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Home My WebLink About03/20/2007 Blue Sheet Thornydale Road Rights of way TOWN COUNCIL MEETING INFORMATION TOWN OF MARANA MEETING DATE: March 20, 2007 AGENDA ITEM: 1.5 TO: FROM: SUBJECT: MAYOR AND COUNCIL Barbara Johnson, Director of Public Works Resolution No. 2007-40: Relating to Streets; approving and authorizing the Mayor to execute an acquisition agreement with Khurana Management, Inc., an Arizona Corporation, for the purchase of public rights-of-way as needed for Thornydale Road, Project No. 2002-58. DISCUSSION History: On August 2, 2005, the Mayor and Council approved Resolution No. 2005-101 authorizing the acquisition by negotiation or condemnation of lands and property rights needed for the above referenced project. Location: Tax parcel no. 101-05-035E, located at 3825 W. Orange Grove Road, Tucson, Arizona 85741 and referenced as Lot 1 of Orange Grove Industrial Park. Zoning and lot size: An 41,190.75 square-foot lot with HI zoning and improved with a convenience store with gas pumps. Type of acquisition: A 1,461 square foot Right-of-Way in fee title. Appraised value for acquisition area: $100,500.00 Negotiated administrative settlement value for acquisition area: Property owner's counter- offer of $125,000.00 did not have any basis of value. The counter offer by the Town in the amount of $1 05,000.00 was accepted by the property owner. Justification for administrative settlement: The additional $4,500.00 of compensation is significantly less than the costs to redesign the road improvement project and/or acquire the rights-of-way by condemnation action which would involve additional appraisal, expert testimony and court costs. RECOMMENDATION Staff recommends adoption of Resolution No. 2007-40, approving and authorizing the execution of the acquisition agreement with Khurana Management, Inc., an Arizona Corporation. SUGGESTED MOTION I move to adopt Resolution No. 2007-40. Thornydale Road Project 2002-58, Khurana Management, Inc., taxparceII01-05-035E 2/27/07 MF MARANA RESOLUTION NO. 2007-40 RELATING TO REAL ESTATE; APPROVING AND AUTHORIZING THE MAYOR TO EXE- CUTE AN ACQUISITION AGREEMENT WITH KHURANA MANAGEMENT, INC., AN ARI- ZONA CORPORATION, FOR THE PURCHASE OF PUBLIC RIGHTS-OF-WAY AS NEEDED FOR THORNYDALE ROAD, PROJECT NO. 2002-58. WHEREAS, the Town of Marana needs to acquire public rights-of-way to construct the Thornydale Road Improvements from Orange Grove Road to Canada del Oro Wash; and WHEREAS, the Mayor and Council ofthe Town of Maran a feel it is in the best interests of the public to purchase the needed property in an amount exceeding the appraised value in lieu of ex- ercising the right of Eminent Domain from the owner, Khurana Management, Inc., an Arizona Cor- poration. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, that the acquisition agreement between the Town of Marana and Khurana Management, Inc., an Arizona Corporation, attached to and incorporated by this reference in this resolution as Exhibit A is hereby approved, and the Mayor is hereby authorized to execute it or a substantially similar agreement for and on behalf ofthe Town of Marana. IT IS FURTHER RESOLVED that the Town's Manager and staff are hereby directed and au- thorized to undertake all other and further tasks required or beneficial to carry out the terms, obliga- tions, and objectives ofthe acquisition agreement. PASSED, ADOPTED, and APPROVED by the Mayor and Council ofthe Town of Maran a, Arizona, this 20th day of March, 2007. Mayor Ed Honea ATTEST: Jocelyn C. Bronson, Town Clerk APPROVED AS TO FORM: Frank Cassidy, Town Attorney MF 2/27/07 ACQUISITION AGREEMENT This Agreement is made by and between Khurana Management, Inc., an Arizona corporation, ("Owner"), and the Town of Marana, an Arizona municipal corporation ("Town"). 1. Property and Acquisition Amount. The Owner owns the property described in instrument recorded on February 19, 2002, in Docket 11739 at Page 1549 in the Pima County Recorder's Office, including all improvements located thereon (the "Property"). The Town has determined the need to acquire fee title to public rights-of-way (the "Acquisition"), described in Exhibit "A" and shown on Exhibit "B". In lieu of court proceedings and further to its power of eminent domain, the Town agrees to acquire fee title to the Acquisition for $105,000 (the "Acquisition Amount") subject to the terms and conditions set forth below with the categories of compensation and closing costs as follows: $105,000.00 $2,000.00 $107,000.00 Acquisition Amount Estimated Closing Costs Total Not to Exceed Amount 2. Risk of Loss for Damage to Improvements. Owner shall be responsible for the risk of loss for any and all damage to the improvements located on the Acquisition prior to close of escrow. 3. Warranty Deed Document. Upon execution of this Agreement the Owner shall deposit with Town a Warranty Deed conveying to the Town title to the Acquisition free and clear of all liens and encumbrances. 4. No Salvage. The Owner shall not salvage or remove any fixtures, improvements, vegetation, or any portion of the Acquisition prior to closing, but owner may remove its personal property. 5. Escrow and Prorations. The Acquisition Amount shall be payable in full at closing. (a) The date of closing shall be used for proration of rents, property taxes and other similar costs, (b) assessments due for improvement districts shall be paid in full by the Owner prior to closing, and ( c) property taxes shall be prorated based upon both the date of closing and the size of the Acquisition. The proration of taxes shall be for the proportion of taxes assessed against Owner's entire parcel which are attributable to the Acquisition. 6. Security Interest. Monies payable under this Agreement may be due holders (the "Lienholders") of certain notes secured by mortgages or deeds of trusts, up to and including the total amount of unpaid principal, interest and penalty on the notes, if any, and shall, upon demand by the Lienholders, be paid to the Lienholders. Owner shall obtain from the Lienholders releases for any fee transfer and consents for any transfer of an easement for the Acquisition. 7. Possession and Closing. Possession of the Acquisition shall be given to the Town at the earlier of the date of the Right-of-Entry or on date of closing. Closing shall be on or before the later of (a) 30 days after the date this Agreement is approved by the Marana Mayor and Council or (b) 30 days after receipt of all necessary releases or consents from lienholders. Marana Mayor and Council Approval of I Resolution No.: 2005-101 Resolution on August 2,2005 S 7 T13S, R13E I THORNY DALE ROAD PROJECT 2002-58 Parcel No. 101-05-035E I Acquisition Agreement for BP West Coast Products PS Page 1 of 3 8. Environmental Representations. The Town and the Owner agree that neither party is assuming any obligation of the other party relating to any potential liability, if any, arising from the environmental condition of the Acquisition, each party remaining responsible for its obligations as set forth by law. Owner hereby represents and warrants that, to the best of Owner's knowledge, no pollutants, contaminants, toxic or hazardous substances, wastes or materials have been stored, used or are located on the Property or within any surface or subsurface waters thereof; that no underground tanks have been located on the Property; that the Property is in compliance with all Federal, state and local environmental laws, regulations and ordinances; and that no legal action of any kind has been commenced or threatened with respect to the Property. 9. Environmental Inspection Rights. Owner shall permit Town to conduct such inspections of the Property as the Town deems necessary to determine the environmental condition of the Acquisition. If environmental inspections do not specifically identify contamination but indicate a potential for contamination and recommend further testing or inspection, the parties hereby agree to extend the date of closing to at least 30 days after the report for such additional testing or inspection is completed on behalf of Town, but not later than an additional 180 day extension. If any environmental inspection reveals the presence of contamination or the need to conduct environmental clean up, Owner shall conduct a clean up of the Acquisition adequate to bring the Acquisition into compliance with environmental regulations prior to Closing or Town may terminate this agreement. 10. No Leases. Owner warrants that there are no oral or written leases on all or any portion of the Acquisition. 11. Broker's Commission. No broker or finder has been used and Town owes no brokerage or finders fees related to this transaction. Owner has sole responsibility to pay all brokerage or finders fees to any agent employed. 12. Closing Costs. Expenses incidental to transfer of title, including title reports, recording fees, escrow fees, releases and Owners Title Insurance Policy, shall be paid by Town. 13. Right of Entry. This agreement grants a right of entry effective as of the date this agreement is signed on behalf of the Owner, which shall terminate when the Town takes title to the Acquisition or in 180 days, whichever occurs first. 14. No Sale. Owner shall not sell or encumber the Acquisition before closing. 15. Conflict of Interest. This Agreement is subject to A.R.S. ~38-511 which provides for cancellation of contracts by the Town of Marana for certain conflicts of interest. 16. Survival of Representation and Warranties. All representations and warranties contained herein shall survive the closing. Marana Mayor and Council Approval of I Resolution No.: 2005-101 Resolution on August 2,2005 87 T138, R13E I THORNYDALE ROAD PROJECT 2002-58 Parcel No. 101-05-035E I Acquisition Agreement for BP West Coast Products P8 Page 2 of 3 17. Entire Agreement. This signed document shall constitute the entire Agreement between the parties and no modification or amendment to this Agreement shall be binding unless in writing and signed by both parties. The performance of this Agreement constitutes the entire consideration by Town, including all just compensation and severance damages to the remainder property (the "Remainder") and shall relieve the Town of all further obligation or claims relating to Property. 18. Exhibits. Any exhibit attached to this Agreement shall be deemed to have been incorporated in this Agreement by reference with the same force and effect as if fully set forth in the body of this Agreement. By Town of Marana, an Arizona municipal corporation Khurana Management, Inc., an Arizona corporal" n , \ Y~SlFr.Q. v Date: Title Date "2-, I L - 2...001 Attest: Town Clerk Approved as to form: Town Attorney Marana Mayor and Council Approval of I Resolution No.: 2005-101 Resolution on August 2, 2005 S 7 T13S, R13E I THORNY DALE ROAD PROJECT 2002-58 Parcel No. 101-05-035E I Acquisition Agreement for BP West Coast Products PS Page 3 of 3 EXHIBIT A Description of Right-of-Way Acquisition from BP West Coast Products LLC Tax ParceI101-05-035E A portion of that parcel at land recorded at Docket 9137, Page 101, in Pima County, Arizona, being also a portion of Lot 1 of Orange Grove Industrial Park, recorded at Book 26, Page 73 of Maps and Plats, in Pima County, Arizona, being also a portion of Section 7, Township 13 South, Range 13 East, Gila and Salt River Meridian, Pima County, Arizona, being more particularly described as follows: Commencing at the Northeast corner of said Section 7, being the centerline of Orange Grove Road, per said Book 26, Page 73 of Maps and Plats, marked by a brass cap in casting, from which a point on the centerline of said Orange Grove Road, marked by a brass cap marked PCDOT CL ROW, lies South 880-58'-34" West, 848.74 feet distant; thence, along the said centerline, South 880-58'-34" West, 101.70 feet; thence, South 010-01'-26" East, 75.00 feet to the point at beginning, being a point on the South Right-of-Way of said Orange Grove Road, and the beginning of a 25.00 foot radius curve, concave Southwesterly, whose radius point lies South 010-01'-26" East, 25.00 feet distant; "-'# thence, Southeasterly along said curve, through a central angle of 900-57'-48", for an arc length of 39.69 feet to a point on the Westerly Right-of-Way of River Road, being 75.00 feet West of the East line of said Section 7; thence, along said Westerly Right-of-Way, and parallel with the East line of said Section 7, South 000-03'-39" East, 31.42 feet to the beginning of a non-tangent, 50.00 foot radius curve, concave Southwesterly, whose radius point lies South 890-56'-21" West, 50.00 feet distant; thence, Northwesterly along said curve, through a central angle of 900-57'-48", for an arc length of 79.38 feet to a point 6.00 teet South at the said South Right-at-Way of Orange Grove Road; thence, parallel with the centerline at said Orange Grove Road South 880-58'-34" West, 122.88 feet to a point on the West line of that parcel described at said Docket 9137, Page 101; thence, along said West line North 010-01'-26" West, 1.99 feet to the beginning at a 30.00 foot radius curve, concave Easterly, whose radius point lies North 880-58'-34" East, 30.00 feet distant; thence, Northerly along said curve, through a central angle at 070-41'-17", tor an arc length at 4.03 feet to a point on the said South Right-at-Way at Orange Grove Road; Page 1 at 3 ROW #7 E:\040 1 \OO\ROW\legals\sht83\row7 .DOC 5/17/2005 thence, North 880-58'-34" East, 148.13 feet to the point of beginning, containing approximately 1,461 square feet. The Basis of Bearing is the South line of the Southwest Quarter of Section 5, Township 13 South, Range 13 East, Gila and Salt River Meridian, Pima County, Arizona, being South 890-46'-38" East as recorded at Book 33, Page 62, of Records of Surveys in Pima County. Page 2 of 3 ROW #7 . " E:\040 I \OO\ROW\legals\sht83\row7 .DOC 511712005 I ,- I I I I I L ORANGE GFt N SCALE, r. 40' NO. U L2 L3 L4 BEARING S 00"03'39' E S 88"58'34" W N orOf26' W N 88"58'34" E STANCE 31.42' 122.88' 1.99' I48J3' EXHIBIT B Exhibit showing the Right-of-Way A Portion of Section 7, Township Gila and Salt River Meridian from c Tax Parcel No. 101-05-035E '" " ,.; ~ o '" o is ;;; ~ o ~ o 5? ~ o ,- Q; CURIE CI C2 CJ CUFfolE OAT A DELTA LENGTH 9(157'48" 39fJ9' 9(157'48" 79.38' ar4n7. 4DJ' I I- I I I I I I fP. fP. ~ TANGENT 25.42' 5085' 2D2' ROAD o <( o ~ ~ W > ~ BP WEST COAST PROOOCTS LLC IOI-05-D35E OKT. 9137. PN;E 101 GROSS AREA. 41J27 SF ROW AREA .'.46, SF NET AREA . 39.666 SF EXISTING RIGHT -OF -WAY RADIUS 25lXl 50lXY 30lXY ~;'J ,- , : I I I I I I~-F ~ Acquisition 13 South, Range 13 East, BP West Coast Products LLC Use or alteration of the inforlootion in this instrument for other thon the spec i f i c purpose for wh i ch it was intended and for other than the client for whom it was prepared is forbidden unless expressly permitted in .....iting in advance by R.S. ENGINEERING INCORPORATED. and R.S. ENGINEERING INCORPORATED shall hove no liability to any use of this information without their .....itten consent. <D RS ENGINEERING R S ENGINEERING CONSULTING ENGINEERS TOWN OF MARANA DEPARTMENT OF PUBLIC WORKS THORNYDALE ROAD IMPROVEMENT ORANGE GROVE TO COO WASH 2445 NORTH TUCSON BOULEVARD. TUCSON. ARIIONA 85716 ltlRS ENGINEERING (SIal 791-3933.. FAX: ISlal 79'-9.05 PN;E 3 OF J ROW -7