BOARD 9F AIRPORT COMMISSIONERS

Transcription

1 RW AE BY Imet;oll Po. Los Angeles World Airports REPORT TO THE BOARD 9F AIRPORT COMMISSIONERS Meeting Date: Approved Marisa Kat ch, Direct nagem gic Commercial 7/13/2017 Completed Reviewed by: 1-)e Debbie Bowers, C 'ef Commercial Officer Ai City Attorney CAO Review: Pending N/A Reviewed for Date Approval Status Finance 6/22/20171 DY N NA 1 ots Deborah Flint - Ch ef xecuti e Officer CEQA :6/26/20171 MY N 1 Procurement 16/21/2017I ITIY ON Ccind MT Guest Experience 6/29/20171 DY ON 1 SUBJECT: Approval of Acquisition of Five Residential Properties Approve for the acquisition of two single family properties and three multi-family properties located in the Manchester Square area of the City of Los Angeles, for an amount not to exceed $26,278,000. RECOMMENDATIONS: Management RECOMMENDS that the Board of Airport Commissioners: 1. ADOPT the Staff Report. 2. DETERMINE that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Article II, Section 2.i of the Los Angeles City CEQA Guidelines. 3. APPROVE for the acquisition of two single family properties and three multi-family properties located in the Manchester Square area of the City of Los Angeles, for an amount not to exceed $26,278,000, consisting of a purchase price of $21,120,000 plus due diligence, closing costs, and estimated relocation/replacement housing and moving costs, subject to assumption of existing leases encumbering the properties. 4. Determine that the agreement is within the scope of the adopted Mitigated Negative Declaration No. AD entitled Manchester Square and Airport/Belford Area Voluntary Acquisition Project, dated June 2000, does not include changes to that program and as such, is not subject to further review under CEQA pursuant to the Public Resources Code Section and CEQA Guidelines Section Page 1

2 5. AUTHORIZE the Chief Executive Officer to execute the necessary documents and escrow instructions to acquire the properties listed in and wire transfer the necessary funds to the Los Angeles World Airports' approved escrow company. DISCUSSION: 1. Purpose Acquire five residential properties in Manchester Square. 2. Prior Related Actions August 17, Resolution No The Board of Airport Commissioners (Board) authorized the Chief Executive Officer to extend purchase offers to property owners of the Manchester Square and Airport/Belford areas who qualified for advanced acquisition based on hardship, in accordance with the applicable Federal and State laws as part of the noise mitigation Voluntary Residential Acquisition and Relocation Program. July 18, Resolution No The Board approved the Relocation Plan and Mitigated Negative Declaration for the Voluntary Residential Acquisition and Relocation Program. This action authorized the Chief Executive Officer to open the Program to all property owners in the Manchester Square and Airport/Belford Program areas. May 1, Resolution No The Board authorized the Chief Executive Officer to forward to the Los Angeles City Council (Council) a plan for approval to expedite the escrow process of the Voluntary Residential Acquisition and Relocation Program in adherence with California Public Utilities Code (CPUC) Section In compliance with CPUC Section , Council held a public hearing on May 22, 2001 for all properties identified for acquisition through the Voluntary Residential Acquisition and Relocation Program. This action eliminated the need for future public hearings and allowed the Board to approve all future property acquisition in the Voluntary Residential Acquisition and Relocation Program areas, through the close of escrow. Parcel numbers for the properties to be acquired are listed in the City of Los Angeles Planning Department reports dated October 16, 1998, City Plan Case Nos PWA and PWA. June 15, Resolution No The Board conducted a public hearing and adopted a Resolution of Necessity making all necessary findings and requesting the Los Angeles City Council to authorize commencement of eminent domain proceedings to acquire the 37 properties in Manchester Square in Los Angeles, California to complete land acquisition under the Airport Noise Mitigation Program in compliance with 14 CFR Part 150 and California Code of Regulations, Title 21, Section 5000 et. seq. 3. Current Action The Aircraft Noise Mitigation Program (ANMP), which arises from Federal and State regulations, enables two strategies to manage the impacts of aircraft noise, including (1) Page 2

3 sound insulation of structures and (2) property acquisition followed by the conversion of an incompatible land use to compatible land uses. The Voluntary Residential Acquisition and Relocation Program (Program), a subset of the ANMP, allows Los Angeles World Airports (LAWA) to acquire residential properties located in Manchester Square and Airport/Belford areas in-lieu of soundproofing, and provide relocation assistance to both owners and tenants. To date, LAWA has purchased 568 properties in the Program area, with 38 remaining. LA\A/A presented written offers to the owners of record of the remaining properties in the Program Area, in an effort to complete acquisitions to bring LAWA in compliance with Airport Noise Compatibility Planning Regulations (14 CFR Part 150) and the California Airport Noise Standards (California Code of Regulations, Title 21, Section 5000 et seq.) as set forth in the LAX Master Plan - Alternative D, and for all public purposes appurtenant thereto. On June 15, 2017, the Board approved the acquisition of 16 of the 38 properties, which are currently in escrow. includes two single family properties and three multi-family properties. See Attachment 1 and Attachment 2 for additional information. Following acquisition, LAWA will provide relocation benefits to the owners and tenants of the properties in accordance with applicable law. e.g. relocation advisory assistance, payment for reasonable moving expenses, and rental/down payment assistance. LAWA will comply with the requirements of the CPUC as applicable. At this time, LAWA is not requesting authorization to redevelop or reuse the property. Following relocation of tenants and owner-occupants, LAWA will demolish the structures and secure the properties. Action Requested Staff requests the Board approve the purchase of the five residential properties listed in Attachment 1, and authorize the Chief Executive Officer to execute the necessary documents and escrow instructions and to wire transfer the necessary funds to LAWA's approved escrow company. Fiscal Impact Acquisition of the properties will be funded using the LAX Airport Revenue Fund or the LAX Passenger Facility Charge Fund as appropriate. The acquisition amount is consistent with recent purchases, and the proposed transaction avoids litigation costs under eminent domain. 4. Alternatives Considered Defer purchase of This action is not recommended as LAWA is working to complete the acquisitions in the Program area to bring LAWA in compliance with applicable Federal and State laws. Page 3

4 APPROPRIATIONS: "Noise Mitigation - Residential Acquisition Program" is an approved on-going capital project. Therefore, staff requests funds in the amount not-to-exceed $26,278,000 be appropriated and allocated from the LAX Airport Revenue Fund or the Passenger Facility Charge Fund as appropriate to WBS Element BY-71R (Residential Acquisition Program - ) and a wire transfer of $26,278,000 to the approved Los Angeles World Airports' escrow company be authorized. STANDARD PROVISIONS: 1. The underlying project was previously evaluated for environmental significance by MND , adopted by Board of Airport Commissioners on July 18, 2000, and is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article II, Section 2.i of the Los Angeles City CEQA Guidelines. 2. The resulting property purchase contracts will be approved as to form by the City Attorney. 3. Actions taken on this item by the Board of Airport Commissioners will become final pursuant to the provisions of the Los Angeles City Charter Section This action is not subject to the provisions of the Service Contractor Worker Retention and Living Wage Ordinances. 5. This action is not subject to the Small Business Enterprise and Local Business Enterprise/Small Local Business Enterprise Programs. 6. This action is not subject to the provisions of the Affirmative Action Program. 7. This action does not require a Business Tax Registration Certificate number. 8. This action is not subject to the provisions of the Child Support Obligations Ordinance. 9. This action is not subject to the insurance requirements of the Los Angeles World Airports. 10. This action is not subject to the provisions of Charter Section 1022 (Use of Independent Contractor). 11. This action is not subject to the provisions of the Contractor Responsibility Program. 12. This action is not subject to the provisions of the Equal Benefits Ordinance. 13. This action is not subject to the provisions of the First Source Hiring Program. 14. This action is not subject to the provisions of Bidder Contributions CEC Form 55. Attachment1: List of Properties Attachment 2: Map - Page 4

5 Attachment 1 Est. Fees Est. Gross Escrow Relocation / Est. Living (0.5%) Replacement Moving No. of Area Land Purchase and Title Housing Costs Costs Owner of Record APN Address Units Sq. Ft. SF Price (0.5%) (20%) (2%) Total Markosian, Ethan L W 96th St. 1 1,375 5,724 $969,000 $9, ,800 $19,380 $1,191,870 Tarleton, James L. and Vicky L W 96th St 1 1,726 5,986 $1,180,000 $11, ,000 $23,600 $1,451,400 Paul Siong Kuong Ling and Edythe I-Tze Ling Isis Ave 24 28,210 16,205 $11,903,400 $119,034 2,380,680 $238,068 $14,641,182 Paul Siong Kuong Ling and Edythe I-Tze Ling W. 99th PI 8 9,640 7,020 $3,967,800 $39, ,560 $79,356 $4,880,394 Lu, Ming Nan and Shu Chen; Ling L. Hwang Glasgow Pl. 10 9,060 14,289 $3,100,000 $31, ,000 $62,000 $3,813,000 Total 44 $21,120,200 $211,202 $4,224,040 $422,404 $25,977,846 Contingency $300,000 Rounded Amount $26,278,000 Total No. Properties To Be Acquired Total No. of Units 5 44 Page 5

6 Attachment 2 Manchester Square Subject Properties (5) ARBOR VITAE ST. I 9329 Isis Ave W. 96th St W. 96th -J co z 0 ite 4 (I I 6TH ST 93RD ST. 94TH ST. 95 FMS 97TH ST 98TH ST RD ST TH ST. VAII P 95TH I PI 0 Z 0 iii la 95TH PL. PARDEE PAI.97TH PI ST. Ed ii ST Glasgow PI 5357 W. 99th Pl. CENTURY BLVD. Page 6