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HomeMy WebLinkAboutItem 3: Exchange of Real Property Interests on Franklin Boulevard ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Action: Exchange of Real Property Interests on Franklin Boulevard Meeting Date: October 23, 2006 Agenda Item Number: 3 Department: Public Works Staff Contact: Mark Schoening www.eugene-or.gov Contact Telephone Number: 682-5243 ISSUE STATEMENT The City Council is requested to approve an exchange of an approximate 0.29 acre City-owned property fronting on Franklin Boulevard for an approximate 0.56 acre exclusive easement across a portion of the adjacent property owned by Tedron Properties (site of the new Holiday Inn Express) which contains a segment of the Millrace. In addition, Tedron Properties will pay the City $143,300 at the time of closing of escrow. BACKGROUND This proposed exchange was presented to the council as a Consent Calendar item at the September 25, 2006, City Council meeting. The item was pulled from the Consent Calendar and then tabled with the council requesting additional information pertaining to a number of issues, including whether or not the Oregon Department of Transportation (ODOT) would grant an access permit to the City-owned property, how this exchange may meet the needs of a future bike/pedestrian path in this area, and whether the easement will convey the necessary rights to provide such public access and development of the easement corridor. The City property proposed for exchange is mostly at-grade with Franklin Boulevard and has been vested in City ownership since 1926. The City also owns a larger tract of land at a lower elevation near the Willamette River and the Millrace, which will be retained in City ownership. A map is attached to illustrate the proposed areas of exchange. This segment of Franklin Boulevard is under ODOT jurisdiction and is a limited access highway. As such, ODOT has stated it will not permit an access from Franklin to serve the City lot. Access would be required through the adjacent ownership, resulting in the highest and best use of the City property to be assemblage with the adjacent property. A market value appraisal was completed by an independent appraisal firm which concluded a cash difference in value of the two properties of $35,000. The appraiser appraised the City parcel based upon what someone other than the adjacent owner would be willing to pay for the property. ODOT informed the appraiser an additional access onto Franklin/Highway 99 would not be permitted to serve the City parcel. As such, the appraised value of the City parcel was substantially discounted because the access to Franklin Boulevard is restricted by ODOT. However, in further negotiations, the adjacent owners acknowledged there was additional value in the City parcel when assembled with their property as compared to the stand alone appraised value. This is primarily because the adjacent ownership has existing access onto both Franklin Boulevard and Garden Avenue which can serve the City parcel upon assemblage. Since the September 25 City Council meeting, staff has further researched the restricted L:\CMO\2006 Council Agendas\M061023\S0610233.doc access to the site. Exhibit A is an aerial that illustrates the City parcel and frontage on the highway. The two westbound lanes closest to the property are the off ramp of northbound I-5 which is under ODOT jurisdiction. Consistent with the access management standards in ODOT’s Highway Management Plan and Division 51 of the Oregon Administrative Rules pertaining to access control, ODOT will not permit a new access approach onto this section of highway/freeway ramp. The jurisdictional transfer from ODOT to the City of Eugene of a portion of Franklin Boulevard/Highway 99 does not include this segment. The transfer area begins on the west side of the Walnut Street intersection and continues westerly. ODOT will retain the intersection and the area east of the intersection as it involves the I-5 off ramp. It should further be noted that even if there was an access constructed to this site, it would only be accessible from the off ramp lanes. The main westbound traffic movement from Springfield are the next two lanes to the south of the off ramp and the traffic in those lanes could not make a legal or safe turn to cross the off ramp lanes. The eastbound traffic movement also would not be permitted to cross the four westbound lanes or the existing median between the east and westbound lanes. The appraised market value of the easement rights of the Tedron property were diminished significantly because most of this area is encumbered by the existing Millrace. As such, the City and the property owners agreed upon the proposed cash difference of $143,300, or about $108,300 more than the initial appraisal of $35,000 with the differential to be paid to the City by Tedron Properties. The proposed settlement is based upon an average unit value of the entire Millrace easement area and the northern- most 2,000 square feet of the city parcel (very steep slope) of $.75 per square foot, while the majority of the City parcel which is at street grade is valued at $15.00 per square foot. Public Works staff has further reviewed the proposed exchange of property rights with Planning and Development staff with regard to desired development plans in the area, the Walnut Station mixed-use study, and related plans for possible boulevard improvements, extension the pedestrian/bicycle corridor, and control and maintenance of the Millrace, as well as its connectivity to existing City owned parks and open space lands immediately east of the subject area and adjacent to the river. While these future improvements are still under study and subject to further design input, it appears obtaining control of the Millrace would be advantageous. The proposed easement will convey to the City all rights of possession to the subject area including, but not limited to, public bicycle/pedestrian access, maintenance of the Millrace, removal or planting of trees and vegetation, or other improvements as deemed appropriate by the City. Exhibit B illustrates a typical cross section of the Millrace area to be conveyed to the City. This shows the approximate distances beginning from the edge of the existing motel parking lot (left side of the exhibit), the distance to the edge of the Millrace, the distance from the Millrace to the railroad tracks, and from the railroad tracks to the river. The current Transplan identifies a future bike path in the area between the Millrace and the railroad. The 1974 Eugene Bikeways Master Plan included a cross section of the area showing the bike path being placed between the railroad tracks and the river. Either location will require the City to negotiate with the railroad for an easement to place the bike path on railroad property. L:\CMO\2006 Council Agendas\M061023\S0610233.doc RELATED CITY POLICIES ? Sustainable Development A community that meets its present environmental, economic, and social needs without compromising the ability of future generations to meet their own needs. ? Effective, Accountable Municipal Government A government that works openly, collaboratively, and fairly with the community to achieve measurable and positive outcomes. COUNCIL OPTIONS The council has the option of either accepting or rejecting the proposed exchange with Tedron Properties. If the council agrees to the proposed exchange and terms, it may consummate the transaction consistent with Eugene Code 2.872 which states “a proposal acceptable to the City Manager shall be presented to council for its action.” If the council chooses to reject the proposed exchange, it may elect to renegotiate modifications to the proposed exchange terms or choose to retain ownership of the present City-owned lot, in which case Tedron Properties would continue to own and control the subject portion of their property. CITY MANAGER’S RECOMMENDATION It is recommended that the council direct the City Manager to proceed with the exchange of the subject properties as described above subject to the City receiving $143,300 in addition to the exclusive use easement over the approximately .56 acre area, which includes the Millrace. SUGGESTED MOTION Move to authorize the City Manager to consummate the exchange of the City-owned .29 acre tax lot for the proposed easement over approximately .56 acre of the Tedron Properties parcel and the additional $143,300 cash payment from Tedron Properties. ATTACHMENTS A. Aerial map illustrating the area of the proposed exchange parcels B. Typical cross section of the Millrace area FOR MORE INFORMATION Staff Contact: Russ Royer Telephone: 682-5264 Staff E-Mail: russ.c.royer@ci.eugene.or.us L:\CMO\2006 Council Agendas\M061023\S0610233.doc