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
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Attachment 2
Attachment 2 will be provided separately.