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Eminent Domain -3- September 15, 1999 by this proposed action. The technical aspects of the amendment were explained in detail to all participants at the workshop and questions were responded to. At the request of workshop members, the Marina Square Auto Center Node was divided into three sub -areas in this staff report to facilitate discussion. This staff report also addresses one question that could not be addressed in the workshop — how property appraisals for eminent domain are effected by hazardous materials contamination (discussed below). Effect of Hazardous Material Contamination on Property Appraisals When a site is identified for acquisition using eminent domain authority, an appraisal is conducted by an independent appraiser and an offer is made to purchase the property at the fair market value indicated in the appraisal. If the property is known to be contaminated or suspected of being contaminated based upon historical uses, then the Agency usually reserves the right to deduct remediation costs from the purchase price unless a different settlement is negotiated with the Agency or required by the court. DISCUSSION When the Joint Plan was adopted by the Board of Supervisors and the City Council in July 1993, the power of eminent domain was included only for a very limited number of parcels within the Project Area (primarily located in the unincorporated area of the County) because the initial focus of Redevelopment activity was to assist in renovating Bayfair Mall and securing Macy's as an anchor store. In addition, it was anticipated that the bulk of the available Redevelopment funds would be invested in the Bayfair Mall project. After the revitalization agreement had been concluded with the owners of Bayfair and additional funds became available, the Agency began to work on other redevelopment opportunities within the Project Area. When it was determined that additional projects could be supported, the Joint Plan was amended to place additional parcels under eminent domain authority (Amendment Nos. 2 and 3). Since that time, the Cherry City housing development and the Marina Auto Mall have finished their planning phases and are either completed or under construction. Though the use of eminent domain authority was not needed to consolidate properties for the Cherry City development as anticipated, it was instrumental in assembling properties for the Auto Mall project. The amendment proposed for consideration on September 20`h, focuses on expanding the Agency's eminent domain power to include additional properties within the unincorporated area of Alameda County and the City of San Leandro as shown on the attached Property List and Maps (Exhibit E of the Ordinance). The properties under consideration within the City of San Leandro are primarily located in areas where development concepts have been initiated (as with the Marina Square Auto Mall area) or drafted for consideration through public design charrettes (as with the Bal Theatre and the Islander areas). In addition, certain properties along the north end of East 141h Street (the "North Area Gateway") are included for future consideration to aid in the clean-up of this entry area and the development of the Chrysler -Plymouth dealership property. A more detailed discussion of the development goals for each of these areas follows. 9V