DATE: JANUARY 2011 ESTATE DIVISION

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1 DATE: JANUARY 2011 FROM: ESTATE DIVISION Executive Director's to the Board of Commissioners NOS. AND AND ORDINANCE - PROPOSED GRANT AND EASEMENT DEEDS BETWEEN THE CITY LOS ANG HARBOR DEPARTMENT AND THE CITY OF LONG H HARBOR DEPARTMENT LAHD NO rtment (Harbor Department) and of upon are be jointly owned and jurisdiction control of department's Board of Harbor Commissioners. further that objective, of property between Harbor Department and the for the of the a Corridor tracks parallel to Henry Ford ue between Pier A Way and the Cerritos Channel (Harbor Department Parcels) adjacent property the relocation of Henry ue (POLB Parcels) to construct the Corridor is proposed. The proposed Deed 50 percent of the p rights in Harbor Department Parcels totaling 185, uare feet ) to the ; provides POLB the ability purchase, in the future, subsurface rig necessary LB to access its adjacent properties; preserves all other underground rig the Harbor rtment The proposed provides rights to the Harbor for use of POLB rcels approximately 145,810 for construction and maintenance Ford Avenue. The regate and utility the rights is generally no consideration is to be in connection with the except subsurface rig POLB to access properties. It is recom that of 1. Find it is in the City of Los public for Harbor Department to p rights to rail and road rights-of-way with the POLB since the being exchanged is of value and utility, the rights by the Ha Department are essential the operation of that of Henry Avenue that accesses the Wilmington Marinas, and the exchange includes of of all incl in the 2. Find it is in the interest of City and public, as an component of the exchange referenced above, that the City agree to convey in

2 JANUARY 5, 2011 PAGE 2 6 SUBJECT: PROPOSED GRANT AND EASEMENT DEEDS LAHD NO for consideration subsurface easement rights located between Pier A Way nrn""",,, Channel, for POLB to access to the providing properties; 3. Approve proposed conveying 50 property rights in two Harbor Department parcels (Parcels H and HF ) the approve the p Deed conveying rights in parcels (Parcels HF , HF , HF-430, HF-428, and HF-426) to the Harbor 4. Request City Council to the of Harbor Commissioners to establish the market value for the based upon established in the rant Deed a all documents future private of rights to the POLB construction and operation of a tunnel under the Alameda Corridor and Henry Ford Avenue; 5. Direct the Board to transmit the and Ordinance to the City Council for approval in accordance with provisions of Section 385 the City Charter of the Los Angeles Administrative Code; 6 Authorize Executive Director to execute the Board Secretary to to the proposed City Council and conditioned on the POLB granting the 7. and the Board Secretary to attest to proposed granting of the proposed Easement Deed and conditioned on City Council approval of the proposed Grant 8. Adopt Order Nos. ==<..:...:::::..:::..:...:...::: - On, 1 Harbor and jointly purchased certain railroad properties as of Alameda Corridor construction project. All railroad properties purchased are held by rbor Department and PO as tenants in common, each holding an undivided 50 right to property. Further, on October 12, 1998, the Harbor Department and the POLB Corridor Transportation Authority (ACTA), a joint authority created by the Harbor Department and the POLB, to enter into various agreements with other public entities, including property right agreements, in order expedite the development of the Alameda Corridor It is intent of the Harbor Department and POLB that all of the property upon which the Alameda Corridor and faci are located jointly and u jurisdiction control of Board of Harbor Commissioners. Further, it is intended that other properties, including but not limited to construction easements, old and new alignments of relocated roadways, unused rail alignments, and utility rights way conveyed and transferred to City or other public having jurisdiction

3 DATE: JANUARY 5, 2011 PAGE 3 OF 6 SUBJECT: PROPOSED GRANT AND EASEMENT DEEDS - LAHD NO over such properties. Upon completion of the Alameda Corridor, a property disposition group consisting of representatives from the Real Estate Divisions and City Attorney's offices of the Harbor Department, the POLB, and ACTA representatives was established to review Alameda Corridor related properties and to make recommendations accordingly. Since September 2005, the property disposition group has been meeting to define the property transactions that ensure each remnant parcel along the Alameda Corridor is owned by the appropriate entity. In response to those activities, the Los Angeles Board of Harbor Commissioners (Board) has previously approved seven property transactions transferring bridges, street improvements, and utilities to various Alameda Corridor cities. Proposed Property Exchange - To further those ongoing efforts, the property disposition group recommends the proposed Grant Deed in favor of POLB and Easement Deed in favor of POLA for the section of the Alameda Corridor tracks parallel to Henry Ford Avenue between Pier A Way and the Cerritos Channel and the adjacent property related to the relocation of Henry Ford Avenue. Since the aggregate value of all of the property rights which the Harbor Department and the POLB are each conveying to the other is generally equivalent, no monetary consideration is to be given in connection with the proposed conveyance, except for the subsurface easement rights necessary for the POLB to access its adjacent properties, for which the POLB will pay Harbor Department fair market value as discussed below. The proposed rail and road rights-of-way exchange provides the Harbor Department with the entitlements necessary for the long-term operation and maintenance of that portion of Henry Ford Avenue, which is very important to Port of Los Angeles' transportation infrastructure. Further, the proposed property exchange provides for the Harbor Department and the POLB to equally share in maintenance of the properties exchanged, which would serve to reduce the Harbor Department's overall maintenance costs. Since the rail rights-of-way owned by Harbor Department between Pier A Way and the Cerritos Channel traverses POLB property, as a condition of the property exchange the POLB requested the right to purchase, in the future, an exclusive subsurface easement for the construction and operation of a subsurface access tunnel under the Alameda Corridor, providing a transportation connection between the POLB properties on either side of the rail rights-of-way. Because the property on both sides of the Harbor Department's railroad rights-of-way is owned by the POLB, the proposed subsurface easements only have value to the POLB, and therefore, the proposed conveyance of the subsurface easement to the POLB would maximize the Harbor Department's financial return on the property. The POLB would be solely responsible for completing all environmental reviews and obtaining all permits and approvals, including the Harbor Department's approval of construction plans, for any such subsurface access tunnel. The actual conveyance of the subsurface easement to the POLB for the fair market value, as determined by an appraiser mutually selected by the parties, would be completed in the future, and only upon the the POLB obtaining all required approvals

4 DATE: JANUARY 5, 2011 PAGE 4 OF 6 SUBJECT: PROPOSED GRANT AND EASEMENT DEEDS - LAHD NO upon or before commencing construction construction. of such subsurface access tunnel It is recommended that the Board request City Council to delegate authority to the Board to establish the fair market value of the subsurface easement and execute all required documents to effectuate the conveyance of the easement rights as committed to in the proposed property exchange and documented in the proposed Grant Deed. City Council's delegation of this authority would serve to streamline the future conveyance of the subsurface easement. The City Attorney has advised that pursuant to California Government Code Section 54221(b), property held by the Department for exchange is not considered surplus property and therefore noticing of the disposal of the property under the Surplus Land Statute is not required. Further, because the Department continues to require the use of the property involved in the proposed exchange, the property is not surplus and is not subject to the Los Angeles Administrative Code procedures for declaring City owned property as surplus (Division 7, Chapter 1, Article 4, Section 7.22). Proposed Grant Deed - The proposed Grant Deed provides 50 percent property interest in Harbor Department Parcels currently improved with Alameda Corridor rail tracks between Pier A Way and the Cerritos Channel, totaling approximately 185,398 s.f., from the Harbor Department to the POLB. The Grant Deed further provides: That the Harbor Department and the POLB shall equally share the cost of maintaining the property, exclusive of any costs associated with the POLB tunnel. The Harbor Department reserves all underground rights except those subsurface rights necessary for the POLB to access its adjacent properties. The POLB with the ability to purchase an exclusive subsurface easement for the purposes of constructing, maintaining, and using a subsurface access tunnel as an access and utility corridor for adjacent POLB properties. The POLB, after obtaining all approvals required for construction of such an access tunnel and upon or before commencing construction would pay the Harbor Department 100 percent of the fair market value of such easement, as determined by an appraiser mutually selected by the parties. That the POLB shall be responsible for any damage to the property caused by construction and maintenance of the POLB subsurface access tunnel. The 50 percent interest in Harbor Department Parcels being conveyed to the POLB has an estimated current market value of $2,039,378, based on $22 per s.f. land value. The Grant Deed providing Harbor Department Parcels to the POLB requires City Council approval. Since the POLB's conveyance of the easement rights is in exchange for the Harbor Department conveying property rights, it is recommended that the Board

5 DATE: JANUARY 5, 2011 PAGE 5 OF 6 SUBJECT: PROPOSED GRANT AND EASEIVIENT DEEDS - LAHD NO authorize the Executive Director to execute the Grant Deed following City Council approval, conditioned on the POLS approving the proposed Easement Deed. Proposed Easement Deed - The proposed Easement Deed grants easement rights in the POLS Parcels on which Henry Ford Avenue is built from Pier A Way to the edge of the Cerritos Channel and for the associated retaining wall footings from Pier A Way to the southernmost limits of the City totaling approximately 145,810 s.f. from the POLS to the Harbor Department for purpose of constructing and maintaining Henry Ford Avenue. The Easement Deed further provides: That the Harbor Department has a non-exclusive easement for street lighting purposes. That the Harbor Department and POLS shall equally share the cost of maintaining the property. The easement rights for POLS Parcels being conveyed have an estimated market value of $2,085,083, based on $22 per s.f. land value, discounted by 35 percent for the limitations on easement rights. The Harbor Department's acceptance of easement rights from the POLS does not require City Council approval. However, since the POLS's conveyance of the easement rights is in exchange for the Harbor Department conveying property rights, the Executive Director will not accept the Easement Deed until the Grant Deed is approved by City Council. ENVIRONMENTAL ASSESSMENT: The proposed action is the exchange of certain Harbor Department and POLS parcels related to the construction of the Alameda Corridor. As an administrative action for which the underlying project has been previously assessed under the requirements of the California Environmental Quality Act (CEQA), the Director of Environmental Management has determined that the proposed action is exempt from CEQA under Article" Section 2 (i) of the Los Angeles City CEQA Guidelines. ECONOMIC BENEFITS: This Board action will have no direct employment effect in the five-county region. FINANCIAL IMPACT: The proposed Grant Deed results in the Harbor Department providing the POLS property rights with an estimated value of approximately $2,039,378 and the proposed Easement Deed results in the Harbor Department accepting easement rights from the POLB estimated at approximately $2,085,083. Therefore, the aggregate value of all of the property rights which the Harbor Department and the POLS are each conveying to the other is generally equivalent, resulting in no fiscal impact.

6 DATE: JANUARY 5, SUBJECT: PROPOSED RANT AND EASEMENT DEEDS LAHD NO However, in the future, in the event that the POLS constructs a tunnel under the property conveyed, the would be required to compensate the Harbor Department 100 percent of fair market value of the subsurface property used The footage area that would be required for proposed POLS tunnel and the resulting property value are uncertain at this time. CITY ATTORNEY: the City Attorney has Deeds as to form and legality. approved as form and legality. and prepared and Ordinance 5. Site Aerial Map FIS Approval: (initials) Deputy Executive Director Exec1we Director MJG:RG:BG:FFS:raw Author: F. Sanchez BL367raw POLA POLB Grant and Easement Deeds

TRANSMITTAL. COUNCIL DISTRICT The Mayor 15

TRANSMITTAL. COUNCIL DISTRICT The Mayor 15 TO Eugene D. Seroka, Executive Director Harbor Department TRANSMITTAL 0150-06993-0002 DATE COUNCIL FILE NO. MAY 1 2 2016 FROM COUNCIL DISTRICT The Mayor 15 PROPOSED PERMIT AMENDMENTS TO ESTABLISH AN IMPROVEMENT