Agenda Item AGENDA STAFF REPORT ASR Control 26-000078
MEETING DATE:	03/24/26
legal entity taking action:	Orange County Flood Control District
board of supervisors district(s):	2
SUBMITTING Agency/Department:	County Executive Office (Approved)
Department contact person(s):	Thomas A. Miller (714) 834-6019
	Justin Golliher (714) 667-1675

Subject: Approve Lease with the City of Orange for Santa Ana River Flood Channel Parcels

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Consent Calendar

3 Votes Board Majority

Budgeted: N/A

Current Year Cost: N/A

Annual Cost: N/A

Staffing Impact:

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: Flood 400: 100%	County Audit in last 3 years: No
Levine Act Review Completed: N/A

Prior Board Action: 8/27/2024 #11

RECOMMENDED ACTION(S):

Find that the proposed 30-year Ground Lease of 0.9 acres of Orange County Flood Control District property, along the Santa Ana River Flood Channel, to the City of Orange for park purposes will not interfere with the Orange Control Flood District’s use and purposes of the land.

Approve and authorize the Chief Real Estate Officer, or designee, to execute the Lease Agreement between the Orange County Flood Control District and City of Orange, in substantially the form attached, for the City’s development and operation of a public park on approximately 0.9 acres (portions of parcel numbers 232-062-06 and 232-062-04) along the Santa Ana River Flood Channel, for thirty years, on a rent-free basis, with the requirement that the City maintain the public park continuously to a standard that complies with the Flood Control Act, at no charge to the Orange County Flood Control District and without imposing any fee for public use.

Authorize the Chief Real Estate officer or designee to sign any and all necessary documents related to the process of developing the property underlying the proposed public park on portions of parcel numbers 232-062-06 and 232-062-04, including minor modifications and amendments to the Lease Agreement that make non-monetary and/or monetary changes which do not increase County costs by more than $75,000 per year, with approval of County Counsel, and perform all activities under the terms of that agreement.

SUMMARY:

Approval of the Lease Agreement between the Orange County Flood Control District and the City of Orange for use of approximately 0.9 acres, portions of parcel numbers 232-062-06 and 232-062-04 along the Santa Ana River Flood Channel, will allow the City to develop a public park for the benefit of all County residents while reducing maintenance costs for the Orange County Flood Control District.

BACKGROUND INFORMATION:

The Orange County Flood Control District (District) owns property comprising of the Santa Ana River Flood Channel (Flood Channel), which stretches from the Pacific Ocean to the Prado Dam near the City of Corona. The Flood Channel is part of the Santa Ana River Mainstem Project, which is designed to provide flood protection to the growing urban communities in Orange, Riverside, and San Bernardino Counties. The District owns certain property along the Flood Channel that may be necessary in the long-term for future expansion of the channel and for protection from flooding but is currently available for alternate uses consistent with the flood purposes of the property. The County Executive Office Real Estate (CEO-RE) has worked with District staff to identify those properties available for interim use.

On August 27, 2024, the Board of Supervisors (Board), acting as the governing body of the District, approved and authorized the release of a Request for Proposals (RFP) to lease up to two segments of District-owned property along the Flood Channel in the City of Orange (City). The first segment, approximately 0.9 acres on portions of parcel numbers 232-062-06 and 232-062-04 (Segment One), is located along Rampart Street, south of Orangewood Avenue, north of Chapman Avenue. The second segment is approximately 7.3 acres covering portions of parcel numbers 375-301-01, 375-311-13, 375-311-14, and 375-311-17 (Segment Two), and is located north of Katella Avenue, south of the BNSF Railway. Concurrently, the Board approved a Resolution declaring that the property 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 and making findings pursuant to the Orange County Flood Control Act that the leasing of the property is not in conflict with the flood purposes of the property.

On October 3, 2024, CEO-RE released the RFP on behalf of the District, which was intended to generate revenue from commercial or industrial uses or activities, under an option and long-term ground lease of one or both segments, to support District operations.

CEO-RE received one response to the RFP from the City, proposing a thirty (30) year rent-free lease (Lease) for the development of a small “pocket” park on Segment One. The City has also proposed park use on Segment Two, which will require further assessment and negotiation. Once completed, this will be presented to the Board at a future date for consideration. The City has requested to move forward with the Lease for Segment One in advance of Segment Two. While the park use will not generate revenue, it will expand passive park space in North Orange County, providing green space and public benefit, which is consistent with the Orange County Flood Control Act. The City will maintain the parcels at no cost to the District and ensure the use aligns with the District’s flood control objectives, which will reduce the District’s maintenance and operational costs. The District will retain access rights for flood control operations, and any development will not interfere with the District’s ongoing operations. The District's rights under the Lease Agreement remain superior, and if the property is needed for flood control purposes, the City may be required to modify or relocate improvements. While the property is not currently required for flood control purposes, its retention is essential for future flood control purposes. Therefore, the proposed Lease agreement will not conflict with the flood control purposes of the property. Based on this, CEO-RE and the District recommend approval of the Lease with the City.

Compliance with CEQA: The proposed project was previously determined to be categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Class 1) of the CEQA Guidelines, on August 27, 2024, when it was originally approved because it provides for the leasing of public facilities involving negligible or no expansion of use. The proposed project is still consistent with this determination.

FINANCIAL IMPACT:

Approval of the Lease Agreement with the City is expected to facilitate future property management efficiencies and reduce maintenance costs, as the City will be responsible for all park maintenance.

STAFFING IMPACT:

N/A

REVIEWING AGENCIES:

Orange County Public Works

ATTACHMENT(S):

Attachment A - Project Location Map
Attachment B - Ground Lease