RES-9969 Public Acquisition of Real Property Adjacent to La Veta ParkRESOLUTION NO. 9969
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A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE FINDING AND DETERMINING
THAT THE PUBLIC INTEREST, CONVENIENCE
AND NECESSITY REQUIRE THE ACQUISITION
FOR PUBLIC PURPOSES OF A 1.75-ACRE
PARCEL OF REAL PROPERTY FORMING A PORTION
OF AND LOCATED ADJACENT TO LA VETA PARK
IN THE CITY OF ORANGE FROM SUNNY
SLOPE LAND CO., LLC AND APPROVING THE
TERMS AND CONDITIONS AND AUTHORIZING
THE EXECUTION OF A PURCHASE AND
SALE AGREEMENT AND ESCROW
INSTRUCTIONS THEREFOR; AND MAKING CERTAIN
FINDINGS IN CONNECTION
THEREWITH.WHEREAS, the City of Orange (the "City") is a municipal corporation which
exercises governmental functions and powers and is organized and existing under the laws of the State
of California;
and WHEREAS, Section 37350 of the Government Code of the State of
California authorizes a city to purchase, lease, receive, hold, and enjoy real and personal property,
and control and dispose of it for the common benefit;
and WHEREAS, Union Pacific Railroad Company, a Delaware corporation ("
Union Pacific"), is the current owner of that certain real property located in the City of
Orange,County of Orange, State of California, and legally described on Exhibit A attached hereto
and incorporated herein by this reference (the "Property");
and WHEREAS, Union Pacific, as the seller, and Sunny Slope Land Co., LLC, a
California limited liability company ("Sunny Slope"), as the buyer, have entered into a Purchase and
Sale Agreement and Escrow Instructions, whereby Union Pacific has agreed to sell, and
Sunny Slope has agreed to buy, certain real property, including the Property, and the parties
thereto have opened an escrow for the conveyance of that real property;
and I WHEREAS, Sunny Slope desires to sell, and the City desires to purchase, the
Property in accordance with the terms and provisions of an Agreement of Purchase and Sale and
Escrow Instructions (the "Agreement") in the form presented at this meeting;
and WHEREAS, following acquisition thereof, the City Council intends to continue the
use of that portion of the Property presently being used as a part of La Veta Park for park
purposes.At the present time, the City Council has no plans for the use of the balance of the
Property;
WHEREAS, Section 15004 of the regulations prescribed by the Secretary for Resources
of the State of California (the "State CEQA Guidelines") to be followed by all state and local
agencies in California in the implementation of the California Environmental Quality Act
CEQA") provides that compliance with CEQA "should be completed prior to acquisition of a
site for a public project". However, Section 15004 authorizes acquisition of real property
provided that the acquiring agency conditions its future use on CEQA compliance; and
WHEREAS, with respect to that portion of the Property presently being used for park
purposes, this City Council finds and determines that the acquisition of the Property is within a
list of classes of "projects" (as that term is defined in the California Environmental Quality Act)
which have been determined not to have a significant effect on the environment and which,
therefore, have been declared to be exempt from the preparation of environmental documents
under the California Environmental Quality Act ("CEQA"). More specifically, the acquisition
of the Property is categorically exempt from requirements of CEQA under Sections 15325 of
the State CEQA Guidelines because the acquisition of the Property involves, in part, the transfer
of ownership of land in order to preserve the existing natural conditions thereof; i.e., as park
land; and
WHEREAS, with respect to the balance of the Property not presently devoted to park
purposes, the City Council desires to acquire that portion of the Property conditioned upon that
portion of the Property's future use being reviewed in compliance with CEQA; and
WHEREAS, the City Council has duly considered all of the terms and conditions of the
Agreement, in the form presented to it at the meeting at which this matter was considered,
together with any testimony received by the City Council, and believes that the acquisition of the
Property from Sunny Slope is in the best interests of the City and the health, safety, morals and
welfare of its residents, and in accord with the public purposes and provisions of applicable State
and local law requirements.
NOW, THEREFORE, the City Council of the City of Orange resolves, on the basis of
the facts set forth in the agenda report presented to it and any testimony received at the meeting
at which this matter was considered, as follows:
I. The foregoing recitals are true and correct.
2. The purchase and sale of the Property in accordance with the terms and
provisions of the Agreement is not subject to CEQA; provided, however, that the City and the
Agency will comply with CEQA once the future use of that portion of the Property which is not
presently used for park purposes is used, if at all, for uses other than its present uses.
3. The public interest, convenience and necessity require, and the City Council
hereby orders, the acquisition by the City from Sunny Slope for public purposes of the fee
simple estate in and to the Property, subject to easements, covenants, rights and rights-
of-way of record, for the sum of Four Hundred Forty-five Thousand Dollars ($445,000.
00), in cash,through escrow in accordance with the terms and
provisions ofthe Agreement.Reso. No.
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4. The City Council hereby finds and determines that the terms and provisions of
the Agreement between the City and Sunny Slope with respect to the acquisition of the
Property, in substantially the form as submitted by the City Manager, are approved and that the
Mayor is authorized to execute, and the City Clerk to attest, the Agreement on behalf of the
City.
5. The City Manager is hereby authorized and directed to execute on behalf of the
City all documents necessary and appropriate to carry out and implement the Agreement and to
administer the City's obligations, responsibilities and duties to be performed thereunder,
including the acceptance in the name and on behalf of the City of a grant deed conveying to the
City the above-described interest in the Property or the authority to terminate the Agreement
on or before the expiration of the due diligence period if, in the discretion of the City Manager,
the results of the City's investigation of the condition of the Property do not support the
purchase price of the Property or its feasibility or value for current or future uses, or the results of
such investigation are not otherwise satisfactory to
him.6. In the event the City Manager exercises his authority to terminate the
Agreement pursuant to the foregoing paragraph, the City Manager is then authorized and directed
to negotiate with Sunny Slope for the acquisition of the Property for a price that reflects the
fair market value thereof in light of the cost to cure the conditions identified by the results of
the City's investigation of the
Property.ADOPTED this lO'
h day of May,
2005.
Mark
1~
fOrange
ATTEST:c
lJ MaryE.City Clerk
Orange I, MARY E. MURPHY, City Clerk of the City of Orange, California, do hereby
certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City
of Orange at a regular meeting thereof held on the loth day of May, 2005, by the following
vote:I
AYES:
NOES:
ABSENT:
ABSTAIN:COUNCILMEMBERS: Smith, Ambriz, Murphy, Cavecche,
Dumitru COUNCILMEMBERS:
None.COUNCILMEMBERS:
None.COUNCILMEMBERS:
None
Zl MaryE.M ityCler of
Orange Reso. No. 9969 3
EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
PARCEL 3 OF LOT LINE ADJUSTMENT NO. LL 2004-07, IN THE CITY
OF ORANGE, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON
A MAP MARKED EXHIBIT "B" ATTACHED TO CITY OF ORANGE - LOT LINE
ADJUSTMENT LL 2004-07, RECORDED NOVEMBER 2,2004 AS INSTRUMENT
NO.2004000987499 OF OFFICIAL RECORDS IN THE OFFICE OF THE
COUNTY RECORDER OF ORANGE COUNTY,
CALIFORNIA.Reso. No. 9969 4