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STRATEGIC OUTCOMES |
ACTION |
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Department: |
☐ Safe & Prosperous |
☐ Motion |
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City Attorney |
☐ Active & Appealing |
☐ Resolution |
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☐ Respected & Responsible |
☐ Ordinance - Introduction |
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Division: |
☐ Connected & Engaged |
☒ Ordinance - Adoption |
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Administration |
☒ Unique & Creative |
☐ Public Hearing |
TITLE: t
Declare Property Surplus and Authorize Transfer and Settlement of Lawsuit: Bill Alexander Ford Lincoln Mercury and BJA Enterprises, LLC
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SUMMARY RECOMMENDATION: Summary Recommendation
Authorize the vacation of Bonanza Avenue right-of-way, reserving utility and access easements in the right-of-way, declare the Meinhardt/B-8 Stormwater Basin (subject to certain no-build easements) and the vacated Bonanza Avenue right-of-way (subject to the reserved easements) surplus, and authorize an exchange of the surplus property to Bill Alexander Ford Lincoln Mercury Inc. (Alexander Ford) or its nominee in exchange for a covenant to perform perpetual maintenance and stormwater capacity of the basin property. (City Attorney) (Richard Files)
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STRATEGIC OUTCOME:
Approval of this ordinance supports City Council’s strategic outcome of a Unique and Creative solution to divest City responsibilities for maintenance of a stormwater retention basin and roadway into the private sector for a more productive use of the property and the dismissal of a federal lawsuit.
REPORT:
In 2019 the City of Yuma transferred Crest Drive to Alexander Ford in exchange for perpetual maintenance of the Meinhardt/B-8 Stormwater Basin (Bonanza Basin) while reserving utility easements in Crest Drive and title to Bonanza Stormwater Basin in the City of Yuma. In this proposed ordinance, the City will similarly transfer title to Bonanza Avenue to Alexander Ford while reserving utility and access easements, as well as transfer title to Bonanza Basin to Alexander Ford while reserving a 100-foot no-build easement which, in accordance with the Runway Approach and Departure Safety Area (RADSA) described in the Yuma City Code, allows parking on the north 51 feet of the 100 foot no-build easement.
Under a covenant attached to the 2019 deed for Crest Drive, Alexander Ford is currently providing maintenance to the Bonanza Storm Water Basin, which serves the drainage needs of 32nd Street and surrounding properties including Alexander Ford and other auto group dealerships that drain into the basin. The necessary capacity of the basin is equivalent to 22-acre feet, and this capacity must be maintained once title to the Bonanza Basin property transfers or the deed will revert Bonanza Basin and Bonanza Avenue back to the City. Similarly, Bonanza Avenue primarily serves Alexander Ford, utilities, and access for a limited number of other parcels. By turning Bonanza Avenue over to Alexander Ford, as was accomplished with Crest Drive, the City will no longer bear the cost of maintenance and repair of the street.
The savings to the City by vacating the Crest Drive right-of-way and turning over the maintenance of Bonanza Basin to Alexander Ford was estimated in the 2019 City Council ordinance at $190,730. An additional savings of at least $125,000 will be realized by transferring Bonanza Avenue to Alexander Ford. To enforce the covenants and easements included with the exchange, the proposed deed (similar to the 2019 Crest Drive deed) carries a right-of-reverter, meaning the property reverts to the City if Alexander Ford fails to maintain the Bonanza Basin or reserved easements as required. Additionally, BJA Enterprises, an affiliate of Bill Alexander Ford, will dismiss its federal takings lawsuit (Case No. 2:20-CV-01901) against the City of Yuma, each party to bear their own attorney’s fees and costs.
Location maps of the described parcels are attached to the proposed ordinance.
FISCAL REQUIREMENTS:
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CITY FUNDS: |
$ 0.00 |
BUDGETED: |
$ 0.00 |
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STATE FUNDS: |
$ 0.00 |
AVAILABLE TO TRANSFER: |
$ 0.00 |
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FEDERAL FUNDS: |
$ 0.00 |
IN CONTINGENCY: |
$ 0.00 |
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OTHER SOURCES: |
$ 0.00 |
FUNDING: ACCOUNT/FUND #/CIP |
TOTAL $ 0.00
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To total; right click number & choose “Update Field” |
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FISCAL IMPACT STATEMENT:
NONE
ADDITIONAL INFORMATION:
SUPPORTING DOCUMENTS NOT ATTACHED TO THE CITY COUNCIL ACTION FORM THAT ARE ON FILE IN THE OFFICE OF THE CITY CLERK:
NONE
IF CITY COUNCIL ACTION INCLUDES A CONTRACT, LEASE OR AGREEMENT, WHO WILL BE RESPONSIBLE FOR ROUTING THE DOCUMENT FOR SIGNATURE AFTER CITY COUNCIL APPROVAL?
☐ Department
☐ City Clerk’s Office
☒ Document to be recorded
☐ Document to be codified
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Acting City Administrator: |
Date: |
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John D. Simonton |
03/25/2025 |
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Reviewed by City Attorney: |
Date: |
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Richard W. Files |
03/23/2025 |