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Home My WebLink AboutMINUTES - 07271999 - D2 TO, BOARD OF SUPERViSORS PLONK Dennis M. Barry, AlCP C;ommunity Development Director DATE: July 20, 1999 SUBJECT: Disposition of the former Oak Park Elementary School Property, Pleasant Hill SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION R E a)MM—E-N-Q A-M-NI-ai AUTHORIM the Chair to execute a letter to the Pleasant Hill Redevelopment Agency regarding the intent of the County to proceed with disposition of the former Oak Park Elementary School Property for residential development purposes; and DIRECT County staff as follows; The Pubiic Works Department to continue to work with the City of Pleasant H!I to develop a viable plan for flood control utilizing the Beatrice Road (Pleasant Hill) holdings to greater advantage; 2. The Genera'Services department to notice all tenants currently housed in the former Oak Park Elementary Site to vacate the premises effective no later than 12/31199. 3. The Community Deveiopment Department to work with Public Works-Real Property and county clounsel to proceed to offer for sale the County surplus Oak Park School site in Pleasant bill. FISCAL -MENCT The former Cak Park Eiementary School site is a general fund asset. Current appraised value of the property exceeds$6,000,000. Disposition of the sate will assist the County in fulfilling some of its general fund obiigatiols., most notably contributing capital improvement funds for the County Library system. BACKQiJ��/R�:AqO�NSF�RRIE_Q��D�ATI M "the County owns the property formafly known as the Oak Park Elementary Schoo'; Site in the City of Pleasant Hill (see attached map). This property is surplus to County needs and is a gen.-eral fund rea", estate asset. The County desires to sell the property for private developrnent purposes consistent with general plan and redevelopment plan for the City of Peasant Hill. Proceeds from the sale of the property wouid be devoted to the County's required capital investment in upgrading the County library system. County and City Staff have beer,working to develop a program of deveiopme.nt that would achieve County and Cfty goals. The City had expressed a desire to ut':lize the property tax increments generated by deveiopment of thissite to fulfill its pledge;its annual operating funds to retain the Centrai; Library in Pleasant Hill. CONTINUED ON ATTACHMENT: X YES SIGNATURE: RECOMMENDATION OF DIRECTOR RECOMMENFA IOF D58PARTMENT COMMITTEE APPROVE OTHER SIGNATURE(S), ell, ACTION OF BOARD ON..�`-r ..... AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS (ABSENT TRUE AND CORRECT COPY OF AN AYES: NOESz ACTION TAKEN AND ENTERED ON THE ABSENTa STAIN: MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact: Jim Kennedy 335-1255 ATTESTED ori : Cornmunrly Development CC,. County Administrator PHIL BATCHELOR, County Counsel CLERK OF THE BOARD Public Works-Flood Control OF SUPERVISORS AND COUNTY County Librarian Gene-a' Services-Lease Manager-nent ADMIN?TRATOR �- -2- I o 2_Io these ends the City's Redeveloprnent Agency retained the economic consultanting firm of Keyse Marston to assist°he County and the City in reviewing market conditions, assessing financ}al feasibility, and estimating property tax increment revenues for a range of residential development .scenarios. At the Pleasant Hill Redevelopment Agency`s Apeil 19, 1999 meeting the Keyser Marston Report was considered, Its fundamental conclusion was that the rnaxirnurn residual land value, maximum assets value and resulting property tax increment revenues seem to match the city's objective to provide for single family detached cert yard style homes on the Oak Park Site. The amity of pleasant l fill has also stated an interest in reopening the Oak Park Elernentary School site as a school site. 'while the Mt. Diablo Unified choo; District has officiaily determined that the site would not be necessary for their educational purposes, the City Council requested the County review the feasibility of a land swap between the County's interest in the former Oak Park Elementary School site and holdings of the County Flood Control District on Beatrice Lane (see attached map). County staff has undertaken this analysis and determined that such a swap is not feasible for the following reasons: 1) In order,for a swap to make sense the County General Fund asset value embodied in the Oak Park Site must be maintained or enhanced and be achievable in the near term, Based on a analysis of the developability of the Beatrice Road site, the County General Fund asset value would likely be louver. The Colty or its Redevelopment Agency does not appear to be in a position to provide any value enhancement to make the swap equivalent in value. 2) The County Flood Control interest must be maintained or enhanced. The viability of the former Oak Park Elementary School site as a Flood Control detention basin does not appear to be consistent with the desire of the City to retain the property as a school site, The City's interest in retaining the .site as a school would require the Flood Control District to obtain additional properly, most likely from the adjacent. Mt. Diablo Unified School District holdings (the former Pleasant Hill high School site); Deveopabilfty of the Beatrice holdings would have to be enlarged. The Beatrice Road holdings of the Flood Control District do not comprise the entire development site. Further land assembly activity would be needed. Costs of achieving this are estimated at lust $2,000,000. Since no revenue source is available for this purpose, staff has concluded that sale of surplus Beatrice Road holdings for development purposes would not net required revenues to the County in the near ter.In I It should be noted that Flood 'Control District staff neve been meeting with the City to discuss future options for creek enhancement within the Grayson geek Watershed, as well as planned drainage improvements to resolve the flooding that recurs gong Grayson Creek and Murderers geek. A detention basin is the central feature to resolving the flooding, and tide location of the basin has not been finalized. it is recommended that Public Works staff continue to work with the City on these flood protection issues. Based on the foregoing a letter has been drafted to respond to the request of the Pleasant Hfll Redevelopment Agency for a County position. JWkin D:\dattr1�76199Woakpark.bos a4Ji8J 08:02 FAX 5110 875 1125 CITY OF PLEASANT HILL act--Rrj" Soto!EC sXA1, z r . S c E MUM av 9 ' J t`-e�,.,�'� � � � i � `•a c 9.. 7 f t !•s' ?` 3 t� i�0 i fAWt�.tvu i I + i y • i + i • s o • �� ,�ej f ', SS " P•'`S k w"r Ik>iRD VYfFM.Tr R )! a , „ i+.{,`+��,atrl's d` �ap 0 7---•-2 y � � .� < a 7 �;; .y pp f# .•�:¢ S x by t i f ' � fK�@" �,....,.�.:...� 4Y Former Oak Park Elementary School property, owned by Contra CoM Count 44tL€3I 4 6r6 ;925 CZTt' 4 p;,EASANT HILL 08:04 FAX 594 6....� .na d tt d5� 4� G.2 � t 25 d 37 s sir "( t 'er ( H BOYD RD V. s of ° 09 HARDY CtRDUDLEY C? 6 g ` w � gq S p ; 'X.€ CS ULE AVE . Al ME got SAS a t E CT iix IWO Nwi p t t *m I I s-iAWT .� i DR ,�a � 6.50 Flood Contr Pr e� s . aC All Other Prertt'S9.58 acres Ph' r The. Board of SupervIsors Contra ler'A of!ho Board ana County Adminis',ration Building Costa County Adrnm!Straior 651 P�Me steet, ROOM 106 "925)335--'900 Martinez, na'fcr.nia 94563-"293 County Eadie U11kerna,2ndd District Donna Gerber,3rd District Mark Des nler,4th. Distr!ct joe canciamffla,W'. '"!s"'ict July 20, 1999 Terry Williamson, Chair Pleasant Hill Redevelopment Agency 100 Gregory Lane Pleasant M11% CA 944,23 Dear Chair Williamson: RE- Form er Oak Park Elementary School Property At your April 19, 1999 meeting of the Pleasant Hill Redevelopment Agency, Supervisor DeSauher indicated the willingness of the County to suspend, for a period of sixty days, its activities related to the disposition of"the former Oak Park Elementary site. This would allow the County and the City to more fully explore the developability of the Beatrice Road holding of the County's Flood Controi District, and the appropriateness of the County swapping its surplus Oak Park Elementary site for the County Flood Control's Beatrice Road site. After examining the concept more fully, the Count),has concluded that such a swap would not allow the County to achieve goals it must realize with respect to the two holdings. We wish to thank City staff for their input and perspective as the County assessed this complex issue. In arriving at its conclusion the County considered the fib.11owing principles: Principle Conclusion Principle #i: The County General Fund asset The former Oak Park Elementary School site value in the Oak Park Site must be maintained is a County General Fund asset, and is valued or enhanced, and must, be achievable in the at over $6 million (County appraisal; the City near term. Redevelopment Agency's residual land value analysis concur on this value). The County needs to be in a position to commit funds from the disposition of this property fffir library capital improvements by next year, The current real estate and economic climate support the appraised value. Any proposed change must come with a guarantee to maintain an equivalent investment return to the County. The City or its Redevelopment Agency does not appear to be in a position to offer such a guarantee. 2 The holdings of the County Flood Control, P:inciplie 92- The County Flood Control District in the Beatrice Lane area were interests must be maintained, or enhanced. acquired for Flood Control purposes. A straight swap of County holdings between the Oak Park site and the Flood Control District holdings at Beatrice would fW11y satisfy Flood Control needs if the entire Oak Park site were used solely as a flood control detention facility. Reserving a portion of the Oak Park site ior a future school could only be accomplished by locating a flood control detention basin partly on the Oak Park Site and partly on the adjacent Mt. Diablo Unified School District holdings (the former Pleasant Hill High School site), Therefore the City must be expected to affirmatively work with the Flood Control District to cause such an approach to be feasible. In the absence of a feasible solution within a reasonable and agreed upon time frame, the entire Oak Park site must be -considered to be the detention basin site. This does not seem to be consistent with the City's desire to retain the Oak Park site as a school. Principle 43: Developability of the Beatrice The Beatrice Lane area is not fully assembled, holdings rnust be enlarged to their rational and must be to undertake a logical boundaries(see Map). development. The City Redevelopment Agency will be needed to assure full assemblage. City staff has advised that acquisition of the remaining properties, and relocation ofhouseholds could cost at least $2 million, City staff has also indicated that the Agency does not have unencumbered funds of this magnitude to devote to this purpose, Even assembled the Beatrice holdings do not appear to be as valuable as the Oak Park site (see Principle 4 bellow). It should also be noted that the Flood Control District believes that development of a detention basin on the Beatrice holdings will require additional property acquisition to achieve an efficient design. 3 Principle :94: Development of the Beatrice The City must be fully supportive of the holdings most be predictable and achievable in development necessary to achieve the County the near term. objectives, The City may need to financially participate for achievement of these objectives because of 1) the assemblage requirements with related relocation; and 2) the site may need to incorporate some on-site drainage facility since the permanent flood control facility may be some years away. Design constraints includes the Creek, raising buildings above the floodplain, potential temporary basin, the outfall pipes traversing the property, and utilities in the old road. Given the development and financial complexities of the Beatrice holdings, no near term achievement of County goals seems likely. On behalf of the County, I want to thank the City and its staff for the opportunity to more fully examine possibilities for the former Oak Pailk Elementary School site, Given the needs for funds to invest in library system capital improvements, it is absolutely necessary that we proceed to offer the Oak Park site for development purposes at this time. Or,behalf of the County, we request your partnership in helping us realize our mutual goals of reinvestment in the County Library System and in area wide flood protection. e-e I Y,ly, td �eip c.,a m i�11 air r 'Boa,?'d of Supervisors : Board of Supervisors County Administrator County Counsel County Librarian Public Works -Flood Control Community Development General Services- ,ease:Management D:\datz\wp6\9906\twMiam.I*x