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HomeMy Public PortalAbout02 February 24, 1997 Property Developmentd >37s"7 RIVERSIDE COUNTY TRANSPORTATION COMIVIISSION PROPERTY DEVELOPMENT COMMITTEE MEETING (COMMISSIONERS JOHN TAVAGLIONE, TOM MULLEN, JUDY NIEBURGER) MONDAY, FEBRUARY 24, 1997 2:00 P.M. RIVERSIDE COUNTY TRANSPORTATION COMMISSION 3560 UNIVERSITY AVENUE, STE. 100 RIVERSIDE, CALIFORNIA REVISED AGENDA 1. CALL TO ORDER 2. PUBLIC COMMENTS 3. APPROVAL OF MINUTES - OCTOBER 30, 1996 4. E & Y DRAFT REPORT ON FERGUSON AND PIERCE PROPERTIES Overview: This item is presented for review and guidance on whether to proceed with the study to hold, sell, or jointly develop both properties listed above. 5. POLICY DISCUSSION REGARDING OUTDOOR ADVERTISING ON RCTC PROPERTIES AND KUNZ REQUEST FOR ADDITIONAL BILLBOARD SITES Overview: This item is presented for review and discussion of a policy for additional advertising sites. 6. OTHER BUSINESS 7. ADJOURNMENT MINUTES OF OCTOBER 30, 1996, MEETING RIVERSIDE COUNTY TRANSPORTATION COMMIISSION PROPERTY DEVELOPMENT COMMITTEE MEETING MINUTES Wednesday, October 30, 1996, 2:00 P.M. Riverside County Transportation Commission 3560 University Avenue, Suite 100 Riverside, CA 92501 (909) 787-7141 Members Present: Others Present: 1. CALL TO ORDER Commissioner Tom Mullen Commissioner Judy Nieburger Commissioner John Tavaglione Claudia Chase, RCTC Staff Steve DeBaun, Best, Best & Krieger Jane Dobberpuhl, RCTC Staff Dean Martin, RCTC Staff Jack Reagan, RCTC Executive Director Chair John Tavaglione called the meeting of the Property Development Committee to order at 2:11 p.m. at the Riverside County Transportation Commission Office, 3560 University Avenue, Suite 100, Riverside, California 92501. 2. PUBLIC COMMENTS There were no public comments. 3. APPROVAL OF MINUTES - AUGUST 2, 1996 M/S/C (Nieburger/Mullen) to approve the minutes of the August 2, 1996, Property Development Committee Meeting as submitted. 4. LICENSE AGREEMENT WITH TRANSPORTATION DEPARTMENT FOR STORM DRAIN FACILITY OUTLET Claudia Chase said this item relates to a property in Highgrove that is adjacent to the property RCTC bought for the proposed Highgrove Station. The County Property Development Committee Minutes October 30, 1996 Page 2 of Riverside Transportation Department would like to have the outlet for their storm drain located on the RCTC property. The County will provide maintenance. They requested that RCTC resolve this issue as soon as possible. Bechtel engineers have reviewed the request and see no problems. Staff has worked with legal counsel and drafted a license agreement for this purpose. Jack Reagan asked where the drainage water went and Commissioner Tom Mullen responded that according to a County report from Flood Control (with input from Edison and the City), the drainage will naturally lead into the Santa Ana River. ATSF tracks will be affected, but not tracks located on the San Jacinto line. M/S/C (Mullen/Nieburger) to recommend the Commission approve the license agreement with the Riverside County Transportation for a Storm Drain Facility Outlet. 5. ALPHA/OWENS-CORNING REQUEST FOR LEASE AGREEMENT Claudia Chase said Albert A. Webb Associates have been working with Burlington Northern Santa Fe in developing a spur (and a switch) at 18080 Harvill Avenue in Perris (resulting from plant expansion). There was an air quality issue but it was worked out. M/S/C (Mullen/Nieburger) to approve staff to continue to work with Albert A. Webb Associates to develop a lease agreement for this project. 6. CONTRACT FOR OPEN AIR MARKET DURING WEEKENDS AT LA SIERRA METROLINK STATION Jack Reagan reported that a meeting was held with Art Pick, Berhanou Teklehaimanot, Alex Clifford, and Dr. Sal Rotella (of RCC since RCTC leases the land from them) to discuss this proposal. Such an arrangement would require a three -party agreement and legal counsel will prepare a draft agreement and incorporate items cited in the Executive Director's memo to the Property Committee [dated October 30, 1996, and attached as Agenda Item 6]. Commissioner Judy Nieburger said her major concern was keeping the public, especially children, away from the tracks. She asked about who would be responsible for portable toilets and trash removal and Jack Reagan said the lessee would be responsible for barricades, as well as manned security (in addition to the automated security system at the station). The lessee would also be responsible for any damage to the facility, portable toilets, and trash removal. Property Development Committee Minutes October 30, 1996 Page 3 Dean Martin drew attention to Item 6 of Jack's memo stating the reference to "net proceeds" will be changed to read "proceeds." Based upon the City's past experiences, Commissioner Mullen said a fee should be established up front. Claudia Chase stated that she will meet with City staff to discuss this matter and solicit input on how the City has coordinated these markets in the past. As a courtesy, it was a consensus of opinion that Councilmember Alex Clifford, and possibly Councilmember Terri Thompson, should meet with the Gallerria/Tyler merchants/management to advise them of this proposal. In response to Judy Nieburger's question regarding the lease period, Jack Reagan said the lease period could be one weekend day, two weekend days, every weekend, or only one, etc. Claudia Chase added the market must not conflict with the train schedules. M/S/C (Mullen/Nieburger) to approve legal counsel's preparation of a three -party agreement for an open air market' during weekends at the La Sierra Metrolink Station as set forth in the Executive Director's memorandum, striking the word "net" in Item 6" and adding Item 7 to include provision of portable toilets and collection and removal of trash. 7. MODEL LICENSE AGREEMENT FOR BILLBOARDS Claudia Chase said this license agreement specifies the term of a billboard. Steve DeBaun said all of RCTC's standard license agreements exist until canceled, with a 30-day notice clause. The proposed model license agreement covers a specific period and a billboard company would have notice up front that the contract is for .a specific period. The proposed license agreement would also have the 30-day notice provision. Jack Reagan saidthis action is being proposed to minimize possible legal exposure (should a lessee claim amortization of the value if an agreement needs to be canceled) and for RCTC to better manage its assets. For example, if a sign is located where a spur must be placed, RCTC needs to be able to take action immediately. The lessee must know they are taking a risk based upon the nature of RCTC's possible need for the property, and removal or relocation for "cause" should be without compensation. Steve DeBaun said that by including a fixed term in the agreement up front, the lessee knows whether the term of their agreement is for one year, two years, etc., so they can never argue that they have expectation that their investment 1 Subsequent to the Property Development Committee Meeting further research revealed that due to current zoning, the open air market, three -party agreement at La Sierra has been brought to a halt. Property Development Committee Minutes October 30, 1996 Page 4 could be amortized over a longer period of time. He continued that the amortization period would be clearly stated in the agreement, i.e., two years maximum, and in addition, RCTC can terminate it with a 30-days notice. Jack Reagan said RCTC has an agreement for 15 signs with Adams. If individual site -specific agreements were prepared, it would be much easier to work with. Steve DeBaun added that it would be a little bit easier to defend any court challenge if one is able to show that the lessee knew right up front at the time of entering into the agreement that it was for a set period of time and the lessee cannot claim any additional amortization. Jack Reagan suggested that present lease holder(s) be notified and informed that RCTC is going to terminate the present agreement but is willing to execute separate agreements for the signs for the same period with the 30-day cancellation provision. M/S/C (Nieburger/Mullen) to recommend the Commission adopt the model license agreement for billboards with a one-year term and a 30- day cancellation notice. 8. OUTDOOR ADVERTISING At the commencement of the meeting, Claudia Chase distributed copies of the following: (1) RCTC memo dated May 3, 1989 (Agenda Item No. 41 dated May 3, 1989); and, (2) Letter dated October 30, 1996, from Kunz Outdoor Advertising expressing an interest in six sign locations. Claudia Chase informed the Committee that at the present time, RCTC only has a stretch along the 1-215, but expects additional sites north of Van Buren Avenue. Referring to the map attached to Agenda Item 8, she pointed out that the sites marked in red are Adams and the sites marked in blue are sites requested by Kunz Outdoor Advertising. Several years ago, RCTC requested Adams to stop construction on their outdoor signs because RCTC did not want as many as 30 signs which AT&SF originally agreed to allow Adams to construct. Therefore, Adams agreed to only 15 sites. In the meantime, Kunz Outdoor Advertising has approached RCTC requesting to put signs in areas were Adams was asked not to build. She is, therefore, requesting direction from the Property Development Committee. Jack Reagan said the last time this issue came before the full Commission was on May 3, 1989, and the political atmosphere was against signs at that time. When RCTC acquired the property in 1993, he met with then Supervisor Norton Younglove to get his input (since the property was in his district). Supervisor Younglove suggested that staff meet with Adams to see if the agreements could be modified (as they exist today). The issue, however, did not go before the full Commission. Property Development Committee Minutes October 30, 1996 Page 5 Referring to the attached map, Commissioner Nieburger drew attention to the signs approved for Adams. She said Adams put up 15 signs but now only have 13 because they were removed after the realignment of the freeway in that area. Judy said she had accompanied Mr. Flanagan (of Kunz Outdoor Advertising) to inspect the locations in question. He had marked them and said he did not want the locations which had been approved for Adams. Because some signs were only 20-40 feet away from the Adams' locations, she did not feel comfortable with that and, therefore, advised him. Claudia Chase noted that there is a requirement that the signs be 500 feet apart. Commissioner Nieburger said she did not support any action at this time. If RCTC takes the approach of having new, separate agreements, the present lessee would waive any rights they had under their existing agreement, and RCTC's legal exposure would be minimized. Jack Reagan said another reason for wanting separate agreements is the recent experience regarding access (Cal Truss) which may occur again and RCTC should be prepared. Based upon that experience, it would be much easier to have a separate agreement for each location. Commissioner Mullen suggested this item be taken off calendar at this time and that staff and legal counsel move forward with the new agreements; and, then return to this item. It was the consensus of opinion that RCTC immediately provide a 30-day notice of cancellation of all existing agreements and advise lessees that RCTC is prepared to approve separate agreements covering the existing locations (such actions to be concurrent) all to be done within 30 days (and after Commission approval). After discussion, the Committee determined that staff should respond to the letter from Kunz Outdoor Advertising (dated October 30, 1996) to advise them that the matter is being submitted to the Commission for approval, and no action can be taken at this time. 9. ADJOURNMENT :jmd There being no further business to come before the Property Development Committee, the meeting was adjourned at 3:05 p.m. Respectfully submitted, Claudia Chase Property Agent