HomeMy WebLinkAboutS16 - Sunset Ridge ParkCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. S16
August 22, 2006
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Dave Kiff, Assistant City Manager
City Manager's Office- 949 -644 -3002
dkff@city.newport-beach.ca.us
SUBJECT: RESOLUTION 2006-: AUTHORIZATION TO PURCHASE 15.05 ACRES
OF LAND AT SUPERIOR AND WEST COAST HIGHWAY (CALTRANS
PARCEL DD #40766 -01 -01.— "SUNSET RIDGE PARK ") FOR $5,000,000;
BUDGET AMENDMENT
DATIONS:
Resolution 2006 - authorizing the purchase of Sunset Ridge Park, authorizing
the City Manager to execute all relevant documents, and stating the City's
agreement with the terms of a Purchase and Sale Agreement and draft Deed;
2. Authorize the Mayor to execute a Purchase and Sale Agreement for Caltrans
Director's Deed #40766 -01 -01 ( "Sunset Ridge Park ") for $5,000,000 paid over
three fiscal years at 4.75% interest on any unpaid principal provided that the
Agreement is substantially similar to the attached Purchase and Sale Agreement;
and
Approve Budget Amendment #_ as follows: $900,000 from Unappropriated
Park In Lieu Reserves and $1,100,000 from Unappropriated General Fund
Reserves to CIP Account #7021- C5100515.
DISCUSSION:
Following the passage of Senate Bill 124 (Johnson, 2001), the City has worked with
Caltrans and California State Parks to attempt to secure two parcels near Superior and
PCH for the Sunset Ridge Park project. After extensive talks during 2005 involving then
State Senator John Campbell, the state Department of General Services, Caltrans, and
the City, we discussed at a staff level the purchase both parcels of land with the City
being the fee simple owner of the two parcels, rather than just leasing the large parcel
from State Parks and operating it as a locally- operated unit of the State Park system.
The City purchased the small (1.88 acre) parcel in September 2005 for $175,000.
Purchase of Caltrans Land (DD 40766 -01 -01)
August 22, 2006
Page 2
The proposed purchase price of the large parcel (15.05 acres — Superior and PCH) is
$5 million, paid in three installments with 4.75% interest:
• $2.0 million by December 31, 2006;
• $1.5 million by December 31, 2007 (plus $142,500 in interest); and
• $1.5 million by December 31, 2008 (plus $71,250 in interest).
There would be a deed restriction applied to the Large Parcel that would require the City
to use the property as a park, and that if we chose to remove the park use and sell the
property, it must be sold at fair market value — then the City would remit to Caltrans the
amount above $5 million for the sale.
The Council's action tonight does not complete the sale. Whatever we agree to must be
approved by the California Transportation Commission (CTC) at the CTC's September
6 -7 meeting in Santa Barbara. Mayor pro Tern Rosansky and I intend to attend the
meeting in support of the sale, if Council approves this Agreement and Resolution.
Environmental Review: -
The sale of surplus government property is categorically exempt under Section 15312 of
CEQA.
Funding Availability:
Upon approval of the recommended Budget Amendment, sufficient funds will be
available in the following account for the project:
Account Description
Sunset Ridge Park Land Acquisition
Submitted by:
Dave Kiff
Assistant City Manager
Account Number Amount
7021- C5100515 $2,000,000
Attachments: Resolution 2006 -
Draft Purchase and Sale Agreement
Draft Deed (including Exhibit A— Map and Legal)
Budget Amendment
Purchase of Caltrans Land (DD 40766 -01 -01)
August 22, 2006
Page: 3
RESOLUTION 2006-
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NEWPORT BEACH
AUTHORIZING THE PURCHASE OF SUNSET RIDGE PARK
AND AGREEING TO TERMS AND CONDITIONS ASSOCIATED WITH A
PURCHASE AND SALE AGREEMENT FOR THE PARK PROPERTY
WHEREAS, the City of Newport Beach and its residents have long envisioned the
15 acres of land at the corner of Superior Avenue and Coast Highway as a park, including
both active and passive components; and
WHEREAS, extensive dealings with the owner of the property, California
Department of Transportation ( "Caltrans "), have occurred in the nearly thirty years since
this property was declared surplus in 1976; and
WHEREAS, the City of Newport Beach was successful in sponsoring Senate Bill
124 (Johnson, 2001) which authorized the transfer of Sunset Ridge Park to the California
Department of Fish and Game from the California Department of Transportation
( "Caltrans ") for a purchase price of $1.3 million as long as the City entered into an
Operating Agreement with State Parks to operate the land as a park; and
WHEREAS, further discussions with Governor Schwarzenegger's administration,
the State Department of General Services, members of the Legislature, and others, have
led the City and Caltrans to propose a direct sale of the property to the City at a price of
$5,000,000; and
WHEREAS, the direct sale would be completed through a Purchase and Sale
Agreement and deed restrictions that would provide that:
The $5 million be paid in three installments and at 4.75% interest;
The property must be used as a park; and
If the City decides to sell the property, it must remit to Caltrans any amount over $5
million.
WHEREAS, this Purchase and Sale Agreement requires the approval of the
California Transportation Commission (CTC); now, therefore, be it:
RESOLVED by the City Council of the City of Newport Beach that it hereby:
1. Authorizes the purchase of the Sunset Ridge Park large parcel (15.05 acres)
from Caltrans at a price of $5 million paid in three installments at 4.75% interest;
and
2. Authorizes the Mayor of the City of Newport Beach to execute a Purchase and
Sale Agreement to this effect; and
Purchase of Caltrans Land (DD 40766- 01 -01)
August 22, 2006
Page: 4
3. Authorizes the City Manager to execute any related documents that might
accompany the Purchase and Sale Agreement in order to accomplish the sale
of the property; and
4. Agrees to a deed restriction or restrictions that limit the use of the property to
park or open space uses and that would require the City to remit to Caltrans any
sale revenues for the parcel over $5 million if the City later chooses to sell the
property for another use.
ADOPTED this 22nd Day of August, 2006.
DON WEBB
Mayor of Newport Beach
ATTEST:
LAVONNE HARKLESS
City Clerk
STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION
PURCHASE AND SALE AGREEMENT — REAL PROPERTY DD040766 -01 -01
In this Agreement dated August 9, 2006 by and between CITY OF NEWPORT BEACH hereinafter
known as `BUYER" and STATE OF CALIFORNIA, DEPARTMENT OF TRANSPORTATION,
hereinafter known as "SELLER ", the parties agree as follows:
For the sum of Five Million Dollars ($5,000,000) and no cents, Buyer hereby agrees to purchase and
Seller hereby agrees to sell the vacant and unimproved real property located in the City of Newport
Beach, Orange County, California, and legally described in Director's Deed # 040766 -01 -01
(hereinafter referred to as the "property ").
Subject to the following conditions:
Buyer agrees to pay for the said real property to State the principal sum of Five million dollars '
($5,000,000). A series of three payments shall be made to the State of California, Department of
Transportation, and delivered to the State of California, Department of Transportation, Southern Right
of Way Region, Excess Land Sales, 21073 Pathfinder Road, Suite 100, Diamond Bar, CA 91765.
Interest will begin on January 1, 2007. Principal and interest to be due and payable in annual
installments as follows:
1. Principal payment of $2.0 million by December 31, 2006;
2. Principal payment of $1.5 million plus interest of $142,500 by December 31, 2007; and
3. Principal payment of $1.5 million plus interest of $71,250 by December 31, 2008.
(a) Each annual installment shall be credited first on interest then due and the remainder on
principal so credited.
(b) Buyer may make additional payments on the principal at any time before final installment,
and interest shall thereupon cease upon said principal so credited.
(c) If Buyer should default in the payment of any annual installment, or any part thereof, when
due as herein provided, and such default should continue for thirty (30) days after notice thereof in
writing to Buyer, the whole of said purchase price shall at the option of the State become forthwith due
and payable.
(d) It is understood and agreed that the term of this agreement shall end on December 31, 2008
and the buyer shall make payment in full including principal and interest by that date.
(e) The Deed shall record after receiving CTC approval and the 151 payment of $2.0 million.
The State will not record the Deed until the first payment of $2.0 million has been received.
II
All sales made subject to the approval of the California Transportation Commission. In the event that
the California Transportation Commission fails to approve this sale, all monies heretofore paid by the
Buyer will be refunded without interest.
III
The Seller is willing to process this sale at no charge to the Buyer, except for the items set forth in
paragraph IV below. Buyer, at his option, may open an escrow at its own expense. The Seller will pay
no escrow fees.
Page 1 of 3
STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION
PURCHASE AND SALE AGREEMENT - REAL PROPERTY DD040766-0 1 -0 1,
IV
The Buyer agrees to pay any and all recording fees, documentary transfer tax and monumentation fees
chargeable by the County Recorder. At a later date, the Seller will request the fees forwarded, and
buyer shall submit to the seller upon demand.
V
The Buyer expressly understands that the right, title and interest in the property to be conveyed shall
not exceed that vested in the State of California and that the Seller will furnish no policy of title
insurance. If a policy of title insurance is desired, the Seller will obtain one, upon request, at the
Buyer's expense.
VI
The property is being sold "as is" and is being conveyed subject to any special assessments,
restrictions, reservations or easements of record and subject to any reservations or restrictions
contained in the Director's Deed. (See Exhibit "A ") Buyer has read and understands other
information the Seller has relative to these matters.
VII
In the event suit is brought by either party to enforce the terms and provisions of this Agreement or to
secure the performance hereof, each party shall bear its own attorney's fees. The Buyer agrees that the
title of the property being conveyed shall not pass until the Director's Deed has been recorded. The
Buyer shall not take possession of the property until the director's Deed is recorded
VIII
Buyer shall defend, indemnify, and hold seller and seller's elected and appointed officers agents and
employees free and harmless from and against any and all liabilities, damages, claims, costs and
expenses (including without limitation, attorney's fees, legal expenses and consultant's fees, and
investigation and remediation costs) arising in whole or in part from the existence of hazardous
substance, or hazardous substance conditions. This indemnity is intended to address that liability for
which seller may be responsible arising solely out of its mere ownership of said real property. This
provision shall survive transfer of title of the said real property and any rescission of the said transfer.
"Hazardous Substance" shall mean any substance whose nature and / or quantity of existence, use,
manufacture, disposal of effect, render it subject to federal, state or local regulation, investigation,
remediation or removal as potentially injurious to public health or welfare, including the
comprehensive Environmental Response Compensation and Liability Act or Resource Conservation
and Recovery Acts as now in effect.
"Hazardous Substance Condition" shall mean the existence on or under, said property of a hazardous
substance that requires remediation and / or removal and / or to be otherwise mitigated pursuant to
applicable law.
Page 2 of 3
STATE OF CALIFORNIA
DEPARTMENT OF TRANSPORTATION
PURCHASE AND SALE AGREEMENT - REAL PROPERTY DD040766-0 1 -01
Ix
This New Purchase Agreement supercedes and replaces any and all previous agreements of any kind.
The terms and conditions of the above agreement are hereby accepted, subject to the approval of the
California Transportation Commission.
Please indicate exactly how the title should be vested:
City of Newport Beach, California
Buyer:
(Signature)
DON WEBB, Mayor of Newport Beach
STATE OF CALIFORNIA
By:
Geri Moore, Chief
Excess Land, Southern Right of Way Region
Page 3 of 3
Date: August 22, 2006
DEPARTMENT OF TRANSPORTATION
Date:
RECORDING REQUESTED BY AND WHEN
RECORDED MAIL TO:
State of California
DEPARTMENT OF TRANSPORTATION
Caltrans — District 12
Office of Right of Way
3337 Michelson Drive Suite CN380
Irvine, CA 92612 -1699
Attn: R/W Excess Lands
Exhibit "A"
map No.: a imo ru- w Space
RWPE: C. SMYTHE (01/04/01)
Wntten:CS Check=
DIRECTOR'S DEED
District
Doun
RD
Post
19.7
Number
l2
Oran
DD 040766 -01.01
The STATE OF CALIFORNIA, acting by and through its Director of Transportation, does hereby grant to the
City of Newport Beach
all that real property in the City of Newport Beach County of Orange , State of California, described as:
Parcel No. DD 040766 -01 -01
That portion of Lot 1 of Tract No. 463 in the City of Newport Beach, County of Orange, State of
California as shown per a map filed in Book 32, Pages 2 and 3 of Miscellaneous Maps in the office of
the County Recorder of said county; that portion of Lot 1 of Tract No. 2250 as shown per a map filed
in Book 104, Pages 6 and 7 of said Miscellaneous Maps; that portion of Melrose Mesa (Tract No. 15) as
shown on a map filed in Book 9, Page 19 of said Miscellaneous Maps; that portion of Lot D of the
Banning Tract, as shown on a map of said tract filed in the case of Hancock Banning, et al. vs. Mary
H. Banning for partition, and being Case No. 6385 upon the Register of Actions of Superior Court of
Los Angeles County, California, bounded as follows:
Bounded northeasterly by the northeasterly line of the lands described as Parcel 1 of State Parcel No.
40767 in a Grant Deed recorded February 14,1966 in Book 7839, Page 739 of Official Records in the
office of the County Recorder of Orange County, California;
MAIL TAX
STATEMENTS TO:
Page 1 of 5
Form RW 6-1(S) (Revised 4/96)
Exhibit "A"
Bounded westerly by the westerly line of said Grant Deed, said westerly line also being the described
as a portion of the northerly prolongation of the westerly line of Annexation No. 55 to the City of
Newport Beach dated September 19,1963;
Bounded southwesterly by the northeasterly line of "new" Pacific Coast Highway as described in a
Director's Deed (State Parcel No. DD 040767- 03 -01) from the State of California to the City of
Newport Beach, a municipal corporation, recorded May 6, 1993 as Instrument No. 93- 0304178 of said
Official Records;
and bounded southerly and southeasterly by the center line of "new" Superior Avenue as described in
a Director's Easement Deed (State Parcel No. DE 040766 -1) from the State of California to the City of
Newport Beach, a municipal corporation and charter city, recorded May 6, 1993 as Instrument No. 93-
0304175 of said Official Records.
EXCEPTING THEREFROM those rights and interests previously excepted from that parcel of land
described in the deed from A.E.S. Chaffey, et al., to the State of California (State Parcel No. 40766),
recorded January 7, 1966 in Book 7801, Page 108 of said Official Records.
ALSO EXCEPTING THEREFROM those rights and interests previously excepted from those parcels
of land described in the deed from BEECO, LTD., to the State of California (State Parcel No. 40767),
recorded February 14, 1966 in Book 7839, Page 739 of said Official Records.
SUBJECT TO an easement for storm drain purposes, 35.00 feet wide; and an easement for sanitary
sewer purposes, 30.00 feet wide, both as described in a Director's Deed (State Parcel No. DE 040767-
01-02) from the State of California to the Newport Crest Homeowners Association, a California
Nonprofit Mutual Benefit Corporation, recorded September 11, 1990 as Instrument No. 90- 479322 of
said Official Records.
There shall be no abutter's rights of access appurtenant toca0- eryreal property in and to
the adjacent state highway over and across those portions of the northeasterly line of "new" Pacific
Coast Highway hereinabove described in said deed recorded as Instrument No. 93- 0304178 of Official
Records, said portions of the northeasterly line being further described as having a bearing and a
distance of "North 54 °21'52" West, 215.42 feet" and "North 53 °13'07' West, 167.37 feet ".
In the event that this property is conveyed within ninety-nine (99) years of the recordation of this deed
by City of Newport Beach ( "City") to another buyer ( "subsequent sale "), City shall pay to the State
Department of Transportation ( "State ") the fair market value of the property at the time of the
subsequent sale exceeding the amount of FIVE MILLION DOLLARS ($5,000,000) within sixty (60)
days of the subsequent transfer. If this amount is not paid in full within sixty (60) days, interest will
accrue at the rate specified by the Surplus Money Investment Fund from the date of the subsequent
sale. City further agrees to provide State with copies of all resale documents including, but not limited
to, sales contracts and conveyance documents within thirty (30) days of recording said subsequent sale.
City hereby agrees to allow State to audit pertinent sale records at any time.
Sheet 2 of 5
Form RW 6-1(S) (Revised 4196)
Exhibit "A"
In the event City ground leases this property to a for - profit user for the production of rent with said
ground lease having a commencement date within ninety -nine (99) years of the recordation of this
deed ( "Lease "), City shall remit a share of the fair market lease rate to the State over the term of the
Lease. Such remittance shall be the fair market rent. A copy of the Lease shall be provided to the
State and periodic remittance to the State of the State Share shall be payable within thirty (30) days of
receipt of rent for the Lease by City.
The measure of "fair market value" or "fair market rent" shall be determined consistent with Code of
Civil Procedure Section 1263.320 (a).
Attached hereto and made a part hereof is a map entitled "Exhibit `A "'. This map is for informational
purposes only and is subordinate in all respects to the above legal description.
This real property description has been prepared by me, or under my direction, in conformance with
the Professional Land Surveyor's Act.
Signature:
:OTT E.
EXPIRA
Date: 9/ 15 / zM 6
Page 3 of 5
Form RW 6-1(6) (Revised 4/96)
jt E. FS\
` Rp 12/31 /06 / )*
NO. 7066 /
I
SITE
�•.` �y�� w w
h w
NO SCALE STgTfROTf t� SITE
NAY
:K%v
Isurt�iium �m�ei�n.ros•o
DIST COUNTY RTE I P.M.
12 1 ORA I 1 1 19.7
Exhibit "A"
V I I I STATE RETAINS ACCESS RIGHTS
STATE OF CALIFORNIA -- DEPARTMENT OF TRANSPORTATION -- DISTRICT 12
PLAT ACCOMPANYING
SCA1,Es N.T.S.
DIRECTOR'S DEED DD 040766 -01 -01 DRWNsSEE CHKD :GBG
REF, MAP: E120010 -15 SHEET 4 OF 5 DATE: 11/18/84
- Ot.dgn
AM
Exhibit "A"
Subject to special assessments if any, restrictions, reservations, and easements of record.
This conveyance is executed pursuant to the authority vested in the Director of Transportation by law and, in
particular, by the Streets and Highways Code.
WITNESS my hand and the seal of the Department of Transportation of the State of California, this
day of 2p
APPROVED AS TO FORM AND PROCEDURE
ATTORNEY
DEPARTMENT OF TRANSPORTATION
STATE OF CALIFORNIA
SS
County of Sacramento
On this the_ day of
personalty appeared
D personally known to me
D proved to me on the basis of satisfactory evidence
20 _ , before me,
STATE OF CALIFORNIA
DEPARTMENT OF TRANSPORTATION
Director of Transportation
By
Attorney in Fact
PERSONAL ACKNOWLEDGMENT
Name, Title of Officer -E.G., "Jane Doe, Notary Public"
Name of Signer
to be the person whose name is subscribed to the within instrument and acknowledged to me that _ he/she executed the same in _
his/her executed the capacity, and that by his/her signature on the Instrument the person, or the entity upon behalf of which the person
acted, exewted the InsWment.
WITNESS my hand and official seal.
(Notary Public's signature in and for said County and State)
Page 5 of 5
(This space reserved for CTC CertiflcaUon)
lv
City of Newport Beach NO. BA- 07BA -012
BUDGET AMENDMENT
2006 -07 AMOUNT: $2,000,000.00
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates Increase in Budgetary Fund Balance
X Increase Expenditure Appropriations AND X Decrease in Budgetary Fund Balance
Transfer Budget Appropriations No effect on Budgetary Fund Balance
SOURCE:
from existing budget appropriations
from additional estimated revenues
PX from unappropriated fund balance
EXPLANATION:
This budget amendment is requested to provide for the following:
To increase expenditure appropriations from General Fund unappropriated fund balance and General Fund Park In Lieu
Reserves to purchase land from Caltrans for Sunset Ridge Park.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE Amount
Fund Account Description Debit Credit
010 3605 General Fund - Fund Balance $1,100,000.00 *
010 3750 General Fund - Park In Lieu Reserves $900,000.00
REVENUE ESTIMATES (3601)
Fund /Division Account Description
EXPENDITURE APPROPRIATIONS (3603)
Signed:
Fi an proval: Administrative Services Director D to
Signed: 771Z.�
Administrative Approval: City Manager Dat
Signed:
City Council Approval: City Clerk Date
Description
Division
Number
7015
General Fund - Parks
Account
Number
C5100515
Sunset Ridge Park $1,100,000.00
Division
Number
7021
General Fund - Park In Lieu Reserves
Account
Number
C5100515
Sunset Ridge Park $900,000.00
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
` Automatic System En".
Signed:
Fi an proval: Administrative Services Director D to
Signed: 771Z.�
Administrative Approval: City Manager Dat
Signed:
City Council Approval: City Clerk Date