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CITY COUNCIL AGENDA ITEM NO. 10

Meeting Date: February 13, 2001

Subject/Title: Approve an Option Agreement with Signature Properties and related Actions for Relocation of Four Residents on Lone Tree Way

Submitted by: J. Stevenson/M. Kirby

Approved by: Jon Elam, City Manager

RECOMMENDATION
Approve a Resolution approving the following actions: (1) authorize the City Manager to execute the attached Option Agreement with Signature Properties Inc. for four homes to relocate four residents on Lone Tree Way, (Northwest Quadrant Infrastructure/CIFP 2001-1, CIP Project No. 336-3127); (2) authorize the City Manager to execute Purchase Agreements with John and Joyce Lopez, Tony and Velma Lopez, Joseph and Celia Lima and Amelia Smith for properties identified as APN: 019-010-027, 019-010-022, 019-060-007, 019-060-054 & ditch in an amount not to exceed $1,200,000 plus 10% administrative settlements, including the payment of the Lighting and Landscape Assessment for the life of these property owners, all relocation entitlements, Americans with Disability Act costs and the related incidental costs to close escrow; and (3) accept the real property on behalf of the City and authorize the City Manager and City Clerk or their designees to execute all agreements, and such other documents as may be needed to complete these transactions.

PREVIOUS ACTION
On November 10, 1998, the City Council approved Resolution No. 98-196 that annexed the northwest area into the City of Brentwood.

On November 28, 2000, the City Council approved Resolution No. 2203 to take various actions. The actions included adding the Northwest Quadrant Infrastructure to the 2000/05 Capital Improvement Program, directing the City Engineer to initiate right of way acquisitions in order to widen Lone Tree Way, directing the City Engineer to initiate discussions with the development community to develop a Capital Improvement Financing Program (CIFP 2001-1) to assist in financing the required engineering and infrastructure to support the anticipated commercial development in this quadrant of the City, directing the City Engineer to hire a consultant to assist the City in developing environmental mitigation measures for this and other City infrastructure and, if possible, develop a mitigation bank to keep environmental mitigation expenditures within the City limits of Brentwood or immediately adjacent, to the maximum extent possible.

BACKGROUND
Staff has informed the Council previously of the right-of-way requirements for the proposed Lone Tree Way widening. The widening will necessitate the acquisition of some of the homes fronting on Lone Tree Way. Staff does not know the exact number of homes that will be impacted by the widening project. It is known at this time, however, that the widening will affect four homes belonging to the Lima, Smith and Lopez families. This is one family (two brothers and two sisters) that has resided on Lone Tree Way for over 50 years. These are long-standing residents of the area with impeccable reputations. Tony Lopez, as an example, sat on the school board for over 35 years. The members of the family are all in their seventies and eighties and wish to stay together. Staff has met with the families on several occasions to keep them informed of the progress of CIFP 2001-1. The families have looked at new homes throughout the City and have asked if we can place them in four new homes in the Garin Ranch Subdivision. The City had all four properties appraised. The appraisals have been completed. Due to the lapse of time between the comparable sales used in the appraisals and the current market, Signature Properties has increased the sales price of their homes by 5%. Therefore, the appraised values are being adjusted by 5% to compensate for the age of the comparable sales.

Following discussions with Jim McKeehan of Signature Properties and some research at its sales office, it now looks like the City can place the Lima, Smith and Lopez families in new homes in Garin Ranch. It is anticipated that the existing homes on Lone Tree Way will be acquired at a higher value than the new homes in Garin Ranch, which gives us the financial ability to facilitate this move. The purchase of these four homes will be accomplished through an Option Agreement. The Optionee (City) will assign or transfer this agreement to any or all of the residents and the rights under it without the Optionorís (Signature Properties) prior written consent. The assignment of the Option Agreement and the transfer of the four residentsí property to the City will take place by back-to-back escrows.

The City will obviously be involved in relocation costs and ADA requirements due to their health conditions.

The funding for the purchase of the four homes will be through Roadway Fees.

Attachments:
Resolution
Site Map
Option Agreement


RESOLUTION NO.


A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING THE FOLLOWING ACTIONS: (1) AUTHORIZE THE CITY MANAGER TO EXECUTE THE ATTACHED OPTION AGREEMENT WITH SIGNATURE PROPERTIES INC. FOR FOUR HOMES TO RELOCATE FOUR RESIDENTS ON LONE TREE WAY, (NORTHWEST QUADRANT INFRASTRUCTURE/CIFP 2001-1, CIP PROJECT NO. 336-3127); (2) AUTHORIZE THE CITY MANAGER TO EXECUTE PURCHASE AGREEMENTS WITH JOHN AND JOYCE LOPEZ, TONY AND VELMA LOPEZ, JOSEPH AND CELIA LIMA AND AMELIA SMITH FOR PROPERTIES IDENTIFIED AS APN: 019-010-027, 019-010-022, 019-060-007, 019-060-054 & DITCH IN AN AMOUNT NOT TO EXCEED $1,200,000 PLUS 10% ADMINISTRATIVE SETTLEMENTS, INCLUDING THE PAYMENT OF THE LIGHTING AND LANDSCAPE ASSESSMENT FOR THE LIFE OF THESE PROPERTY OWNERS, ALL RELOCATION ENTITLEMENTS, AMERICANS WITH DISABILITY ACT COSTS AND THE RELATED INCIDENTAL COSTS TO CLOSE ESCROW; AND (3) ACCEPT THE REAL PROPERTY ON BEHALF OF THE CITY AND AUTHORIZE THE CITY MANAGER AND CITY CLERK OR THEIR DESIGNEES TO EXECUTE ALL AGREEMENTS AND SUCH OTHER DOCUMENTS AS MAY BE NEEDED TO COMPLETE THESE TRANSACTIONS.


WHEREAS, on November 10, 1998, the City Council approved Resolution No. 98-196 that annexed the northwest area into the City of Brentwood; and

WHEREAS, on November 28, 2000, the City Council approved Resolution No. 2203 to take various actions. The actions included adding the Northwest Quadrant Infrastructure to the 2000/05 Capital Improvement Program, directing the City Engineer to initiate right-of-way acquisitions in order to widen Lone Tree Way, directing the City Engineer to initiate discussions with the development community to develop a Capital Improvement Financing Program (CIFP 2001-1) to assist in financing the required engineering and infrastructure to support the anticipated commercial development in this quadrant of the City, directing the City Engineer to hire a consultant to assist the City in developing environmental mitigation measures for this and other City infrastructure and, if possible, develop a mitigation bank to keep environmental mitigation expenditures within the City limits of Brentwood or immediately adjacent, to the maximum extent possible; and

WHEREAS, an Option Agreement with Signature Properties is needed to relocate four residents on Lone Tree Way; and

WHEREAS, real property identified as APN 019-010-027, 019-010-022, 019-060-007, 019-060-054 & ditch owned by John and Joyce Lopez, Tony and Velma Lopez, Joseph and Celia Lima and Amelia Smith is needed for the Northwest Quadrant Infrastructure/CIFP 2001-1, CIP Project No. 336-3127; and

WHEREAS, a Purchase Agreement between the City of Brentwood and the vested property owners needs to be developed and is necessary to transfer property.

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Brentwood, that the Option Agreement with Signature Properties Inc. is approved.

BE IT FURTHER RESOLVED that the City Manager is authorized to execute a Purchase Agreement with the above property owners in an amount not to exceed $1,200,000 plus 10% administrative settlements, including the payment of the Lighting and Landscape Assessment for the life of these property owners, all relocation entitlements, Americans with Disability Act costs and the related incidental costs to close escrow.

BE IT FURTHER RESOLVED that the Mayor or City Manager and City Clerk or any of their designees are authorized to execute the Agreements and any related escrow documents including acceptance of the Grant Deed.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 13th day of February 2001 by the following vote:

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