AgdaPkt 2012-10-08 - Laserfiche WebLink

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8.B. - Page 3 One of the most difficult issues will be creating insurable title to the property. Because of the work already done on behalf of W.L. Butler, staff recommends that should they prepare all documentation, including title insurance and any required maps for recordation, in exchange for the City's relinquishment of its rights to this property. To effectuate this relinquishment, the interested party would file an application with the City requesting vacation of the right-of-way. After review by the City Engineer and staff, the request will come before the City Council with a resolution for the vacation. The resolution is then recorded with the County. The effect of the vacation is that all rights of the City relating to that vacated portion of property are extinguished, and the land becomes vested in the underlying fee title owners to the property. Generally, the underlying fee title to the vacated property belongs to the lots fronting the right-of-way in equal proportion up to the centerline of the street. Once the City vacates the right-of-way, the question that needs to be determined is who owns the underlying fee. This is left to the property owners to clear title; the City has no involvement in attempting to clear up the title. Jefferson Street There are two parcels of land held by the City that were acquired for building the undercrossing of Jefferson Street at the railroad tracks. These parcels were purchased with grant funds that limit the use of these parcels to transportation supportive use. The adjoining property owner and other development interests have approached staff looking to acquire all or that portion of the properties that is flat enough to be used for their commercial use. The remainder of the parcels would remain supportive of the transportation uses as intended, either through retained ownership by the City and County, or through easements, as appropriate. The parcels are not configured to support development along the top of bank. The property line needs to be relocated such that it is parallel with Jefferson Street, not perpendicular. Additionally, the City requires an easement to enable access from above to the sloping portion of the property for maintenance purposes. A review of the grant documents shows that the property was purchased with State of California and San Mateo County grant funding. Staff and the City Attorney researched the implications of the grant funding. Under the State funding, if the property is sold or transferred within 20 years of the grant, which was awarded in 1994, then the State may need to be repaid. If the property is sold after that 20-year period, there is no repayment penalty. The only other restriction affecting the sale of the property is that the County as co-owner with the City must agree to the sale. Consequently, staff recommends that the property not be transferred until the 20 year period expires in mid 2014. This extended time frame enables City and County staff to resolve the agreements necessary to effectuate a transfer. If all or a portion of the funds must be repaid to the grantors, then staff recommends that this cost, plus the cost of re- subdividing the properties to the desired configuration be the responsibility of the requesting party.