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Home My WebLink AboutRes 2010-85 - TM 33837-1 - Purchase 2 Parcels Comprising Lot 14 CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT STAFF REPORT REQUEST: APPROVAL OF RESOLUTION NO. 2nlo-�5 AUTHORIZING THE ACQUISITION OF LOT 14 OF TRACT MAP 33837-1 (APNs 694-170-014 and 694-170-023) FOR FUTURE USE AS A SITE FOR DEVELOPMENT OF A CHILDCARE FACILITY SUBMITTED BY: Lauri Aylaian, Director of Community Development NEGOTIATING John Wohlmuth, City Manager PARTIES: Lauri Aylaian, Director of Community Development PROPERTY Neal Brandom, Emerald Brook LLC OWNER: DATE: December 9, 2010 CONTENTS: Resolution No. 2oio-s5 Recommendation By Minute motion, that the City Council waive further reading and adopt Resolution No.2oio-s5 authorizing the acquisition of a 1.37-acre parcel for the future development of a childcare facility. Funds for acquisition of APNs 694-170-014 and 694-170-023 are available in Account No. 228- 4800-454-4001. Executive Summary A dedication of land was made to the City of Palm Desert for the purposes of building a childcare facility adjacent to apartments originally entitled as part of the Spanish Walk project. Without the development of a childcare facility during the next year, the dedication will expire in May 2011. Staff has negotiated an agreement that would allow the City to purchase the 1.37-acre parcel outright for $100,000. Development of a childcare facility could be deferred until residential and commercial development in the surrounding areas resumes. Childcare Facility/ APNs 694-170-014 and 694-170-023 December 9, 2010 Page 2 of 3 Backqround In 2005, the City of Palm Desert adopted a Child Care Impact Mitigation Fee for new, non-residential development. New commercial, industrial, and office development creates more jobs in the city, and many of the workers who fill these jobs require childcare facilities for their children while they work. The fees assessed on new, non- residential construction are placed in a fund that is used to construct new childcare facilities in the city, or to expand or improve existing facilities. The current balance in the Child Care Facilities Impact Mitigation Fund is approximately $1.4 million. In addition to the balance in this fund, the City was also dedicated a 1.37-acre parcel (the "Gerald Ford parcel") for day care purposes by Taylor Woodrow, Inc., and Emerald Brook LLC during the entitlement process for Spanish Walk. (See map below.) The dedication was contingent upon the City developing a day care facility within five years. Without such development, the property reverts to the apartment site for development consistent with that zoning. ., �•, ,. .,, �. .., •.. ��. ��. •�. . �� •�.. �. . -�;y � ,� ��,. ` � ��. `� .,�, .� ��. ,�� . ��. � , -.. � , c�g� •� � �� <e., ; , �� f `� � ��'�'yF� �.` �.,`�,,,'Oq�,i,�� Subject Pres�s�rty :�,� �.,., � �;.,, j •;,, ., � r � ' e. . .,. � ,_........ j ` �"'�. `,,� ��, � �. •., �,: �: � z y. `.� ° ` � ? A ¢�� . �'� i� � ' ��'S� � � � � � ;_ � � �� • � � ,`r�� '•. �� j >t ' � '`�. �/ �" � , ' ;� `� '•. �L�O , ;� '� �i � �.,. '•� A ,:,� r9�s�,�usao.�� ,�� ..� � .q�� CSUSB/UCR �t � _ �1� �'� ' ,' ��.., '� � rt�- �� , ��_ � _�� ..�� . , , ��.. �a � , ��,,• , . Site �� ' ._ �� ,-�,`�,, � :— __. -y w�n-:o�:t�n��+az-� `� { `� , °�`T� . ± : . �� f � � �- K � � r t` { ; 7 ,r �` __.� � � � cAi!.��y��etA+�TE t� -�� ._.�. � , , '€ � �, � `�G j-�� i _� L_� � , , �C` E t 1r :I l ! �._ . . ..._. ____ _, _. - _ _snri�c�inwTrta nRiv� _.....� �... �.._._.m �_ �_.� FRANIS SINATf�A ARI,£ ____��_v�_..... . ' ��, -� ,�� ._. _.K _............ -'-"' �7R�3L"--R ....... .. .. .� ;, . r-�� ` E( � � �� ( � �:yr � '�I , ( (�� ( ' _,f ,w . � ��,, . , . `�� 1 , , , , . ,.. . `�:��i, . .7� , f 7 1 .. n � .. C:\Documents and Settings\tbecker\Desktop\Childcare Parcel Acquisition 12-9-10.dx Childcare Facility/ APNs 694-170-014 and 694-170-023 December 9, 2010 Page 3 of 3 The final map that dedicated the property was recorded on May 9, 2006. Therefore, the dedication of land will expire on May 9, 2011, and clear title will revert at that time, unless a childcare facility is developed there. Discussion � The need for childcare facilities in the area of Gerald Ford and Frank Sinatra Drives is expected to be very low in the immediate future due to the absence of residential development and of employment centers. The timing of resumption of development in the area is uncertain at best. Because of these uncertainties, staff negotiated an outright purchase of the property, rather than an extension of the dedication, for one hundred thousand dollars ($100,000). This sum equates to $72,990 per acre (or $1.68/SF), which values is less than comparably situated vacant properties listed for sale on the open market. Staff believes that it would be counter-productive to develop a facility on the subject parcel simply to prevent the loss of land that was dedicated for a specific period of time. To do so would result in a large investment in a facility that would be underutilized for several years, while denying the use of the same funding at other sites where there is an immediate need for more childcare spaces. Therefore, staff believes that the best way for the City to preserve the option of development at an uncertain date in the future is by purchasing the parcel. The $100,000 purchase price is easily affordable within the current $1.4 million balance of the impact mitigation fund. With approval from the City Council of the proposed resolution, staff will move forward with acquisition of the subject parcel for a future childcare facility. Fiscal Impact The requested purchase price for the parcels is $100,000. The funds are budgeted and available for this acquisition by using Child Care Impact Mitigation Fee funds from Account No. 228-4800-454-4001. Submitted by: Approval: �,- __----� ��_. � � �� '` � � Lauri Aylaian Paul Gibson Director of Community Development Director of Finance CtTY COUNCIL A�ION Approval: APPROVF,D � DF,NTF.'D ,. , �--� .-. RE EIVED OTHER '` ' � , / _ - ,�-- �� F.ETI G DATE ' ' l J h� M. Wohlmuth, AVF,s: �` � � i�y Manager NOEs: � ;/ AI3SENT: a%� �� AC3STAIN: C:\Documents and Settings\tbecker\Desktop\Childcare Parcel Acquisition 12-9-1�c�FR[F'[�i❑ BY Original on File with City lerk's Oflice RESOLUTION NO. 2010-85 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA AUTHORIZING THE CITY MANAGER TO EXECUTE PURCHASE AND SALE AGREEMENTS AND ALL NECESSARY DOCUMENTATION FOR THE PURCHASE OF TWO PARCELS COMPRISING LOT 14 OF TRACT MAP 33837-1. APN'S 694-170-014 AND 694-170-023. WHEREAS, there is a recorded shortage of day care facilities within Riverside County including the City of Palm Desert; and WHEREAS, there is critical need for affordable day care services to working families; and WHEREAS, the City of Palm Desert established a Day Care Facilities Impact Mitigation Fund to assist in the creation of additional day care facilities; and WHEREAS, Tract Map 33837-1 provided a dedication of Lot 14 to the City of Palm Desert for day care purposes; and WHEREAS, the dedication was for a period of five years, which dedication will expire on May 9, 2011; and WHEREAS, it is not possible to develop a new day care facility on subject parcel before the expiration date of said dedication. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows: 1. The City of Palm Desert desires to acquire in fee simple Lot 14 of Tract Map 33837-1, also known as APN's 694-170-014 and 694-170-023, for future development of a day care facility; and 2. The funding for acquisition of the subject parcels was budgeted through the City of Palm Desert Day Care Facilities Impact Mitigation Fund and is available in account number 228-4800-454-4001; and 2. The City Manager is hereby authorized to execute the Purchase and Sale Agreement and all necessary documents for the purchase of said parcels. RESOLUTION NO. 2010-85 PASSED, APPROVED AND ADOPTED this 9th day of December, 2010, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: CINDY FINERTY, MAYOR Al-f EST: RACHELLE D. KLASSEN, City Clerk CITY OF PALM DESERT, CALIFORNIA 2