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Council Agenda: 04-05-2022
Item No.: 8.2
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
RESOLUTION NO. ______________
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN
JOSE (A) ACCEPTING THE FINAL ORDERS OF
CONDEMNATION FOR THE ACQUISITION OF A FEE
INTEREST THROUGH EMINENT DOMAIN
PROCEEDINGS OF THE FOUR PARCELS CONSISTING
OF APPROXIMATELY 6,224 SQUARE FEET OF REAL
PROPERTY LOCATED AT PARK AVENUE, BETWEEN
SOUTH ALMADEN BOULEVARD AND MARKET STREET;
(B) DECLARING APPROXIMATELY 14,351 SQUARE
FEET OF REAL PROPERTY LOCATED AT PARK
AVENUE, BETWEEN SOUTH ALMADEN BOULEVARD
AND MARKET STREET AS “EXEMPT SURPLUS LAND”
UNDER CAL. GOV. CODE §54221(F)(1)(E); (C)
AUTHORIZING THE SALE OF THE APPROXIMATELY
14,351 SQUARE FOOT PORTION OF CITY-OWNED
SURPLUS PROPERTY TO SJ CITYVIEW LLC FOR
$5,925,724; (D) AUTHORIZING THE CITY MANAGER OR
HER DESIGNEE TO NEGOTIATE AND EXECUTE A
QUITCLAIM DEED AND ALL OTHER DOCUMENTS
NECESSARY TO EFFECTUATE THE SALE OF THE
PROPERTY; AND (E) AUTHORIZING THE USE OF UP TO
$3,000,000 FROM THE SALE PROCEEDS FOR THE
CITY’S CONTRIBUTION TOWARD THE PARK AVENUE
RECONFIGURATION PROJECT, SUBJECT TO THE
APPROPRIATION OF FUNDS
WHEREAS, on September 3, 2019, the City Council of the City of San José (“City”) approved a Determination of Consistency with the Downtown Strategy 2040 Final Environmental Impact Report (SCH # 2003042127) and Statement of Exemption for the realignment of Park Avenue (“Park Avenue Reconfiguration Project”) to reconfigure the Park Avenue right-of-way between the Guadalupe River and South Market Street to reduce the area for vehicular circulation, maximize the area for pedestrian and bike circulation, and integrate the street with adjacent open space on private property; and
WHEREAS, each of the three new development projects fronting Park Avenue between Market Street and Almaden Avenue (200 Park, CityView, and Park Habitat) will construct NVF:CHD:KML
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Council Agenda: 04-05-2022
Item No.: 8.2
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
the Park Avenue improvements adjacent to their project as a part of their public improvement plans; these three projects will build out the majority of the identified improvements, however the City is responsible for the sidewalk and roadway improvements adjacent to The Tech Interactive, a City-owned facility; and
WHEREAS, on June 16, 2020, the City Council approved the CityView Plaza Project under Site Development Permit No. H19-016 (“CityView Development”), which allows for construction of an office development totaling approximately 3.8 million square feet of office and commercial space on an approximately 8.1 gross-acre site by SJ CityView LLC (“Developer”); and
WHEREAS, the Developer included an approximately 14,348 square foot portion of real property located at Park Avenue (“Subject Property”) as part of its approved project plans, and all parcels in the Subject Property are part of the Park Avenue right-of-way that is a part of the Park Avenue Reconfiguration Project; and
WHEREAS, the City is the fee owner of a portion of the Subject Property containing approximately 8,124 square feet (“City-Owned Parcels”) and an additional approximately three square feet that will remain as part of the public street, totaling approximately 8,127 square feet; and
WHEREAS, in order to accomplish the land use plan as approved under H19-016, the Developer must acquire the Subject Property; for this to be achieved, the City needed to acquire by condemnation the fee interest in the four parcels consisting of approximately 6,224 square feet of real property (“Acquisition Parcels”) located within Park Avenue and subsequently convey its fee interests in those parcels along with its fee interests in the City- Owned Parcels to the Developer; and
WHEREAS, on November 3, 2020, the City Council authorized the City Manager to negotiate and execute a Real Property Purchase and Sale and Cost Payment Agreement (“Purchase and Reimbursement Agreement”) requiring Developer to reimburse the City for NVF:CHD:KML
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Item No.: 8.2
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
City-incurred costs, fees, and expenses associated with the acquisition, through negotiation or through a condemnation action, of the Acquisition Parcels to support the CityView Development project; and
WHEREAS, it is in the interest of the City to transfer the adjacent additional three square feet to the Developer for no additional charge, as it will remain as undevelopable public street and is not included in the project plans, in order to remain consistent with the Park Avenue Reconfiguration Project and avoid retaining remnants of the property that will need to be maintained into the future; and
WHEREAS, on April 13, 2021, the City Council adopted a resolution conditionally vacating the Subject Property, authorizing its abandonment as a public street once certain conditions are met, and adopted four Resolutions of Necessity authorizing the City’s acquisition by eminent domain of the Acquisition Parcels to accomplish the land use plan as approved under H19-016, at no cost to the City as the Developer prefunded the reimbursement account to pay all costs associated with the acquisitions; and
WHEREAS, as authorized by the Resolutions of Necessity, the City proceeded to file in the Superior Court, County of Santa Clara, the Complaints in Eminent Domain against the four owners of the Acquisition Parcels; and
WHEREAS, as of January 7, 2022, the City has received the Final Orders of Condemnation via eminent domain for the Acquisition Parcels, certifying that the City is the fee owner of the entirety of the 14,348 square foot Subject Property; and
WHEREAS, to facilitate the land use plan as approved under H19-016, the City desires to accept the Final Orders of Condemnation as formal acquisition of fee interest in the Acquisition Parcels, complete the previously conditionally approved vacation of the Subject Property, and convey the fee interest in the Subject Property and an additional three-square feet property adjacent to the Subject Property, totaling approximately 14,351 square feet (“Transfer Property”) to the Developer; and
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DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
WHEREAS, the City desires to declare the Transfer Property “exempt surplus land” under Cal. Gov. Code §54221 (f)(1)(E), as the land is surplus to the needs of the City, and to sell the Transfer Property to the Developer in accordance with San José Municipal Code §4.20.070(A) and the Purchase and Reimbursement Agreement dated December 4, 2020, conditioned upon the satisfaction of certain conditions and recording of a resolution of vacation as authorized by City Council Resolution No. 79967 adopted on April 13, 2021, for fair market value which has been determined to be $5,925,724, subject to $1,689,603 in reimbursable outlays already made by the Developer on the City’s behalf, for a net payment to the City of $4,236,121; and
WHEREAS, when completed, a portion of the net proceeds from the sale of the Transfer Property, up to $3,000,000, will support the costs of improving the Park Avenue frontage along the City-owned Tech Interactive parcel per the Park Avenue Improvement Plan; and
WHEREAS, the sale of the Transfer Property will allow Developer to develop the area consistent with its future development plans and in conformance with the Park Avenue Reconfiguration Project, allowing City to reconfigure the north side of Park Avenue into a pedestrian friendly thoroughfare with greater separation between pedestrians, cyclists, cars, and the planned commercial buildings while supporting the construction of the CityView Plaza Project;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
A. The Final Orders of Condemnation for the acquisition of a fee interest through eminent domain proceedings of the four parcels consisting of approximately 6,224 square feet of real property located at Park Avenue, between South Almaden Boulevard and Market Street, are hereby accepted.
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B. The approximately 14,351 square feet of real property located at Park Avenue, between South Almaden Boulevard and Market Street, is hereby declared “exempt surplus land” under Cal. Gov. Code §54221(f)(1)(E) as the land is a former street, right of way, or easement, is conveyed to an owner of an adjacent property, and is surplus to the needs of the City.
C. The sale of the approximately 14,351 square foot portion of City-owned surplus property located on a portion of Park Avenue, between South Almaden Boulevard and Market Street, to SJ CityView LLC for $5,925,724 is hereby authorized.
D. The City Manager, or her designee, is hereby authorized to negotiate and execute a quitclaim deed and all other documents necessary to effectuate the sale of the property.
E. The use of up to $3,000,000 from the sale proceeds for the City’s contribution toward the Park Avenue Reconfiguration Project is hereby authorized, subject to the appropriation of funds.
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Council Agenda: 04-05-2022
Item No.: 8.2
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
ADOPTED this _____ day of ___________, 2022, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
SAM LICCARDO
Mayor
ATTEST:
TONI J. TABER, CMC
City Clerk