2008-112-Finding It To Be In The Common Benefit Of The Citizens Of The Town Los Gatos To Sell Town Owned Property To Vasona Creek County Park To The County Of Santa ClaraRESOLUTION 2008-112
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
FINDING IT TO BE IN THE COMMON BENEFIT OF THE CITIZENS
OF THE TOWN OF LOS GATOS TO SELL TOWN-OWNED PROPERTY
IN VASONA CREEK COUNTY PARK TO THE COUNTY OF SANTA CLARA
AND AUTHORIZING THE TOWN MANAGER TO NEGOTIATE AND EXECUTE AN
AGREEMENT WITH THE COUNTY SUBJECT TO SPECIFIC TERMS
WHEREAS:
A. The Town owns a 13-acre parcel of land ("Vasona") located in and surrounded by
Vasona Lalce County Parlc, which is owned by the County of Santa Clara.
B. Vasona was acquired by the Town sometime between 1910 and 1920, and was
leased by the Town for various private commercial uses, including gravel quarry operations, from
approximately the mid-1940s until 1960.
C. Vasona was leased at no cost to the County of Santa Clara in 1960 "to establish and
maintain a public park...." Vasona Lake County Park was thereafter developed by the County of
Santa Clara using State of California Parlc Bond funds. The lease was for a period of 25 years
with an option for an additional 25 years, exercised by the County without objection by the Town.
The lease terminates on January 1, 2010.
D, h7 December 1965, the Town Council adopted resolution 1965-260 asking the
County of Santa Clara to acquire Vasona using funds available for park acquisition. The County
declined the Town's request in March 1966.
E. Billy Jones Wildcat Railroad, a historic miniature steam railroad attraction
operating since 1968, is located, in part (two thirds (0.66) of an acre), on County-owned property
in Vasona Lake County Parlc and, in part, on property owned by the Town.
F. In 2003 the County proposed to acquire Vasona from the Town. The parties
explored the possibility of a land transfer with the County ultimately deciding to make acash-only
offer. The Town and County agreed that the purchase price should be based on a mutually
acceptable appraisal of the Vasona Property.
G. In March 2005, a jointly funded appraisal conducted by Hulberg & Associates, an
appraisal firm with significant experience conducting appraisals on behalf of public agencies,
determined the value of Vasona to be $7,025,000. The appraiser based the value of the Vasona
Property on the assumption that the highest and best use of the property is residential development
at a density of 5.9 dwelling units per acre. The value is favorable to the Town given that the land
is zoned Resource Conservation (RC), a designation that does not allow for residential
development. The appraisal also reflects land value during a high market period for residential
properties. An earlier appraisal performed by Hulberg & Associates determined the fair market
value of Vasona as of March 8, 2004 to be $2,982,000 based on a highest and best use of one
single-family residence, the maximum residential density permitted under the current zoning of
Vasona, Resource Conservation (RC).
H. On March 26, 20.06, the County made a final offer of six million dollars
($6,000,000) for Vasona, which would include an exchange of the 0.66 acre of County land on
which the portion of Billy Jones Wildcat Railroad facility is located. The offer is based on the
Hulberg appraisal with two adjustments, inchtding a $500,000 deduction in consideration of the
cost to acquire road easements and road/bridge improvements necessary to gain access to Vasona,
assuming residential development, and a deduction of $525,000 to account for the 0.66 acre land
exchange involving the portion of Billy Jones Wildcat Railroad facility located on County land.
On May 9, 2007, the Town Planning Commission determined pursuant to
Government Code section 65402 that the proposed sale of Vasona to the County conformed with
the Town's General Plan.
J. On May 1, 2007, the Town Parks Commission advised pursuant to Los Gatos Town
Code section 19.20.010 whether the Town should sell Vasona to the County. The Commission
recommended that Council sell Vasona to the County.
K. Opponents of the sale of Vasona stress the need for youth sports facilities in the
Town and the lack of available land for such facilities. In light of these concerns, opponents
question the adequacy of the County's offer, pat•ticularly the County's reluctance to exchange
other County park property to be developed for youth sports activities. Opponents assert that the
Town should reject the County's offer and either develop Vasona for soccer fields or await a better
offer from the County, which opponents assert would occur upon expiration of the lease.
I. The concerns of opponents are countered by the following:
'The development of Vasona for active sports facilities is environmentally
insensitive and impractical. Vasona is narrow, hilly, covered in part with numerous mature trees,
and located adjacent to Los Gatos Creels, which must be crossed in order to obtain access via
Town-owned land. All other access to Vasona is controlled by the County. Consequently,
Vasona cannot be developed for active sports activities, especially soccer fields, without extensive
tree removal and grading. Also, the Town will have great difficulty developing suitable access to
Vasona over the creels and is unlikely to gain access via County-owned property.
2. The County's motivation to acquire Vasona is unlikely to increase upon
expiration of the lease. It is entirely impracticable for the Town to block continuing use of Vasona
for park purposes, which substantially benefits all residents of the Town. Upon expiration of the
lease, Vasona will likely continue to be used as a park in the same manner as that developed and
maintained by the County for over 40 years. Consequently, the County has no need to either
increase its cash offer, which is ah•eady highly favorable to the Town, or reconsider its policies
against exchanging park land or converting passive park land to active uses.
The Town will incur additional costs to operate and maintain Vasona,
without an increase in revenues, which may result in a reduction in services in maintaining other
Town-owned park properties.
4. The proceeds of the sale of Vasona can be dedicated for use by the Town, in
conjunction with other public agencies, to acquire and develop other land in the Town for
development of sports facilities.
J. Pursuant to Town Code section 373.50, the Town may purchase, lease, receive,
hold, and enjoy real and personal property, and control and dispose of it for the common benefit.
K. The Town Council finds that the sale of Vasona benefits the citizens of the Town of
Los Gatos as follows:
i. By preserving in perpetuity at no cost to the Town a public park use that has
existed in the Town for over 40 years.
ii. By preserving in perpetuity at no cost to the Town the natural features of
Vasona, including hills, creels, trees and lawn.
iii. By receiving six million dollars ($6,000,000) for the Town's fee interest in
Vasona, an amount in excess of the value of the land with its highest and best use limited to its
current zoning, Resource Conservation (RC).
iv. By committing the proceeds of the sale of Vasona to fund the acquisition of
land in the Town and development of sports facilities thereon.
v. By receiving fee title to .66 acre of County land on which the portion of
Billy Jones Wildcat Railroad facility is located.
RESOLVED:
The Town Manager is authorized to negotiate and fully execute on behalf of the Town all
documents necessary to complete the sale of Vasona to the County of Santa Clara according to the
following terms:
1. The County shall pay the Town six million dollars ($6,000,000).
2. The County shall deed all of its interests in 0.66 acre of land occupied and used by
Billy Jones Wildcat Railroad.
3. A deed restriction shall be recorded limiting Vasona to park use in perpetuity.
1'ASSEll AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos, California held on 2"d day of June 2008 by the following vote.
AYES: Diane McNutt, Joe Pirzynski, Mike Wasserman, and Mayor
Barbara Spector
NAYS: Steve Gliclanan
ABSENT:
ABSTAIN:
AT"NEST;
t~E-
~a-,
~~ { OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFOPNIA
SIGNED:
MAYO OF THE TOWN OF L S GATOS
LOS G TOS, CALIFORNIA