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CONSIDERATION OF AUTHORIZING THE CITY MANAGER TO NEGOTIATE THE ACQUISITION OF A 3.94-ACRE PARCEL OF PARKLAND PROPERTY
RESOLUTION NO. 2014-223 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY MANAGER TO NEGOTIATE WITH DAN FLOIT ON THE ACQUISITION OF A 3.94-ACRE PARKLAND PROPERTY LOCATED IN THE LOWER SWEETWATER VALLEY
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
The Floit Option Agreement and Joint Escrow Instructions (Option Agreement) was originally executed in 2011 with Mr. Dan Floit, Managing Member of Mid-City LLC, and is due to expire on December 6, 2014. Although the Option Agreement provides for up to two 1-year extensions, the City Manager has chosen not to extend the agreement. Mr. Floit may choose to exercise his option at any time prior to the December 6 expiration date, and the exchange of land will take place as planned. If he does not exercise his option, Council could direct the City Manager to negotiate to purchase Mr. Floit's 3.94-acre parkland property in the Lower Sweetwater Valley.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the proposed activity, consisting of direction from Council to acquire land, will not have a significant effect on the environment. Therefore, pursuant to Section 15061 (b)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is necessary. Should the property be acquired and a Community Park be developed on the site, a full Environmental Review will be conducted at that time.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
Background
Currently, Western Chula Vista has an imbalance of parkland, in relation to the number of residents living west of Interstate 805. The General Plan Update (2005) designated over 20 acres in the Lower Sweetwater Valley as future parkland, with the intention of later building a community park. In 2010, the City acquired 14.25 acres (Attachment 1) of parkland in that area and began acquiring other land adjacent to this site. In 2011, the City was presented with an opportunity to obtain additional parkland acreage from an adjacent land owner, Mid-City LLC. A deal was structured that granted the City fee title to 1.89 acres (Floit Parcel A - Attachment 2) and also provided an opportunity to later acquire another 3.94 acres (Floit Parcel B - Attachment 3), yielding a community park site of 20.08 acres.
Council executed the "Floit Option Agreement and Joint Escrow Instructions" on December 6, 2011 (Resolution 2011-243), entering into an option agreement with Mr. Dan Floit, Managing Member of Mid-City LLC, to exchange a city-owned 9.3-acre parcel located adjacent to SR-125 and Eastlake Drive (City Parcel) for the 3.94-acre Floit Parcel B in the Lower Sweetwater Valley.
The terms of the Option Agreement include the following:
· Mr. Floit was given an Option Period of three years (and two one-year options to extend) to pursue entitlements on the City-owned 9.3-acre remnant parcel located adjacent to SR-125 and Eastlake Drive (See Attachment 4).
· At any time during the Option Period, Mr. Floit had the right to exercise the option to acquire the City site by exchanging his 3.94-acre site located in the Lower Sweetwater Valley (See Attachment 3).
· The City retains all of its discretion and is under no obligation to approve any of the entitlements sought by Mr. Floit.
· Mr. Floit is responsible for all costs associated with pursuing his entitlements.
Although the size of the City Parcel is over twice the size of Floit Parcel B, the exchange is equitable. The site is constrained by the SR-125 to the east, a 300' SDGE easement to the west (approximately 3 acres), topographic/access issues, and a lack of utility connections. There is currently no water, sewer or electric service to the site. Floit Parcel B offers a unique opportunity for the City to add to its existing parkland in an area already designated by the General Plan for a community park. Parkland acreage in western Chula Vista is difficult to acquire, due to the cost and the limited availability of large tracts of land.
The Option Agreement gives the City the opportunity to exchange a remnant parcel of limited civic value for public parkland in Western Chula Vista. Provided the option is exercised by Mr. Floit, the City will have over twenty acres of land for future development of a planned Community Park.
Current Status and Proposed Action Options
After exploring development alternatives for the City Parcel, Mr. Floit submitted a pre-application package to the Development Services Department in early 2012. The proposal included plans for 156 multi-family apartment units and associated garage and surface parking on the site.
After meetings with staff and making revisions to the project, the developer met with the Eastlake I Community Association in March 2013, to present a proposed project of 132 units. Based on the feedback, the number of units was further reduced to 116 units.
A full project submittal was made in August 2013. In accordance with the City's Public Participation Policy (400-02), a community meeting was held in January 2014, at the Eastlake Pavilion.
During the community meeting, local residents voiced concerns about the project, including: traffic, parking, impact to schools, trash, graffiti, and use of their community facilities. The developer recognized that additional community meetings would be necessary to address these concerns and to incorporate changes to his proposal. Knowing that this could take some time and that the Option Agreement was due to expire in less than a year, an extension request was submitted, per the terms of the agreement.
Per the terms of the Option Agreement, an extension does not obligate the City in any way in terms of approving the project, yet it does allow the developer additional time to complete his due diligence and the entitlement process, and to determine whether he wishes to pursue his option to acquire the property.
Due to the passage of time and to community concern over the proposed project, the City Manager decided not to extend the Option Agreement.
Instead, a Council Resolution has been prepared directing staff to negotiate the acquisition of Floit Parcel B. The Resolution would authorize staff to move forward with the negotiation process, which would include a current appraisal, among other considerations.
Acquisition of the property would provide the City with additional parkland in an area that is currently park deficient.
DECISION-MAKER CONFLICT
No Property within 500 feet
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 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. The purchase of Floit Parcel B would result in additional parkland in an area already designated by the General Plan for Community Park purpose. Floit Parcel B is in an area that is currently park deficient, and expansion of parks supports the goal of a Healthy Community.
CURRENT YEAR FISCAL IMPACT
Should Council adopt the Resolution, a purchase price would be negotiated with the developer and brought back to Council for approval, and a Fiscal Impact Statement would be prepared at that time.
ONGOING FISCAL IMPACT
Should Council direct staff to negotiate the acquisition of Parcel B, and Council approves the acquisition, the ongoing fiscal impact would be prepared at that time.
ATTACHMENTS
Attachment 1: Map of Existing Parkland
Attachment 2: Map of Floit Parcel A
Attachment 3: Map of Floit Parcel B
Attachment 4: Map of City Parcel