00-0801_STROSCHER ENTERPRISE_Agenda Report_ D5 6/5/2007
AGENDA REPORT D5
TO: Dave Adams, City Manager 9CA,
FROM: Douglas D. Dumhart, Economic Development Manager
SUBJECT: Consideration of Terminating the Second Amendment to the License
Agreement with Stroscher Enterprises for a Temporary Public Parking Lot at
26871 Ortega Highway and Transferring Project Funds to Overlay the
Capistrano Depot North Parking Lot. (APN 124-170-12)(Former Walnut
Grove Restaurant)
RECOMMENDATION:
Terminate the Second Amendment to License Agreement with Stroscher Enterprises
for a Temporary Public Parking Lot at the former Walnut Grove Restaurant; and
Transfer $55,000 budgeted funds to overlay the Capistrano Depot North Parking Lot.
SUMMARY:
On December 19, 2006, the City Council approved a Second Amendment to its License
Agreement with Stroscher Enterprise to add temporary parking on the site of the former
Walnut Grove Restaurant until such time as the property could be redeveloped.
During the meeting some Council Members expressed a desire to add mature
landscaping and lighting to the temporary lot, while others were concerned with the
costs of temporary improvements. The Second Amendment was approved with the
condition staff return with itemized bids for the Council's consideration. Below is a
breakdown of the quotes received for the temporary improvements to the Walnut Grove
lot.
Company Grading and Lighting Irrigation and Lowest Fee
Paving Landscaping
Nelson Paving $1161980.00
Sanders Paving $116,607.00
Imperial Paving $ 92,400.00 $ 92,400.00
Lewis Electrical $25,500.00 $ 25,500.00
A.C. Landscape $37,627.03 $ 37,627.03
Total $155,527.03
The fee quotes received are in a range that exceeds a reasonable expense for
temporary improvements. To that end, staff is recommending the City Council take
action to terminate the Second Amendment to the License Agreement with Stroscher
Enterprise and redirect the $55,000 earmarked for the Walnut Grove lot improvements
Agenda Report June 5, 2007
Page 2
towards permanent lot repairs in the Capistrano Depot north lot.
BACKGROUND:
On August 1, 2000, the City approved a License Agreement with Stroscher Enterprise,
LLC, a family partnership, to place a temporary public parking lot on the northeast
corner of EI Camino Real and Ortega Highway, site of the former Arco fueling station.
The temporary public parking lot was put in place to accomplish several goals. They
were:
a. To eliminate a blighted nuisance created in the heart of the Downtown when the
gas station was razed in 1999.
b. To create additional public parking to meet the increasing demand in the
Downtown.
c. To place a desirable temporary use on the property until a future redevelopment
project could be fostered with the family partnership and remaining business
interest.
Immediately adjacent to this temporary parking lot was the former Walnut Grove
restaurant. The Walnut Grove restaurant was closed in 2004 and its leasehold interest
extinguished. The building was razed in September of 2005. The family partnership
which owns these properties was reorganized in 2006. The City was approached by
the current Licensor Stroscher G3, LLC, and the successor in interest from Stroscher
Enterprise, LLC, about adding the former Walnut Grove Restaurant property to the
temporary public parking area.
On December 19, 2006, the City Council approved the Second Amendment to the
License Agreement with Stroscher G3, LLC, to provide for additional temporary public
parking spaces subject to the project costs returning for their consideration. Staff was
proposing minimal improvements and anticipated the expense to be approximately
$55,000. See financial considerations below.
Capistrano Depot North Parking Lot
In 1995, the Redevelopment Agency granted to the City reciprocal public access
Agreement through the Capistrano Depot north parking lot prior to selling the property.
The intent was to maintain public ingress and egress to the Multi-modal parking lot
through the Capistrano Depot lot via Camino Capistrano. The Agency then sold the
Capistrano Depot property to Manna Station, Inc.
In the reciprocal public access agreement the Agency is responsible for all maintenance
of the area covered by the agreement, including but not limited to, sweeping, landscape
maintenance, filling of pot holes, cracks and overlay of pavement, parking lot lighting,
signage and striping. A copy of the agreement is provided as Attachment 1 to this
report.
The Agency has been noticed by Manna Station of the maintenance obligation and the
Agenda Report June 5, 2007
Page 3
current condition of the lot. The lot has not received any maintenance since the sale of
the property a dozen years ago and the condition of the pavement, speed bumps, and
concrete drainage swale has deteriorated to the point that replacement is necessary.
Quotes for the Capistrano Depot parking lot repairs have been solicited and range from
$45,000 to $88,000. Staff is recommending the $55,000 earmarked for the temporary
Walnut Grove parking lot be redirected toward the repairs of the obligations of the
Reciprocal Public Access Agreement.
COMMISSION/BOARD REVIEW AND RECOMMENDATIONS:
A temporary use permit (TUP) for temporary public parking lot improvements was
processed before the Planning Commission on January 9, 2007. The Planning
Commission took the following action:
Commissioner Drey moved, seconded by Chairman Cardoza, to adopt
Resolution 07-1-9-2 approving temporary parking lot design located at 26871
Ortega Highway(Walnut Grove site)and granting exception for deviation from
Municipal Code Section 9.3-602 (D)(2) et. al., with the condition that prior to
the use of the parking lot after dark staff conduct lighting tests and provide
assurances that minimum light standards have been met to the satisfaction of
the City Attorney and Planning Director, with a site review by the Planning
Commission.
FINANCIAL CONSIDERATIONS:
Staff estimated the Walnut Grove property was capable of adding approximately 60
temporary public parking spaces to the downtown inventory. Driveway improvements,
grading, paving, stripping and landscaping costs were anticipated to be approximately
$45,000 to $55,000 based on past experience. Below was a history of costs incurred for
providing similar temporary parking lot improvements.
Lot Acquisition Improvements Spaces Year Built
Texaco $1179212 $105,000 68 1995
Mitchell $ 455,957 $ 48,000 42 1995
Love $ 372,580 $ 48,000 54 1995
ARCO $ 348,000* $ 45,000 38 2000
* Rent paid from 8/1/00 to 12/1/06.
Funding for the Walnut Grove improvements were to be redirected from account no. 26-
65300-4720-R04, Lower Rosan EIR to a new project account no. 26-65300-4720-Rl1
titled, "the Walnut Grove lot" to cover the anticipated expenses for the temporary
improvements.
Agenda Report June 5, 2007
Page 4
Rather than increase the commitment for temporary improvements at the Walnut Grove
property staff is recommending the $55,000 be used for repairs at the Capistrano Depot
North Parking Lot pursuant to the terms of the Reciprocal Public Access Agreement.
Terminate the Second Amendment to License Agreement with Stroscher Enterprises
for a Temporary Public Parking Lot at the former Walnut Grove Restaurant; and
Transfer $55,000 budgeted funds to overlay the Capistrano Depot North Parking Lot.
NOTIFICATION:
Gretchen Stroscher-Thompson, Stroscher G3, LLC.*
Guy Edwards, Manna Station, Inc.*
* Received a copy of Agenda Report
RECOMMENDATION:
Terminate the Second Amendment to License Agreement with Stroscher Enterprises
for a Temporary Public Parking Lot at the former Walnut Grove Restaurant; and
Transfer $55,000 budgeted funds to overlay the Capistrano Depot North Parking Lot.
Respectfully submitted,
'0004,awre
Douglas D. Dumhart
Economic Development Manager
Attachments 1: Reciprocal Public Access Agreement
Recorded at the Request ofP
CO
and Return to:
CITY CLERK'S OFFICE
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Exempt from Recording Fees Pursuant to
Government Code Section 6103
Documentary Transfer Tax:
No Consideration:
City initiated Public Access Agreement
i
CHERYL JO SOY<, CITY CLERK
CITY OF SAN JUAN CAPISTRANO
Project: Depot Parking Agreement
AP No.: 121-141-17
Address: 26701 Verdugo Street
San Juan Capistrano, CA 92675
Legal Desc: Portion of Lot 1, Book 1, Page 588,
Records of Los Angeles County.
RECIPROCAL PUBLIC ACCESS AGREEMENT
CAPISTRANO DEPOT PARKING LOT
The SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY(AGENCY) does
hereby grant to the CITY OF SAN JUAN CAPISTRANO (CITY) reciprocal public access to the
referenced property. Said agreement is to ensure future public vehicular and pedestrian access
between Verdugo Street and Camino Capistrano (via Mission Street right-of-way, northerly Depot
entry from Camino Capistrano).
Said access shall encompass the parking area as shown on Exhibit "A" attached hereto and made a
part hereof.
CITY shall defend, assume all responsibility for, and hold the AGENCY, its successors, employees
and agents, harmless from all claims or suits for any damages to property or injuries to persons
including accidental death, which may be caused by CITY'S use of said area for public access,
provided, however, that CITY shall not be liable for such property damage or bodily injury
occasioned by the sole negligence of AGENCY, its successors, patrons, employees or agents.
ATTACHMENT 1
AGENCY and its successors in interest shall be responsible for all maintenance within the Agreement
area,including, but not limited to, sweeping, landscape maintenance, filling of potholes, cracks and
overlay of pavement, parking lot lighting, signage and striping.
AGENCY and its successors in interest shall not modify, improve or inhibit public use of the
pedestrian/vehicular access area as shown on Exhibit "A" without prior written approval from the
CITY.
This Agreement shall become effective upon its recordation with the Orange County Recorder and
shall not be terminated except upon the written consent of the CITY and the AGENCY or its
successors.
The covenants contained herein shall be burdens upon and shall run with the property for the benefit
of the CITY and shall be binding upon the AGENCY and the AGENCY'S successors, assigns and
tenants.
IN WITNESS WHEREOF, this instrument has been executed this day of UiJ
lq
1995.
Vr
VI S RDLIN, CHARUVLAN,
SAN JUAN CAPISTRANO
REDEVELOPMENT AGENCY
ATTEST:
CHERYL J N, CITY CLERK
APPROVE AS TO FORM:
HARD DENHALTER, CITY ATTORNEY
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