted the adjacent property owners (First Church of the Nazarene
and the Dunscombe family) in an attempt to complete the frontage improvements on Kettleman Lane
between the project site and the shopping center in conjunction with the retirement residence project.
The City obtained the necessary right-of-way for the Dunscombe parcel during recent negotiations for
the purchase of the northerly portion of their property. However, acquisition of right-of-way (19 feet) was
necessary on the church parcel. City staff and the project design engineer, Dillon & Murphy, held
discussions with church representatives and the church pastor regarding the possibility of exchanging
the dedication of the right-of-way for the installation of the street improvements. Initial discussions were
favorable and the project design engineer included the Kettleman Lane street improvement design for
the adjacent parcels in the plans for the retirement residence. During the following months, a new
pastor was assigned to the church and, when the agreement setting forth the terms of the exchange
APPROVED:
H. Dixon Flynn -- CityMa ager
C2145wkt.doc 10/06/97
Improvement Agreement and Improvement Deferral Agreement for
Lodi Retirement Residence, 2145 West Kettleman Lane
October 15, 1997
Page 2
was presented to the church's board of directors, they came forward with a list of new, economically
prohibitive demands to be added to the conditions for the exchange. Copies of the agreement and the
church's response are attached as Exhibits B and C, respectively. Staff made several unsuccessful
attempts to resolve the situation and completion of the frontage improvements on the adjacent
properties with the retirement residence project was ultimately abandoned. If the church undertakes any
major improvement project on their site in the future, dedication of the necessary right-of-way on
Kettleman Lane and Tienda Drive as well as installation of street improvements for both street frontages
will be required at their expense as a condition of the project in conformance with LMC §15.44, Off -Site
Improvements and Dedications. All applicable fees including, but not limited to, development impact
mitigation fees and sanitary sewer lift station fees will also be collected at that time. The engineering
and plan preparation for the Kettleman Lane street improvement work had already been completed by
the project design engineer prior to abandonment of staff's efforts to provide orderly development along
Kettleman Lane. The engineer has provided the City with the improvement plans and autocad file for
this work which could be of use at some future date to accomplish the work. Staff recommends that the
developer be reimbursed for the engineering fees for this design work.
FUNDING: Funding will be provided from the following sources:
1. Development Impact Mitigation Fees - Water Facilities $14,197.42
2. Development Impact Mitigation Fees - Regional Streets $22.783.80
Total $36,981.22
Funding Available: -,c -
Finance 0iiector
Jac L. Ronsko
Publi Works Director
Prepared by Sharon Welch, Associate Civil Engineer
JLR/SAW/lm
Attachments
cc: Senior Civil Engineer
Associate Civil Engineer - Development Services
Associate Civil Engineer Chang
Lodi Retirement Residence Limited Liability Company
Fountainhead
Dillon & Murphy
First Church of the Nazarene
C2145wkt.doc 10/06/97
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CITY COUNCIL
PHILLIP A. PENNINO, Mayor
JACK A. SIEGLOCK
Mayor Pro Tempore
KEITH LAND
STEPHEN J. MANN
DAVID P. WARNER
CITY OF LODI
Mr. Steve Benjestorf
First Church of Nazarene
2223 W. Kettleman Lane
Lodi, California 95242
CITY HALL, 221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
(209) 333-6706
FAX (209) 333-6710
January 17, 1997
SUBJECT: Street Improvements
Tienda Drive and Kettleman Lane
EXHIBIT B
H. DIXON FLYNN
City Manager
JENNIFER M. PERRIN
City Clerk
RANDALL A. HAYS
City Attorney
In September 1996, Richard Prima, City Engineer, and Sharon Welch, Associate Civil
Engineer, from our office and Cecil Dillon of Dillon & Murphy discussed with the former
pastor of the Church, Charles Plumb, a mutually beneficial arrangement between the
City and the Church to allow the construction of street improvements (curb, gutter,
sidewalk, paving) along the Kettleman Lane and future Tienda Drive frontages of the
Church property. The purpose of this letter is to provide you with information regarding
that discussion and reach a formal agreement regarding the street improvements.
Street improvements are -normally required when a property is developed. However, in
some circumstances where the street alignments front existing developed properties,
the City in the past has worked with the property owners to install the street
improvements in exchange for the required street right-of-way in order to provide for
systematic development of the street.
As you are probably aware, the adjacent parcel to the east is to be developed as a
congregate care facility. Development of that parcel will include dedication of right-of-
way and the installation of street improvements along Kettleman Lane and an
agreement for the installation of street improvements along the future Tienda Drive
when adjacent properties develop. The City would like to install street improvements
along the Kettleman Lane frontage of the Church property in conjunction with this
project. The City will pay for the cost of the improvements if the Church is willing to
dedicate the necessary right-of-way (19 feet). In addition, the City is willing to pay for
the cost of the street frontage improvements along Tienda Drive when the adjacent
properties develop in exchange for the necessary right-of-way in the future street
alignment (34 feet).
Mr. Plumb indicated that the Church would be interested in participating in this
arrangement and the City Council has directed staff to prepare the necessary
agreement and easement deed. Enclosed is the original and two copies of an
Agreement setting forth the terms discussed above and the original and one copy of a
street easement deed for the necessary right-of-way on Kettleman Lane and Tienda
EXHIBIT B
First Church of Nazarenf,
January 17, 1997
Page 2
Drive. The original and one copy of the agreement and the original easement deed
need to be signed by the property owner(s), notarized by a Notary Public and returned
to our office.
We also understand that you are interested in public sewer service. The City is
currently working on plans for a lift station to provide service to your area. We will be
contacting you with regard to that project under separate cover in the very near future.
With regard to the street improvements, plans have been submitted for the adjacent
development to the east so time is of the essence. Please review, sign and return the
enclosed documents as soon as possible. If you have any questions, please contact
me at (209) 333-6800 ext. 659 or Richard Prima, City Engineer, at (209) 333-6759.
Sharon A. Welch
Associate Civil Engineer
Enclosures
cc: City Engineer
WHEN RECORDED, RETURN TO:
City Clerk
City of Lodi
221 West Pine Street
Lodi, CA 95240
AGREEMENT
EXHIBIT B
THIS AGREEMENT, entered into this day of , 1997, by and between
FIRST CHURCH OF NAZARENE, hereinafter "Owner", and the CITY OF LODI., a
municipal corporation, hereinafter "City".
WITNESSETH:
WHEREAS, Owner is the owner of that certain parcel of land described as
"A portion of the Southeast Quarter of Section 10, Township 3 North, Range 6
East, Mount Diablo Base and Meridian and being more particularly described as
the 2.98 acre parcel as filed for record on the Map of Survey on March 23, 1971 in
Book 21 of Surveys, at page 26, San Joaquin County Records."
and known as 2223 W. Kettleman Lane (APN 027-040-017); and,
WHEREAS, Owner and City both desire to provide for orderly development of street
improvements to Kettleman Lane and Tienda Drive; and,
WHEREAS, the adjacent parcel to the east (APN 027-040-063) is being developed and
said development includes street improvements to Kettleman Lane and provisions
for future street improvements to Tienda Drive; and
WHEREAS, it most economical to construct street improvements on Kettleman Lane
in conjunction with that project;
NOW, THEREFORE, BE IT AGREED AS FOLLOWS:
1. Owner agrees to dedicate by separate street easement deed, at no cost to the
City, the right-of-way necessary for the installation of street improvements on
Kettleman Lane and Tienda Drive. Said right-of-way consists of the north 34 feet
and south 19 feet of the above described parcel.
2. City agrees, in exchange for the dedication, to construct, or cause to be
constructed, and pay for the street frontage improvements (curb, gutter, sidewalk,
street lights and paving) along the Kettleman Lane and Tienda Drive frontages of
the subject parcel. The construction of the improvements will be done at the time
of development of the adjacent undeveloped parcels or at such time as deemed
appropriate by the City. OWNER shall cooperate with City in the event City wishes
to install all or a portion of these improvements in conjunction with the
development of adjacent parcels.
EXHIBIT B
3. Owner and City agree that utilities in the Tienda Drive right-of-way will be installed
by the City or adjacent property developer at the time of installation of street
improvements and a reimbursement agreement prepared requiring the Owner to
pay their fair share of the utility construction upon connection to the utility.
4. At the time of construction of the street improvements on Tienda Drive, owner
agrees to provide temporary storm drainage facilities on-site or connect the on-site
storm system to the public storm drainage system and pay the appropriate
construction costs and fees.
5. Owner and City agree that time is of the essence. This agreement may be
recorded and shall inure to the benefit of the heirs, successors, or assigns of
Owner. In connection therewith, notice may be mailed to Owner at:
6. Herein is set forth the entire agreement between the parties. The performance of
these conditions constitutes full performance and shall relieve City of all further
obligations or claims.
7. In the event either party hereto breaches the terms, conditions and covenants of
this Agreement, then, the prevailing party in any suit to enforce this Agreement or
restrain the breach thereof, shall in addition to any other relief or damages
awarded, be entitled to a reasonable attorney's fee and all costs of suit to be set
and determined by any court of competent jurisdiction and added to any judgment
obtained.
IN WITNESS WHEREOF, the parties hereto have set their hands the day and year first
hereinabove mentioned.
CITY OF LODI, a Municipal Corporation OWNER
By. H. Dixon Flynn, City Manager
ATTEST:
Jennifer Perrin, City Clerk
APPROVED AS TO FORM:
Randall A. Hays, City Attorney
...EXHIBIT C
1*4AQ 311997*
CITY OF LOD]
March 26,1997 PUBLIC WORKS DEPARTMENT
Associated Civil Engineers
City of Lodi
221 W. Pine St.
Lodi, CA 955240
Re: Offer of Settlement of the Lodi Nazarene Church
re Proposed Taking by City of Parcels of Land
Gentlemen:
At the recent meeting of the Board of Directors of the Lodi
Nazarene Church, it was the unanimous vote of the Board that:
The Church is willing to deed the requested property to the
City of Lodi, for the projected street improvements, on the following
conditions:
That the City of Lodi pay the present current market value
for the requested parcels of property to wit:
I. For the portion of land to be taken from the southerly
portion, or front of the church -- along Kettlemen Lane, that the City
pay the sum of $4.00 per square foot. This parcel consists of a strip
250 feet wide and 19 feet in depth for a total of 4,750 square feet. At
$4.00 per square foot, this would fix the fair market value of the
portion of the Church property at $19,000.
1
EXHIBIT C
2. For that portion of land sought by the City from the
northerly portion, or rear of the church -- consisting of a strip 250 feet
wide and 34 feet deep, consists of the taking of an additional 8,500
square feet of church property. The fair market value of said
property is $3.00 per square feet -- therefore placing the total value of
said property which the City desires at 25,500.
3. In addition thereto, the Church is also requesting
severance damages of $10,000 for the lois of all the parking space
presently existing in the front of the church, plus additional noise and
short-term gridlock.
4. Also, as part of the settlement, the Church is requesting
that Tienda Drive be extended up to the Church's property in order
for the Church to construct a driveway in order to eliminate the
gridlock as a result of this project. We would need this accomplished
within 90 days from the commencement of the project.
5. Also, as part of the settlement, the Church requests an
exemption from fees relating to the sewer -lift station.
6. And finally, the Church does not agree to replace the
drainage pond existing in the rear portion of the Church property.
This, therefore, fixes the Church's total demand for deeding
the desired parcel of land to the City at $54,500, as well as including.
lift station fees, and drainage pond exemptions.
The Church, in arriving at the value of its claim, has taken
into consideration comparative values which have taken place in the
immediate area -- which showed that comparable sales along
Kettlemen Lane ranged between $140,000 to $150,000 per acre. That
2
EXHIBIT C
portion of property which have direct frontage to Kettlemen Lane
have a fair market value of between $3.00 to $4.00 per square foot.
The Church is also aware that the City has secured waivers
from owners of certain property along Kettlemen Lane because they
stand to see the value of their potential commercial property being
enhanced by the property street improvements. Unfortunately, the
Church, being a non-profit organization, will, in effect, suffer certain
losses or detriments from the proposed improvements, namely:
1. It will lose all parking area which presently exists in the
front of the Church: This will create a hardship to some of the elderly
members of the Church who have difficulty walking.
2. With the widening of Kettlemen Lane, and the taking of
some of the Church's property in the front, which the sanctuary faces,
will mean increased noise and sounds during regularly scheduled
church services.
3. The increased flow of traffic on Kettlemen Lane will
make egress and ingress to Church property more hazardous not to
mention the front entrance limitations due to this project.
4. By surrendering 8,500 square feet to the rear of the
Church, will again impact parking areas and areas for contemplated
church expansion and/or improvements -
We trust the City will not look upon the Church demands as
unreasonable or that it is endeavoring to impede the City's plans to
improve its overall traffic problems to and from the City. The Church
is perfectly happy with the present situation of its facility and
property. All it seeks is fair compensation of the property the City
3
EXHIBIT C
desires to take via your proposed condemnation proceedings if the
Church's offer to settle is rejected.
M
Respectfully submitted,
f
STEVE BENJES OR -
Chairman of the Trustee Committee
First Church of the Nazarene, Lodi
4
CITY COUNCIL
PHILLIP A. PENNING, Mayor
JACK A. SIEGLOCK
Mayor Pro Tempore
KEITH LAND
STEPHEN J. MANN
DAVID P. WARNER
CITY OF LODI
CITY HALL, 221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
(209) 333-6706
FAX (209) 333-6710
October 8, 1997
Lodi Retirement Residence Ltd. Liability Co
Attn: Bruce D. Thorn
c/o Colson & Colson Construction Co.
2250 McGilchrist St. S. E., Ste. 200
Salem, OR 97302
Dillon & Murphy Engineering
Attn: Cecil Dillon
P. O. Box 2180
Lodi, CA 95241-2180
H. DIXON FLYNN
City Manager
ALICE M. REIMCHE
City Clerk
RANDALL A. HAYS
City Attorney
Founta!nhead
Attn: Joseph K. Handel
1826 W. Kettleman Ln., Ste. D
Lodi, CA 95242
First Church of the Nazarene
2223 West Kettleman Lane
Lodi, CA 95242
SUBJECT: Improvement Agreement and Improvement Deferral Agreement for
Lodi Retirement Residence, 2145 West Kettleman Lane
Enclosed is a copy of background information on an item on the City Council agenda of
Wednesday, October 15, 1997. The meeting will be held at 7 p.m. in the
City Council Chamber, Carnegie Forum, 305 West Pine Street.
This item is on the consent calendar and is usually not discussed unless a
Council Member requests discussion. The public is given an opportunity to address
items on the consent calendar at the appropriate time.
If you wish to write to the City Council, please address your letter to City Council,
City of Lodi, P. O. Box 3006, Lodi, California, 95241-1910. Be sure to allow time for the
mail. Or, you may hand -deliver the letter to City Hall, 221 West Pine Street.
If you wish to address the Council at the Council Meeting, be sure to fill out a speaker's
card (available at the Carnegie Forum immediately prior to the start of the meeting) and
give it to the City Clerk. If you have any questions about communicating with the
Council, please contact Alice Reimche, City Clerk, at (209) 333-6702.
If you have any questions about the item itself, please call Sharon Welch at
(209) 333-6800
\IApa
Ronsko
Vorks Director
cc: City Clerk
NC2145WK.DOC