HomeMy WebLinkAboutDriftwood History of Land Uses and Ownership�p C
April 15, 1992
City Clerk Documents: Boxes 502-3
DRIFTWOOD HISTORY
OF
LAND USES AND OWNERSHIP
LAND ACQUISITION
1914 - 1944 The City acquired all Driftwood parcels from Mills,
Land & Water Company. See Deeds 15, 31, 51, 61, 63,
65, & 66 (Exhibits A.1...7]. According to Jim Way,
Beach Operations Supervisor, the area became known as
the City's "47 acres". Further, approximately 10 of
those acres located at the corner of Huntington and PCH
was used as a municipal dump area for beach debris.
WATER
October 13, 1950 A twenty foot wide easement for a drainage pipe line
granted to the Talbert Drainage District is recorded
(Exhibit A.8, p.3 - Policy of Title Insurance].
PETROLEUM HISTORY
Dec. 2, 1935 D.D. Dunlap Oil Company & City of Huntington Beach
lease on land which was cancelled by Quit Claim Deed on
March 19, 1936 (Exhibit A.1)
1925 - 1967 Seven oil wells are abandoned; one is on the
"commercial" portion. (Exhibit E - "PIC STUDY"] The
commercial portion lies between PCH and Walnut
extension to Beach Blvd. No wells existed at the Phase
I site; however, a ARCO gas station once occupied the
corner of PCH and Huntington St.
January 24, 1955 City Lease with Signal oil and Gas Company for oil
drilling, production, and removal of oil, gas,
asphaltum and other hydrocarbons. General terms:
percentage payment of proceeds of all oil, gas and
hydrocarbons produced. Lease is recorded in Book 2946
at Page 198, Offical Records of Orange County. (Exhibit
B.1]. Drilling area approximately 200,750 sq'.
May 31, 1955 Amendment of Oil and Gas Lease. Book 3136, Page 168 of
Official Records of Orange County which was later
terminated on September 1, 1959 (Exhibit A.8, p.4].
December 19, 1955 An easement from the City granted to Wilshire Oil
Company for pipe lines from the transportation of oil,
petroleum, gas, gasoline, water. The easement was
later amended to a ten foot wide strip of land.
(Exhibit A.8, p4).
April 3, 1956 Easement granted to Wilshire for pipelines, 20" crude
oil, 10" high pressure gasoline, and 4" water lines
"possibly" used in oil tanker loading off shore.
[Letter from Driftwood, Inc dated May 20, 1963, E.8].
August 7, 1961 Amendment of Oil and Gas Lease between the City of
Huntington Beach and Signal Oil and Gas Company changed
paragraph 24 redefining "drilling area". [Exhibit A.8,
p4 & Exhibit B.2] Effect: Delimited the drilling area
from approximately 2000,750 sq' to 30,000 sq'.
1965 According to Jim Way, the Beach Maintenance Facility
was built on Parcel #49, the site of two abandoned oil
wells. Other uses on the site were vehicle
maintenance. Presently there are three underground
tanks containing: diesal fuel, waste oil and gasoline.
January 5, 1970 Twenty year sublease agreement between California
Electric Construction, sublessor, and Atlantic
Richfield Co, sublessee. [Exhibit D]
April 21, 1970 Twenty year lease (subject to a prior lease between
California Electric and Atlantic Richfield) between the
City of Huntington Beach, Lessor, and Atlantic
Richfield Company, Lessee, for the oil and gasoline
service station. Later ARCO had a sublease on the
service station.
April 18, 1983 City enters into a "Pipeline Right of Way and
Litigation Settlement Agreement," "Franchise
Agreement," and "Lease and Easement Agreement" with
Gulf Oil Corporation, the successor in interest to the
Wilshire pipeline segment. The new agreement
stipulates that Gulf Oil will relocate the pipeline at
its cost provided that the city agrees to provide an
alternative route and not interrupt their operation and
assist Gulf in obtaining all governmental permits and
approvals [Exhibits I].
March 6, 1987 Report to RLM from Petroleum Industry Consultants
identifying seven oil wells on site that will need to
be reabandonded at a cost of $125,375. One well,
Mill's #4, may be a problem reabandonment costing as
much as an additional $46,000 [Exhibit C].
MOBILE HOME PARK & DRIFTWOOD INN
July 23, 1959 Thomason Appraisal report to Agency - market value of
41.44 acres was $455,840 as of May 20, 1959 (Exhibit
H.2)
March 28, 1960 Lease agreement between the City (Lessor) and Richard
Sinclair, H. Jack Hanna, and J.A. McNeil Co., Inc. for
the construction of motel rooms, trailer park and golf
course, etc. Huntington Beach Inn is constructed and
operated pursuant to an original 50 year land lease
(Impact of Conversion Report [ICR], 88; & Exhibit E.1)
January 3, 1962 City lease with Sinclair/Hanna/& McNeil is amended to
add property to Driftwood Inn site by freeway
relocation and extend starting date for construction to
December 27, 1961. The commencement of the fifty year
lease remains as December 27, 1960 [E.2]. On January
17, 1962, the interest in the Sinclair/Hanna/& McNeil
Company Lease with the City was assigned to Huntington
Driftwood, Inc., a corporation [E.2] The partners were
J.B. Shamel, President and Martin J. Snow,
Secretary/Treasurer.
February 1, 1963 Deed of Trust to secure indebtedness of $840,000 is
signed by Huntington Driftwood, Inc. & Sinclair &
Hanna. Deed of Trust for advance of $613,000 is also
signed by Driftwood, Inc. [E.3]
February 1, 1963 Lease between the City of Huntington Beach and Richard
Sinclair, H. Jack Hanna, and McNeil Company for the
improvement, development and maintenance of a 9 hole 3
par golf course. Term of the Huntington Driftwood 50
year lease is amended, extended the termination date
to February 1, 2013 [E.4>. First occupancies occured
in late 1963. Construction of the mobile home park
began in early 1963. By April 1964 approximately 14
spaces were occupied out of the 166 spaces constructed
[ICR, RLM 2-15-88).
March 11, 1964 Consolidation and Modification Agreement amending Deed
of Trust to secure notes in favor of Glendale Federal.
consent to modification recorded March 17, 1964.
February 7, 1967 Lease between Huntington Driftwood, Inc., and the City
of Huntington Beach added the Division of Highways
abandoned certain real property adjacent to Driftwood
to the leasehold [E.5).
October 7, 1968 Huntington Driftwood, Inc. assigns lease to California
Electric Construction Cc [E.6).
January 14, 1970 Amendment of lease between the City of Huntington Beach
and California Electric Company to amend the rental
payments, define gross sales and receipts. Letter in
file shows that California Electric Construction will
provide statements of gasoline deliveries which
Atlantic Richfield Co. is obligated to furnish [E.7].
July 16, 1970 California Electric construction Cc and parent
corporation Automation Industries, Inc, assigns lease
to Huntington, Ltd., a limited partnership (Morris,
Wickham, Griswold, and Cole) [E.9].
August 27, 1970 Deed of Trust for $680,048 by Huntington Ltd.
January 1978 RLM acquires the leasehold estate and all improvements
in 1978 and the City of Huntington Beach holds the fee
title (Impact of Conversion Report].
January 16, 1980 Mayer acquired the Glendale Deed of Trust (Huntington;
Bankruptcy Settlement Action).
November 29, 1983 Amended and Restated Lease Between the City of
Huntington Beach and RLM Properties, Ltd.; extended the
termination date until 2013 [Exhibit F].
June.29, 1984 Soils report by Irvine Soils engineering, Inc.,.
"... Geotechnical constraints are present which will add
to total development costs should the site be improved
with residential units and should be considered for
future design and construction. These are: 1)
Relatively low strength and high compressibility
characteristics of the subsurface soils; 2) Moderate
to high potential for liquefaction of the subsurface
soils; 3) Relatively shallow groundwater levels; and 4)
Relatively high corrosivity of site soils". (Exhibit H)
January 1985
All park tenants were offered leases with fixed terms
of one to five years from that date (.the legnth of
term at the option of the tenant), with the provision,
as clearly stated in the lease, that there was no
guarantee that the park would continue to operate as a
mobile home park, and that the landlord had the right
to convert .the park to other uses at any time. 232
tenants opted for a five year lease, which
unconditionally expired on April 30, 1990, with six
choosing to remain as month -to -month tenants. New
tenants after May 1, 1985 were required to sign new
leases. (Impact of Conversion Report, p.14)
Late 1986
Potential new tenants were given a notice advising them
that it was probable that the lease would not be
renewed past the expiration date of May 1, 1990.
May 15, 1987
Notice of Intent of Convert the Park given to tenants.
August 15, 1988
Second Amended and Restated Lease between RLM and
Agency; termination date 2013.
August 15, 1988 DDA is signed between Agency and RLM.
November 30, 1987 Laventhol & Horwath Appraisal report submitted to the
Agency from RLM; market value of the lease fee interest
as of October 1, 1987 is $4,200,000 (Exhibit HJ.
Sept. 19, 1988 Resolution 159 of the Agency and Resolution 5927 of the
City Council is approved, thus authorizing the City to
convey the property to Agency (Exhibit G).
Sept. 26, 1988 Driftwood Acquisition and Relocation Agreement is
signed.
May 1, 1990 All mobile homes are subject to a month -to -month
rental, no leases between RLM and tenants.
Feb - June 1989 Phase I relocation to OVE (28 tenants); 20 to OVE and 8
opt for Buyout, one of whom relocated within Driftwood
and rented from the Agency. Agency purchases Space
#33.
April 28, 1989 Third Amended And Restated Lease between RLM and the
Agency terminates January 31, 2013; this lease is the
same as the Second Amended and Restated Lease with the
Phase I site deleted from the legal description.
1989-90 Agency purchases Spaces 201 107, 401 & 440.
1991 Emergency Buyout Program. Agency purchases 34 more
mobile homes - $2.4 million appropriated, funds also
paid for acquisition of 20 and 401 done in the prior
year.