Agenda Item # 26
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Date: |
August 19, 2002 |
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Committee Meeting Date: |
August 15, 2002 |
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Board Meeting Date: |
September 5, 2002 |
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ACTION
X
DISCUSSION
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| INFO
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BOARD MEMORANDUM
| TO: |
Santa Clara Valley Transportation Authority |
| | Board of Directors |
| | | | THROUGH: | Peter M. Cipolla |
| | General Manager |
| | | | FROM: | Michael P. Evanhoe |
| | Chief Development Officer |
| | |
| SUBJECT: |
Sale of Surplus Land on Evans Lane to the City of San Jose Housing Department |
RECOMMENDATION:
Authorize the General Manager to execute all necessary documents to sell approximately 5 acres on Evans Lane in the City of San Jose to the City of San Jose Housing Department (DOH) for the development of an affordable housing project.
BACKGROUND:
The subject property, commonly referred to as the Evans Lane parcel, is part of a larger site which VTA acquired in 1981. The assemblage totaled approximately 7.371 acres of vacant land. This property was acquired for use as a park-and-ride lot for the Guadalupe Corridor Project. After the project alignment was modified, another property located along Curtner Avenue was selected for the park-and-ride lot site.
On March 2, 1998, VTA conveyed to the County of Santa Clara approximately 2.378 acres of the larger parcel for the development of the Santa Clara County Womens Residential Center resulting in an area of approximately 5 acres retained by VTA. In turn, the County conveyed a like amount of property adjacent to the Elmwood Rehabilitation Facility in Milpitas to VTA for the Tasman East Light Rail Project.
The subject property has been leased since September 19, 1985 to Almaden R.V. and Boat Storage, a limited partnership. Current annual rental is $89,848.56. The lease term expired November 30, 2000, and the tenant was placed on a month-to-month agreement at that time.
DISCUSSION:
VTA and DOH have been in discussions regarding potential transit-oriented housing development projects on several VTA-owned surplus sites. Various sites were considered and it was mutually agreed that the Evans Lane parcel offers the best opportunity at this time as a site for an affordable housing development project.
Staff does not see any future transit use for subject property. Pursuant to Public Utility Code Section 20209, VTA is not required to declare the property excess prior to selling it to DOH (a local public agency responsible for affordable housing development).
VTA and DOH each hired their own independent appraiser. The value opined by the DOH and VTA appraisers are $8,400,000 and $8,700.000 respectively. As a fair and reasonable compromise to the small difference in opined values, VTA and DOH have agreed to a sale price of $8,550,000. The $8,550,000 price represents a split of the two appraisers opinion of value.
Upon Board approval to proceed, together with the signing of a formal purchase agreement between VTA and DOH, Almaden R.V. and Boat Storage will be presented with a 60-day notice to vacate the premises.
ALTERNATIVES:
The Board could choose not to sell the property to DOH at this time.
FISCAL IMPACT:
VTA will receive full payment for this property within 75 days of a fully executed purchase agreement. The funds will be placed in VTAs operating reserves.
| Prepared by: | Ron Pang, Senior Real Estate Agent |
| Reviewed by: | James E. Pierson, Director of Planning and Development |
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