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HomeMy WebLinkAbout0545.092; ~ , .. '" , . -' .............. . 15 December 10, 1992 THE HO~ORABLE CIT~ CO~NCIL PALO AVI'O ( CALIFOR..~IA :lQ.RHE'R BAY!.ANPS ITT 3IT? EASEMEl-TT AND II1J'RQY..t.M:ENT PURCHASE F:'.ROM XFS 'WOnD COMXONIG:l\'II_QNS r INC. Members of the Council: Report in Brie( This report requests Council direction as to whether to autho~ize City staff to negotiate an Agreement for Purchase and Sale wherein the City would purchase a 36.55 acre easement j commonly known as the ITT site~ from KF'S World Communications, InC4 (KFS). Staff will return to council for review and approval of the Agreement if council directs that the purchase sho~ld go forward. »:_~ekground In CMR:J55:7. dated June 23, 19JI, then City Mar,ager George Sipel presented to Council and Council approved a proposal to purchase 83 acres of marsh land from ITT World ComIt1unicatic-ns (IT'r-j for $1,300,COO~ The proposal also included the donation by ITT of an additional 69 acres of n',a~5h land; of which ::36.55 acres was reserved as an easement for ITT use. Tte 159 acres of acquired and dcnated land fronts on East Bayshore Road O!"l its southwesterly edge, Matadero Creek on the southeast ar,d the City's munir:ipal refuse disposal area on its ncrttleaster ly border (see attached Exhibit A). The majorit:r-of the property 'Jas recently named the Emily Renzel Wetlands. When ITT sold the property to the City, it retained an ease:m~nt for continued communication purposes on )6~55 acres in the middle of the Emily nenzel Wetlands. The easement drea houses a marine radio telegraph and telex cc~munication facility. This facility is one CMR,545:92 .- o of twalve such f<lei 1 itie.s nationwide. function is to provide cOrPmunication particular facility also ha~ historical December 7, 1941, -.... arning pea.:-l Harbor tl:ans1I\itted fr01!\ this site. The facility's primary to ships at sea. This interest: the message on of a possible atta~k. ~as 'The facility has been un import.ant link for shippin-J throughout its 70 year history. In 1977, the Federal Communications co,~ission (FCC) would not allo' .... its closure as it -.... as st.ill cOJ"1.s-iderec '" vital link in shipping cOUL~unication. When the original purchase of the 83 acres of ~arsh land was made in 1977, ITT and the City thought it ';lias just a mat"ter of tir.1e before satellite communication ..,ould make this facility obsolete. Because of that understanding the city and ITT agreed to an open-ended ei'\sernent. It \lias the full intent of ITT, onc;e the fa'7:ility Ijj'as declare.d obsolete and no longer FCC-required, to vacate this easement and donate the improvements to the City, after removal of any reusable equipl!ient~ Recent advances iT'. telecomnH .. mi~atio:"l, hO\olever, could make th is facility even more po,.;crful, advancing far be.yond satellite communications capabilities~ If modernized 'Witt. advanced communi­ cations, the o-..mer est imates the facility would remain in its p~esent locatiC'ln for at least another t;,.lenty years. The power output would increase to as much as five times its current output I additional antennas \liould need to be installed and there would be substantially more traffic on the private roz.d that crosses the bicycle trail leading to the facility~ There is one other motivating factor ir. recommending tr.e easement be purchased. The newly constructed seasonal pond has greatly ~levated the water table in and around the J6~55 acres. The owner is already on record as noting that any increase in the water table adds to the cost of installation of any new communication facili­ ties and makes it very difficult to work in and around the facility and acce~s road leading to it. The owner has indicated that since the City project caused the problem r t~e City nay be responsible for those additional costs. KFS currently owns the ITT easement. Ken Jor,es r the o'o.lner of KFS, has approached the City "II.'ith a proposal to relocate this facility to another location outside the Bay Area for $550,000. Mr. Jones has acknowledged the payment is not based on the value of the easement but is in fact based on ""hat he would need to purchase and remodel the facility at the new locatiorl. He has had preliminary discussions with FCC and they ~il1 not allow the facility to be closed but they appear ·w'1.11ing to alloWi t.he facility to be relocated. CMR:545:92 2 ,-. • --.~ The Federal Fish and Wildlife Agency is currently acquiring land throughout the Bay Area. B,ased on tr.e valuE of the land tr.e~' are acquiring, they !-.a·~·e 5u99'est.ej to sta.ff the easement value of this 36.55 acre parcel would be about $J50,OOO. If the easement val~e is $350,000, then in order to justify the $S50,OQO price required by KFS, the value of the improver:~ents ...... ould need to be about $2:00,000 (10,000 squ<!re feet at $20 per square foot) ~ Staff's preliminari'~ investigation of the improve-rnents WQuid justify at least the $20 per square foot value. Staff's investigation was preliminary hO'.l.ie'Je!', and both a termite and Level One hazar-dous materi&ls investigation should be undertaken prior to execution of a Purchase of Sale Agreement~ p_ossib18 uses of. Faeility There are two mai!1 buildings on the site that contain about 10.000 square feet. The larger of the t .. 'o has no bear ing ..... 05 Ii sand curr~ntly houses each of the po· .. 'er \.,;ni ts for the t.ransmitters in a large open roo:rn with a high ceiling. A hoist to 1 ift heavy equipment runs through the center of this buiJdinq~ The smaller of the two buildings is cl.lrrently used for storage. It is a well constructed 'Wooden structure 'With a normal ceiling hei9ht~ There is only one sIr.all re.stroo'll1 (locateQ in the larger bui lding) for the entire site. The facility require:; a great deal of electrical power~ It has its own power station with backup capabilities. The Baylands bicycle trail skirts the edge of the Emily Renzel Wetlands. Potential uses for the facility include a youth hostel, a park ranger headquarters and an interpretive center. The major problem of any proposed use of the facility is the fact that it is in the middle of marsh 'Wetlands r so any proposed uses 'Would need to take into account the effect on protected vegetation and animal life, as .,ell as meet current flood control star,dards~ The City has been presented '.,'ith an opportunity to remove the communications equipment and increase the size of the Emi ly Rer.zel Wetlands park dedication at a cost of $550,000. If Council is in agreement with the proposal at the purchase price requested by KFS, then staff recommends that Council approve in concept the purchase ot the 36.55 acre easement from KFS for $550,000, subject to FCC approval; and direct staff t.o negotiate an agreement for purchase and sale. Staff ~ould obtain a Level one soils investigation and a termite inspectioTI prior to returning to counci 1 'With a Budget Alnendrnent Ordinance for review and approval. CMR:545:92 3 • ! " , ~-.-~~;:;;:::~; . j'\' .-" Respectfully submitte~6 cc: KFS World Communication I I~c. Related om's: CMR:355:7 CMR:409:92 AttHnment: Exhibit A c:MR:545:92 4 . ,-"" -"/ "" ... ~ ;:: x w " ~ : ! • ! N J1 ~ ;, ~ , .. • • : III 'I " j • ~ • "! ~ • J • • .. ~ ~ '" ) ;:. • < ;--.. :;; , :i ~ • ..., ...