Title
Acquisition of Real Property for South Central Extension/Downtown Hub (SCE/DH) and Northwest Phase II (NWEII) Light Rail Extension Projects
Description
This report requests the Transportation, Infrastructure and Innovation Subcommittee recommend City Council approval for the acquisition of real property for the South Central Extension/Downtown Hub (SCE/DH) Project and Northwest Phase II Light Rail Extension (NWEII) Project (collectively, Projects). The budget for real estate acquisition, including right-of-way, land, and restoration of existing or new improvements, is included in each Project’s budget. The estimated acquisition costs are approximately $66 million for the SCE/DH Project and approximately $30 million for the NWEII Project.
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
As with previous light rail projects, the City requires additional land to accommodate project construction of public improvements including rail, stations, curbing, gutter, sidewalks, and landscape for light rail extensions. The Phoenix City Charter requires submission of all real property acquisitions to the City Council for approval by ordinance. The City acquires property through (1) donation, (2) purchase within the City's appraised value, (3) purchase at an amount settled by mediation (and determined by the City Manager or designee to be reasonable under the circumstances), or (4) eminent domain. The City also provides relocation assistance and benefits as federally mandated to those who qualify.
The City’s Real Estate Division has considerable experience in the land acquisition process and will acquire all real property necessary for implementation of the Projects within project schedules and budget constraints, in strict compliance with any applicable laws, regulations, and guidelines for real property acquisition. Particularly, the City’s adherence to the federal Uniform Relocation and Real Property Acquisition Act (Uniform Act) may affect schedule and budget constraints because of individuals’ property rights. The Uniform Act requires that property owners be treated fairly and consistently, and without coercion. Property owners are given 30 days to consider an offer, and the Uniform Act requires that property owners and displaced tenants are provided a minimum 90-day notice to vacate.
To ensure compliance with the Uniform Act and Federal Transit Administration (FTA) Circular 5010.1E (“Award Management Requirements”), the property acquisition process takes an average 12 to 18 months to complete for each parcel. The City further recognizes that the acquisition process is complex and difficult for many property owners and tenants, so it is important to allow a reasonable time to work with those impacted while balancing the needs of each Project’s schedule. The City will give utmost consideration to the needs of property owners and tenants directly impacted by the Projects. The City makes every effort to negotiate or mediate a settlement before initiating a condemnation filing. Based on the number of acquisitions for the Projects combined with the construction schedule, the property acquisition process should commence soon.
South Central Extension/Downtown Hub
Table 1 in Attachment A provides a summary of land needed for the SCE/DH Project. Acquisition is currently scheduled from October 2019 through October 2021 based on Valley Metro’s project schedule. While preliminary acquisition activities have begun (such as title work and planning), an ordinance authorizing acquisition, FTA approval of the environmental evaluation, and final legal descriptions are required before Real Estate staff and consultants begin engaging with property owners.
The total land necessary for acquisition on the SCE/DH Project is less than 2 percent of the total square footage of the land impacted. An additional 2.8 percent of the impacted land is required for temporary construction easements (TCEs). Temporary construction easements are needed to facilitate construction, with the land reverting to the property owner upon completion of construction.
Based on the current design, staff estimates that 414 Maricopa County Assessor Parcel Numbers (APNs) will be impacted by this Project. For purposes of acquisition, parcels are combined based on contiguity, ownership, and use. After combining APNs, staff estimates that there will be a total of 250 acquisitions from private property owners for the SCE/DH Project. The City also evaluates impacts using federal criteria to determine the complexity of the acquisition, which is then classified as either “simplistic” or “moderate to complex.” “Simplistic” generally involves acquisition of narrow land strips of land or TCEs alone. “Moderate to complex” typically includes the acquisition of whole parcels or partial acquisitions that impact real property improvements such as walls, signs, parking lots improvements, and/or buildings. Staff estimates that 42 percent of this Project's acquisitions will be "simplistic," while 58 percent will be "moderate to complex."
Northwest Phase II Light Rail Extension
Table 2 in Attachment A provides a summary of land needed for the NWEII Project. Acquisition is currently scheduled from October 2019 through October 2021 based on Valley Metro’s project schedule. While preliminary acquisition activities have begun (such as title work and planning), an ordinance authorizing acquisition and final legal descriptions are required before Real Estate staff and consultants begin engaging with property owners.
The total land necessary for acquisition on the NWEII Project is less than 3 percent of the total square footage of the land impacted. An additional 0.4 percent of the impacted land is required for temporary construction easements (TCEs).
Based on the current design, staff estimates 33 APNs will be impacted by this Project. For purposes of acquisition, parcels are combined based on contiguity, ownership, and use to determine the number of acquisitions. After combining APNs, staff estimates that there will be a total of 29 acquisitions from private property owners for the NWEII Project. The City also evaluates impacts using federal criteria to determine the complexity of the acquisition, which is then classified as either “simplistic” or “moderate to complex.” “Simplistic” generally involves acquisitions of narrow land strips or TCEs alone. “Moderate to complex” typically includes acquisitions of whole parcels or partial acquisitions that impact real property improvements such as walls, signs, parking lots improvements, and/or buildings. Staff estimates that 10 percent of this Project's acquisitions will be "simplistic," while 90 percent will be "moderate to complex."
Exclusions
The acquisition summaries above do not include acquisition for third-party utilities, as those needs continue to be determined as each project’s design progresses and staff works with utility companies to make such determinations. It is not uncommon for the number of parcels and impacts to change slightly during final design and construction. Valley Metro will work with the City to update any changes during the acquisition process to acquire only what is needed for each Project. The budget for acquisition is a preliminary estimate. The City will update the budget periodically throughout the Projects as costs are incurred. A condensed project schedule may cause costs to increase.
Financial Impact
FTA and T2050 funds will be used for the Projects.
Concurrence/Previous Council Action
This item is scheduled to be heard by the Citizens Transportation Commission on Oct. 1, 2019.
Location
- See Attachment B for maps showing full and partial takes for both projects
- See Attachment C for a list of parcel APNs for both projects
Council Districts: 1, 3, 5, 7 and 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit and Finance departments.