AgdaPkt 2010-12-21 clsd and regular

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7.A Page 1 REPORT To the Honorable Mayor and City Council From the City Manager December 21, 2010 SUBJECT Hold Public Hearing Regarding General Vacation of Public Right -of -Way — Chemical Way RECOMMENDATION Adopt a Resolution Vacating Chemical Way, a City Right -of -Way Dedicated and Accepted for Public Use BACKGROUND The City has been engaged in efforts to effectuate the City Council's direction to identify alternative property for a County replacement jail facility. As a result of the City's efforts, a site comprised of four properties located at 20, 50, 70, and 80 Chemical Way within the Woodhouse Industrial Park ( "Woodhouse Industrial Park Property ") was identified as potentially viable site for the replacement jail facilities and was available for purchase. In order to secure the opportunity to purchase the Woodhouse Industrial Park Property while providing sufficient time for the City and County to investigate and perform due diligence to determine whether the Woodhouse Industrial Park Property is a feasible and desirable site for the replacement jail facilities, on October 11, 2010, the City entered into a purchase option agreements for the four properties constituting Woodhouse Industrial Park Property. On November 22, 2010, the City Council authorized the City Manager to enter into a Memorandum of Understanding (MOU) with the County of San Mateo regarding potential replacement jail facilities on the Woodhouse Industrial Park Property, including provisions relating to assignment of the four purchase option agreements to the County and which the County approved on November 30, 2010. In order to accommodate development of the Woodhouse Industrial Property, the MOU provides that as soon as possible after December 15, 2010, (the Effective Date of the MOU), the City shall, subject to compliance with all applicable State and local laws, expeditiously review and consider for approval the vacation of all of City's interests and rights in the Chemical Way right -of -way, as required and appropriate to facilitate the proposed development of the replacement jail facility, jail ancillary use, or other public purpose. In accordance with the MOU and state law, the City may condition the effectiveness of the Chemical Way vacation upon County's acquisition of fee title to the Woodhouse Industrial Park Property, the termination or expiration of all tenancies and relocation of all demolition activities with respect to the existing improvements, and County obtaining approval from applicable agencies and utility providers of plans for relocation or replacement of all utility conduits and facilities as may be required for County's use of the Woodhouse Industrial Park Property. If the City approves the Chemical Way right -of -way vacation and upon satisfaction of all conditions on the effectiveness of such vacation, the City's interest in the right -of -way