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24-0220_PAUL VALENZUELA TRUST_Agenda Report_F2aCity 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: February 20, 2024 SUBJECT: Resolution of Intention to Abandon and Sell a Portion of City-Owned Park Land Located at 28432 Calle Arroyo (Mission Trails Property) to the Paul J. Valenzuela Trust and Setting a Hearing Date for Consideration of Protests to the Property Sale (Accessor Parcel Number: 664-071-01); and Finding Said Action is Exempt from the California Environmental Quality Act (CEQA) Per Section 15061(b)(3) RECOMMENDATION: 1.Approve a Resolution of Intention declaring the City’s intent to sell an approximately 6.78-acre portion of City-owned park land property located at 28432 Calle Arroyo (Mission Trails Property) to the Paul J. Valenzuela Trust; and, set a hearing date for consideration of protests to the property sale. 2. Find the recommended action exempt from the California Environmental Quality Act (CEQA) per Section 15061(b)(3). EXECUTIVE SUMMARY: The Paul J. Valenzuela Trust, represented by Mr. Paul Valenzuela, is proposing to acquire a 6.78-acre portion of City-owned property located at 28432 Calle Arroyo currently operated, pursuant to a Lease Agreement with Mr. Valenzuela, as the Mission Trails equestrian stables. 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 noticing process, and conducts a public hearing to consider any objections to the sale. The proposed Resolution (Attachment 1) would satisfy this requirement and also set a date of the April 2 City Council meeting for consideration of a purchase agreement and hearing of any protests 2/20/2024 F2a City Council Agenda Report February 20, 2024 Page 2 of 4 to the sale. The proposed sale of the property to the current operator at fair market value is envisioned to facilitate improved options for long-term use of the site, and preservation of equestrian uses within the community while mitigating future risk and maintenance obligations associated with City ownership. 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. City Council Agenda Report February 20, 2024 Page 3 of 4 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. 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 periods, the City received notice from the Department of Housing and Community Development that the City had complied with all aspects of the Surplus Land Act and is free to move forward with the potential sale of the property. Following 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. Pending City Council approval of the Resolution of Intention, the subsequent Purchase and Sale Agreement would include a provision restricting the uses on the property to equestrian stable operations. 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 resolution declaring the City’s intention to sell a 6.78-acre portion of park land located at 28432 Calle Arroyo to the Paul J. Valenzuela Trust. Pending City Council approval of the Resolution of Intention, staff would return to the City Council at the April 2 meeting with a recommendation to complete the transaction via approval of a Purchase and Sale Agreement. FISCAL IMPACT: There is no fiscal impact associated with the recommended action, which is only to adopt a Resolution of Intention to sell City-owned property. If the purchase agreement is approved following a public hearing on April 2, the proceeds of the sale 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 per Section 15061(b)(3), the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The approval of a Resolution of Intention will not have a significant effect on the environment and any future project proposed for the site would be subject to separate CEQA review. City Council Agenda Report February 20, 2024 Page 4 of 4 PRIOR CITY COUNCIL REVIEW: •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 Property) non-exempt surplus land. COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS: Not applicable. NOTIFICATION: Paul J. Valenzuela Trust Interested Parties Notification List ATTACHMENTS: Attachment 1: Proposed Resolution of Intention 61147.00150\41990512.1 1 RESOLUTION NO. 24-02-20-XX 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. 61147.00150\41990512.1 2 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: AYES: NOES: ABSENT: ABSTAIN: _______________________________ Sergio Farias, Mayor ATTEST: Maria Morris, City Clerk APPROVED AS TO FORM: Jeffrey S. Ballinger, City Attorney 61147.00150\41990512.1 3 EXHIBIT A Property Depiction [Attached Behind This Cover Page] 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. 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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 2