Loading...
HomeMy WebLinkAboutAcquisition of Parcel For Inclusion in Huntington Central Pa I I (:!/D. REQULO"T FOR CITY COUNuL' ACTION Date April 4, 1994 The Honorable Mayor and City Council Submitted to: Michael Uberuaga, City Administrator Submitted by: x Prepared by: Ron Hagan, Director, Community Services � ci APPROVED BY(dur- - CIL Subject: HOLLY/SEACLIFF DEVELOPMENT AGRE MENT W . m W al y--F)� Consistent with Council Policy? [ ] Yes [ ] New..Policy or Except on ^LCITYCLERK Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachments: 02W STATEMENT OF ISSUE Staff has been analyzing for the past three years which two parcels of land the city should accept based on Section 2.2.1 (a) -7 of the Holly/Seacliff Development Agreement, and has prepared a recommendation for Council.approval. RECOMMENDATIONS 1. Direct staff to acquire the 4.5 acre Parcel 7b (AP110-151-15 and 16) located on the northeast corner of Ellis Street and Edwards Avenue; 2. Direct staff to prepare an amendment to the Holly/Seacliff Development Agreement #90-1 to provide that upon termination of the existing oil and gas op- eration on Parcel 7b, Seacliff Partners will abandon all wells on the property and remediate any on-site contaminated soil in accordance with city and state clean- up standards; and 3. Direct staff to prepare a grant deed for Parcel 7b for Council acceptance. ANALYSIS The 1990 Holly/Seacliff Development Agreement between the city and Seacliff Partners contains the following provision in Section 2.2.1 (a) -7: . . . city shall have the option for five (5) years from the Effective Date to accept dedication of either 2.7 acres (a portion of APN 110-015-60) or 4.5 acres (APN 110-151-15 & 16). This provision was initiated to give the city time to analyze the benefits of each parcel as they pertain to park land required for Huntington Central Park (HCP)�, REQUEST FOR COUNCIL ACTION April 4, 1994 Page two and the Bolsa Chica Linear Park (BCLP). At the time of the agreement, the city wanted to keep its options open as both parcels had significant park value and the city wanted to analyze the best benefit before making a decision; conse- quently, the provision in the agreement to allow up to five years for the city to decide. For the past three and a half years, city staff has been analyzing which option to choose. During this time, City Council has adopted the HCP Master Plan which includes Parcel 7b. Parcel 7a is not included in any master plan adopted by Council. Although this parcel would be a nice addition to BCLP, it is not required to provide access and continuation from HCP to BCLP. Staff is proceeding with the implementation of the HCP Master Plan which includes the acquisition of the remaining parcels within the adopted master plan. To this end, staff is proceed- ing with acquisition of the small lots and Parcel 7b within the boundaries of HCP. Parcel 7b has two producing oil wells, four idle or abandoned wells, and a holding tank on-site. The development agreement allows the Huntington Beach Com- pany (HBC) to continue to operate the producing wells for as long as oil is pro- duced in such quantities that the HBC shall elect to operate them. The HBC es- timates the wells will operate approximately five more years. This area of HCP has a land use designation of medium and a specific use rec- ommendation for a passive area with a vista point. The subject site is located on Edwards Hill and provides spectacular views of a 3600 nature. This parcel is es- sential to maintain these views and to connect the rest of HCP with the BCLP across Edwards Street. Seacliff Partners has agreed that at the termination of the existing oil and gas operations, it will abandon all wells and the holding tank on the property and remediate any contaminated soils in accordance with city and state clean-up standards. Since staff is preparing grant applications for the development of the trails system, vista points, and urban forests that will be developed in HCP in this area, it is important for the city to secure ownership of the site. As to the 2.7 acre Parcel 7a site, now that the city has selected its option, the County of Orange and Seacliff Partners have entered into negotiations for acqui- sition of that site into the linear park. While the city has no funds available for acquisition nor any ability to acquire the 2.7 acres by dedication, staff will REQUEST FOR COUNCIL ACTION April 4, 1994 Page three continue to help the county in negotiating with Seacliff Partners for this parcel to be included in the linear park. As was stated earlier, however, the 2.7 acre parcel would be a nice addition to the linear park but it is not required to complete the linear park or connect it to HCP. In summary, the 4.5 acre Parcel 7b site in HCP provides the most benefit to the City of Huntington Beach. The city needs to take ownership of the site in order to apply for trail and urban forest development grants. Seacliff Partners has agreed to clean up the site to city and state standards when oil operations cease. By exercising our option at this time, it will give the county time to negotiate with Seacliff Partners to see if an acquisition agreement can be reached to include Parcel 7a in the Bolsa Chica Linear Park Master Plan. FUNDING SOURCE Not applicable ALTERNATIVE ACTIONS 1. Exercise the city's option to acquire the 2.7 acre Parcel 7a adjacent to Bolsa Chica Linear Park. 2. Do not exercise either option at this time but wait until the option period expires in December, 1995. 3. Determine that the city does not want either parcel and relieve the devel- oper of its dedication requirements. Note: Seacliff Partners will receive a six acre park dedication credit with the city's selection of the 4.5 acre Parcel 7b. However, if neither parcel were chosen, the developer would still receive three acres of park dedication credit according to the terms of the Holly/Seacliff Development Agreement. ATTACHMENTS Map RH:cs - r ' Z a � PA RlK Z 7 W 3� `7 6 cc fC/il: DOLLY-SEACLIFF LINEAR PARK DEDICATION 11/5/90 3 1.' Seadiff Partner .a Ja:at venture of Pacific Coast Homcs and U.W.C.Development Corp. February 18, 1994 Mr. Jim Engle, Superintendent Park Development Community Services Department 2000 Main Street Huntington Beach, CA 92648 Subject: City Exercise of Option on Parcel 7a or 7b per Holly Seacliff Development Agreement No. 90-1 ' Dear Mr. Engle: You have asked for additional information regarding the existing oil and gas operations upon the property located at the northeast corner of Ellis Avenue and Edwards Street (Parcel 7b of dedications per Development Agreement No. 90-1). The oil and gas lease is known as the "Brooks" lease and is operated by the Huntington Beach Company. Current oil production averages twenty barrels per day from two producing wells. Four additional wells have been drilled on the property (3 idle, one abandoned) and there is a tank setting onsite. The right to drill new wells on the property expired in 1939, however, the lease allows that wells already drilled can remain in operation as long as oil is produced "in such quantities that Lessee shall elect to operate wells." Production is expected to continue for at least another five years. Should the City exercise its option to accept dedication of Parcel 7b per the Development Agreement, Seacliff Partners agrees that upon termination of the existing oil and gas operation, we will abandon all wells on the property to City of Huntington Beach and California Division of Oil and Gas standards, and will remediate any onsite contaminated soils in accordance with the City's adopted cleanup standards, as has been done on all other dedicated park parcels. I hope this adequately addresses your concerns, please call me if you have any other questions. Very truly yours, U � ( �9, wAa�^-- William D. Holman Project Manager cc: Robert Franklin Richard Grunbaum Tom Zanic O 520 Broadway, Suite 100, Santa Monica, CA 90401 (310) 394-3379 Fax (310) 394-6872 ,G �� Corporate Plaza, Suite 250, Newport Beach, CA 92660 (714) 721-9777 Fax (714) 729-1214 _ REQUEST FOR CITY COUNUL ACTION Date March 21, 1994 Submitted to: The Honorable Mayor and City Council Submitted by: Michael Uberuaga, City Administrator", V Prepared by: `� Ron Hagan, Director, Community Servic Subject: HOLLY/SEACLIFF DEVELOPMENT AGREEMENT SECTION 2.2.1(a)-7 Consistent with Council Policy? [ ] Yes [ ] New Policy or Exception Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions, Attachments: STATEMENT OF ISSUE ' There is a need to make a decision as to which of two parcels of land the city should accept based on Section 2.2.1(a)-7 of the Holly/SeacliffDevelopment Agreement. RECOMMENDATION Direct staff to exercise the city's option to acquire Parcel 7b (AP#110-151-15 and 16) located on the northeast corner of Edwards Street and Ellis Avenue per the terms of the Holly/Seacliff Development Agreement 90-1 for inclusion in Huntington Central Park; return at a future date with the grant deed for City Council authorization to execute. ANALYSIS Section 2.2.1(a)-7 of the Holly/SeacliffDevelopment Agreement states: city shall have the option for five (5) years from the Effective Date to accept dedication of either 2.7 acres (a portion of APN110-015-60) or 4.5 acres (APN110-151-15 & 16). The 2.7 acre parcel (Parcel 7a) is located at the southwest corner of Ellis Avenue and Edwards Street adjacent to the Bolsa Chica Regional Park. The 4.5 acre parcel (Parcel 7b) is located at the northeast corner of Ellis Avenue and Edwards Street within the master plan area of Huntington Central Park. City staff has reviewed the options and recommends accepting the 4.5 acres within Huntington Central Park. Although the 2.7 acre parcel would be a welcome addition to the Bolsa Chica Regional Park, it has not been part of the planning process nor within the park's approved boundaries. The 4.5 acres are located within the proposed boundary of Huntington Central Park. It is the gateway into the park from the corner of Ellis Avenue and Edwards Street. It is an essential piece of the park because it provides a linkage to the corner of Ellis Avenue and Edwards Street which is the connecting point to the residential horse trails south of Ellis Avenue and the Bolsa Chica Regional Park. The development agreement does indicate that, if the city accepts dedication of the 4.5 acre parcel, the existing oil production and related operations would be allowed to continue on the site per the existing lease, which is NO 5/85 1 l REQUEST FOR COUNCIL ACTION PAGE TWO operated by the Huntington Beach Company. Bill Holman, Project Manager, Seacliff Partners, indicates that the oil operations will probably continue at least another five years. The lease provides that oil production may continue as long as oil is produced "in such quantities that lessee shall elect to operate wells." It would then be the operator's responsibility, per the lease , to remove all equipment, abandon the oil wells and restore the land to its former condition, including remediation of any contaminated soils. Mr. Holman indicated in his February 18, 1994, letter to the city: Should the City exercise its option to accept dedication of Parcel 7b per the Development Agreement, Seacliff Partners agrees that upon termination of the existing oil and gas operation, we will abandon all wells on the property to City of Huntington Beach and California Division of Oil and Gas standards, and will remediate any onsite contaminated soils in accordance with the City's adopted cleanup standards, as has been done on all other dedicated park parcels. The developer currently will receive a credit of 35.6 acres of park land dedication for Bolsa Chica Regional Park. Section 2.2.1(g) states: In the event city exercises its option for dedication of the 2.7 acres under 2.2.1(a)7 above, Developer's credit shall be increased to 41.3 acres. In the event city exercises its option for dedication of the 4.5 acres in 2.2.1(a)7 above, the Developer's credit shall be increased to 43.1 acres. The credit is calculated to include full credit for dedication of six acres adjacent to Linear Park below the five foot contour; in the event the city does not exercise the option, the Developer receives only half credit for the six acres. This park land dedication can be applied toward any other residential development within the city. The value of including the 4.5 acres to provide a gateway into Huntington Central Park and the connection between Huntington Central Park, Bolsa Chica Regional Park, and the residential area south of Ellis Avenue is, in the estimation of staff, worth the increase to full credit for the six acres adjacent to the linear park below the five foot contour. It should be noted that if the city does not exercise this option, the Developer would still receive half credit for the six acres. FUNDING SOURCE Not Applicable ALTERNATIVE ACTION 1. Exercise city's option to acquire Parcel 7a, 2.7 acres adjacent to Bolsa Chica Regional Park. ATTACHMENTS 1. Location Map 2. Holman's February 18, 1994 letter {�UNTnIG ion( H W W 3 7 f -, 7a rx ir —1, �.':of - -.�•:n %t'` 1 :V N�,-. ' �4 i HOLLY-SEACLIFF LINEAR PARK DEDICATION tt/5/90 S�adiff Partners AJo:nt reno:re of Pacific Coast Homes and G AV C.Deve!opment Corp. February 18, 1994 Mr. Jim Engle, Superintendent Park Development Community Services Department 2000 Main Street Huntington Beach, CA 92648 Subject: City Exercise of Option on Parcel 7a or 7b per Holly Seacliff Development Agreement No. 90-1 Dear Mr. Engle: You have asked for additional information regarding the existing oil and gas operations upon the property located at the northeast corner of Ellis Avenue and Edwards Street (Parcel 7b of dedications per Development Agreement No. 90-1). The oil and gas lease is known as the "Brooks" lease and is operated by the Huntington Beach Company. Current oil production averages twenty barrels per day from two producing wells. Four additional wells have been drilled on the property (3 idle, one abandoned) and there is a tank setting onsite. The right to drill new wells on the property expired in 1939, however, the lease allows that wells already drilled can remain in operation as long as oil is produced "in such quantities that Lessee shall elect to operate wells." Production is expected to continue for at least another five years. Should the City exercise its option to accept dedication of Parcel 7b per the Development Agreement, Seacliff Partners agrees that upon termination of the existing oil and gas operation, we will abandon all wells on the property to City of Huntington Beach and California Division of Oil and Gas standards, and will remediate any onsite contaminated soils in accordance with the City's adopted cleanup standards, as has been done on all other dedicated park parcels. I hope this adequately addresses your concerns, please call me if you have any other questions. Very truly yours, uw-wvt�� William D. Holman Project Manager cc: Robert Franklin Richard Grunbaum Tom Zanic ❑ 520 Broadway, Suite 100, Santa Monica, CA 90401 (310) 394-3379 Fax (310) 394-6872 L�3 Corporate Plaza, Suite 250, Newport Beach, CA 92660 (714) 721-9777 Fax (714) 729-1214 CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK I (Telephone:714-536-5227) REQ U T FOR CITY COON& ACTION Date March 21, 1994 Submitted to: The Honorable Mayor.and City Council Submitted by: Michael Uberuaga, City Administrato Prepared by: Ron Hagan, Director, Community Service Subject: HOLLY/SEACLIFF DEVELOPMENT AGREEMENT SECTION 2.2.1(a)-7 Consistent with Council Policy? [ ] Yes [ ] New Policy or Excepti Statement of Issue, Recommendation,Analysis, Funding Source,Alter tive Actions,Attach : ��?! STATEMENT OF ISSUE There is a need to make a decision as to which of two parcels of nd the city should accept based on Section 2.2.1(a)-7 of the Holly/Seacliff Development Agreement. RECOMMENDATION Direct staff to exercise the city's option to acquire P ce17b (AP#110-151-15 and 16) located on the northeast corner of Edwards Street and Ellis Avenue per th terms of the Holly/Seacliff Development Agreement 90-1 for inclusion in Huntington Central Park. ANALYSIS Section 2.2.1(a)-7 of the Holly/Seacliff evelopment Agreement states: city shall have the o ion for five (5)years from the Effective Date to accept dedication either 2.7 acres (a portion of APN110-015-60) or 4.5 acres (AP 110-151-15 & 16). _ The 2.7 acre parcel (Parcel 7 ) is located at the southwest corner of Ellis Avenue and Edwards Street adjacent to the Bolsa Chica Regional rk. The 4.5 acre parcel(Parcel 7b) is located at the northeast corner of Ellis Avenue and Edwards Street wit ' the master plan area of Huntington Central Park. City staff has review e the options and recommends accepting the 4.5 acres within Huntington Central Park. Although the 2.7 ac a parcel would be a welcome addition to the Bolsa Chica Regional Park, it has not been part of the planning pr cess nor within the park's approved boundaries. The 4.5 acres are located within the proposed bound of Huntington Central Park. It is the gateway into the park from the corner of Ellis Avenue and Edwards S reet. It is an essential piece of the park because it provides a linkage to the corner of Ellis Avenue and wards Street which is the connecting point to the residential horse trails south of Ellis Avenue and the Bolsa Chica Regional Park. The development agreement does indicate that, if the city accepts dedication of the 4.5 acre parcel, the existing oil production and related operations would be allowed to continue on the site per the existing lease, which is 1 � 1 K e,., REQUEST FOR COUNCIL ACTION PAGE TWO operated by the Huntington Beach Company. Bill Holman, Project Manager, Seacliff Partners, indicates that the oil operations will probably continue at least another five years. The lease provides that oil production may continue as long as oil is produced "in such quantities that lessee shall elect to operate wells." It would then.be the operator's responsibility, per the lease , to remove all equipment, abandon the oil wells and restore the-land to its former condition, including remediation of any contaminated soils. Mr. Holman indicated in ebruary 17, 1994, letter to the city: Although not specifically required by the lease terms, we will agree that upon termination of the oil operation, Huntington Beach Co ny will abandon all wells on the property to City of Huntington ch and Division of Oil and Gas standards and will remediate any -site contaminated soils in accordance with the City's soil cl up standards, as we have done on all other dedicated park parcels The developer currently will receive a credit of 35.6 acres o ark land dedication for Bolsa Chica Regional Park. Section 2.2.l(g) states: In the event city exercises its option f dedication of the 2.7 acres under 2.2.1(a)7 above, Devel er's credit shall be increased to 41.3 acres. In the event city a rcises its option for dedication of the 4.5 acres in 2.2.1(a)7 abov , the Developer's credit shall be increased to 43.1 acres. The redit is calculated to include full credit for dedication of six acres jacent to Linear Park below the five foot contour; in the event the ity does not exercise the option, the Developer receives only half credi for the six acres. This park land dedication can be a lied toward any other residential development within the city. The value of including the 4.5 acres to provide gateway into Huntington Central Park and the connection between Huntington Central Park, Bolsa hica Regional Park, and the residential area south of Ellis Avenue is, in the estimation of staff, worth the i crease to full credit for the six acres adjacent to the linear park below the five foot contour. It should be noted t at if the city does not exercise this option, the Developer would still receive half credit for the six acres. FUNDING SOURCE Not Applicable ALTERNATIVE ACTION 1. Exercise city's option to acquire Parcel 7a, 2.7 acres adjacent to Bolsa Chica Regional Park. ATTACHMENTS 1. Location Map 2. Holman's February 17, 1994 letter • r +j uPAT,tAGTonl PA pv-� 7 CO W 7 76 7 7a n� ti.�-�•� .� ii 4 i / q C t ••.� ,.j -v ra( �d4 N mot,, r.aoo HOLLY-SEACLIFF LINEAR PARK DEDICATION tt/5/90 .>1 Fc Sekhff Partners A joint cenwre of Pacific Coast Homes and U.W.C.Development Corp. February 17, 1994 Mr. Jim Engle, Superintendent Park Development Community Services Department 2000 Main Street Huntington.Beach, CA 92648 Subject: City Exercise of Option on Parcel 7a / 7b per Holly Seacliff Development Agreement Dear Jim: Thanks for the opportunity to review your draft RCA fo a above item. I have made some comments and am returning the draft to you. I am also enclosing a copy (the best I could find of the oil & gas lease on Parcel 7b, known as the Brooks Lease, and a map showing the 1 ation of wells drilled on the property. Rick Sailor, Huntington Beach Company's Oilfiel upervisor, tells me that two of the six wells drilled on the property are currently produ ng (#3 and #5A), one has been abandoned (#5), and the other three are idle but are pla d to return to production when crude oil prices rebound. The current production from a two producing wells is 20 barrels per day. The right to drill new /remain ase expired in 1939, however, the lease allows that wells already drilled coperation as long as oil is produced "in such quantities that Lessee shall elect ells." Rick plans to continue operation of the lease for at least another five yearurchased new tanks to replace the current tank setting onsite. I have spoken t your interest in possibly moving the tanks away from the street area--he is goin a site plan which I would like to run by you before he replaces the tanks. Although not specifically required by the lease terms, we will agree that upon termination of the oil operation, Huntington Beach Company will abandon all wells on the property to City of Huntington Beach and Division of Oil and Gas standards and will remediate any onsite contaminated soils in accordance with the City's soil cleanup standards, as we have done on all other dedicated park parcels. Finally, I don't know whether it is appropriate to address in the RCA, but it is our intent and understanding that as part of the City Council's action to exercise its option to acquire Parcel 7b as you have recommended, Parcel 7a would immediately be released from any further requirement or offer for dedication to the City. ❑ 520 Broadway, Suite 100, Santa Monica, CA 90401 (310) 394-3379 Fax (310) 394-6872 �� 23 Corporate Plaza, Suite 250, Newport Beach, CA 92660 (714) 721-9777 Fax (714) 729-1214 Thanks for your help in taking this to the City Council, and please call me if you have any questions regarding the property or the information enclosed. Very truly yours, William D. Holman 1 Project Manager Encls.