HomeMy WebLinkAbout2021-09-21; City Council; ; Purchase of Real Property in the Northeast Quadrant commonly known as the Rancho Milagro PropertyMeeting Date: Sept. 21, 2021
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Kyle Lancaster, Parks & Recreation Director
kyle.lancaster@carlsbadca.gov, 760-434-2941
Subject: Purchase of Real Property in the Northeast Quadrant commonly known as
the Rancho Milagro Property
District: 2
Recommended Action
Adopt a resolution identifying the city’s Real Estate Manager as the city’s negotiator
responsible for working with the representative for Rancho Milagro LLC toward the purchase of
real property commonly known as the Rancho Milagro property (APN 209-060-61) and directing
staff to schedule a future City Council closed session item to provide direction and grant
authority to its negotiator regarding the price and terms of payment for the purchase.
Executive Summary
The owner’s representative of the property commonly known as the Rancho Milagro Property
[APN 209-060-61], has offered the property to the City of Carlsbad. Staff has considered and
evaluated the offer for the property as an open space purchase. The property is 43.5 acres and
is located in the Sunny Creek Specific Plan Area, northeast of the intersection of El Camino Real
and College Boulevard.
Staff recommend the City Council identify the city’s Real Estate Manager as the city’s negotiator
responsible for working with the agent for the seller, Rancho Milagro, LLC, toward the possible
purchase of the property and direct staff to schedule a future City Council closed session item
for the council to provide direction and grant authority to its negotiator regarding the price and
terms of payment for the purchase.
This item is being presented to the City Council in accordance with California Government Code
Section 54956.8, which requires that a local agency “hold an open and public session in which it
identifies its negotiators, the real property or real properties which the negotiations may
concern and the person or persons with whom its negotiators may negotiate.”
Sept 21, 2021 Item #10 Page 1 of 20
Discussion
Background
The City of Carlsbad’s ability to purchase property is limited by Proposition H, which was passed
by its voters in 1982. It states, in part:
The city shall make no real property acquisition and/or no improvement to real
property the cost of which exceeds one million dollars in city funds, unless the
proposed acquisition and/or improvement project and the cost in city funds is
first placed upon the ballot and approved by a majority of the voters voting
thereon at an election.
The City Council was granted the authority to spend more than $1 million in city funds for open
space acquisition in 2002 with the passage of Proposition C. The City Council created the
Proposition C Open Space and Trails Ad Hoc Citizen's Committee, also known as the Open Space
Committee, in 2005, to establish priorities for open space property acquisition and trail linkage
projects and make recommendations to the City Council on potential acquisitions and projects
for future expenditures. The City Council accepted the Open Space Committee’s final report
and the candidate property rankings list in March 2007.
In September of 2007, the City Council directed that the Open Space Committee’s property
rankings list be expanded to include three additional areas identified as potential candidates for
future open space acquisition, one of which was the Sunny Creek area consisting of 11
properties. The Rancho Milagro property was included as a part of the Sunny Creek area
properties. The Sunny Creek area properties as a whole were evaluated using the property
acquisition ranking criteria developed by the Open Space Committee and approved by the City
Council in October of 2006 and were ranked fourth – one being top-ranked – out of 16
properties with a point total of 172 (Exhibit 2).
In 2008, the City Council also directed that the City Council would only consider purchasing
open space properties offered by willing sellers.
On March 14, 2017, the City Council approved (City Council Resolution No. 2017-228) the
General Plan Update/Climate Action Plan Lawsuit Settlement Agreement between the City of
Carlsbad and North County Advocates, or NCA, a non-profit group with the stated goal of
“preserving the quality of life, the environment and the character of Coastal North County San
Diego.” One of the provisions of that agreement requires the city to continue to consider and
evaluate properties for potential acquisition of open space and to use good faith efforts to
acquire those properties.
Section 4.3.15 of the agreement requires the following:
The City will meet and collaborate with NCA at least twice annually to discuss the
status of acquiring, for the purpose of open space preservation in perpetuity, the
properties listed in the City Council approved Proposition C Open Space and
Trails Ad Hoc Committee Property Analysis ranking chart. As a part of these
meetings, the City will also consider and evaluate for acquisition any other
property that is not listed on the Proposition C Open Space and Trails Committee
Property Analysis ranking chart. In doing so, the City will utilize the Property
Acquisition Ranking Criteria developed by the Proposition C Open Space and
Sept 21, 2021 Item #10 Page 2 of 20
Trails Ad Hoc Committee to consider the value of the acquisition regardless of
rank, for open space preservation in perpetuity, any property not included on
the Proposition C list. If, through these meetings, a property is evaluated and
identified as being appropriate for acquisition for open space preservation in
perpetuity, which shall also include identification as having a willing seller, the
City shall use good faith efforts to acquire the property…City and other funds
may only be used for costs that are necessary to acquire the real property
including but not limited to deposits required by purchase agreements,
necessary option payments, appraisals, technical reports, environmental studies
of the property, and purchase price payments. For the purpose of this section,
there is no time frame identified, no maximum funding limit on the amount of
City funds made available to acquire property for open space preservation in
perpetuity, and the minimum funding amount the City shall make available to
acquire property for open space preservation in perpetuity is $4,000,000.
A staff Open Space Acquisition Committee meets approximately four times annually to review
open space properties for potential acquisition by the city. The Committee is comprised of the
following staff: Parks & Recreation Director, Parks Services Manager, Parks Planning Manager,
Parks Planner, City Planner, Real Estate Manager, Assistant City Attorney, Environmental
Services Manager, and Senior Program Manager – Habitat Management Plan. In keeping with
the agreement, committee representatives also meet at least twice annually with NCA
representatives.
Rancho Milagro property
In June of 2021, Al Apuzzo with Lee & Associates, a representative for the owner, Rancho
Milagro, LLC, offered the property for sale to the City of Carlsbad. At that time, the property
was not listed for sale on the open market, and it is not listed now. The city has completed an
appraisal of the property. In accordance with Government Code Section 6254(h), which allows
the city to withhold the contents of real estate appraisals until all of the property has been
acquired, staff recommend not publicly disclosing the appraised value at this time.
Property characteristics
• 43.58 acre property located in the Sunny Creek Specific Plan Area, northeast of the
intersection of El Camino Real and College Boulevard (Exhibit 3).
• Consists of 13.58 acres of developable land – designated in city planning documents as
single family residential – and 30 acres designated as open space.
• Current General Plan Land Use and Zoning designations are Residential 0-4 dwelling
units per acre (R-4) and One Family Residential (R-1-0.5-Q) for the 13.58 acre residential
portion of the property and Open Space (OS) for the 30-acre open space portion.
• The property owner has a valid tentative map approved by the city that would allow the
property to be subdivided into 19, half-acre single family residential lots, a total of 13.58
acres, and four open space lots, a total of 30 acres. This map is valid until Feb. 15, 2022,
with no further city-granted time extensions available.
Sept 21, 2021 Item #10 Page 3 of 20
• Identified in the city’s Habitat Management Plan as a proposed hardline preserve area,1
consisting of 13.58 acres of useable land and 30 acres of open space (Exhibit 4).
• Classified as one of the 11 Sunny Creek area properties that were listed on the City
Council-approved Proposition C Open Space and Trails Committee property analysis
ranking chart, and was ranked fourth.
• Contains a conceptual alignment for future Trail Segment 9D - Utility Pipeline Trail, as
identified in the Carlsbad Trails Master Plan (Exhibit 5).
• Contains varied topography, providing ocean and mountain views.
• Is a possible source of wetland and upland mitigation credit for the city, and includes
coastal sage scrub.
The committee has considered and evaluated the property for potential purchase by the city as
open space. At 43.58 acres, if the property was purchased, it would be the largest area the city
has purchased under Proposition C and the General Plan Update/Climate Action Plan Lawsuit
Settlement Agreement.
As noted above, the Rancho Milagro property was part of the Sunny Creek area properties that
were included in expanded Proposition C Open Space and Trails Committee Property Analysis
ranking chart and specifically identified as potential candidate properties for future open space
acquisition. Staff evaluated the Sunny Creek area properties using the City Council-approved
ranking criteria for property acquisitions. The properties were ranked fourth, out of 16
properties with one being top-ranked. There is an identified willing seller of the property, so its
purchase would be consistent with the direction the City Council provided in 2008. The
potential purchase is also consistent with the General Plan Update/Climate Action Plan Lawsuit
Settlement Agreement between the City of Carlsbad and NCA. The property also contains a
conceptual alignment for future Trail Segment 9D - Utility Pipeline Trail, as identified in the
Carlsbad Trails Master Plan.
The purchase of the property and a change in its zoning, as detailed below, would result in a net
increase of 13.58 acres to the city’s official open space inventory and increase the amount of
open space added to the city’s open space inventory from this specific property by 31% (the
13.58 acres of the 43.58-acre site).
Housing Law compliance
Because those 13.58 acres of the property are usable and zoned for residential development,
state law would require changes to city planning documents for that portion of the property to
be considered part of the city’s official open space inventory. A General Plan amendment and
zoning amendment would be required to change the General Plan’s land use and zoning
designations for the 13.58 acre residential portion of the property from Residential 0-4 dwelling
units per acre (R-4) and One Family Residential (R-1-0.5-Q) to Open Space (OS).
There are two relevant state laws that must be satisfied as part of the amendment process
worth noting: SB166 and SB330.
1 The city’s Habitat Management Plan defines a hardline preserve area as a preserve that has been set aside for
permanent conservation and is protected by a permanently lasting conservation easement. Properties designated
as hardline properties cannot be developed.
Sept 21, 2021 Item #10 Page 4 of 20
• Government Code Section 65863, which was enacted as part of Senate Bill 166 and
became effective in 2018, states that the city may not reduce the residential density on
any parcel below that which was used by the California Department of Housing and
Community Development in determining compliance with Housing Element law, unless
the city makes the finding that the reduction of residential density is consistent with the
city’s adopted General Plan, including the Housing Element, and the remaining sites
identified in the Housing Element are adequate to accommodate the city’s share of the
regional housing need, in accordance with Government Code Section 65584.
• Similarly, Government Code Section 66300, which was enacted as part of Senate Bill 330
and became effective in 2020 states:
(b)(1) [W]ith respect to land where housing is an allowable use, … an
affected city shall not enact a development policy, standard, or condition
that would have any of the follow effects:
(A) Changing the general plan land use designation … or zoning of a
parcel … of property to a less intensive use … “[L]ess intensive use”
includes … increased open space … requirements ... or anything that
would lessen the intensity of housing. …
(i) This section does not prohibit … an affected city from changing a land
use designation or zoning ordinance to a less intensive use if the city …
concurrently changes the development standards, policies, and
conditions applicable to other parcels within the jurisdiction to ensure
that there is no net loss in residential capacity.
The proposed action being considered by the City Council is not currently affected by these
requirements because the residential capacity will remain on the site until the General Plan and
Zoning designations on the 13.58 acre residential portion of the property are formally changed
to an open space designation. If the city purchases the property, then,, when the city proposes
a change in residential capacity to make the entire property part of the city’s open space
inventory, it can and will address these requirements and ensure there is no net loss in
residential capacity.
North County Advocates
On Aug. 18, 2021, committee staff and representatives of North County Advocates met virtually
to discuss the city’s potential purchase of the property. Staff provided the characteristics of the
property listed above and aerial images of the property for NCA’s review. Representatives of
NCA expressed an interest in discussing the purchase of the property with the rest of its board
of directors before providing the city with its a formal position on the property.
On Aug. 30, 2021, committee staff received an email message from NCA representative Diane
Nygaard (Exhibit 6), that stated:
The Board of North County Advocates has voted to not support the use of
General Funds for acquisition of Rancho Milagro.
The majority of this land will be preserved, whether there is development on
portions of the land or not. Extensive effort was spent to minimize the impacts
of this proposed development. Generally we prefer conservation to
Sept 21, 2021 Item #10 Page 5 of 20
development. However, in this case, there will be extensive conservation, there
are other higher priority lands that have still not been adequately protected, and
there has been no leveraging of taxpayer dollars that would result in more land
being conserved overall.
Staff sent an email response to Ms. Nygaard, confirming receipt of the message and advising
NCA of the city’s intent to present an item regarding the property to the City Council at its
regularly scheduled meeting on Sept. 21, 2021.
Previous open space purchases
Paseo del Norte Property
On Nov. 13, 2019, the City Council approved the purchase of the Paseo del Norte property, at
6125 Paseo del Norte, for $94,100. The Paseo del Norte property is 1.31 acres and was
appraised at $100,000 on July 13, 2018. The property had an existing General Plan land use and
zoning designation of open space and was a Habitat Management Plan hardline preserve area
at the time of the purchase and therefore had no development potential. The city purchased
the property for its potential as a wetland mitigation site. The city paid $71,832 per acre, or
$1.65 per square foot, with the purchase closing escrow on Jan. 6, 2020. This open space
property purchase was supported by NCA and the property was purchased using only city
funds.
Aura Circle Property
On Feb. 11, 2020, the City Council approved the purchase of the Aura Circle property, located at
the terminus of Aura Circle, for $2,070,000. The Aura Circle property is 15.02 acres and was
appraised at $2,070,000 in December 2019. At the time of the purchase, the property’s owners
had a valid approved tentative map to subdivide the property into nine single family residential
lots on 2.66 acres and one open space lot of 12.36 acres. The purchase of the property allowed
for the addition of 2.66 acres to the city’s official open space inventory. Through the purchase
of the entire property, the city increased the amount of open space it would have added to the
city’s open space inventory from this specific property by 17% (+2.66 acres of the 15.02 acre
site). The city paid $131,816 per acre, or $3.16 per square foot, with the purchase closing
escrow on March 16, 2020. This open space property purchase was supported by NCA and the
property was purchased using only city funds.
Lubliner Property
On Nov. 13, 2018, the City Council authorized the city’s Real Estate Manager to pursue the
purchase of the Lubliner property, located east of College Boulevard (APN: 209-060-05-00) for
$2,040,000. The property was listed and offered at a sale price of $2,750,000. The Lubliner
property is 17.77 acres and was appraised at $2,040,000 in July 2018. The city did not
successfully complete this purchase because the seller ultimately sold the property to another
buyer for $500,000 over the appraisal and the city’s offering price.
The Lubliner property has no approved development permits and has a General Plan Land Use
designation of Residential 0-4 dwelling units per acre (R-4) and Open Space (OS). The Lubliner
property was also included as a part of the 11 Sunny Creek area properties that were identified
as potential candidate properties for future acquisition by the Open Space Committee and
ranked fourth out of 16 properties under the city’s approved criteria.
Sept 21, 2021 Item #10 Page 6 of 20
The purchase of the property would have allowed for the addition of 11.79 acres to the city’s
official open space inventory. If the city had completed the purchase of the entire property, the
city would have increased the amount of open space added to the city’s open space inventory
from this specific property by 66% (+11.79 acres of the 17.77 acre site). Had the city acquired
the Lubliner Property, it would have been for $114,800 per acre, or $2.64 per square foot. The
potential open space property purchase was supported by North County Advocates.
City Council authority
California Government Code Section 54956.8 states:
Notwithstanding any other provision of this chapter, a legislative body of a local
agency may hold a closed session with its negotiator prior to the purchase, sale,
exchange, or lease of real property by or for the local agency to grant authority
to its negotiator regarding the price and terms of payment for the purchase,
sale, exchange, or lease.
However, prior to the closed session, the legislative body of the local agency
shall hold an open and public session in which it identifies its negotiators, the
real property or real properties which the negotiations may concern, and the
person or persons with whom its negotiators may negotiate.
Staff recommendation
Staff recommend that the City Council identify the city’s Real Estate Manager as the city’s
negotiator responsible for working with the representative for Rancho Milagro, LLC toward the
purchase of real property commonly known as the Rancho Milagro property and direct staff to
schedule a future City Council closed session item to provide direction and grant authority to its
negotiator regarding the price and terms of payment for the purchase.
Options
The following options are provided for the City Council, with Option No. 1 recommended by
staff:
1. Identify the city’s Real Estate Manager as the city’s negotiator responsible for working
with the representative for Rancho Milagro, LLC, towards the purchase of real property
commonly known as the Rancho Milagro property and direct staff to schedule a future
City Council closed session item to provide direction and grant authority to its
negotiator regarding the price and terms of payment for the purchase.
Pros
• Consistent with the Proposition C Open Space and Trails Committee Property
Analysis ranking and recommendation for the Sunny Creek Properties, which
included the property
• There is an identified willing seller
• Consistent with the General Plan Update/Climate Action Plan Lawsuit Settlement
Agreement between the City of Carlsbad and North County Advocates
• Consistent with the staff Open Space Acquisition Committee’s evaluation of the
property
• Could result in a net increase of 13.58 acres to the city’s official open space
inventory
Sept 21, 2021 Item #10 Page 7 of 20
Cons
• Based on the 43.58 size of the property, the purchase price will be significant
and will exceed the current balance of $1,812,941 in the Open Space and Trails
Acquisition Budget (Capital Improvement Program Project No. 4083).
• If the city elects to purchase the property, the city would be responsible for the
maintenance costs of the entire 43.58 acres. However, if the city elects not to
purchase the property and the property’s currently approved tentative map is
recorded, 30 acres or 69% of the property would be permanently preserved as
natural open space and the property owner would be responsible for the on-
going maintenance.
• The city, due to its ownership of the property in the city’s Local Facilities
Management Zone 15, may become liable for certain Zone 15-related
infrastructure improvements.2 These costs are currently undefinable.
• The purchase of the property is not supported by NCA.
2. Decline to further pursue the purchase of the property.
Pros
• Remaining current balance of $1,812,941 in the Open Space and Trails
Acquisition Budget can be used for future open space or trail connection
purchases
• The city would not be responsible for the maintenance costs of the entire 43.58
acres
• The city would not be liable for the certain Zone 15-related infrastructure
improvements, whose costs cannot yet be defined
• Provides Real Estate Manager and committee staff with time to work on other
matters
Cons
• Does not realize the recommendation from the Proposition C - Open Space and
Trails Committee – Property Analysis ranking for the Sunny Creek Properties
• Having a willing seller offer property for sale to the city for open space happens
very infrequently
• Will not result in a net increase of 13.36 acres of natural open space to the city’s
inventory
Fiscal Analysis
There is no direct fiscal impact resulting from the City Council identifying the city’s Real Estate
Manager as the city’s negotiator responsible for working with the representative for Rancho
Milagro, LLC, toward the purchase of real property commonly known as the Rancho Milagro
property and directing staff to schedule a future City Council closed session item to provide
2 Carlsbad’s Citywide Facilities and Improvements Plan established Local Facilities Management Zones to make
sure that development does not outpace the city’s basic facilities. Developers in each zone may be required to
make specific improvements to provide these facilities as part of their development projects.
Sept 21, 2021 Item #10 Page 8 of 20
direction and grant authority to its negotiator regarding the price and terms of payment for the
purchase.
The current balance in the Open Space and Trails Acquisition Budget is as follows:
Open Space/Trail Acquisition
Capital Improvement Program Project No. 4083
Total appropriation – General Capital Construction Fund $4,015,000
Current expenditures/encumbrances ($2,202,059)
TOTAL AVAILABLE FUNDING $1,812,941
Next Steps
Staff will schedule a future City Council closed session item to provide the opportunity for the
City Council to give direction and grant authority to the city’s Real Estate Manager regarding
the price and terms of payment for the purchase of the property. Based on any closed session
direction, the Real Estate Manager will negotiate with the representative for Rancho Milagro,
LLC, toward the purchase the property. Should any directed negotiations be successful, the
Real Estate Manager will return to an open session of the City Council for its consideration of a
purchase agreement for the property.
Environmental Evaluation (CEQA)
This action is categorically exempt from the California Environmental Quality Act pursuant to
CEQA Guidelines Section 15325 - Transfers of ownership of interest in land to preserve existing
natural conditions and historical resources. This exemption also recognizes land acquired to
allow restoration of natural conditions.
Public Notification and Outreach
This item was noticed in keeping with the state's Ralph M. Brown Act and it was available for
public viewing and review at least 72 hours before the scheduled meeting date.
Exhibits
1. City Council resolution
2. Proposition C - Open Space and Trails Ad Hoc Citizen's Committee - property rankings list
3. Rancho Milagro Property – site map
4. Carlsbad Habitat Management Plan Conservation Area Map
5. Carlsbad Trails Master Plan Segment 9D – Utility Pipeline Trail
6. North County Advocates statement, dated Aug. 30, 2021
Sept 21, 2021 Item #10 Page 9 of 20
Sept 21, 2021 Item #10 Page 10 of 20
EXHIBIT 1
RESOLUTION NO. 2021-216
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, IDENTIFYING THE CITY'S REAL ESTATE MANAGER AS THE CITY'S
NEGOTIATOR RESPONSIBLE FOR WORKING WITH THE REPRESENTATIVE FOR
RANCHO MILAGRO, LLC, TOWARDS THE PURCHASE OF REAL PROPERTY
COMMONLY KNOWN AS THE RANCHO MILAGRO PROPERTY (APN 209-060-
61} AND DIRECTING STAFF TO SCHEDULE A FUTURE CITY COUNCIL CLOSED
SESSION ITEM TO PROVIDE DIRECTION AND GRANT AUTHORITY TO ITS
NEGOTIATOR REGARDING THE PRICE AND TERMS OF PAYMENT FOR THE
PURCHASE
WHEREAS, In 1982, the voters of the City of Carlsbad passed Proposition H, which states in
part that "The city shall make no real property acquisition and/or no improvement to real property
the cost of which exceeds one million dollars in city funds, unless the proposed acquisition and/or
improvement project and the cost in city funds is first placed upon the ballot and approved by a
majority of the voters voting thereon at an election"; and
WHEREAS, In 2002, the voters of the City of Carlsbad passed Proposition C, which authorized
the City Council's ability to spend city funds in an amount over $1 million for open space acquisition;
and
WHEREAS, the Proposition C Open Space and Trails Ad Hoc Citizen's Committee, also known as
the Open Space Committee, was created by the City Council on Oct. 18, 2005, with the purpose of
establishing priorities for open space property acquisition and trail linkage projects and making
. recommendations to the City Council on potential candidate acquisitions and projects for future
expenditures; and
WHEREAS, in March of 2007, the City Council accepted the Open Space Committee's final report
and the candidate property rankings list, and in September of 2007, the City Council directed that the
Open Space Committee's property rankings list be expanded to include three additional properties,
one of which was the Sunny Creek area properties; and
WHEREAS, the Rancho Milagro property (Property) was included as a part of the 11 added
Sunny Creek area properties that were specifically identified as potential candidate properties for
future open space acquisition. The Sunny Creek area properties as a whole were evaluated utilizing the
property acquisition ranking criteria developed by the Open Space Committee and approved by the
City Council in October of 2006, and were ranked fourth (one being top ranked) out of 16 properties
with a point total of 172; and
Sept 21, 2021 Item #10 Page 11 of 20
WHEREAS, in 2008, the City Council also directed that the City Council would only consider
purchasing open space properties offered by willing sellers; and
WHEREAS, on March 14, 2017, the City Council approved (City Council Reso. No. 2017-228) the
General Plan Update -Climate Action Plan Lawsuit Settlement Agreement (Agreement) between the
City of Carlsbad and North County Advocates (NCA). One of the provisions of that Agreement requires
the city to continue to consider and evaluate properties for potential acquisition of open space and use
good faith efforts to acquire those properties; and
WHEREAS, in June of 2021, the owner's representative for Rancho Milagro, LLC, Mr. Al Apuzzo
with Lee & Associates, offered the Property to the City of Carlsbad; and
WHEREAS, staff has considered and evaluated the 43.58 acre Property in the northeast
quadrant, commonly known as the Rancho Milagro property (APN 209-060-61), located in the Sunny
Creek Specific Plan Area, northeast of the intersection of El Camino Real and College Boulevard, for
potential acquisition by the city for open space purposes; and
WHEREAS, California Government Code Section 54956.8 requires that a local agency hold an
open and public session in which it identifies its negotiators, the real property or properties which the
negotiations may concern, and the person or persons with whom its n·egotiators may negotiate; and
WHEREAS, staff is recommending that the City Council identify the city's Real Estate Manager
as the city's negotiator responsible for working with the representative for Rancho Milagro, LLC,
towards the purchase of real property commonly known as the Rancho Milagro property and direct
staff to schedule a future City Council closed session item to provide direction and grant authority to
its negotiator regarding the price and terms of payment for the purchase; and
WHEREAS, the City Planner has considered the potential environmental effects of this project
and has been determined it to be exempt from environmental review per CEQA Guidelines Section
15325 -Transfer of of ownership of interest in land to preserve existing natural conditions and
historical resources, and that no exception to the exemption as set forth in CEQA Guidelines section
15300.2 applies.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1. That the above recitations are true and correct.
Sept 21, 2021 Item #10 Page 12 of 20
2. That the City Council hereby identifies the city's Real Estate Manager as the city's
negotiator responsible for working with the representative for Rancho Milagro, LLC, Mr. Al
Apuzzo with Lee & Associates, towards the purchase of real property commonly known as
the Rancho Milagro property (APN 209-060-61).
3. That the City Council hereby directs staff to schedule a future City Council closed session
item to provide direction and grant authority to its negotiator regarding the price and
terms of payment for the purchase of the Property.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 21st day of September 2021, by the following vote, to wit:
AYES: Hall, Blackburn, Bhat-Patel, Acosta, Norby
NAYS: None.
ABSENT: None.
MATT HALL, Mayor
Uwt~~
~VIOLA MEDINA, City Clerk Services Manager
(SEAL) ,,,1111111111,,,,,,,, ~,,,,, ~ CA b 1111❖. "'o~ #T(. ~ s-~ .--·~--~ %.
[~/~··~· {o{~y~)cJ
\ Ct·-.. --r.r ____ _... ff ~✓-~1 ············~,~~ ❖,,,,"-IFO~",,,,-:,.
'"11,,,,11111111\\''
EXHIBIT 2
OS Committee or Staff Ranking 1 2 2 4
4
6
Property Name Quarry Creek Sherman Property (trail easments) Calavera Village H Sunny Creek Propertks (11)
S.Agua HediondaProperties (6)Co. Airport Property (OS easement) PROPOSITION C OPEN SPACE AND TRAILS COMMITTEE PROPERTY ANALYSIS
(AS OF JANUARY 28, 2008 -new information in italics)
Acreage Adds Open Space Benefits HMP Adds Trails to City Land Use Conflicts Mitigation (approximate) to City System System Credit 100 acres Yes Yes Yes Yes -portion of site is Potential subject designated for to Agency residential land uses approval. 134 acres, trail No - property is No -property is Yes No -trails would not No -property is acreage already conserved. already conserved. conflict with land use already unknown. designations. conserved. 60 acres Potentially, if the Potentially, if 3 .2 No -City trail Yes - a 3.2 acre No 3 .2 acre CF site is acre CF site is already exists on portion of site is designated OS. conserved and property designated Community replanted. Facilities 143.86 acres Yes -habitat and Yes -additional Yes-future City trail Yes-most of the Potential subject floodplain areas habitat preservation traverses the properties are to Agency are outside of and wetlands properties. designated for future approval.
existing Open buffering is possible. residential Space. developmenL
325 acres Yes-one of the Yes -conservation Yes-future City trail Yes-one of the Potential subject properties is could provide traverses the properties is to Agency
designated for revegetation and properties. designated for future approval future additional buffers commercial development, development. 204 acres No -property is No -property is Yes -portion of No -property is No already conserved within County property is designated already conserved MHCP. for City trail. Willing Seller Status No Yes Yes Varied status
Unknown No Sept 21, 2021 Item #10 Page 13 of 20
OS Property Name Committee or Staff Ranking
7 Kato Property
7 Mandana Property
7 CUSD High School
Site
10 Lubliner Property (trail easement)
11 Rancho Carlsbad
12 Mitsuuchi Property
13 Murphy Property
PROPOSITION C OPEN SPACE AND TRAILS COMMITTEE PROPERTY ANALYSIS
(AS OF JANUARY 28, 2008 -new information in italics)
Acreage Adds Open Space Benefits HMP Adds Trails to City Land Use Conflicts Mitigation (approximate) to City System System Credit
73 acres Yes Yes -only a portion Potentially -City trail Yes -portion of site is Potential subject
of the site would be system could be designated for to Agency conserved if amended to include residential land uses. approval. developed. the property.
186 acres Yes Yes -only a portion Yes -portion of site is Potential subject of the site would be designated for to Agency conserved if residential land uses. approval. developed.
58 acres, Yes No -proposal only Potential subject unused portion includes unused school to Agency size unknown. property approval.
l 7 acres, trail No No Yes -future City trail No -trail would not No acreage located on property. conflict with land use unknown.designations.
11 acres Yes Yes -property would No Yes -portion of site is Potential subject
be included in HMP designated for to Agency Preserve. residential land uses. approval.
18 acres Yes Yes -property would Yes -future City trail Yes -portion of site is Potential subject
be included in HMP located on property. designated for to Agency Preserve. residential land uses. approval.
17 acres Yes Yes -property would Yes -future City trail Yes -portion of site is Potential subject be included in HMP located on property. designated for to Agency Preserve. residential land uses. approval.
Willing Seller Status
Undetermined
No
No
No
No
Yes
No
Sept 21, 2021 Item #10 Page 14 of 20
OS Property Name Committee or Staff
Ranking
14 Poinsettia Vernal Pools
15 Brodiaea Preserve
16 State Properties (2)
PROPOSITION C OPEN SPACE AND TRAILS COMMITTEE PROPERTY ANALYSIS (AS OF JANUARY 28, 2008 -new information in italics)
Acreage Adds Open Space Benefits HMP Adds Trails to City Land Use Conflicts Mitigation (approximate) to City System System Credit
16 acres No Yes -conservation No No -property is No would allow new take already conserved. permit for vernal pool
species.
l acre No Yes -conservation No No -property is No would maintain take already conserved. permit for Brodiaea.
22.83 acres No -properties Yes -conservation Yes -potential for No -property is Potential subject already designated would provide additional trail already designated to Agency Open Space management for linkage to the north Open Space in approval wetlands General Plan
Willing Seller Status
Yes
Yes
No
Sept 21, 2021 Item #10 Page 15 of 20
aerial
NN
6
subjectproperty
COASTERCOASTER
The Crossings at Carlsbad
Agua Hedionda Lagoon
Sage CreekHigh School
El Camino
R
e
a
l
El Camino
R
e
a
l
Palmer Way
Palmer Way
College BlvdCollege Blvd
Salk Av
e
Salk Av
e
CARLSBADCARLSBADVILLAGEVILLAGE
Sept 21, 2021 Item #10 Page 16 of 20
aerial
4
SWE
E
T
W
A
T
E
R
R
D
NN
4
subjectproperty
El Camino
R
e
a
l
El Camino
R
e
a
l
Colleg
e
Bl
v
d
Colleg
e
Bl
v
d
Sage CreekHigh School
Cannon RdCannon Rd
Sept 21, 2021 Item #10 Page 17 of 20
°Existing Hardline Conservation Area
Proposed Hardline Conservation Area
Standards Area Conservation Area
Outside-Conservation Area
Habitat Management Plan (HMP) Conservation Area Map
Created: 9/13/2021
J:\GIS\HMPdata\HMPConservedAreas.mxd
Exhibit 4
Rancho Milagro Property
Sept 21, 2021 Item #10 Page 18 of 20
Chapter 5 • Trail Development ImplementaƟŽŶWůĂŶ5-34
City of Carlsbad
dƌĂŝů^ĞŐŵĞŶƚϵ͗
hƟůŝƚLJWŝƉĞůŝŶĞdƌĂŝů
Project DescriƉƟŽŶ
This trail leads towards Maerkle Reservoir and the City of Vista. The width of the
uƟlity roadbed varies depending on the exisƟŶŐĐŽŶĚŝƟŽŶƐ͘EŽŶĞw construcƟŽŶ
will be required, since the trail is proposed in already exisƟnŐƵƟůity corridor.
Development efforts may include trail repairs, erosion control and trail-head
signage. Cost also induces administrĂƟǀeƟŵĞŶĞĐĞƐsary to incorporate the
trail into the citywide network. Trail specific environmental review shall be part
of trail design and development. Environmental review, agency permiƫŶŐ, and
miƟŐĂƟŽŶŝƐŶŽƚŝŶĐůƵĚĞĚŝŶƚŚĞĞƐƟmated project cost.
EsƟŵated Project Cost:
$40,000
0DHUNOH
5HVHUYRLU
(
(
( ( & &$ * * ' ' % % ' '
' ' ' '
'
^ƵďĂƌĞĂ͗ϵ
Quadrant: NE
Trail Category: Open Space
Trail Type: 3
Length: 4.7 mile
ĞǀĞůŽƉŵĞŶƚ ŶƟƚLJ͗ŝƚLJŽĨĂƌůƐďĂĚ
ƐƟŵĂƚĞĚ/ŵƉůĞŵĞŶƚĂƟŽŶ͗ϮϬϮϬ
EXHIBIT 5
Sept 21, 2021 Item #10 Page 19 of 20
Kyle Lancaster
From:
Sent:
To:
Cc:
Subject:
Mr. Lancaster
Diane Nygaard <dnygaard3@gmail.com>
Monday, August 30, 2021 8:35 AM
Kyle Lancaster
Howard Krausz
NCA Position on Acquisition of Rancho Milagro
The Board of North County Advocates has voted to not support the use of General Funds for acquisition of Rancho
Milagro .
The majority of this land will be preserved, whether there is development on portions of the land or not. Extensive
effort was spent to minimize the impacts of this proposed development. Generally we prefer conservation to
development. However, in this case, there will be extensive conservation, there are other higher priority lands that
have still not been adequately protected, and there has been no leveraging of taxpayer dollars that would result in more
land being conserved overall. "
Feel free to call me if you would like to discuss this further.
Diane Nygaard
On Behalf of North County Advocates
CAUTION: Do not open attachments or click on links unless ou reco nize the sender and know the content i
safe.
1 Sept 21, 2021 Item #10 Page 20 of 20
PURCHASE OF REAL PROPERTY
KNOWN AS RANCHO MILAGRO
Kyle Lancaster, Parks & Recreation Director
Parks & Recreation Department
Sept. 21, 2021
C cityof
Carlsbad
TODAY’S PRESENTATION
•Background
•Lawsuit settlement agreement
•Property status and characteristics
•Staff open space (OS) committee
•Housing law compliance
•North County Advocates’ (NCA) position
•Prior open space reviewed by the city
•Fiscal analysis and next steps
ITEM 10: RANCHO MILAGRO PURCHASE
('city of
Carlsbad
RECOMMENDED ACTION
Adopt a resolution identifying the city’s Real Estate Manager as the city’s
negotiator responsible for working with the representative for Rancho Milagro
LLC toward the purchase of real property commonly known as the Rancho
Milagro property (APN 209-060-61) and directing staff to schedule a future
City Council closed session item to provide direction and grant authority to its
negotiator regarding the price and terms of payment for the purchase
ITEM 10: RANCHO MILAGRO PURCHASE
('city of
Carlsbad
BACKGROUND
•1982: Prop H limited ability to purchase property
•2002: Prop C allowed for purchases of natural OS
•2005: Council created a citizens’ OS Committee
•2007: Council accepted the Committee’s rankings
ITEM 10: RANCHO MILAGRO PURCHASE
('city of
Carlsbad
BACKGROUND
•2007: Council directed expansion of the rankings
Included the Sunny Creek area (11 properties)
Rancho Milagro property is a part of that area
Committee ranked Sunny Creek area No. 4 of 16 sites
•2008: Council limited property pursuit -willing sellers
ITEM 10: RANCHO MILAGRO PURCHASE
('city of
Carlsbad
SETTLEMENT AGREEMENT
•2017: Council approved settlement agreement -NCA
Re. General Plan Update/Climate Action Plan Lawsuit
City to continue to evaluate properties for acquisition
Section 4.13 details the requirements related to OS
ITEM 10: RANCHO MILAGRO PURCHASE
('city of
Carlsbad
PROPERTY OFFERED/APPRAISED
•June 2021: Subject property was offered to the city
It was not listed then, nor now, on the open market
•City has completed an appraisal of the property
ITEM 10: RANCHO MILAGRO PURCHASE
('city of
Carlsbad
STAFF OPEN SPACE COMMITTEE
•Comprised of nine interdepartmental city staff
•Meets four times per yr. to review OS opportunities
•Reviewed Rancho Milagro property for acquisition
ITEM 10: RANCHO MILAGRO PURCHASE
('city of
Carlsbad
PROPERTY CHARACTERISTICS
•43.58 acres, located in Sunny Creek Specific Plan area
13.58 acres of developable land -single family res.
30 acres of designated OS land
•Tentative map approved by city until Feb. 15, 2022
No further extensions available on the tentative map
ITEM 10: RANCHO MILAGRO PURCHASE
('city of
Carlsbad
PROPERTY CHARACTERISTICS
•Identified in HMP as proposed hardline area
•Contains conceptual alignment for Trail Segment 9D
•Contains varied topography, providing views
•Possible source of wetland and upland mitigation
ITEM 10: RANCHO MILAGRO PURCHASE
('city of
Carlsbad
STAFF COMMITTEE REVIEW
•Considered the Sunny Creek area rank as No. 4 of 16
•Willing seller, consistent with 2008 Council action
•Would result in net increase of 13.58 acres -31% OS
•Acquisition is consistent with settlement agreement
ITEM 10: RANCHO MILAGRO PURCHASE
('city of
Carlsbad
HOUSING LAW COMPLIANCE
•State law would require changes to planning docs
General Plan and Zoning amendments necessary
Changing the designations of the 13.58 acres to OS
SB166 and SB330 can and will be satisfied
Concurrent with the adoption of the amendments
ITEM 10: RANCHO MILAGRO PURCHASE
('city of
Carlsbad
NORTH COUNTY ADVOCATES
•Aug. 18, 2021: Committee staff met with NCA reps
NCA did not support acquisition with General Funds
Majority of land will be preserved with development
Other higher priority lands not adequately protected
No leveraging of taxpayer dollars for the conservation
ITEM 10: RANCHO MILAGRO PURCHASE
('city of
Carlsbad
PRIOR OPEN SPACE REVIEWED
•Paseo Del Norte Property -purchased by city
•Aura Circle Property -purchased by city
•Lubliner Property –Council authorized negotiations
NCA supported the acquisition of these properties
ITEM 10: RANCHO MILAGRO PURCHASE
('city of
Carlsbad
CITY COUNCIL AUTHORITY
California Government Code Section 54956.8
•Provides legislative body may hold a closed session
With its negotiator prior to the purchase of property
•Prior to a closed session, an open session shall be held
Identify city negotiator, property and owner’s negotiator
ITEM 10: RANCHO MILAGRO PURCHASE
('city of
Carlsbad
OPEN SPACE -TRAIL ACQUISITION PROJECT
Total appropriation – General Capital Construction Fund $4,015,000
Current expenditures and encumbrances $2,202,059
TOTAL FUNDING AVAILABLE $1,812,941
ITEM 10: RANCHO MILAGRO PURCHASE
('city of
Carlsbad
FISCAL ANALYSIS/NEXT STEPS
•No direct fiscal impact resulting from today’s action
•Staff to schedule a closed session for price and terms
ITEM 10: RANCHO MILAGRO PURCHASE
('city of
Carlsbad
RECOMMENDED ACTION
Adopt a resolution identifying the city’s Real Estate Manager as the city’s
negotiator responsible for working with the representative for Rancho Milagro
LLC toward the purchase of real property commonly known as the Rancho
Milagro property (APN 209-060-61) and directing staff to schedule a future
City Council closed session item to provide direction and grant authority to its
negotiator regarding the price and terms of payment for the purchase
ITEM 10: RANCHO MILAGRO PURCHASE
('city of
Carlsbad
QUESTIONS/COMMENTS
ITEM 10: RANCHO MILAGRO PURCHASE
('city of
Carlsbad