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Council Agenda: 10-18-2022
Item No.: 8.1(d)
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 OF PUBLIC INTEREST AND NECESSITY (1)
MAKING CERTAIN FINDINGS AND DETERMINATIONS
RELATING TO THE EXERCISE OF THE POWER OF
EMINENT DOMAIN PURSUANT TO ARTICLE 2, CHAPTER
4, TITLE 7 OF PART 3 OF THE CALIFORNIA CODE OF
CIVIL PROCEDURE REQUIRED FOR THE ACQUISITION
THROUGH CONDEMNATION OF 150 NORTH
MONTGOMERY STREET (ASSESSOR’S PARCEL
NUMBER 259-29-003) CONSISTING OF APPROXIMATELY
7,060 SQUARE FEET AND OWNED BY RODOLFO
ALVAREZ DUENAS, RAUL JIMENEZ, AND YOLANDA
JIMENEZ; (2) AUTHORIZING THE CITY ATTORNEY, OR
THEIR DESIGNEE, TO FILE SUIT IN EMINENT DOMAIN TO
ACQUIRE SUCH PROPERTY INTEREST, TO APPLY FOR
AN ORDER FOR POSSESSION BEFORE JUDGMENT,
AND TO PROSECUTE SAID ACTION TO FINAL
JUDGMENT; AND (3) AUTHORIZING THE CITY
ATTORNEY, OR THEIR DESIGNEE, TO DEPOSIT MONEY
IN THE STATE TREASURY CONDEMNATION FUND FOR
POSSESSION OF THE PROPERTY FROM THE FUNDS
LAWFULLY AVAILABLE THEREFORE
WHEREAS, the City of San José (“City”) and Sharks Sports & Entertainment LLC are parties to the Arena Management Agreement dated August 15, 2018, first amended on December 14, 2018 (“AMA”), and amended for a second time on June 8, 2021, which provides that the City must ensure certain available parking requirements for SAP Center patrons; and
WHEREAS, on December 14, 2018, the AMA was subsequently amended to incorporate a settlement of a dispute between the City and Trammel Crow involving the planned redevelopment of Lots A, B, C, and D (“Settlement Agreement”); and
WHEREAS, pursuant to the requirements in the AMA, the City has committed to provide 6,350 parking spaces within 1/2 mile of the SAP Center, of which 3,175 parking spaces NVF:CHD:JMD
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Item No.: 8.1(d)
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shall be available within 1/3 mile, with provisions for up to 400 additional employee parking spaces within 1/3 mile; and
WHEREAS, the Settlement Agreement specified that Trammel Crow would contribute $4,000,000 to be restricted for the acquisition of properties necessary to construct Lot E north of the SAP Center, the City agreed to “use its best efforts” to purchase the necessary properties with the funds provided, and the Settlement Agreement specified that the Sharks lease their adjacent property to the City for $1 per month; and
WHEREAS, pursuant to Section 3.1 of the First Amendment to the AMA, the City must acquire all parcels within Lot E, including the Property, to facilitate construction of the Lot E public parking facility, and therefore fulfill the City’s obligations under the Settlement Agreement and AMA for provision of adequate public parking proximate to SAP Center; and
WHEREAS, on October 31, 2017, the City Council approved the acquisition of the 525 West St. John Street property located at the northeast corner of North Montgomery Street and West St. John Street for a purchase price of $2,966,436; this acquisition provided two of the parcels necessary for the construction of Lot E public parking facility; and
WHEREAS, the Lot E public parking facility project is being undertaken by the City for the purpose of providing a public parking facility on the approximately 2.3-acre site (“Project”); and
WHEREAS, on October 18, 2022, the City adopted an Addendum to the Downtown Strategy 2040 Final Environmental Impact Report and approved the proposed Project to allow the relocation of a home currently on the project site at 170 North Montgomery Street and construction of a public parking facility on the approximately 2.3-acre site north of St. John Street between Barack Obama Boulevard and North Montgomery Street; and NVF:CHD:JMD
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Item No.: 8.1(d)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
WHEREAS, 150 North Montgomery Street is an approximately 7,060 square foot property (0.17 acre) located on the east side of North Montgomery Street just north of West St.
John Street. The property is owned by Rodolfo Alvarez Duenas and Raul and Yolanda Jimenez. The site is rectangular in shape and is a vacant field; and
WHEREAS, in October 2021, the City made a first offer to the property owners that included an offer to purchase the property for $1,770,000, which was determined to be fair market value by an independent appraisal, a title report, an appraisal valuation summary statement, and an information pamphlet regarding the City’s acquisition, then made a subsequent higher offer for an updated purchase price of $1,925,000 in an effort to avoid the use of eminent domain, but which was rejected by the property owner; and
WHEREAS, in the public interest and necessity, City desires to acquire the underlying fee interest in that certain property consisting of approximately 7,060 square feet, located at the east side of North Montgomery Street just north of West St. John Street within the City for a proposed public use, the Lot E public parking facility Project, as described in Exhibit “A” attached hereto and made a part hereof by this reference (the “Property”); and
WHEREAS, the Property to be acquired is proposed to be the site of the Lot E public parking facility Project’s planned public use improvements at the east side of North Montgomery Street just north of West St. John Street, and provide public parking necessary for the present and future development of the surrounding area including the SAP Center; and
WHEREAS, the City is authorized to acquire the Property and exercise the power of eminent domain for the public use and the Lot E public parking facility Project, pursuant to and in accordance with Article 1, Section 19 of the California Constitution, the California Eminent Domain Law (Code of Civil Procedure Sections 1230.010 et seq.), Section 200 NVF:CHD:JMD
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Item No.: 8.1(d)
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of the City of San José Charter, and Sections 37350, 37350.5, 37351, 37353 and 40404 of the California Government Code; and
WHEREAS, pursuant to the provisions of Section 1245.235 of the California Code of Civil Procedure, the required notice has been provided to the owners of the Property giving them the opportunity to appear and be heard on the matters referred to in Code of Civil Procedure Section 1240.030 prior to the City Council taking any formal action on this matter; and
WHEREAS, on October 18, 2022, the City Council conducted a Public Hearing to allow each person whose property is to be acquired a reasonable opportunity to appear and be heard on the matters referred to in Section 1240.030 of the California Code of Civil Procedure; and
WHEREAS, City also desires to authorize the City Attorney, or their designee, to file suit in eminent domain for condemnation of the Property, and to take all steps necessary, including applying for an Order for Possession before Judgment, and to correct any errors or make or agree to non-material changes in the description of the Property and interests deemed necessary for the conduct of the condemnation action; and
WHEREAS, City further desires to authorize the Director of Economic Development, or their designee, to make deposit in the State Treasury Condemnation Fund from lawfully available funds of the City in the amount determined by the summary appraisal of the Property or by the court in eminent domain proceedings concerning the Property or which may otherwise be required by law for the maintenance of the proceeding in eminent domain;
NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
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Item No.: 8.1(d)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
The City Council hereby finds, determines and declares that:
A. The City is authorized to acquire the Property and exercise the power of eminent domain to and in accordance with Article 1, Section 19 of the California Constitution, the California Eminent Domain Law (Code of Civil Procedure Sections 1230.010 et seq.), Section 200 of the City of San José Charter, and Government Code Sections 37350, 37350.5, 37351, 37353 and 40404; and
B. The public interest and necessity require the following proposed Project: the acquisition by the City of the Property which is in the footprint of the Lot E public parking facility, as described in Exhibit A, attached hereto and by reference made a part hereof, for the Lot E public parking facility Project; and
C. The Property to be acquired for the proposed Lot E public parking facility Project is planned or located in the manner which will be most compatible with the greatest public good and the least private injury; and
D. The acquisition of Property, as described in Exhibit A, is necessary for the public uses proposed in the Lot E public parking facility Project; and
E. The offer required by Section 7267.2 of the Government Code, together with the accompanying statement of the amount established as just compensation for the acquisition of the Property, has been made by the City to the owner of record; and
F. All conditions and statutory requirements necessary to exercise the power of eminent domain to acquire the Property have been complied with by the City, including those prescribed by the California Environmental Quality Act (CEQA, Pub. Res. Code § 21000, et seq.) through the Initial Study/Addendum to the NVF:CHD:JMD
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Item No.: 8.1(d)
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Downtown Strategy 2040 Final Environmental Impact Report (Resolution No. _____ and SCH No. 2003042127) for the Project; and
G. The City Attorney, or their designee, is hereby authorized to institute, maintain, and prosecute to final judgment, in the name of the City of San José, proceedings in eminent domain in the Superior Court of the State of California, County of Santa Clara, for the condemnation of the Property herein described, and to take all steps necessary, including applying for an Order for Possession before Judgment, for said condemnation in the name of the City and correcting any errors or to making or agreeing to non-material changes in the description of the Property interests to be acquired that are deemed necessary for the conduct of the condemnation action; and
H. The City Attorney, or their designee, is hereby authorized to make a deposit in the State Treasury Condemnation Fund from lawfully available funds of the City, in the amount of the summary appraisal of the Property, $1,770,000, or as determined by the court in which eminent domain proceedings concerning the Acquisition Parcels herein authorized are commenced, or which may otherwise be required by law for the maintenance of the proceeding in eminent domain.
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Item No.: 8.1(d)
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
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Council Agenda: 10-18-2022
Item No.: 8.1(d)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
EXHIBIT A – PROPERTY LEGAL DESCRIPTION AND MAP
150 N. Montgomery Street
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Council Agenda: 10-18-2022
Item No.: 8.1(d)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.