Metropolitan Transportation Authority One Gateway Plaza 213.g Tel Los Angeles, CA rnetro.net

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1 0 Metro Metropolitan Transportation Authority One Gateway Plaza 213.g Tel Los Angeles, CA rnetro.net REGULAR BOARD MEETING February 24,201 1 SUBJECT: ACTION: PUBLIC HEARING RE: RESOLUTION OF NECESSITY FOR THE ACQUISITION OF ASSESSOR'S PARCEL NO FOR THE MID-CITY EXPOSITION LIGHT RAIL TRANSIT PROJECT AND IMPROVEMENTS AT FARMDALE AVENUE AND EXPOSITION BOULEVARD ADOPT RESOLUTION OF NECESSITY A. Hold a public hearing on the proposed resolution of necessity. B. Adopt the attached Resolution of Necessity authorizing the commencement of an eminent domain action to acquire Assessor's Parcel No Acquisition of a fee-simple interest in Assessor's Parcel No ("Property") is required for the for the Mid-City Exposition Light Rail Transit Project and for construction and operation of improvements at Farmdale Avenue and Exposition Boulevard ("Project"). A written offer has been presented to the owner of record, as required by California Government Code Section To date, the property owner has rejected the amount offered as just compensation and the parties' have been unable to reach a negotiated agreement despite efforts to reach a settlement. Because of the imminent need to proceed with construction activities on the Property, staff recommends the acquisition of the Property through eminent domain. In accordance with the provisions of the California Eminent Domain law and Sections 30503, and of the California Public Utilities Code (which authorize the MTA to acquire property by eminent domain), the MTA has prepared and mailed a notice of this hearing to the property owners of record and the City Clerk of the City of Los Angeles, informing them of their right to appear at this hearing and be heard on the following issues: (1) whether the public interest and necessity require the proposed Project; (2) whether the proposed Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; (3) Whether the Property is necessary for the proposed Project; and (4) whether either the offer required by Section of the Government Code has been made to the owner or

2 owners of record, or the offer has not been made because the owner cannot be located with reasonable diligence. After all of the testimony and other evidence has been received by the MTA from all interested parties, the MTA must make a determination as to whether to adopt the proposed resolution of necessity to acquire the Property by eminent domain. In order to adopt the resolution, the MTA must, based upon all the evidence before it, and by a vote of two-thirds of all the members of its governing body, find and determine that the conditions stated above exist. Attached is evidence (Attachment 1) submitted by staff that supports adoption of the Resolution of Necessity (Attachment 2) that have been approved by counsel, and which sets forth the required findings. FINANCIAL IMPACT Funding for the acquisition of the Property is included in the approved FYI 1 Project Budget in Cost center 6510, Project , Task No , and line item Cost to MTA and the Exposition Light Rail Authority include labor and legal costs required to litigate the eminent domain case. ALTERNATIVE CONSIDERED The Property is required for the construction and operation of the Project. The Board has the option to withhold adoption of the Resolution of Necessity. This would result in an additional delay in obtaining possession of the required Property, and thereby cause delays and increased costs to the Project, including possible significant costs due to delays in construction. ATTACHMENTS: Attachment 1 - Staff Report Attachment 2 - Resolution of Necessity Prepared by: Velma C. Marshall Deputy Executive Officer - Real Estate I I ARTHUR T. LEAHY Chief Executive Officer Expo Inn Condemnation 2

3 Attachment I STAFF REPORT REGARDING THE NECESSITY FOR THE ACQUISITION OF PROPERTY REQUIRED FOR THE MID-CITY EXPOSITION LIGHT RAIL TRANSIT PROJECT AND FOR IMPROVEMENTS AT FARMDALE AVENUE AND EXPOSITION BOULEVARD ("PROJECT"). BACKGROUND The Property is required for the construction and operation of the ("Project1'). The address, record owner (as indicated by title report prepared by Orange Coast Title Company), physical description, and nature of the property interest sought to be acquired (based upon the Final Environmental Impact Report and Study for the Project) are as follows: Parcel Num ber(s) Parcel Address 4523 Exposition Boulevard Los Angeles, CA Owner Mr. Amrat V. Patel & Ms. Ramila A. Patel, Trustees of the Patel Family Trust Dated February 26, 2003, Purpose of Acquisition Farmdale Station Parking and facilities Property Interest(s) Sought Fee Simple & Improvements Pertaining to Realty A written offer was made to the Property owner on September 23,2010, and a revised offer was sent to the owner via and regular mail on December 13,201 0 (as requested by the owner) for the acquisition of the required Property. Staff has engaged in extensive and detailed negotiations with the property owner and its representatives since approximately October However, the offer has not been accepted, and a mutually agreeable settlement has not been reached. A. The public interest and necessitv require the Proiect. The public interest and necessity require the Project for the following reasons: 1. The Project will provide significant improvements in transportation and attendant access to economic (employment) opportunities for low-income, elderly, transitdependent persons living in the Los Angeles-Mid-CityWestside area. There are approximately 103,000 people and 77,000 employed persons within one half-mile of the Expo Inn Condemnation 3

4 Project Corridor, and those numbers are expected to increase by 35.8% and 3.7%, respectively, by the year Within one half-mile of the Project Corridor, approximately 30% of the households are below poverty level and 29% of the households are without private transportation. 2. Implementation of the Project will result in a reduction of vehicle miles per day and reduction of auto air pollutants. 3. The Project will relieve congestion on the already over capacity Santa Monica Freeway and surrounding major thoroughfares. In addition, it will reduce the parking demands in the Mid-CityNVestside area by providing an alternative means of transportation, competitive in rush-hour travel times with the automobile. 4. The Project will be a major link in the existing countywide rail transit system, and will thereby provide alternative means of transportation during fuel crises and increased future traffic congestion. 5. The Project will meet the need for improved transit service of the significant transitdependent population within the Project area. 6. The Project will support continued growth in the Business Services Sector, which is primarily fueled by growth in the entertainment and media related businesses concentrated near the western portion of the Project area. It is expected that this growth will total over three billion dollars. 7. It is estimated that the Project will result in an average daily ridership of 43,600 persons by the year The construction and operation of the Farmdale Station will ensure pedestrian safety at the intersection of Farmdale Avenue and Exposition Boulevard. It is recommended that based on the above evidence, the MTA find and determine that the public interest and necessity require the Project. B. The Proiect is planned or located in the manner that will be most compatible with the greatest public good and least private injury. In April 2001, a Draft Environmental lmpact Report and Environmental lmpact Study was circulated and reviewed by interested and concerned parties, including private citizens, community groups, the business community, elected officials and public agencies. Public hearings were held to solicit citizen and agency comments. Three alternatives were presented in the 2001 draft environmental report/study. In June 2001, the MTA Board selected the Locally Preferred Alternative ("LPN) after review and consideration of the comments received from circulation of the draft environmental report/study. In August 2005, a Final Environmental lmpact Report and Environmental lmpact Statement were circulated to present the LPA for the Project. In October 2005, the Final Environmental Expo Inn Condemnation 4

5 lmpact Report and Environmental lmpact Statement ("FEIRIEIS) were prepared containing comments of and responses to the interested and concerned parties. In December 2005, the MTA Board certified the Final Environmental Report and Environmental lmpact Statement for the Project. The FEISIEIR was used as California Environmental Quality Act (CEQA) documentation by the California Public Utilities Commission ("CPUC") in its December 2007 decision approving all but two of the at-grade crossings (at Farmdale Avenue and at Harvard Boulevard) for the Light Rail Project. Los Angeles Unified School District (LAUSD) and local residents voiced concern regarding the proximity of the at-grade crossing to Dorsey High School. The CPUC denied the Expo Authority's application for an at-grade crossing at Farmdale Avenue (at Dorsey High School). Subsequent to the CPUC decision, the Expo Authority filed an amended application with the CPUC, suggesting several possible options for the crossing at Farmdale Avenue, including a pedestrian over crossing, stopand-proceed requirements for all trains, construction of an LRT station at the intersection of Farmdale Avenue and Exposition Boulevard, and an interim stop-and-proceed requirement with later construction of an LRT station. LAUSD, Metro and the Authority entered into a settlement agreement to construct the LRT station at Farmdale and the CPUC approved this settlement agreement in July, The alternative selected includes the construction of a passenger station at the intersection of Farmdale Avenue and Exposition Boulevard. Farmdale Avenue would remain open to crossing vehicular and pedestrian traffic at Exposition Boulevard, with crossing gates and signals installed, similar to what was included for the at-grade crossing at Farmdale Avenue as part of the original Exposition Light Rail Transit Project. Property would be required from Dorsey High School for construction of the eastbound platform on the south side of the Exposition right of way and the pedestrian plaza for the at-grade crossing at the northeast corner of the Dorsey High School campus. The eastbound platform would be partially within an existing staff vehicle parking area on LAUSD property at Dorsey and would require the relocation or reconfiguration of approximately 32 existing parking spaces, with a net loss of approximately 19 spaces. The subject property located on the northeast corner of the intersection of Exposition Boulevard and Farmdale Avenue would be acquired, and all structures would be demolished including a residency motel located at 4523 West Exposition Boulevard. To compensate for the loss of parking spaces within the existing Dorsey High School staff parking lot for the construction of the eastbound Exposition LRT station platform, a new 26-space parking lot will be constructed on this acquired property. A Notice of Availability (NOA) and the Supplemental Environmental Assessment (EA) for the project was prepared and mailed directly to agencies and individuals. The draft EA was available for public review for a period of 30 days from May 17, 2010 to June 15, The Final EA for the Farmdale Improvements was prepared in cooperation with the Federal Transit Administration ("FTA"). On November 16, 2010, FTA found, on the basis of the analysis, reviews, and mitigation measures described in the EA, that there are no significant impacts associated with the construction and operation of the improvements at Expo Inn Condemnation 5

6 Farmdale Avenue and Exposition Boulevard for the Exposition LRT. MTA and the Expo Authority incorporated mitigation measures into the Project to reduce or eliminate potentially adverse environmental impacts on historic resources, air quality and Section 4(f) resources. There are no significant impacts related to aesthetic and visual resources, hazardous materials, noise and vibration, public services and utilities, or transportation and circulation. As a responsible agency, the CPUC took the lead in the preparation and consideration of the CEQA documents for the Farmdale Avenue Crossing which consisted of an Addendum to the FEISIEIR. The CPUC reviewed studies submitted by the Expo Authority that thoroughly discussed and assessed the environmental impacts of the proposed project, the addition of a station to the previously proposed and reviewed Farmdale at-grade crossing. The overall conclusion of the detailed technical documents submitted by the Expo Authority is that no new or more severe cumulatively considerable adverse effects or significant impacts would occur as a result of modifying the Expo LRT project with an LRT passenger station at Farmdale Avenue. CPUC supported the conclusion that a subsequent EIR is not required by CEQA regulations and that the Addendum meets the requirements of CEQA guidelines. The CPUC certified the Addendum to the FEISIEIR on April 27,2010. The LPA is a Light Rail Transit ("LRT") dual-track alignment, running approximately 9 miles from 7th StreeVMetro Center in Downtown Los Angeles to VenicelRobertson Station in Culver City. The LPA shares the eastern terminal station and the existing track alignment with Metro Blue Line for about 2.3 miles from 7th StreeVMetro Center to Washington Boulevard. For the remaining 7.7 miles, the LPA will operate in a newly constructed alignment which runs southwesterly until Exposition Boulevard where it turns eastward until its terminus at the intersection of Venice arid Robertson Boulevards. The proposed twelve stations of the LPA are as follows: 7th Street/ Metro CenterlJulian Dixon (existing) Pico (existing) 23' Street JeffersonIUSC ExpositionIUSC Vermont Western Crenshaw Farmdale La Brea La Cienega Culver City The Westside of Los Angeles has some of the highest population and employment density in the Southern California region, as well as the highest proportion of transit ridership. The Los Angeles Westside has a current population of 1.5 million people, and is expected to grow by 300,000 over the next 20 years. The number of jobs is expected Expo Inn Condemnation 6

7 to increase by over 200,000. No significant expansion of existing freeway and street networks is planned to accommodate this growth. During various community meetings, the residents of the Westside area expressed their need for improved transit service because many are transit-dependent and need better access to the region's educational, employment, and cultural opportunities. The LPA addresses those needs and moves more people in a way that is energy efficient and with the least environmental impact. The Project will cause private injury, including the displacement or relocation of certain owners and users of private property. However, no other alternative locations for the Project provide greater public good with less private injury. Therefore, the Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury. Due to its bulk, the Final Environmental lmpact Report and Environmental lmpact Statement, the Final Environmental Assessment report and the Addendum to the Final Environmental lmpact StatementIFinal Environmental lmpact Report are not physically included in the MTA's agenda packet for this public hearing. However, these documents should be considered in connection with this matter. It is recommended that, based upon the foregoing, the MTA find and determine that the Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury. C. The Propertv is necessaw for the proposed Proiect. The acquisition of the Property is required for the construction and operation of a new 26 space paved parking lot to replace the loss of parking spaces within the existing Dorsey High School staff parking lot. The Property was chosen based upon the Final Environmental Assessment and Section 4(f) Evaluation for the Improvements at Farmdale and Exposition Boulevard. The subject property is legally described more specifically in the attached Exhibit "A", generally depicted in the map attached hereto as Exhibit "B" and identified on the schedule attached hereto as Exhibit "C". D. Offers were made in compliance with Government Code Section California Code of Civil Procedures Section requires that a Resolution of Necessity contain a declaration that the governing body has found and determined that either the offer required by Section of the California Government Code has been made to the owner(s) of record, or the offer has not been made because the owner(s) cannot be located with reasonable diligence. California Government Code Section requires that an offer be made to the owner or to the owners of record and in an amount which the agency believes to be just compensation. The amount must not be less than the agency's approved appraisal of the fair market value of the property. In addition, the agency is required to provide the owner(s) with a written statement of, and summary of the basis for, the amount it established as just compensation. Expo Inn Condemnation 7

8 The MTA staff has taken the following actions as required by California law for the acquisition of the subject property interests: 1. Obtained appraisals to determine the fair market value of the Property interests; 2. Reviewed and approved the appraisals, and established just compensation; 3. Determined the owner of the Property interests by examining the county assessor's records and title reports; and 4. Made written offers to the Property owner for the full amount of just compensation, which were not less than the approved appraised amounts. Staff recommends that the MTA Board find that the acquisition of the Property is necessary. ATTACHMENTS I - Legal Description (Exhibit "A") 2 - Plat Map (Exhibit "B") 3. - Improvements Pertaining to Realty (Exhibit "C") Expo Inn Condemnation 8

9 EXHIBIT "A" LEGAL DESCRIPTION Lots 239 and 240 of tract 7823, in the City of Los Angeles, as per map recorded in book 84 page(s) 79 through 81 inclusive of maps, in the office of the County Recorder of said County. Assessor's Parcel Number:

10 Exhibit "6"

11 Exhibit C 4523 Exposition Boulevard, Los Angeles Improvements Pertaining to the Realty (Non-Movable) Description 4 Surveillance cameras; 3-exterior (mfg. and model nos. not known), all-weather housings, EMI; 1- interior camera, color digital CCD camera, including wall bracket, video cabling to ofice, and electrical

12 Attachment 2 RESOLUTION OF THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY DECLARING CERTAIN REAL PROPERTY INTEREST NECESSARY FOR PUBLIC PURPOSES AND AUTHORIZING THE ACQUISITION THEREOF (ASSESSOR'S PARCEL NO ) THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY HEREBY FINDS, DETERMINES, AND RESOLVES AS FOLLOWS: Section 1. The Los Angeles County Metropolitan Transportation Authority ("MTA") is a public entity organized and existing pursuant to Chapter 2 of Division 12 of the California Public Utilities Code (commencing with Section ). Section 2. The real property interest ("Property") described hereinafter is 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 MTA to acquire property by eminent domain by California Public Utilities Code Sections , inclusive, and particularly Section 30503, Sections , inclusive, and particularly Section , Code of Civil Procedure Sections , inclusive, and particularly Sections and , and Article I, Section 19 of the California Constitution. Section 3. The property interest consists of the acquisition of a fee interest as described more specifically in Exhibit "A attached hereto, depicted on the Plat Map in Exhibit "6" attached hereto, and the acquisition of improvements pertaining to realty identified on the schedules attached hereto as Exhibit "C", all of which are incorporated herein by this reference. Section 4 (a) The acquisition of the above-described Property is necessary for the development, construction, operation, and maintenance of the Mid-City Exposition Light Rail Transit Project and Improvements at Farrndale Avenue and Exposition Boulevard ("Project"); (b) The environmental impacts of the Project were adequately evaluated in the Final Environmental lmpact Report ("FEIR) for this Project; which was certified by the MTA Board on December 15, Further, Federal Transportation Authority ("FTA) review of the Final Supplemental Environmental Assessment ("EA") resulted in a Finding of No Significant lmpact on November 16, 2010, eliminating the need for a Supplemental Environmental lmpact Report for the Project. Further, the California Public Utilities Commission of the State of California issued an Interim Decision Certifying the

13 Addendum ("Addendum") to the Final Environmental Impact StatementIFinal Environmental Impact Report on April 27,201 0; and (c) The MTA has reviewed and considered the FEIRIFEIS the EA, and the Addendum before and as part of the process of determining whether to acquire the above-referenced Property. Section 5. The MTA 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 which will be most compatible with the greatest public good and the least private injury; (c) The Property sought to be acquired, which has been described herein, is necessary for the proposed Project; and (d) The offer required by Section of the Government Code has been made to the owner of record. Section 6. That notice of intention to adopt this resolution was given to each person whose Property is to be acquired by eminent domain in accordance with Section of the Code of Civil Procedure and a hearing was conducted by the MTA Board on the matters contained herein. Section 7. Legal counsel is hereby authorized and directed to take all steps necessary to commence legal proceedings, in a court of competent jurisdiction, to acquire the Property described above by eminent domain. Counsel is also authorized and directed to seek and obtain an Order for Prejudgment Possession of said Property in accordance with the provisions of the eminent domain law and is directed that the total sum of probable just compensation be deposited with the Clerk of said Superior Court. Counsel is further authorized to compromise and settle such eminent domain proceedings, if such settlement can be reached, and in that event, to take all necessary action to complete the acquisition, including stipulations as to judgment and other matters, and causing all payments to be made. Counsel is further authorized, pursuant to Section of the Public Utilities Code, to associate with, at its election, a private law firm for the preparation and prosecution of said proceedings.

14 I, MICHELLE JACKSON, Secretary of the Metropolitan Transportation Authority, do hereby certify that the foregoing Resolution was duly and regularly adopted by a vote of two-thirds of all the members of the Board of the Metropolitan Transportation Authority at a meeting held on the 24th day of February, MICHELLE JACKSON MTA Secretary Date:

15 EXHIBIT "A" LEGAL DESCRIPTION Lots 239 and 240 of tract 7823, in the City of Los Angeles, as per map recorded in book through 81 inclusive of maps, in the office of the County Recorder of said County. Assessor's Parcel Number:

16 Exhibit "B"

17 Exhibit C 4523 Exposition Boulevard, Los Angeles Improvements Pertaining to the Realty (Non-Movable) Qty Description 4 Surveillance cameras; 3-exterior (mfg. and model nos. not known), all-weather housings, EMI; 1- interior camera, color digital CCD camera, including wall bracket, video cabling to office, and electrical