TITLE
Recommendation to authorize City Manager to execute a Terms and Conditions Letter for the purchase of 8.9 acres from the Union Pacific Railroad Company for the Drake/Chavez Greenbelt Project. (District 1)
DISCUSSION
The DrakeKhavez Greenbelt Project (Project) provides for the acquisition of property for the development of a greenbelt along the Los Angeles River. The greenbelt will connect Cesar E. Chavez and Drake parks through the development of wetlands and passive and active open space (Attachment). Funding for the Project is supported by grants received through the Safe Neighborhood Parks, Clean Water, Clean Air and Coastal Protection Bond Act of 2000 (Proposition 12), the Safe Drinking Water, Clean Water, Watershed Protection and Flood Protection Act (Proposition 13), the California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Act of 2002 (Proposition 40) and the Redevelopment Agency Central Project Area Revenue Bond proceeds.
The City is currently in negotiations with Union Pacific Railroad Company (UPRR), for the acquisition of 8.9 acres within the Project. As a result of certain environmental issues, negotiating a Purchase and Sale Agreement will be a protracted process. Until the fiscal impact of these environmental issues can be determined and because of the limited grant funds for this acquisition, it is advisable to set parameters on certain dealpoints of the transaction on which the parties have reached agreement ahead of the ongoing negotiations. In particular, the parties seek to identify the sale property and establish a not to exceed purchase price. This is intended to avoid inflated prices that may undermine negotiations at the end of this protracted process. Therefore, execution
of a terms and conditions letter is requested. Upon completion of negotiations, staff will seek City Council authorization for the execution of a Purchase and Sale Agreement and allocation of grant funds for acquisition.
The followi...
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