Item 14 - Conveyance of Real Prop. to the City from Dandeana Corp., a CA Corp (APN #s 316-140-38 and 316-140-39)December 15, 2020, Item #14DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT City of Poway December 15, 2020 Honorable Mayor and Members of the City Councj. A Robert Manis, Director of Development Services f"li Robert Manis, Director of Development Services (858) 668-4602 or bmanis@poway.org CITY COUNCIL Conveyance of Real Property to the City of Poway from Dandeana Corp., a California corporation (APN #s 316-140-38 and 316-140-39) Dandeana Corp., a California corporation (Dandeana), is the owner of two parcels totaling 3.04 acres (APN #s 316-140-38 and 316-140-39) located at the northerly terminus of Dorathea Terrace. The properties are vacant and total 3.04 acres. Dandeana wishes to donate the parcels to the City of Poway to be utilized for open space. Recommended Action: It is recommended that the City Council: (1) Authorize staff to enter into negotiations with Dandeana for the donation of the properties to the City of Poway; (2) Authorize the appropriation of $500 from the Habitat In-Lieu Fee Fund Balance (F2520-89010) to acquire the property; and (3) Authorize the City Manager to execute the Donation Agreement and any other documents needed to complete the acquisition. Discussion: On September 25, 2020, City staff was contacted (via e-mail) by Dandeana regarding a proposal to donate two undeveloped parcels to the City. The parcels are located at the northerly terminus of Dorathea Terrace (Attachments A and 8). Both parcels are irregularly shaped and together they total 3.04 acres. One parcel (APN #316-140-38) is 0.93 acre and is zoned Residential Single Family-7 (RS-7). The second parcel (APN #316-140-39) is 2.11 acres and is zoned Rural Residential-A (RR-A). The parcels are located at the southeast base of Van Dam Peak open space area. The parcels have very limited development potential as both have steep topography and habitat covers much of the area. In 2019, the City acquired four parcels totaling 160 acres adjacent to and north of 1 of 6
December 15, 2020, Item #14these parcels using State and Federal grant funds. The seller of those parcels was also Dandeana. The two parcels being offered for donation provide access to the Van Dam Peak open space. While the City was granted an easement over these parcels for access to the 160 acres, City ownership would provide flexibility for access and maintenance of the open space trails. After completing due diligence research on the parcels, direction was provided by the City Council to pursue the acquisition. A Letter of Intent to Donate was submitted by Dandeana on November 1, 2020 and accepted by the City on November 19, 2020 (Attachment C). The property owner has agreed to pay for an ALTA title insurance policy and to pay all of the escrow fees and transfer taxes. The requested appropriation will pay for any incidental fees customarily paid for by the transferee. Any unused funds will be returned to the Habitat In-Lieu Fee Fund after close of escrow. Environmental Review: This matter is Categorically Exempt from the California Environmental Quality Act (CEQA) as a Class 13 Categorical Exemption, pursuant to Section 15313 of the CEQA Guidelines, in that it involves the acquisition of land for the purposes of wildlife and natural habitat conservation. Fiscal Impact: Approval of this item will result in an appropriation of $500 from the Habitat In-Lieu Fee Fund Balance (F2520-89010) to the Habitat Mitigation In-Lieu Capital Improvement Project (80002523-57300-PRK0010) for payment of incidental fees associated with the acquisition. Public Notification: None. Attachments: A. Zoning/Location Map of Parcels B. GIS Map of Parcels C. Letter of Intent to Donate from Dandeana dated November 1, 2020 Reviewed/ Approved By: Assistant City Manager 2 of 6 Reviewed By: Alan Fenstermacher City Attorney Approved By: City Manager
December 15, 2020, Item #14Subject Properties: 316-140-38 316-140-39 0 90 180 --360 Feet ---RR-CITY OF POWAY Zoning / Location Map Project: Discussion Item I I I I ' \ I I I I I ,.J I \RR-C •, ' \ I I I I I I I # ,~ ,
December 15, 2020, Item #144of6 ATTACHMENT B
December 15, 2020, Item #14DANDEANA CORP. 13428 MAXELL/\ AVE. # 984 MJ\RINA DEL REY, CJ\LIFORNlA 90292 TELEPHONE 424/251-8405 EMJ\IL: Dt\NIE) @DANDEANACORP.COM VIA EMAIL City of Poway Attn: Bob Manis November 1, 2020 Director, Development Services Department Poway City Hall 13325 Civic Center Drive Poway, CA 92064 Re: Letter of Intent to Donate to City of Poway APNs 316-140-38-00 and 316-140-39-00 Poway, CA Dear Mr. Manis: The purpose of this letter is to set forth the terms and conditions on which Dandeana Corp., a California corporation, or affiliate ("Dandeana"), is willing to donate to the City of Poway ("City") the real property referenced above (the "Property"). Non-Binding Provisions This letter, if accepted by the City, will confirm the parties' mutual intent to enter into a definitive donation agreement ("Donation Agreement") with the following material terms and conditions: 5 of 6 1. Property. The Property consists of two parcels of undeveloped land known as Assessor Parcel Numbers 316-140-38-00 and 316-140-39-00 located in the City of Poway, California. 2. Due Diligence. The City's obligation to accept the donation of the Property will be subject to completion of the City's due diligence and approval of the Property, in its discretion, including soils conditions, environmental matters, title exceptions, zoning, use restrictions and other governmental issues, and similar matters, within 15 days after execution of a Donation Agreement (the "Due Diligence Date"). ATTACHMENT C
December 15, 2020, Item #14DANDEANA CORP. November 2, 2020 Page 2 of2 3. Donation Date. The donation of the Property to the City will occur on the earlier of 5 days after the Due Diligence Date or December 30, 2020 (the "Closing Date"). 4. Title Insurance. The City accepting the donation will be contingent upon the City receiving an AL TA title insurance policy insuring City's ownership of the Property, subject to exceptions approved by the City and, a customary survey exception. Dandeana will pay the cost of the AL TA policy. 5. Escrow. Closing Costs and Pro-Rations. The donation transaction will be consummated through an escrow and title to be established at Chicago Title in San Diego, California. Dandeana will pay transfer taxes, the escrow fee, and other closing costs customarily paid by transferor, the City will pay recording charges and other closing costs customarily paid by transferees. The Donation Agreement will provide for customary pro~rations, including rents and real estate taxes and assessments. This letter is not intended to be a contract or a binding agreement for the donation of the Property. This letter is intended only as a statement of the present intentions of the parties. Neither party is obligated to proceed with a donation transaction, and neither party will become obligated unless and until a definitive Donation Agreement has been negotiated and executed by the parties. The parties also anticipate that the Donation Agreement will include other mutually acceptable terms and conditions, and the negotiations between the parties will include proposals for such additional terms and conditions. Each party acknowledges and understands that either party may terminate negotiations at any time, without any liability or obligation to the other party, and each party will hear its owns attorneys' fees and other expenses incurred in connection with the proposed transaction. If the terms and conditions set forth above are acceptable to you, please sign this letter where indicated below, and return the original or a copy to us. We will then ask that the City prepare a draft Donation Agreement for our review. Sincerely, Dandeana Corp., a California corporation By: ~~ Name: Daniel S. Ginzburg Title: President 6 of6 ACCEPTED: Dated: I I/(~ , 2020