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HomeMy WebLinkAbout19 KATHERINE SPUR LD 04-07-03AGENDA REPORT Agenda Item 19 Reviewed: City Manager Finance Director MEETING DATE: APRIL 7, 2003 TO: FROM: SUBJECT: WILLIAM A. HUSTON, CITY MANAGER COMMUNITY DEVELOPMENT DEPARTMENT STATUS REPORT OF THE KATHERINE SPUR LAND SUMMARY The Katherine Spur land is the abandoned railroad right-of-way located between the Tustin Meadows and Peppertree neighborhoods and the New Villa Valencia Mobile Home Park and Laurelwood neighborhood. This report summarizes the history and some of the issues related to the disposition of the Katherine Spur land. RECOMMENDATION That the City Council provide direction as deemed appropriate. FISCAL IMPACT No appropriation has been allocated for the Katherine Spur project. Depending upon the Council's decision, there will be varied associated costs depending on the course of action. BACKGROUND At the City Council meeting of March 3, 2003, Councilman Bone requested a status report on the area of land referred to as the Katherine Spur. The Katherine Spur is the abandoned railroad right-of-way located between the Tustin Meadows and Peppertree neighborhoods and the New Villa Valencia Mobile Home Park and Laurelwood neighborhood (Attachment 1). The following information provides the history and issues related to the Katherine Spur. The Katherine Spur was originally acquired from the Irvine Company in 1914 as an easement for railroad operations. The Katherine Spur is sixty (60) feet wide and contains four (4) easements: City Council Report April 7, 2003 Katherine Spur Page 2 1. A fifteen (15) foot wide flood control easement along the westerly edge; A ten (10) foot wide pipeline easement in favor of the San Diego Pipeline for the Department of Navy. This pipeline runs the entire length of the railroad right-of- way. This pipeline has been abandoned by the Department of Navy. The Department of Navy indicated in their letter dated November 28, 2001, to Dana Ogdon that the pipeline easement would be conveyed back to the Irvine Company when requested by the Irvine Company. The Department of Navy will not convey the off-base easement to the City of Tustin. A perpetual avigation easement in and through the air above the land in favor of Orange County for the Orange County Airport; and An easement for road purposes over the land included within Walnut Avenue and Sycamore Avenue. In 1984 the City was advised by the Atchison, Topeka and Santa Fe (ATSF) Railway Company that it intended to abandon the railroad spur (Katherine Spur) from the Edinger Avenue (formerly known as Moulton Parkway) main line northerly and easterly to the Irvine Company property on Jeffrey Road (Attachment 1). After the abandonment, the spur has been left unimproved and currently is owned and maintained by the Irvine Company. In the past, residents from Peppertree indicated their interest in acquiring the abandoned railroad right-of-way located between Tustin Meadows and Peppertree. This interest was pursued due to concerns related to the abandoned railroad right-of-way, which include overgrown weeds, vandalism, trash, burglaries, fires, gopher infestation, increase in the coyote population, etc. In response to the residents' request, several surveys have been conducted to consider possible use for the abandoned Katherine Spur. The responses were negative to any type of public thoroughfare, access, or commercial use. Past consensus was to have the Irvine Company deed the abandoned railroad right-of-way to the adjacent property residents at no cost. The Irvine Company, at a meeting with City staff in 1991, indicated a willingness to convey their portion of the right-of-way with no land costs to residents if there was no cost to the Company for any necessary subdivision or grant preparation. Recently, the Irvine Company confirmed this willingness in their letter dated September 17, 2001 (Attachment 2). In April 1991, a memo was drafted as a follow-up to the various meetings held by City staff. The memo described project alternatives, costs, liabilities, and constraints (Attachment 3). In general, there were seven (7) alternatives proposed at the time: City Council Report April 7, 2003 Katherine Spur Page 3 1. Equal distribution to adjoining property owners. 2. Distribute northerly thirty (30) feet to adjoining owners and obtain southerly thirty (30) feet (45 feet if it includes City storm drain) feet for City use. 3. Relocate jet fuel pipeline and equal distribution to adjoining property owners (This pipeline has been scoured and filled with slurry concrete, no relocation is necessary). 4. Private/Public Park. 5. Private tree farm. 6. Recreational vehicle parking lot. 7. Dedication as public/private street. The cost analysis was completed using 1991 dollars. The costs ranged from $10,000 to $1.3 million. This cost analysis would need to be updated if the Council wished to pursue a specific alternative. DISCUSSION Last year, residents of Peppertree once again contacted the City to pursue their interest in acquiring a portion of Katherine Spur. In response, the Irvine Company provided the City with a Preliminary Title Report which describes the underlying easements (Attachment 2). The Katherine Spur consists four (4) of major segments as follows: 1. Segment 1: That portion of the Katherine Spur between Tustin Meadows and Peppertree neighborhoods from Edinger Avenue to Sycamore Avenue 2. Segment 2: That portion of the Katherine Spur between Tustin Meadows and Peppertree neighborhoods from Sycamore Avenue to Walnut Avenue. 3. Segment 3: That portion of the Katherine Spur between Nelson Elementary School and Laurelwood neighborhood from Walnut Avenue to Mitchell Avenue. Segment4: That portion of the Katherine Spur between New Valencia Mobilehome Park and Laurelwood neighborhood from Mitchell Avenue to the Santa Ana Freeway (Interstate 5). Segment 1 (Between Tustin Meadows and Peppertree neighborhoods from Edinger Avenue to Sycamore Avenue). At the westerly side of the Katherine Spur, the City owns Lot "G" of Tract No. 6580 and Lot "A" of Tract No. 6537 in fee title. These lots vary in width from fifteen (15) feet at most locations to twenty-one (21) feet at some locations. These lots are for City Council Report April 7, 2003 Katherine Spur Page 4 storm drain purposes. In 1991, the City improved this storm drain easement from an open channel to an enclosed eight (8) foot concrete drainage conduit. The Public Works Department has expressed concern that the City needs to maintain and access the storm drains regularly. As mentioned above, residents from Peppertree indicated their interest in acquiring the abandoned railroad right-of-way located between Tustin Meadows and Peppertree. While some residents indicated their concerns for potential increase in property tax, cost for building new fences or walls, and costs for administration (titles, transfers, etc.) when the land is deeded to them, they indicated their willingness to share portions of the costs if they are minimal. The Peppertree neighborhood may be able to acquire portions of Katherine Spur; however adjoining residents at Tustin Meadows may not be able to do the same because of the required access and maintenance of the City's storm drain on the westerly side of the Katherine Spur. 2. Segment 2 (Between Tustin Meadows and Peppertree neighborhoods from Sycamore Avenue to Walnut Avenue) This segment is a continuation of the Katherine Spur separating the Tustin Meadows Neighborhood and Peppertree Development. The same situation exists in this segment. The Public Works Department requires access to the underlying storm drain along this segment. The Irvine Company owns the land at the intersections of the spur and Sycamore Avenue. Public acoess for street purposes is provided through an easement. A dedication of street right-of-way for street purposes would be appropriate should a subdivision map be proposed. 3. Segment 3 (Between Nelson Elementary School and Laurelwood neighborhood from Walnut Avenue to Mitchell Avenue). Similarly as Segment 2, the Irvine Company also owns the land at the intersections of the spur and Walnut Avenue. Public access for street purposes is provided through an easement. A dedication of street right-of-way for street purposes would be appropriate should a subdivision map be proposed. 4. Segment 4 (Between New Valencia Mobilehome Park and Laurelwood neighborhood from Mitchell Avenue to the Santa Ana Freeway (Interstate 5)). The northerly portion of this segment is currently owned by the Laurelwood Homeowners and is utilized as Recreational Vehicle (RV) parking area. In 1989, the City of Tustin, the Irvine Company, Laurelwood Homeowners Association, City Council Report April 7, 2003 Katherine Spur Page 5 Other and the California Department of Transportation (Caltrans) worked together in a land swap of the Laurelwood RV parking area located at the north end of the Laurelwood development with a portion of the Katherine Spur to facilitate the 1-5 freeway widening project. The southerly portion of this segment is currently owned by the New Villa Valencia Mobilehome Estate. The City was informed recently by the New Villa Valencia Mobilehome Estate representative of their intent to expand the Mobilehome Park by incorporating the Katherine Spur land area. No specific issues and concerns are noted for this segment since the entire spurs are owned by private owners. Issues and Concerns Cost. Depending upon the Council's decision, there will be costs associated with completing map, survey, transfer, title, improvements, etc. These costs have not been allocated in the City's current budget. Zoning and General Plan consistency. The land is currently zoned Unclassified (U) and designated by the General Plan as Planned Community Residential. Depending upon Council's direction, there may be a need to change the zoning and/or the land use designation for the subject land. Avigation easement. The Title Report indicates a perpetual air or flight easement (avigation rights) in favor of the County of Orange. This easement is granted for use by aircraft from or to Orange County Airport. Prior to amendment to the City's General Plan, Zoning, and/or actions related to the easement, a notification to the Airport Land Use Commission and the County of Orange would be required. Storm Drain Access and Maintenance. The Public Works Department expressed their concern related to the access and maintenance of the storm drain. Due to the size of the underground conduit (8 feet wide diameter), access for maintenance or emergency repair to this storm drain would require a large area to accommodate heavy construction equipment. Therefore, unobstructed access would be necessary to facilitate access to the storm drain. The Public Works Department suggested that the spur be maintained as public use to ensure proper access to the City's storm drain. Associate Planner Elizabeth A. Bid'sack- ' Community Development Director City Council Repot[ April 7, 2003 Katherine Spur Page 6 Attachments: 1. Maps 2. Letter from the Irvine Company dated September 7, 2001 3. Draft Staff Memo dated April 25, 1991 S:\Cdd\CCREPORT~Katherine Spur (2).doc Attachment 1 Katherine Spur Maps Katherine Spur Tustin Meadows 15' Flood Control Easement Lot "G" Storm Drain Owned by TIC ~---~ Owned by Laurelwood Homeownem Owned by New Villa Valencia Mobile Estate Segment 1 Tustin Meadows Pepper Tree 9~ 15' Flood Control Easement Lot "G" Storm Drain Owned by TIC L-~ Owned by Laurelwood Homeownem ~ Owned by New Villa Valencia ~' ' ' ' !" Mobile Estate Segment 2 15' Flood Control Easement Lot "G" Storm Drain ~v'~ Owned by TIC ~, Owned by Laurelwood Homeowners Owned by New Villa Valencia Mobile Estate Segment 3 New Villa Valencia Mobilehome Park Laurelwood Development '15' FLood Control Easement Lot "G" Storm Drain Owned by TIC ~ Owned by Laurelwood Homeowners ~ Owned by New Villa Valencia ,,, !, ~ if Mobile Estate Segment 4 Attachment 2 Letter from the Irvine Company dated September 17, 2001 IRVINE COMMUNITY DEVELOPMENT COMPANY September 17, 2001 Ms. Justine Wilkom City of Tustin Community Development Department 300 Centennial Way Tustin, CA 92780 RE: Katherine Spur Railway Line Dear Justine: Enclosed please find the preliminary title report along with underlying documents pertaining to the above referenced property. I have also included a map showing all of the property you originally inquired about - highlighting the portion of the railway line still owned by The Irvine Company (covered by the enclosed title report) as well as the continuing portions owned by the Laurelwood HOA and Villa Valencia Mobile Home Park. As you know, The Irvine Company is willing to quitclaim this property "as is" to the City of Tustin. Once you have reviewed the title report please contact me to discuss how we may proceed. Sincerely, Sarah K. Chaffin Escrow Administrator /skc cc: Mary Westbrook (w/o enclosures) 550 Newport Center Drive, RO. Box 6370, Newport Beach, California 92658-6370 (949) 720-2000 · Fax (949) 720-2421 eo.~ no. ~o6s-t trey. ~o/1 v92) OR-2128279 Exhibit 3. to Preliminary Report TITLE OFFICER - MICHAEL C. WILLIAMS ,,, Preliminary Report First American Title Insurance Company Preliminary report OR-2128279 TITLE OFFICEP.- MICHAEL C. WILLIAMS First American Title Insurance Company 2 First American Way, Santa Aha, California 92707 (P.O. Box 267, Santa Aha, California 92702) (714) 800-3000 THE IRVINE COMPANY 550 NEWPORT CENTER DR. NEWPORT BEACH, CA 92660 ATTN: SARAH CHAFFIN YOUR NO. KATHERINE SPUR RAILWAY LINE IN RESPONSE TO THE ABOVE REFERENCED APPLICATION FOR A POLICY OF TITLE INSURANCE, THIS COMPANY HEREBY REPORTS THAT IT IS PREPARED TO ISSUE, OR CAUSE TO BE ISSUED, AS OF THE DATE HEREOF, A POLICY OR POLICIES OF TITLE INSURANCE DESCRIBING THE LAND AND THE ESTATE OR INTEREST THEREIN HEREINAFTER SET FORTH, INSURING AGAINST LOSS WHICH MAY BE SUSTAINED BY REASON OF ANY DEFECT, LIEN OR ENCUMBRANCE NOT SHOWN OR REFERRED TO AS AN EXCEPTION BELOW OR NOT EXCLUDED FROM COVERAGE PURSUANT TO THE PRINTED SCHEDULES, CONDITIONS AND STIPULATIONS OF THE POLICY FORMS THE PRINTED EXCEPTIONS AND EXCLUSIONS FROM THE COVERAGE OF SAID POLICY OR POLICIES ARE SET FORTH IN EXHIBIT A ATTACHED. COPIES OF TEE POLICY FORMS SHOULD BE REAIX THEY ARE AVAILABLE FROM THE OFFICE WHICH ISSUED THIS REPORT. THIS REPORT (AND ANY SUPPLEMENTS OR AMENDMENTS HERETO) IS ISSUED SOLELY FOR THE PURPOSE OF FACILITATING THE ISSUANCE OF A POLICY OF TITLE INSURANCE AND NO LIABILITY IS ASSUMED HEREBY. IF IT IS DESIRED THAT LIABILITY BE ASSUMED PRIOR TO THE ISSUANCE OF A POLICY OF TITLE INSURANCE, A BINDER OR COMMITMENT SHOULD BE REQUESTED. PLEASE READ THE EXCEPTIONS SHOWN OR REFERRED TO BELOW AND THE EXCEPTIONS AND EXCLUSIONS SET FORTH IN EXHIBIT A OF THIS REPORT CAREFULLY. THE EXCEPTIONS AND EXCLUSIONS ARE MEANT TO PROVIDE YOU WITH NOTICE OF MATTERS WHICH ARE NOT COVERED UNDER THE TERMS OF THE TITLE INSURANCE POLICY AND SHOULD BE CAREFULLY CONSIDERED. IT IS IMPORTANT TO NOTE THAT THIS PRELIMINARY REPORT IS NOT A WRITTEN REPRESENTATION AS TO THE CONDITION OF TITLE AND MAY NOT LIST ALL LIENS, DEFECTS, AND ENCUMBRANCES AFFECTING TITLE TO THE LAND. DATED AS OF SEPTEMBER 6, 2001 AT 7:30 AM. BY MICHAEL C. WILLIAMS. TITLE OFFICER DIRECT TELEPHONE NUMBER - 714-800-4641 FAX NUMBER - 714-800-4965 THE FORM OF POLICY OF TITLE INSURANCE CONTEMPLATED BY THIS REPORT IS: AMERICAN LAND TITLE ASSOCIATION OWNERS POLICY (STANDARD COVERAGE). - WITH REGIONAL EXCEPTIONS PAGEI OR-2128279 TITLE OFFICER -MlCHAEL C. WILLIAMS TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF tS VESTED IN: THE IRVINE COMPANY, A DELAWARE CORPORATION. THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS REPORT IS: A FEE. AT THE DATE HEREOF EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS AND EXCLUSIONS CONTAINED IN SAID POLICY FORM WOULD BE AS FOLLOWS: 1. TAXES, BONDS AND ASSESSMENTS NOT EXAMINED. 2. THE LIEN OF SUPPLEMENTAL TAXES ASSESSED PURSUANT TO CHAPTER 3.5 COMMENCiNG WITH SECTION 75 OF THE CALIFORNIA REVENUE AND TAXATION CODE. NOTE: ALTHOUGH THE ABOVE SUPPLEMENTAL TAXES MAY BE A LIEN, THE INSTALLMENTS THEREOF ARE NOT YET DUE OR PAYABLE. 3. THIS ITEM HAS BEEN INTENTIONALLY DELETED. 4. THIS ITEM HAS BEEN INTENTIONALLY DELETED. 5. THIS ITEM HAS BEEN INTENTIONALLY DELETED. 6. A PERPETUAL AVIGATION EASEMENT iN AND THROUGH THE AIR ABOVE THE HEREIN DESCRIBED AND OTHER LAND, AS CONVEYED TO THE COUNTY OF ORANGE BY THE IRVINE COMPANY, BY DEED RECORDED MARCH 17, 1964 IN BOOK 6965, PAGE 721 OF OFFICIAL RECORDS, AND THE TERMS AND CONDITIONS AS SET FORTH IN SAID DEED TO WHICH RECORD REFERENCE IS HEREBY MADE FOR ALL PARTICULARS. 7. THE EFFECT OF A MAP PURPORTING TO SHOW THE HEREIN DESCRIBED AND OTHER LAND RECORDED IN BOOK 88, PAGE 27 OF RECORD OF SURVEYS. 8. AN EASEMENT AS SET FORTH IN AN INSTRUMENT RECORDED JANUARY 27, 1969 IN BOOK 8857, PAGE 493 OF OFFICIAL RECORDS, iN FAVOR OF: THE CITY OF TUSTIN. FOR: FLOOD CONTROL AND INCIDENTAL PURPOSES. OVER: A PORTION OF THE LAND. 9. AN EASEMENT AS SET FORTH IN AN INSTRUMENT RECORDED APRIL 7, 1981 IN BOOK 140 l 1, PAGE 351 OF OFFICIAL RECORDS, IN FAVOR OF: SAN DIEGO PIPELINE COMPANY, A CALIFORNIA CORPORATION. FOR: PIPELINES AND INCIDENTAL PURPOSES. OVER: A PORTION OF THE LAND. 10. THIS ITEM HAS BEEN INTENTIONALLY DELETED. 11. THIS ITEM HAS BEEN INTENTIONALLY DELETED. I2. THIS ITEM HAS BEEN INTENTIONALLY DELETED. PAGE2 OR-2128279 TITLE OFFICER - MICHAEL C. WILLIAMS 13. THIS ITEM HAS BEEN INTENTIONALLY DELETED. 14. THIS ITEM HAS BEEN INTENTIONALLY DELETED. 15. AN EASEMENT FOR ROAD PURPOSES OVER THAT PORTION OF THE LAND INCLUDED WITHIN WALNUT AVENUE AND SYCAMORE AVENUE, AS DISCLOSED BY THE ASSESSOR'S PARCEL MAPS DEPICTING THE LAND. PAGE3 OR-2128279 TITLE OFFICER - MICHAEL C. WILLIAMS DESCRIPTION THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF ORANGE, CITY OF TUSTiN, AND IS DESCRIBED AS FOLLOWS: THAT PORTION OF LOTS 44, 53 AND 60 IN BLOCK 45 OF IRVINE COMPANY'S SUBDIVISION, AS SHOWN ON A MAP RECORDED IN BOOK 1, PAGE 88 OF MISCELLANEOUS RECORD MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA, INCLUDED WITH THE LAND DESCRIBED "FIRST" IN THE AGREEMENT BETWEEN THE IRVINE COMPANY AND THE ATCHISON, TOPEKA AND SANTA FE R-A. ILWAY COMPANY RECORDED AUGUST 29, 1914 IN BOOK 258, PAGE 383 OF DEEDS, RECORDS OF SAID ORANGE COUNTY, SAID PORTION BEING BOUNDED SOUTHWESTERLY BY THE NORTHEASTERLY LINE OF THE LAND DESCRIBED IN PARCEL NO. Fl0-102 OF THE DEED TO THE ORANGE COUNTY FLOOD CONTROL DISTRICT RECORDED NOVEMBER 19, 1963 IN BOOK 6808, PAGE 992 OF OFFICIAL RECORDS OF SAID ORANGE COUNTY, AND BOUNDED NORTHEASTERLY BY THE NORTHEASTERLY LINE OF SAID LOT 44. PAGE4 preimm,~ Repo,~ OR=2128279 TITLE OFFICER- MICHAEL C, WILLIAMS WARNING "THE MAP ATTACHED HERETO MAY OR MAY NOT BE A SURVEY OF THE LAND DEPICTED THEREON. YOU SHOULD NOT RELY UPON IT FOR ANY PUPA:)OSE OTHER THAN ORIENTATION TO THE GENERAL LOCATION OF THE PARCEL OR PARCELS DEPICTED, FIRST AMERICAN EXPRESSLY DISCLAIMS ANY LIABILITY FOR ALLEGED LOSS OR DAMAGE WHICH MAY RESULT FROM RELIANCE UPON THIS MAP". TB PLATS (CC&R'S, IF ANY) ENCLOSED. NOTE: WIRING INSTRUCTIONS FOR SUB-ESCROW DEPOSITS ARE AS FOLLOWS: FIRST AMERICAN TRUST COMPANY 421 N. MAIN STREET SANTA ANA, CA 92701 ACCOUNT # 15030 ACCOUNT NAME: CREDIT TO FIRST AMERICAN TITLE COMPANY OR-2128279 ABA #122241255 FIRST AMERICAN TITLE COMPANY TITLE OFFICER - MICHAEL C. WILLIAMS DISREGARD IF FIRST AMERICAN IS YOUR ESCROW SETTLEMENT AGENT -- CONTACT ESCROW OFFICER FOR WIRING INSTRUCTIONS PAGE 5 Pret~min~ ~po~ OR=2128279 TITLE OFFICER- MICHAEL C. WILLIAMS PRIVACY POLICY WE ARE COMMITTED TO SAFEGUARDING CUSTOMER INFORMATION IN ORDER TO BETTER SERVE YOUR NEEDS NOW AND IN THE FUTURE, WE MAY ASK YOU TO PROVIDE US WITH CERTAIN INFORMATION. WE UNDERSTAND THAT YOU MAY BE CONCERNED ABOUT WHAT WE WILL DO WITH SUCH INFORMATION-PARTICULARLY ANY PERSONAL OR FINANCIAL INFORMATION. WE AGREE THAT YOU HAVE A RIGHT TO KNOW HOW WE WILL UTILIZE THE PERSONAL INFORMATION YOU PROVIDE TO US, THEREFORE, TOGETHER WITH OUR PARENT COMPANY, THE FIRST AMERICAN CORPORATION, WE HAVE ADOPTED THIS PRIVACY POLICY TO GOVERN THE USE AND HANDLING OF YOUR PERSONAL INFORMATION. APPLICABILITY THIS PRIVACY POLK?Y GOVERNS OUR USE TO THE INFORMATION WHICH YOU PROVIDE TO US. IT DOES NOT GOVERN THE MANNER IN WHICH WE MAY USE INFORMATION WE HAVE OBTAINED FROM ANY OTHER SOURCE, SUCH AS INFORMATION OBTAINED FROM A PUBLIC RECORD OR FROM ANOTHER PERSON OR ENTITY. FIRST AMERICAN HAS ALSO ADOPTED BROADER GUIDELINES THAT GOVERN OUR USE OF PERSONAL INFORMATION REGARDLESS OF iTS SOURCE. FIRST AMERICAN CALLS THESE GUIDELINES ITS FAIR INFORMATION VALUES, A COPY OF WHICH CAN BE FOUND ON OUR WEBSITE AT WWW.FIRSTAM ,COM. TYPES OF INFORMATION DEPENDING UPON WHICH OF OUR SERVICES YOU ARE UTILIZING, THE TYPES OF NONPUBLIC PERSONAL INFORMATION THAT WE MAY COLLECT INCLUDE: [NFORMATION WE RECEIVED FROM YOU ON APPLICATIONS, FORMS AND IN OTHER COMMUNICATIONS TO US, WHETHER IN WRITING~ IN PERSON, BY TELEPHONE OR ANY OTHER MEANS; INFORMATION ABOUT YOUR TRANSACTIONS WITH US, OUR AFFILIATED COMPANIES. OR OTHERS; AND INFORMATION WE RECEIVE FROM A CONSUMER REPORTING AGENCY. USE OF INFORMATION WE REQUEST INFORMATION FROM YOU FOR OUR OWN LEGITIMATE BUSINESS PURPOSES AND NOT FOR THE BENEFIT OF ANY NONAFFILIATED PARTY. THEREFORE, WE WILL NOT RELEASE YOUR INFORMATION TO NONAFFILIATED PARTlES EXCEPT: (I) AS NECESSARY FOR US TO PROVIDE THE PRODUCT OR SERVlCE YOU HAVE REQUESTED OF US; OR (2) AS PERMITTED BY LAW. WE MAY, HOWEVER, STORE SUCH INFORMATION INDEFINITELY, INCLUDING THE PERIOD AFTER WHICH ANY CUSTOMER RELATIONSHIP HAS CEASED. SUCH INFORMATION MAY BE USED FOR ANY INTERNAL PURPOSE, SUCH AS QUALITY CONTROL EFFORTS OR CUSTOMER ANALYSIS. WE MAY ALSO PROVIDE ALL OF THE TYPES OF NONPUBLIC PERSONAL INFORMATION LISTED ABOVE TO ONE OR MORE OF OUR AFFILIATED COMPANIES. SUCH AFFILIATED COMPANIES INCLUDE FINANCIAL SERVICE PROVIDERS, SUCH AS TITLE INSURERS, PROPERTY AND CASUALTY INSURERS, AND TRUST AND INVESTMENT ADVISORY COMPANIES, OR COMPANIES INVOLVED IN REAL ESTATE SERVICES. SUCH AS APPRAISAL COMPANIES, HOME WARRANTY COMPANIES, AND ESCROW COMPANIES FURTHERMORE, WE MAY ALSO PROVIDE ALL THE INFORMATION WE COLLECT, AS DESCRIBED ABOVE, TO COMPANIES THAT PERFORM MARKETING SERVICES ON OUR BEHALF, ON BEHALF OF OUR AFFILIATED COMPANIES, OR TO OTHER FINANCIAL INSTITUTIONS WlTH WHOM WE OR OUR AFFILIATED COMPANIES HAVE JOINT MARKETING AGREEMENTS. FORMER CUSTOMERS EVEN IF YOU ARE NO LONGER OUR CUSTOMER, OUR PRIVACY POLICY WILL CONTINUE TO APPLY TO YOU. CONFIDENTIALITY AND SECURITY WE WILL USE OUR BEST EFFORTS TO ENSURE THAT NO UNAUTHORIZED PARTIES HAVE ACCESS TO ANY OF YOUR INFORMATION. WE RESTRICT ACCESS TO NONPUBLIC PERSONAL INFORMATION ABOUT YOU TO THOSE INDIVIDUALS AND ENTITLES WHO NEED TO KNOW THAT INFORMATION TO PROVIDE PRODUCTS OR SERVICES TO YOU. WE WILk USE OUR BEST EFFORTS TO TRAIN AND OVERSEE OUR EMPLOYEES AND AGENTS TO ENSURE THAT YOUR INFORMATION WILL BE HANDLED RESPONSIBLY AND IN ACCORDANCE WITH THIS PRIVACY POLICY AND FIRST AMERICAN'S FAIR INFORMATION VALUES. WE CURRENTLY MAINTAIN PHYSICAL~ ELECTRONIC, AND PROCEDURAL SAFEGUARDS THAT COMPLY WITH FEDERAL REGULATIONS TO GUARD YOUR NONPUBLIC PERSONAL INFORMATION, PAGE 6 Prelimm. R~po. OR-2128279 TITLE OFFICER - MICHAEL C, WILLIAMS NOTICE SECTION 12413.1 OF THE CALIFORNIA INSURANCE CODE, EFFECTIVE JANUARY 1, 19t30. REQUIRES THAT ANY TITLE INSURANCE COMPANY. UNDERWRITTEN TITLE COMPANY. OR CONTROLLED ESCROW COMPANY HANDLING FUNDS tN AN ESCROW OR SUB-ESCROW CAPACITY, WAIT A SPECIFIED NUMBER OF DAYS AFTER DEPOSITING FUNDS. BEFORE RECORDING ANY DOCUMENTS IN CONNECTION WITH THE TRANSACTION OR DISBURSING FUNDS THIS STATUTE ALLOWS FOR FUNDS DEPOSITED BY WIRE TRANSFER TO BE DISBURSED THE SAME DAY AS DEPOSIT. IN THE CASE OF CASHIER'S CHECKS OR CERTIFIED CHECKS, FUNDS MAY BE DISBURSED THE NEXT DAY AFTER DEPOSlT. IN ORDER TO AVOID UNNECESSARY DELAYS OF THREE TO SEVEN DAYS, OR MORE, PLEASE USE WIRE TRANSFER, CASHIER'S CHECKS, OR CERTIFIED CHECKS WHENEVER POSSIBLE. IF YOU HAVE ANY QUESTIONS ABOUT THE EFFECT OF THIS NEW LAW. PLEASE CONTACT YOUR LOCAL FIRST AMERICAN OFFICE FOR MORE DETAILS. NOTICE IN ACCORDANCE WITH SECTIONS 18662 AND 18668 OF THE REVENUE AND TAXATION CODE, A BUYER MAY BE REQUIRED TO WITHHOLD AN AMOUNT EQUAL TO THREE AND ONE-THIRD PERCENT OF THE SALES PRICE IN THE CASE OF THE DISPOSITION OF CALIFORNia REAL PROPERTY INTEREST BY EITHER: 1. A SELLER WHO IS AN INDIVIDUAL WITH A LAST KNOWN STREET ADDRESS OUTSIDE OF CALIFORNIA OR WHEN THE DISBURSEMENT INSTRUCTIONS AUTHORIZE THE PROCEEDS BE SENT TO A FINANCIAL INTERMEDIARY OF THE SELLER, OR 2 A CORPORATE SELLER WHICH HAS NO PERMANENT PLACE OF BUSINESS IN CALIFORNIA. 'rite BUYER MAY BECOME SUBJECT TO PENALTY FOR FAILURE TO WITHHOLD AN AMOUNT EQUAL TO THE GREATER OF 10 PERCENT OF THE AMOUNT REQUIRED TO BE WITHHELD OR FIVE HUNDRED DOLLARS ($5~0) HOWEVER, NOTWITHSTANDING ANY OTHER PROVISION INCLUDED IN THE CALIFORNIA STATUTES REFERENCED ABOVE, NO BUYER WILL BE REQUIRED TO WITHHOLD ANY AMOUNT OR BE SUBJECT TO PENALTY FOR FAILURE TO WITHHOLD IF: 1. THE SALES PRICE OF THE CALIFORNIA REAL PROPERTY CONVEYED DOES NOT EXCEED ONE HUNDRED THOUSAND DOLLARS ($100.C~O). OR THE SELLER EXECUTES A WRITTEN CERTIFICATE, UNDER THE PENALTY OF PEPOURY, CERTIFYING THAT THE SELLER IS A RESIDENT OF CALIFORNIA, OR IF A CORPORATION. HAS A PERMANENT PLACE OF BUSINESS IN CALIFORNIA. OR 3 THE SELLER, WHO IS AN INDIVIDUAL, EXECUTES A WRITTEN CERTIFICATE, UNDER THE PENALTY OF PERJURY, THA'[' THE CALIFORNIA REAL PROPERTY BEING CONVEYED IS THE SELLER'S PRINCIPAL RESIDENCE (AS DEFINED IN SECTION 1034 OF THE INTERNAL REVENUE CODE) THE SELLER IS SUBJECT TO PENALTY FOR KNOWINGLY FILING A FRAUDULENT CERTIFICATE FOR THE PURPOSE OF AVOIDING THE WITHHOLDING REQUIREMENT THE CALIFORNIA STATUTES REFERENCED ABOVE INCLUDE PROVISIONS WHICH AUTHORIZE THE FRANCHISE TAX BOARD TO GRANT REDUCED WITHHOLDING AND WAIVERS FROM WITHHOLDING ON A CASE-BY-CASE BASIS. THE PARTIES TO THIS TRANSACTION SHOULD SEEK AN ATTORNEY'S, ACCOUNTANT'S, OR OTHER TAX SPECIALIST'S OPINION CONCERNING THE EFFECT OF THIS LAW ON THIS TRANSACTION AND SHOULD NOT ACT ON ANY STATEMENTS MADE OR OMITTED BY THE ESCROW OR CLOSING OFFICER. PAGE7 Attachment 3 Draft StaffMemo dated April 25, 1991 APRIL 25~ 2992 BOB LEDENDECKER, D~NA KASDZ~N, CAPTAIN FOSTER ~ND NORM SMITH CHRISTINE SHINGLETON, ~SSISTANT CITY MANAGER ~BANDONEDRAILROADRIGHT-OF-WAY BETWEEN PEPPERTREEAND TUSTIN MEADOWS As a follow-up to our meeting with the Irvine Company on March 11, 1991, I have prepared a summary of issues related to the potential re-use alternatives considered for the subject abandoned railroad right-of-way. I believe that this summary will assist us in making an objective decision as to the best re-use of this land. Following each of the alternatives identified below, a number of informational points are identified for consideration and discussion at our next meeting of , 1991, at , in the Community Development Department Conference Room. INFORMATION SUMMARY ~Bi%NDONED R~ILROAD RIGHT-OF-WAY ALTERNATIVE A: Equal distribution (50%) to property owners adjoining either side of the right-of-way Process: * Parcel map/lot line adjustment Disposition: * Irvine Company to provide the property at no cost Cost: * Subdivision map preparation $ 20,000.00 ($250.00 per property) * Grading/drainage improvements 400,000.00 ($5,000.00 per property) * Fencing/wall construction 422,000.00 Total $842,000.00 Liability: * Assumed by adjoining property owners Environmental Impacts: * Probably none 1 Funding Sources: Constraints: Opportunities: ALTERNATIVE B: Process: * Disposition: * Cost: Liability: * Environmental Impacts: Funding Sources: Constraints: None needed Assessment District Irvine Company No land locked parcels allowed City access to drainage easement restricted Access to jet fuel pipeline restricted Misuse of easements requiring code enforcement Potential site drainage changes Security improved Unsightly condition eliminated Southerly 45 ft. easement City owned, Northerly 30 ft. distributed to adjoining property owners Parcel map/lot line adjustment Irvine Company to provide the property at no cost Subdivision map preparation Grading/drainage improvements Fencing/wall construction Total 45 ft. 30 ft. owners $ 15,000.00 175,000.00 279.000.00 $ 469,000.00 portion assumed by City portion assumed by adjoining * Probably none property Opportunities: * None needed Assessment District Irvine Company No land locked parcels allowed Potential site drainage changes Security Maintenance costs Access to easements guaranteed ~LTERN~TIVE C: Relocate jet fuel pipeline/Equal distribution of right-of-way to adjoining property owners Process: * Disposition: * Cost: Environmental Impacts: * Funding Sources: * Constraints: * * Opportunities: * ALTERNATIVE D: Process: Disposition: Parcel map/lot line adjustment New easement agreement with Defense Department of Irvine cost Relocation of pipeline Subdivision map preparation Grading/drainage improvements Fencing/wall construction Total Company to provide the property at no $ 481,000.00 20,000.00 400,000.00 422,000.00 $1,323.000.00 Assumed by adjoining property owners Limited construction related impacts None needed Assessment District Irvine Company Department of Defense No land locked parcels allowed City access to drainage easement restricted Cost Misuse of drainage easement requiring code enforcement Potential site drainage changes Alternative jet fuel pipeline locations may be politically sensitive Construction related impacts (traffic, noise, etc.) Security improved Unsightly condition eliminated Reduction in liability Positive P.R. for City Prlvate/Publlo Park Parcel map/lot line adjustment (private park) Irvine Company to provide the property at no cost Cost: * Liability: * Environmental Impacts: * Funding Sources: * Constraints: * Opportunities: * Alternative E: Process: * Disposition: * Cost: * Liability: * Environmental Impacts: * * Funding Sources: * Constraints: Subdivision map preparation $ 10,000.00 Initial park construction costs 812,000.00 (Pub. Park maint, costs $70,000.00) Total $ 822,000.00 Assumed by city Increased intensity of use of land Noise Assessment District Irvine Company City General Fund Increased City costs Security Increased citizen costs (assessment) Maintenance Potential site drainage changes Liability Security improved Unsightly condition eliminated Increased recreational space Access to easements guaranteed Private tree farm Parcel map/lot line adjustment Preparation of lease/sale agreement Irvine Company to provide the property at no cost Subdivision map preparation $ 10,000.00 Shared by City (owner) and lessee Increased intensity of land use Noise (limited) Lessee Security Potential Liability site drainage changes 4 & Opportunities: ALTERNATIVE F Process: Disposition: Cost: Liability: Environmental Impacts: Funding Sources: Constraints: Opportunities: ALTERNI~TIVE G Process: Disposition: Cost: Security i~proved Unsightly condition eliminated Access to easements guaranteed Recreational Vehicle Parking Lot Parcel map/lot line adjustment Deed restriction Irvine Company to provide the property at no cost Subdivision map preparation $ 10,000.00 Shared by city (owner) and lessee * Increased intensity of * Noise (limited) * Air land use * Lessee Security Potential site drainage changes Liability Environmental impacts Aesthetics Security improved Unsightly condition partially eliminated Access to easements guaranteed Dedication as public/prlvate street Parcel map/lot line adjustment Street improvement plans developed Irvine Company to provide the property at no cost Walnut Avenue to Fl0 Channel Subdivision map preparation Grading/drainage improvements (Pub. street maint. $7,000.00) Total $ 10,000.00 980,000.00 $ 990,000.00 Liability: Environmental Impacts: Funding Sources: Constraints: Opportunities: Walnut Avenue to Sycamore Avenue * Subdivision map preparation * Grading/drainage improvements (Pub. street maint. $3,600.00) Total $ 7,000.00 536,000.00 $ 543,000.00 Assumed by City (public street) or Homeowner's Association (private street) * Increased intensity of land use * Noise (limited) * Air city General Fund (public street) Homeowner's Association (private street) * Potential site drainage changes * Liability * Environmental impacts * Aesthetics Security improved Unsightly condition partially eliminated Access to easements guaranteed DO: kd \ rrr ow. mem