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Home My WebLink AboutAgenda Report - June 20, 2001 E-13�yOF� a COUNCILCITY OF LODI qC/FORS AGENDA TITLE: Adopt a Resolution Approving the Agreement with GFLIP III, L.P., a California Limited Partnership, for the Purchase of City -Owned Property West of and Adjacent to 1255 South Beckman Road, and Direct the City Manager and City Clerk to Execute the Agreement on Behalf of the City; and Appropriate Funds for Reimbursements to be Credited Against the Purchase Price of the Property MEETING DATE: June 20, 2001 PREPARED BY: Public Works Director RECOMMENDED ACTION: That the City Council adopt a resolution approving an agreement with GFLIP III, L.P., a California Limited Partnership, for the purchase of City - owned property west of and adjacent to 1255 South Beckman Road, direct the City Manager and City Clerk to execute the agreement on behalf of the City, and appropriate funds for the reimbursement to be credited against the purchase price of the property. BACKGROUND INFORMATION: Over the course of the last several years, GFLIP III, L.P., a California Limited Partnership (Geweke), has held discussions with City staff regarding the development of their properties located east of Highway 99 and north of Kettleman Lane. Since Beckman Road was to be realigned to the east, the proposed development plan included the purchase of City -owned property containing the drainage canal and old Beckman Road right-of-way west of and adjacent to their property. The intent was to incorporate the City -owned property (2.298 acres) into the project site for an auto dealership to be located at 1255 South Beckman Road (Exhibit A). In 1998, GFLIP III dedicated the street easement necessary for the realignment of Beckman Road, at no cost to the City, in order to facilitate the City's Highway 12 - Kettleman Lane/SR 99 project that included the construction of the Beckman Road improvements (Exhibit A). The street easement dedication included excess street width of 6 feet for which GFLIP III is entitled to reimbursement by the City in conformance with LMC §16.24. Additionally, in 2000, in order to render the drainage canal property developable, GFLIP III installed, at substantial expense (approximately $190,000.00), a storm drain pipe and appurtenant structures and backfilled the drainage canal under the terms of Encroachment Permit No. 200159 as shown on the approved improvement plans Drawing Nos. 00D030 through 00D033 and 00D084, which are on file in the Public Works Department. A building permit application (133711) has been submitted for the construction of the above-mentioned auto dealership on the property located at 1255 South Beckman Road. The purchase of the City -owned property is required before the project can proceed. The roadway was legally abandoned as a public right-of-way by Council action on May 2, 2001. The City will retain a public utility easement over the entire property. An appraisal for the auto dealership site provided by GFLIP III entitled "Appraisal of 4.48± Acres North of Kettleman Lane on Beckman Road, Lodi, California" prepared by Duncan, Duncan & Associates and APPROVED: Dixon Flynn -- it anager CSELL1255SBECKMAN 06/13/01 Adopt a Resolution Approving the Agreement with GFLIP III, L.P., a California Limited Partnership, for the Purchase of City -Owned Property West of and Adjacent to 1255 South Beckman Road, and Direct the City Manager and City Clerk to Execute the Agreement on Behalf of the City; and Appropriate Funds for Reimbursements to be Credited Against the Purchase Price of the Property June 20, 2001 Page 2 dated May 17, 2000, was used to establish the value of the City -owned property at $5.50 per square foot or $239,580.00 per acre. The appraisal was for financing purposes and is probably high. The value was reduced by ninety-five percent (95%) to $11,980.00 per acre to reflect the substantial loss of value due to the public utility and street easement encumbrances on the properties. As mentioned above, GFLIP III is entitled to be paid for excess street width (6 feet) in conjunction with the street easement dedication for the Beckman Road alignment. The terms of the agreement for the purchase of City -owned property include a reduction in the purchase price to cover the excess width street easement dedication (6 feet) in Beckman Road. The amount of the reduction, based on the land value established above, is $2,540.00. An appropriation of $2,540.00 from the Local Streets Development Impact Mitigation Fee Fund is necessary to allow the full purchase price to be deposited to the Street Fund upon receipt of payment from GFLIP III. The agreement for the purchase of the City -owned property has been executed by GFLIP III. Reimbursement to the City for the improvements in Beckman Road that benefit the GFLIP III property will be made under the terms of a separate agreement that has also been executed by GFLIP III and will be brought to Council for approval by separate action. FUNDING: Development Impact Mitigation Fees (Streets -Local) $2,540.00 Funding Available: '� -� Vicky WAthie, Finance Direciror ILAK Richard C. Prima, Jr. Public Works Director Prepared by Sharon A. Welch, Senior Civil Engineer RCP/SAW/lm Attachment cc: Randy Hays, City Attorney Sharon Welch, Senior Civil Engineer GFLIP III, L.P. CSELL1255SBECKMAN � e d•"CITY OF LODI EXHIBIT 1 • PUBLIC WORKS DEPARTMENT 0 D D p m A0 ` 4 QZtI Ir/1 yn7ri e ! < W if INIA :,•1' 4 L Vd -.: ati win zt l ; Ino sr ..a.G ., ;i s I I NrwlllllY ' I CT-'JU,G YC�I'YfIZ Y `w CA 3. om b ;: 1_IA fI:C Ct $ a y,1? ZQA - -- KEWLEMAN LANE-- LEGEND 6 -FT EXCESS STREET WIDTH — — — — OLD BECKMAN ROAD ALIGNMENT & DRAINAGE CANAL RESOLUTION NO. 2001-162 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE AGREEMENT WITH GFLIP III, L.P., A CALIFORNIA LIMITED PARTNERSHIP, FOR THE PURCHASE OF CITY -OWNED PROPERTY WEST OF AND ADJACENT TO 1255 SOUTH BECKMAN ROAD, AND APPROPRIATE FUNDS FOR THE REIMBURSEMENTS TO BE CREDITED AGAINST THE PURCHASE PRICE OF THE PROPERTY ------------------------------------------------------------------ ------------------------------------------------------------------ BE IT RESOLVED, that the Lodi City Council approves an agreement with GFLIP Ili, L.P., a California Limited Partnership, for the purchase of City -owned property west of and adjacent to 1255 S. Beckman Road and directs the City Manager and City Clerk to execute the agreement on behalf of the City; and BE IT FURTHER RESOLVED, that the Lodi City Council appropriates $2,540.00 from the Development Impact Mitigation Fees (Streets -Local) for the reimbursement to be credited against the purchase price of the property. Dated: June 20, 2001 ------------------------------------------------------------------ ------------------------------------------------------------------ I hereby certify that Resolution No. 2001-162 was passed and adopted by the City Council of the City of Lodi in a regular meeting held June 20, 2001, by the following vote: AYES: COUNCIL MEMBERS — Hitchcock, Howard, Land, Pennino and Mayor Nakanishi � • �I�P[�I�hlu1:3�Z•�i;C•TiL� ABSENT: COUNCIL MEMBERS — None USAN BLA\ S TON S J. City Clerk 2001-162 CITY COUNCIL ALAN S. NAKANISHI, Mayor CITY O F L O D I PHILLIP A. PENNINO Mayor Pro Tempore PUBLIC WORKS DEPARTMENT SUSAN HITCHCOCK EMILY HOWARD CITY HALL, 221 WEST PINE STREET KEITH LAND P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209)333-6706 FAX (209) 333-6710 EMAIL pwdept@lodi.gov http:\\www.lodi.gov June 15, 2001 GFLIP III, L. P. P.O. Box 1210 Lodi, CA 95241 H. DIXON FLYNN City Manager SUSAN J. BLACKSTON City Clerk RANDALL A. HAYS City Attorney RICHARD C. PRIMA, JR. Public Works Director SUBJECT: Adopt a Resolution Approving the Agreement with GFLIP III, L. P., a California Limited Partnership, for the Purchase of City -Owned Property West of and Adjacent to 1255 South Beckman Road, and Direct the City Manager and City Clerk to Execute the Agreement on Behalf of the City; and Appropriate Funds for Reimbursements to be Credited Against the Purchase Price of the Property Enclosed is a copy of background information on an item on the City Council agenda of Wednesday, June 20, 2001. 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 Susan Blackston, City Clerk, at (209) 333-6702. If you have any questions about the item itself, please call Sharon Welch, Senior Civil Engineer at (209) 333-6800, extension 2659. Richard C. Prima, Jr. Public Works Director RCP1pmf Enclosure cc: City Clerk NCSELL1255SBECKMAN