MEETING DATE:
May 28, 2024
SUBJECT:
Title
RESOLUTION NO. 2024-9296 - AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY TO COMPLETE NEGOTIATIONS, FINALIZE, AND EXECUTE ALL DOCUMENTS NECESSARY FOR THE ACQUISITION OF REAL PROPERTY AND IMPROVEMENTS LOCATED WITHIN THE UNIVERSITY DISTRICT SPECIFIC PLAN AREA AT 318 E. BARHAM DRIVE, SAN MARCOS, CA (ASSESSOR’S PARCEL NUMBER 220-202-27-00, MORELAND PROPERTY) TO FACILITATE THE CONSTRUCTION AND INSTALLATION OF PUBLIC INFRASTRUCTURE IMPROVEMENTS
Body
Recommendation
Recommendation
ADOPT resolution authorizing the City Manager and City Attorney to complete negotiations, finalize, and execute all documents necessary for the acquisition of real property and improvements located within the University District Specific Plan Area, addressed as 318 E. Barham Drive, San Marcos, CA (Assessor’s Parcel Number 220-202-27-00) to facilitate the construction and installation of public infrastructure.
Body
Board or Commission Action
Not Applicable
Relevant Council Strategic Theme
Planning for the Future
Executive Summary
San Marcos adopted the University District Specific Plan (“UDSP”) in 2009 with the goal of creating a vibrant, university-based district with the City of San Marcos. As reflected in the approved UDSP and associated map approvals, acquisition of certain properties or portions thereof is necessary for the installation of required public infrastructure and associated improvements including, but not limited to, the widening of Barham Drive to accommodate multi-modal circulation demand through the widening of travel lanes, the installation of sidewalks for pedestrian circulation, the provision of bike lanes, and the installation of parkway landscaping. The real property and improvements proposed to be acquired are located within the UDSP at 318 E. Barham Drive, San Marcos, CA, and identified as Assessor’s Parcel Number 220-202-27 (“Property”).
Discussion
As reflected in the aerial view provided with this agenda packet, the Property is improved with a single-family residence currently being utilized as an office and an outbuilding formerly used as an industrial/commercial space. An aerial exhibit showing the location of the Property at the corner of Barham Drive and Industrial Street is included in the agenda packet. Acquisition is necessary to ensure the cohesiveness of development in conformance with the UDSP. The Property is proposed to be utilized to widen travel lanes on Barham Drive to accommodate vehicular circulation, to install sidewalks to facilitate pedestrian circulation, provide bike lanes, and to install parkway landscaping. The construction of the described public improvements is not only required pursuant to the UDSP, but also the conditions of approval placed on development entitlements issued to Urban Villages San Marcos, LLC (UVSM). If the Property could not be acquired through negotiation, the City would be in a position of considering the initiation of eminent domain proceedings.
As required by its entitlements, developer UVSM has negotiated with the owner of the Property, Bob Moreland ( “Seller”). Seller prefers to transfer the Property to the City. Staff recommends that the City accommodate Seller by acquiring the property directly. Seller has also indicated that he does not wish to have any remnant portions of Property remaining after installation of public improvements returned to him.
UVSM is responsible for the deposit and payment of the purchase price as well as any and all costs and expenses incurred by the City in this process. Any risk to the City associated with this transaction has been minimized by UVSM’s agreement to indemnify the City. In 2014 the City participated in the acquisition of 225 E. Carmel St. with a similar structure. In 2015 the City participated in the acquisition of 316 and 383 Discovery Street, and it participated in the acquisition of 199 Shubin Lane and 123 S. Twin Oaks Valley Road in 2016 and the acquisition of the Ameco property in 2019.
Previously, in similar circumstances with negotiated agreements, the City Council has approved both the acquisition of property needed for improvements, and transfer of the same to UVSM, in one action. However, since the date of the last acquisition and transfer to UVSM, the provisions of the Surplus Land Act (Act) and associated California Department of Housing and Community Development (HCD) Guidelines became applicable to proposed transfers of property. Even for transfer of properties determined to be exempt from the provisions of the Act, the Guidelines require that property be acquired by the local agency in fee before opining with finality as to whether a proposed transfer from the agency is exempt under applicable provisions.
Pursuant to direction received from HCD, a copy of which is included in this agenda packet, the City must own property in fee simple prior to declaring it surplus or exempt surplus. Said initial guidance states that “[w]e have completed our review of the draft resolution, pursuant to the [sic] Section 400(e)(2) of the Surplus Land Act (SLA) Guidelines, and have concluded that, if or when the City owns the property in fee simple, the property can comply with and qualify for Government Code Section 54221(f)(1)(B).” That Government Code section relates to a definition of exempt surplus land as consisting of less than ½ acre in area which is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes.
Accordingly, staff is requesting authorization to proceed with acquisition of the property. As Seller has indicated that it does not wish to have any remnant property remaining after improvements returned to him, when escrow has closed and the City owns the Property in fee, staff will return to the City Council with a proposed resolution finding that transfer of the Property in its entirety to UVSM would be exempt from the provisions of the SLA, which resolution would be submitted to HCD for its exemption finding. Such a submission would need to be made to HCD at least 30 days prior to the proposed disposition, pursuant to Section 400(e) of the SLA Guidelines.
Staff recommends that the City Council approve purchase of the Property for the ultimate purpose of construction of the above-described improvements as required by UVSM’s entitlements, which will further the City’s goals for the development of the University District Specific Plan Area, and that it authorize the City Manager and City Attorney to negotiate, finalize, and execute associated documents relating to such acquisition. A draft version of the proposed agreement with Seller is included with the agenda packet.
As a condition of the City’s participation in the described transaction, any and all City costs associated with the same, and each of them, will be borne by UVSM, with UVSM obligated to defend, hold harmless, and indemnify the City against any and all claims of whatever nature may arise from any and/or all of the transactions described herein, which obligation shall survive all potentially applicable limitations periods.
Environmental Review
The proposed action does not have the potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, that has not already been evaluated and addressed in the environmental review documents relating to the University District Specific Plan and applicable development entitlements, and it is consistent with said environmental review documents.
Fiscal Impact
There will be no net fiscal impact to the City for this transaction or future transactions, as the sales price has been deposited by UVSM, and as UVSM is responsible for any and all costs associated with the transaction, for the process by which the City will seek an HCD finding that transfer of any excess real property remaining is exempt from Surplus Land Act requirements, as well as for the subsequent transfer of land to the adjacent landowner in the event such exemption finding is issued by HCD.
Attachment(s)
Site Map/Overhead
HCD Guidance regarding Proposed Transaction
Proposed Resolution
Draft Purchase and Sale Agreement
Prepared by: Helen Holmes Peak, City Attorney
Reviewed by: Michelle Bender, City Manager