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07 Resolution of Necessity to Authroize Auisition of Private Proerty through eminent Domain for the Shannon Road Capital Improvement Project ITEM NO 7. IMEETTOWN OF LOS GATOS ING DATE: 11/19/2024 exii COUNCIL AGENDA REPORT ITEM NO: 7 DATE: November 5, 2024 TO: Mayor and Town Council FROM: Gabrielle Whelan,Town Attorney SUBJECT: Consider Adoption of a Resolution of Necessity to Authorize Acquisition of Private Property Through Eminent Domain for the Shannon Road Capital Improvement Project (CIP No. 811-0008) RECOMMENDATION: Consider adoption of a Resolution of Necessity (Attachment 2)to authorize acquisition of private property through eminent domain for the Shannon Road Capital Improvement Project (CIP No. 811-0008). EXECUTIVE SUMMARY: This staff report is submitted for review by the Town Council of the Town of Los Gatos in connection with a hearing to consider adoption of a Resolution of Necessity (Attachment 2). Under California law,the Town cannot acquire private property via eminent domain unless and/or until the Council has adopted a Resolution of Necessity by a four-fifths majority vote. The statutory requirement that a public entity adopt a Resolution of Necessity before initiating a condemnation action is designed to ensure that public entities will verify and confirm the validity of their intended use of the power of eminent domain prior to the application of that power in any one particular instance. Staff recommends that the Council adopt a Resolution of Necessity (Attachment 2)to authorize the acquisition by eminent domain of a fee interest in a portion of 14915 Shannon Road, Los Gatos, CA (APN 537-27-047) (the "Larger Parcel")for the Shannon Road Capital Improvement Project (the "Project"). Specifically, an approximately 29,807 square foot portion of the Larger Parcel (the "Subject Property") comprised of(a) an approximately 21,929 square foot strip of land within the existing Shannon Road right of way; and (b) an approximately 7,878 square foot strip of land along the Larger Parcel's frontage on Shannon Road. The Subject Property is more Reviewed by: Town Manager,Assistant Town Manager, Parks and Public Works Director, and Finance Director 110 E. Main Street Los Gatos,CA 95030• (408)354-6832 www.losgatosca.gov Page 75 PAGE 2 OF 8 1TEM NO. 7. SUBJECT: Consider Adoption of Resolution of Necessity to Authorize Acquisition of Private Property Through Eminent Domain for the Shannon Road Capital Improvement Project (CIP No. 811-0008) DATE: November 5, 2024 particularly described and depicted in the attachments to the Resolution of Necessity. As described in more detail below, the Project is necessary to repair the roadbed, increase Shannon Road's pavement width, install guardrails,and install retaining walls on the north side of Shannon Road. The hearing on the Resolution of Necessity affords the property owner the opportunity to address the Town Council on the necessity of acquiring the Property for the Project. However, the amount of compensation the property owner is entitled to receive should not be discussed at the hearing. That does not mean that negotiations for the acquisition of the Subject Property are at an end. If the Town adopts the Resolution of Necessity, after the hearing, negotiations for the acquisition of the Subject Property may continue. BACKGROUND: The Larger Parcel and the Subject Property The Larger Parcel is comprised of approximately 27.09 acres that is improved with a single- family home, barn, and outbuildings. The Larger Parcel is mostly raw, vacant land on the north side of Shannon Road. The buildings are along the Larger Parcel's frontage on Shannon Road and will not be impacted by the proposed acquisition. The first approximately 150 feet of the Larger Parcel immediately north of Shannon Road is relatively level to moderately sloping. The rest of the Larger Parcel is relatively steeply sloped (30-50%) as the Larger Parcel extends north up a hillside. Shannon Road runs along the Larger Parcel's southern property line. The Shannon Road right of way is 40 feet wide, 20 feet of which are on the Larger Parcel in a road easement. Figure 1 depicts the Larger Parcel. Page 76 ITEM ADO. 7 PACE 30F8 SUBJECT: Consider Adoption of Resolution of Necessityto Authorize Acquisition of Private PropertyThrough Eminent Domain for the Shannon Road Capital Improvement Project (OP No. 811-000B) DATE: November 5,2024 Rpm.1. 1AEL5 Shannon Road ProprtyBoundary 'lilt A sc --,--_ 4 4 e i it J.. . . e,c,•:. ' b.:' t Th- ‘-; - ' ":“iii, - iv;s �. u 1K�.„r v i w.yI • ;y . s "fir. I ..•e / .• As mentioned above,the Subject Property is comprised of (a) an approximately21,929 square foot strip of land within the existingShannon Road ris,t of way(i.e.,within the Town's existing roadway easement); and (b)an approximately7,878 square foot strip of land alongthe Larger Parcel'sfrontage on Shannon Road. Figure 2 depids the approximately21,929 square foot portion of the Subject Propertythat iswithin the Town's existing right of way(green)and the approxima ely7,878 square foot portion of the Subject Property that is alongthe Larger Parcel'sShannon Road frontage.The properties depicted in Figure 2 are those that are required far implementation of the Shannon Road Repair prajed and the subject of this hewing. Page 77 ITER]n% 7. PAGE 4 OF B _ SUBJECT: Consider Adoption of Resolution of Necessity to Authorize Acquisition of Private Property Through Eminent Domain for the Shannon Road Capital improvement Project(CIP No.811-0008) DATE: November 5,2024 Flgara 2. Property ar 14015 Shannon Road Required for Shannon Road Repair _,... __' .; �� 4` I ( `' --.. Ali' / .,\ �.,.. °" LEGEND -I b,MC wvnn.vn..• O?O?O: MM1VO%V RAY I1.67R11.. The location of the proposed acquisition in relation to the Larger Parcel is depicted in Figure 3. Fl re 3.location of • • Dead • ulsitlon Pit r• a � ;• ,S'ltkt Y r �R'• 4 Tit Y ` M -I' ry A. The Project The Town annexed the relevant portion of Shannon Road from the County of Santa Clare in 201&This section of Shannon Road has failed repeatedly in the past Before Shannon Road was annexed,the County repaired the relevant section of Shannon Road by injecting epoxyfoam Paje 78 PAGE 5 OF 8 1TEM NO. 7. SUBJECT: Consider Adoption of Resolution of Necessity to Authorize Acquisition of Private Property Through Eminent Domain for the Shannon Road Capital Improvement Project (CIP No. 811-0008) DATE: November 5, 2024 into the roadbed. However, that repair has since failed, and the roadbed has continued to deteriorate. The Project will implement a permanent repair to Shannon Road. The Project will install retaining walls, increase the pavement width from 22 to 23 feet, and install guardrails and provide area for a shoulder on the south side of Shannon Road. B. Negotiations to Date The Town obtained an appraisal of the Subject Property from appraiser Terry Larson, MAI. On June 4, 2024, the Town sent the property owner a Government Code offer letter (Attachment 1) offering the full amount of that appraisal as just compensation for the proposed acquisition. The Town had been in negotiations with the Property's prior owner, Bud Elam, until October 2024, when the Property was foreclosed on. Since then, the Town has contacted the Property's new owner regarding its interest in acquiring the Subject Property. The Town sent the Property's new owner a Government Code offer letter on October 14, 2024. However, to date, the Property's owners have not engaged the Town in negotiations for the voluntary acquisition of the Subject Property. Therefore, staff recommends that the Town Council adopt a resolution of necessity to initiate eminent domain proceedings. DISCUSSION: As described above,to adopt a resolution of necessity, the Council must make the following findings1: 1. The public interest and necessity require the proposed project; 2. The property described in the resolution is necessary for the proposed project; 3. The proposed project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; and 4. That either the offer required by Section 7267.2 of the Government Code has been made to the owner(s) of record or the offer has not been made because the owner cannot be located with reasonable diligence. This staff report provides data and information addressing each of these issues. 1 Code Civ. Proc. § 1245.230. Page 79 PAGE 6 OF 8 1TEM NO. 7. SUBJECT: Consider Adoption of Resolution of Necessity to Authorize Acquisition of Private Property Through Eminent Domain for the Shannon Road Capital Improvement Project (CIP No. 811-0008) DATE: November 5, 2024 A. The Public Interest and Necessity Require the Project First, the Town Council must find that the public interest and necessity require the Project. The Town acquired the relevant section of Shannon Road from the County of Santa Clara in 2018 and immediately identified areas of pavement failure. Various engineering studies and analysis revealed that the subbase below the northern travel lane (westbound travel) has numerous voids and is unstable. As a Hillside Collector Street (See General Plan Pages 5-16),Shannon Road is a critical transportation route between San Jose and Los Gatos. It is a primary emergency evacuation route for areas of east Los Gatos. If repairs are not made, the westbound travel lane may need to be closed for safety reasons. The Project, which will repair the roadway and upgrade it to meet current roadway design safety standards, is in the public interest. B. The Interests Sought to be Acquired are Necessary for the Project Second, the Town Council must find that the interests sought to be acquired are necessary for the Project. As previously described,the Subject Property is necessary for the Project. The Project could not be constructed as designed without the acquisition of the Subject Property. C. The Project is Located in such a Manner as to Offer the Greatest Public Benefit with the Least Private Detriment Third, the Town Council must find that the Project is located in such a manner as to offer the greatest public benefit with the least private detriment. In connection with the Project's design, staff and the Town's consultants evaluated a variety of options. For example, the Town considered shifting the roadway south to reduce or eliminate the need to acquire private property on the north side of Shannon Road. However, that alternative would have required the Town to "cut" into the hillside on the south side of the existing roadway. That design would have required two retaining walls —one on the south side of Shannon Road to support the cut, and a second on the north side. That design would have significantly increased project costs and environmental impact. The Project, as currently proposed, offers the greatest public benefit with the least private detriment because: (a) it requires the acquisition of the least possible amount of private property required to permanently repair the impacted section of Shannon Road and upgrade it to meet current roadway design safety standards; (b) the majority of the Subject Property is already within a Town-owned road easement; and (c) it avoids a substantial excavation and installation of a retaining wall on the south side of Shannon Road. Page 80 PAGE1TEM NO. 7. 7 OF 8 SUBJECT: Consider Adoption of Resolution of Necessity to Authorize Acquisition of Private Property Through Eminent Domain for the Shannon Road Capital Improvement Project (CIP No. 811-0008) DATE: November 5, 2024 D. A Government Code Offer Has Been Delivered To the Property Owner Fourth, the Council must find that the Town has extended an offer for the Subject Property pursuant to Government Code section 7267.2 to the new property owner. On October 14, 2024, the Town sent an offer in conformance with Government Code section 7267.2(a) to the property owner (Attachment 1).2 While the property owners have requested a meeting,they have not yet engaged the Town in negotiations. On November 1, 2024, the Town mailed the new property owner a Notice of Intent to consider adoption of a Resolution of Necessity to acquire the Subject Property by eminent domain at its regular meeting of November 19, 2024. A copy of the notice provided to the property owner is in Attachment 3. The Notice was sent to the address identified on the last equalized county assessment roll, and to the new owner's attorney and agent. E. Statutory Authority for Acquiring the Subject Property through Eminent Domain The Town is authorized to acquire the Subject Property for the Project pursuant to statutes including, but not limited to, California Constitution, Article 1, Section 19;the California Eminent Domain Law, Code of Civil Procedure Section 1230.010 et seq., including, but not limited to, sections 1240.010 through 1240.050 inclusive, and sections 1240.110, 1240.120, 1240.150, 1240.220, 1240.320, 1240.330, 1240.350, 1240.410, 1240.510, 1240.610, 1240.650, and 1240.660; Government Code section 37350.5; Streets & Highway Code section 10102; and other provisions of law. F. Environmental Assessment The Town fully complied with the California Environmental Quality Act, Public Resources Code Section 21000 et seq., for acquiring the Subject Property when on September 4, 2024, the Town determined that the Project is categorically exempt from CEQA pursuant to 14 California Code of Regulation, sections 15301 (Existing Facilities Exemption) and 15061(b)(3) (Common Sense Exemption). The County filed the Notice of Exemption in accordance with Public Resources Code section 21152 on September 10, 2024. No further environmental review is required. 2 The Town's offer included an informational pamphlet describing the eminent domain process and the property owner's rights under the Eminent Domain Law. The Town's offer also (1) contained a written statement of, and summary of the basis for, the amount it established as just compensation; and (2) offered, pursuant to Code of Civil Procedure Section 1263.025, to pay the record owner the reasonable costs, up to $5,000, for an independent appraisal of the Property. (Gov. Code §7267.2.) Page 81 PAGE 8 OF 8 1TEM NO. 7. SUBJECT: Consider Adoption of Resolution of Necessity to Authorize Acquisition of Private Property Through Eminent Domain for the Shannon Road Capital Improvement Project (CIP No. 811-0008) DATE: November 5, 2024 COORDINATION: This report was coordinated with the Town Attorney's Office, Special Counsel Nick Muscolino, and the Department of Public Works. FISCAL IMPACT: If this property acquisition proceeds to trial as an eminent domain action,the fiscal impact to the Town will be the property acquisition cost plus attorney fees and costs, which could be up to $200,000. There is sufficient funding in the project budget to pay for the property acquisition. Attachments: 1. Government Code Offer Letter 2. Resolution of Necessity 3. Notice of Hearing on Resolution of Necessity Page 82 ITEM NO. 7. w- TOWN OF LOS GATOS PARKS&PUBLIC WORKS DEPARTMENT SERVICE CENTER +43 PHONE(408)399-: 770 41 taLssAVENUE Los GATOS,CA 95030 VIA EMAIL AND CERTIFIED MAIL October 14, 2024 John W. Hoffee P.O. Box 670 Kailua Kona, HI 96745 (By US Mail only) Richard H. Gillette P.O. Box 1 189 Carlsbad, CA 92018 E-mail:grichard61@aol.com Ray M. Elam, III Trustee. Elam Family Trust 1432 Sea Ridge Drive Newport Beach, CA 92660 E-mail: budelam:.u?gmail.com Re: Offer Pursuant to Government Code Section 7267.2 to Acquire a Portion of" 14915 Shannon Road. Los Gatos. CA (APN 537-27-047) Dear Mr. Hoffee, Mr. Gillette & Mr. Elam: On June 4, 2024. the Town of Los Gatos ("Town") sent Mr. Elam an offer pursuant to Government Code section 7267.2 to purchase a portion of the property located at 14915 Shannon Road, Los Gatos. CA (APN 537-27-047) ("Larger Parcel"). On October 7, 2024, Mr. Islam advised the Town that he had lost the Larger Parcel to foreclosure and provided Mr. Gillette's contact information. On October 9. 2024, Mr. Gillette ( 1 ) provided the Town a Trustee's Deed Upon Sale indicating that Mr. Hoffee had acquired fee title to the Larger Parcel, (2)advised the Town that he is the "owner's representative.'" and (3) advised that Mr. Hoffee is forming an entity to hold the Larger Parcel. This letter supersedes the Town's July 4. 2024 letter to Mr. Elam. Government Code section 7627.2 provides that before adopting a resolution of necessity and initiating negotiations for the acquisition of real property', a public entity shall establish an amount that it believes to be,just compensation for the property it seeks to acquire. and to make an offer to the "owner or owners of record to acquire the property for the full amount so established." Based on Mr. Gillette's representations and the Trustee's Deed Upon Sale Page 83 ATTACHMENT I ITEM NO. 7. that he provided. the Town understands that Mr. Iloffee is the fee owner of the Larger Parcel. Nevertheless, to ensure that the fee owner of the Larger Parcel receives this letter. the Town has addressed this letter to each of you. This letter is intended to satisfy the Town's obligations pursuant to Government Code section 7267.2. As indicated in the "I'own's Government Code Offer letter to Mr. Elam dated June 4, 2024 (Exhibit 4). the Town proposes to acquire an approximately 29.807 square foot portion of the Larger Parcel comprised of: (a)an approximately 21,929 square foot strip of land within the existing Shannon Road right of way; and (b) an approximately 7,878 square foot strip of land along the Larger Parcel's frontage on Shannon Road (together, the "Subject Property"). A detailed legal description and plat map of the Subject Property is attached hereto as Exhibit 1. The Town needs to acquire the Subject Property for the Shannon Road Capital Improvement Project(CIP No. 81 1- 0008) (the "Project"). The Project will repair the roadbed. increase Shannon Road's pavement width, install guardrails. and install retaining walls on the north side of the road. The Subject Property is within the area of the Project, and acquisition of the Subject Property is necessary'for the Project. The Town would prefer to resolve this matter by negotiated purchase. Section 7267.2 of the Government Code requires the Town to make"the owner or owners of record" an offer which represents the appraised fair market value of the property necessary for the Project. The Town offers the sum of Thirty-Nine Thousand Four Hundred and no/100 Dollars ($39.400.00) for the Subject Property, which is more particularly described and depicted in the exhibits attached to the Summary Statement and Summary of the Basis for Just Compensation ("Summary Statement"), attached hereto as Exhibit 2. The Summary Statement demonstrates the value of the Subject Property. As provided in Government Code Section 7267.2, the offer is conditioned upon the Town Council's approval of the offer by either execution ofa contract of acquisition or adoption of a Resolution of Necessity. Furthermore, pursuant to Code of Civil Procedure Section 1263.025(a). the Town will pay the reasonable costs, not to exceed Five Thousand Dollars ($5,000.00), of an independent appraisal of the Subject Property, ordered by you. To be eligible for reimbursement, the independent appraisal must be conducted by an appraiser licensed by the State Office of Real Estate Appraisers. In addition, pursuant to Code of Civil Procedure Section 1263.615, the Town is unable to offer you continued use of the fee interest after acquisition because the Town will begin the Project within two years of the acquisition. Finally. attached hereto as Exhibit 3 is an informational pamphlet describing the eminent domain process and your rights under the Eminent Domain Law. This offer is contingent upon (1)the Subject Property being free and clear of all leases which would affect the marketability of the Subject Property. (2) the Subject Property being free from Page 84 ITEM NO. 7. environmental contamination: and (3) proof that the person (if any) accepting this offer is, in fact. the fee owner of the Larger Parcel. As indicated, the "Town would like to resolve this matter by agreement, as the Town believes that a negotiated purchase best serves everyone's interests. If you ultimately elect to reject the Town's offer for the Subject Property. and the Town chooses to proceed with acquiring the Subject Property- through the eminent domain process, you are entitled to have the amount of compensation determined by a court of law in accordance with the laws of the State of California. Please do not hesitate to contact me if you have any questions. Sincerely, Town of Los Gatos N/coGCe Ewnhca i Director of Parks and Public Works Exhibits . Final Grant of Right of Way Description 2. Appraisal Summary Statement 3. Eminent Domain Information Pamphlet 4. June 4, 2024 Government Code Offer Letter CC: Gabrielle Whelan, Town Attorney (via email only le gwhelan@,logarosca.gov) Nicholas Muscolino (via email onlvto nmuscolinoAbwslaw.com) Page 85 ITEM NO. 7. EXHIBIT A LEGAL DESCRIPTION Shannon Road Grant of Right of Way All that certain real property situate in the Town of Los Gatos, County of Santa Clara, State of California, being a portion of the lands granted to Diane Barnett and Ray M. Elam, Ill as Co- Trustees of the Elam Family Trust A by deed filed for record May 29, 2015 as Document 22970019 in the office of the Santa Clara County Recorder, being more particularly described as follows: Commencing at an iron pipe in monument box located at the northerly terminus of that certain course shown as "N 46° 11' 21"W, 394.601"on the map entitled "Record of Survey of the Monument Line of Shannon Road..."filed for record July 13, 1978 in Book 422 of Maps at Pages 39-46 in said Recorder's office; said course being depicted on sheet 4 of 8 therein,thence from said point of commencement North 07°12'24" West, 26.58 feet to the true Point of Beginning of this description;thence South 55°48'03" East, 31.91 feet;thence South 48°26'38" East, 45.97 feet;thence South 46°41'49" East, 107.02 feet;thence South 45°34'03" East, 124.07 feet to the beginning of a curve concave northeasterly having a radius of 500.00 feet;thence southeasterly along the arc of said curve 74.81 feet through a central angle of 08°34'21 to the beginning of a non-tangent curve concave northeasterly having a radius of 350.00 feet,from which point the radius bears North 34°44'06" East;thence southeasterly along the arc of said curve 99.18 feet through a central angle of 16°14'09";thence South 71°30'03" East, 57.32 feet to the beginning of a curve concave southerly having a radius of 375.00 feet;thence easterly along the arc of said curve 38.43 feet through a central angle of 5°52'20";thence South 65°37'44" East, 153.47 feet;thence North 24°22'16" East, 5.00 feet;thence South 65°37'44" East, 9.00 feet;thence South 24°22'16"West,5.00 feet;thence South 65°37'44" East, 33.94 feet;thence North 24°22'16" East, 33.00 feet; thence South 65°37'44" East, 20.00 feet;thence South 24°22'16" West, 33.00 feet;thence South 65°37'44" East, 68.97 feet to the beginning of a curve concave southerly having a radius of 325.00 feet;thence southeasterly 44.19 feet through a central angle of 07°47'28";thence South 57°50' 15' East, 25.21 feet;thence North 32°09'45" East, 5.00 feet;thence South 57°50'15" East, 10.00 feet;thence South 32°09'45"West,5.00 feet;thence South 57°50'15" East,33.40 feet to the beginning of a non-tangent curve concave southwesterly having a radius of 335.00 feet,from which point the radius bears South 43°55'48" West;thence southerly along the arc of said curve 54.96 feet through a central angle of 09°24'00";thence South 25°59'14" East, 57.73 feet to a point in the westerly line of that certain 72.14 acre tract granted to Manuel F. Escover by deed dated November 27, 1922, filed for record in Book 566 of Deeds at Page 403 in said Recorder's office, from which point an iron pipe in monument box located at the southerly terminus of that certain course shown as "N 30°09'05"W, 240.63 " on sheet 4 of said Record of Survey bears South 16°54'19" East, 167.68 feet;thence along said westerly line South 23°40'51"West, 38.50 feet to an iron pipe set at the southwesterly corner of said 72.14 acre tract; said corner being further described as Page 1of2 Page 86 ' I /TEMwo z LEGAL DIESCFRIPRON (cVDt.) Shannon Road Grant of Right ufWay lying in the center of Shannon Road; thence along the southwest line of said lands of Elam et. al., said southwest line also being the centerline of Shannon Road,the following courses and distances, each as shown on that certain map entitled "Record of Survey of a portion of Shannon Road"filed for record May, 28, 2024 in Book 962 of Maps at Page 10 in said Recorder's office, North 24"21'16° West, 20.92 feet tm the beginning mf a curve concave southwesterly having a radius of3D5.0O feet; thence northwesterly along the arc of said curve 214'93 feet through a central angle of43"2J'33";thence North G7"33'47° West,69.26 feet tm the beginning of a curve concave northerly having a radius of 500.00 feet;thence northwesterly along the arc ofsaid curve 35.95 feet through a central angle ofD2"G8'26":thence North 64"35'31" West, 15Q.38 feet to the beginning ofa curve concave southerly having a radius of 750.00 feet;thence westerly along the arc of said curve 90.05 feet through a central angle of 06"52'46";thence North 7l"28'O7" West,#2.02 feet tmthe beginning ofa curve concave northerly having a radius of 360.00 feet;thence northwesterly along the arc of said curve 161.26 feet through a central angle of25"38'54";thence North 45"40'13" West, 199.08 feat to the beginning of a curve concave southwesterly having a radius of 2,500.00 feet; thence northwesterly along the arc of said curve 137'44 feet through a central angle ofQ2"55^14"; thence iea*imgsaid centerline of Shannon kmad North 41'`l6'3S» East, 20'00 feet to the point of beginning. Containing 29,807 square feet, more or less. Bearings used in this description are based upon the California Coordinate System of 1983 (CCS83), Zone 3. Prepared under the direction of: —h TO I 06. - OF CALIV3 Charles KU. VV L�iG42l Page 2uf 2 pooea7 ITEM NO. 7. \,y.a " ---Point of Beginning `�a , <,, DATUM NOTE: r CURVE DATA TABLE NO.; DELTA LENGTH RADIUS RADIUS 0: \/ Bearings shown are based upon the _,._.__ l� Cl' 08°34'21" 74.81' 500.00' 1p�. California Coordinate System of 1983 1`•r Q C2 16°14'09" 99.18' 350.00' 1j , (CCS19$3),Zone 3,epoch 2021.3. s�6° �I� 1 C3; 05°52'20" 38.43' 375.00' . Q, f 0 Point of ©,gyp,p.v».::.. :,. O Commencement, .2.`,.1 ,, 9 Q ED LINE DATA TABLE r O f,, NO. BEARING (DISTANCE End.monument • •1Q,;OO, , /,y O. c4� L1 N07°12'24''W 1 26.58' perR1 p o C� „ �r'` �' L2 S55°48'03"E 31.91' N:1,907,166.93 \ �LQ ).> P;, �O , L3 S48°26'38"E 45.97' E:6,145,7Q7.40 \ S° ' �,. � o r --. '� Tc,p,''` `*s° L4 S7_1°30'03"E 57.32' �/ rd `` ‘!re, Ll�.L5 S65°37'44"E 153.47' =4� ''T , /,, solid New R/W Line (L23I N71°28'07"W 42.02' /jj `ti'1 I L24 N41°16'33"E_ 20.00' • pit o • h � p � O h \U 2 ii a� � 4\ 9 � Right of Way l�� `, 29,807±sq.ft. LEGEND `� ��s• % > ° c c ti f•. ; / w C1 or L1 See curve or line data table Occupational 4. 4„ �'�` �;` L Rad Radial Bearingper 2023 Survey- \ dS°a �\. >•�,, Cq m (Property Line per • 9S.1 a 'ti./'>!/, `may, R-1 Bk.422 Maps,Pg.39-46 Deed Reference) /)` *,/ EXHIBIT B 123 !y >. Plat to Accompany Legal Description (4 0.. GRAPHIC SCALE 60 o sa 60 MOUNTAIN PACIFIC !iesi s o ..✓ SURVEYS rp 9 (707)425-6234 1 inch= 60 ft. 1735 Enterprise Dr Suite�o PH Fairfield,CA 94533 FAX (707}425-1969 Scale: 1"=60' Date:April 19,2024 Proj.No.521058 Sheet No.: 1 of 2 \�. Page 88 ITEM NO. 7. C23 C g � �f' SSS°3> 6 © , S�, Sp ✓� C L7 "49�o Q° 100 46" ©0, �Sx x,yi,.. S.4, L6 L C FI `�go a zx11 Of 4 3S" a v C.Z Right of Way ti A ,� f ).� f _ 29,807±sq.ft. ill �� New R/W Line 20 r C c��m If �6 w 2? NO.I BEARING DISTANCE �< Q 6 s''4� ` . /\\• ` �L15L16 �� L6 N24°22'16"E 5.00' E LL ,,%A, '',' ; L17 hb L7 S65°37'44"E 9.00' '� <.,r \ 12 Q- Occupational4 %*` tx `� L8 ; 524°22'16'W 5.00' to ti :,fr;�,18 `., L`3! 555'3�, „ a s _[ per 2023 Survey ....._ �� p$,/ art.. V V Ci L10; N24°22`25"E 33.00' 1 (Property Line per Qom`•901�.`f , ! �,, Deed Reference 1'd° r �, S L11 S65°37'44"E 20.00' } ' go' '`� { ": s /� / L12 S24°22'16"W 33.Q0` \ 3��S 1. i. / �' LEGEND oe��. �, L13 S65°37'44"E_ 68.47' _ O, , ,.',- ti L14€ S57°50'15`E 25.21 Cl or L1 See curve or line data table L15' N32°09'45"E 5.00' ✓✓ .' Red Radial Bearing L16 S57°50'15"E 10.00' <`'s� M L17 S32°09'45"W 5.00' R-1 Bk.422 Maps,Pg.39-46 \\ Yf cry L18 S57°50'15 E 33.40' _ _ i`,.,`<, 0 I L19 S25°59'14"E 57.73' ;NO. DELTA LENGTH 1 RADIUS \ \<' Crp L20 S16°54'19"E 167.68' I C3 05°52'20" 38.43' , 375.00' 0L21 S23°40'51'W 38.50' I C4 07°47'28" 44.19'_ 325.00 1 v r'� L22 N24°21'16"W 20.92' CS 09°24'00" 54.96' 335.00' I \ �� L23 N71°28'07"W _42.02' L C6 02°58'26' ‘ 25.95' , 500.00' \ ,\ t EXHIBIT B \ \ \ \ � Plat to Accompany Legal Description {. - -,-% ,� GRAPHIC SCALE \ \,; so 0 30 60 End.monument V v MOUNTAIN PACIFIC per R-1 °\ �.o ., S U R V E Y S N:1,906,431.20 7,7,0 c'- 1235 Enterprise Dr,Suite 109 PH (707)425-6234 1 inch= 60€t. E:6,146,674.22 \d s . Fairfield,CA 94533 FAX(707)425-1969 Scale: 1"=60' Date:April 19,2024 Proj.No.521058 Sheet No.: 2 of 2 0 Page 89 ITEM NO. 7. APPRAISAL SUMMARY STATEMENT Page 1 of 4 PROPERTY AND PROJECT INFORMATION Project: Shannon Road Capitol Improvement Project Parcel No.: 521058 APN: 537-27-047 Owner: Dam Date Acquired: Many years ago Property Address: 14915 Shannon Road Locale: Los Gatos,Santa Clara County, California Total Property Area: 27.09 acres of land Property to be Acquired: Partx All Including Access Rights: Yes No x Development Application: A Development Application has been submitted to Los Gatos to create nine residential lots on the property. According to City Planning, it has received negative feedback. Concerns include challenges developing on the hillside and the proposed density or number of housing units.At this time, it is unknown if the application will be approved or not, and if it is approved, it is unknown how many residential lots there will be. The Larger Parcel has no development entitlements and is appraised as unentitled residential land. BASIS OF VALUATION The market value for the property to be acquired is based upon an appraisal prepared in accordance with accepted appraisal principles and procedures. Code of Civil Procedure Section 1263.320 defines Fair Market Value as follows: (a) The fair market value of the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell,and a buyer,being ready,willing and able to buy but under no particular necessity for so doing,each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available. (b) The fair market value of property taken for which there is no relevant, comparable market is its value on the date of valuation as determined by any method of valuation that is just and equitable. California Government Code Section 7267.2 sets forth the obligations for a public entity to appraise and attempt to negotiate the purchase of real property that is sought to be acquired for a public project. Section 7267.2(a)(1)provides in pertinent part: A decrease or increase in the fair market value of real property to be acquired prior to the date of valuation caused by the public improvement for which :he property is acquired,or by the likelihood that the property would be acquired for the improvement, Page 90 ITEM NO. 7. APPRAISAL SUMMARY STATEMENT Page 2 of 4 other than that due to physical deterioration within the reasonable control of the owner or occupant, ball be disregarded in determining the compensation of the property. BASIC PROPERTY ACQUISITON DATA Interest Valued: Fee Simple Estate, partially encumbered by Public Right of Way Effective Date of Value Opinion: April 22,2024 Applicable Zoning: RC, Resource Conservation Area to be Acquired: 29,807 Square Feet of land in Fee consisting of 21,929 Square Feet of land Encumbered by Public Right of Way 7,878 Square Feet of land Unencumbered Highest and Best Use: Residential Current Use: Mostly vacant land with a home,barns,corral,and horse arena VALUATION Sales Comparison Approach in this approach, the local market was investigated for land sales of size, condition, and utility similar to the Larger Parcel.The Larger Parcel is suitable for residential development and the comparable sales are similar. I also considered the marketing history of the property. The property has a long history of being marketed for sale and the following table summarizes the listing activity from the Santa Clara County Multiple Listing Service (MLS).The property was originally listed for sale in September 2018 for$14,000,000.The property was re-listed for sale several times over the past six years with listings expiring or being cancelled.The asking price has been reduced several times to the most recent asking price of $5,998,000 ($5.08 per,square foot). This most recent listing was canceled February 21,2024. Four different real estate brokerage firms have listed the property. HISTORY OF MARKETING ACTIVITY Entry Cancelled Expired Original Per Revised Per MiS No Date Date Date Price Sq Ft Price Sq Ft Realtor 81723111 9/12/2018 3/11/2019 $14,000,000 $11.86 $12,000,000 $10.17 Cushman&Wakefield 81756346 6/12/2019 9/30/2020 $10,400,000 $8.81 $7,995,000 $6.78 Christie's 81756442 6/13/2019 9/30/2020 $10,400,000 $8.81 $7,995,000 $6.78 Christie's 81831602 2/26/2021 7/13/2021 $7,999,888 $6.78 Intern Real Estate 81853717 8/5/2021 9/14/2022 $7,998,000 $6.78 Boyenga Team 81871839 12/5/2021 9/14/2022 $7,998,000 $6.78 Boyenga Team 81929202 5/22/2023 10/30/2023 $7,998,000 $6.78 Boyenga Team 81951068 1/10/2024 2/21/2024 $5,998,000 $5.08 Boyenga Team Page 91 ITEM NO. 7. APPRAISAL SUMMARY STATEMENT Page 3 of 4 LAND SALES Zoning Sale Address Sale Date Grantor Acres General Plan Sale Price Terms& No APN Doc No Grantee S Ft S ciflc Plan Per Ft Circumstances Subject Property Asking N/A 27.090 RD Resource $7,998,000 N/A los Gatos Price 1,180,040 Conservation (Original) Santa Clara County Agricultural $6.78 537-27-047 Hillside Specific Plan $5,998,C00 2.5-10 acres per dwelling (Most Recent) min lot size one acre $5.08 1 401Surmont Dr 12/5/23 Laurie Bate 12.430 HR Hillside $3,000,000 Grant Deed available Los Gatos 25571085 Srikanth Kasa& 541,451 Residential 2.5(2.5-10) $5.54 at County Recorders Santa Clara County Swetha Poreddy Hillside Residential Office during normal 527-20-002 2.5-10 acres per dwellin i business hours Hillside Specific Plan 2.5-10 acres per dwelling min lot size one acre 2 300 Mountain Laurel Ln 10/21/20 The Dagney Group 8.137 HR Hillside $1,700,000 Grant Deed available Los Gatos 24664405 Kunling Wu 354,448 Residential 2.5(2.5-10) $4.80 at County Recorders Santa Clara County Hillside Residential Office during normal 567-24-023 2.5-10 acres per dwellin,= business hours Hillside Specific Plan 2.5-10 acres per dwelling min lot size one acre 3 Mireval Rd 7/13/23 Catherine Sturla 15.060 HR Hillside $1,120,000 Grant Deed available Los Gatos 25500141 RupinderSingh Rahal& 656,014 Residential 5(5-401 $1.71 at County Recorders Santa Clara County Balwinder Kaur Brar Hillside Residential Office during normal 532-25-027 2.5-10 acres per dwelling business hours Hillside Specific Plan 2.5-10 acres per dwelling min lot size one acre 4 15435 Blackberry Hill Rd 9/3/21 Triumph REO Assets 10.067 Hillside $1,170,000 Grant Deed available Los Gatos 25089194 Robert&Yaffe 438,519 Hillside $2.67 at County Recorders Santa Clara County Scranton In Santa Clara County Office during normal 532-25-015 Sphere of Influence business hours 10%interest-014 Los Gatos 5 11041 Stevens Canyon Rd 12/2/22 Viray Properties 19.670 RHS Residential $2,100,000 Grant Deed available Cupertino 25411063 Victor Zuniga Cabrera& 856,825 Hillside $2.45 at County Recorders Santa Clara County Hortencia Gonzalez Rodroguez Very Low Density Office during normal 342-19-002,003 Residential 5-20 Acres business hours 342-20-005 6 22315 Regnart Rd 2/7/22 Robert&Punita Bigler 5.270 RHS Residential $1,450,000 Grant Deed available Cupertino 25235151 Gangaswamy Kempahonnaiah& 229,561 Hillside $6.32 at County Recorders Santa Clara County Lathe Govindaraju Very Low Density Office during normal 366-02-032 Residential 5-20 Acres business hours After analyzing the comparable land sales and considering the marketing history of the Larger Parcel, I conclude to $5,00 per square foot for the Larger Parcel land outside of the Shannon Road public right of way. The Larger Parcel includes 21,929 square feet of land encumbered by the Shannon Road public right of way. The California Department of Transportation Right of Way Manual, Section 7.04.10.00 defines "underlying fee" as the portion of ownership encumbered by a public road easement. The public has virtually full control over the use of the land within this easement and the only right the underlying fee owner has is one of reversion. The underlying fee is typically valued at$1,00, which is the value I placed on the Larger Parcel land within the Shannon Road public right of way. Page 92 ITEM NO. 7. APPRAISAL SUMMARY STATEMENT f usG.,,,, A.Value of the Whole Before the Acquisition The unencumbered land is valued at$5.00 per square foot and the land encumbered by the public right of way is valued at$1.00. Fee Land 1,158,111 sgftx $5.00 persgft= $5,790,555 Public Road Easement 21,929 sq ft - $1 Total 1,180,040 sq ft $5,790,556 B.Value of the Part Acquired as Part of the Whole The unencumbered fee acquisition land is valued at the same $5.00 per square foot value as the unencumbered Larger Parcel.The acquisition of the land encumbered by the public right of way is valued at$1.00. Fee Land 7,878 sq ft x $5.00 per sq ft= $39,390 Public Road Easement 21,929 nominal value $1 Total 29,807 sq ft $39,391 C.Value of the Remainder as Part of the Whole The value of the Remainder is the value of the Larger Parcel less the Part Acquired.The Remainder land is unencumbered and is valued at$5.00 per square foot.All of the public right of way land is included in the acquisition. Fee Land 1,150,233 sq ft x $5.00 per sq ft= $5,751,165 D.Value of the Remainder After the Acquisition and Before Consideration of Benefits The value of the remainder after the acquisition and before consideration of benefits is considered to be the same as the value of the remainder as part of the whole. E.Severance Damages No severance damages were identified. F.Value of the Remainder After the Acquisition and After Consideration of Benefits The Value of the Remainder After the Acquisition and Considering Damages, but After Considering Benefits is enhanced compared to the Value of the Remainder After the Acquisition and Considering Damages, but Before Considering Benefits. G.Benefits The remainder property benefits from construction of the Project that will make repairs to Shannon Road. Benefits can only be used to offset damages, and no damages are identified.Therefore, benefits are not quantified as this time. FINAL VALUE OF THE PROPOSED ACQUISITION Based on the investigation and analysis, it is my opinion that the Fair Market Value of the Fee Simple Estate in the Proposed Partial Acquisition,as of April 22,2024 is$39,400. I declare under penalty of perjury that the foregoing is true and correct. Executed at San Ramon, California,this 8th day of May 2024. Terry S Larson, MAI Certified General Real Estate Appraiser State of California#AG007041, Exp. 11/30/2024 Page 93 ITEM NO. 7. EMINENT DOMAIN INFORMATIONAL PAMPHLET Introduction California Government Code Section 7267.2 requires that a public entity provide property owners with an informational pamphlet describing the eminent domain process and the property owners' rights under the Eminent Domain Law at the time the public entity offers to purchase the owners' property or portions of their property. This informational pamphlet provides a general overview of the eminent domain process and answers questions commonly asked by property owners regarding their rights. This is an informational pamphlet only and is not intended to give a complete statement of all state or federal laws and regulations regarding eminent domain or to provide property owners with any form of legal advice. Overview of The Eminent Domain Process What is eminent domain? Eminent domain is the acquisition of private property by a public entity for a public use. Public entities, such as the state and the federal government, counties, cities, redevelopment agencies, and school districts,may acquire real property for a public use if they meet all legal requirements, including the payment of just compensation to the property owners or into the court for the benefit of the owners. (CALIFORNIA CONSTITUTION, art. I, sec. 19). Public uses include, but are not limited to roads, sewer lines, parks,public facilities, police stations, fire stations, libraries,and schools. The acquisition of real property to remedy blight consistent with the Redevelopment Law is also a public use (Health and Safety Code Section 33000 el seq.). A public entity may acquire any interest in real property such as a fee interest, permanent easement, slope easement, or temporary construction easement. A public entity may acquire only the real property interests that are needed for the public use. If a public entity acquires a portion of a parcel and this results in damage to the remainder parcel, the owner is entitled to be compensated for the loss of value, if any, to the remainder parcel. This is called severance damages. If the appraiser determines that the remainder parcel will be left in a size, shape or condition to be of little or no value to the owner, the public entity will offer to purchase the entire parcel. The property owners can decide whether they want the public entity to acquire such uneconomic remnants. The law requires a public entity to make every reasonable effort to acquire property expeditiously by negotiated purchase. As discussed more fully below, there are several. steps that a public entity must take prior to acquiring property by eminent domain. These legal prerequisites are meant to protect property owners and to ensure that they have an opportunity to participate in the acquisition process. These preacquisition steps include the appraisal process,offers and negotiations. { Page 94 ITEM NO. 7. Eminent Domain Informational Pamphlet Page 2 of 9 Appraisal Process The public entity is required to obtain a fair market value appraisal of the real property before it can acquire it by eminent domain. Notice Informing Owners of Public Entity's Decision to Appraise Their Property When a public entity identifies a real property or real property interest ("subject property")that it may need for a proposed project, it sends to the property owners a 'notice informing the owners that it intends to appraise the subject property. This notice informs the owners that the public entity has decided to appraise the subject property and notifies them that an appraiser will be contacting them. An appraiser licensed by the Office of Real Estate Appraisers will contact the owners and request permission to inspect the subject property. The appraiser will also invite the property owners to accompany the appraiser on the inspection of the subject property and to provide to the appraiser any information that the owners consider relevant to the value of the property. Permitting the inspection and accompanying the appraiser on the site inspection will allow the appraiser to fully assess the value of the subject property. If the owners do not allow the appraiser to inspect the subject property, the appraiser will inspect it from the public right of way. Appraisal After the appraiser inspects the property, the appraiser prepares an appraisal of the fair market value of the property. What is fair market value? The Eminent Domain Law defines fair market value as the highest price on the date of value that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for selling the property, and a buyer,ready, willing and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available. (Code of Civil Procedure Section 1263.320). The appraisal will take into consideration the highest and best use of the property. It can take several weeks or months for an appraisal to be completed, depending on the appraiser's workload. After the appraisal is completed, staff will review the appraisal to see if it complies with the requirements of the Eminent Domain Law. Staff will then recommend that the governing body of the public entity approve the appraisal and set just compensation. Just compensation must be at least the fair market value of the property as set forth in the appraisal. Page 95 ITEM NO. 7. Eminent Domain Informational Pamphlet Page 3 of 9 Offer When will the property owners receive an offer to purchase the property? The public entity will provide the owner with a written offer to purchase the property after it sets just compensation. The public entity generally sends the written offer within thirty (30) days from the date on which the public entity sets just compensation. The public entity cannot offer to purchase the property for less than the fair market value of the property as determined by the appraisal. (Government Code Section 7267.2). What must the public entity include in the written offer to purchase the property? Government Code Section 7267.2 requires that the offer include a written statement of, and summary of the basis for,the amount the public entity established as just compensation. The offer must also include the following: • The date of value, highest and best use, and applicable zoning of property; • The principal transactions, reproduction or replacement cost analysis, or• capitalization analysis, supporting the determination of value; and • Where appropriate, a separate statement of the just compensation for the real property acquired and for damages to the remainder, including the calculations and narrative explanation supporting the compensation and any offsetting benefits. If the property is owner-occupied residential property and contains no more than four residential units, the owners are entitled to review a copy of the appraisal. Negotiations The public entity will negotiate with the property owners for the sale of the property after it sends the offer letter Do the property owners have the right to obtain their own appraisal of the property? Yes. Property owners have always had the right to obtain their own appraisal of their real property. As of January 1, 2007, however,the public entity must offer to pay the property owners' reasonable costs,up to $5,000.00,for an independent appraisal of their property. The law requires that an appraiser licensed by the Office of Real Estate Appraisers prepare the independent appraisal. The public entity will inform the owners Page 96 ITEM NO. 7. Eminent Domain Informational Pamphlet Page 4 of 9 of their rights to he reimbursed for these appraisal costs at the time it sends the offer letter. Are the property owners required to accept the public entity's offer to purchase the property? No. The property owners are encouraged to contact the public entity to negotiate the sale of the property. The owners can negotiate the amount they believe to be the fair market value of the property and the terms and conditions of the offer. Are there any advantages to selling the property to a public entity? Yes. The property owner will receive at least the fair market value of the property and will not be responsible for real estate commissions, title fees, title insurance, escrow fees, closing costs, and other fees and costs. Some acquisitions by public entities in lieu of condemnation may result in tax benefits to the property owners. The Internal Revenue Service will look at specific criteria to determine whether the acquisition by the public entity qualifies for tax benefits. Accordingly, property owners are encouraged to discuss any such tax benefits with their tax advisors. Negotiated Acquisition If a negotiated agreement for the sale of the property is reached, the public entity will prepare a purchase and sale agreement. In such cases, the conveyance of the property is handled through an escrow. Resolution of Necessity If the public entity and the property owners do not reach an agreement for the sale of the property, the public entity can hold a hearing to determine whether it will acquire the real property by eminent domain. Notice of Hearing on Resolution of Necessity If the public entity has determined that it is necessary to consider the acquisition of the real property by eminent domain, it will send a written notice to the property owners informing them of the date,time and location of the public entity's hearing at which it will consider the adoption of a resolution of necessity. (Code of Civil Procedure Section 1245.235). The notice informs the property owners of their right to be heard at this hearing and of their right to present evidence and to preserve their objections to the public entity's right to take the property. The Eminent Domain Law requires that a public entity make all of the following findings pursuant to Code of Civil Procedure Section 1245.230 to adopt a resolution of necessity authorizing the public entity to acquire the property by eminent domain: Page 97 ITEM NO. 7. Eminent Domain Infoi mational Pamphlet Page 5 of 9 • That the public interest and necessity require the project; • That the project is planned and located in the manner that will be most compatible with the greatest public good and the least private injury; • That the subject property is necessary for the project; and • That either the offer required by Section 7267.2 of the Government Code has been made to the owner or owners of record, or the offer has not been made because the owner cannot be located with reasonable diligence. A public entity may adopt a resolution of necessity only after the governing body has given each person whose property is to be acquired by eminent domain and whose name and address appears on the last equalized assessment roll notice and a reasonable opportunity to appear and be heard on the above matters. The governing body of the public entity will consider all written and oral evidence before it at the hearing, including any objections to the adoption of the resolution of necessity. The public entity can adopt a resolution of necessity authorizing the acquisition of property by eminent domain if at least two-thirds of the all of the members of the governing body vote to adopt the resolution. If the governing body consists of five members, the adoption of a resolution of necessity requires at least four out of five affirmative votes. Eminent Domain Proceeding The resolution of necessity is the document that authorizes the public entity's attorneys to commence an eminent domain proceeding. Accordingly, if the governing body of the public entity adopts a resolution of necessity, its attorneys will prepare a complaint in eminent domain and related pleadings to acquire the property by eminent domain. Generally,the complaint in eminent domain will name as defendants any parties that have a recorded interest in the parcel, including the record owners, tenants, easement holders whose interests may be impacted by the acquisition of the property or beneficiaries under deeds of trust. The public entity will serve the property owners and other named defendants with a copy of the summons, complaint and related documents filed with the court. The defendants served with the summons and complaint have thirty (30) days from the date that they are served with the summons and complaint to file an answer or responsive pleading with the court. (Code of Civil Procedure Section 412.20). Property owners should consider retaining an attorney with experience in eminent domain proceedings to represent them in such proceedings. The parties can continue to negotiate after the eminent domain proceeding is filed. Page 98 ITEM NO. 7. Eminent Domain Informational Pamphlet Page 6 of 9 Orders for Prejudgment Possession and Deposit of Probable Compensation Can the public entity take possession of the property before trial? A public entity may request an order from the court for early possession of the property. This is called an order for prejudgment possession. Deposit of Probable Compensation To obtain an order for prejudgment possession, the public entity must show that it is entitled to acquire the property by eminent domain and that it has deposited with the court for deposit into the county treasury or directly with the State Treasury the amount of probable compensation for the real property. The public entity must submit a summary of the basis for the appraisal when it applies to deposit the amount of probable compensation with the court. The date on which the public entity deposits the probable amount of compensation is generally the date of value in the proceeding. This means that the appraisers for the public entity and property owners will determine the fair market value of the real property in the eminent domain proceeding as of the date of value. Objection to Motion for an Order for Possession Property owners have the right to oppose a public entity's motion for an order for prejudgment possession. The public entity's motion for an order for prejudgment possession notifies property owners that they have the right to oppose the motion and that they must serve the public entity and file with the court the opposition to the motion within thirty (30)days from the date on which the property owner was served with the motion. If the property owners' opposition asserts a hardship, it has to be supported by a declaration signed under penalty of perjury stating facts supporting the hardship. The public entity can file a reply to the opposition not less than fifteen(15) days before the hearing. At the hearing, if the motion is opposed,the court may enter an order for possession of the property after considering the relevant facts and any opposition if it finds each of the following: • The public entity is entitled to take the property by eminent domain; • The public entity has deposited the amount of probable compensation pursuant to Code of Civil Procedure Section 1255.010 et seq.; • There is an overriding need for the public entity to possess the property prior to the issuance of final judgment in the case and the public entity will suffer a substantial hardship if the application for possession is denied or limited; and • The hardship that the public entity will suffer if possession is denied or limited outweighs any hardship on the defendant or occupant that would Page 99 ITEM NO. 7. Eminent Domain Informational Pamphlet Page 7 of 9 be caused by the granting of the order for possession. (Code of Civil Procedure Section 1255.410). Withdrawal of Deposit of Probable Compensation Property owners can apply to withdraw the funds on deposit with the court. Property owners must serve a copy of their application to withdraw the funds on the public entity. The court cannot order the disbursement of the funds on deposit until twenty (20) days after the date on which the application for withdrawal was served on the public entity. The public entity may file an objection to the withdrawal if, for example, other parties to the proceeding are known or believed to have an interest in the just compensation. Property owners waive any challenges to the public entity's right to take if they withdraw the funds on deposit with the court. Property owners do not, however, waive their claims for greater compensation for the property if they withdraw the funds on deposit. Exchange of Valuation Data The parties can agree to exchange statements of valuation data containing the information required by Code of Civil Procedure Section 1258.260 or appraisal reports containing that information on a mutually-agreed to date. If the parties do not mutually agree to exchange valuation data on a specific date,the date of exchange is ninety (90) days before the commencement of trial on the issue of just compensation. This gives the parties the opportunity to analyze the fair market value opinions of the other party's expert and sales data or appraisal methodology relied on by the other party's expert. The parties will generally take the depositions of the other party's appraiser. After the parties exchange valuation data, the parties often negotiate a settlement at a mediation, during informal settlement negotiations, or during a mandatory settlement conference. Trial In eminent domain proceedings.the judge decides legal issues, such as the right to take,the issue of what constitutes a larger parcel, and the issue of entitlement to certain damages. Property owners are entitled to have the jury determine the amount of j ust compensation. The parties resolve the majority of eminent domain proceedings prior to trial. Vacating the Property When will property owners and tenants be required to move from the property? If the public entity and property owners reach a negotiated settlement, the public entity will attempt to determine a mutually agreeable date for owners to move. If the property is condemned, the public entity cannot require the owners to move without a Page 100 ITEM NO. 7. Eminent Domain Informational Pamphlet Page 8 of 9 court order. If the subject property is lawfully occupied, the public entity must serve the property owners with a motion for an order for prejudgment possession ninety (90) days before the court hearing. Orders for prejudgment possession are discussed more fully above. If the order for prejudgment possession is granted,the public entity must serve the property owners with the order thirty (30) days before it intends to take possession of the subject property. If the subject property is unoccupied, the public entity must serve the property owners with a motion for an order for possession sixty (60) days before the court hearing. If the order for prejudgment possession is granted, the public entity must serve the property owners with the order for prejudgment possession ten days before it intends to take possession of the subject property. Relocation Assistance Property owners and occupants of property (tenants)that are displaced as the result of a public project, may be entitled to relocation assistance and benefits under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seg.), if applicable,or under Title 1, Division 7, Chapter 1 of the Government Code of the State of California(Section 7260 et seq.) and the Relocation Assistance and Real Property Acquisition Guidelines(Chapter 6 of Title 25 of the California Code of Regulations). Benefits may include moving expenses, re- establishment costs, rent differential payments, or interest differential payments. A relocation consultant, hired by the public entity, will meet with the property owners and or tenants to determine their eligibility and potential benefits. Loss of Business Goodwill Goodwill is the benefit that accrues to a business as a result of its location, reputation, skill and other factors that contribute to a business maintaining and acquiring patrons. Public entities are required to compensate owners of a business conducted on the property, or on the remainder parcel, if the business owners prove all of the following: • The loss is caused by the taking of the property or the injury to the remainder; • The loss cannot reasonably he prevented by taking steps and adopting procedures that a reasonably prudent person would take and adopt in preserving the goodwill; • Compensation for the loss will not be included in payments under Section 7262 of the Government Code. • Compensation for the loss will not duplicated in the compensation otherwise awarded to the owner. Page 101 ITEM NO. 7. Eminent Domain Informational Pamphlet Page 9 of 9 Business owners must raise their claim for loss of business goodwill in their answer to the public entity's complaint. The public entity will engage a business valuation expert to determine the value of the goodwill of the business in the eminent domain proceeding. Business owners also generally engage a business valuation expert in the eminent domain proceeding. Page 102 ITEM NO. 7. Page 103 ITEM NO. 7. � x x PARKS&PUBLIC WORKS DEPARTMENT SERVICE CENTER • 4444+ PHONE(408)399-5770 41 MILES AVENUE P -, 't Los GATOS,CA 95030 VIA EMAIL AND CERTIFIED MAIL June 4, 2024 Ray M. Elam,III Trustee,Elam Family Trust 1432 Sea Ridge Drive Newport Beach, CA 92660 E-mail: budelam@gmail.com Re: Offer Pursuant to Government Code Section 7267.2 to Acquire a Portion of 14915 Shannon Road,Los Gatos, CA (APN 537-27-047) Dear Mr. Elam: The Town of Los Gatos ("Town")is offering to purchase a portion of your property located at 14915 Shannon Road, Los Gatos, CA (APN 537-27-047) ("Larger Parcel"). The purpose of this letter is to transmit a formal offer to acquire a portion of the Larger Parcel from you pursuant to Government Code section 7267.2. The Town proposes to acquire an approximately 29,807 square foot portion of the Larger Parcel comprised of: (a)an approximately 21,929 square foot strip of land within the existing Shannon Road right of way; and (b) an approximately 7,878 square foot strip of land along the Larger Parcel's frontage on Shannon Road(the "Subject Property"). A detailed legal description of the Subject Property is attached hereto as Exhibit 1. The Town needs to acquire the Subject Property for the Shannon Road Capital Improvement Project(CJP No. 811- 0008) (the"Project"). The Project will repair the roadbed,increase Shannon Road's pavement width, install guardrails, and install retaining walls on the north side of the road. The Subject Property is within the area of the Project, and acquisition of the Subject Property is necessary for the Project. The Town would prefer to resolve this matter by negotiated purchase. Section 7267.2 of the Government Code requires the Town to make you an offer which represents the appraised fair market value of the property necessary for the Project. The Town offers the sum of Thirty-Nine INCORPORATED A UGUST 10,1887 Page 104 EXHIBIT 4 ITEM NO. 7. Thousand Four Hundred and no/100 Dollars ($39,400.00)for the Subject Property,which is more particularly described and depicted in the exhibits attached to the Summary Statement and Summary of the Basis for Just Compensation ("Summary Statement"), attached hereto as Exhibit 2. The Summary Statement demonstrates the value of the Subject Property. As provided in Government Code Section 7267.2, the offer is conditioned upon the Town Council's approval of the offer by either execution of a contract of acquisition or adoption of a Resolution of Necessity. Furthermore,pursuant to Code of Civil Procedure Section 1263.025(a), the Town will pay the reasonable costs,not to exceed Five Thousand Dollars ($5,000.00), of an independent appraisal of the Subject Property, ordered by you. To be eligible for reimbursement,the independent appraisal must be conducted by an appraiser licensed by the State Office of Real Estate Appraisers. In addition,pursuant to Code of Civil Procedure Section 1263.615, the Town is unable to offer you continued use of the fee interest after acquisition because the Town will begin the Project within two years of the acquisition. Finally, attached hereto as Exhibit 3 is an informational pamphlet describing the eminent domain process and your rights under the Eminent Domain Law. As indicated,the Town would like to resolve this matter with you by agreement, as the Town believes that a negotiated purchase best serves everyone's interests. If you ultimately elect to reject the Town's offer for the Subject Property, and the Town chooses to proceed with acquiring the Subject Property through the eminent domain process,you are entitled to have the amount of compensation determined by a court of law in accordance with the laws of the State of California. Please do not hesitate to contact me if you have any questions. Sincerely, Town of Los Gatos Ncolle urnham{ Director of Parks and Public Works Exhibits 1. Final Grant of Right of Way Description 2. Appraisal Summary Statement 3. Eminent Domain Infotmation Pamphlet CC: Gabrielle Whelan(via email only to gwhelan@losgatosca.gov) Jennifer Armer(via email only to jarmer@losgatosca.gov) Gary Heap (via email only to gheap@losgatosca.gov) Nicholas Muscolino (via email only to nmuscolino@bwslaw.com) INCORPORATED AUGUST 10,.1887 Page 105 ITEM NO. 7. EXHIBIT A LEGAL DESCRIPTION Shannon Road Grant of Right of Way AI! that certain real property situate in the Town of Los Gatos,County of Santa Clara,State of California, being a portion of the lands granted to Diane Barnett and Ray M. Elam, III as Co- Trustees of the Elam Family Trust A by deed filed for record May 29, 2015 as Document 22970019 in the office of the Santa Clara County Recorder, being more particularly described as follows: Commencing at an iron pipe in monument box located at the northerly terminus of that certain course shown as "N 46° 11' 21" W, 394.60"'on the map entitled "Record of Survey of the Monument Line of Shannon Road..."filed for record July 13, 1978 in Book 422 of Maps at Pages 39-46 in said Recorder's office; said course being depicted on sheet 4 of 8 therein,thence from said point of commencement North 07°12'24"West, 26.58 feet to the true Point of Beginning of this description;thence South 55°48'03" East, 31.91 feet;thence South 48°26'38" East, 45.97 feet;thence South 46°41'49" East, 107.02 feet;thence South 45'34'03" East, 124.07 feet to the beginning of a curve concave northeasterly having a radius of 500.00 feet;thence southeasterly along the arc of said curve 74.81 feet through a central angle of 08°34'21 to the beginning of a non-tangent curve concave northeasterly having a radius of 350.00 feet, from which point the radius bears North 34°44'06" East;thence southeasterly along the arc of said curve 99.18 feet through a central angle of 16°14'09";thence South 71°30'03" East, 57.32 feet to the beginning of a curve concave southerly having a radius of 375.00 feet; thence easterly along the arc of said curve 38.43 feet through a central angle of 5°52'20";thence South 65°37'44" East, 153.47 feet;thence North 24°22'16" East, 5.00 feet;thence South 65°37'44" East, 9.00 feet;thence South 24°22'16" West,5.00 feet;thence South 65°37'44" East, 33.94 feet;thence North 24°22'16" East, 33.00 feet; thence South 65°37'44" East, 20.00 feet;thence South 24°22'16" West, 33.00 feet;thence South 65°37'44" East, 68.97 feet to the beginning of a curve concave southerly having a radius of 325.00 feet;thence southeasterly 44.19 feet through a central angle of 07°47'28";thence South 57°50' 15' East, 25.21 feet;thence North 32°09'45" East, 5.00 feet;thence South 57°50'15" East, 10.00 feet;thence South 32°09'45" West, 5.00 feet;thence South 57°50'15" East, 33.40 feet to the beginning of a non-tangent curve concave southwesterly having a radius of 335.00 feet,from which point the radius bears South 43'55'48"West;thence southerly along the arc of said curve 54.96 feet through a central angle of 09°24'00";thence South 25°59'14" East, 57.73 feet to a point in the westerly line of that certain 72.14 acre tract granted to Manuel F. Escover by deed dated November 27, 1922, filed for record in Book 566 of Deeds at Page 403 in said Recorder's office, from which point an iron pipe in monument box located at the southerly terminus of that certain course shown as "N 30°09'0S"W, 240.63 " on sheet 4 of said Record of Survey bears South 16°54'19" East, 167.68 feet;thence along said westerly line South 23°40'51"West,38.50 feet to an iron pipe set at the southwesterly corner of said 72.14 acre tract; said corner being further described as Page 1 of 2 Page 106 f /TEMwo z LEGAL DESCRIPTION (cont.) Shannon Road Grant mf Right ofWay lying in the center of Shannon Road;thence along the southwest line of said lands of Elam et. al., said southwest line also being the centerline of Shannon Road,the following courses and distances, each as shown on that certain map entitled "Record of Survey of a portion of Shannon Road"filed for record May, 2R, 2O24|n Book 962 of Maps at Page lOinsaid Recorder's office, North 24"2l'18° West, %Q.92 feet tm the beginning mf a curve concave southwesterly having a radius of 285.00 feet;thence northwesterly along the arc of said curve 314'93feet through a central angle of43"12'32";thence North G7"93^47°West,69.36 feet to the beginning of a curve concave northerly having a radius of 500.00 feet;thence northwesterly along the arc mf said curve 25.85 feet through a central angle of02"58'26°;thence North G4"35'31^ West, 15D.38 feet to the beginning ofa curve concave southerly having a radius of 750.00 feet;thence westerly along the arc of said curve 90.05 feet through a central angle of 06,52'46";thence North 7l,28'07" West,42.O3 feet tm the beginning ofa curve concave northerly having a radius of 360.00 feet;thence northwesterly along the arc of said curve 161.26 feet through m central angle qfJ5~39^S4";thence North 4S"48'13° West, 199.O8 feet to the beginning of a curve concave southwesterly having a radius of 2,500.00 feet;thence northwesterly along the arc of said curve 127.44 feet through a central angle of 02'55'14"; thencefeavingsaidcenter||meofShanomnNoodNorth41"1G/33" Emst, 2O.00fecttothepo|ntof beginning. Conta|ninQ29,8O7 square feet, more orless. Bearings used in this description are based upon the California Coordinate System ofl983 (CC583), Zone 3. Prepared under the direction of: �,ANb ' ' 42 OF CA100"�7' Charles &U. VV L.Si6421 Page 2of2 poge1o7 ITEM NO. 7. \ep a -- `-----Point of Beginning `tea `,r- `� DATUM NOTE:_ _ CURVE DATA TABLE ` ),' -- NO. -DELTA --1-_LENGTH RADIUS "'' ' Bearings shown are based upon the California , e;.: ''- '-,.! Coordinate System of 1983 �C1' 08°34'21" 74.81' 500.00' `. �� Q C2 16°14'09" 99.18' 350.00' {CC519$3,Zone 3,epoch 2021.3. �sr ,,s`C. ��y^ ) p C3 j 05°52'20"1 38.43' 375.00' Qom ,%., �� 4o �. Point of o.P�.a' i <'° .�� ' !` moo op California LINE DATA TABLE Commencement, S S , es Fnd.monument • Sr ap r. r`x 1 � � NO-.7 BEARING 'DISTANCE per R-1 O-F < ,,', , ��� L1 NOT 12'24"W 26.58' N:1,907,166.93 \ -y 2 v`°�� �O L2 S55°48'03"E 31.91' E:6,145,747.40 • �S° ' / ,'-' O ct L3 548°26'38"E 45.97' 176', ; S° L4 571'30'03"E 57.32' -- ÷ 'r,'w . . `ti,4, ( L5 S65°37 44"E 153.47' CI 9 11' o L23 N71°28'07"W 42.02' �, /;, ,:•,,a�., New R/W Line stl C \4/ ‘1' f,=`,F L24 N41°16'33"E 20.00' _j ,..;,'', , h •ash tjr' 19 ,, �'� a pp'z!�it. ���- ,,;v '.z 1 ���a Right of Way \ ' '�., ��___ _ ±sq.ft. -.7 , ,c, / LEGEND Cl or L1 See curve or line data table Occupational 4. 4, � �'>"t �c Rad Radial Bearing per 2023 urveyer •• ?s°3 S3 {"y> { � �4 �S�'e (Property p cr,. °°, A, , X M1 R-1 Bk.422 Maps,Pg.39-46 Deed Reference) ' ,'` ^. ♦ C3 EXHIBIT B C23 {I7 ' Plat to Accompany Legal Description \� j •,,,,/ \•z`\J �'5 GRAPHIC SCALE 4,'90'0s' / 6a 0 30 5a 1 ```` °6 S R,yS ✓` }: ..< MOUNTA[ N PACIFIC �4e"�0°'" '"'. . do" -..,., SURVEYS �`' 1735 Enterprise Dr,Suite log PH (707)425-6234 1 inch= 60 ft. y` Fairfield,CA 94533 FAX (707)425-1969 Scale: 1"=60' Date:April 19,2024 Proj.No.521058 Sheet No.: 1 of 21 \-,„,. Page 108 ITEM NO. 7. /` y/\ opC„ �{ s (za(,.9 os a �$°3 , �O ©94 r' 4e0�° Rod `".ny. r � Sz, SO 0 , IS L6 L7w(@®f, �� h. 3 Ctij `� L8 [ I \ S/y ° s,2"I.w; �, '`,4 NA, (g "° 'I Right of Way _ PTI _ �T .S zi w� j C ^�v' 29,807±sq.ft. m �+ -2e, � \7 7"-. z a`, R v ,<, , /, New R/W Line NO.;� BEARING DISTANCE - Li� S �S6 5 ,4��{ ',', Cq L15L16 �� ___ ;\ L61 N24°22'16"E 5.00' �� . 92S'� �".. 1st , L17 4y� a\ L7_I 565°37'44"E 9.40` Occupational 4.. / ' �"� 2.',,, `�.>,r �1>?' ea L8 524°22'16"W S.OQ'µ per 2023 Survey -' C� \, d � •a$L9 565°3T 44"E 1 _33.9�#* (Property Line per 4.` ,9`•/" r`�.�, y' L10, N24°22'16"E 33.00' `g :'>.\/" r\ g3 Deed Reference) �'° .p � 5 L11 S65°37'44"E 2E00 `7 oa f"`<�,f(s L22 S24°222 16"W _ 33,OQ' ' ..'' ` `V 113 565°37, ,�__ 68.97' LEGEND ` ''sa /\,%�, /4/114 S57°50'15"E 25.21' C1 or L1 See curve or line data table ti o I L15 N32°09'45'E 5.00' Rad Radial Bearing s'\c' M I L16} 557°50'15"E 10.00' , L17 S32°09'45"W__ 5.00' R-1 Bk.422 Maps,Pg.39-46 \ \`/ ><' ' . L18 557°50'15"E 33.40' ___ _ ; -'' I L19 525°59'14"E 57.73' NO. DELTA �_ LENGTH { RADIUS_ \ K.'\ �� L20 S16°54'19"E i167.68' i C3 05'52'20" 38.43` 375.00' \ rr, < �� gm S23°40'51"W 38.50'_ I C4 07°47'28" 44.19' 325.00' to` \ t L22 N24°21'16"W _20.92' i C5 09°24'00" 54.96' 335.00' �/ L23 N71°28'07"W 42.02'~ :C6 02°58'26" 25.95' 1500.00' \ a —_ — — \ \\ 'ems EXHIBIT B \ \‘ \ Plat to Accompany Legal Description { t GRAPHIC SCALE \ \V 60 0 30 60 Fnd.monument �S\ r,MOUNTAIN PACIFIC perR-1 �. o. ' S U R V E Y S N:1,946,431.20 \it o 1735 Enterprise Dr,Suite 109 PH (707)425-6234 1 inch= 60 ft. E:6,146,674.22 co o Fairfield,CA 94533 FAX(707}425-1969 Scale: 1"=60' Date:April 19,2024 Proj.No.521058 Sheet No.: 2 of 2` 4.) \v Page 109 ITEM NO. 7. APPRAISAL SUMMARY STATEMENT Page 1 of 4 PROPERTY AND PROJECT INFORMATION Project: Shannon Road Capitol Improvement Project Parcel No.: 521058 APN: 537-27-047 Owner: Elam Date Acquired: Many years ago Property Address: 14915 Shannon Road Locale: Los Gatos,Santa Clara County, California Total Property Area: 27.09 acres of land Property to be Acquired: Partx All Including Access Rights: Yes Nox� Development Application: A Development Application has been submitted to Los Gatos to create nine residential lots on the property. According to City Planning, it has received negative feedback. Concerns include challenges developing on the hillside and the proposed density or number of housing units.At this time, it is unknown if the application will be approved or not, and if it is approved, it is unknown how many residential lots there will be. The Larger Parcel has no development entitlements and is appraised as unentitled residential land. BASIS OF VALUATION The market value for the property to be acquired is based upon an appraisal prepared in accordance with accepted appraisal principles and procedures. Code of Civil Procedure Section 1263.320 defines Fair Market Value as follows: (a) The fair market value of the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell,and a buyer, being ready,willing and able to buy but under no particular necessity for so doing,each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available. (b) The fair market value of property taken for which there is no relevant, comparable market is its value on the date of valuation as determined by any method of valuation that is just and equitable. California Government Code Section 7267.2 sets forth the obligations for a public entity to appraise and attempt to negotiate the purchase of real property that is sought to be acquired for a public project.Section 7267.2(a)(1) provides in pertinent part: A decrease or increase in the fair market value of real property to be acquired prior to the date of valuation caused by the public improvement for which tie property is acquired,or by the likelihood that the property would be acquired for the improvement, Page 110 ITEM NO. 7. APPRAISAL SUMMARY STATEMENT other than that due to physical deterioration within the reasonable control of the owner or occupant, shall be disregarded in determining the compensation of the property. BASIC PROPERTY ACQUISITON DATA interest Valued: Fee Simple Estate, partially encumbered by Public Right of Way Effective Date of Value Opinion: April 22,2024 Applicable Zoning: RC, Resource Conservation Area to be Acquired: 29,807 Square Feet of land in Fee consisting of 21,929 Square Feet of land Encumbered by Public Right of Way 7,878 Square Feet of land Unencumbered Highest and Best Use: Residential Current Use: Mostly vacant land with a home,barns,corral,and horse arena VALUATION Sales Comparison Approach In this approach, the local market was investigated for land sales of size, condition, and utility similar to the Larger Parcel.The Larger Parcel is suitable for residential development and the comparable safes are similar. I also considered the marketing history of the property. The property has a long history of being marketed for sale and the following table summarizes the listing activity from the Santa Clara County Multiple Listing Service (MLS).The property was originally listed for sale in September 2018 for$14,000,000.The property was re-listed for sale several times over the past six years with listings expiring or being cancelled.The asking price has been reduced several times to the most recent asking price of $5,998,000 ($5.08 per,square foot). This most recent listing was canceled February 21,2024. Four different real estate brokerage firms have listed the property. HISTORY OF MARKETING ACTIVITY Entry Cancelled Expired Original Per Revised Per MIS No Date Date Date Price Sq Ft Price Sq Ft Realtor 81723111 9/12/2018 3/11/2019 $14,000,000 $11.86 $12,000,000 $10.17 Cushman&Wakefield 81756346 6/12/2019 9/30/2020 $10,400,000 $8.81 $7,995,000 $6.78 Christie's 81756442 6/13/2019 9/30/2020 $10,400,000 $8.81 $7,995,000 $6.78 Christie's 81831602 2/26/2021 7/13/2021 $7,999,888 $6.78 Intern Real Estate 81853717 8/5/2021 9/14/2022 $7,998,000 $6.78 Boyenga Team 81871839 12/5/2021 9/14/2022 $7,998,000 $6.78 Boyenga Team 81929202 5/22/2023 10/30/2023 $7,998,000 $6.78 Boyenga Team 81951068 1/10/2024 2/21/2024 $5,998,000 $5.08 Boyenga Team Page 111 ITEM NO. 7. APPRAISAL SUMMARY STATEMENT Page 3 of 4 LAND SALES Zoning Sale Address Sale Date Grantor Acres General Plan Sale Price Terms& No APN Doc No G• rantee Su Ft S cific Plan Per Ft Circumstances Subject Property Asking J .N.. N/A ..._<v. _ 27.090 RD Resource $7,998,000 N/A Los Gatos Price 1,180,040 Conservation (Original) Santa Clara County Agricultural $6.78 537-27-047 Hillside Specific Plan $5,998,90 2.5-10 acres per dwelling (Most Recent) min lot size one acre $5.08 1 401Surmont Dr 12/5/23 Laurie Bate 12.430 HR Hillside $3,000,000 Grant Deed available Los Gatos 25571085 Sri kanth Kasa& 541,451 Residential 2.5(2.5-10) $5.54 at County Recorders Santa Clara County Swetha Poreddy Hillside Residential Office during normal 527-20-002 2.5-10 acres per dwell i nilbusiness hours Hillside Specific Plan 2.5-10 acres per dwelling min lot size one acre 2 300 Mountain Laurel Ln 10/21/20 The Dagney Group 8.137 HR Hillside $1,700,000 Grant Deed available Los Gatos 24664405 KunlingWu 354,448 Residential 2.5(2.5-10) $4.80 at County Recorders Santa Clara County Hillside Residential Office during normal 567-24-023 2.5-10 acres per dwelline business hours Hillside Specific Plan 2.5-10 acres per dwelling min lot size one acre 3 Mireval Rd 7/13/23 Catherine Sturia 15.060 HR Hillside $1,120,000 Grant Deed available Los Gatos 25500141 RupinderSingh Rahai& 656,014 Residential 5(5-4011 $1.71 at County Recorders Santa Clara County Balwinder Kaur Brar Hillside Residential Office during normal 532-25-027 2.5-10 acres per dwelling business hours Hillside Specific Plan 2.5-10 acres per dwelling min lot size one acre _ 4 15435 Blackberry Hill Rd 9/3/21 Triumph RED Assets 10.067 Hillside $1,170,000 Grant Deed available Los Gatos 25089194 Robert&Yaffe 438,519 Hillside $2.67 at County Recorders Santa Clara County Scranton In Santa Clara County Office during normal 532-25-015 Sphere of Influence business hours 10%interest-014 Los Gatos 5 11041 Stevens Canyon Rd 12/2/22 Viray Properties 19.670 RHS Residential $2,100,000 Grant Deed available Cupertino 25411063 Victor Zuniga Cabrera& 856,825 Hillside $2.45 at County Recorders Santa Clara County Hortencia Gonzalez Rodroguez Very Low Density Office during normal 342-19-002,003 Residential 5-20 Acres business hours 342-20-005 6 22315 Regnart Rd 2/7/22 Robert&Punita Bigler 5.270 RHS Residential $1,450,000 Grant Deed available Cupertino 25235151 Gangaswamy Kempahonnaiah& 229,561 Hillside $6.32 at County Recorders Santa Clara County Latha Govindaraju Very Low Density Office during normal 366-02-032 Residential 5-20 Acres business hours After analyzing the comparable land sales and considering the marketing history of the Larger Parcel, I conclude to $5.00 per square foot for the Larger Parcel land outside of the Shannon Road public right of way. The Larger Parcel includes 21,929 square feet of land encumbered by the Shannon Road public right of way. The California Department of Transportation Right of Way Manual, Section 7.04.10.00 defines "underlying fee" as the portion of ownership encumbered by a public road easement. The public has virtually full control over the use of the land within this easement and the only right the underlying fee owner has is one of reversion. The underlying fee is typically valued at$1.00, which is the value I placed on the Larger Parcel land within the Shannon Road public right of way. Page 112 ITEM NO. 7. APPRAISAL SUMMARY STATEMENT rasc., A.Value of the Whole Before the Acquisition The unencumbered land is valued at$5.00 per square foot and the land encumbered by the public right of way is valued at$1.00. Fee Land 1,158,111 sq ft x $5.00 per sq ft= $5,790,555 Public Road Easement 21,929 sq ft = $1 Total 1,180,040 sq ft $5,790,556 B.Value of the Part Acquired as Part of the Whole The unencumbered fee acquisition land is valued at the same $5.00 per square foot value as the unencumbered Larger Parcel.The acquisition of the land encumbered by the public right of way is valued at$1.00. Fee Land 7,878 sq ft x $5.00 per sq ft= $39,390 Public Road Easement 21,929 nominal value $1 Total 29,807 sq ft $39,391 C.Value of the Remainder as Part of the Whole The value of the Remainder is the value of the Larger Parcel less the Part Acquired.The Remainder land is unencumbered and is valued at$5.00 per square foot.All of the public right of way land is included in the acquisition. Fee Land 1,150,233 sq ft x $S.60 per sq ft= $5,751,165 D.Value of the Remainder After the Acquisition and Before Consideration of Benefits The value of the remainder after the acquisition and before consideration of benefits is considered to be the same as the value of the remainder as part of the whole. E.Severance Damages No severance damages were identified. F.Value of the Remainder After the Acquisition and After Consideration of Benefits The Value of the Remainder After the Acquisition and Considering Damages, but After Considering Benefits is enhanced compared to the Value of the Remainder After the Acquisition and Considering Damages, but Before Considering Benefits. G. Benefits The remainder property benefits from construction of the Project that will make repairs to Shannon Road. Benefits can only be used to offset damages, and no damages are identified.Therefore, benefits are not quantified as this time. FINAL VALUE OF THE PROPOSED ACQUISITION Based on the investigation and analysis, it is my opinion that the Fair Market Value of the Fee Simple Estate in the Proposed Partial Acquisition,as of April 22,2024 is$39,400.I declare under penalty of perjury that the foregoing is true and correct. Executed at San Ramon, California,this 8ih day of May 2024. Terry S Larson, MAI Certified General Real Estate Appraiser State of California #AG007041, Exp. 11/30/2024 Page 113 ITEM NO. 7. EMINENT DOMAIN INFORMATIONAL PAMPHLET Introduction California Government Code Section 7267.2 requires that a public entity provide property owners with an informational pamphlet describing the eminent domain process and the property owners' rights under the Eminent Domain Law at the time the public entity offers to purchase the owners' property or portions of their property. This informational pamphlet provides a general overview of the eminent domain process and answers questions commonly asked by property owners regarding their rights. This is an informational pamphlet only and is not intended to give a complete statement of all state or federal laws and regulations regarding eminent domain or to provide property owners with any form of legal advice. Overview of The Eminent Domain Process What is eminent domain? Eminent domain is the acquisition of private property by a public entity for a public use. Public entities, such as the state and the federal government, counties, cities, redevelopment agencies, and school districts,may acquire real property for a public use if they meet all legal requirements, including the payment of just compensation to the property owners or into the court for the benefit of the owners. (CALIFORNIA CONSTITUTION, art. I, see. 19). Public uses include, but are not limited to roads, sewer lines, parks,public facilities, police stations, fire stations, libraries, and schools. The acquisition of real property to remedy blight consistent with the Redevelopment Law is also a public use (Health and Safety Code Section 33000 el seq.). A public entity may acquire any interest in real property such as a fee interest, permanent easement, slope easement, or temporary construction easement. A public entity may acquire only the real property interests that are needed for the public use. If a public entity acquires a portion of a parcel and this results in damage to the remainder parcel, the owner is entitled to be compensated for the loss of value, if any, to the remainder parcel. This is called severance damages. If the appraiser determines that the remainder parcel will be left in a size, shape or condition to be of little or no value to the owner, the public entity will offer to purchase the entire parcel. The property owners can decide whether they want the public entity to acquire such uneconomic remnants. The law requires a public entity to make every reasonable effort to acquire property expeditiously by negotiated purchase. As discussed more fully below, there are several steps that a public entity must take prior to acquiring property by eminent domain. These legal prerequisites are meant to protect property owners and to ensure that they have an opportunity to participate in the acquisition process. These preacquisition steps include the appraisal process,offers and negotiations. X. ;~1 1i- Page 114 ITEM NO. 7. Eminent Domain Informational Pamphlet Page 2 of 9 Appraisal Process The public entity is required to obtain a fair market value appraisal of the real property before it can acquire it by eminent domain. Notice Informing Owners of Public Entity's Decision to Appraise Their Property When a public entity identifies a real property or real property interest ("subject property") that it may need for a proposed project, it sends to the property owners a notice informing the owners that it intends to appraise the subject property. This notice informs the owners that the public entity has decided to appraise the subject property and notifies them that an appraiser will he contacting them. An appraiser licensed by the Office of Real Estate Appraisers will contact the owners and request permission to inspect the subject property. The appraiser will also invite the property owners to accompany the appraiser on the inspection of the subject property and to provide to the appraiser any infoitnation that the owners consider relevant to the value of the property. Permitting the inspection and accompanying the appraiser on the site inspection will allow the appraiser to fully assess the value of the subject property. If the owners do not allow the appraiser to inspect the subject property, the appraiser will inspect it from the public right of way. Appraisal After the appraiser inspects the property, the appraiser prepares an appraisal of the fair market value of the property. What is fair market value? The Eminent Domain Law defines fair market value as the highest price on the date of value that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for selling the property, and a buyer, ready, willing and able to buy but under no particular necessity for so doing,each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available. (Code of Civil Procedure Section 1263.320). The appraisal will take into consideration the highest and best use of the property. It can take several weeks or months for an appraisal to be completed, depending on the appraiser's workload. After the appraisal is completed, staff will review the appraisal to see if it complies with the requirements of the Eminent Domain Law. Staff will then recommend that the governing body of the public entity approve the appraisal and set just compensation. Just compensation must be at least the fair market value of the property as set forth in the appraisal. Page 115 ITEM NO. 7. Eminent Domain Informational Pamphlet Page3 of9 Offer When will the property owners receive an offer to purchase the property? The public entity will provide the owner with a written offer to purchase the property after it sets just compensation. The public entity generally sends the written offer within thirty (30)days from the date on which the public entity sets just compensation. The public entity cannot offer to purchase the property for less than the fair market value of the property as deteiciiined by the appraisal. (Government Code Section 7267.2). What must the public entity include in the written offer to purchase the property? Government Code Section 7267.2 requires that the offer include a written statement of,and summary of the basis for, the amount the public entity established as just compensation. The offer must also include the following: • The date of value, highest and best use, and applicable zoning of property; • The principal transactions,reproduction or replacement cost analysis, or. capitalization analysis, supporting the determination of value; and • Where appropriate, a separate statement of the just compensation for the real property acquired and for damages to the remainder, including the calculations and narrative explanation supporting the compensation and any offsetting benefits. If the property is owner-occupied residential property and contains no more than four residential units, the owners are entitled to review a copy of the appraisal. Negotiations The public entity will negotiate with the property owners for the sale of the property after it sends the offer letter Do the property owners have the right to obtain their own appraisal of the property? Yes. Property owners have always had the right to obtain their own appraisal of their real property. As of January 1, 2007,however,the public entity must offer to pay the property owners' reasonable costs,up to $5,000.00,for an independent appraisal of their property. The law requires that an appraiser licensed by the Office of Real Estate Appraisers prepare the independent appraisal. The public entity will inform the owners Page 116 ITEM NO. 7. Eminent Domain Informational Pamphlet Page 6 of 9 Orders for Prejudgment Possession and Deposit of Probable Compensation Can the public entity take possession of the property before trial? A public entity may request an order from the court for early possession of the property. This is called an order for prejudgment possession. Deposit of Probable Compensation To obtain an order for prejudgment possession, the public entity must show that it is entitled to acquire the property by eminent domain and that it has deposited with the court for deposit into the county treasury or directly with the State Treasury the amount of probable compensation for the real property. The public entity must submit a summary of the basis for the appraisal when it applies to deposit the amount of probable compensation with the court. The date on which the public entity deposits the probable amount of compensation is generally the date of value in the proceeding. This means that the appraisers for the public entity and property owners will determine the fair market value of the real property in the eminent domain proceeding as of the date of value. Objection to Motion for an Order for Possession Property owners have the right to oppose a public entity's motion for an order for prejudgment possession. The public entity's motion for an order for prejudgment possession notifies property owners that they have the right to oppose the motion and that they must serve the public entity and file with the court the opposition to the motion within thirty (30) days from the date on which the property owner was served with the motion. If the property owners' opposition asserts a hardship, it has to be supported by a declaration signed under penalty of perjury stating facts supporting the hardship. The public entity can file a reply to the opposition not less than fifteen(15) days before the hearing. At the hearing, if the motion is opposed,the court may enter an order for possession of the property after considering the relevant facts and any opposition if it finds each of the following: • The public entity is entitled to take the property by eminent domain; • The public entity has deposited the amount of probable compensation pursuant to Code of Civil Procedure Section 1255.010 et seq.; • There is an overriding need for the public entity to possess the property prior to the issuance of final judgment in the case and the public entity will suffer a substantial hardship if the application for possession is denied or limited; and • The hardship that the public entity will suffer if possession is denied or limited outweighs any hardship on the defendant or occupant that would Page 117 ITEM NO. 7. Eminent Domain Informational Pamphlet Page 7 of 9 be caused by the granting of the order for possession. (Code of Civil Procedure Section 1255.410). Withdrawal of Deposit of Probable Compensation Property owners can apply to withdraw the funds on deposit with the court. Property owners must serve a copy of their application to withdraw the funds on the public entity. The court cannot order the disbursement of the funds on deposit until twenty (20) days after the date on which the application for withdrawal was served on the public entity. The public entity may file an objection to the withdrawal if, for example, other parties to the proceeding are known or believed to have an interest in the just compensation. Property owners waive any challenges to the public entity's right to take if they withdraw the funds on deposit with the court. Property owners do not,however, waive their claims for greater compensation for the property if they withdraw the funds on deposit. Exchange of Valuation Data The parties can agree to exchange statements of valuation data containing the information required by Code of Civil Procedure Section 1258.260 or appraisal reports containing that information on a mutually-agreed to date. If the parties do not mutually agree to exchange valuation data on a specific date, the date of exchange is ninety (90) days before the commencement of trial on the issue of just compensation. This gives the parties the opportunity to analyze the fair market value opinions of the other party's expert and sales data or appraisal methodology relied on by the other party's expert. The parties will generally take the depositions of the other party's appraiser. After the parties exchange valuation data, the parties often negotiate a settlement at a mediation, during informal settlement negotiations, or during a mandatory settlement conference. Trial In eminent domain proceedings,the judge decides legal issues, such as the right to take, the issue of what constitutes a larger parcel, and the issue of entitlement to certain damages. Property owners are entitled to have the jury determine the amount of just compensation. The parties resolve the majority of eminent domain proceedings prior to trial. Vacating the Property When will property owners and tenants be required to move from the property? If the public entity and property owners reach a negotiated settlement, the public entity will attempt to determine a mutually agreeable date for owners to move. If the property is condemned, the public entity cannot require the owners to move without a Page 118 ITEM NO. 7. Eminent Domain Informational Pamphlet Page 8 of 9 court order. If the subject property is lawfully occupied, the public entity must serve the property owners with a motion for an order for prejudgment possession ninety(90) days before the court hearing. Orders for prejudgment possession are discussed more fully above. If the order for prejudgment possession is granted,the public entity must serve the property owners with the order thirty(30) days before it intends to take possession of the subject property. If the subject property is unoccupied, the public entity must serve the property owners with a motion for an order for possession sixty (60) days before the court hearing. If the order for prejudgment possession is granted, the public entity must serve the property owners with the order for prejudgment possession ten days before it intends to take possession of the subject property. Relocation Assistance Property owners and occupants of property (tenants)that are displaced as the result of a public project, may be entitled to relocation assistance and benefits under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.), if applicable, or under Title 1, Division 7, Chapter 1 of the Government Code of the State of California(Section 7260 et seq.) and the Relocation Assistance and Real Property Acquisition Guidelines(Chapter 6 of Title 25 of the California Code of Regulations). Benefits may include moving expenses, re- establishment costs, rent differential payments, or interest differential payments. A relocation consultant, hired by the public entity, will meet with the property owners and or tenants to determine their eligibility and potential benefits. Loss of Business Goodwill Goodwill is the benefit that accrues to a business as a result of its location, reputation, skill and other factors that contribute to a business maintaining and acquiring patrons. Public entities are required to compensate owners of a business conducted on the property, or on the remainder parcel, if the business owners prove all of the following: • The loss is caused by the taking of the property or the injury to the remainder; • The loss cannot reasonably be prevented by taking steps and adopting procedures that a reasonably prudent person would take and adopt in preserving the goodwill; • Compensation for the loss will not be included in payments under Section 7262 of the Government Code. • Compensation for the loss will not duplicated in the compensation otherwise awarded to the owner. Page 119 ITEM NO. 7. Eminent Domain Informational Pamphlet Page 9 of 9 Business owners must raise their claim for loss of business goodwill in their answer to the public entity's complaint. The public entity will engage a business valuation expert to determine the value of the goodwill of the business in the eminent domain proceeding. Business owners also generally engage a business valuation expert in the eminent domain proceeding. Page 120 ITEM NO. 7. Page 121 DRAFT RESOLUTION 1TEM NO. 7. RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS TO DETERMINE THE NECESSITY TO ACQUIRE PROPERTY BY EMINENT DOMAIN FOR THE SHANNON ROAD CAPITAL IMPROVEMENT PROJECT; TO AUTHORIZE COMMENCEMENT OF LITIGATION TO ACQUIRE PROPERTY BY EMINENT DOMAIN;AND TO SEEK AN ORDER OF PREJUDGMENT POSSESSION (CODE OF CIVIL PROCEDURE SECTION 1245.220) Property Owner: John W. Hoffee Property Address: 14915 Shannon Road, Los Gatos, CA(portion) APN: 537-27-047 WHEREAS, the Town of Los Gatos proposes to acquire a portion of that certain real property located in the Town of Los Gatos, County of Santa Clara, State of California that is designated Assessors Parcel No. 537-27-047 ("Larger Parcel"). Specifically, an approximately 29,807 square foot portion of the Larger Parcel comprised of(a) an approximately 21,929 square foot strip of land within the Town's existing Shannon Road right of way; and (b) an approximately 7,878 square foot strip of land along the Larger Parcel's frontage on Shannon Road, as more particularly described and depicted in Exhibit A incorporated herein by reference (the "Subject Property") for the Shannon Road Capital Improvement Project ("Project"); WHEREAS, the Project will repair the roadbed and bring the road into compliance with existing Town standards, including by increasing the width of the paved road surface, installing guardrails,and installing retaining walls on the north side of Shannon Road; WHEREAS, the Town is vested with the power of eminent domain to acquire real property interests by eminent domain for the public use set forth herein in accordance with the California Constitution, Article 1, Section 19; the California Eminent Domain Law, Code of Civil Procedure Section 1230.010 et seq., including, but not limited to, sections 1240.010 through 1240.050 inclusive, and sections 1240.110, 1240.120, 1240.150, 1240.220, 1240.320, 1240.330, 1240.350, 1240.410, 1240.510, 1240.610, 1240.650, and 1240.660; Government Code section 37350.5; Streets & Highway Code section 10102; and other provisions of law; WHEREAS, the Town fully complied with the requirements of the California Environmental Quality Act (Public Resources Code sections 21000 et seq.)for acquiring the Subject Property when on September 4, 2024, the Town determined that the Project is categorically exempt from CEQA pursuant to 14 California Code of Regulation, sections 15301 (Existing Facilities Exemption) and 15061(b)(3) (Common Sense Exemption). The Town filed the Notice of Exemption in accordance with Public Resources Code section 21152 on September 10, 2024. No further environmental review is required; WHEREAS,the Subject Property was appraised by an independent real estate appraiser and an amount believed to be probable just compensation for the Subject Property was established by the Town; Page 122 1 of 3 ATTACHMENT 2 Draft Resolution Date Adopted WHEREAS, a written offer for the full appraised value was mailed to the owner or 1TEMNO. 7. owners of record for the Subject Property, pursuant to Government Code section 7267.2; WHEREAS, on November 1, 2024, the Town mailed a Notice of Intention to Consider Adoption of a Resolution of Necessity ("Notice")for acquisition by eminent domain of the Subject Property. As required by Code of Civil Procedure section 1245.235, the Notice was mailed to all persons whose name(s) appear on the last County of Santa Clara Equalized County Assessment Roll as having an interest in the Subject Property, and to the addresses appearing on the Roll. The Notice advised the persons of their right to be heard on the matters referred to in the Notice on the date and at the time and place stated; WHEREAS, the Notice informed the owner of its right to appear and to be heard by the Town Council of the Town of Los Gatos on the following matters: (a) whether the public interest and necessity require the Project; (b) whether the Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; (c) whether the Subject Property sought to be acquired is necessary for the Project; and (d) whether the offer required by section 7267.2 of the Government Code has been made to the owner(s) of record; and WHEREAS, the hearing referenced in the Notice was held on November 19, 2024, at the time and place stated in said notice, and all interested parties were given an opportunity to be heard on the following matters: A. Whether the public interest and necessity require the Project; B. Whether said Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; C. Whether the Subject Property is necessary for the Project; and D. Whether the offer required by Government Code section 7267.2 has been made to all owners of record. NOW, THEREFORE THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY FIND, RESOLVE, AND DETERMINE AS FOLLOWS BY A VOTE OF FOUR-FIFTHS OR MORE OF ITS MEMBERS: 1. The recitals contained herein are true and correct; 2. The Subject Property is situated in the Town; 3. The public interest and necessity require the Project; 4. The interests in the Subject Property described and depicted in Exhibit A sought to be acquired by eminent domain are necessary for the Project; 5. The Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; Page 123 2 of 3 Draft Resolution Date Adopted 1TEM NO. 7. 6. The Town has complied with all conditions and statutory requirements necessary to exercise the power of eminent domain to acquire the Subject Property, as well as any other matter regarding the right to take said Subject Property by eminent domain, including but not limited to, making the offer required by Government Code section 7267.2; 7. Insofar as any portion of the Subject Property has heretofore been appropriated for public use,the proposed use set forth herein constitutes a compatible use under Code of Civil Procedure section 1240.510 or alternatively a more necessary public use to which the Subject Property is appropriated pursuant to Code of Civil Procedure sections 1250.410, 1240.610, and 1240.650. The Town is,thus, empowered to acquire the Subject Property for a compatible public use pursuant to Code of Civil Procedure section 1240.510 et seq., and a more necessary public use pursuant to Code of Civil Procedure section 1240.610 et seq.; 8. All environmental review required by law has been prepared and adopted; and 9. The Town Attorney is hereby authorized to acquire in the name of the Town the Subject Property described in this Resolution in accordance with the provisions of California Eminent Domain Law,to commence an action in eminent domain,to deposit the probable amount of just compensation with the State Condemnation Fund,to apply to the Superior Court for an order permitting the Town to take immediate possession and make immediate use of the Subject Property for the Project, to take all necessary steps to acquire the Subject Property under the law, and to take such actions as he or she may deem advisable or necessary in connection therewith. PASSED AND ADOPTED, by the Town Council of the Town of Los Gatos, State of California on November 19, 2024, by the following vote: COUNCIL MEMBERS AYES: NOES: ABSTAIN: ABSENT: SIGNED: MAYOR OF THE TOWN OF LOS GATOS, CALIFORNIA ATTEST: TOWN CLERK Exhibits: A. Legal Description and Plat Map of the Subject Property Page 124 3 of 3 Draft Resolution Date Adopted ITEM NO. 7. EXHIBIT A LEGAL DESCRIPTION Shannon Road Grant of Right of Way All that certain real property situate in the Town of Los Gatos, County of Santa Clara, State of California, being a portion of the lands granted to Diane Barnett and Ray M. Elam, Ill as Co- Trustees of the Elam Family Trust A by deed filed for record May 29, 2015 as Document 22970019 in the office of the Santa Clara County Recorder, being more particularly described as follows: Commencing at an iron pipe in monument box located at the northerly terminus of that certain course shown as "N 46° 11' 21" W, 394.60"' on the map entitled "Record of Survey of the Monument Line of Shannon Road..." filed for record July 13, 1978 in Book 422 of Maps at Pages 39-46 in said Recorder's office; said course being depicted on sheet 4 of 8 therein, thence from said point of commencement North 07`12'24" West, 26.58 feet to the true Point of Beginning of this description; thence South 55`48'03" East, 31.91 feet; thence South 48`26'38" East, 45.97 feet; thence South 46`41'49" East, 107.02 feet; thence South 45`34'03" East, 124.07 feet to the beginning of a curve concave northeasterly having a radius of 500.00 feet; thence southeasterly along the arc of said curve 74.81 feet through a central angle of 08`34'21 to the beginning of a non-tangent curve concave northeasterly having a radius of 350.00 feet, from which point the radius bears North 34`44'06" East; thence southeasterly along the arc of said curve 99.18 feet through a central angle of 16°14'09"; thence South 71`30'03" East, 57.32 feet to the beginning of a curve concave southerly having a radius of 375.00 feet; thence easterly along the arc of said curve 38.43 feet through a central angle of 5`52'20"; thence South 65`37'44" East, 153.47 feet; thence North 24`22'16" East, 5.00 feet; thence South 65`37'44" East, 9.00 feet; thence South 24`22'16" West, 5.00 feet; thence South 65`37'44" East, 33.94 feet; thence North 24`22'16" East, 33.00 feet; thence South 65`37'44" East, 20.00 feet; thence South 24`22'16" West, 33.00 feet; thence South 65`37'44" East, 68.97 feet to the beginning of a curve concave southerly having a radius of 325.00 feet; thence southeasterly 44.19 feet through a central angle of 07`47'28"; thence South 57`50' 15' East, 25.21 feet; thence North 32`09'45" East, 5.00 feet; thence South 57`50'15" East, 10.00 feet; thence South 32`09'45" West, 5.00 feet; thence South 57`50'15" East, 33.40 feet to the beginning of a non-tangent curve concave southwesterly having a radius of 335.00 feet, from which point the radius bears South 43`55'48" West; thence southerly along the arc of said curve 54.96 feet through a central angle of 09`24'00"; thence South 25`59'14" East, 57.73 feet to a point in the westerly line of that certain 72.14 acre tract granted to Manuel F. Escoverby deed dated November 27, 1922, filed for record in Book 566 of Deeds at Page 403 in said Recorder's office, from which point an iron pipe in monument box located at the southerly terminus of that certain course shown as "N 30`09'05" W, 240.63 " on sheet 4 of said Record of Survey bears South 16`54'19" East, 167.68 feet;thence along said westerly line South 23`40'51" West, 38.50 feet to an iron pipe set at the southwesterly corner of said 72.14 acre tract; said corner being further described as Page 1 of 2 Page 125 EXHIBIT A ITEM NO. 7. LEGAL DESCRIPTION (cont.) Shannon Road Grant of Right of Way lying in the center of Shannon Road;thence along the southwest line of said lands of Elam et. al., said southwest line also being the centerline of Shannon Road,the following courses and distances, each as shown on that certain map entitled "Record of Survey of a portion of Shannon Road"filed for record May, 28, 2024 in Book 962 of Maps at Page 10 in said Recorder's office, North 24°21'16" West, 20.92 feet to the beginning of a curve concave southwesterly having a radius of 285.00 feet;thence northwesterly along the arc of said curve 214.93 feet through a central angle of 43°12'32";thence North 67°33'47" West, 69.26 feet to the beginning of a curve concave northerly having a radius of 500.00 feet;thence northwesterly along the arc of said curve 25.95 feet through a central angle of 02°58'26";thence North 64°35'21" West, 150.28 feet to the beginning of a curve concave southerly having a radius of 750.00 feet;thence westerly along the arc of said curve 90.05 feet through a central angle of 06°52'46";thence North 71°28'07"West,42.02 feet to the beginning of a curve concave northerly having a radius of 360.00 feet;thence northwesterly along the arc of said curve 161.26 feet through a central angle of 25°39'54";thence North 45°48'13" West, 199.08 feet to the beginning of a curve concave southwesterly having a radius of 2,500.00 feet;thence northwesterly along the arc of said curve 127.44 feet through a central angle of 02°55'14"; thence leaving said centerline of Shannon Road North 41°16'33" East, 20.00 feet to the point of beginning. Containing 29,807 square feet, more or less. Bearings used in this description are based upon the California Coordinate System of 1983 (CCS83), Zone 3. Prepared under the direction of: e o ''; .,..r/v,v Uf <_ 0 \\............. • •421�f xi 9 Q..CAUF�F. Charles M. Weakley, L.S. 6421 Page 2 of 2 Page 126 � Nr,V a Point of Beginning ITEM NO. 7. ',/s) DATUM NOTE: CURVE DATA TABLE �:, ` NO. DELTA LENGTH RADIUS ♦ Bearings shown are based upon the 4 ��`'� California Coordinate System of 1983 Cl 08°34' 21" 74.81' 500.00' 1,,j� . J Q� (CCS1983),Zone 3,epoch 2021.3. C2 16° 14'09" 99.18' 350.00' Q6° g� C3 05°52' 20" 38.43' 375.00' �' Point of v``O 'P. ��st9,, O� O� Commencement, S S � F �p LINE DATA TABLE NO. BEARING DISTANCE Fnd. monument • s't�„0��•� 10, ��� o L1 N07° 12'24"W 26.58' per R-1 \ •- O O �� 00 �o L2 S55°48' 03"E 31.91' N: 1,907,166.93 • 'TICS. �@ `�D L3 S48°26' 38"E 45.97' E:6,145,747.40 Q •.���, o al s �, S° L4 S71°30'03"E 57.32' v y 10,%♦�•� ,Ar, L5 S65°37'44"E 153.47' '9 � k�♦\\\o'�. New R/W Line L23 N71°28'07"W 42.02' d •4 ♦�.- L24 N41° 16' 33"E 20.00' 73 \OA _ \ \\9:0›, ,4) cl, 0 11111111hi act \PO.4:9 \ 40 .t> . .41 ill 11 ,�� ` � Right of Way \ ..1•�•�` 29,807±sq.ft. LEGEND `. 6j2� .�♦�' c,,) oti C1 or L1 See curve or line data table Occupational C. per 2023 Survey d4dS° R •••�:�`�.. �m Rad Radial Bearing (PropertyLine per •• 39536 .° , L4 R-1 Bk. 422 Maps, Pg. 39-46 Deed Reference) ° °` •�•`�+�'�`� N. C3 h 123 `;������,.10.EXHIBIT B' ♦♦♦' ZS Plat to Accompany Legal Description ` \ \ ... 1'90 I �� ,� GRAPHIC SCALEa, °S ,q� k� �`� 60 0 30 60 °6°SZ,��S° � MOUNTAIN PACIFIC �6'" °°` • , .. ' SURVEYS Enterprise Dr,Suite 10 (707) z -62 1 inch = 60 ft. 1735 \ 9 PH 4 5 34 Fairfield,CA 94533 FAX (707)425-1969 Scale: 1"=60' Date:April 19,2024 Proj. No.521058 Sheet No.: 1 of 2 Page 127 ITEM NO. 7. L23 ,t����'�` Sss° ���O — �•°S•`•��••,N3,440E c,© f�0� ".„ °6°s2, so�������� � zs L6 L7 ��`�� @�� �lIIi,. 46, ° N. 34�' �74 ��0 \ ` °3s-��������`.� o I:I ,s �� Right of Way `c " i q NA,PI, ���♦��♦N.9�v,��ti 29,807±sq.ft. S Q434 O'V •28 •�•�w♦♦� ��z3 New R/W Line R o C6 44_, ��♦ C L15 ��a NO. BEARING DISTANCE ` �� Q sg33' �.�♦.�,4 L16 cb''� L6 N24°22' 16"E 5.00' 26 IV �v�♦� ,(14 L17 °chi a\ L7 S65°37'44"E 9.00' S •. �3 �Q'a� L8 S24°22' 16"W 5.00' Occupational 4. z`•�♦.r j� c� .44 L9 S65°37'44"E 33.94' per 2023 Survey c"149`� � °��p� L10 N24°22' 16"E 33.00' (Property Line per 4.. •���, �♦,�. S("ay L11 S65°37'44"E 20.00' Deed Reference) \ 1�,`,.) `r ♦�NV& L12 S24°22' 16"W 33.00' N v)*dcf.' /4,L13 S65°37'44"E 68.97' LEGEND 40, •♦,� , L14 S57°50' 15"E 25.21' Cl or L1 See curve or line data table � �h L15 N32°09'450E 5.00' •�♦�♦� bay Rad Radial Bearing ♦.,\tom " L17 S32°09'45"W 5.00' R-1 Bk.422 Maps, Pg. 39-46 \\ ♦♦� �� L18 S57°50' 15"E 33.40' t4$ L19 S25°59' 14"E 57.73' NO. DELTA LENGTH RADIUS \L20 S16°54' 19"E 167.68' C3 05°52' 20" 38.43' 375.00' Pi L21 S23°40'51"W 38.50' C4 07°47' 28" 44.19' _ 325.00' e-) 3 N24°21' 16"W 20.92' C5 09°24'00" 54.96' 335.00' �� �q L23 N71°28'07"W 42.02' C6 02°58' 26" 25.95' 500.00' \ \ \ \L22 QP EXHIBIT B \ " \ Plat to Accompany Legal Description \\s '\ t GRAPHIC SCALE 60 0 30 60 Fnd. monument \`` MOUNTAIN PACIFIC111 —� Srto S U R V E Y S N:N: 1,90906,431.20 I 1735 Enterprise Dr,Suite i09 PH (707)425-6234 1 inch = 60 ft. E:6,146,674.22A \7 0 Page 128 I,CA 94533 FAX (707)425-1969 Scale: 1"=60' Date:April 19, 2024 Proj. No. 521058 Sheet No.: 2 of 2 ITEM NO. 7ONIN OP TOWN OF LOS GATOS � =�. �a OFFICE OF THE TOWN ATTORNEY '� '` (408)354-6880 ‘ S GAite' AttomeytiilLosGatosCA,gov CERTIFIED MAIL RETURN RECEIPT REQUESTED AND EMAIL November 1, 2024 John W. Hoffee Jolie Houston P.O. Box 670 10 Almaden Blvd., 11th Floor Kailua Kona, HI 96745-0670 San Jose, CA 95113 (By US Mail only) E-mail: jolie.houston@berliner.com Richard H. Gillette P.O. Box 1189 Carlsbad, CA 92018 E-mail: grichard61@aol.com NOTICE OF INTENTION TO CONSIDER ADOPTION OF A RESOLUTION OF NECESSITY TO ACQUIRE PROPERTY BY EMINENT DOMAIN; AUTHORIZING COMMENCEMENT OF LITIGATION TO ACQUIRE PROPERTY AND FOR ORDER OF POSSESSION Town of Los Gatos Shannon Road Capital Improvement Project 14915 Shannon Road, Los Gatos, CA (Portion) APN: 537-27-047 Re: Notice of Hearing to Consider Adoption of a Resolution of Necessity to Acquire Property by Eminent Domain. (Code Civ. Proc. § 1245.235.) 1. Notice of Hearing where the Town Council of the Town of Los Gatos will Consider Adopting a Resolution of Necessity. The Town Council of the Town of Los Gatos ("Council") intends to hold a hearing to consider whether a Resolution of Necessity should be adopted that, if adopted, will authorize the Town of Los Gatos ("Town") to acquire a portion of your property located at 14915 Shannon Road, Los Gatos, CA (APN 537-27-047) ("Larger Parcel")by eminent domain for the Shannon Road Capital Improvement Project ("Project"). Specifically, an approximately 29,807 square foot portion of the Larger Parcel comprised of (a) an approximately 21,929 square foot strip of land within the existing Shannon Road right of way; and (b) an approximately 7,878 square foot strip of land along the Larger Parcel's frontage on Shannon Road (collectively, the "Subject Property"). Attached hereto as Exhibit A is a legal description and map of the Subject Property. 4871-0812-3380 vl Page 1 of 3 Page 129 ATTACHMENT 3 ITEM NO. 7. The Town is sending you this notice of a public hearing because your name appears on the last equalized State Board of Equalization Assessment Roll for the Larger Parcel. DATE OF HEARING: November 19, 2024 TIME OF HEARING: 7:00 p.m., or as soon as the matter may be heard PLACE OF HEARING: Town Hall 110 E. Main Street Los Gatos, CA 95030 2. Notice of Your Right to Appear and Be Heard. You have the right to appear and be heard before the Council at the above-scheduled hearing on the following matters and issues and to have the Council give consideration to your testimony prior to deciding whether or not to adopt the proposed Resolution of Necessity: a) Whether the public interest and necessity require the Project; b) Whether the Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; c) Whether the Subject Property sought to be acquired is necessary for the Project; d) Whether the Town has complied with all conditions and statutory requirements necessary to exercise the power of eminent domain to acquire the Subject Property, as well as any other matter regarding the right to take said property by eminent domain, including but not limited to, making the offer required by Government Code Section 7267.2(a); and e) Whether the Town has fully complied with the California Environmental Quality Act, Public Resources Code section 21000 et seq. The statutes that authorize the Town to acquire the Subject Property by eminent domain for the Project include, but are not limited to, California Constitution, Article 1, Section 19; the California Eminent Domain Law, Code of Civil Procedure Section 1230.010 et seq., including, but not limited to, sections 1240.010 through 1240.050 inclusive, and sections 1240.110, 1240.120, 1240.150, 1240.220, 1240.320, 1240.330, 1240.350, 1240.410, 1240.510, 1240.610, 1240.650, and 1240.660; Government Code section 37350.5; Streets & Highway Code section 10102; and other provisions of law. 3. Failure to File a Written Request to Be Heard Within Fifteen (15) Days After the Notice Was Mailed Will Result in Waiver of the Right to Appear and Be Heard. If you desire to be heard, or to present information to the Council on the proposed Resolution of Necessity, you are required by law to file a written request with the Town Clerk no later than fifteen (15) days from the date that this notice was mailed. You must file your request to be heard with the Town Clerk, at Town Hall, 110 E. Main Street, Los Gatos, CA 95030 Attn.: Wendy Wood. If you mail a request to be heard, please keep in mind that it must be actually received by the Town Clerk no later than fifteen (15) days after the date this notice is mailed. (See Code Civ. Proc. § 1245.235(b)(3).) a 71-0812-3380 vl Page 2 of 3 Page 130 ITEM NO. 7. If you elect not to appear and be heard at the hearing on the proposed Resolution of Necessity, your decision not to appear and be heard will constitute a waiver of your right to challenge the Town's right to acquire the Subject Property by eminent domain. (Code Civ. Proc. § 1245.235(b)(3).) Thus, the matters described in the Resolution of Necessity will be deemed to be established. 4. You Will Not Waive the Right to Claim Greater Compensation if You Do Not Appear at the Hearing. The amount of compensation to be paid for the Subject Property will not be decided or heard at this hearing. Your nonappearance at this noticed hearing will not prevent you from claiming compensation in an amount to be determined by a court of law under the laws of the State of California. This notice is not intended to foreclose further ongoing negotiations between you and Town representatives on the amount of compensation to be paid to you for the Subject Property. At this hearing, the Council will not make any determination about the amount of money to be paid or to be offered to you for the Subject Property. However, if you elect not to appear and be heard, you will be foreclosed from raising in a court of law the issues which are the subject of this noticed hearing and which are concerned with the right to take the Subject Property by eminent domain. If the Council elects to adopt the proposed Resolution of Necessity, then within six months of the adoption of the Resolution, the Town will commence eminent domain proceedings in Superior Court to acquire the Subject Property. The amount of compensation to which you are entitled for the Subject Property will be determined in that court proceeding. Town of Los .p By: #7/77", "- aty/Nomura, Interim Town Manager Dated, mailed, and emailed on: November 1, 2024 Enclosure: Exhibit A— Legal Description and Plat Map of the Subject Property 4871-0812-3380 vl Page 3 of 3 Page 131 ITEM NO. 7. EXHIBIT A LEGAL DESCRIPTION Shannon Road Grant of Right of Way All that certain real property situate in the Town of Los Gatos, County of Santa Clara, State of California, being a portion of the lands granted to Diane Barnett and Ray M. Elam, Ill as Co- Trustees of the Elam Family Trust A by deed filed for record May 29, 2015 as Document 22970019 in the office of the Santa Clara County Recorder, being more particularly described as follows: Commencing at an iron pipe in monument box located at the northerly terminus of that certain course shown as "N 46° 11' 21" W, 394.60 " on the map entitled "Record of Survey of the Monument Line of Shannon Road..."filed for record July 13, 1978 in Book 422 of Maps at Pages 39-46 in said Recorder's office; said course being depicted on sheet 4 of 8 therein,thence from said point of commencement North 07°12'24" West, 26.58 feet to the true Point of Beginning of this description;thence South 55°48'03" East, 31.91 feet;thence South 48°26'38" East, 45.97 feet;thence South 46°41'49" East, 107.02 feet;thence South 45°34'03" East, 124.07 feet to the beginning of a curve concave northeasterly having a radius of 500.00 feet;thence southeasterly along the arc of said curve 74.81 feet through a central angle of 08°34'21 to the beginning of a non-tangent curve concave northeasterly having a radius of 350.00 feet, from which point the radius bears North 34°44'06" East; thence southeasterly along the arc of said curve 99.18 feet through a central angle of 16°14'09";thence South 71°30'03" East, 57.32 feet to the beginning of a curve concave southerly having a radius of 375.00 feet; thence easterly along the arc of said curve 38.43 feet through a central angle of 5°52'20";thence South 65°37'44" East, 153.47 feet;thence North 24°22'16" East, 5.00 feet;thence South 65°37'44" East, 9.00 feet;thence South 24°22'16" West, 5.00 feet;thence South 65°37'44" East, 33.94 feet;thence North 24°22'16" East, 33.00 feet; thence South 65°37'44" East, 20.00 feet;thence South 24°22'16" West, 33.00 feet;thence South 65°37'44" East, 68.97 feet to the beginning of a curve concave southerly having a radius of 325.00 feet;thence southeasterly 44.19 feet through a central angle of 07°47'28";thence South 57°50' 15' East, 25.21 feet;thence North 32°09'45" East, 5.00 feet; thence South 57°50'15" East, 10.00 feet;thence South 32°09'45"West, 5.00 feet;thence South 57°50'15" East, 33.40 feet to the beginning of a non-tangent curve concave southwesterly having a radius of 335.00 feet,from which point the radius bears South 43°55'48" West;thence southerly along the arc of said curve 54.96 feet through a central angle of 09°24'00";thence South 25°59'14" East, 57.73 feet to a point in the westerly line of that certain 72.14 acre tract granted to Manuel F. Escover by deed dated November 27, 1922, filed for record in Book 566 of Deeds at Page 403 in said Recorder's office, from which point an iron pipe in monument box located at the southerly terminus of that certain course shown as "N 30°09'05"W, 240.63' on sheet 4 of said Record of Survey bears South 16°54'19" East, 167.68 feet;thence along said westerly line South 23°40'51" West, 38.50 feet to an iron pipe set at the southwesterly corner of said 72.14 acre tract; said corner being further described as Page 1 of 2 Page 132 1+16l r ITEM NO. 7. LEGAL DESCRIPTION (cont.) Shannon Road Grant of Right of Way lying in the center of Shannon Road;thence along the southwest line of said lands of Elam et. al., said southwest line also being the centerline of Shannon Road,the following courses and distances, each as shown on that certain map entitled "Record of Survey of a portion of Shannon Road"filed for record May, 28, 2024 in Book 962 of Maps at Page 10 in said Recorder's office, North 24°21'16" West, 20.92 feet to the beginning of a curve concave southwesterly having a radius of 285.00 feet;thence northwesterly along the arc of said curve 214.93 feet through a central angle of 43°12'32";thence North 67°33'47" West, 69.26 feet to the beginning of a curve concave northerly having a radius of 500.00 feet;thence northwesterly along the arc of said curve 25.95 feet through a central angle of 02°58'26";thence North 64°35'21" West, 150.28 feet to the beginning of a curve concave southerly having a radius of 750.00 feet;thence westerly along the arc of said curve 90.05 feet through a central angle of 06°52'46";thence North 71°28'07"West,42.02 feet to the beginning of a curve concave northerly having a radius of 360.00 feet;thence northwesterly along the arc of said curve 161.26 feet through a central angle of 25°39'54";thence North 45°48'13" West, 199.08 feet to the beginning of a curve concave southwesterly having a radius of 2,500.00 feet;thence northwesterly along the arc of said curve 127.44 feet through a central angle of 02°55'14"; thence leaving said centerline of Shannon Road North 41°16'33" East, 20.00 feet to the point of beginning. Containing 29,807 square feet, more or less. Bearings used in this description are based upon the California Coordinate System of 1983 (CCS83), Zone 3. Prepared under the direction of: e o ''; .,..r/v,v Uf <_ 0 \\............. • •421�f xi 9 Q..CAUF�F. Charles M. Weakley, L.S. 6421 Page 2 of 2 Page 133 ITEM NO. 7. w Ln a 000 Q Lncrii0 CO ri ^1M 00 ,•+ . 0 O O L!1 l0 e1 L!1 ^ M N O .Q / Q OLnn N NM � Lr) 4 � Le1 M M W e-i � N t O w 2 - - - Q O 14.1 a4 7 S�JS aas ,' 41) / Q C�J a0 e�i Q W W W W sTC�ll • i sO` / < Z O1 m z N O Conn o �d pen CO "V �a.� ,� QQ J 1� 01 M Lp Q .•NII co� NMMN to 'l� I 6 C.;ril 0 O Z WOO 0 00 0 0 � v) � �• # m N LP) 00 e-I Lel NON J ZNNNLOn22 O O . v v 00 N D J 7Cr Ch N -C cr f o M In Q M U Q oDO 0 0 Z J J J J J J J N V�.�' / ei O e-I O - CC ho / O Z 0 e-I N M ���.,eV / ZUUU ril tc , 4 cli cr/ / 1.n O0o �Q 0 / Z s � /C o ,js'I! �O v N O g ��♦ ti Z tU ^, Z Z� * Jo 1- 0�1 ` �, GJ (..) 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