COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager's Office

 

DATE:

June 17, 2003

BOARD MEETING DATE:

June 24, 2003

 

TO:

Honorable Board of Supervisors

FROM:

Paul T. Scannell, Assistant County Manager

SUBJECT:

Resolution authorizing and directing the County Manager to execute a Grant Agreement with the State Coastal Conservancy for a $1,500,000 grant as a portion of the funds required for the acquisition of the Western Parcel of the Mirada Surf Property, and a related Grant Agreement for a $100,000 grant for the cost to design a segment of the Coastal Trail through Mirada Surf.

 

Recommendation
Adopt a Resolution authorizing and directing the County Manager or his designee to execute the Grant Agreements with the State Coastal Conservancy to provide partial funding for the acquisition of the westerly portion of the Mirada Surf property, and for the cost to design a segment of the Coastal Trail through the Property. Further authorize the County Manager or designee, on behalf of the County, to execute any agreements, escrow instructions, documents or notices in connection with said Grant Agreements that are necessary to implement the intent of the resolution including, but not limited to, the Irrevocable Offer to Dedicate Title in Fee as set forth in the Conditions Precedent To Acquisition And Distribution as set forth in the Grant Agreements.

 

Background
In January 2001, the County acquired the Eastern Parcel of the Mirada Surf property (Assessor's Parcel Number 047-330-010). The Purchase and Sale Agreement included an option to purchase the Western Parcel of the property (APN 047-331-010) at the agreed upon price of $3,000,000, provided the transaction is completed by July 30, 2003.

 

During the time afforded by the option, the San Mateo County Parks Foundation has taken responsibility for raising money through grants and donations to fund the purchase of the Western Parcel. In February 2003, the Coastal Conservancy approved a grant for acquisition of the Western Parcel in the amount of $1,500,000, and a separate grant in the amount of $100,000 for the cost to design a segment of the Coastal Trail through Mirada Surf.

 

The County Parks Foundation has raised funds from other sources that, combined with the Coastal Conservancy grant and Proposition 12 funding, brings the total amount currently available for acquisition of the Western Parcel to $2,578,000. Of that amount, $653,000 is Proposition 12 funding to which the County is entitled, and $350,000 is an approved Land and Water Conservation Fund grant to the County that was approved in October 2002. Although these grants have been approved, the funds available under these programs are ordinarily reimbursed after acquisition of the Property has been completed. By the end of 2003, the Foundation anticipates receipt of approximately $100,000 from a combination of currently pending grant requests and donations pledged from private donors and foundations. Fundraising activities of the County Parks Foundation are continuing in the effort to raise the remaining.

 

Discussion

The most notable condition of the Grant Agreement with the Coastal Conservancy requires that the County record an Irrevocable Offer to Dedicate Title in Fee, permanently dedicating both Mirada Surf parcels for open space and habitat conservation, public access and outdoor recreation. The Grant also establishes that the purchase price of the land may not exceed fair market value. The Coastal Conservancy staff reviewed the County's Purchase and Sale Agreement and an updated appraisal of the Western Parcel. By approval of the grant, the Coastal Conservancy acknowledged that the purchase price set forth in the County's option does not exceed fair market value.

 

The $100,000 grant to design a segment of the Coastal Trail through Mirada Surf is conditioned upon acquisition of the property, and includes a requirement to incorporate the guidelines of the Conservancy’s “Standards and Recommendations for Accessway Location and Development” into the planning and design criteria for the Coastal Trail segment of the property. The County Parks Foundation intends to raise funds for the construction of such a segment.

 

Fiscal Impact
According to the County Parks Foundation, the $100,000 grant from the State Coastal Conservancy for design of a segment of the Coastal Trail is sufficient to complete the design. Including the $1.5 million grant from the State Coastal Conservancy for the acquisition of the Western Parcel, the County Parks Foundation has raised $2,578,000 of the $3,000,000 purchase price. On an interim basis, the County will need to fund the balance of the purchase price of $1,425,000, plus any associated closing costs. Immediate reimbursement of $653,000 from Proposition 12 and $350,000 from the Land and Water Conservation Fund is expected. As additional grants and donations are received, the Parks Foundation will reimburse to the County any funds expended for this purpose. It is anticipated that full reimbursement can be completed in Fiscal Year 2003-2004.

cc: Lee Thompson, Deputy County Counsel
Marcia Raines, Director of Environmental Services