City of Reno
Nevada

Staff Report
2205

Staff Report (For Possible Action): Approval of a Non-Exclusive Easement Agreement to US Bancorp for the continued use, maintenance and care of an underground public parking garage that protrudes into City owned right of way commonly known as Ryland Street and South Virginia Street.

Information

Department:Public Works - Capital ProjectsSponsors:
Category:Agreement

Recommendation and Proposed Motion

Recommendation:  Staff recommends Council approval of the Non-Exclusive Easement Agreement to US Bancorp for the continued use, maintenance and care of an underground public parking garage that protrudes into City owned right of way, and authorization for the Mayor to sign.

 

Proposed Motion:  I move to approve staff recommendation.

Staff Report Formal Body

Summary: Council is asked to approve a Non-Exclusive Easement Agreement with US Bancorp for the continued use, maintenance and care of an underground public parking garage that protrudes under the sidewalk in the City owned right of way commonly known as Ryland and South Virginia Streets, Reno, NV. This proposed Easement Agreement defines the responsibilities and considerations of both parties for the continued use of the existing underground parking garage. Staff recommends Council approval of the Non-Exclusive Easement Agreement between the City of Reno and US Bancorp for the continued operation, maintenance and care of the underground parking garage that protrudes into City owned right of way, and authorization for the Mayor to sign.

 

Previous Council Action: 

January 22, 1973 – City Council approved a request for Security National Bank of Nevada to construct an underground parking garage to the curb line under the sidewalk along Ryland Street.

 

March 13, 2013 – Request to approve a Non-Exclusive License Agreement between the City of Reno and US Bancorp for the continued use, maintenance and care of an underground parking garage that protrudes into City owned right of way commonly known as Ryland Street and South Virginia Street was pulled from the consent agenda as US Bancorp wanted to discuss an Easement option rather than a License Agreement.

 

Background:  In 1973, Security National Bank of Nevada, predecessor to U.S. Bank, desired to construct a building with an underground parking garage which was designed to be built to the curb line under the sidewalk along Ryland Street and Virginia Street.  At the time of construction Ryland Street was under the jurisdiction of the City of Reno and Virginia Street was under NDOT jurisdiction.  City Council approved the construction of the garage and Security National Bank executed a Hold Harmless Agreement to the City, its officials, agents and employees from any costs, expenses, damage or liability for the portion of the garage on Ryland Street and executed a Lease Agreement with NDOT for a ten year term with two ten year extensions at a rental rate of $250 per ten year term. In May 1982, the City of Reno accepted this portion of Virginia Street as part of the City’s street system and is now under City jurisdiction.  Staff was not made aware of the NDOT lease, which expired in 2004. The lease has not been collected for the two ten year extensions. As a part of this license agreement the City will collect the back payments and will calculate the new payment at current year rates.

 

Discussion:  US Bancorp, successor in interest to Security National Bank, is in the process of selling the US Bank building located at the corner of South Virginia and Liberty Street, adjacent to the City owned right of way of Ryland, Liberty and Virginia Streets to One East Liberty Street, LLC.  In the process, it became aware to all parties that there was no current agreement in place with the City for the portion of the garage located with the City owned right of way, which is subject to a street easement for vehicular and pedestrian travel and related activities which the City holds in trust for the public. This proposed Easement reflects all the areas to be maintained as well as the responsibilities, terms and conditions of the use of City property in accordance with current City standards.  Staff, calculated the easement fee for both the Virginia Street and Ryland Street portion of the parking garage, having approximately 967 square feet on South Virginia and 1,141 square feet on Ryland at $7,770. This formula was calculated by taking what the previously proposed license agreements’ annual fee of $259.00 per year times 30 years, which staff feels, is the remaining time expectancy of the underground parking structure and averages out to approximately a $7.00 per square foot land value less 50% for the easement.  

 

Financial Implications:  None.  The amount for the Easement in the amount of $7,770 will be placed in the General Fund.

 

Legal implications:  Council will recall from earlier discussions, one of the ways an easement differs from a license is that easements convey rights, title, and interests in the property to another person or entity; whereas, a license gives permission for a person to enter upon the land and do a particular thing, but does not convey any interests in the property.  This easement conveys rights, title, and interests in the City’s easement to the Easement Holder, which may change over the years without permission from the City.  

 

This easement does contain a termination clause allowing the City to terminate the easement if the City needed or desired to expand the intersection or take some other action for the public good.  In order to expand the intersection, the City, or another governmental entity, would likely have to condemn and pay the Easement Holder for its right, title and interests that were conveyed by this easement.  

 

If the City’s easement were terminated, the easement under this agreement must also terminate.  

Meeting History

Apr 3, 2013 12:00 PM Video City Council Regular

ITEM E.3.

Steve Hardesty, Public Works Management Analyst, requested that section 1 on page 2 of the agreement be amended to included the following words: "depicted on Exhibit A and B and described more fully in the metes and bounds as set forth in Exhibit C."

The Councilpersons upheld the staff recommendation with the amendment outlined by staff.

RESULT:APPROVED [UNANIMOUS]
MOVER:Jenny Brekhus, Council Member
SECONDER:Neoma Jardon, Council Member
AYES:Robert Cashell, Jenny Brekhus, Sharon Zadra, Oscar Delgado, Neoma Jardon, Hillary Schieve
ABSENT:Dwight Dortch