Loading...
24-0507_PAUL VALENZUELA TRUST_Agenda Report_D1City of San Juan Capistrano Agenda Report TO: Honorable Mayor and Members of the City Council FROM: Benjamin Siegel, City Manager SUBMITTED BY: Matisse Reischl, Assistant City Manager DATE: May 7, 2024 SUBJECT: Purchase and Sale Agreement for a Portion of City-Owned Park Land Property Located at 28432 Calle Arroyo (Mission Trails Property) with the Paul J. Valenzuela Trust (Accessor Parcel Number: 664-071-01); and Finding Said Action is Exempt from the California Environmental Quality Act (CEQA) Per Sections 15301 and 15312 RECOMMENDATION: 1.Approve and authorize the City Manager to execute a Purchase and Sale Agreement, substantially in the form attached, for the sale of 6.78-acres of City- owned property located at 28432 Calle Arroyo with the Paul J. Valenzuela Trust; and, 2. Find the recommended action exempt from the California Environmental Quality Act (CEQA) per Sections 15301 and 15312. EXECUTIVE SUMMARY: On February 20, 2024, the City Council adopted a Resolution of Intention (Attachment 1) declaring the City’s intent to sell 6.78-acres of City-owned property to the Paul J. Valenzuela Trust, represented by Mr. Paul J. Valenzuela. The property is located at 28432 Calle Arroyo and currently operated, pursuant to a Lease Agreement with Mr. Valenzuela, as the Mission Trails equestrian stables. The proposed sale of the property to the current operator at fair market value is envisioned to facilitate preservation of equestrian uses within the community while mitigating future risk and maintenance obligations associated with City ownership. The property is designated as park land, and the sale of park land is governed by the Municipal Park Abandonment Law of 1939 (Government Code Sections 38501 et seq.). This law establishes that the land may be sold provided the City Council adopts a Resolution of Intention, follows a prescribed 5/7/2024 D1 City Council Agenda Report May 7, 2024 Page 2 of 5 noticing process, and conducts a public hearing to consider any objections to the sale. All publication and noticing requirements have been complied with in support of the proposed sale of public land. DISCUSSION/ANALYSIS: The City owns an approximately 13.5-acre parcel located at 28432 Calle Arroyo. The parcel was originally dedicated to the City for park purposes in conjunction with the adjacent Mission Springs residential development project. The parcel consists of a portion of C. Russell Cook Park, a portion of San Juan Creek, segments of two public trails, and the Mission Trails equestrian stable facility. The sections of the parcel that include a portion of C. Russell Cook Park, San Juan Creek, and segments of two public trails would be excluded from the potential sale as indicated in the aerial image of the site provided below. Once more, only the 6.78-acre portion of the parcel, which is currently operated as an equestrian stable, is recommended to be sold. The parcel has a General Plan Land Use Designation and Zoning Classification of Community Park (CP). Allowed uses are recreational in nature including sports fields, equestrian, public facilities, and accessory structures. To provide flexibility as it considered options for long-term use and ownership of the site, in February 2023, the City Council directed staff to initiate the Surplus Land Act noticing process for the approximately 6.78-acre equestrian stable portion of the parcel. Following City Council Agenda Report May 7, 2024 Page 3 of 5 completion of the Surplus Land Act process, the City received a formal offer from Mr. Valenzuela to purchase the property for the appraised value of $1.47 million for the continuation of equestrian stable operations. In addition to the sale of the property, three operational parameters would be memorialized within the proposed Purchase and Sale Agreement. First, a restrictive covenant would be recorded against the property indicating allowed uses on the property are restricted to equestrian stable operations and other uses permitted by the City’s General Plan and Zoning so long as the other allowed uses are accessory to an active equestrian stable operation. Second, to ensure all equestrian operations are contained on the property and proper ingress and egress is maintained, the proposed Agreement also requires that no vehicle parking or equipment storage occur within 25 feet of the eastern property line abutting Avenida Siega, which is the primary vehicle entrance to the site. Third, due to site constraints and to support equestrian operations on the property, the proposed Agreement would also allow Mr. Valenzuela limited motorized vehicle access along the portion of the City-owned San Juan Creek Multi-Use Trail which runs along the southern property line of the Mission Trails property. The access would be limited to transporting equines and equestrian related materials or supplies onto the property, as well as waste collection by CR&R Environmental Services, the City’s franchise waste hauler. Vehicles would be restricted to daylight hour use, a speed limit of 5 miles per hour, and Mr. Valenzuela would provide the City with insurance. Although this activity has been ongoing without issue pursuant to the current Lease Agreement with Mr. Valenzuela, should issues arise the City would have the ability to terminate trail access with 30-day notice to Mr. Valenzuela. In 2019, the State took several actions to make public lands available for affordable housing development including modifications to the Surplus Land Act. The Surplus Land Act requires that prior to the sale of surplus land, unless an exemption applies, cities must provide notice to affordable housing developers that a property is potentially available for development. On February 7, 2023, the City Council adopted a resolution declaring the Mission Trails property non-exempt surplus land and approved issuance of a Notice of Availability to all required parties. Following the required noticing and negotiation period, the City received notice from the Department of Housing and Community Development that the City had complied with all requirements of the Surplus Land Act and is free to move forward with the proposed sale to the Paul J. Valenzuela Trust. The Surplus Land Act also requires that concurrently with a potential future sale, a restrictive covenant must be recorded against the property stipulating that if ten or more residential units are constructed on the site at least 15% are to be rented or sold at affordable housing rates; however, due to General Plan land use restrictions and FEMA regulations, housing would likely be infeasible. As the City has received notification that all provisions of the Surplus Land Act have been met, staff recommends that the City Council approve the proposed Purchase and Sale City Council Agenda Report May 7, 2024 Page 4 of 5 Agreement for sale of the City-owned property to the Paul J. Valenzuela Trust for the fair market value sale price of $1.47 million and authorize the City Manager to execute the agreement (Attachment 2). Pending City Council approval of the agreement and prior to disposition of the property, State law requires the Planning Commission determine the sale of the City-owned property is consistent with the City’s General Plan. The Planning Commission is scheduled to consider the matter at its June 26, 2024, meeting. Additionally, staff has reviewed the applicable regulations and guidelines and determined that the City-owned parcel is not located in an area of statewide, regional or areawide significance and is not located in the areas of critical environmental sensitivity identified in California Environmental Quality Act (CEQA) Section 15206 (b) (1-7). Therefore, the recommended action and proposed property sale are exempt from further CEQA review. FISCAL IMPACT: Approval of the recommended action would result in $1.47 million in one-time sales proceeds and would be deposited to the City’s General Fund for future appropriation by the City Council. ENVIRONMENTAL IMPACT: In accordance with the California Environmental Quality Act (CEQA), the recommended action is exempt from CEQA on multiple grounds. First, under State CEQA Guidelines, section 15312, the recommended action is categorically exempt pursuant to a Class 12 categorical exemption for surplus government property sales. The City may sell surplus government property except for parcels of land located in an area of statewide, regional, or area wide concern identified in the State CEQA Guidelines Section 15206(b)(4). The parcel that the City proposes to sell is not located in an area of statewide, regional, or area wide concern identified in the State CEQA Guidelines Section 15206(b)(4). As a separate and fully independent justification, the recommended action is also categorically exempt from CEQA review pursuant to a Class 1 categorical exemption for existing facilities under State CEQA Guidelines, section 15301. The property is proposed to be sold for continuation of existing uses. There will be no change in the existing use of the site. None of the exceptions to the categorical exemptions in State CEQA Guidelines, section 15300.2, applies. PRIOR CITY COUNCIL REVIEW: • On April 2, 2024, the City Council continued the Public Hearing for consideration of a purchase and sale agreement to May 7, 2024. • On February 20, 2024, the City Council approved a resolution declaring its intent to sell the approximately 6.78-acre portion of City-owned park land property located at 28432 Calle Arroyo (Mission Trails Stables) to the Paul J. Valenzuela Trust. City Council Agenda Report May 7, 2024 Page 5 of 5 • On February 7, 2023, the City Council approved a resolution declaring the approximately 6.78-acre portion of City-owned property located at 28432 Calle Arroyo (Mission Trails Stables) non-exempt surplus land. COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS: Not applicable. NOTIFICATION: Paul J. Valenzuela Trust Interested Parties Notification List ATTACHMENTS: Attachment 1: Resolution of Intention Attachment 2: Recommended Purchase and Sale Agreement 61147.00150\41990512.1 1 2/20/2024 RESOLUTION NO. 24-02-20-01 A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO TO ABANDON AND SELL A PORTION OF CITY-OWNED PARK LAND LOCATED AT 28432 CALLE ARROYO PURSUANT TO THE MUNICIPAL PARK ABANDONMENT LAW OF 1939 (GOVERNMENT CODE SECTIONS 38501 ET SEQ.) WHEREAS, the City of San Juan Capistrano acquired approximately 13.596 acres of dedicated parkland described as Lot A of Final Tract Map 8485 for the Mission Springs Development Project (“Property”); and WHEREAS, the Property is comprised of 4.6 acres of active recreational space, 6.785 acres of an equestrian stable operation, and 2.388 acres of a portion of San Juan Creek; and WHEREAS, the City desires to abandon and sell the 6.785 acre equestrian stable operation portion which is identified on Exhibit A, attached hereto and incorporated herein by reference, as the Proposed Stable Parcel (6.785 AC.) (“Proposed Stable Parcel”) and retain the 4.6 acres of active recreational space (“Proposed Park Parcel”) and 2.388 acres of a portion of San Juan Creek (“Proposed River Parcel”) as City-owned parkland. A depiction of the Property is provided as Exhibit A; and WHEREAS, the Proposed Stable Parcel has not been deemed suitable for use as a City-owned park and has not been used by the public for park purposes since the property was dedicated to the City in 1978; and WHEREAS, the Municipal Park Abandonment Law of 1939, codified at Government Code sections 38501 et seq. (the “Act”) authorizes the City to sell land that was dedicated for parkland purposes; and WHEREAS, the City finds that the Proposed Stable Parcel has not been used by the public for park purposes, that no consideration has been paid for the land except by the city, and that no public funds have been expended to improve the land as a park; and WHEREAS, in order for the City to sell the Proposed Stable Parcel, the City must first abandon the Proposed Stable Parcel in accordance with the Act. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The above recitals are true and correct and are incorporated herein by reference and made a substantive portion of this Resolution. Attachment 1 61147.00150\41990512.1 2 2/20/2024 Section 2. It is the intention of the City Council of the City of San Juan Capistrano to abandon and sell the Proposed Stable Parcel pursuant to the provisions of the Municipal Park Abandonment Law of 1939. Section 3. A map showing the Proposed Stable Parcel to be abandoned and sold is on file in the Office of the City Clerk at 30448 Rancho Viejo Road, Suite 110, San Juan Capistrano, California, and is available for public inspection during the City’s normal business hours. Section 4. The proposed abandonment is set for hearing at 5 p.m., or as soon thereafter as the matter can be heard, on the 2nd of April 2024 in the City Council Chambers of the City of San Juan Capistrano at 31421 La Matanza Street, San Juan Capistrano, California. Section 5. A copy of this Resolution shall be published and posted in the manner prescribed by Section 38504 of the Government Code. PASSED AND ADOPTED by the City Council of the City of San Juan Capistrano at a regular meeting of the City Council on February 20, 2024, by the following vote: _______________________________ SERGIO FARIAS, MAYOR ATTEST: MARIA MORRIS, CITY CLERK STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF SAN JUAN CAPISTRANO ) I, Maria Morris, appointed City Clerk of the City of San Juan Capistrano, do hereby certify that the foregoing Resolution No. 24-02-20-01 was duly adopted by the City Council of the City of San Juan Capistrano at a Regular meeting thereof, held the 20th day of February 2024, by the following vote: AYES: COUNCIL MEMBERS: Taylor, Campbell, Bourne and Mayor Farias NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Hart ____________________________ MARIA MORRIS, CITY CLERK Attachment 1 61147.00150\41990512.1 3 2/20/2024 EXHIBIT A Property Depiction [Attached Behind This Cover Page] Attachment 1 PROPOSED PARKPARCEL (4.600 AC.)PROPOSED STABLEPARCEL (6.785 AC.)PROPOSED RIVERPARCEL (2.388 AC.)PROPOSED STABLE PARCELPARK PARCEL PROPOSEDLEGEND: _____ BOUNDARY OF PROPERTY DESCRIBED IN SAID TITLE REPORT. CENTERLINES FENCE -EDGE OF PAVEMENT PVMT PAVEMENT E'LY EASTERLY N'LY NORTHERLY NE'LY NORTHEASTERLY NW'LY NORTHWESTERLY S'LY SOUTHERLY SE'LY SOUTHEASTERLY SWLY SOUTHWESTERLY 'I/LY WESTERLY CONC. CONCRETE ELEC. ELECTRICAL GRAPHIC SCALE ( IN FEET ) 1 inch = 50 ft. --.. • • ,: I • T"I ff' --M18 • GAS VALVE 0.6' W'LY FROM PL " ~ N 00 " m m -"' u ~ "' ~ u Q 00 "' N ,; n 0 m 00 -'" ITT "' 0 !'e. ,; c;' n Q m "' w ~ '" '" ~ ~ b m f' 5 z . . • • A.L.T.A./N.S.P.S. LAND TITLE SURVEY CITY OF SAN JUAN CAPISTRANO, DATE OF SURVEY: COUNTY OF ORANGE, STATE OF CALIFORNIA I • <( ! lJ <( z LU f-Vl LU L=118.94' R1) \9'?..5·,,t_ R"'35a.oo· L=118.95' ASPHALT BIKE TRAILP W'L Y EDGE WAlER METER ON PL CHAINLINK FENCE CROSSES PL 4" STORM DRAIN___/11 FLOW LINE I FEBRUARY 2023 W.O. 1100-6 VIA ORDAZ ~ ----E[_ ---M11----N88"39'26"W 12267' 122.60' R1 M12 (f'F-38°00'26" f'F.38°□□'52'' TRACT NO. 8485 M.M. 426/41-43 RS 93-1022 ~ R.S.B. 144/37-49 .--.. --. -•t~'{ fo~S-----·-;;.,i.ati PAVEMENT EDGE~--'----?/>.\ft_~-------'?.,:o \,~.;. :-_:_*c--~:_:._:.___:.:==~t:"-;c-cc-£;~;;_:,3i-s'fi;ol\'\'2A:" N37°01'20"W 17.42' --(~\. , \~~01°20'50'E RAD ' ' -----------------, '' 6=37°58'51'~/ '-.:-,_N88'20'52"W 23. 19' R=3D.OD' L=19.89' -----,, ELECTRICAL LINE UNDERGROUND"""-.,_ ELECTRICAL VAULT~// ASPHALT \ • • b ~ ci ~ TRACT NO. 8485 M.M. 426/41-43 LOT IA NATIJRAL GROUND ,' ' y' /'-LIGHT POLE SIDEWALK / ,'-.,_FENCE APPROXIMATE LOCAllON APN: 664-071-02 NW'LY LINE OF DEED 358-364 PER R2 PAVEMENT EDGE _, I . \ \ \ •. . . \ \ • . . . . 8 \\\ . ' .. \• 0 I-10· I GRASS WATER VALVE 0=1 cc· / >-::;: -~---,.L-WATER BLOW OFF / ,, ~ "y~ CONCRETE EDGE + -~r \:\:_-~ WOOD FENCE CROSSES PL -" FENCE GATE CONCRETE EDGE SIGN 1.9' SE'L Y FROM PL TRAIL EDGE TRAIL EDGE CROSSES PL : .. , ... , : . .: . ....... ,., •':, :.) _: DIRT MS 11.35' (11.38' R2) -<:::: Ml \:--, .. . . <( u LU -Vl <( 0 z LU > <( . / \ \, ___ N01°01'59"E ,,__.~ 66.08' (66.10' R2) / // ! M6 _J ~ ~ ,c N • . . . · . • c;' Q 0 0 m ~ w • 5 N 2 5 z TRAIL EDGE CROSSES PL . I I I SHEET 2 OF 2 LINE TABLE LINE BEARING LENGTH L1 N18°37'09"W 29.01' L2 N44°47'06"E 12.38' CURVE TABLE CURVE DEL TA RADIUS LENGTH C1 46°24'16" 60.00' 48.59' C2 21°23'15" 15.00' 5.60' IF117°37'56" (IF117°38'36° R2)~,//,, . J ; NATURAL GROUND / . . . . . . . , / ,' . , , },'/ .' -----:: '-~ PRODUCED LINE FROM 1" IP THROUGH CL INT : _':>J~O/ M4 AT RECORD DISTANCE PER R2 AND CONNECTED / LINE TO M3. / / ,-------DETAIL A t-..R•Ro'<0 N89'29'36'W CA. \,_\._t 0 M15 (45.00' R1) ;:a::0~=--:~:~l.;-Ja''~'J6~7'-),;la~l_!;94j_.5!.i5:_'.::R)JI _.;;;.;.4_;;;.-=:4:4.;6:2•::_;.1\;~16 ~ Sly ELECTRIC r CONC. SIDEWALK WIDE CONC. TRAN~-:~~-:\-______ ----y-----. ___ ~10' WIDE PAVEMENT EDGE SIDEWALK~~-________ _ __ 1 SIGN ---~-------BOLLARD .-FENCE-GATE '1 1 . -~ ___--WOOD FENCE -\ •• \----10' WIDE PAVEMENT EDGE GAS VALVE~ 1 --CONC. EDGE I ELEC_ VAULT ' 1 \ I * -' \_ '---1;<1 ·-'-_ELEC. PANEL/-· I , \1~/ I '-L -\ ', -VAULT __ ----./ SIGN t. 1· j PV~~/EDGE w 0 5 N 2 5 z w PAVEMENT EDGE CROSSES PL PAVEMENT EDGE CROSSES PL PREPARED BY: HUNSAKER & ASSOCIATES R V N E ' N C PLANNING ■ ENGINEERING Three Hughes • Irvine, CA 92618 • PH: (949) 583-1010 ■ SURVEYING • FX: (949) 583-0759 PLOTTED BY: Ken Kouchi DATE: Feb. 16, 2023 01:17:01 PM FILE: l:\PW Mission Trails Stables\ALTA\SHT02.dwg 2Attachment 1 Attachment 2 Attachment 2 will be provided separately.