TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director
Leslie Hardy, Community and Library Services Director
1. Subject
title
Land lease option and land lease agreements with the County of Orange for OC Riverwalk Project and Rampart St. Park Project respectively and appropriation of $10,000 in Developer Impact Fees - Park for the administration of these agreements.
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2. Summary
The City responded to a Request for Proposal from the Orange County Flood Control District for ground leases along the Santa Ana River Trail on District property. The County bundled two properties together including a property that is integral to the City of Orange’s vision for the OC Riverwalk project. The second property, also along the Santa Ana River, is complementary to other planned open space projects along the river in both Orange and Anaheim and would be intended as a passive park that includes a dog park amenity. The City submitted a proposal for the development of the two properties. The County accepted the proposal and is offering a lease and a lease option agreement for the respective parcels.
3. Recommended Action
recommendation
1. Approve the land lease option and lease with the County of Orange for the OC Riverwalk Project and Rampart St. Park Project respectively; and authorize the Mayor and City Clerk to execute on behalf of the City.
2. Authorize the appropriation of $10,000 from the Developer Impact Fees - Park (510) unreserved fund balance to:
510-7201-84101-267005-40 - Rampart St. Park
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4. Fiscal Impact
The expense for these agreements is $10,000 and will be funded through Developer Impact Fees - Park (510):
510-7201-84101-267005-40 Rampart St. Park
5. Strategic Plan Goals
Goal 3: Enhance Public Communication Strategy and Quality of Life
Goal 5: Improve Infrastructure, Mobility, and Technology
6. Discussion and Background
The City responded to a Request for Proposal (RFP) from the Orange County Flood Control District (County) for ground leases for two properties along the Santa Ana River Trail. These properties are currently undeveloped.
The County issued the RFP last year, which included a property that is critical for the City’s participation in the OC Riverwalk project. The OC Riverwalk is a multi-jurisdictional project that will transform approximately two miles of the Santa Ana River corridor from Orangewood Avenue to approximately Taft Avenue/Ball Road. The project improvements will provide many public benefits including recreation, active transportation, habitat restoration and protection, and water supply augmentation. The City has been an active participant in the OC Riverwalk project including participation in the establishment of a master plan for the project in 2021 and execution of a cooperative agreement for the project with the City of Anaheim in 2023. Specifically, the cornerstone for the City of Orange’s participation in the project is the development of improvements contemplated in the OC Riverwalk Master Plan on property, north of Katella Avenue, directly adjacent to the Stadium Prominade Shopping Center. This property is directly across the Santa Ana River from the Honda Center and the OC Vibe project. This project also has significance for the City’s efforts on economic revitalization for the West Katella Avenue area.
The County also included a second piece of property along the Santa Ana River meant to be taken as a package with the Katella property when considering responses to the RFP. The second piece of property is approximately one acre located along Rampart Street, north of Chapman Avenue, directly adjacent to the North Net Training Center. A conceptual design of the park has been completed and includes a proposed walking path, seating areas, landscape, a dog amenity area, and a water bottle filling station, while preserving the existing mature shade trees (Attachment). The project is estimated to cost approximately $1.5 million and has been identified as a Community Services Capital Improvement Project funded through Fund 510.
The terms of the agreement with the County are framed as a lease option that the City would exercise at the time that the City were ready to commence improvements to the properties. In the case of the Katella Avenue property, staff are still assembling funding to proceed with the project, and staff are not seeking a lease at this time. The City is in the final stages of consideration for approximately $1.5 million to fund design work for the project from the California Coastal Conservancy. Should the City be successful with receiving funding, we anticipate exercising the lease option for the Katella property later this year. The lease option has a 36-month term for exercise of a lease. For the Rampart Street property, staff have identified a project and funding source for a potential park project and as a result will bypass the lease option and move directly to a lease agreement.
The lease agreement for the Rampart Street property is for a term of 30 years. There is no rent for the property, however, the County has asked for a $10,000 administrative fee to process the lease. Staff will request that the County waive the fee. In the meantime, an appropriation for the administrative fee is being requested; however, the fee would only be paid if the waiver process resulted in a delay to the project. If the fee is paid and the fee is later waived, the City would seek reimbursement. The lease also includes language reflecting that the City would be responsible for any improvements on the site, although the County reserves the right to approve the improvements. Additionally, all maintenance of the property would be the City’s responsibility, and the agreement includes standard language for insurance and indemnification of the County.
Should the City Council approve the agreements, the agreements will be forwarded to the County for consideration by the Board of Supervisors and final execution.
7. ATTACHMENTS
• Option agreement with Orange County Flood Control District
• Lease agreement with Orange County Flood Control District
• Rampart St. Park Conceptual Plan