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TRANSPORTATION AGENCY FOR MONTEREY COUNTY Memorandum | |
| | | | | | | | | To: | Board of Directors | | From: | Michael Zeller, Director of Programming & Project Delivery | | Meeting Date: | March 22, 2017 | | Subject: | Purchase and Sale Agreements for Rail Property Acquisition |
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| | | | | | | | | RECOMMENDED ACTION: | Purchase and Sale Agreements for Rail Property Acquisition:
- APPROVE the real estate acquisition agreement with Susanne Marie McBride for one parcel for the Rail Extension to Monterey County project for the amount of $756,000;
- APPROVE payment of closing costs and other related expenses not to exceed the amount of $12,000;
- AUTHORIZE the Executive Director to execute the agreement and changes to the agreement if such changes do not increase the Agency’s net costs, subject to approval by Agency Counsel; and
- AUTHORIZE the use of no more than $768,000 from Agency reserve funds for the purchase and escrow, to be reimbursed by Caltrans from Traffic Congestion Relief Program funding budgeted for this project.
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| | | | | | | | | SUMMARY: | | The Agency has been planning the Rail Extension to Monterey County project, and is in the design phase. The Agency has negotiated a settlement offer with the property owner to acquire the property. |
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| | | | | | | | | FINANCIAL IMPACT: | | The Salinas Rail Extension project includes funding for right-of-way acquisition. Staff proposes to use Traffic Congestion Relief Program or Proposition 116 bond funds for the $768,000 in settlement expenses. Agency reserve funds are only to be used for cash flow purposes. The total project budget is estimated at $70 million to $80 million; the total right-of-way phase is estimated to cost $17.4 million. |
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| | | | | | | | | DISCUSSION: | The Transportation Agency for Monterey County is proposing to extend passenger rail service from Santa Clara County south to Salinas. The service is scheduled to start with two round trips, expanding to up to six round trips as demand warrants.
The property in question is approximately 6,435 square feet located at 26 West Market Street in the City of Salinas, California, known as Monterey County Assessor’s Parcel No. 002-172-002. The parcel will be needed for the parking lot planned for the area of the Salinas Rail Station. A Phase I environmental review found no contamination on the property.
The proposed purchase price of $756,000 is an agreed-upon value that is based upon an appraisal performed on the property dated October 17, 2016 prepared by the appraisal group of Overland, Pacific & Cutler. The purchase price includes the contributory value of the buildings and site improvements located thereon, and non-moveable items pertaining to the improvements. The agreement stipulates that the Agency will deposit the full purchase price in escrow, and that funds will be disbursed upon the close of escrow.
Any relocation of the property owner or the tenants is governed by state and federal relocation laws and will be negotiated separately from the property acquisition.
Attached online is the negotiated “purchase and sale agreement” for the above-described parcel for the Salinas Rail Extension to Monterey County project. TAMC's real estate acquisition legal counsel has approved the document as to form. |
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