Coversheet


Agenda Item 3.5.3


TRANSPORTATION AGENCY FOR MONTEREY COUNTY *Memorandum*

To:	Board of Directors
From:	Michael Zeller, Director of Programming & Project Delivery
Meeting Date:	December 6, 2017
Subject:	54 West Market Street Settlement

RECOMMENDED ACTION:

54 West Market Street Settlement Agreement:

APPROVE the real estate acquisition settlement agreement with JBM Properties for one parcel located at 54 West Market Street for the Rail Extension to Monterey County project by increasing the $150,000 currently deposited in the State Condemnation Fund as just compensation for the property by $7,500 to a not to exceed amount of $157,500;
APPROVE the payment of statutory costs not to exceed the amount of $1,344.48 and property owner appraisal costs not-to-exceed $5,000;
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 $13,844.48 from state funds budgeted to this project for a total settlement not-to-exceed amount of $163,844.48.

SUMMARY:
The property owners for 54 West Market Street are prepared to grant the Agency possession of the property and settle the acquisition.

FINANCIAL IMPACT:

The Salinas Rail Extension project includes funding for right-of-way acquisition. At the March 2017 meeting, the Transportation Agency Board approved depositing $150,000 with the State Condemnation Fund as just compensation for the property, as determined from the Agency's property appraisal. Staff proposes to use Traffic Congestion Relief Program or Proposition 116 bond funds for the additional $13,844.48 in settlement expenses. 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.

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 6,500 square feet located at 54 West Market Street in the City of Salinas, California, known as Monterey County Assessor’s Parcel No. 002-171-011. The parcel will be needed for the parking lot and Lincoln Avenue extension planned for the area of the Salinas Rail Station. A Phase I environmental review found no contamination on the property.

At the March 22, 2017 meeting of the Transportation Agency Board of Directors, the Board approved proceeding with the condemnation process on 54 West Market Street for the Salinas Rail Station project. This included establishing just compensation for the property at $150,000 and depositing that amount with the State Condemnation Fund.

The Agency's real estate acquisition consultant, Overland, Pacific, & Cutler, and special legal counsel, Meyers Nave, have continued to negotiate with the property owners. The property owner has agreed to sell the property and grant the Agency possession at $157,500, which is roughly splitting the difference between TAMC's valuation of $150,000 and the property owner's appraised value of the property at $165,000. The Agency is also legally required to pay for the property owner's statutory costs of $1,344.48, which have primarily been filing fees, as well as their appraisal costs up to $5,000. As such, Agency staff is seeking Board approval of an additional $13,844.48 to add to the amount already on deposit with the State Condemnation Fund, for a total negotiated settlement (inclusive of statutory and appraisal costs) of $163,844.48 to acquire the property.