Meeting_Body
REGULAR BOARD MEETING
JANUARY 23, 2025
Subject
SUBJECT: PUBLIC HEARING ON RESOLUTION OF NECESSITY FOR EAST SAN FERNANDO VALLEY LIGHT RAIL TRANSIT PROJECT
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
ADOPT the Resolution of Necessity authorizing the commencement of an eminent domain action to acquire the fee simple interest and the improvements pertaining to realty (“Property Interests”) for the property identified in Attachment A and described as 14646 Raymer St., Van Nuys, CA; APN: 2210-025-007, ESFV-E-012-1 (“Parcel 12”).
(REQUIRES TWO-THIRDS VOTE OF THE FULL BOARD)
Issue
ISSUE
Acquisition of the Property Interests is required for the construction and operation of the East San Fernando Valley Light Rail Transit Project (“Project”), specifically the Maintenance and Storage Facility (“MSF”). After testimony and evidence has been received from all interested parties at the hearings, Los Angeles County Metropolitan Transportation Authority (“LACMTA”), by a vote of two-thirds of its Board of Directors (“Board”), must make a determination as to whether to adopt the proposed Resolution of Necessity (Attachment B) to acquire the Property Interests by eminent domain. Attached is evidence submitted by staff that supports the adoption of the resolution and which sets forth the required findings.
Background
BACKGROUND
The Project extends north from the Van Nuys Metro G-Line station to the Sylmar/San Fernando Metrolink Station, a total of 9.2 miles of a dual-track light rail transit (“LRT”) system with 14 at-grade stations. The LACMTA Board certified the Final Environmental Impact Report on December 3, 2020, and the Federal Transit Administration signed a Record of Decision on January 29, 2021, for the Project. Included in the Final Environmental Impact Statement/ Environmental Impact Report was the initial operating segment (IOS) defined as the southern 6.7 miles of the Project alignment. The IOS is street-running in the middle of Van Nuys Boulevard and includes 11 at-grade center platform stations, 10 traction power substations, and a Maintenance and Storage Facility (MSF) for the LRT vehicles.
The Project will improve mobility in the area by:
• introducing an improved north-south transit connection between key transit hubs/routes;
• enhancing transit accessibility/connectivity for residents to local and regional destinations and activity centers;
• increasing transit service efficiency; and
• encouraging a modal shift from driving in order to achieve reductions in greenhouse gas emissions.
The MSF will be constructed on the west side of Van Nuys Boulevard on approximately 21 acres, which is bounded by Keswick Street on the south, Raymer Street on the east and north, and the Pacoima Wash on the west. The MSF will house the fleet of 34 light rail vehicles that will be procured to initiate service on the line. The MSF will also accommodate rail car washing, a paint shop, wheel truing, material storage, cleaning platform, and main shop.
Acquisition of the Property Interests is required for the MSF.
Discussion
DISCUSSION
Parcel 12 is a commercial property with one tenant, a recycling business (“Tenant”). A written offer of Just Compensation to purchase the real property was presented to the Owner of Record (“Owner”) on February 20, 2024, as required by California Government Code Section 7267.2. For Improvements Pertaining to Realty (“IPR”), LACMTA presented both the Owner and Tenant with a written offer of Just Compensation, in compliance with California Government Code Section 7267.2.
A negotiated, conditional agreement for the purchase and sale of the real property was reached with the Owner on June 10, 2024, and the parties opened escrow. One of the conditions to complete the transaction was LACMTA’s environmental due diligence and a negotiated purchase price holdback to cover remediation costs if contamination were found within the Property Interests. During LACMTA’s environmental due diligence, soil contamination was found within the Property Interests, which requires remediation. A dispute over the costs of remediation and the purchase price holdback between the parties prevented the parties from closing escrow.
In addition, Owner and Tenant failed to reach an agreement between themselves with regard to the ownership of the IPR, and therefore, LACMTA is unable to determine the owner and proper recipient of compensation for the IPR.
Staff recommends the acquisition of the Property Interests through eminent domain in order to maintain the Project’s schedule.
In accordance with provisions of the California Eminent Domain Law and Section 30503, 30600, 130051.13, 130220.5 and 132610 of the California Public Utilities Code, (which authorizes the public acquisition of private property by eminent domain/n), LACMTA has prepared and mailed notice of this hearing to the Owner and Tenant, 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 Project; (2) whether the 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 Interests are necessary for the Project; (4) whether either the offer required by Section 7267.2 of the Government Code has been made to the owner(s) of the Property Interests, or the offer has not been made because the owner(s) cannot be located with reasonable diligence; (5) whether any environmental review of the Project, as may be necessary, pursuant to the California Environmental Quality Act (CEQA), has occurred and (6) whether LACMTA has given the notice(s) and followed the procedures that are a prerequisite to the exercise of the power of eminent domain. In order to adopt the Resolution, LACMTA must, based on the evidence before it, and by a vote of two-thirds of its Board, find and determine that the conditions stated in items 1 - 6 above exist.
Attached is the Staff Report prepared by staff and legal counsel setting forth the required findings for acquiring the Property Interests through the use of eminent domain (Attachment A).
Acquisition of the Property Interests will require relocation of the Tenant. A dedicated relocation agent is working with the Tenant to explain the benefits, provide referrals for replacement properties, and process payments for search, moving, and reestablishment costs. Prior to being required to relocate, the business will be provided 90-day and 30-day notices.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The Board's action will not have an impact on LACMTA’s safety standards.
Financial_Impact
FINANCIAL IMPACT
The funds required to support the acquisition, relocation activities, and the recommended right of way action for the properties referenced in this report are included in the adopted Project’s Preconstruction budget under Cost Center 8510 Project number 865521, East San Fernando Valley Light Rail Transit Corridor.
Impact to Budget
Sources of funds for the recommended action are Measure R 35%, Measure M 35%, and State Grants. These fund sources are not operations-eligible funding.
Equity_Platform
EQUITY PLATFORM
The Project will serve 11 new stations along Van Nuys Blvd, and will improve connections and access to key destinations for several Equity Focus Communities (EFC’s) along the Project. To date, LACMTA Community Relations (CR) staff, who include bilingual Spanish and English-speaking staff, have met with the local neighborhood councils and representatives from the local council district offices on upcoming construction, mitigation plans/efforts, and outreach efforts to the local community. CR staff have also been visiting the small businesses along the alignment and have been providing bilingual Spanish and English project information along with business resources. Also, the Project has established a Community Leadership Council (CLC), an advisory body to the Project, and plans to implement a CBO partnership that aligns with LACMTA’s CBO Partnering Strategy.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
The Project is consistent with the following Metro Vision 2028 Strategic Plan Goals:
Goal 1: Provide high-quality mobility options that enable people to spend less time traveling. Goal 2: Deliver outstanding trip experiences for all users of the transportation system. Goal 3: Enhance communities and lives through mobility and access to opportunity. Goal 4: Transform LA County through regional collaboration and national leadership.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board may choose not to approve the recommendation. This is not recommended as it would result in significant delays and cost increases for the Project. Furthermore, delay to the Project will have detrimental effects on the available Federal and State Grant funding dollars.
Next_Steps
NEXT STEPS
If this action is approved by the Board, LACMTA’s condemnation counsel will be instructed to take all steps necessary to commence legal proceedings in a court of competent jurisdiction to acquire the Property Interests by eminent domain and to conclude those proceedings either by settlement or jury trial. Counsel will also be directed to seek and obtain Orders of Prejudgment Possession in accordance with the provisions of the Eminent Domain Law. Staff will continue to negotiate with the property owner with the goal of reaching a voluntary settlement while concurrently pursuing the eminent domain process to preserve the project schedule. LACMTA will continue to work with the Tenant to find a suitable replacement location.
Attachments
ATTACHMENTS
Attachment A - Staff Report
Attachment B - Resolution of Necessity
Prepared_by
Prepared by: Darryl Root, Senior Director, Real Estate, (213) 922-5281
Holly Rockwell, SEO, Countywide Planning & Development, (213) 547-4325
Reviewed_By
Reviewed by: Ray Sosa, Chief Planning Officer, (213) 922-2920
