03.31 Purchase of 100 N. Tustin St.1. SUBJECT
Purchase of property at 100 N. Tustin Street for the purpose of street widening.
2. SUMMARY
The parcel is necessary for the street widening of Chapman Avenue at Tustin Street Right Turn
Lane Improvements (SP- 3932).
3. RECOMMENDED ACTION
Approve the purchase of property at 100 N. Tustin Street, and authorize the Mayor and City Clerk
to execute the necessary escrow and related documents on behalf of the City.
4. FISCAL IMPACT
The total expenditure for this purchase is $403,000 and will be funded in Chapman/Tustin
Critical Intersection (13228) through:
TSIP -B (284) $350,000
Reimbursable Capital Projects (550) 110,000
Total: $460,000
5. STRATEGIC PLAN GOAL(S)
1. Provide for a safe community —
b. Provide and maintain infrastructure necessary to ensure the safety of the public.
2. Be a fiscally healthy community —
d. Effectively manage and develop City assets.
6. GENERAL PLAN IMPLEMENTATION
Circulation and Mobility Element Goal 1.0: Provide a safe, efficient, and comprehensive
circulation system that serves local needs, meets forecasted demands and sustains quality of life in
neighborhoods.
Policy 1.2: Identify key intersections and streets with historical or projected traffic congestion
problems and apply creative management measures to improve overall circulation.
7. DISCUSSION and BACKGROUND
The intersection of Tustin Street and Chapman Avenue has been widened on three of the four
corners to accommodate high traffic volume. Public Works staff has recently received grant
funding from OCTA's Intersection Capacity Enhancement (ICE) program, to improve the
remaining northwest corner of the intersection. The 846 square foot (s.f) right -of -way required for
this project is located along the easterly side of the ARCO gas station property at 100 N. Tustin
Street. The temporary construction easement included in the purchase price will allow the project
contractor to do work on the driveway approaches to make a smooth transition to the new sidewalk
and street, relocate the sign, and replace any landscaping and irrigation systems disturbed during
the project. The City has already acquired the necessary right -of -way from the adjacent property
to the north (Friar Tux). The 90 day project is expected to take place in early 2019.
Staff initially met and shared design plans with the owner in January 2017, during the
environmental phase of the project. The owner subsequently retained an attorney to represent him
in all further contact. An independent appraiser hired by the City determined a value of $98,800,
which did not include severance damages or loss of business value. After negotiating with the
property owner, they obtained a separate appraisal, which included the monthly sales information
for a projected six months' closure of the service station, resulting in a revised appraised value of
$403,000. Any fees and charges during escrow to obtain clear title without liens, etc. are the
responsibility of the seller. Sections 1230.010 et. Seq. to the California Code of Civil Procedure
establishes the authority for designated agencies to acquire property necessary for public use. Staff
recommends the approval of the property purchase by City Council for $403,000.
8. ATTACHMENTS
• Purchase Offer, Addendum, and Attachments
• Temporary Construction Easement.
ITEM 2 08/14/18