COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager’s Office

DATE:

July 19, 2011

BOARD MEETING DATE:

August 9, 2011

SPECIAL NOTICE/HEARING:

Publish once per week for 1 week

VOTE REQUIRED:

4/5ths

TO:

Honorable Board of Supervisors

FROM:

Steve Alms, Manager, Real Property Services Division

SUBJECT:

EXECUTIVE SUMMARY: An exchange of real property not required for County use for real property that is required for County use in the City of Half Moon Bay through a three-party agreement between the County, the City of Half Moon Bay and Peninsula Open Space Trust

RECOMMENDATION:

Adopt a Resolution:

A. Declaring certain County-owned unimproved real property in the City of Half Moon Bay as surplus to the needs of the County in order to facilitate the exchange of that property for property of equal value that is required for County use, and

B. Authorizing the County Manager or his designee to execute an Agreement to Exchange Real Property (Agreement) with Peninsula Open Space Trust and the City of Half Moon Bay, and

C. Authorizing the County Manager or his designee to accept or execute on behalf of the County any and all notices, certificates of acceptance, consents, approvals, terminations, deeds, escrow instructions and other documents in connection with the Agreement, and to meet the intent of the Resolution and the Board.

BACKGROUND:

In the 1970’s certain unimproved properties on the coastside and within the incorporated limits of the City of Half Moon Bay (City) were acquired by the County of San Mateo. Many of the parcels were purchased from private property owners for the Mid-coast Beaches Project and others were acquired subsequent to tax-defaults. The resulting coastside property holdings of the County consist of eighty-six unimproved Assessor’s parcels, totaling approximately 20 acres.

The City owns Assessor’s Parcel No. 056-210-360, a 1.1 acre parcel on Arnold Way adjacent to Lesley Gardens, a project of the County’s Housing Authority. The San Mateo County Department of Housing expressed interest in acquiring the City’s site in order to facilitate the expansion of existing senior housing on Arnold Way. The City has agreed to contribute the Arnold Way parcel to the exchange in order to acquire the recreational facility commonly known as Smith Field and owned by Peninsula Open Space Trust (POST). The POST property includes 13.9 acres that comprise Smith Field and approximately 15.35 acres that surround Smith Field on the north and east sides situated on Assessor’s Parcel Nos. 065-011-040 and 065-011-050. POST has agreed to contribute both parcels, which together comprise 29.25 acres, to the exchange in order to acquire the County’s eighty-six parcels.

DISCUSSION:

At the request of the Department of Housing, the Real Property Division has negotiated a three-way exchange that allows the County parcels to be conveyed to POST to facilitate the protection of open space, the POST parcels to be conveyed to the City to allow for continued use for recreational purposes, and the City parcel to be conveyed to the County to facilitate the development of affordable housing.

Real Property Services has reviewed independent appraisals completed on all properties. The Phase I Environmental Site Assessment for the City parcel recommended further evaluation of near-surface soil for pesticides. Department of Housing staff concludes that the adjustment in price is adequate to mitigate identified risk related to pesticides, and is prepared to accept the property “as-is” pursuant to the terms of the Exchange Agreement. Taking into account this adjustment and an adjustment for use restrictions on the POST property, the three properties are deemed to be equivalent in value at approximately $1,200,000.

Transfer of the exchange properties will be completed simultaneously through a single escrow transaction. Title to the Arnold parcel will vest with the County. Transfer from the County to the Housing Authority will require a future action of the Board.

The acquisition and disposition of the property is categorically exempt under the California Environmental Quality Act (CEQA).

A Notice of Intent to Purchase Real Property has been published once in compliance with California law. County Counsel has reviewed and approved the Agreement and the Resolution as to form. The Director of Parks and Director of Housing concur in this recommendation.

Adoption of this resolution contributes to the Shared Vision 2025 of a Livable Community by supporting the protection of open space, optimal use of recreation space and the development of affordable livable communities for use by the citizens of San Mateo County and, in particular, to residents living In the coastal region of the County.

FISCAL IMPACT:

Declaring the property surplus has no fiscal impact. The transaction involves an exchange of property of comparable value. Costs associated with the closing will be split among the parties. The cost for evaluation and processing the transaction will be funded by the Department of Housing. There is no impact to the General Fund.