Lot E Public Parking Land Acquisition
517 W Saint John St. & 150 N Montgomery St.
October 18, 2022
Item 8.1
OEDCA
Nanci Klein, Director
DOT
Jessica Zenk, Deputy Director
OEDCA
Kevin Ice, Real Estate Manager
DOT
Arian Collen, Parking Manager
Recommendations
2 • Adopt Addendum to the Downtown Strategy 2040 Final EIR, and associated Mitigation Monitoring and Reporting Plan
• Relocation assistance for 517 W Saint John Street
• Adopt a resolution determining that the public interest and necessity require the acquisition through condemnation for each of 517 West Saint John Street and 150 North Montgomery Street, including all necessary findings and declarations by law in conformance with Cal. Civ. Proc. Code Section 1245.220 et seq., and authorizing the City Attorney to begin legal proceedings for eminent domain and to seek an Order for Possession
Background
3 • 2016 Settlement Agreement between City, Trammel Crow, and Sharks:
• Obligates the City to acquire parcels needed to construct the Lot E Parking Facility • City negotiating to purchase Lot E parcels since 2016 • City purchased two adjacent Lot E parcels in 2017 for $2,966,436 • Settlement Agreement provides that:
• “City will make good faith efforts to purchase the Initial Parcels as soon as is reasonably possible… using the City's condemnation powers if necessary… which rights shall be exercised only in the sole discretion of the City Council and only after the City has adopted a Resolution of Necessity”
4 Lot E Parking Facility Footprint
Offers and Valuations
5 Property
City’s
2021
Appraisal
Per
Sq. ft.
Owner’s
Appraised
Value
Per
Sq. ft.
Owner’s
Counteroffer
Per
Sq. ft.
City’s Final
Offer
(rejected)
Per
Sq. ft.
517 W.
St John
$4,800,000 $250.44 $5,500,000 $286.96 $5,500,000 $286.96 $5,000,000 $260.87 150 N.
Montgomery
$1,770,000 $250.70 N/A N/A $3,500,000 $495.75 $1,925,000 $272.66 • City worked to develop reasonable offers that serves public benefit • City is updating the 2021 appraisals
• The new appraisals are not complete, staff doesn’t anticipate an increased value • City’s offers include a “1033 Letter”
• City anticipates the court requiring a deposit of $6,570,000 for the two parcels 517 West Saint John Street
6 • City issued offers to purchase in
2016, 2018, 2021, & 2022
• Staff requesting approval for a Need
and Necessity
• Can continue to negotiate for an
arms-length transaction
• City-commissioned review appraisal
found owner’s appraisal did not
accurately reflect allowable uses in
the Diridon Station Area Plan
• Thorson Tile & Stone business would
receive relocation assistance
150 North Montgomery Street
7 • City issued offer to purchase in 2021
& 2022
• Owner did not commission an
appraisal report despite City’s offer to
pay for the fee
• Vacant lot
• Owner’s counter of $3,500,000 not
based on market comparables
Thank you!
Staff are available for questions.
OEDCA
Nanci Klein, Director
DOT
Jessica Zenk, Deputy Director
OEDCA
Kevin Ice, Real Estate Manager
DOT
Arian Collen, Parking Manager