february 28, 2015 - item #55 - regular board...

Los Angeles CountyMetropolitan Transportation Authority

Metro

One Gateway PlazaLos Angeles, CA 9ooi2-2952

2i3.gz2.2000 Tmetro.net

REGULAR BOARD MEETINGFEBRUARY 26, 2015

SUBJECT: REGIONAL CONNECTOR TRANSIT CORRIDOR PROJECT

ACTION: ADOPT RESOLUTION OF NECESSITY TO ACQUIRE A SUBSURFACEEASEMENT AND A GROUTING EASEMENT ON PROJECT PARCELSRC-449 AND RC-449-1

RECOMMENDATION

A. Hold a public hearing on the proposed Resolution of Necessity.

B. Adopt a Resolution of Necessity authorizing the commencement of an eminentdomain action to acquire a subsurface easement and a grouting easement inProject Parcels RC-449 and RC-449-1 (Assessor Parcel No. 5161-017-009);consisting of the real property (hereinafter the "Property").

BACKGROUND

Acquisition of the Property (Attachment "A") is required for the construction andoperation of the Regional Connector Transit Corridor ("Project"). A written offer waspresented to the Owners of Record ("Owners"), as required by California GovernmentCode Section 7267.2. The Owners have not accepted the offer made by the LosAngeles County Metropolitan Transportation Authority ("METRO") or presented acounter offer; and consequently a negotiated agreement has not been reached.Because the Property is necessary for construction of the Project, staff recommends theacquisition of the Property through eminent domain.

In accordance with the provisions of the California Eminent Domain law and Sections30503, 30600, 130051.13, 130220.5 and 132610 of the California Public Utilities Code(which authorize the public acquisition of private property by eminent domain), METROhas prepared and mailed notice of this hearing to the Owners informing them of theirright to appear at this hearing and be heard on the following issues: (1) whether thepublic interest and necessity require the Project; (2) whether the Project is planned orlocated in the manner that will be most compatible with the greatest good and the leastprivate injury; (3) whether the Property is necessary for the Project; and (4) whethereither the offer required by Section 7267.2 of the Government Code has been made tothe Owners, or the offer has not been made because the Owners cannot be locatedwith reasonable diligence.

Attached is evidence submitted by staff that supports adoption of the Resolution ofNecessity that has been approved by counsel, and which sets forth the required findingsfor acquiring the Property through the use of eminent domain (Attachment "B"). After all

of the testimony and other evidence has been received by METRO from all interestedparties, the METRO Board must make a determination as to whether to adopt theproposed Resolution of Necessity (Attachment "C") to acquire the Property by eminentdomain. In order to adopt the Resolution of Necessity, the METRO Board must, basedupon all the evidence before it, and by a vote of two-thirds of all the members of itsgoverning body, find and determine that the conditions stated above exist.

DETERMINATION OF SAFETY IMPACT

This Board action will not have an impact on METRO's safety standards.

FINANCIAL IMPACT

Funding for the acquisition of the Property is included in the approved Fiscal Year 2015project budget, under Measure R funds (35%) project 860228 (Regional ConnectorTransit Corridor Project), in cost center number 8510, and account number 53013(Acquisition of Land).

NEXT STEPS

If this action is approved by the Board, METRO's condemnation counsel will beinstructed to take all steps necessary to commence legal proceedings in a court ofcompetent jurisdiction to acquire the Property by eminent domain. Counsel will also bedirected to seek and obtain an Order of Prejudgment Possession in accordance with theprovisions of the eminent domain law.

ATTACHMENTS

A. Site PlanB. Staff ReportC. Resolution of Necessity

Prepared by: Velma C. Marshall, Deputy Executive Officer —Real Estate(213) 922-2415

Dave Means, Executive Officer — Countywide Planning andDevelopment(213) 922-2225

Calvin E. Hollis, Managing Executive Officer — Countywide Planningand Development(213) 922-7319

Regional Connector Transit Corridor Project Page 2

Martfi~Wefborrie,"FAI.Chief Planning Officer

i

Arthur T. LeahyChief Executive Officer


ATTACHMENT A

Owners: Birnbaum 321, LLC, Catherine Diane, The Stavrum Family Trust, DonaldMahaffey, Elaine Allison, Edward &Dena Bless, Hull's Hope LLC, EMatli, LLC, LarryParker, MBJJ Investments LLC, Moylan Family Trust LLC, Peter Wernecke &Renee

DeForest, Read C 321, LLC- Kathleen Koski Read, Vijay K. Pavuluri & PadmajaAkkineni, and Neoteric Alpha, LLC

321 East 2nd Street, Los Angeles, CA

AP N : 5161-017-009

RC-449: Subsurface Easement

RC-449-1: Grouting Easement


ATTACHMENT B

STAFF REPORT REGARDING THE NECESSITY FOR THE ACQUISITION OFPROJECT PARCEL NOS. RC~49 AND RC-449-1 (THE "PROPERTY") FOR THE

REGIONAL CONNECTOR TRi4NSIT CORI~ID012 PROJECT

BACKGROUND

The Property is required for the construction and operation of the Regional ConnectorTransit Corridor ("Project"). The address, owners of record ("Owners") as indicated bya title report prepared by Chicago Title Company, physical description, and nature ofthe property interests sought to be acquired for the Project are summarized as follows:

AssessorParcelNumber

ParcelAddress

PropertyOwners

Purpose. ofAcquisition

PropertyInterests)Sought

METROProjectParcel #s

5161- 321 East Birnbaum 321, LLC, Construction Subsurface RC-449017-009 2nd Catherine Diane -The and easement and

Street, Stavrum Family Trust, Operation of and 449-1Los Donald Mahaffey, Elaine the tunnel groutingAngeles, Allison, Edward &Dena easementCA Bless, Hull's Hope LLC,

EMatli, LLC, Larry Parker,MBJJ Investments LLC,Moylan Family Trust LLC,Peter Wernecke &ReneeDeForest, Read C 321,LLC- Kathleen KoskiRead, Vijay K. Pavuluri &Padmaja Akkineni, andNeoteric Alpha, LLC

A written offer for the property interests comprising Project Parcels RC-449 and 449-1was mailed to the Owners by letter dated November 5, 2014. Staff has engaged innegotiations with the Owner's representative. However, only five (5) of the fourteen (14)Owners have responded to the offer. To date, this offer has not been accepted by allthe Owners, consequently, a negotiated agreement has not been reached.

A. The public interest and necessity require the Project.

The public interest and necessity require the Project for the following specific reasons:

1. The existing population and employment density in the Regional Connector TransitCorridor ("Corridor") is higher than the surrounding County demographics, and ishighly transit dependent. The Corridor population density is approximately two-and-a-half times higher than Los Angeles County as a whole. The Corridor has a very


high concentration of low-income, minority, transit-dependent residents. More than39 percent of all Corridor households are below the poverty threshold, 83 percent ofCorridor residents are considered minorities, and 60 percent of all households in theCorridor do not have access to an automobile. The Project will provide significantimprovements in transportation and attendant access to economic and employmentopportunities for low-income, elderly, transit-dependent persons living in theCorridor area.

2. The Project will connect the Metro Gold, Blue, Red, Purple and Expo Lines throughdowntown Los Angeles, enabling passengers to travel the region's largestemployment center on Metro's light rail transit (LRT) system without the need totransfer. By providing continuous through service between these lines, the Project willimprove access to both local and regional destinations and while greatly improvingthe connectivity of the transportation network for the region.

3. The Project will offer an alternative transportation option to congested roadways andprovide significant environmental benefits, economic development, and employmentopportunities throughout the Corridor and Los Angeles County as a whole.

4. The Project will enable Los Angeles County rail to operate more efficiently and attracthigher ridership, thereby reducing congestion, improving air quality and lessening theregional carbon footprint. By linking several LRT systems through Downtown LosAngeles, the Project will significantly increase regional mobility.

It is recommended that based on the above evidence, the Board find and determine thatthe public interest and necessity require the Project.

B. The Project is planned or located in the manner that will be mostcompatible with the greatest public good and least private iniurv.

On September 3, 2010, a Draft Environmental Impact Statement/ Draft EnvironmentalImpact Report (DEIS/DEIR) was circulated and reviewed by interested and concernedparties, including private citizens, community groups, the business community, electedofficials and public agencies. Public hearings were held to solicit citizen and agencycomments. Various alternatives were presented in the DEIR/DEIS: (1) No Build, (2)Transportation Systems Management (TSM), and (3) build alternatives utilizing Light RailTransit (LRT) technology -Fully Underground, Underground Emphasis, and At-GradeEmphasis.

On October 28, 2010 the Board adopted the Fully Underground LRT Alternative as theLocally Preferred Alternative (LPA), after review and consideration of the commentsreceived from circulation of the 2010 DEIS/DEIR. The Board certified the FinalEnvironmental Impact Statement/ Final Environmental Impact Report (FEIS/FEIR) on April26, 2012. A Record of Decision was received from the Federal Transit Administration onJune 29, 2012.

The Project is a Fully Underground LRT dual-track alignment, which will extend from theMetro Gold Line Little Tokyo/Arts District Station to the 7th Street/Metro Center Station in


downtown Los Angeles, allowing passengers to transfer between the Gold Line to theBlue, Expo, Red, and Purple Lines, bypassing Union Station. The 1.9-mile alignment willserve Little Tokyo, the Arts District, Civic Center, the Historic Core, Broadway, Grand Ave,Bunker Hill, Flower St., and the Financial District, and will benefit the City of Los Angelesand portions of unincorporated Los Angeles County. The Project includes three stations:

• 1st Street/Central Avenue• 2nd Street/Broadway• 2nd Place/Hope Street

The Corridor has some of the highest population and employment density in the SouthernCalifornia region, as well as the highest proportion of transit ridership. No significantexpansion of existing freeway and street networks is planned to accommodate thisdensity and future expected growth. During various community meetings, the residents ofthe Corridor area expressed their need for improved transit service because many aretransit-dependent and need better access to the region's educational, employment, andcultural opportunities. The Locally Preferred Alternative (LPA) addresses those needs andmoves more people in a way that is energy efficient and with the least environmentalimpact.

The Project will cause private injury, including the displacement or relocation of certainowners and users of private property. However, no other alternative locations for theProject provide greater public good with less private injury. Therefore, the Project isplanned or located in the manner that will be most compatible with the greatest publicgood and the least private injury.

Due to its bulk, the FEIS/FEIR is not physically included in the Board's agenda packet forthis public hearing. However, the FEIS/FEIR documents should be considered inconnection with this matter. It is recommended that, based upon the foregoing, the Boardfind and determine that the Project is planned or located in the manner that will be mostcompatible with the greatest public good and the least private injury.

C. The Pronerty is necessary for the Project

The Property consists of a subsurface easement and a grouting easement. Thesubsurface easement (RC-449) is required for the tunnel alignment as described in theLegal Description attached hereto as Exhibit "A-1"and as depicted on the Plat Mapattached hereto as Exhibit "B-1 ". The grouting easement (RC-449-1) is required for theinstallation of permanent grout underground between building foundations and the topof the tunnel excavations to reduce ground movements that may be caused by thetunneling (as described in the Legal Description attached hereto as Exhibit "A-2" and asdepicted on the Plat Map attached hereto as Exhibit "B-2"). The Property is needed forthe construction and operation the tunnel alignment which connects the 7th Street/MetroCenter Red/Purple Line Station and the Little Tokyo Gold Line Station Site. TheProperty requirements are based on the approved FEIS/FEIR for the Project.

Staff recommends that the Board find that the acquisition of the Property is necessaryfor the Project.


D. Offers were made in compliance with Government Code Section 7267.2.

California Code of Civil Procedure Section 1245.230 requires that a Resolution ofNecessity contain a declaration that the governing body has found and determined thateither the offer required by Section 7267.2 of the California Government Code has beenmade to the Owners, or the offer has not been made because the Owners cannot belocated with reasonable diligence.

California Government Code Section 7267.2 requires that an offer be made to theOwners and in an amount which the agency believes to be just compensation. Theamount must not be less than the agency's approved appraisal of the fair marketvalue of the Property. In addition, the agency is required to provide the Owners with awritten statement of, and summary of the basis for, the amount it established as justcompensation.

Staff has taken the following actions as required by California law for the acquisition ofthe Property:

1. Obtained appraisals to determine the fair market value of the Property, whichincluded consideration of any immovable fixtures and equipment;

2. Reviewed and approved the appraisals, and established the amount it believes tobe just compensation;

3. Determined the Owners of the Property by examining the county assessor's recordand the title report;

4. Made written offers to the Owners for the full amount of just compensation -whichwas not less than the approved appraised value; and

5. Provided the Owners with a written statement of, and summary of the basis for, theamount established as just compensation with respect to the foregoing offers.

It is recommended that based on the above Evidence, the Board find and determinethat the offer required by Section 7267.2 of the California Government Code has beenmade to the Owners.

CONCLUSION

Staff recommends that the Board approve the Resolution of Necessity.

ATTACHMENTS

1 - Exhibit "A-1"Legal Description (RC-449)2 - Exhibit "B-1" Plat Map (RC-449)3 - Exhibit "A-2" Legal Description (RC-449-1)4 - Exhibit "B-2" Plat Map (RC-449-1)


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ATTACHMENT C

RESOLUTION OF THELOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY

DECLARING CERTAIN REAL PROPERTY INTERESTS NECESSARY FOR PUBLICPURPOSES AND AUTFIORIZING THE ACQUISITION THEREOF(REGIONAL CONNECTOR TRANSIT CORRIDOR PROJECT

PARCEL NOS. RC-449 AND 449-1)

THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATIONAUTHORITY HEREBY FINDS, DETERMINES, AND RESOLVES AS FOLLOWS:

Section 1.

THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATIONAUTHORITY ("METRO") is a public entity organized and existing pursuant to Chapter 2 ofDivision 12 of the California Public Utilities Code (commencing with Section 130050).

Section 2.

The property interests described hereinafter are to be taken for public use, namely,for public transportation purposes and all uses necessary, incidental or convenient thereto,and for all public purposes pursuant to the authority conferred upon the Board to acquireproperty by eminent domain by California Public Utilities Code Sections 30000-33027,inclusive, and particularly Section 30503 and 30600, Sections 130000-132650, inclusive,and particularly Sections 130051.13 and 130220.5, Code of Civil Procedure Sections1230.010-1273.050, inclusive, and particularly Sections 1240.510 and 1240.610, andArticle I, Section 19 of the California Constitution.

Section 3.

The Property consists of a subsurface easement and a grouting easement. Thesubsurface easement (RC-449) is required for the tunnel alignment and contains a total of51 square feet (as described in the Legal Description attached hereto as "Exhibit A-1"andas depicted on the Plat Map attached hereto as "Exhibit B-1 "). The grouting easement(RC-449-1) is required for the installation of permanent grout underground betweenbuilding foundations and the top of the tunnel excavations to reduce ground movementsthat may be caused by the tunneling (as described in the Legal Description attachedhereto as "Exhibit A-2" and as depicted on the Plat Map attached hereto as "Exhibit B-2"),all of which are incorporated herein by this reference.

Section 4.

(a.) The acquisition of the above-described Properly is necessary for thedevelopment, construction, operation, and maintenance of the Regional Connector TransitCorridor Project ("Project");


(b.) The environmental impacts of the Project were evaluated in the FinalEnvironmental Impact Statement/Final Environmental Impact Report (FEIS/FEIR) for thisProject which was certified by the Board on April 26, 2012. The Board found that inaccordance with the California Environmental Quality Act Guidelines, Section 15162, nosubsequent or supplemental Environmental Impact Report is required for the Project; and

(c.) The Board has reviewed and considered the FEIS/FEIR, before and as partof the process of determining whether to acquire the above-referenced Properly.

Section 5.

The Board hereby declares that it has found and determined each of the following:

(a.) The public interest and necessity require the proposed Project;

(b.) The proposed Project is planned or located in the manner that will be mostcompatible with the greatest public good and the least private injury;

(c.) The Property sought to be acquired, which has been described herein, isnecessary for the proposed Project; and

(d.) The offer required by Section 7267.2 of the Government Code has beenmade to the Owners.

Section 6.

Pursuant to Sections 1240.510 and 1240.610 of the California Code of CivilProcedure, to the event that the Property is already devoted to a public use, the use towhich the Property is to be put is a more necessary public use than the use to which theProperty is already devoted, or, in the alternative, is a compatible public use which will notunreasonably interfere with or impair the continuance of the public use to which theProperty is already devoted.

Section 7.

That notice of intention to adopt this resolution was given by first class mail to eachperson whose Property is to be acquired by eminent domain in accordance with Section1245.235 of the California Code of Civil Procedure and a hearing was conducted by theBoard on the matters contained herein.

Section 8.

Legal Counsel is hereby authorized and directed to take all steps necessary tocommence legal proceedings, in a court of competent jurisdiction, to acquire the Propertydescribed above by eminent domain. Counsel is also authorized and directed to seek andobtain an Order for Prejudgment Possession of said Properly in accordance with theprovisions of the eminent domain law and is directed that the total sum of probable justcompensation be deposited with the State Treasurer or the Clerk of the Superior Court.


Counsel may enter into stipulated Orders for Prejudgment Possession and/or Possessionand Use Agreements, where such ,agreements constitute the functional equivalent of anOrder for Prejudgment Possession. Counsel is further authorized to correct any errors orto make or agree to any non-material changes to the legal description of the real propertythat are deemed necessary for the conduct of the condemnation action or otherproceedings or transactions required to acquire the Property.

Counsel is further authorized to compromise and settle such eminent domainproceedings, if such settlement can be reached, and in that event, to take all necessaryaction to complete the acquisition, including stipulations as to judgment and othermatters, and causing all payments to be made. Counsel is further authorized toassociate with, at its election, a private law firm for the preparation and prosecution ofsaid proceedings.

I, MICHELLE JACKSON, Secretary of the Los Angeles County MetropolitanTransportation Authority, do hereby certify that the foregoing Resolution was duly andregularly adopted by a vote of two-thirds of all the members of the Board of theMetropolitan Transportation Authority at a meeting held on the 26th day of February,2015.

Date:

MICHELLE JACKSONMETRO Secretary

ATTACHMENTS

1 - Exhibit "A-1" Legal Description (RC-449)2 - Exhibit "B-1" Plat Map (RC-449)3 - Exhibit "A-2" Legal Description (RC-449-1)4 - Exhibit "B-2" Plat Map (RC-449-1)


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february 28, 2015 - item #55 - regular board...

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