PURPOSE

The purpose of this report is to provide the City Council with information to consider the extension of the time permitted to satisfy the conditions contained in vacations V-324 and V-326 affecting the Burbank Entertainment Village (BEV) AMC project site.

BACKGROUND

In 1999 the City Council adopted two vacation resolutions vacating an alley and a portion of Palm Avenue on the site required for the Burbank Entertainment Village (BEV) AMC Theater project.   The vacation resolutions conditionally vacated, 1) a portion of the alley between First Street and San Fernando Boulevard and between Magnolia Boulevard and Palm Avenue (V-324), by Resolution 25,582 (Exhibit A), and; 2) a portion of Palm Avenue between First Street and San Fernando Boulevard (V-326) by Resolution 25,595 (Exhibit B).    The vacation resolutions contained provisions that they would expire within 2 years from the date of adoption if the conditions had not been met allowing the vacations to be recorded with the Los Angeles County Registrar Recorder.  V-324 was adopted on August 3, 1999 and V-326 was adopted on August 31, 1999.

The time frame was considered to be sufficient time for Burbank Entertainment Village, LLC, the developer, to acquire all of the parcels surrounding the proposed alley vacation and satisfy the conditions of both resolutions.  Due to difficulties in obtaining financing to acquire and develop the proposed site, the developer was unable to acquire title to the site within the anticipated time frame.

On August 28, 2001 the City Council adopted Resolution 26,081 (Exhibit C), and Resolution 26,082 (Exhibit D) amending the two previously adopted resolutions to extend the time frame allowed to satisfy the conditions of the vacations.  Both vacation resolutions were amended to provide an additional year from August 28, 2001 to satisfy all conditions of both vacations.  The amended resolutions extended the expiration date to August 28, 2002. 

Although the expiration date for the amended resolutions was August 28, 2002, the resolution can be amended beyond the expiration date in order to extend the time within which the conditions can be met and the vacation can be recorded and go into effect.  Unlike most other types of City Council resolutions that become effective upon adoption, vacation resolutions vacating public rights of way and public service easements do not go into effect until they are recorded with the County Registrar.  Therefore, although the City Council approved the initial vacations, the resolutions never went into effect because the conditions had not yet been met.  The expiration date contained in the original, and amended vacation resolution, created a date beyond which the adopted resolution could not be recorded and become effective.  The expiration date does not invalidate the City Council approval of the initial vacation resolutions.  The expiration date can be amended thereby extending the time frame within which the conditions of the vacation can be satisfied and the vacation can become effective. The resolutions amending the expiration dates relate back to the adoption of the original vacation resolutions adopted in 1999.  The legal effect of the amending the expiration dates is that the original vacation resolutions did not expire.  

In this case, since the vacation resolutions had not gone into effect, and had been amended once, when it became evident that the vacation conditions would not be met by August 28, 2002, staff, and the developer, decided to delay any further extensions until such time as the conditions were ready to be completed.  

Due to unanticipated delays in satisfying the conditions of the vacation resolutions within the time frame of the amended resolutions, it is again necessary to amend the expiration dates one additional time to satisfy the conditions in order to record the vacations by June 18, 2003, in time for the opening of the new AMC Theater project.

ANALYSIS

The vacation conditions required certain activities including relocation, abandonment or protection and retention of in-place public utilities, construction of certain curbs, sidewalk and alley approaches, easement agreements with adjacent private property owners on San Fernando Boulevard to guarantee access to the rear of the properties on San Fernando Boulevard, storm water acceptance agreements, dedication of easements, and creation of fire lanes as necessary.  In order to satisfy the conditions for recordation it was necessary to acquire all private properties adjacent to the areas to be vacated and to construct necessary improvements and public utilities, and to close and eliminate the alley and to close and reconstruct the vacated Palm Avenue before the easement vacations could be recorded and go into effect.  Due to unanticipated delays in being able to satisfy all the conditions within the expected extended period the developer was not able to satisfy all of the conditions.

The time frames imposed in the original and amended vacation resolutions were not intended to void the vacation of the alley and Palm Avenue and were intended to provide the necessary time to satisfy the conditions.  The time frames were included simply as a means of returning the alley and street rights of way to public use if the project were never built, recognizing that it would be necessary to eliminate both the alley and vacated Palm Avenue in order to satisfy the vacation conditions.  Therefore, the vacation resolutions anticipated that if the project went forward the alley and vacated Palm Avenue would be eliminated and there would be no need to retain conditions to return the rights of way to the public.   

The AMC project is scheduled to open on June 18, 2003, all conditions of the vacation have been met and the project has been substantially completed at the writing of this report.  There is no longer the necessity to retain any conditions which might return the vacated rights of way to the City and the vacation resolutions can now be recorded with the Los Angeles County Registrar Recorder.  It is necessary to amend the vacation resolutions to eliminate the inconsistencies in the language relating to the time frames for expiration in the vacation resolutions so that they will be accepted for recordation by the County of Los Angeles.  The proposed resolutions will extend the time frame to satisfy the conditions one additional year To August 28, 2003.

FISCAL IMPACT

The adoption of the resolutions amending the time frames will have no fiscal impact to the City.

RECOMMENDATION

Staff recommends that the City Council approve the proposed resolutions amending Resolutions 26,081 and 26,082

EXHIBITS

Exhibit A          Resolution 25,582

Exhibit B          Resolution 25,595

Exhibit C          Resolution 26,081

Exhibit D          Resolution 26,082

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