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HomeMy WebLinkAboutC-3829 - Property Disposition; Transfer of Excess Property at Mesa Drive & Birch Street for a passive park in Santa Ana HeightsCITY OF NEWPORT REACH CITY COUNCIL STAFF REPORT Agenda Item No. 6 February 14, 2006 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Dave Kiff, Assistant City Manager 949/644 -3002 or dkiff @city.newport- beach.ca.us SUBJECT: Terms and Conditions to Accept Title to Park Parcels in Santa Ana Heights ISSUE: Should the City Council support in concept a "draft outline of terms and conditions" to take title to the proposed passive park parcels at Mesa and Birch in Santa Ana Heights? RECOMMENDATION: Authorize City staff to prepare, and the Mayor to execute, a Property Disposition or similar Agreement between the City of Newport Beach and the Orange County Development Agency (OCDA) for specific parcels in Santa Ana Heights that would become the passive park at Mesa Drive and Birch Street. DISCUSSION: Background: The Santa Ana Heights region is within a redevelopment area, which means that property taxes generated above a certain "base year" are allocated according to a "redevelopment plan" to both remove blight within the Santa Ana Heights neighborhood and to provide low- and moderate - income housing in the region. The County of Orange administers the redevelopment area via its OCDA. Like any redevelopment area, Santa Ana Heights has a Specific Plan (which shows zoning and land uses) and a Redevelopment Plan (which shows, among other things, specific improvements that will eliminate blight in a "project area "). The City adopted the Santa Ana Heights Specific Plan when the City annexed the eastern Santa Ana Heights area effective July 1, 2003. The Redevelopment Plan yields to the General Plan of the County and of the City where noted in the Redevelopment Plan. Terms and Conditions to lase the Mesa -Birch Park Parcels February 14, 2006 Page 2 Santa Ana Heights has limited park space, excepting the large expanse of the Upper Newport Bay Nature Preserve and the roughly 2 -acre "Bayview Park" at the easternmost end of Mesa Drive. Almost all of the Birch Street and Acacia Street area of SAH is zoned 'Business Park" in the Specific Plan. In recent years, many of the non- conforming uses (single- and multi- family residences) along Birch Street and Acacia Street have been replaced by modem office structures. The Business Park designation was part of an effort to reduce residential uses that are subjected to significant noise from John Wayne Airport. The southeast corner of Mesa Drive and Birch Street is also zoned "BP" and is also slated for development. Two parcels at the corner (APNs 439- 381 -02 and 439- 381 -01 or 2081 Mesa Drive) and a portion of another parcel are today owned by the OCDA. These parcels are highlighted below: Mesa -Birch Parcels In 1994, the Santa Ana Heights Project Advisory Committee (PAC) corresponded both with the County and the City to ask that the parcel NOT be used for parking associated with the Business Park development. Instead, the PAC asked that the parcels be used ® Tens and Conditions to PAse the Mesa -Birch Park Parcels February 14, 2006 Page 3 for a "passive park." On July 13, 2004, the City Council agreed with PAC, a short time later, the County concurred. The City then embarked upon a planning process for the proposed park. We hired Dave Pederson of David A. Pederson, Inc. to develop the following design — the PAC, the Parks, Beaches, and Recreation (PB &R) Commission, and the City Council each saw the design and approved it in concept. $250,000 in redevelopment funds are set aside for the design and construction of the park. Mr. Pederson is now in final design stages. In order to construct the park, the City must own the parcel. City and County staff have therefore developed the attached outline of Terms and Conditions for Council's consideration. The terms and conditions (Attachment A) provide for: • A deed restriction requiring the parcels to be used as parkland • The City to develop the park within two years. • The City must maintain the monument sign at the corner of Mesa and Birch • The City must protect existing utility easements • The City must vacate the former Birch Street alignment • The City must make findings associated with the use of RDA funds for this Project (see Attachment B — CA Health and Safety Code Section 33445) Terms and Conditions to lease the Mesa -Birch Park Parcels February 14, 2006 Page 4 • Manage and maintain the park in perpetuity.. • The property will be transferred in "as is" condition • The City will work with SAH PAC and to "be sensitive" to the needs of area residents during the construction of the park. This agenda item asks that the City Council approve in concept these terms and conditions and authorize the Mayor to execute any Purchase and Sale Agreement or similar document accomplishing the transfer of the parcels from OCDA to the City. Committee Action: The Santa Ana Heights Project Advisory Committee (PAC) supports the same position recommended by this staff report. Environmental Review: The City Council's approval of this Agenda Item does not require environmental review. Public Notice: This agenda item may be noticed according to the Ralph M. Brown Act (72 hours in advance of the public meeting at which the City Council considers the item). Funding Availability /Potential Future General Fund Impact As noted, funding for capital projects like park development in Santa Ana Heights is available within the OCDA's annual allocations of tax increment. Should OCDA honor the City's request to hold the site for the future development of a passive park, and if a park was developed on the lots, the City would be responsible for funding the park maintenance and enforcement costs. Redevelopment funds are not allowed to be used for these purposes. General Services today estimates this amount to be roughly $10,000 per year. Submitted by: D iff Assistant City Manager Attachments: A — Draft Terms and Conditions B — Section 33445 of the Health and Safety Code ® Tennis and Conditions to P*se the Mesa -Birch Park Parcels February 14, 2006 Page 5 Attachment A — Draft Terms and Conditions for the Property Transfer ORANGE COUNTY DEVELOPMENT AGENCY ( "OCDA ")' DRAFT OUTLINE OF TERMS AND CONDITIONS RELATED TO TRANSFER OF EXCESS PROPERTY AT MESA & BIRCH TO THE CITY OF NEWPORT BEACH PROPERTY DISPOSITION AGREEMENT 1. Agreement to be executed between the OGDA. and the City of Newyorl Beach for the tmnsrer of property to be used for a future passive park. Z. OCDA to pray de: a. An ail- inclusive Funding and Transfer agreement to he prepared by Agency legal counsel (Lee Rosenthal, Goldfarb. & Lipman); which will be deed restricted. b. A Deed Restriction, which will include the following temis, 1. The property is to be used sdtely as a passive park in perpetuity. 3. If the City of Newport Beach does not develop the passive park within tvv (21 years from final execution of the transfer of fhe property; said property will revert back to the OCDA. 3. The City of Newport Beach must maintain the monument sign at Birch within the passive part. c. Sufficient redevelopment tax increment funding for the construction of the park site. 3. Newport Beach to: a. Approve vacation of the street from the centerline of the former alignment of Birch Street, which will be quitclaimed to the adjacent property owners. b. Reserve back any and all existing easements to the respective entities. Current known utility easements exist for an underground ctomi drain and a Costa Mesa Sanitary District Sewer (includes the .8 inch sewer main and laterals). c. Make findinas pursuant to Section 33745 of the Health and Safety Code when it approves the agreement or prior to final execution of the transfer of the property. d. Finalize design of the future passive park and construct the park improve meriMac it dies. e.. Bear responsibility for equipping, managing and maintaining the passive park in perpetuity, per Deed Restrictions. I. Maintain the monument sign at Birch. q. Outline of Agreement specifics a. Property will be transferred in "as4s' condition, and title will be in "as is condition, without warranty. OCDA will not be responsible for making corrections or mitigation of any nature. b. City of Newport Beach will work in cooperation with the Santa Ana Heights Project Advisory Committee and be sensitive to the needs of area residentsbusinessesNisitors during the construction of the future passive park, ® Terms and Conditions to Oase the Mesa -Birch Park Parcels February 14, 2006. Page 6 Attachment B — Section 33445 of the CA Health and Safety Code 33445. (a) Notwithstanding Section 33440, an agency may, with the consent of the legislative body, pay all or a part of the value of the land for and the cost of the installation and construction of any building, facility, structure, or other improvement which is publicly owned either within or without the project area, if the legislative body determines all of the following: (1) That the buildings, facilities, structures, or other improvements are of benefit to the project area or the immediate neighborhood in which the project is located, regardless of whether the improvement is within another project area, or in the case of a project area in which substantially all of the land is publicly owned that the improvement is of benefit to an adjacent project area of the agency. (2) That no other reasonable means of financing the buildings, facilities, structures, or other improvements, are available to the community. (3) That the payment of funds for the acquisition of land or the cost of buildings, facilities, structures, or other improvements will assist in the elimination of one or more blighting conditions inside the project area or provide housing for low- or moderate- income persons, and is consistent with the implementation plan adopted pursuant to Section 33490. (b) The determinations by the agency and the local legislative body pursuant to subdivision (a) shall be final and conclusive. For redevelopment plans, and amendments to those plans which add territory to a project, adopted after October 1, 1976, acquisition of property and installation or construction of each facility shall be provided for in the redevelopment plan. A redevelopment agency shall not pay for the normal maintenance or operations of buildings, facilities, structures, or other improvements which are publicly owned. Normal maintenance or operations do not include the construction, expansion; addition to, or reconstruction of, buildings, facilities, structures, or other improvements which are publicly owned otherwise undertaken pursuant to this section. (c) When the value of the land or the cost of the installation and construction of the building, facility, structure, or other improvement, or both, has been, or will be, paid or provided for initially by the community or other public corporation, the agency may enter into a contract with the community or other public corporation under which it agrees to reimburse the community or other public corporation for all or part of the value of the land or all or part of the cost of the building, facility, structure, or other improvement, or both, by periodic payments over a period of years. (d) The obligation of the agency under the contract shall constitute an indebtedness of the agency for the purpose of carrying out the redevelopment project for the project area, which indebtedness may be made payable out of taxes levied in the project area and allocated to the agency under subdivision (b) of Section 33670, or out of any other available funds. (e) In a case where the land has been or will be acquired by, or the cost of the installation and construction of the building, facility, structure or other improvement has been paid by, a parking authority, joint powers entity, or other public corporation to provide a building, facility, structure, or other improvement which has been or will be leased to the community, the contract may be made with, and the reimbursement may be made payable to, the community. (f) With respect to the financing, acquisition, or construction of a transportation, collection, and distribution system and related peripheral parking facilities, in a county with a population of 4,000,000 persons or more, the agency shall, in order to exercise the powers granted by this section, enter into an agreement with the rapid transit district which includes the county, or a portion thereof, in which agreement the rapid transit district shall be given all of the following responsibilities: Terms and Conditions to Pose the Mesa -Birch Park Parcels February 14, 2006 Page 7 (1) To participate with the other parties to the agreement to design, determine the location and extent of the necessary rights -of -way for, and construct, the transportation, collection, and distribution systems and related peripheral parking structures and facilities. (2) To operate and maintain the transportation, collection, and distribution systems and related peripheral parking structures and facilities in accordance with the rapid transit district's outstanding agreements and the agreement required by this paragraph. (g) (1) Notwithstanding any other authority granted in this section, an agency shall not pay for, either directly or indirectly, with tax increment funds the construction or rehabilitation of a building that is, or that will be used as, a city hall or county administration building. (2) This subdivision shall not preclude an agency from making payments to construct, rehabilitate, or replace a city hall if an agency does any of the following: (A) Allocates tax increment funds for this purpose during the 1988 -89 fiscal year and each fiscal year thereafter in order to comply with federal and state seismic safety and accessibility standards. (B) Uses tax increment funds for the purpose of rehabilitating or replacing a city hall that was seriously damaged during an earthquake that was declared by the President of the United States to be a natural disaster. (C) Uses the proceeds of bonds, notes, certificates of participation, or other indebtedness that was issued prior to January 1, 1994, for the purpose of constructing or rehabilitating a city hall, as evidenced by documents approved at the time of the issuance of the indebtedness.