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HomeMy WebLinkAboutMetropolitan Transit System, San Diego and Arizona Eastern Railroad (MOU) 20051255 Imperial Avenue, Suite 1000 San Diego, CA 92101-7490 (619) 231-1466 • FAX (619) 234-3407 11x Metropolitan Transit System MTS Doc. No. S200-06-291 (PC 50771) MEMORANDUM OF UNDERSTANDING E3ETWEEN THE SAN DIEGO METROPOLITAN TRANSIT SYSTEM, SAN DIEGO AND ARIZONA EASTERN RAILROAD, CITY OF NOTIONAL CITY, AND COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY This Memorandum of Understanding (MOU) is made and entered into by and between the San Diego Metropolitan Transit System (MTS), a California public agency established under the Public Utilities Code, the San Diego and Arizona Eastern (SD&AE) Railway Company, a public benefit corporation whose sole member is MTS, the City of National City (City), and the Community Development Commission of the City of National City (CDC). WHEREAS, The City and the CDC are a municipal corporation and a community development commission respectively organized and existing under the laws of the State of California. The purpose of this MOU is to document the parties' understanding and responsibilities with respect to the redevelopment of properties in National City in the areas shown on Exhibit A attached (the Redevelopment Area) hereto while at the same time providing for current and future rail service through the Redevelopment Area for MTS and the SD&AE. 1. Except in and adjacent to the hotel site area (described as "Parcel 3 Site Hotel Area" and "Parcel 4 Site Hotel Area" on Exhibit A attached hereto), neither MTS nor SD&AE (for convenience, also hereinafter referred to as the Railroad) can find evidence of property ownership interests in the areas covered by the terms of this agreement. If, in the future, it is discovered that the Railroad has either fee title or an easement in any of the areas covered by this agreement, CDC shall pay the Railroad for the value of the property and the Railroad agrees to quitclaim any such interest to lthe CDC, as follows: a. For fee, the value of $12.00 per square foot. b. For an easement, the value of $E.00 per square foot. 2. All new track work, signals, crossing impravements, and demolition in areas owned or controlled by the Railroad, or which will be owned or controlled by Railroad, shall be done subject to plans and specifications approved by Railroad, by a contractor approved by Railroad and subject to the supervision of Railroad, all at the CDC's expense provided that the CDC shall have approved the cost of such work and demolition in advance of it being performed. Minimum design standards for all new track construction shall be Federal Railroad Administration Class 2, using 115-pound rail, at a minimum design speed of 25 miles per hour. 3. The Railroad shall be responsible for the maintenance of all new track and appurtenances at any at -grade crossings constructed pursuant to the terms of this MOU. As a condition precedent to the construction of any at -grade crossing, including the crossing at Bay Marina Drive and the private driveway south of the Hotel site (if subject to the California Public Utilities Commission's [PUC's] jurisdiction), the City will apply to the PUC for a permit to construct an at -grade crossing at these locations. If the permit is issued, any safety Metropolitan Transit System (MTS) is comprised of the Metropolitan Transit Developmen+ Board (MTDB), a California public agency, San Diego Transit Corp., and San Diego Trolley, Inc., in cooperation with Chula Vista Transit and National City Transit. MTS is the taxicab admir istrator for eight cities. MTDB Is owner of the San Diego and Arizona Eastern Railway Company. MTDB member agencies include: City of Chula Vista, City of Coronado, City of El Cajon, City of Imperial Beach, City of La Mesa, City of Lemon Grove, City of National City, City of Poway, City of San Diego, City of Santee, and the County of San Diego. improvements required by the PUC, including, but not limited to, concrete crossing material, flashers, and warning devices, shall be installed pursuant to the terms of paragraph 2. a. The Railroad agrees to cooperate with the City in the application process, including the execution of a license, cost, and maintenance agreement between the City and the Railroad, which will address, among other things, the maintenance obligations of each party at the proposed crossing with the understanding that the Railroad will be responsible for maintenance of the rail, flashers, and warning devices (at City's expense) and the City will be responsible for maintenance of the roadway improvements. 4. The Railroad shall have no control over demolition of track in areas not owned or controlled by the Railroad. 5. Any arrangement entered into between the Port of San Diego, Burlington Northern Santa Fe (BNSF) Company, and the City shall not preclude Railroad from rail access within Bay Marina Drive to the terminal area along Harrison Avenue/Marina Way and the Coronado Railroad right-of-way. 6. Harrison Street/Allev a. CDC shall remove the rail tracks in the alley between the "Motivational Systems, Inc. (MSI)" parcel and "MSI Parking Lot" parcel, and Parcel 1 B and 1 C ("Olson"), identified as "6.a. CDC to Remove Rail Tracks," all as shown on Exhibit A attached hereto. The removal will include the rail switch and appurtenances on the south side of Bay Marina Drive to the terminus of the tracks approximately 400 feet north of 23rd Street. b. CDC, at the request of the Railroad and pursuant to plans developed by the Railroad, will install tracks and appurtenances across Bay Marina Drive to connect the existing tracks on the north and south side of Bay Marina Drive, identified as "6.b. CDC to Connect to Existing Tracks," as shown on Exhibit A, subject to the terms of paragraphs 2 and 3. (1) At the option of the Railroad, in lieu of the terms of paragraph 1.b. above, the City agrees to cooperate with the San Diego Freight Rail Advisory Council (the "Council") or other public agency as necessary in the project development and construction of the connection between the SD&AE main lines and the BNSF main lines across Marina Way in the general area between Bay Marina Drive and the Salt Marsh (as shown on Exhibit B attached hereto). Cooperation shall mean granting of right-of-way necessary from the City or CDC at no cost to the Council and affirmative support of the Council's at -grade crossing permit application from the PUC. c. The CDC will remove the tracks in Harrison Street north of 23rd Street beginning at the existing switch, which connects the track to the BNSF's main track, identified as "6.c. Remove Tracks North of 23rd Street Beginning at the Switch" as shown on Exhibit A. -2- 7. Hotel Site Area a. SD&AE will grant to the CDC a nonexclusive license for parking, drainage, access, and related purposes over the area identified as "7.a. Parking Area-SD&AE to Grant Parking License to CDC" on "Parcel 4 Site Hotel Area" on Exhibit A. The license will provide that no parking will be allowed withinl0 feet of the centerline of the existing track and will further provide the CDC with the right to sublicense to the developer of the hotel site with prior approval of the Railroad. Any such license shall be revocable by the SD&AE upon 30 days' notice to the CDC. b. The CDC will install a private driveway at -grade across the tracks of Railroad at the location identified as "7.b. Storm Drain and Driveway License" on Exhibit A, subject to the terms of paragraphs 2 and 3. c. The CDC will install a storm drain below the tracks of Railroad at the location identified as "7.b. Storm Drain and Driveway License" on Exhibit A, subject to the terms of paragraphs 7.d., below. d. Prior to development of any public improvements or off -site improvements related to development in the hotel site area, CDC shall prepare detailed plans for Railroad's review and approval, which approval shall only pertain to improvements on the Railroad's property. All pipeline improvements under Railroad's tracks shall conform to American Railway Engineering and Maintenance of Way Association -recommended practices. e. Plats and legal descriptions for the easements described above shall be prepared by the City/CDC, subject to the review and approval of the Railroad. f. The value of the easement areas described in this paragraph and granted to the City and the CDC shall be $10.00 per square foot and shall be paid to the SD&AE by the CDC/City or the hotel developer prior to development of the hotel site. 8. Retaining Wall Easement SD&AE will grant an easement to the City for the existing retaining wall adjacent to Paradise Marsh, shown as "Retaining Wall Easement" on Exhibit B. 9. Harbor Drive Rail Crossing City shall remove paving to top of rail elevation if requested by SD&AE if and when the rail lines crossing Harbor Drive are put back into service upon 30 days' written notice. City shall complete the removal of the paving no later than 90 days following the 30 days' written notice. Failure to remove the paving within this time period will result in the imposition of liquidated damages in the amount of $50 for every day the project is not completed within the aforementioned time schedule. The terms of paragraph 4.b are incorporated herein. -3- 10. This MOU represents the general agreement between the parties with respect to the Redevelopment Area. The parties agree to execute more specific agreements in the future as required to carry out the terms and conditions of this MOU, the costs of which are to be paid by the CDC. IN WITNESS WHEREOF, the parties hereto have caused this Memorandum of Understanding to be executed by their respective duly authorized representatives on this day of ,200 METROPOLITAN TRANSIT SYSTEM Paul C. ski Chief Executive Officer Approved as to form: Tiffany . -nze, MTS General C. • SAN DIEGO AND ARIZONA EASTERN RAILWAY COMPANY Title: `IJ SChamp/MOU SDAE.S200-06-291.CW ILLI 10/18/05 Attachments: Exhibit A - Redevelopment Area Exhibit B — MOU Area CITY OF NATIONAL CITY By: Nick Inzunza Title: Mayor COMMUNITY DEVELOPMENT COMMISSION By: Title: 1 t EC 10 -4- cdcnc— logo.gif L EXHIBIT A REDEVELOPMENT AREA S200-06-291 kJ Ponnrag Commit/ mkdo» or Kiksenat thy EXHIBIT B Not to Scale S200-06-291 B-2 RESOLUTION NO. 2005 — 255 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE. MAYOR TO EXECUTE A MEMORANDUM OF UNDERSTANDING BETWEEN METROPOLITAN TRANSIT SYSTEM, SAN DIEGO AND ARIZONA EASTERN RAILWAY COMPANY, THE CITY OF NATIONAL CITY, AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY WHEREAS, the Community Development Commission of the City of National City ("CDC") has approved Disposition and Development Agreements with Robert Young, the Olson Company and MRW Group, Incorporated for the redevelopment projects collectively. known as Marina Gateway within the National City Redevelopment Project; and WHEREAS, the development projects collectively known as Marina Gateway require access to and vacation and removal of certain unused railroad tracks within the project sites; and WHEREAS, Metropolitan Transit System and San Diego Arizona Eastern Railway Company have approved a Memorandum of Understanding to allow access to and the removal of certain railroad tracks by the CDC to facilitate the redevelopment project; and WHEREAS, said Memorandum of Understanding sets forth terms and conditions that are acceptable to the CDC; and WHEREAS, by implementing the terms and conditions of the MOU, the City of National City will accept easements previously held by the Metropolitan Transit System and San Diego Arizona Eastern Railway Company. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute the Memorandum of Understanding between Metropolitan Transit System, San Diego and Arizona Eastern Railway Company, the City of National City, and the Community Development Commission of the City of National City. Said Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 13th day of December, 2005. ATTEST: el Della, City Ierk Nick n` n r !' ayor APPROVED AS TO FORM: %") George H. Eiser, III City Attorney Passed and adopted by the Council of the City of National City, California, on December 13, 2005, by the following vote, to -wit: Ayes: Councilmembers Inzunza, Morrison, Natividad, Parra, Zarate. Nays: None. Absent: None. Abstain: None. A AUTHENTICATED BY: NICK INZUNZA Mayor of the City of National City, California Cerkoftheo� City City National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2005-255 of the City of National City, California, passed and adopted by the Council of said City on December 13, 2005. City Clerk of the City of National City, California By: Deputy City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE • December 13.2005 AGENDA ITEM NO. C 2Qns -73 1 ( TEM TITLE Resolution — Approving a Memorandum of Understanding between Metropolitan Transit System, San Diego and Arizona Eastern Railway Company, the City of National City and the Community Development Commission of the City of National City and authorizing the Mayor to execute the Agreement. PREPARED BY Patricia Beard Redevelopment Projects Manager DEPARTMENT Community Development Commission EXPLANATION The development of the projects collectively known as Marina Gateway — including the redevelopment of Motivational Systems, Incorporated, MRW Group Hotel and Commercial Project and Harrison Avenue condominiums by the Olson Company require access to and removal of certain unused railroad tracks in the Harbor District of the National City Redevelopment Project. Since the approval of the Disposition and Development Agreements for the projects in 2004, Community Development Commission staff has been working with Metropolitan Transit System ("MTS") and San Diego and Arizona Eastem ("SDAE') to reach an agreement that would allow the CDC to complete its obligations egarding the railroad tracks so redevelopment can occur. The attached Memorandum of Understanding ("MOU"), approved earlier this year by MTS and SDAE, would allow the projects to go forward as desired. Environmental Review Categorically exempt from CEQA. Class I Section 1530.1. (existing facilities). CEQA is not applicable to this action. Financial Statement The City will acquire easements previously held by MTS and SDAE if the MOU is implemented Account No STAFF RECOMMENDATION Adopt the resolution approving the MOU with MTS, SDAE, City of National City and. National City CDC BOARD / COMMISSION RECOMMENDATION Not applicable to this action ATTACHMENTS .. Background report 2. Proposed Notice of Exemption 3. Memorandum of Understanding 4. Resolution Resolution No. 2 °US- ZS.S A_ )M /O/RA\ BACKGROUND REPORT On December 17, 2002, the Community Development Commission approved a Disposition and Development Agreement with Robert Young for the consolidation and redevelopment of Motivational Systems on Cleveland Avenue between 201' and 23n1 Streets. The Disposition and Development Agreement requires the removal of unused railroad spur tracks owned by San Diego Arizona Eastern Railway Company. On March 23, 2004 the Community Development Commission, approved a Disposition and Development Agreement with the Olson Company for a redevelopment project on 1.26 acres at 835 Bay Marina Drive and intersected by unused railroad spur tracks of the San Diego Arizona Eastern Railway Company. This Disposition and Development Agreement requires the quit claim of the land occupied by the tracks to the Olson Company for inclusion in the project. On May 25, 2004 the Community Development Commission approved a Disposition and Development Agreement with MRW Group, Inc. to develop a hotel and commercial project on 6.32 acres Located at the southeast comer of Bay Marina Drive and Harrison Avenue. The project site includes an inactive railroad spur and an active but unused line owned by the San Diego Arizona Eastern Railway Company. The project requires the removal of the abandoned railroad spur and access across the active but unused rail line within the project site. Since the approval of the Disposition and Development Agreements, Community Development Commission staff has been working with Metropolitan Transit System and San Diego. Arizona Eastern Railway Company to reach an agreement that would allow the Community Development Commission to complete its obligations so that redevelopment can occur. The attached Memorandum of Understanding, approved earlier this year by Metropolitan Transit System and San Diego Arizona Eastern Railway Company, would allow the projects to go forward as desired. The primary- points of the Memorandum of Understanding would allow the Community Development .Commission, at its expense, to remove the railroad spur tracks from within redevelopment project sites in the National City Harbor District. It would also allow the Marina. Gateway Hotel and Commercial project to utilize an active but unused track easement as a drive aisle for the project, and allow an at -grade crossing of this unused track for project access. The Community Development Commission would also be required to install new tracks connecting an San . Diego Arizona Eastern Railway. Company line crossing Bay Marina Drive at Harrison Ave, which would be completed with the upcoming improvements to Bay Marina Drive. The agreement sets forth that the Community Development Commission will install tracks, at the option of the railroad, connecting other existing railway lines north and south of Bay Marina Drive. The City of National City will acquire easements as a result of this Agreement; therefore a City Council. action to approve the Memorandum of Understanding is needed. The attached exhibits to the Memorandum of Understanding are maps showing the actions anticipated with approval. ATTACHMENT 1 NOTICE OF EXEMPTION TO: County Clerk County of San Diego P.O. Box 1750 1600 Pacific Highway, Room 260 San Diego, CA 92112 Protect Title: MOU between Metropolitan Transit. System, San Diego and Arizona Eastern Railway Company, City, of National City and National City Community Development Commission Protect Location: Railroad tracks/easements in the vicinity of Bay Marina Drive, Cleveland Avenue and Harrison Avenue in National City, California. Contact Person: Patricia Beard Telephone Number: 619-336-4250 Description of Nature, Purpose and Beneficiaries of Protect: MOU entailing transfer of ownership, creation of easements, removal of unused railroad tracks, provisions for future use and maintenance Applicant: Community Development Commission Telephone Number: 619-336-4250. 140.East 12m St, Ste B National City CA 91950 Exempt Status: ❑ Statutory. Exemption. (State type and Section No., if applicable) ® Categorical Exemption. Class 1 Section 15301 (Existing Facilities) ❑ Not a project as defined in Section 15332 of CEQA E Not subject to CEQA (Sec. 15061b3) Reasons why proiect is exempt: Minor alteration and Removal of unused existing railroad tracks. This project is not located in or nearany habitat or natural areas and is entirely located within public rights of way and previously urbanized, developed private property. Future railway operations will not be impaired by this project. There is no expansion of any use in this project. .The .project will have no foreseeable impacts on the environment, e.g. air quality, habitat, noise, traffic etc. Date: 12-13-2005 NAME Patricia W. Beard Title Redevelopment Projects Manager Attachment 2 RESOLUTION NO. 2005-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN METROPOLITAN TRANSIT SYSTEM, SAN DIEGO AND ARIZONA EASTERN RAILWAY COMPANY, CITY OF NATIONAL CITY AND NATIONAL CITY COMMUNITY DEVELOPMENT COMMISSION AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT WHEREAS, the National City Community Development Commission has approved Disposition and Development Agreements with Robert Young, the Olson Company and MRW Group, Incorporated for the redevelopment projects collectively known as Marina Gateway within the National City Redevelopment Project; and, WHEREAS, the development projects collectively known as Marina Gateway require access to and vacation and removal of certain unused railroad tracks within the project sites; and, WHEREAS, Metropolitan Transit System and San Diego Arizona Eastern Railway Company have approved a Memorandum of Understanding to allow access to and the removal of certain railroad tracks by the Community Development Commission to facilitate the redevelopment project; and WHEREAS, said Memorandum of Understanding sets forth terms and conditions that are acceptable to the Community Development Commission; and WHEREAS, by implementing the terms and conditions of the MOU, the City of National City will accept easements previously held by the Metropolitan Transit System and San Diego Arizona Eastern Railway Company; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of National City hereby approves the Memorandum of Understanding between Metropolitan Transit System, San Diego. and Arizona Eastern Railway Company, City of National City and National City Community Development Commission; and BE IT FURTHERED RESOLVED, that the City Council of the City of National. City authorizes the Mayor toexecute the Agreement. PASSED, APPROVED AND ADOPTED this 13th day of December,. 2005. Nick Inzunza, Mayor ATTEST: Michael Dalla, City Clerk -2- STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF NATIONAL CITY ) ss. I, Michael Dalla, City Clerk for the City of National City, do hereby certify that the foregoing Resolution No. 2005-xx was adopted at a joint meeting of the Community Development Commission of National City and the City Council of the City of National City held on December 13, 2005, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Michael Dalla, City Clerk -3- 1255 knperial Avenue. Suite 1000 San Diego. CA 92101-7490 (619) 231-1466 • FAX (619) 234-3407 Metropolitan Transit System. MTS Doc. No. S200-06-291 (PC 50771) MEMORANDUM OF UNDERSTANDING BETWEEN THE SAN DIEGO METROPOLITAN TRANSIT SYSTEM, SAN DIEGO AND ARIZONA EASTERN RAILROAD, CITY OF NATIONAL CiTY, AND COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY This Memorandum of Understanding (MOU) is made and entered into by and between the San. Diego Metropolitan Transit System (MTS), a California public agency established under the Public Utilities Code, the San Diego and Arizona Eastern (SD&AE) Railway Company,, a. public benefit corporation whose sole member is MTS, the City of National City (City), and the Cornmunity Development Commission of the City of National City (CDC). WHEREAS, The City and the CDC are a municipal corporation and a community development commission respectively organized and existing under the laws of the State of California. The purpose of this MOU is to document the parties' understanding and responsibilities with respect to the redevelopment of properties in National City in the areas shown on Exhibit A attached ithe Redevelopment Area) hereto while at the same time providing for current and future rail service through the Redevelopment Area for MTS and the SD&AE. 1. Except in and adjacent to. the hotel site area (described as "Parcel 3. Site Hotel Area" and 'Parcel 4 Site Hotel Area" on Exhibft A attached hereto), neither MTS nor SD&AE (for convenience, also hereinafter referred to as the Railroad) can find evidence of property ownership interests in the areas covered by the terms of this agreement if, in the future, it is discovered that the Railroad has either fee title or an easement In any of the areas covered by this agreement, CDC shall pay the Railroad for the value of the property and the Railroad agrees to quitclaim any such interest to the CDC, as follows: a. For fee, the value of $12.00 per square foot. b. For an easement, the value of $6.00 per square foot. 2. All new track work, signals, crossing improvements, and demolition In areas owned or controlled by the Railroad, or which will be owned or controlled by Railroad, shall be done subject to plans and specifications approved by Railroad, by a contractor approved by Railroad and subject to the supervision of Railroad, all at the CDC's expense provided that the CDC shall have approved the cost of such work and demolition in advance of It being performed. Minimum design standards for all new track construction shall be Federal Railroad Administration Class 2, using 115-pound rail, at a minimum design speed of 25 miles per hour. • 3. The Railroad shall be responsible for the maintenance of all new track and appurtenances at any at -grade crossings constructed pursuant to the terms of this MOU. As a condition precedent to the construction of any at -grade crossing, including the crossing at Bay Marina. Drive and the private driveway south of • the Hotel site (if subject to the California Public Utilities Commission's [PUC's] jurisdiction), the City will apply to the PUC for a permit to construct an at -grade crossing at these locations. If the permit is issued, any safety Attachment 3 Mwoport.. Mandl syetern v.41,44 coI priced of tie Metropolitan Transit Development Dowd (Moe). a CoMonla public agency. San Diego Traria C+x0., and sawn Diego 'Polley, Inc. COOpwallob with Chula Vista Transit and Manorial City Inman. MIS is Ibis taxicab administrator Tar eight ales. PADS is owner of Ms San Diego and Mtona Eastern Railway Company. MTDD member agencies 1ne►de: pity of Chula Who City of Ceawdo, City of El Cajen. City of Impend Desah City cif La Mae. City of Larson Gravve, City of Rational City. City of Poway, city of San Cle o, City of Sara«, and the County of San Diego. improvements required by the PUC, including, but not limited to, concrete crossing material, flashers, and warning devices, shall be installed pursuant to the terms of paragraph 2. a. The Railroad agrees to cooperate with the .City in the application process, including the execution of a license, cost, and maintenance agreement between the city and the Railroad, which wiN address, among other things, the maintenance obligations of each party at the proposed crossing with the understanding that the Railroad will be responsible for maintenance of the rail, flashers, and warning devices (at City's expense) and the City will be responsible for maintenance of the roadway Improvements. 4, The Railroad shall have no control over demolition of track In areas not owned or controlled by the Railroad. Any arrangement entered into between the Port of San Diego, Burlington Northern Santa Fe (BNSF) Company, and the City shall not preclude Railroad from rail access within Bay Marina Drive to the terminal area along Harrison Avenue/Marina Way and the Coronado Railroad right-of-way. B. Harrison Street/Ailev a. CDC shall remove the rail tracks in the alley between the 'Motivational Systems, Inc. (MSI)" parcet and "MSI Parking Lot' parcel, and Parcel 1B and 1C ('Olson"), identified as'6.a. CDC to Remove Rail Tracks, ail as shown on Exhibit A attached hereto. The removal will Include the rail switch and appurtenances on the south side of Bay Marina Drive to the terminus of the tracks approximately 400 feet north of 23rd Street. b. CDC, at the request of the Railroad and pursuant to plans developed bythe Railroad, will install tracks and appurtenances across Bay Marina Drive to connect the existing tracks on the north and south side of Bay Marina Drive, identified as "6.b. CDC to Connect to Existing Tracks, as shown on Exhibit A, subject to the terms of paragraphs 2 and 3. (1) At the option of the Railroad, in lieu of the terms of paragraph 1.b. above, the City agrees to cooperate with .the San Diego Freight Rail Advisory Council (the "Council") or other public agency as necessary in the project development and construction of the connection between the SD&AE main lines and the BNSF main lines across Marina Way in the general area between Bay Marina Drive and the Salt Marsh (as shown on Exhibit B attached hereto). Cooperation shall mean granting of right-of-way necessary from the City or CDC at no cost to the Council and affirmative support of the Counci's at -grade crossing permit application from the PUC. c. The CDC will remove the tracks in Harrison Street north of 23rd Street beginning at the existing switch, which connects the track to the BNSF's main track, identified as '6_c. Remove Tracks North of 23rd Street Beginning at the Switch" as shown on Exhibit A 4 • 7. Hotel Site Area a. SD&AE will grant to the CDC a nonexclusive license for parking, drainage, access, and related purposes over the area identified as "7.a. Parking Area-SD&AE to Grant Parking License to CDC" on "Parcel 4 Site Hotel Area" on Exhibit A. The ilcense will provide that no parking will be allowed withinl0 feet of the centerline of the existing track and will further provide the CDC with the right to sublicense to the developer of the hotel site with prior approval of the Railroad. Any such license shall be revocable by the SD&AE upon 30 days' notice to the CDC. b. The CDC will install a private driveway at -grade across the tracks of Railroad at the location identified as "7.b. Storm Drain and Driveway License" on Exhibit A, subject to the terms of paragraphs 2 and 3. c. The CDC will install a storm drain below the tracks of Railroad at the location identified as "7.b. Storm Drain and Driveway License" on Exhibit A, subject to the terms of paragraphs 7.d., below. d. Prior to development of any public improvements or off -site improvements related to development In the hotel site area, CDC shall prepare detailed plans for Railroad's review and approval, which approval shall only pertain to improvements on the Railroad's property. Ali pipeline improvements under Railroad's tracks shall conform to American Railway Engineering and Maintenance of Way Association -recommended practices. e. Plats and legal descriptions for the easements described above shall be prepared by the City/CDC, subject to the review and approval of the Railroad. f. The value of the easement areas described in this paragraph and granted to the City and the CDC shall be $10.00 per square foot and shall be paid to the SD&AE by the CDC/City or the hotel developer prior to development of the hotel site. 8. Retaining Wall Easement SD&AE will grant an easement to the City for the existing retaining wall adjacent to Paradise Marsh, shown as `Retaining Wall Easement' on Exhibit B. 9. Harbor Drive Rail Crossing City shall remove paving to top of rail elevation if requested by SD&AE if and when the rail lines crossing Harbor Drive are put back into service upon 30 days' written notice. City shall complete the removal of the paving no later than 90 days following the 30 days' written notice. Failure to remove the paving within this time period will result in the imposition of liquidated damages In the amount of $50 for every day the project is not completed within the aforementioned time schedule. The terms of paragraph 4.b are incorporated herein. -3- 10. This MOU represents the general agreement between the parties with respect to the Redevelopment Area. The parties agree to execute more specific agreements inthe future as required to carry out theterms and conditions of this MOU, the costs of which are to be paid by the CDC. IN WITNESS WHEREOF, the parties hereto have caused this Memorandum of Understanding to be executed by their respective duly authorized representatives on this day of , 200 METROPOLITAN TRANSIT SYSTEM CITY OF NATIONAL CITY Chief Executive Officer Approved as to form: •�. Tiffany 1%`•' _ MTS General C. •nsel SAN DIEGO AND ARIZONA EASTERN RAILWAY COMPANY By: Tide: SChamp/MOU SDAE.S200-06-291.CW ILLI 10/18/05 Attachments: Exhibit A - Redevelopment Area Exhibit B — MOU Area By: Title: COMMUNITY DEVELOPMENT COMMISSION By: Title: EXHIBIT A REDEVELOPMENT AREA cdcnc— logo.gif S200-06-291 EXHIBITII MOU AREA S200-06-29 1 tairsq Dilekvaisot eqateskdo lortioihmi t B-2 EXHIBIT B• Not to Scale S200-06-291 RESOLUTION NO. 2005 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A MEMORANDUM OF UNDERSTANDING BETWEEN METROPOLITAN TRANSIT SYSTEM, SAN DIEGO AND ' ARIZONA EASTERN RAILWAY COMPANY, THE CITY OF NATIONAL CITY, AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY WHEREAS, the Community Development Commission of the City of National City ("CDC") has approved Disposition and Development Agreements with Robert Young, the Olson Company and MRW Group, Incorporated for the redevelopment projects collectively known as Marina Gateway within the National City Redevelopment Project; and WHEREAS, the development projects collectively known as Marina Gateway require access to and vacation and removal of certain unused railroad tracks within the project sites; and WHEREAS, Metropolitan. Transit System and San Diego Arizona Eastem Railway Company have approved a Memorandum of Understanding to allow access to and the removal .of certain railroad tracks by the CDC to facilitate the redevelopment project; and WHEREAS, said Memorandum of Understanding sets forth terms and conditions that are acceptable to the CDC; and WHEREAS, by implementing the terms and conditions of the. MOU, the City of National City will accept easements previously held by the Metropolitan Transit System and San Diego Arizona Eastern Railway Company. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute the Memorandum of Understanding between Metropolitan Transit System, San Diego and Arizona Eastem Railway Company, the City of National City, and the Community Development Commission of the City of National City. Said Agreement is on file In the office of the City Clerk. PASSED and ADOPTED this 13th day of December, 2005. ATTEST: Michael Della, City Clerk Nick Inzunza, Mayor APPROVED AS TO FORM: George H. Eiser, III City Attorney ATTACHMENT 4