AgdaPkt 2018-01-08 Joint SA PFA - Laserfiche WebLink

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5 Additional Costs Incurred Associated with the Docktown Plan Costs associated with implementing the Docktown Plan include the direct cost of providing relocation benefits and property acquisition, as well as contract project management costs, relocation consultant costs, legal counsel, costs for security services, and costs for dismantling acquired property in the case that it is not feasible to sell, donate, or move the property to another location. Now that the processes for determining benefits eligibility and the fair market value of property acquisition have been completed, staff have updated estimated costs associated with implementing the Docktown Plan. It is important to note that these costs do not include the cost to remove docks or complete any capital projects related to long- term uses of Redwood Creek, as the City Council has not determined how the portion of the Creek owned by the City will be used in the future. The City leases, on a month-to-month basis, the land adjacent to the Creek to provide access to the Marina. The property owner (the applicant is a developer) is proposing a 131-unit housing development on the site; the development proposal anticipated the continued operation of the Docktown Marina and allows for waterside access consistent with the public trust as well as Marina parking. The proposal is currently under review; project information is available at: http://www.redwoodcity.org/city-hall/current-projects/development-projects?id=63 The City is subject to legal challenges associated with implementation of the Docktown Plan. To date, five such legal challenges have been filed against the City. Legal defense costs are projections based on current legal activity and are subject to change. In February 2016, costs associated with the Docktown Plan were estimated at $10.2 million. Costs are now estimated at $20.8 million, and have increased because several costs were not known in February 2016: 1. Total costs associated with providing comprehensive assistance to tenants: OPC staff has spent more time than anticipated assisting tenants, and costs for service will exceed the initial $311,668 contract for services. An amendment to the agreement with OPC is needed to continue services through June 2018, for a total contract cost of $396,156 (increase of $84,448). 2. Costs associated with providing multiple appraisals (approximately $50,000) 3. Costs associated with administering an independent appeal process (over $100,000) 4. Costs associated with providing security services as tenants leave the Marina, and to prevent unauthorized use of acquired property (approximately $20,000) 6.1.B. - Page 5