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Agenda Item
ASR
Control 16-001534 |
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MEETING DATE: |
02/28/17 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
3 |
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SUBMITTING
Agency/Department: |
OC Community Resources (Approved) |
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Department contact
person(s): |
Scott Mayer (714) 834-3046 |
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Ron Inouye (949) 923-3753 |
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Subject: Concession Lease Assignment
for Canyon Recreational Vehicle Park
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ceo CONCUR |
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Clerk of the Board |
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Concur |
Approved Agreement to Form |
Consent Calendar |
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3 Votes Board Majority |
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Budgeted: N/A |
Current Year Cost:
N/A |
Annual Cost:
N/A |
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Staffing Impact: |
No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 6/15/1993
#31 |
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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 1 (Existing Facilities) pursuant to CEQA Guidelines, Section 15301. |
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2. |
Approve the Concession Lease Assignment, Assumption, and Consent Agreement of the Lease Agreement for Canyon Recreational Vehicle Park from Canyon Recreational Vehicle Park, a California general partnership, to Canyon RV Park, Inc., a California corporation. |
SUMMARY:
Approval of the assignment of Canyon Recreational Vehicle Park to Canyon RV Park, Inc. will support continuation of recreational vehicle services.
BACKGROUND INFORMATION:
Featherly Regional Park is a 795-acre largely riparian wilderness area located in east Anaheim along the Santa Ana River. The only developed portion of the park is Canyon Recreational Vehicle (RV) Park, a privately-operated 63-acre facility offering RV hook-up sites, small cabins and camping with various amenities and activity areas.
On June 15, 1993, the Board of Supervisors adopted a resolution approving items related to development and operations of Canyon RV Park: 1) an Option Phase I Operating Agreement, 2) an Option Phase II Lease and 3) a Phase IIB Lease Amendment between the County and Canyon Recreational Vehicle Park, a California general partnership that consisted of St. Clair Investments and Mobile Modular Development (Tenant). The Resolution further authorized the Clerk of the Board to execute the Operating Agreement and the Lease, and subsequently to execute the Phase IIB Lease Amendment, upon notification from the County that the Tenant had complied with the terms and conditions of the Option Agreement.
A letter dated June 15, 1998, from the County Public Facilities and Resources Department Director, the department then managing County Parks, was provided to the Tenant notifying the Tenant that the requirements of the Option Agreement were satisfied and the lease for Canyon Recreational Vehicle Park had been executed. A fully executed copy of the lease was provided with the letter; the 30-year term of the Lease Agreement commenced on July 1, 1998, and expires on June 30, 2028.
On June 29, 1998, Mobile Modular Development assigned its interest to the Vernon and Patricia Anne St. Clair Trust (St. Clair Trust), resulting in a partnership between St. Clair Investments with 50% interest in the leasehold and St. Clair Trust with the remaining 50% interest in the leasehold.
Prior to the passing of Vernon St. Clair on July 1, 2015, a judgment of legal separation was entered in Orange County Superior Court. The legal separation resulted in the full settlement of all issues through the mediation process, whereby the St. Clair Trust was dissolved by consent of the co-trustees, Dana Busch and Sharon McDaniel on October 28, 2016. On October 28, 2016, a special meeting of the Board of Directors was held for St. Clair Investments, Inc. who approved transfer of stock shares in St. Clair Investments to Dana Busch and Sharon McDaniel. Shortly thereafter, Dana Busch and Sharon McDaniel met with CEO Real Estate staff assigned to OC Parks to initiate the Lease Concession Assignment, Assumption and Consent to Assign the Lease Agreement for Canyon Recreational Vehicle Park (Lease) from Canyon Recreational Vehicle Park, a California general partnership, to Canyon RV Park, Inc., a California corporation.
Clause 29 of the Lease, titled “Assigning, Subletting, and Encumbering,” states the conditions for assignment of the interest. The County may withhold consent of assignment at its sole discretion if the Tenant is in default of any of the enumerated conditions in the Clause. The Tenant is not in default, nor has the Tenant ever been in default since the commencement of the Lease. Additionally, on December 20, 2016, the Tenant provided the processing fee of $2,500 to the County for costs associated with processing the consent to assign pursuant to Clause 29.
Dana Busch and Sharon McDaniel have been involved with the operations of Canyon RV Park since 1993. Both have been working in the management and operation of mobile home communities and RV parks since 1985 and are licensed California real estate brokers. Sharon McDaniel holds a title of Accredited Residential Manager with the Institute of Real Estate Management and Dana Busch is a licensed water treatment operator through the State of California. Canyon RV Park has paid monthly rent both timely and accurately. CEO Real Estate and OC Parks staff have visited the facility recently and observed that it is kept in excellent condition with no deferred maintenance noted.
All financial statements, which include tax returns and assignment questionnaire with background information, have been reviewed by CEO Real Estate and the financial position of the assignees was found to be sufficient for operation and management of the RV Park. CEO Real Estate concurs with the assignment to a new corporation, Canyon RV Park, Inc., a privately held corporation by Sharon McDaniel, Dana Busch and St. Clair Investments, Inc.
The Articles of Incorporation of the new corporation, Canyon RV Park, Inc., have been processed and filed by the State of California. A certified copy of the Articles of Incorporation approved by the State was received by staff on January 19, 2017.
Other than the assignment from Canyon Recreational Vehicle Park to Canyon RV Park, Inc., there are no other changes to the Lease and its terms and conditions remain in full force and effect.
The Auditor-Controller Internal Audit Division conducted an audit on this lease from September 2015 through August 2016. A draft report is anticipated to be issued in the spring of this year, with the final report expected approximately two months after the issuance of the draft report.
Compliance with CEQA: The proposed project is Categorically Exempt (Class 1) from the provisions of CEQA pursuant to Section 15301 because it involves the continued operation and leasing of an existing recreational vehicle park.
FINANCIAL IMPACT:
N/A
STAFFING IMPACT:
N/A
ATTACHMENT(S):
Attachment A - Lease Summary
Attachment B - Plot Map
Attachment C - Concession Lease Assignment, Assumption, and Consent Agreement
Attachment D - Redline for Canyon Recreational Vehicle Park Lease Agreement