HomeMy WebLinkAbout1997 CON CDC MOU SD Unified Port District - Harrison Ave ExtensionORIGINAL
MEMORANDUM OF UNDERSTANDING
between the
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY
and the
SAN DIEGO UNIFIED PORT DISTRICT
relative to the
EXTENSION OF HARRISON AVENUE & OTHER POSSIBLE DEVELOPMENT
AND RELATED PUBLIC IMPROVEMENTS
in the Vicinity of
24th Street & Harrison Avenue, National City
RECITALS
A. The San Diego Unified Port District (District) is in the
process of conducting planning and engineering studies for the
possible acquisition of rights -of -way and construction of
Harrison Avenue from 24th Street south to 32nd Street; the
possible acquisition of rights -of -way and the construction of
street improvements on the south side of 24th Street between
Harrison Avenue and Interstate 5 (I-5); and the possible
acquisition of property located in the southwest quadrant of
I-5 and 24th Street, as depicted on Exhibit "A" (all of the
possible acquisition properties are collectively called the
"Subject A Properties").
B. The Community Development Commission of the City of National
City (CDC) is in the initial stages of implementation of a
Redevelopment Program; studying the possible acquisition of
rights -of -way and the construction of street improvements on
the north side of 24th Street between Harrison Avenue and I-5;
and the possible acquisition of property located in the
northwest quadrant of I-5 and 24th Street in National City as
depicted on Exhibit "B" (all of the possible acquisition
properties are collectively called the "Subject B
Properties").
C. It is in the best interests of the District and CDC to
coordinate activities and work in concert in order to achieve
development that is mutually beneficial. In this respect, CDC
Page 1 of 12
MOU between CDC & DISTRICT
24th St./Harrison Ave. Improvements
June 10, 1997
and the District have previously entered into a Memorandum of
Understanding (MOU), dated August 23, 1996, filed in the
District Clerk's office as Document No. 34780, which shall
become void upon execution of this Agreement.
D. The purpose of this MOU is to define the roles of the CDC and
the District relative to their participation in the planning,
implementation, and funding of certain projects in the City of
National City. The below -listed tasks are necessary to make
a decision relating to the extent of public improvements,
which of the Subject A and B Properties shall be acquired, and
the sources and uses of required funds.
NOW THEREFORE, in consideration of the mutual benefit to be derived
therefrom, the District and the CDC hereby agree as follows:
1. The District shall undertake a Port Master Plan update of the
National City Tidelands (Tidelands) in the vicinity of the
proposed Marina as part of the District's planning process.
The CDC shall conduct a Master Plan of the area between I-5
and the Tidelands at its own cost. The two efforts are to be
coordinated and complement each other and completed by
December 31, 1997 not withstanding Coastal Commission approval
and any other environmental review process.
2. The District has entered into a contract for engineering
services for the widening of 24th Street from I-5 to Harrison
Avenue and for the construction of Harrison Avenue from 24th
Street south to 32nd Street. The CDC will become part of the
review process and provide input prior to completion of the
plans. The CDC, with reimbursement from the District, shall
assume the responsibility for the completion of the
Page 2 of 12
MOU between CDC & DISTRICT
24th St./Harrison Ave. Improvements
June 10, 1997
engineering services for the widening of 24th Street from I-5
to Harrison Avenue and for the construction of Harrison Avenue
from 24th Street south to 32nd Street at the 30% completion
stage of said Plans. These engineering plans and contract
documents will be completed by the CDC within 120 days from
the certification of the EIR and by the approval of affected
Regulatory Agencies. The CDC will assume the "Lead Agency"
position for the preparation of any environmental documents
and hearings that are required. Pursuant to the provisions of
Paragraph 15 of this MOU, the District will reimburse the CDC
for expenses associated with the environmental efforts,
including the costs of all consultants and all attorneys' fees
incurred. The CDC will keep the District advised as to the
progress of the environmental process and will jointly with
the District agree on mitigation measures that are to be
implemented.
Subject to District and CDC approval, the CDC, in consultation
with the City of National City, shall mutually agree on the
extent of the right-of-way improvements before the project
proceeds. As the "Lead Agency," the CDC will prepare plans,
specifications, and bid documents, call for bids, enter into
a construction contract, and supervise the construction of the
public improvements in accordance with the provisions of
Paragraph 15 of this MOU. Construction of the right-of-way
improvements is anticipated to commence approximately
September 1998 and completion is projected for April 1999.
3. The CDC and District shall inform all owners (or their agents)
of the Subject A and B Properties of the possibility of
property acquisition, that an appraisal, possible soil
studies, and a Phase I, and possibly a Phase II environmental
Page 3 of 12
MOU between CDC & DISTRICT
24th St./Harrison Ave. Improvements
June 10, 1997
(toxic) assessments need to be conducted, and the possible
public improvements that may be constructed. Prior to
informing the property owners (or their agents), the
information letter shall be reviewed and approved by the legal
counsels of the CDC and District relative to avoidance of
inverse condemnation proceedings.
4. The CDC shall within one -hundred twenty (120) days of the date
of this MOU obtain updates of narrative appraisals dated
January 20, 1997, prepared by Hendrickson Appraisal Company,
Inc. covering the Subject A Properties. The CDC shall have
necessary soils studies, Phase I, and if necessary, Phase II
environmental (toxic) assessments conducted on the Subject A
Properties. In addition, the CDC shall obtain a reuse
analysis of the property located in the southwest quadrant of
I-5 and 24th Street that may be acquired. The costs for all
tasks performed by the CDC under this Paragraph shall be
reimbursed by the District in accordance with Paragraph 15 of
this MOU. All funds forwarded by District for costs incurred
pursuant to this Paragraph, with the exception of funds
forwarded for right-of-way acquisition, shall be deemed an
unsubordinated loan, evidenced by a no -interest, Non -Recourse
Note secured with a Deed of Trust. Said Note shall be payable
in full no later than five (5) years from the date of the
forwarding of the funds by District to the CDC.
5. The CDC shall, within one -hundred twenty (120) days of the
date of this MOU, be responsible for obtaining narrative
appraisals covering the Subject B Properties prepared by a
qualified California -licensed appraiser(s). The CDC shall
have necessary soils studies, Phase I, and if necessary, Phase
II environmental (toxic) assessments conducted on the Subject
Page 4 of 12
MOU between CDC & DISTRICT
24th St./Harrison Ave. Improvements
June 10, 1997
B Properties. In addition, the CDC shall obtain a reuse
analysis of the property located in the northwest quadrant of
I-5 and 24th Street that may be acquired.
6. Within 60 days of receipt of the preliminary title reports,
appraisals, Phase I Environmental, Phase II Environmental
(toxic) assessments, necessary soils studies, and the reuse
analysis, the CDC shall, after consultation with the District,
consider acquisition of the Subject A Properties. If these
acquisitions and related public improvements are to proceed,
factors that need to be considered are (1) the cost of the
Subject A Properties to be acquired and public improvements in
relation to the budget under Paragraph 15; (2) costs to remove
existing improvements and remediate environmental
contamination in the ground and ground -water; (3) agreement on
the reuse of the Subject A Properties not acquired for right-
of-way purposes; and (4) the District's Capital Improvement
Program (CIP) projects and available funding for National
City, as set forth in the July 31, 1995 MOU between the City
of National City and the District, recorded as Document No.
33007 on file in the Office of the District Clerk. The
maximum expenses must be mutually agreed to by both the
District and the CDC through the District's Board of Port
Commissioners and the CDC Board prior to such expenses being
incurred by the CDC, which expenses shall be reimbursed by the
District pursuant to Paragraph 15 of this MOU. These expenses
shall not exceed the sum of $9.1 million (including
documentated expenses already incurred by the District), which
represents the District's approved portion of National City
CIP funds for the "24TH STREET WIDENING AND HARRISON AVENUE
EXTENSION PROJECT" (Exhibit "F"). Reimbursement by District
to CDC for the acquisition of the Subject A Properties and any
Page 5 of 12
MOU between CDC & DISTRICT
24th St./Harrison Ave. Improvements
June 10, 1997
subsequent work will be contingent upon the CDC committing to
the acquisition (or redevelopment by an executed "Owner
Participation Agreement," as approved by both the CDC and the
District) of the Subject B Properties, including relocation
and related activities and installation of public
improvements, including landscaping in accordance with the
Master Plan along 24th Street from I-5 to Harrison Avenue.
All funds forwarded by District for costs incurred pursuant to
this Paragraph, with the exception of funds forwarded for
right-of-way acquisition, shall be deemed an unsubordinated
loan, evidenced by a no -interest, Non -Recourse Note secured
with a Deed of Trust. Said Note shall be payable in full no
later than five (5) years from the date of the forwarding of
the funds by District to the CDC.
7. Within 60 days of receipt of the preliminary title report,
appraisals, Phase I Environmental, Phase II Environmental
(toxic) assessments, necessary soils studies, and reuse
analysis, the CDC shall, after consultation with the District,
consider acquisition of some or all of the Subject B
Properties. If these acquisitions and related public
improvements are to proceed, factors that need to be
considered are (1) the cost of the Subject B Properties to be
acquired in relation to the CDC's budget; (2) costs to remove
existing improvements, relocate, and remediate environmental
contamination in the ground and ground -water; and (3)
agreement on the reuse of the Subject B Properties not
acquired for right-of-way purposes. All improvements will be
demolished or removed from the properties acquired. The CDC
commits to a not -to -exceed expenditure of $3 million for
acquisition of Subject B Properties and adjacent right-of-way
improvements.
Page 6 of 12
MOU between CDC & DISTRICT
24th St./Harrison Ave. Improvements
June 10, 1997
8. Subsequent to acquisition of any Subject A Property,
demolition of improvements, necessary remediation of ground
and ground -water, and completion of any public improvements as
provided in this MOU, the CDC shall, after consultation with
the District, consider the sale or lease to individuals and/or
entities, including the District, for redevelopment purposes
of any Subject A Property upon terms and conditions acceptable
to District. Such terms and conditions may, other than
property acquired for right-of-way purposes, include, but
shall not be limited to, the financial capability and
development experience of the proposed purchaser or lessee;
the nature, scope, timing, and scale of the proposed
development, including the uses proposed to be developed on
the property; and, the compatibility of the proposed
devlopment with adjacent and nearby District activities,
specifically including the proposed National City Marina. In
the event of any such sale, the net proceeds shall be credited
to the CIP funds available for National City Marina
development or other National City District CIP Projects. All
improvements will be demolished on any properties acquired.
9. In carrying out any property acquisitions pursuant to this
MOU, the District and CDC acknowledge and agree that neither
is obligated to exercise its eminent domain authority except
as it deems consistent with the requirements of the law, and
that each shall retain its full and unfettered discretion to
reject the use of eminent domain.
10. At the District's sole option, the CDC shall assist the
District in marketing the District's available Marina -related
property (Exhibit "C," Parcels 2, 2A, 3, and 4).
Page 7 of 12
MOU between CDC & DISTRICT
24th St./Harrison Ave. Improvements
June 10, 1997
11. CDC agrees that the District shall have the right to pave
approximately 7.2 acres (delineated on Exhibit "C," Parcel 2
and 2A, attached hereto and under a part hereof) the District
owns west of the extension of Harrison Avenue and north of
32nd Street (the "Marina -related" property) and use the
property in connection with the District's maritime
operations. On the date a lease is executed for construction
of the National City Marina, District agrees to make said
Marina -related property available at a fair -market price to a
qualified developer for purposes either associated with the
Marina development or other compatible commercial recreational
or residential uses. The CDC shall have the right of first
refusal to purchase the Marina -related, non -Tideland property
for a period of five years, commencing July 1, 1997 and ending
June 30, 2002 as follows:
If the District receives a purchase offer for all or part
of said Marina -related, non -Tideland property (Exhibit
"C," Parcels 2, 2A, 3, and 4), for which District staff
is prepared to recommend acceptance to the District's
Board of Port Commissioners, the District shall notify
the CDC in writing of the price, terms and conditions of
said purchase offer and if the CDC decides to purchase
the property from the District, it must, within thirty
(30) days of the date that the CDC is notified in writing
of said purchase offer, submit its own purchase offer to
the District containing price, terms, and conditions
identical to said purchase offer. If the CDC fails to
timely submit its own purchase offer, the CDC's Right of
First Refusal in this MOU is null and void and of no
further force or effect.
Page 8 of 12
MOU between CDC & DISTRICT
24th St./Harrison Ave. Improvements
June 10, 1997
CDC and the District further agree that the District may use
the three -acre, Commercial/Recreation-zoned property
(delineated in Exhibit "D" attached hereto and made a part
hereof) for maritime operations. District shall make the
Exhibit "D" property available to a qualified lessee within
six months of acceptance of a proposal for a
Commercial/Recreation-zoned use approved by the District.
12. District agrees to aggressively re -advertise the National City
Marina lease and development opportunity in a solicitation for
responses to a Request for Proposals immediately upon
completion of the acquisition of 50% of the total land area of
Subject A and B Properties or execution of an Owner
Participation Agreement for redevelopment of 50% of the total
land area of Subject A and B Properties as approved by both
the CDC and District.
The District and CDC acknowledge the Keyser Marston Associates
study, dated November 1996, concluded that "Successful
marketing of the Marina to a lessee requires the following:
(1) improved overall economic climate and a more favorable
cycle for marinas;
(2) completion of the basic access and landscape
improvements, including signage at the 24th Street entry,
as visible demonstration to developers and the public
that the environment is aesthetically conducive to
visitor services and related uses; and,
(3) redevelopment of key access parcels at the entry to the
marina area at 24th Street."
Page 9 of 12
MOU between CDC & DISTRICT
24th St./Harrison Ave. Improvements
June 10, 1997
The District concurs that with satisfaction of the above
criteria, the National City Marina will be aggressively re-
marketed by the District as a priority assignment.
13. Within 90 days of the exercise of the Option to develop the
National City Marina, the District agrees to let contracts for
the dredging of the marina boat basin.
14. CDC agrees to diligently seek a solution for southern rail -
line access to BNSF trackage, including unrestricted rights to
that trackage for service to the District's National City
Tidelands.
15. The District and the CDC will jointly agree on a budget for
all of the expenses anticipated by the execution of this MOU.
Prior to the retention of consultants, awarding the contracts,
acquisition of property, or any of the actions contemplated in
this MOU, the amount of the expenditure involved must be
consistent with the approved budget and reimbursement shall be
promptly (within 30 days) made for the approved expenses. The
budget may be amended from time to time as needed by mutual
consent of both parties. Both the District and the CDC agree
not to unreasonably withhold approval of a request for
approval of the budget, for payments, and/or for amendments to
the budget. Liability and indemnification issues between the
District and the CDC will be addressed separately under each
contract and/or authorization to proceed.
16. The District is considering the acquisition or lease of
additional property (delineated on Exhibit "E" attached
hereto) at the southeast corner of the intersection of
Tidelands Avenue and 24th Street, National City. CDC and the
Page 10 of 12
MOU between CDC & DISTRICT
24th St./Harrison Ave. Improvements
June 10, 1997
District agree that should the District's acquisition or lease
of the property be successful, the District may use the
property for maritime -related purposes.
Page 11 of 12
MOU between CDC & DISTRICT
24th St./Harrison Ave. Improvements
June 10, 1997
The District and the CDC agree to cooperate and expedite the
processes as described above. This MOU shall terminate on June 30,
1999, provided that the rights of first refusal granted to the CDC
pursuant to Section 11 shall survive the expiration or termination
of this MOU. Any extension must be mutually agreed upon, in
writing, by the District and the CDC prior to December 30, 1998.
Dated:
Port
By:
June 10,
CDC Attorjiey
By: AV
George H. Eiser, III
PD/bhm
Draft.mou
Revised: 06/10/97
Attachments:
Exhibit
Exhibit
Exhibit
Exhibit
Exhibit
Exhibit
"An
"B"
"C"
1997
SAN DIEGQUNIFIED P_iRT DISTRICT
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY
By:
George . Waters, Chairman
- Subject A Properties/PORT possible acquisitions
- Subject B Properties/CDC possible acquisitions
- 7.2-Acres of District -owned property
"D" - 3-Acres of District -owned,
11E11
IFn
zoned property
- Additional Property of
considering acquisition
Commercial/Recreation-
which District is
- Expenses/National City's CIP funds for
widening and Harrison Avenue extension
24th Street
Page 12 of 12
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EXHIBIT "C"
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NO. 244 DO3
NATIONAL CITY PARCEL 27
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Address: 32nd Street & Tidelands Avenue
Land Area 147,900 s.f.
PerMitted Uses: Commercial / Recreational
Description of Improvements:
147,900 s.f. asphalt paving, 6' chain Zink fence with
barbed wire along perimeter of parcel, electrical transformer.
* Adjacent to park.
EXHIBIT "D"
EXHIBIT "E"
.
Exhibit "F" - Expenses/National City's CIF funds far 24th Street
widening and Harrrison Avenue Extension
24th Street Harrison Avenue
Subtotal $3,520,000 $6,500,000
TOTAL
$9,100,000
=W==C.=====
EXHIBIT "F"
Z06 99Z "ON
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