HomeMy WebLinkAbout1971-01-19; City Council; 335; Water Systems ImprovementsT'H E CITY OF CARLSBAD.CALIFORNIA
Agenda .Bill No Date: Jan. 19, 1971
Referred To;
Subject: ...'»
Water Systems Improvements Land Acquisition :
Skyline Reservoir Site and Appurtenant Basements
Submitted By:
Hunter T. Cook
City Engineer
Statement of the Matter
The .proposed Skyline Reservoir will be located at the southerly end of
existing <Skyline Drive, as shown on- attached Exhibit I. The fair market
value of the. site has been appraised by Mr. Joseph M. Williams, M.A.I.,
at $29,200.., The appurtenant easements required, have- been appraised at a
value of an: additional $1,800, for a total estimated just compensation.
of $31,000. -This amount has been offered to the owner of the property,
Pannonia Investment Corporation. They have, in turn, stated :that they
feel they should .be1 compensated in the amount of $45,415 for the property.
The basis for the Pannonia estimate of value has been reviewed by our ap- .
praiser, who has stated that the estimate is very unrealistic.
• j ..
The staff has discussed various alternatives with the owners which would
.enable Pannonia Investment Corporation to derive use of the land in terms
of unit development equal to that which they now enjoy. The most practical
Exhibit . ' -(continued^on attached page)
1.
2.
3.
Sketch of Skyline Reservoir Site and Easements
P. I.C. Letter dated January 5, 1971. f
: '
P. I.C. Letter dated November 30, 1970.-
4." City Engineer's letter dated- December -17, 1970.
Staff Recommenda ti ons
Adopt Resolution #authorizing and directing condemnation
of land for the Skyline Reservoir and right of way purposes
fT7W»"^f-
Statement of the Matter (continued)
of these would be the use of a planned community zone. Staff
efforts along this line have proved unsuccessful. Pannonia Invest-
ment Corporation has indicated their reluctance to accept the City's
offer, as evidenced by their letter of January 5, which is attached
as Exhibit II. That letter refers to a previous letter dated
November 30, 1970, which is attached as Exhibit III. The City's
latest offer is attached as Exhibit IV.
In light of the inflexible position taken by the Pannonia Investment
Corporation, coupled with the fact that 90 days advance notice must
be given prior to acquiring possession of water systems improvement
property, condemnation proceedings should be undertaken immediately.
. .
AS Ho. ' . ' Pate.- Jan. 19, 1971
City Manager's Recommendation
Concur with, recommendation of City -Engineer,
Council'Action
T-19-7V Res. #1822 was adopted, authorizing' and directing condemnation
of land for Skyl ine Reservoir and, right of .way purposes , as
recommended by staff.
7/
-2-
EXIST'G 20
EASEMENT
S
/'SO-
^•SKYLINE
RESERVOIR
SITE
EX 1ST'G 10'
EASEMENT TO,BE VACATED
•3O1 EASEMENT
SCALE I"-400'
EXIST'G 20'EASEMENT
PROPOSED
SKYLINE RESERVOIR SITE
AND EASEMENTS
EXHIBIT NO. I
Pannonia Investment Corporation
3433 West 109th Street
Inglewood, California 90303
January6^>N
\\City of Carlsbad
1200 Elm Avenue
Carlsbad, California 92008
Attention: Mr. Hunter T. Cook
City Engineer
Subject: Skyline Reservoir
Dear Mr. Cook:
In a special Board of Directors meeting, your letter of Dec-
ember 17 , 1970 was reviewed and your proposal received due
consideration.
It was concluded that the City Officials must be aware of a
demand for lower cost housing in the Carlsbad area.
Rezoning of the P.I.C. property to higher density would serve
public interest and therefore should not require an added in-
centive in the form of a donation by the property owners.
It may also be noted here that the majority of the P.I.C.
shareholders are non-business type small investors, not very
receptive to the suggestion of donating their life savings.
However, in an attempt to cooperate with the City of Carlsbad
to the fullest reasonable extent, another compromise was pro-
posed as follows: The City of Carlsbad will compensate for the
acquisition of the Skyline Reservoir Site with the rezoning of
the property as outlined in Items 1 through 4 in the P.I.C.
letter submitted to the City of Carlsbad, dated November 30, 1970.
The City of Carlsbad will submit said plans to the Pannonia Invest-
ment Corporation for approval. Upon approval, P.I.C. will waive
any claims for severance damage and accept the City of Carlsbad
offer based on the appraisal by Mr. Joseph Williams, M.A.I.
Very truly yours,
Steve Merli
Vice President
SM/gp
•.. Pannonia Investment Cor -tion ' } ._ .
3433 W. 109th Strc.r • WTT (TF T VFD
Inglewood, California 90303 • IVJjV<J^J-TJ^A^
Nov. 30, 1970
City Engineer:
Hunter T. Cook Qjjy Qf CAR15BAD
92008 .',. ****** Department
Dear Mr. Cook:
The PIC (Pannonia Investment Corporation) held a special Board
of Directors' meeting on Nov. 2ij., 1970, to discuss the Skyline
Water Reservoir Issue. . , v\ '- '•
In review, the toatl just compensation of $52,591. for the site
(as proposed by the city of
relocation of easement 2-A .ref
ted by PIC on Nov. 11, 1970.)
rlsbad) was confirmed, (subject to
Summary .of Computation, submit-
Compari'son of the city of Carlsbad
appraised with the PIC evaluation indicate the primary difference
in Gross Severence Damage,. .,-.>'• ,., o,.' '0*%^ -
It is the opinion of PIC :panel that the damaging effect of a water
reservoir structure on the value of its surrounding area and the
zoning of this particular area are interrelated. Consequently, a
relaxation of the existing zoning restriction would lessen the dam-
age inflicted. Based on these thoughts, the following alternative
was considered:
I
1) The property owned, by Pannonia Investment Corporation be rezoned
for higher density construction. (PC zone)
2) The new zoning will allow for the construction of Ij.20 dwellings
on the remaining property—remaining property being the acreage left
after deduction of the water reservoir site, buffer zone, open ,
spaces, etc.
3) The rezoning procedure will be initiated by the city of Carlbad.
i|.) The city of Carlsbad will draw up plans showing required density
distribution, giving a detailed account of all restrictions and con-
straints imposed on future developments.
5) The city of Carlsbad will submit said plans to the Pannonia
Investment Corporation for fin?l approval.. Upon approval of the
rezoning, the PIC in return, will accept the offer of $31,000. as
compensation for the Skyline reservoir site, as initially apprcised
by Mr. Joseph Williams, K.A.I., and offered by the city of Carlsbad
on Nov. i|, 1970.
December 17, 1970
Pannonia Investment Corporation
3433 West 109th Street
Inglewood, California1 90303
Attentions Kr. Steve Herli. "
:' ,_••/. ' - .'•'• Vice President '. • •'./ -' :'• : :' -•':. :":-:':.,.'^ - ;•-•; •
SUBJECT* Skyline Reservoir '
Dear Mr. Merlit . ' ••'••'.'. ^ • ••-•> - -'• :';'^'-'V,'-- •'•'^rl- . •.'-'.••'-.' ''
; "... .' ' ; ',. • : , .-:"'i; - : •. • ••:• '"-.• •- ' ' "• ' • • '' '"" • .- ::-. . ••.;:;
The P.I.e. letter of £k>vet&ber 30, 1970, presenting a
proposal for selling the Skyline Reservoir site to the
City, has been reviewed. On December 9, X discussed
the details of your proposal with your president, Mr.
Josef Bauer. . .••"".-.. •• , ' '. \ ; ;V- -':' .-•• • ."••';•''•.
The City v/ould be agreeable to filing for a proposed
zone change, as outlined in Items 1 through 4 of your
letter. However, the City could not agree to condition
Kb. 5, which requests payment of the full appraised
value of the proposed reservoir site. :
The City would entertain the proposal for a zone change,
subject to the donation, at no cost to the City, by
P.I.C. of the reservoir site and the attendant easements
for access and water line purposes, details of which
have been previously forwarded to Mr. Bauer. The City
could then justify the inclusion of the reservoir site
as part of the required open space. The purchase price
of the reservoir could then be used to obtain equivalent
open space at another location.
:,. &<• "I «.i-rC<)
December ! 1970
Pannonia Investment Corporation
Page Two
Mr. Bauer indicated that Pannonia investment Corporation
is not particularly interested in dedicating the right-
of-way under conditions such as we propose. If this is
indeed the case, since we have no basis for altering the
appraised fair market value, there appears to be no al-
ternative other than to initiate condemnation proceedings
to acquire the property. As I discussed with Mr. Bauer,
we would take this action most reluctantly. We hope
that your Board will see fit to reconsider our offer as
a fair and equitable vehicle for obtaining a developmental
return for you comparable to that which you presently
enjoy.
If you or your Board of Directors have any questions con-
cerning this proposal, I will be roost happy to meet with
you at your convenience to discuss them. Since time is
of the essence, I will need to know of any modification
in your position prior to the end of December.
Please accept my best wishes for a Merry Christmas.
Very truly yours.
HUNTER T. COOK
City Engineer
HTCfCC
cct City Manager
City Attorney
bcc» Joseph H. Williams, MAI