STAFF REPORT
City of Lancaster
CC 7
10/28/2025
TN
Date:October 28, 2025
To: Mayor Parris and City Council Members
From:Marissa Diaz, Director - Public Works
Nicholas Godin, Assistant Director - PW City Engineering Subject:Approval of Acquisition and Reimbursement Agreements with HD Development of Maryland, Inc., for Lancaster Health District Project Recommendations:
1. Authorize the City Manager, or his designee, with the concurrence of the City Attorney, to enter into an acquisition agreement with HD Development of Maryland, Inc., and acquire approximately 36,102 square feet via roadway easement to construct Avenue J-5 at 20 th Street West, and execute all related documents.
2. Authorize the City Manager, or his designee, with the concurrence of the City Attorney, to enter into a reimbursement agreement with HD Development of Maryland, Inc., for the onsite improvements necessitated by the acquisition agreement along Avenue J-5 and 20 th Street West and execute all related documents.
G.C. Section 84308: No
Fiscal Impact:
$2,882,000.00 ($782,000.00 for the Agreement for Acquisition of Roadway Easement and $2,000,000.00 plus a 5% contingency for Reimbursement Agreement). Sufficient funds are available in CP15ST058.CONST, GL Account 22049900.8000.
Background:
The Lancaster Health District (LHD) project proposes to develop the area bounded by 12 th Street West to the east, Avenue J to the north, 20th Street West to the west, and SR-14 (Antelope Valley Freeway) and Avenue J-8 to the south, and is funded by the Los Angeles County Metropolitan Transportation Authority (LACMTA) 2015 Call for Projects. The City was awarded a total grant amount of $11,412,757.00, with a local matching fund requirement of $6,767,765.00.
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In April 2022, LHD was divided into two phases, and in October 2022, the City Council approved the award of construction bid for Phase One in the amount of $4,809,287.50, plus a 20% contingency.
In February 2025, the LHD project was further split into four phases. As part of the next phase in this project, the City will be acquiring approximately 36,102 square feet via roadway easement to construct Avenue J-5 at 20 th Street West to provide access to existing and proposed medical facilities in the LHD Area. The acquisition and subsequent construction of Avenue J-5 necessitate certain on-site improvements to two parcels (APNs 3123-004-045 and 3123-001-062) owned by the HD Development of Maryland, Inc., including pavement, curb, gutter, sidewalk, grading and drainage, electrical, landscaping, irrigation, and utilities.
To expedite the construction of such improvements, the City has estimated the reimbursement amount, but with the approval of the Reimbursement Agreement, agrees to reimburse HD Development of Maryland, Inc., for actual and reasonable costs incurred in connection with onsite work as detailed in Exhibit B of said agreement.
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Attachments:
Agreement for Acquisition of Roadway
Easement Reimbursement Agreement