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RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE REAL PROPERTY PURCHASE AGREEMENT FOR THE PROPERTY LOCATED AT 89 FIRST AVENUE AND APPROPRIATING $490,000 TO THE WESTERN PARK ACQUISITION AND DEVELOPMENT FUND (4/5 VOTE REQUIRED)
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
The subject parcel is a 1.14 acre residential property located at 89 First Avenue and is currently identified as San Diego County Assessor's Parcel No. 566-131-16. It is situated on the northerly prolongation of First Avenue north of D Street. This property and the vacant properties north of it have been the source of many issues in recent years and have proven very hard to develop. In recognition of the development and nuisance issues that surround these parcels, staff has long considered purchasing these parcels so they can be maintained in their natural state and be incorporated into the future City Park to the north. The property is not currently on the market, but was offered for sale to the City during discussions of the issues detailed below.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed property acquisition for compliance with the California Environmental Quality Act (CEQA) and has determined that there is no possibility that the activity may have significant effect on the environment; therefore, pursuant to Section 15061(b)(3) (General Rule) of the state CEQA Guidelines the activity is not subject to CEQA. Although environmental review is not necessary at this time, additional environmental review will be required as applicable prior to the approval of any future project specific development entitlements.
BOARD/COMMISSION RECOMMENDATION
Not Applicable]
DISCUSSION
The subject parcel is a 1.14 acre residential property located at 89 First Avenue and currently identified as San Diego County Assessor's Parcel No. 566-131-16. As shown on Attachment 1 to this report, the subject parcel fronts onto a 40 foot wide strip of land owned in fee by the City that approximates the northerly prolongation of First Avenue north of D Street. The subject parcel is currently improved with a single family residence and one out building. To the north, are seven undeveloped parcels that also abut the City's parcel. Six are east of the City's parcel and one is to the west. Beyond these parcels is a City-owned 14.25 acre parcel designated as park land. The City also has a pending exchange for 5.75 acres that would bring the park site to 20 acres.
Over the years, various owners have tried to develop several of the adjacent vacant parcels but have ultimately backed away due to limited access, and lack of existing utilities and infrastructure. Additionally, this area has ongoing drainage issues and has served as a pathway to the City's park site immediately to the north for unintended activities such as homelessness, off road bicycles and motor vehicles, and others. The seasonal flooding, trespassing and dumping have been the source of numerous complaints to the City over the years. While the City has tried to keep the situation from getting worse by allowing the owners to gate the access and filling in eroded areas after rains, limited resources have hampered our efforts.
In recognition of the development and nuisance issues that surround these parcels, staff has long considered purchasing these parcels so they can be maintained in their natural state and eventually be incorporated into the future park. This would eliminate most of the complaints and issues as well augment the City's park acreage on the west side. To date, the problem with acquiring these parcels has been the fact that the two large anchor parcels (the northern and southern most parcels) have not been available. Without one or both of those parcels in hand, it would be hard to justify purchasing the smaller less significant ones.
In discussing the most recent issues with the owner of the subject parcel, she indicated that due to family health issues it was becoming more difficult to deal with the flooding, trespassing and other issues. She was aware that the City has had discussions with owners of several of the vacant parcels to the north regarding their possible purchase for park land. She stated that while she was not marketing her property she would be willing to sell it to the City. Her parcel is the southerly anchor property, the only one that is developed and it is the flattest and most desirable of the seven parcels. Staff consulted with several local real estate brokers and concluded that the market value of this property, as currently developed (single family residential) falls within a range of $400,000 to $425,000.
The owner initially wanted more than $500,000 for this site. After negotiations, she agreed to accept $480,000. With anticipated title and closing cost staff believes that the total cost of this acquisition will be approximately $490,000. While this price represents a premium for this parcel as developed, staff believes this is an opportunity purchase that presents significant current and future benefits. Because the future park will not be developed for some time, the remaining parcels can be purchased as they become available. This would allow the City to maintain the area in its undeveloped state and eventually incorporate it into the park. This would add an additional 4.5 acres of park land to the west side of the City.
Should the remaining parcels not become available or, if it is decided at a later date that the subject parcel is no longer needed it could be sold. In the interim, the site and buildings can be utilized for City purposes or can be rented out to generate revenue to support its maintenance and upkeep.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. This acquisition falls in line with the City's goal of providing a healthy community. By keeping this area in its natural state and converting it to future park use we are adding to the City's available open spaces, outdoor experiences and recreational opportunities.
CURRENT YEAR FISCAL IMPACT
Approval of this resolution will result in the appropriation of $490,000 to the Capital expense category of the Western Park Acquisition and Development Fund from the available fund balance of this fund. There is sufficient fund balance in the Western PAD for this expense.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact as a result of this expenditure at this time. Staff will be able to fund any maintenance issues that may arise out of the existing Public Works Department budget.
ATTACHMENTS
Attachment 1: Area Map
Attachment 2: Purchase Agreement
Staff Contact: Rick Ryals, Real Property Manager (619) 691-5118