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Agenda Item
ASR
Control 24-000031 |
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MEETING
DATE: |
02/06/24 |
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legal entity taking action: |
Orange
County Flood Control District |
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board of supervisors district(s): |
2 |
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SUBMITTING Agency/Department: |
County
Executive Office (Approved) |
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Department contact person(s): |
Thomas
Miller (714) 834-6019 |
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James
Treadaway (714) 667-9700 |
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Subject: Orange County Flood Control
District Property Exchange, Quitclaim and Agreement
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ceo CONCUR |
County Counsel Review |
Clerk of the Board |
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Concur |
Approved
Agreement(s) and Resolution(s) |
Discussion |
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3
Votes Board Majority |
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Budgeted: Yes |
Current Year
Cost: $372,500 |
Annual Cost: N/A |
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Staffing Impact: |
No |
# of Positions: |
Sole Source: N/A |
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Current Fiscal Year Revenue: $372,500
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Prior Board Action: 12/4/2018 #S38B |
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RECOMMENDED
ACTION(S):
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1. |
Find that the project is categorically
exempt from the California Environmental Quality Act (CEQA), Class 5 (Minor
Alteration to Land Use Limitations) pursuant to CEQA Guidelines, Section
15305. |
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2. |
Find that the property rights that are
to be quitclaimed or conveyed by the Orange County Flood Control District, as
set forth in the attached Agreement, are not required for flood control
purposes. |
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3. |
Find that the conveyances by the Orange
County Flood Control District, as set forth in the attached Agreement,
including (a) quitclaim of the exchange parcel, (b) a permanent storm drain
easement, (c) quitclaim of the remnants of a former flood control easement,
and (d) a twenty-year License are compatible with the Orange County Flood
Control District use and purposes for the property. |
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4. |
Adopt Resolution, attached hereto as
Attachment I, declaring that the Orange County Flood Control District
property being conveyed to FCD, LLC, is exempt surplus land pursuant to the
Surplus Land Act and the state of California’s Department of Housing and
Community Development Guidelines regarding the Surplus Land Act. |
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5. |
Approve and execute the Agreement
between the Orange County Flood Control District and FCD, LLC, attached
hereto as Attachment B. |
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6. |
Approve and execute the conveyance deeds
pursuant to the Agreement in substantially the form attached hereto as
Attachments C, E, F, and G. |
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7. |
Approve and execute the acceptance of
the quitclaim deed from FCD, LLC, in substantially the form attached hereto
as Attachment D, conveying fee interest in real property to the Orange County
Flood Control District, pursuant to the Agreement. |
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8. |
Approve and execute the License
Agreement in substantially the form attached hereto as Attachment H between
Orange County Flood Control District and FCD, LLC, to allow OC Vibe to
utilize a 2-acre Orange County Flood Control District-owned parcel for
commercial parking purposes for a period of up to 20 years. The License
Agreement will also allow for temporary construction purposes during the
construction of River Road and a storm drain which shall commence upon the
recordation of the deeds. |
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9. |
Authorize the Chief Real Estate Officer
or designee to approve and execute any other documents necessary to complete
the contemplated transaction, to make any non-substantive changes to the
agreements and deeds as described herein and to perform all activities
necessary to complete the project. |
SUMMARY:
Approval of the Agreement and deeds
will result in a property exchange between the Orange County Flood Control
District (“District”) and FCD, LLC, necessary for the construction of a new
public roadway; creation of a public storm drain easement; and removal of an
unused former flood control easement from title. Approval of the License
Agreement will allow for OC Vibe’s continued use of the District owned parcel
for up to 20 years primarily for parking purposes but will also allow for
temporary construction activities and create annual revenue for the
District.
BACKGROUND
INFORMATION:
OC Vibe is a master planned mixed use
project to be developed on 95 acres surrounding the Honda Center. Henry and
Susan Samueli and their affiliated companies, including H&S Ventures LLC,
Anaheim Real Estate Partners LLC, FCD, LLC, and TS Anaheim LLC, are the
developer and/or underlying fee landowners of the OC Vibe Project
(“Developer”). The Developer requested an exchange of equal portions (.296
acres) of District owned property for OC Vibe owned property to reconfigure
both parcels in such a way that will accommodate the design and development of
River Road, a new public right of way that will serve the residents and
visitors of Orange County. River Road will eventually be dedicated to the City
of Anaheim and will be developed as shown in the Location Map attached hereto
as Attachment A.
The District and Developer have prepared
an Agreement, attached hereto as Attachment B, to document the terms and
conditions of the exchange and other components of this transaction. The
locations of the parcels to be exchanged are described and depicted in the
Quitclaim deeds attached as Attachment C and D hereto.
As necessary components of its project,
the Developer requested that the District convey a permanent Storm Drain
Easement across District property as shown in the Easement Deed attached hereto
as Attachment E. The Storm Drain itself will be dedicated to the City of
Anaheim.
There are two parts of a long linear
former flood control easement on a portion of the Honda Center parking lot
owned by TS Anaheim LLC and a small portion of the easement is also on the
Honda Center property which is owned by the City of Anaheim. The center portion
of the former easement was quitclaimed to FCD, LLC, on March 29, 2019, when it
acquired fee ownership of this area. The Developer has requested that the
District quitclaim its interest in these easement remnants to the underlying
fee owners. The easement is not useful
or necessary for flood control operations and the District requests to quitclaim
its interest to each underlying fee owner as shown in the Quitclaim Deeds
attached as Attachment F and G.
In 2018, the District and FCD, LLC,
entered into a short-term Parking License Agreement to allow FCD, LLC, to
operate Honda Center parking over a 2-acre parcel of District land. The parties
now desire to replace the Parking License with a new License Agreement which
increases the term to 20 years and authorizes the Developer’s utilization of
the newly reconfigured District Property for parking. The License Agreement
also permits temporary construction activities to occur within the License Area
during construction of River Road and the storm drain. The new License will
become effective upon the completion of the property exchange and recordation
of the Quitclaim Deeds and is attached hereto as Attachment I.
A valuation analysis for this transaction
was completed by the County Appraiser. The valuation for the two equal
.296-acre parcels being exchanged was determined to be $0 as it is an
equivalent exchange. The value of the storm drain easement is $25,000 and the
value of the remnant portions of the former District easement to be quitclaimed
is $327,500. The net purchase price to the District is $352,500. FCD, LLC, will
also pay the District an Administrative Transaction Fee of $20,000. Additionally,
the License Agreement will generate $116,000 per year along with annual 3%
increases, in revenue to the District.
Compliance
with CEQA:
The proposed project is Categorically Exempt (Class 5) from the provisions of
CEQA pursuant to Section 15305, because the exemption provides for minor
alterations in land use limitations and minor lot line adjustments.
General
Plan Conformity: This
project is in conformance with the City of Anaheim General Plan.
FINANCIAL
IMPACT:
OC
Vibe will pay the District a total of $372,500 into Fund 400. Revenue related
to this agreement are included in Fund 400 FY 2023-24 Budget and will be
included in the budgeting process for future years.
STAFFING
IMPACT:
N/A
REVIEWING
AGENCIES:
Orange
County Flood Control District
ATTACHMENT(S):
Attachment
A: Location Map
Attachment B: Agreement
Attachment C: Quitclaim Deed – .296-acre District Property to FCD, LLC
Attachment D: Quitclaim Deed – .296-acre FCD, LLC to District
Attachment E: Storm Drain Easement
Attachment F: Quitclaim Deed District to TS Anaheim
Attachment G: Quitclaim Deed District to City of Anaheim
Attachment H: License Agreement
Attachment I: Surplus Land Act Resolution
Attachment J: Real Estate Questionnaires
Attachment K: Government Code Section CA Water Code Appendix section 36-2