To: HONORABLE MAYOR AND From: Katy Allen

CITY COUNCIL Thomas R. Wheatley

Subject: WEST COMMUNITY Date: 10-15-03

POLICING CENTER

Council Districts: 1 and 6

SNI Area: Winchester

RECOMMENDATION

Adoption of a resolution:

(1) Determining that public use and necessity require the acquisition of fee title to the entire property located at 3075 Driftwood Drive, owned by Isek Wekselman Enterprises Inc

(2) Finding that the property needs to be taken, and is necessary, for the construction and location of the Westside Community Policing Center. The proposed project is planned and located in the manner that will be most compatible with the greatest public good and the least private injury. City staff established an amount of compensation not less than its approved appraisal of the fair market value and made an offer to the owner for the full appraised amount; and the proposed taking and use are authorized by law;

(3) Directing the City Attorney to file an eminent domain action to acquire this real property interest.

CEQA: Exempt, PP03-07-244.

BACKGROUND

In March 2002, voters in San Jose Passed the “Neighborhood Security Bond Act” that approved the issuance of $159 million in General Obligation Bonds to fund the construction of various Public Safety facilities. One of the items funded under the Bond Act is the construction of four Community Policing Centers (CPCs). This site was recommended for consideration by the Council Members whose Districts border this parcel. The site meets or exceeds all criteria used in determining where to locate a CPC. The property owner’s representative, Joan Schell, was contacted on August 8, 2003 at which time an appraisal and contract documents were delivered to her and the property owner. The property owner’s attorney has stated in writing to the City’s Real Property Division that the owner rejects the City’s offer and requested that the City commence eminent domain action on the property.

ANALYSIS

The Police Department’s Western Division is the only Division in the City that currently does not have an operating CPC. With the approval of the Bond Act, the Western Division was selected as the priority for acquisition and renovation or new construction for a CPC.

The criteria staff use in determining a site for the CPCS are:

· Visibility

· High pedestrian and vehicular traffic levels

· Minimal disruption to existing businesses, and compatible to nearby businesses

· Good parking

· Good traffic circulation

The recommended site has good to excellent ratings in each of these criteria.

The site, identified as APN 279-25-013, is ½ block off of Winchester Boulevard and located near several restaurants. The restaurants draw a significant number of vehicles and pedestrians to the area. The site has access from both Driftwood Drive and Winchester Boulevard, which gives the site good visibility and convenient access. The site is 19,320 square feet and is sufficient to provide adequate parking and traffic circulation.

There is currently an existing building and business on the site. Staff recommends that the building be demolished and a new structure built to house the CPC. The existing building was constructed in 1965, is in very poor condition and is not compatible with the planned uses of the CPC.

The CPC facility is planned to be an approximately 2,000 to 3,000 square foot building. The facility will house a public reception counter, community meeting room, report writing workstations for officers, and a Megan’s Law computer for public use.

This site is located across Winchester Boulevard form an existing “Gang Abatement” area, and may serve as a crime prevention resource due to its closeness to the area.

An appraisal performed by Smith and Associates determined fair market value for the property as $773,000. The appraisal is for the entire parcel of 19,320 square feet of land. The property is improved with a 28 year old 2,549 square foot commercial building. A bar named Ike’s Lounge, owned by the real property owner, is on the site. The property is currently zoned for general commercial use (CP-Commercial Pedestrian). The Highest and Best Use of the property is considered to be for redevelopment.

The appraiser valued the property at $40.00 per square foot of land. Therefore the value of the property is calculated as follows:

$40.00/sq ft X 19,320 sq ft = $772,800, rounded to $773,000

The owner of the bar previously indicated he does not want to relocate. An analysis of his tax records indicates he is eligible for a $20,000 in-lieu relocation payment. That amount is the maximum a business owner is entitled to receive if he elects not to move.

PUBLIC OUTREACH

Not applicable.

COORDINATION

This memorandum has been coordinated with the City Manager’s Budget Office, City Attorney’s Office and the Department of Planning, Building and Code Enforcement.

COST IMPLICATIONS

Staff has reviewed the appraisal for the site, and it is valued at $773,000, and believes this is an accurate value for the property. Staff is also recommending approval to spend up to $20,000 for any relocation costs associated with the purchase.

1. AMOUNT OF RECOMMENDATION:

A. $773,000 Appraised value

B. $ 20,000 Not to exceed for relocation expenses

C. $793,000 Total Authorization

2. COST OF PROJECT:

Land acquisition $ 773,000

Relocation expenses (maximum amount) $ 20,000

Design and Construction costs $ 987,000

TOTAL $1,780,000*

*Pending review of the project scope, funding for the construction contract may include drawing from the Contingency Reserve.

3. SOURCE OF FUNDING: 475 -Neighborhood Security Bond

4. FISCAL IMPACT: This project is consistent with the Council-approved Budget Strategy and Economic Recovery Strategy in that it will spur construction spending in our local economy. It provides for the construction of a new facility, but will not require additional staff or non-personal expenses to operate and maintain

BUDGET REFERENCE

Fund #	Appn. #	Appn. Name	RC#	Total Appn.	Amount for Purchase	Adopted Budget Page	Last Budget Action
475	4541	West SJ Comm. Policing	12279x	$1,673,000	$773,000 20,000 $793,000	Adopted Capital Budget p. 291
475	7633	Contingency Reserve		$1,895,000		Adopted Capital Budget p. 324

CEQA

Exempt, PP03-07-244.

KATY ALLEN

Director, Public Works Department

THOMAS R. WHEATLEY

Acting Chief of Police