10 Staff Report - 13 Acre Town-Owned Parcel in Vasona ParkN OF MEETING DATE: 04-02-07
ITEM NO:
COUNCIL AGENDA REPORT
~g GA'~o
DATE: MARCH 27, 2007
TO: MAYOR AND TOWN COUNCIL
FROM: DEBRA J. FIGONE, TOWN MANAGER
SUBJECT: PROVIDE DIRECTION TO PROCEED WITH PUBLIC PROCESS TO CONSIDER
SALE OF 13-ACRE TOWN-OWNED PARCEL IN VASONA PARK TO COUNTY OF
SANTA CLARA FOR CONTINUED USE AS PARKLAND
RECOMMENDATION:
Provide direction to proceed with the public process to consider the sale of 13-acre Town-owned parcel
in Vasona Park to the County of Santa Clara for continued use as parkland.
BACKGROUND:
The Town of Los Gatos owns a 13-acre parcel of land located in and surrounded by Vasona Park, which
is owned by the County of Santa Clara. Attachment 1 shows the location of the Town-owned parcel.
This property has been leased to the County since 1960, as discussed below. The County has used the
property for park purposes within Vasona County Park since this time, and would now like to purchase
the property from the Town for continued park use. Attachment 2 is a letter from the director of the
County Parks and Recreation Department stating the County's interest in purchasing the property for
continued park use. The purpose of this staff report and the discussion at the April 2, 2007 Town
Council meeting is to describe the history and process leading to the County's request and to identify the
recommended public process for the Town to consider the sale should the Council determine to proceed.
DISCUSSION:
History of Vasona Property
The records concerning the history of the Vasona property prior to the lease agreement with the County
of Santa Clara in early 1960 are difficult to assemble. However, prior research by the Town Attorney
revealed that the property was probably acquired by the Town sometime between 1910 and 1920 and
PREPARED BY: PAMELA S. JACOBS~ ° v,~-j
ASSISTANT TOWN MANAGER
NAMGR\PJacobs\Special ProjectsWasona staff report.doc
Reviewed by: Assistant Town Manager
Clerk Administrator Finance _
Town Attorney
nmunity Development
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: PROVIDE DIRECTION TO PROCEED WITH PUBLIC PROCESS TO CONSIDER
SALE OF 13-ACRE TOWN-OWNED PARCEL IN VASONA PARK TO COUNTY OF
SANTA CLARA FOR CONTINUED USE AS PARKLAND
MARCH 27, 2007
was leased out to private uses, including a gravel quarry operation from approximately the mid-1940s
until the property was leased to the County. The property had never been developed or used by the
Town for park purposes.
The property was leased at no cost to the County in 1960 "to establish and maintain a public park...."
The lease was for a period of 25 years with an option for an additional 25 years. The option was
apparently exercised by the continued use by the County without objection by the Town. The property
has been continuously used by the County pursuant to the lease from 1960 until the present date. The
lease automatically terminates on January 1, 2010.
In December 1965 the Town Council adopted resolution 1965-260 asking the County to acquire the
property using funds available for park acquisition and development. In March 1966 the County Board
of Supervisors notified the Town that they would not consider the purchase of the property "because of
the County policy of a moratorium at this time regarding the purchase of property for park purposes."
Another area in which there is overlapping ownership of property in Vasona Park is the property in use
by Billy Jones Railroad. In this case, six-tenths (0.66) of an acre of the property occupied by one of the
Billy Jones buildings is owned by the County and the remainder is owned by the Town. Billy Jones
Railroad has been operating pursuant to a license agreement with the Town, Santa Clara County and the
Santa Clara Valley Water District (as property adjacent to the creek is owned by the District) since 1968.
History of Process Leading to Proposed Sale
In 2004, the County proposed to purchase the Town's 13 acres in Vasona Park. Initially, the County and
Town explored a land exchange of the Town-owned property for other property in Vasona Park based
on direction given by the County Board of Supervisors and the Town Council in their respective closed
sessions under the exception in the Brown Act regarding real property negotiations. In 2004, the
County expressed its interest in Town consideration of a cash-only purchase of the Town-s 13-acre
property. The Town Council subsequently authorized staff in closed session to undertake an appraisal
of the Town's property jointly with the County.
The Town and County jointly funded an appraisal conducted by Hulberg & Associates, an appraisal firm
with significant experience conducting appraisals for the public sector. The appraisal indicates a value
of $7,025,000 for the Town's 13 acres.
The appraiser based the value on an assumption of the highest and best use of the property, which was
for residential development at a density of 5.9 dwelling units per acre. This assumes the possibility that
the land could be developed for this purpose, even though no plans exist to do so. This valuation is
advantageous for the Town because it assumes a more valuable use than would be the case if the
valuation was based on park use.
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: PROVIDE DIRECTION TO PROCEED WITH PUBLIC PROCESS TO CONSIDER
SALE OF 13-ACRE TOWN-OWNED PARCEL IN VASONA PARK TO COUNTY OF
SANTA CLARA FOR CONTINUED USE AS PARKLAND
MARCH 27, 2007
The County's Offer
The County has made a verbal and written, final offer of $6,000,000 for the Town property. The offer
reflects two adjustments to the appraised value: First, the County deducted $500,000 in consideration of
the cost to acquire road easements and road/bridge improvements to access the Town's property,
assuming the property was developed. Second, the County deducted roughly $525,000 to account for a
0.66 acre land exchange, whereby the County-owned land on which one of the Billy Jones railroad
buildings sits would be transferred to the Town. This offer is fair and reasonable and has been accepted
by the Town Council in closed session.
Considerations Regarding the Sale of the Property
The Town-owned property has been in continuous park use since its lease to the County in 1960.
Visitors to Vasona Park have been enjoying the picnic areas, pedestrian and bicycle trails, and
playground on the Town's property, without realizing that the 13-acre parcel actually belongs to the
Town.
During discussions with the County regarding the sale of the property, staff inquired as to whether
alternative uses, such as soccer fields, could be developed on the Town's property. County staff advised
the Town that active uses such as soccer fields would not be consistent with the passive nature of
Vasona Park. As noted in the attached letter from the County (Attachment 2), the County Board of
Supervisors and the County Parks and Recreation Commission are interested in maintaining the passive
uses within Vasona, and have reaffirmed this interest in response to several proposals for more active
facilities over the years. The County believes that the public and park users would confirm the desire to
keep Vasona Park in passive uses.
In addition, the Town's property is currently accessed only via passage through the County's property,
limiting the possibility for development of the Town's property without easements from the County.
Given the County's interest in maintaining passive uses, it is unlikely that this access would be granted.
Finally, Town staff also evaluated the potential for soccer fields on the property from a physical
perspective. Owing to the trees and creek on the site, the developable land area would not accommodate
a soccer field or fields. Another issue limiting the development of this property for soccer fields is the
geese droppings that would present a nuisance or hazard for this type of activity.
Based on the public's continued use of the Town's property as parkland for the past nearly 50 years, the
County's interest in maintaining passive uses in the park, constraints to developing the Town's property
for other purposes, and the financial value to the Town associated with a sale of the property, the sale of
the property to the County appears to be in the best interest of the Los Gatos community. Accordingly,
Council directed staff to proceed with the public process to consider the sale of the property to the
County beginning with this matter being before the Council in open session. The sale to the County
PAGE 4
MAYOR AND TOWN COUNCIL
SUBJECT: PROVIDE DIRECTION TO PROCEED WITH PUBLIC PROCESS TO CONSIDER
SALE OF 13-ACRE TOWN-OWNED PARCEL IN VASONA PARK TO COUNTY OF
SANTA CLARA FOR CONTINUED USE AS PARKLAND
MARCH 27, 2007
would ensure that the property remains as parkland in perpetuity and that the public will continue to
enjoy the property as they have since 1960. This objective would be guaranteed through either a deed
restriction or through language in the sale agreement.
Recommended Public Process
Because the property would continue to be used as a park after the sale, no special procedure associated
with disposal of Town real property is required. However, it is recommended that a deed restriction or
restrictive language in the sales agreement confirm that the property will remain in park use in
perpetuity.
Government Code §65402 does require that any proposed disposition of real property be reviewed by
the Planning Commission, which must prepare a report indicating that the disposition conforms with the
General Plan. The fact that the land has been under County control and used as a park since 1960 and
would continue to be used as a park after the sale should enable a finding of General Plan conformity.
This matter could be scheduled at a Planning Commission meeting in April.
Staff is also recommending that the proposed sale be reviewed by the Parks Commission, which is
charged with acting in an advisory capacity to the Town Council in matters pertaining to public parks.
Staff would provide background material regarding the proposed sale to the Parks Commission and
would be available to answer their questions. The Parks Commission could then comment on the sale.
This matter could be scheduled at the Parks Commission meeting in May.
Finally, consideration of the proposed sale would return to the Town Council in May or June for a final
decision whether to proceed or not proceed with the sale. At each of these meetings, beginning with the
April 2"d Town Council meeting, the public will have an opportunity to understand the purpose of the
sale, and to provide comments and input.
CONCLUSION:
The Town has an opportunity to sell to the County of Santa Clara for $6 million a 13-acre parcel located
in and surrounded by Vasona Park. The County has leased the property from the Town since 1960 for
use as parkland, and would continue to use the property as parkland in perpetuity. The transaction
would also include a .66 parcel of land currently owned by the County and leased to Billy Jones
Railroad.
Based on the past and future use of the property as parkland, the limitations to developing the property
for other uses, and the financial value of a sale, it appears to be in the best interest of the Town to sell
the property to the County. A public process, including discussions at the Parks Commission and the
Planning Commission, will provide opportunities for the community to comment regarding the proposed
sale.
PAGE 5
MAYOR AND TOWN COUNCIL
SUBJECT: PROVIDE DIRECTION TO PROCEED WITH PUBLIC PROCESS TO CONSIDER
SALE OF 13-ACRE TOWN-OWNED PARCEL IN VASONA PARK TO COUNTY OF
SANTA CLARA FOR CONTINUED USE AS PARKLAND
MARCH 27, 2007
ENVIRONMENTAL ASSESSMENT:
Is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
Costs to implement the public process would be absorbed within existing operating budgets of the
participating departments. If the sale of the Town-owned property is completed, the Town would
receive $6 million, which would become discretionary funds of the Town. Use of these discretionary
funds is subject to the standard budgetary policy authority of the Town Council. The potential use of the
sale proceeds is not a topic of consideration at this time.
Attachments:
1. Aerial Map of Town Property in Vasona Park
2. Letter from Lisa Kiilough, Director, Santa Clara County Parks and Recreation Department
Distribution:
Peter Kutras, Jr., Santa Clara County Executive
Lisa Killough, Director, Santa Clara County parks and Recreation Department
Peter Panacy, Executive Director, Billy Jones Railroad
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March 26, 2006
Ms. Debra Figone, Town Manager
Town of Los Gatos
P.O. Box 949
Los Gatos, CA 95031
Subject: Vasona Property Owned by the Town of Los Gatos
Dear Ms. Figone:
It is my understanding that the Town of Los Gatos is proceeding with the public process to
consider the transaction for properties in Vasona and Oak Meadow parks. Following are the key
points regarding the County's interest in such a transaction.
On behalf of the County of Santa Clara per the Board of Supervisors' directive in a June 19,
2006 meeting, I am writing to confirm that the County still wishes to execute a land exchange
with the Town of Los Gatos for properties within Vasona and Oak Meadow parks. We
understand that the Town Council will soon be considering the County's offer to trade a 13-acre
parcel that the Town owns within Vasona Lake County Park in exchange for a half-acre parcel
that the County owns within Oak Meadow Park and a County cash payment of $6,000,000.
Both parks are considered community treasures and it is the County's desire that both parcels be
preserved in perpetuity for park purposes as part of the transaction.
The Board, County Parks and Recreation Commission, and County Parks and Recreation
Department are particularly interested in maintaining the passive uses within Vasona. Through
the years, there have been several proposals for more active facilities within the park and at
every juncture, the Board and Commission have reaffirmed the park's pastoral quality and open
space values. These values have also been reinforced through a recent statistically-valid phone
survey, which shows the top public priorities for County Parks continue to be multi-use trails,
family picnicking and nature appreciation. In fact, when the County park system was established
in 1956, one of the founding principles was to provide facilities "of such a nature as to be
suitable for county-wide and regional services" and that the County "not engage in intensive,
organized, urban type recreation program on small park areas inside urban developed territory".
The County continues to advocate for a regional park system that is complementary to adjacent
neighborhood parks and sports facilities without competing for the same uses.
ATTACHMENT 2
e I3oalcl of Suix rvisot,5: Donald F. Gage, Blanca ,Ah°arado_ Pete X10 iugh. Ken Yeager. Liz Kniss
Coun(~ E se<uti~c: Pater KUtIaS Jr. ~,r
We believe that this transaction is in the best interest of the County and Town. The transaction
will allow each jurisdiction to gain control of properties that are generally considered part of
Vasona or Oak Meadow parks.
We value our relationship with the Town and hope to successfully conclude this transaction in
the near future.
Sincerely,
(r
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JA D
Lisa KillouO;/Director
Santa Clara County Parks and Recreation Department
Peter Kutras, Jr., County Executive
Gary Graves, Chief Deputy County Executive
Jane Decker, Deputy County Executive
2