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