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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.