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HomeMy WebLinkAboutItem No.6CITY OF LAKE ELSINORE REPORT TO THE CITY COUNCIL TO: Mayor and City Council FROM: Ron Molendyk, City Manager DATE: December 14, 1993 SUBJECT: San Jacinto River Channel Easement for Construction and Use BACKGROUND The City of Lake Elsinore is re- constructing the Lakeshore Drive Bridge. In order to construct the bridge, the San Jacinto River` Channel must be widened and improved to carry a 100 -year flood event without damaging the bridge. Widening the Channel requires the acquisition of property, along, the west - side of the channel from Sportman's Lodge, a General Partnership. DISCUSSION Albert W. Pattison,._Property Appraiser,_ set the value of -the required property at $1,000. 'An offer to purchase was made on January 10, -1993, and it was subsequently rejected,by Mr. Gregory, A. Block, the managing partner of Sportman's Lodge. However, Mr. Block agreed to, give the City -a Right, of Entry Permit, for , construction purposes. Since then, the other partner has passed away, and the descendant's assets are being administered by a Creditor's Committee. The Committee secured a legal firm to handle the property disposition. The firm proposed an "Easement for Construction and Use" to be executed in place of the Right of Entry Permit. Essentially the "Easement for Construction and Use" gives the City the right to enter the property for the purpose of constructing and maintaining the Flood Control Project while the value is negotiated and purchase can _be:accomplished. Among other; things., .it states that: should any agreement for value not be reached, the City will commence eminent; domain proceedings within (6) months after - granting the easement. Further, it states that the City will pay (12) percent of- the agreed property value for the use of the construction easement. Interest will accrue to the date of payment. FISCAL IMPACT Sufficient Redevelopment Agency funds have been appropriated,in the - ., 1992/93 budget for property acquisition to construct the San Jacinto River Channel Project , 11 RECOMMENDATION:, 1. Accept the attached "Easement for Construction' and Use" ` document and-,have the Mayor sign where appropriate. 2. Direct.the City Clerk to submit the document to the Riverside County Recorder for recording. Prepared By: Approved By: Approved Fox Agenda Listl AGENDA ITEM NO. \ PA3�_—L_. OF-1 -- WHEN RECORDED PLEASE "AIL TNIS INSTRLIMENT TO: CITY CLERK CITY OF LUKE ELSINORE 130 SOUTN RAIN STREET _ - LAKE ELSINORE, CA 92530 RECORDING REOUESTED BY DEPARTMENT OF PUBLIC SERVICES - TNIS SPACE FOR RECORDER'S USE ONLY - NO TRANSFER TAX WE This Easement For Construction And Use ( "Easement") is made as of this _ day of October, 1993, by and between the City of Lake Elsinore (the "City ") and Sportsman Lodge, a general partnership (the "Owner "). A. The City seeks to acquire 'a portion of real property owned in fee by the Owner and located in Lake Elsinore, California. For purposes of this Easement, the part which the City seeks to acquire shall be referred to as the "Subject Property." (Attached hereto as Exhibit "A" and incorporated herein by reference is ,a legal description of the Subject Property.) The entire parcel owned by the Owner, including the Subject Property, shall be referred to as the "Owner's Property." The portion of the Owner's Property which the City does not seek to acquire shall be referred to as the "Remainder Property." The purpose of the City's acquisition is for the purpose of AGENDA ITEMS P.0. � Y- PAGE 1- OF ,r - constructing and maintaining 6 flood control channel improvement and related appurtenances (the "Flood Control Project "). B. On or about January 10, 1993,.the.City offered to . acquire the Subject Property from the Owner for the sum of $1,000. The Owner rejected this offer 'i C. The City commenced negotiations for the purchase and sale of the Subject Property. These negotiations are still continuing. If the negotiations are unsuccessful, -the City has agreed to commence an eminent domain proceeding to take the Subject Property., D. While negotiations continue,,'the City seeks an easement for construction and use of the Subject Property for the purpose of commencing work on its Flood Control Project. E. The Owner has determined to grant such an easement and allow entry by the City onto the Subject Property, but only upon i the terms and conditions set forth in -this Easement. NOW, THEREFORE, in consideration of the foregoing and upon the covenants, conditions and obligations hereinafter set forth, the parties hereto agree as follows: - x AGENDA ITEM NO.— (ov— — PAGE,4 OF1,[._ 1. - Incorporation of.Recitals. The above Recitals are incorporated herein by reference. 2. Easement For Construction And Use. The Owner hereby grants the City the Easement for the Subject Property for the purpose of constructing and maintaining its Flood Control, Project. The City shall not permit any other party, except the City's duly authorized representatives, employees.. agents, contractors and subcontractors to enter onto or use the subject Property during the term of this Easement. 3. -- Consideration. The owner grants this Easement in consideration for: (a) The City's-obligation to compensate the owner in an amount equivalent to twelve percent (12 %) per annum of the fair market value of the Subject Property.for the period of the Easement, plus interest on all sums paid for the Easement at the rate of twelve percent (12 %) per annum from the effective- date of Easement to and including the date of payment.: The fair market value of the Subject Property to be used herein shall.be that value determined in a valuation trial or by stipulation or other agreement between the Owner and the City; and (b) The City's obligation to negotiate, without any unnecessary delay, with the Owner and any other person, if any, having any right, title, or interest in the Subject Property, to agree upon terms of compensation and that, if any agreement 3 AGENDA ITEId r% D. N1 PAGE-41—OF_j4L- cannot be reached; the City shall, commence eminent domain proceedings to have such a compensation determined, with said . proceedings to be commenced not less than six (6) months after the granting of this Easement. _ 4. No t of nn,nnehsatien Or other" Remedies Under MM vent Domain Law. It is understood by -City and owner that the Easement-granted to the City is not a waiver either of the right to claim compensation for interests taken in any or all of the owner's.'=. Property or -of any remedy authorized by to secure payment, therefor.. 5. -_ h R bt' T Enter nr,to The owner's Remainder Pro oertv._ The Easement granted herein does not extend to any portion of the Owner's Remainder Property: The City shall not use any.' portion of the Remainder Property for the construction or maintenance of its Flood Control Project, including, but not limited to, such activities as the storage or deposit,of_any vehicles, construction equipment, dirt, materials- supplies or any other object,=or use as a temporary egress and ingress easement. If the City enters onto, or uses, the Remainder Property, the owner shall be entitled to-compensation for the City's use of"the Remainder Property in an eminent domain proceeding or inverse condemnation action. Interest on the compensation for the City's - use -of the Remainder Property, if J AGENDA ITEM NO. PAGE.., OF--4L— —. any, shall accrue at the rate of 12% per year, compounded quarterly. The City shall be responsible for any damage or loss proximately caused by the City and /or its representatives, employees, agents, contractors, subcontractors, partners, joint venture partners, related and affiliated associations, divisions, subsidiaries and any governmental agency or entity, to the Owner's Property.. The .City shall provide insurance to protect against any loss or damage, or provide evidence of adequate means, of self- insurance. All persons present on the Subject Property, Remainder Property or Owner's Property to construct and maintain the Flood Control Project shall be covered by acceptable and adequate insurance coverage as provided for by the City. Owner will be named an additional insured on any insurance policy. 7. owner Not Liable. The City hereby indemnifies: and holds the owner and the owner's Property free and harmless from and against any loss, damage, injury, liability or claim.of any kind or character including, without limitation,. any mechanics, material, contractors,.or subcontractors liens, and any. attorneys' fees and costs, to any person or property arising from, or caused by, any use of the owner's Property by or on behalf of the City, and /or caused by or arising from any act or s AGENDA ITEMS NO. NI PAGE—L OF omission of the City I and /or any of its representatives, employees, agents, contractors, subcontractors, partners, j "oint venture partners, "related and affiliated associations, entities, and any governmental entity. The City,'as a material part of the consideration for this Easement, waives all claims against the owner for any loss, damage, liability, claim or injury of or to the City or others, and shall indemnify and hold the owner and the owner's Property harmless as provided in this paragraph. The owner's right to indemnity shall include payment of any judgment, settlement, defense costs,.attorney's fees, expert witness fees and costs, including such fees and costs incurred with anticipated or threatened litigation. S. Duration of Easement. - The easement interest granted by this Easement shall commence upon the date of execution and approval thereof by the Owner and the "City and shall terminate upon the earliest of the following datesi (a) The date of recordation'of'conveyance'document conveying fee simple interest of the Subject Property to the City; (b) The effective date of an order for possession of the Subject Property granted pursuant to Code of Civil Procedure section 1255.410; (c) The date of dismissal for any reason of any eminent domain proceeding brought by the City to take the Subject Property; or 6 AGENDA ITEM NO. �, pAGE.�OF--&� (d) The date of recordation of a Notice of Termination of any Right of Entry.Permit. The termination of the Easement shall not eliminate, restrict or render void or moot the owner's right to compensation. 9. Recordation of Easement. The City is authorized to record this Easement with the County Recorder of the County of Riverside, California. 10. Assicnability. This Easement cannot be assigned by the City, whether voluntarily or by operation of law, and the City shall not permit the use of the Subject Property, or any part thereof, except in strict compliance with the provisions hereof. 11. Miscellaneous. This instrument constitutes the entire agreement between the parties hereto pertaining to the subject matter herein. _No supplements, modifications or amendments of this Easement shall be binding unless in writing or executed by the parties hereto. This instrument shall be construed and enforced in accordance with, and governed by, the laws of the State of California. 12. Legal Fees. In the event of the bringing of any action or suit by.a party hereto against the other party hereunder alleging a breach of any of the covenants, conditions, agreements 7 AGENDA ITEM. NO.�� PAGE OF—IL_ or provisions of this Easement, Owner, if found to 1)6 the prevailing party, shall recover all costs and expenses of suit, including reasonable attorneys' fees and fees of expert witnesses. a s AGENDA ITEM ISO. � / PAGE 4— 0-r_&_ IN WITNESS WHEREOF, the parties hereto have executed.this. Easement as of the day and year first above written. GRANTOR: SPORTSMAN'S DODGE, a General Partnershiv BY M" LOU 01611119111 STATE OF •.- PUIL COUNTY 0 On &Hp4XLP^ c�'74 1993 before me, 7ersonally appeared personally knows to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is /are subscribed to the within instrument and acknowledged to me that he /she /they executed the same in his /her /their authorized capacity(ies), and that by his /her /their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. 9 AGENDA ITEM NO. PAGES 09 O" —�--- EASEMENT FOR CONSTRUCTION AND USE DATED: FROM: Sportsman's Lodge, a General Partnership TO THE CITY OF LAKE ELSINORE, A MUNICIPAL CORPORATION AND A POLITICAL SUBDIVISION OF THE STATE OF CALIFORNIA, IS HEREBY ACCEPTED BY THE UNDERSIGNED OFFICER ON BEHALF OF THE CITY OF LAKE ELSINORE, AND THE GRANTEE CONSENTS TO THE RECORDATION THEREOF BY ITS DULY AUTHORIZED AGENT. THIS ACTION WAS APPROVED BY THE LAKE ELSINORE CITY COUNCIL DURING REGULAR SESSION ON DATED: BY: VICKI LYNNE KASAD, CITY CLERK CITY OF LAKE ELSINORE, CALIFORNIA 10 AGENDA ITEM NO. 69 !• PAGE -.4 OF—.6L