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HomeMy WebLinkAbout01/08/2002, C5 - CONSIDERATION OF A REQUEST FOR ABANDONMENT OF THE DESERET PLACE STREET RIGHT-OF-WAY BETWEEN CASA ST council M.Ain D�I-e-oz j acenaa RCPORt ft.` c s CITY OF SAN LUIS OBISPO FROM: John Mandeville, Community Development DirectorFor 'JA A. Prepared By: Philip Dunsmore, Associate Planner SUBJECT: CONSIDERATION OF A REQUEST FOR ABANDONMENT OF THE DESERET PLACE STREET RIGHT-OF-WAY BETWEEN CASA STREET AND ITS WESTERLY TERMINUS; ABAN45-01, SIERRA VISTA HOSPITAL. CAO RECOMMENDATION 1. Adopt a Resolution of Intention to consider abandonment of the street right-of-way (R/W) and set a public hearing for February 19th, 2002. 2. Accept the proposed payment of $65,000 to the Housing Authority as acceptable compensation for the value of the City-owned property and directing the sale in accordance with the procedures of the City's Property Management Manual. DISCUSSION Rarkgr tend The City received an application for abandonment of the Deseret Place street right-of-way (R/W) between Casa Street and its westerly terminus (see Attachments 1,2 and 3). The applicant, Sierra Vista Hospital, would like to enlarge its property to create additional parking spaces by purchasing the Latter Day Saints church property on the north side of Deseret Place and combining the properties to expand its medical facilities. Their plans are complicated by the fact that Deseret Place separates the two properties and is owned in fee by the City of San Luis Obispo. In order to abandon this public right-of-way, the California Streets and Highways Code (State Law) requires the legislative body review the abandonment for consistency with the General Plan, adopt a "Resolution of Intention" to abandon the R/W and adopt a final "Resolution of Abandonment." In August 2001, the Planning Commission found the proposed abandonment to be consistent with the General Plan because the right-of-way is not needed for present and future public trattsportation/circulation and public utilities (see attachments 5, 6 and 7). The City Council must make a determination on General Plan consistency and consider whether to adopt a "Resolution of Intention," which would set a public hearing to consider the final abandonment. If passed, a final "Resolution of Abandonment" will be adopted and recorded with the County Recorder after payment of appropriate compensation by the applicant for the City property. The City Council reviewed the road abandonment on October 16, 2001 (see Council Agenda Report for additional background, Attachment 4). Since it could not be immediately determined how to resolve compensation for the right of way, the item was continued with direction to explore CS Council Agenda Report ABAN 45-01 (Deseret Place) Page 2 the possibility of contributing funds to the Housing Authority. The project representative discussed alternatives with the Housing Authority and concluded that the value of the R/W property is $65,000. Analysis As the Council can see, the proposed compensation package offered by the applicant's representative (Attachment 8) includes a total payment of$140,000 to the Housing Authority. In addition to the $65,000 for the road right of way, the Housing Authority has "valued" the loss of three dwelling units at the corner of Foothill Blvd and Casa Street that will replaced with expanded hospital operations once a master plan is approved by the City. While the Council can certainly comment on the appropriateness of this second $75,000 mitigation strategy, it is important to note that the issue of lost housing is not before the Council at this time and therefore should not be acted on. The master plan will require a General Plan Amendment and Zoning reclassification for the parcel with the three dwelling units. That process will require hearings before the Planning Commission and City Council after the preparation of the required CEQA analysis. Those hearings will be the appropriate time to discuss the mitigation strategy for the loss of housing. As discussed at your last meeting on this proposal, the Council could require a formal appraisal to set an appropriate value for the property. However, the Council felt that since the City did not have to pay for the property originally (dedicated in fee without compensation), the unusual size and shape of the property would make development as a separate property difficult, and the property will be heavily encumbered with private utility infrastructure, working out an acceptable arrangement with the Housing Authority would be acceptable in lieu of the formal surplus property process. If the City Council finds that a payment of$65,000 to the Housing Authority is appropriate compensation for the right of way, then they should direct staff to ensure proper payment is received prior to recording the final abandonment documents.. CONCURRENCES The Public Works Department supports the proposed abandonment, subject to the public water main and appurtenant structures (in Deseret Place R/W) becoming private facilities and the relocation of any water services and meters to the Casa Street right-of-way. The Utilities Department supports abandoning the public waterline in the R/W because there are no customer services on this line, and it would eliminate maintenance costs to the City. If the abandonment were approved, the waterline would have to be abandoned at the mainline in Casa Street. The Utilities Department also recommends that the two dry-barrel fire hydrants be replaced and relocated, or connected to a private on-site system. The specifics would be worked out with any future development of the property. The R/W abandonment proposal was sent to the local utility companies for their review and comment. The Gas Company does not maintain gas-piping facilities within the abandonment area. Pacific Gas and Electric (PG&E) did not have any comments on the proposed abandonment. cs-a Council Agenda Report — - ABAN 45-01 (Deseret Place) Page 3 PG&E does, however, indicate that any future relocation or under-grounding of pole lines will be at the expense of the requesting party, including land acquisition. Charter Communications did not respond,but will be given another opportunity to comment during the final abandonment process. FISCAL IMPACTS Other than the compensation issue discussed above, there will be no fiscal impacts with abandonment and surplusing the public right-of-way. Any upgrades and relocation of infrastructure would be done at the applicant's expense not the City. There would, however, be a fiscal benefit because the City would not be responsible for the maintenance of a private roadway, utilities or driveway. ALTERNATIVES 1. The Council could find that the right-of-way is needed for present or future public purposes, and decide not to adopt a Resolution of Intention to consider abandonment, without a public hearing. 2. The Council could abandon the right-of-way and determine alternative compensation amounts for the property or sell it at a fair market rate. 3. The Council could continue action on the Resolution of Intention, with specific direction to staff and the affected property owners regarding additional information required. ATTACHMENTS Attachment 1-Vicinity Map Attachment 2-Zoning Map Attachment 3-Map of Abandonment Area Attachment 4- October 16, 2001 Council Agenda Report Attachment 5- Planning Commission Resolution Attachment 6- Draft Minutes of Planning Commission meeting of August 22, 2001 Attachment 7- Planning Commission Staff Report, August 22, 2001 Attachment 8- Memo from RRM Design Group RE: Housing Authority determination. Attachment 9-Draft Resolution "A" - Resolution of Intention to Consider Abandonment �5-3 Rd � �,:■ \ �� � � ' � : 11111= ■111111ZI NEW _■ _��� : .1■ ___ �11111WE — __ �_ NEW — —�nn _ _III C ■� ■11111111111 i■11■ i�l �. �■ '"1��� ■ 111��111 �IIIIIILIIIIIL ��Ir■1�� 1■■11 111111111 -1� _ .11 ■■■■. r�� „=0 � a Ron ffieloo p PM ==ME EE EE = ,����ii�� .111• r �� �� =111, ���� _� .111_ ••�_ ��' /__i ►._ �/ ------- ZONING MAP - �! A nt 2 i � SOC 1 lasso 2 �s 0 0 0" 6 6 0 0 32 -4 6 $ J, 9 2a 0 9� G 0 o 2 A mo, 15 14 82 17 / 36 n 3g � J6 0 1 o� R-4 a / O 2 2� / , DESERET g s s / y 32 ' n 60 a2 \•\ 2i 2J too a c toa 9 nen Sierra Vista Hospital =v i o 75 I N 1 125 2 123 ... .._. ... 127 \ 0 128 N 139 = \ `Q 140 42 �.� S 'U R 148 ME TO USER g locations and number of units J-S iese maps may not.be accurate or city of san Luis oBi spo m status and should be used as a -�'- - g ::❑ �.cc a�.:-: co:ny-......o,..n...:eaosim.o.•.�:cn,:.: J-0-R K trance only. �""' J.frL. IJ-7-R ^ ^„� 20 0 '20 40 60 60 100 Meters CS—� Attachment 3 ' 11 , 1 OOU wm� 1 E:zO Am. Wim• �O m 0m �o azo N> mmy amN �� ss �Avy "y D�100 voce zGzi yj Attachment 4 council M ; ouw; :.�:- .-:--_. AgcnoA nepont 41�Num6� CITY OF SAN LUIS OBISPO FROM: John Mandeville,Community Development Director Prepared By. John Shoals,Associate Planner SUBJECT: CONSIDERATION OF A REQUEST FOR ABANDONMENT OF THE DESERET PLACE STREET RIGHT-OF-WAY BETWEEN CASA STREET AND ITS WESTERLY TERMINUS;ABAN45-01, SIERRA VISTA HOSPITAL. CAO RECOMMENDATION 1. As recommended by the Planning Commission,adopt a Resolution of Intention to consider abandonment of the street right-of-way (R/W) and set a public hearing for December 4, 2001. 2. Find the City-owned property underlying the R/W as surplus property and authorize the Mayor to execute a document quitclaiming the City's rights to the property and transferring it back to the adjacent landowner. DISCUSSION Situation The City has received an application for abandonment of the Deseret Place street right-of-way (R/W) between Casa Street and its westerly terminus (see Attachments 1 and 2). The applicant, Sierra Vista Hospital, would like to enlarge its property to create additional parking spaces by purchasing the Latter Day Saints church property on the north side of Deseret Place and combining the properties to expand its medical facilities. Their plans are complicated by the fact that Deseret Place separates the two properties and is owned in fee by the City of San Luis Obispo. The Hospital is asking the City to abandon the R/W and quitclaim its rights to the land. In order to abandon this public right-of-way,the California Streets and Highways Code(State Law) requires the legislative body review the abandonment for consistency with the General Plan, adopt a "Resolution of Intention"to abandon the R/W and adopt a final "Resolution of Abandonment." In August 2001, the Planning Commission found the proposed abandonment to be consistent with the General Plan because the right-of-way is not needed for present and future public transportation/circulationand public utilities. The City Council must make a determination on General Plan consistency and consider whether to adopt a "Resolution of Intention," which would set a public hearing to consider the final abandonment. If passed, a final "Resolution of Abandonment" will be adopted and recorded with the County Recorder. Generally,when R/W is abandoned,unencumbered fee title is divided equally among the adjacent property owners, subject to title company certification and any necessary easements for utilities C5- Council Agenda Report �..� Attachment 4 ABAN 45-01 (Deseret Place) Page t being obtained. However,the proposed project is not atypical abandonment because the City owns the property underlying the R/W, and would retain fee ownership even if the R/W were relinquished. As such, the applicant would have to acquire the unencumbered property from the City. The applicant's representatives are asking the City to quitclaim its rights to the underlying property and not offer it for sale. They believe the City would unfairly benefit by selling the property that was originally dedicated to the City by the adjacent property owners. Normally,City-owned land must be disposed of in accordance with the procedures set forth in the City's Property Management Manual (PMM). The PMM states: "Right-of-Way that has been purchased in fee will be sold at market value. " However,the PMM does not really address this situation because the City did not purchase the R/W, but acquired it through an offer of dedication with the development of the Hospital and church properties. So, there appears to be some flexibility in deciding if this City- owned property should be sold,exchanged or returned to the adjacent property owners. Staff supports the applicant's request because the City did not purchase the right-of-way and the property should revert back to the adjacent landowners who originally dedicated it to the City. Given the property's size, shape and location, the abandonment will not create a separate lot for development by another agency or individual. This narrow strip of land is surrounded by the applicant's property and would be best developed in conjunction with the Hospital's expansion plans. If the Council decides to abandon the right-of-way, it must decide how the property should be disposed of prior to a final action on the abandonment. Planning Commission Action The City Planning Commission reviewed the R/W abandonment on August 22, 2001. Planning Commission discussion focused on several aspects of the project, including: whether the public R/Ws are needed for present and future circulation needs; continued access to any City or public utility services in the area;the disposition of any abandoned City-owned property resulting from the R/W abandonment; and the applicant's plans for redevelopment of the abandonment area. The Planning Commission voted 6-0-1 (Commr. Cooper was absent) to find the proposed abandonment to be consistent with the City's General Plan and to recommend City Council adoption of a Resolution of Intention to set a public hearing for consideration of the final abandonment. The Planning Commission also voted to recommend that the City Council declare the City-owned property surplus and to direct City staff to dispose of the property consistent with the City Property Management procedures. Attachment 4 is a copy of Planning Commission Resolution. Minutes from the August 22, 2001 hearing are included as Attachment 5. The Planning Commission staff report is included as Attachment 6. CONCURRENCES The Public Works Department supports the proposed abandonment, subject to the public water main and appurtenant structures (in Deseret Place R/W) becoming private facilities and the relocation of any water services and meters to the Casa Street right-of-way. Council Agenda Report Attachment 4 ABAN 45-01 (Deseret Place) Page 3 The Utilities Department supports abandoning the public waterline in the R/W because there are no customer services on this line, and it would eliminate maintenance costs to the City. If the abandonment were approved, the waterline would have to be abandoned at the mainline in Casa Street. The Utilities Department also recommends that the two dry-barrel fire hydrants be replaced and relocated, or connected to a private on-site system. The specifics would be worked out with any future development of the property. The R/W abandonment proposal was sent to the local utility companies for their review and comment. The Gas Company does not maintain gas-piping facilities within the abandonment area. Pacific Gas and Electric (PG&E) did not have any comments on the proposed abandonment. PG&E does,however,indicate that any future relocation or under-grounding of pole lines will be at the expense of the requesting party, including land acquisition. Charter Communications did not respond,but will be given another opportunity to comment during the final abandonment process. FISCAL IMPACTS No fiscal impacts are expected with abandonment of the public right-of-ways. Any upgrades and relocation of infrastructure would be done at the applicant's expense not the City. There would, however, be a fiscal benefit because the City would not be responsible for the maintenance of a private roadway or driveway. ALTERNATIVES 1. The Council could find that the right-of-way is needed for present or future public purposes, and decide not to adopt a Resolution of Intention to consider abandonment, without a public hearing. 2. The Council could abandon the right-of-way and authorize staff to sell the surplus property at fair market rates. 3. The Council could continue action on the Resolution of Intention, with specific direction to staff and the affected property owners regarding additional information required. ATTACHMENTS Attachment 1- Vicinity Map Attachment 2- Zoning Map Attachment 3- Map of Abandonment Area Attachment 4- Planning Commission Resolution Attachment 5- Draft Minutes of Planning Commission meeting of August 22, 2001 Attachment 6- Planning Commission Staff Report of August 22, 2001 Attachment 7- Draft Resolution "A" - Resolution of Intention to Consider Abandonment JShoals/CC/ABAN45-01(Deseret) �s-9 Attachment 5 PLANNING COMMISSION RESOLUTION NO. 5318-01 A RESOLUTION OF THE SAN LUIS OBISPO PLANNING COMMISSION RECOMMENDING CITY COUNCIL APPROVAL OF ABANDONMENT OF THE DESERET PLACE RIGHT-OF-WAY (R/W) AND AUTHORIZATION TO INITIATE PROCEEDINGS FOR THE SALE,OR EXCHANGE OF THE CITY-OWNED PROPERTY UNDERLYING THE RIGHT-OF-WAY; ABAN 45-01 WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on August 22, 2001, for the purpose of considering Application No. ABAN45- 00, which is a request for a General Plan consistency determination for abandonment of a public right-of-way and the future disposition of City-owned property. WHEREAS, said public hearing was for the purpose of formulating and forwarding recommendations to the City Council of the City of San Luis Obispo regarding projects ABAN 45-01; and WHEREAS, notices of said public hearing were made at the time and in the manner required by law; and WHEREAS, the Planning Commission has duly considered all evidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations by staff, presented at said hearing. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of San Luis Obispo as follows: Section 1. Findings. Based upon all the evidence, the Commission makes the following findings: Right-of-Way Abandonment Findings 1. The proposed right-of-way abandonment is consistent with the General plan because it is no longer need for public purposes. 2. The right-of-way abandonment will be benefit the general public by eliminating the City's costs for maintaining pavement and infrastructure within the R/W. 3. The proposed right-of-way abandonment is categorically exempt from environmental review under Section 15301 of the California Environmental Quality Act. C5/� Resolution No. 5318-01 Page 2 Attachment .g' Disposal of Surplus Property Findings 4. That portion of the right-of-way owned by the City of San Luis Obispo, is surplus property and is no longer needed for public purposes, and disposal of said property is consistent with the City's General Plan. 5. The applicant (Sierra Vista Hospital) owns all of the properties surrounding this City- owned property and is the only logical person to deal with in this matter. 6. This City-owned property is not suitable for development of public facilities or affordable housing given its relative small size and irregular shape. 7. Disposition of the surplus property is exempt from the California Environmental Quality Act. Section 2. Action. The Planning Commission does hereby recommend to the City Council, approval of application no. ABAN 45-01, subject to the following conditions. 1. Reservation of easements for existing public utilities shall be required, to the satisfaction of the respective utility companies, along with any revisions to those facilities as a result of re-development. Specific details will be determined during the abandonment process, prior to adoption of a final abandonment resolution by the City Council. 2. A lot line adjustment or lot merger shall occur prior to recordation of a final abandonment resolution to eliminate landlocked parcels to the satisfaction of the Public Works and Community Development Director. If a lot line adjustment or lot merger is not possible, an access easement may be considered to the satisfaction of the Public Works. 3. The public water main in Deseret Place shall become a private main, along with the fire hydrants. An appropriate backflow devise, valves or other necessary appurtenances shall be installed to City and State standards and any water services and meters within the street must be relocated to the Casa Street right of way, to the satisfaction of the Public Works and Utilities Directors. 4. The existing storm drain easement and pipe system between Deseret Place and Stenner Creek shall be quitclaimed by the City and maintained by the property owner. 5. Streetlights within the abandoned street shall be private and the property owner must assume the energy costs by application to PG&E. 6. Existing parking and driveway easement/agreement must be reviewed to determine if any revisions would be necessary as a result of abandonment. (e.g., if a common C,5—/ / 'Resolution No. 5318-01 Attachment 5 Page 3 driveway and/or private utility easements are necessary within the abandoned Deseret Place R/W, etc.) 7. Modifications to existing frontage improvements shall be required along Casa Street. A "street-type" entrance is acceptable if this is to remain as the emergency entrance; otherwise, a driveway ramp or "alley-type" entrance, sidewalk and curb ramps must be installed, to the satisfaction of the Public Works Director. 8. The public waterline within the Deseret Place R/W shall be abandoned at the mainline in Casa Street. 9. Prior to the issuance of a demolition permit the applicant will be required to submit an alternative emergency vehicle access plan to the Fire Department for approval. Fire and ambulance vehicles currently use Deseret Place as the primary access to the hospital emergency room. 10. The existing fire hydrant at the end of Deseret Place shall be relocated to a location as approved by the Fire and Utilities Departments. Section 3. Action. The Planning Commission does hereby recommend to the City Council authorize City staff to initiate proceedings for the sale or exchange of the City-owned property underlying the street right-of-way in accordance with the City's Property Management Procedures Manual. On motion by Commr. Loh, seconded by Commr. Osborne, and on the following roll call vote: AYES: Commrs. Caruso, Osborne, Peterson, Loh, Aiken and Boswell NOES: None REFRAIN: None ABSENT: Commr. Cooper The foregoing resolution was passed and adopted this 22nd day of August, 2001. Ronald Whisenand, Secretary Planning Commission �s�a i - Attachment (o DRAFT SAN LUIS OBISPO PLANNING COMMISSION MINUTES August 22, 2001 CALL TO ORDERIPLEDGE OF ALLEGIANCE: The San Luis Obispo Planning Commission was call to order at 7:15 p.m. on Wednesday, August 22, 2001, in the City Hall Council Chamber, 990 Palm Street, San Luis Obispo, California. ROLL CALL: Present: Commissioners James Caruso, Orval Osborne, Alice Loh, Jim Aiken, Michael Boswell, and Chairman Stephen Peterson. Absent: Commr. Allan Cooper. Staff: Recording Secretary Irene Pierce, Deputy Community Development Director Ron Whisenand, Associate Planner John Shoals, Assistant City Attorney Gilbert Truillijo, Community Development Director John Mandeville. ACCEPTANCE OF THE AGENDA The agenda was accepted as presented. APPROVAL OF THE MINUTES The Minutes of June 13, 2001, were approved as presented. PUBLIC COMMENT ON NON-AGENDA ITEMS There were no public comments made. PUBLIC HEARINGS: 1. Deseret Place. ABAN 45-01; Request to abandon Deseret Place as a public street to allow additional parking for Sierra Vista Hospital; Sierra Vista Applicant Associate Planner John Shoals presented the staff report and recommended abandonment of the Deseret Place right-of-way between Casa Street and its westerly terminus, finding that the right-of-way abandonment is consistent with the general plan, and recommended the Planning Commission find that the city-owned land underlying Cb -13 Attachment the right-of-way is surplus property and recommend to the City Council, authorization of its sale or exchange in accordance with property management procedures. Vice-Chairwoman Loh asked for a clarification on the infrastructure underneath the cul- de-sac. She questioned ownership of water main from Casa Street and the other water main belonging to the Hospital. Associate Planner Shoals stated Public Works is in concurrence with the request provided the utilities within Deseret Place become privately owned, that the water main is abandoned at Casa Street, and that anything within this former right-of-way would be under private ownership and private maintenance. Vice-Chairwoman Loh asked if the same thing would apply to the Fire Department's outlets, and asked if they would be moved closer to Casa Street. Associate Planner Shoals stated that is correct. Commr. Caruso asked what the distance is from Stenner Creek to the end of the cul-de- sac. Commr. Caruso asked how excess City property is disposed of and if this action is acted on at the City Council level. Associate Planner Shoals replied that the City Council would have the decision of whether they direct staff to negotiate with applicant or if they follow the full process as outlined in the staff report. Mr. Hollander replied that they are in full agreement with the conditions as they are written. Commr. Caruso stated he does not like the idea of negotiating with one party to sell property. Chairman Peterson asked about the zoning of the surrounding parcels. There were no further comments or questions and the public comment session was opened. PUBLIC COMMENT: John Knight, R.R.M. Design Group, and representing Sierra Vista Hospital explained that they are in the process of developing thelarger master plan for the property. He stated they will be asking the City Council to abandon the street so they have first right to get the property back. He stated that they will be coming back with a master plan for Commission so they will have an opportunity to review it as a future approval. He asked that Commission support the staff recommendation. John Hollander, Tennant Health Systems, commented that parking, doctor, and office space is at a premium and this will allow them to correct some of the problems that they C-S-)q Attachment tp are experiencing. He stated that they will be coming back to the Commission with a master plan proposal to show more of what this project will do to solve the parking crisis. Vice-Chairwoman Loh asked if they agreed with staffs findings and recommended conditions of approval. Mr. Hollander replied that they are in full agreement with the conditions as they are written. Seeing no further speakers come forward, the public comment session was closed. COMMISSION COMMENT: Vice-Chairwoman Loh moved to recommend the City Council approve abandonment of Deseret Place right-of-way and authorize initiation of proceedings for the sale of the City owned property and the right-of-way, based on findings and subject to conditions. The motion was seconded by Commissioner Osborne. Commr. Aiken asked to amend the motion to allow an additional statement under condition (2) that would allow for the option of providing an access easement to the lot that would not be accessible and it would actually be landlocked. Vice-Chairwoman Loh noted the merger will require approval of the Public Works Director and the Community Development Director. Deputy Development Director Whisenand stated that staff would not have a problem with that being added. He stated that after looking at this property, a lot-line adjustment is probably going to be required. Commr. Osborne stated that he supports that as an alternative. The motion maker and the seconder agreed to amendment from Commissioner Aiken. AYES: Commrs. Loh, Osborne, Boswell, Caruso, Aiken, and Peterson NOES: None. ABESENT: Commissioner Cooper REFFRAIN: None. The motion carried 6-0. NESS ITEM: 2. Cal Poly: ation by Cal Poly representativ culty/staff housing project. Deputy Development Dir nald Whisenand s Cal Poly is a superior agency and is r the jurisdiction of City or County. They ered the City CS-l5 Attachment 7 CITY OF SAN LUIS OBISPO PLANNING COMMISSION STAFF WORT w-> ITEM# 1 BY: John Shoals,Associate Planner MEETING DATE: August 22,2001 cc 1 *Ew FROM:Ron Whisenand,Deputy Community Development Director PfZ FILE NUMBER:ABAN 45-01 PROJECT ADDRESS: No Specific Address SUBJECT: Request for abandonment of the Deseret Place right-of-way between Casa Street and its westerly terminus. SUMMARY RECOMMENDATION: A. Find that the right-of-way abandonment is consistent with the General Plan and recommend that the City Council approve the abandonment with findings and conditions;and . B. Find that the City-owned land underlying the R/W is surplus property and recommend Council authorize its sale or exchange in accordance with Property Management procedures. BACKGROUND Situation The City has received an application for abandonment of the Deseret Place street right-of-way (R/W) between Casa Street and its westerly terminus (see Attachments 1 and 2). The applicant, Sierra Vista Hospital, would like to enlarge its property to create additional parking spaces by purchasing the Latter Day Saints (LDS) church property on the north side of Deseret Place and combining the properties to expand its medical facilities. Their plans are complicated by the fact that Deseret Place separates the two properties and is owned in fee by the City of San Luis Obispo. The Hospital is asking the City to abandon the R/W and quitclaim its rights to the land. The Planning Commission's role is to review the proposed street abandonment for consistency with the City's General Plan and to make a recommendation to the City Council. The Planning Commission should be aware that the California Streets and Highways Code requires a street vacation (R/W abandonment)be done in the interest of the public and not an individual property owner. The Council will consider whether to adopt a"Resolution of Intention,"which would set a public hearing to consider the matter of final abandonment. If passed, a final "Resolution of Abandonment"will be adopted and recorded with the County Recorder. The Commission is also being asked to make a General Plan determination on the sale or exchange of the City-owned property underlying the R/W. The sale or disposition of City-owned property must follow the procedures of the City's Property Management Manual, which requires that the property be deemed surplus and offered to the public before a private party can acquire it. The Commission's role is to determine if this land is surplus property, and to recommend to City Council if the City should sell or trade this excess land to the applicant. Council would approve the final sale of the property after the details have been worked out between the applicant and City C 5-/� ABAN 45-01 _ :. Attachment 7 Deseret Place R/W Abandonment Page 2 staff. Final abandonment would not become effective until the property is sold. Public Works will be the lead department in this matter. Data Summary Applicant: RRM Design Group(Sierra Vista Hospital) Property Owners: Sierra Vista Hospital Representative: RRM Design Group Zoning of Adjacent Property: O (Office) General Plan Designation of Adjacent Property: Office Environmental Status: Categorically exempt under Class 1, Existing Facilities (Section 15301. (c)of CEQA Guidelines). Project Action Deadline: Not applicable. Site Description The project site is a paved street with sidewalk,curb and gutter. The total area of abandonment is approximately 18,100 square feet or 0.42 acres (see Attachment 2). The project area is a mix of office and residential uses. Surrounding land uses include: the LDS church, offices and small apartments to the north, larger apartments to the east across Casa Street, a medical office building and Sierra Vista Hospital to the south,and two surface parking lots. Stenner Creek and Santa Rosa Street lie beyond the parking areas. Project Description The proposed project is a General Plan consistency determinationon a requested abandonment of a public right-of-way and the future disposition of City-owned property. EVALUATION In order to abandon the right-of-way, the California Streets and Highways Code requires the Planning Commission to determine whether the abandonment is consistent with the City's General Plan. This means that a determination needs to be made on whether the right-of-way will be needed for present or future public purposes. In addition, continued access to any City or public utility services and improvements needs to be properly preserved. The following paragraphs discuss pertinent issues associated with the request and evaluate whether the public way will be needed for future City purposes: 1. Future Circulation Needs The General Plan Circulation Element designates Deseret Place as a local street that serves a limited number of properties, including Sierra Vista Hospital and the former LDS Church. This short street begins at Casa Street and terminates with a cul-de-sac just before the parking areas and Stenner Creek. According to the General Plan, there are no plans to extend Deseret Place west to connect with Santa Rosa Street. Based on this information,it can be concluded that this right-of- way is not planned for any future roadway improvements. CS � / ABAN 45-01 Attachment 7 Deseret Place R/W Abandonment Page 3 = It should, however, be noted that Deseret Place is the primary access to the hospital emergency room, which is a very important function. While a public street is benefit, a private driveway, maintained by the Hospital, could provide a similar or better access for emergency purposes. To assure that adequate access is available, the Fire Department is requiring the Hospital to submit an alternate emergency vehicle access plan for its approval prior to final abandonment. Deseret Place does not provide direct access to the creek. Therefore, it is not needed for existing or future creek access or maintenance purposes. 2. Public Utilities The Public Works Department supports the proposed abandonment, subject to reservation of necessary easements. If the Council determines that all or a portion of any "excess" right of way should be abandoned, easements must be reserved for public and private utilities to the satisfaction of the City and the respective utility companies. These easements will insure that the affected local utilities retain rights to repair and service their facilities within the area proposed for abandonment. The Utilities Department supports abandoning the public waterline in the R/W because there are no customer services on this line, and it would eliminate maintenance costs to the City. They recommend that the waterline be abandoned at the mainline in Casa Street. The Utilities Department also recommends that the two dry-barrel fire hydrants be replaced and relocated, or connected to a private on-site system. The specifics would be worked out with any future development of the property. The R/W abandonment proposal was sent to the local utility companies for their review and comment. The Gas Company does not maintain gas-piping facilities within the abandonment area. Pacific Gas and Electric (PG&E) did not have any comments on the proposed abandonment. PG&E does,however,indicate that any future relocation or under-grounding of pole lines will be at the expense of the requesting party, including land acquisition. Charter Communications did not respond,but will be given another other opportunity to comment during the abandonment process. Staff finds that the proposed R/W abandonment will not adversely impact existing or future public utilities in the immediate area or in the City as a whole. 3. Disposition of Abandoned Right-of-Way First American Title Insurance Company prepared a preliminary title report(lot book guarantee)to verify ownership of the land underlying the portion of the right-of-way proposed for abandonment. The purpose of this exercise was to determine who would own the land once the rights-of-way are abandoned. Typically,when a street R/W is abandoned,the underlying property reverts back to the adjacent property owners. According to the Lot Book Guarantee documents,the R/W is owned by the City, and needs to be acquired from the City of San Luis Obispo. If the Council decides to C5_�g, ABAN 45-01 - =' Attachment 7 Deseret Place R/W Abandonment Page 4 .._ abandon the right-of-way, it must decide how the property should be disposed of prior to a final action on the abandonment. The applicant has requested that the City quitclaim any rights to the property and transfer title to the adjacent property owners. However,since the City owns this property in fee,any future sale of the property must be in accordance with the City Charter and the California Government Code. Section 906 of the City Charter requires that any sale of City property be by resolution. Government Code Section 65402 requires the Planning Commission to prepare a report concerning consistency with the General Plan. Government Code Section 54222 requires the offer of the property to: the Housing Authority for low-income housing; the Parks and Recreation Department for recreational or open space purposes;the San Luis Coastal School District for school purposes; or any other entity of association desiring to purchase or lease the land for low-'and moderate- income housing opportunities. In staffs opinion,the property underlying the street R/W site is not suitable for housing development or recreational purposes given its location, small size and irregular shape. Because the applicant owns all of the land surrounding this City-owned property, the transfer of the abandoned R/W to the hospital is logical and helps create a more functional site plan. OTHER DEPARTMENT COMMENTS The Public Works Department's comments address: the reservation of easements, lot merger requirements and infrastructure maintenance responsibilities. The Utilities Department's comments address water and wastewater facilities. The Fire Department's comments address emergency vehicle access and fire hydrant requirements. These department's comments have been included as conditions of approval. ALTERNATIVES 1. The Commission may also recommend that the abandonment be denied,based on a finding that a potential City need may exist for the public way in the future,or 2. Continue the request. If the Commission continues action, then specific direction should be given to staff and the applicant regarding further information needed. RECOMMENDATION A. Find that the abandonment of the Deseret Place right-of-way is consistent with the City's General Plan, and recommend that the City Council approve the abandonment, based on the following findings and subject to conditions. Findings 1. The proposed right-of-way abandonment is consistent with the General plan because it is no longer need for public purposes. ABAN 45-01 Attachment 7 Deseret Place R/W Abandonment Page 5 2. The right-of-way abandonment will be benefit the general public by eliminating the City's costs for maintaining pavement and infrastructure within the R/W. 3. The proposed right-of-way abandonment is categorically exempt from environmental review under Section 15301 of the California Environmental Quality Act. Conditions 1. Reservation of easements for existing public utilities shall be required, to the satisfaction of the respective utility companies, along with any revisions to those facilities as a result of re-development. Specific details will be determined during the abandonment process, prior to adoption of a final abandonment resolution by the City Council. 2. A lot line adjustment or lot merger shall occur prior to recordation of a final abandonment resolution to eliminate landlocked parcels. The adjacent contiguous hospital and former church properties must be merged, to the satisfaction of the Public Works Director and Community Development Director. (The medical office parcel is not intended to be affected, unless desired by owners) 3. The public water main in Deseret Place shall become a private main, along with the fire hydrants. An appropriate backflow devise, valves or other necessary appurtenances shall be installed to City and State standards and any water services and meters within the street must be relocated to the Casa Street right of way, to the satisfaction of the Public Works and Utilities Directors. 4. The existing storm drain easement and pipe system between Deseret Place and Stenner Creek shall be quitclaimed by the City and maintained by the property owner. 5. Streetlights within the abandoned street shall be private and the property owner must assume the energy costs by application to PG&E. 6. Existing parking and driveway easement/agreement must be reviewed to determine if any revisions would be necessary as a result of abandonment. (e.g., if a common driveway and/or private utility easements are necessary within the abandoned Deseret Place R/W, etc.) 7. Modifications to existing frontage improvements shall be required along Casa Street. A "street-type" entrance is acceptable if this is to remain as the emergency entrance; otherwise, a driveway ramp or "alley-type" entrance, sidewalk and curb ramps must be installed, to the satisfaction of the Public Works Director. 8. The public waterline within the Deseret Place R/W shall be abandoned at the mainline in Casa Street. GS-9D ABAN 45-01 ' Attachment 7 Deseret Place R/W Abandonment Page 6 9. Prior to the issuance of a demolition permit the applicant will be required to submit an alternative emergency vehicle access plan to the Fire Department for approval. Fire and ambulance vehicles currently use Deseret Place as the primary access to the hospital emergency room. 10. The existing fire hydrant at the end of Deseret Place shall be relocated to a location as approved by the Fire and Utilities Departments. B. Find the City-owned property, underlying the street right-of-way, to be surplus property and recommend that the City Council authorize its sale or exchange at a fair market value as determined by a certified real estate appraiser,based on the following findings: 1. That portion of the right-of-way owned by the City of San Luis Obispo, is surplus property and is no longer needed for public purposes,and disposal of said property is consistent with the City's General Plan. 2. The applicant(Sierra Vista Hospital)owns all of the properties surrounding this City-owned property and is the only logical person to deal with in this matter. 3. This City-owned property is not suitable for development of public facilities or affordable housing given its relative small size and irregular shape. 4. Disposition of the surplus property is exempt from the California Environmental Quality Act. ATTACHMENTS Attachment 1 -Vicinity Map Attachment 2 - Map of Abandonment Area Attachment 3 - Planning Commission Resolution JShoals/PC/ABAN45-0I(Deseret) cs a I DEC-07-01 01:55PM FROW-RRM Design Group 905-543-4609 T-135 P.002/002 F-250 Attachment S RRM DESIGN GROUP Ar6diecture-Planning-Engineering-Surveying- Interiors-Landscape Architecture CREATING ENVIRONMENTS THAT PEOPLE ENJOY MEMORANDUM Date: May 10,2001 To: Ron Whisenand Company: Sierra Vista From: John Knigh(g) Location: ■ San Luis Obispo Office Title: Principal Planner O Oakdale Office Job Name: Sierra Vista Job No. 1400060 Re: Sierra Vista Mitigation Costs Ron, Per my recent conversations with George Moylan, the value of the Mitigation of the Units is $25,000 per unit or$75,000 for the three units. The value of the Deseret Place area is $65,000. This totals$140,000 and is consistent with our agreement with the Housing Authority Board on November 15, 2001. This memorandum is intended to supplement the previous memorandum prepared by George Moylan. Please contact me if you need any additional information. Thanks, John 3701 South FLbvera Street-Son Lois Obispo,CA 93901-Phone:805/5434794-FAX 805/543.4609 131 South Sit= Ave.-Oakdale,CA 95361-rhonc 209/547-1794-FAX 209/847-2511 A C49ftgym-- -�✓.IwMwp�mny.AmMU4.unwx. cmfo7o�Je.ryat gx¢rl6Bls-u%V(.1ttBkder,LA*Z&" C5 as DEC-18-01 01:42PM FROM-RRM Design Group 805-543-4609 T-396 . P.003/004 : F-787_ _- 'rojectName: Attachment 8 NOV 2 7 2001 ,SRM Des,-�Group :'Cqp ra JG'Ee�„5'.^.102 MEMORANDUM s Obispo CA 43401 805.593-1794 November 2b,2001 . ,.:WMMdeM&Lvom TO: john Mandeville, Community Development Director,City of San Luis Obispo FROM: George J.Moylan,Housing Authority of the City of San Luis Obispo "U� SUBJECT: Replacement Housing Fees—Tenet Healthcare Corporation I have been asked to provide you with a narrative as to how we arrived at the$140,000 amount in our agreement with Tenet Healthcare Corporation as approved by the Commissioners of the Housing Authority at their November 151 monthly meeting. To do that I will need to recite some history as to this particular transaction as well as other similar arrangements that we have used in making these types of determinations so please bear with me as I go through those steps. When we established our first non-profit affiliate in the late SO's to build the complex at 4035 poinsettia Street which was the first of two sites to be made available to us in the Edna-Islay we paid slightly over$400,000 to the French brothers, for a site which produced 20 units of tax-credit housimg. Those funds came primarily from a Community Development Block Grant. Thus a logical conclusion was that we could build affordable housing if we were able to acquire land with a value of approximately$20,000 per buildable unit, and if that land could be acquired without cost to us. In the case of our Ironbark development that meant a donation of land from Rob Rossi and his group,in the case of Marvin Garden's that meant a 55 year land lease with the City at$1 a year,and in the case of Brizzolara Street a Section 108/CDBG loan, and in the case of PacificlCarmel and pismo/Buchon CDBG grants_ In a reimbursement for housing by developers of the Marigold Center we calculated the contribution for five units at$20,000 per unit or$100,000. Thus when the City directed Tenet Healthcare Corporation to us for a contribution for the housing units that they had were demolishing on Foothill Blvd for their new facilities we once again revisited the$20,000 per unit amount.However, costs of land have escalated since the Marigold development and based upon our recent purchase of the 2005 Johnson Avenue site we settled on an amount of$25,000 per unit Tenet acquired four units on Foothill but we agreed that just three of those were decent, safe and sanitary and would meet local codes as well as Federal Housing Quality Standards thus we settled on a total contribution of$75,000. DEN 8-01 01:42PM FROId- N Dasisn Group 805-543-4609 T-39fi P.004/004 _F487.,- Attachment 8 That was our agreement until I attended a City Council meeting in I believe October.At that time Tenet and its representatives were asking that the City return Deseret Place to them.My understanding being that the land was originally donated to the City by the previous owners and that as the owners of that property now Tenet felt it had legitimate claim to the land. In fact at the meeting the City Attomey seemed to be supporting that position and indicated the difficulties of assessing any value to the property since it in itself was not suitable for development,i.e. a long narrow piece of property completely surrounded by property already owned by Tenet. My position was that any land in the City of San Luis Obispo,has some intrinsic value and the City somehow should be compensated for any gifting of land back to Tenet since the City had maintained the road for a number of years. Council Member Marx agreed with my position as did the other members of the Council- However,negotiations were left to me with directions to return to the Council with a negotiated agreement. Within a week of that action the Tenet representatives and I met and my calculations were as follows:In acquiring the 2005 Johnson Avenue site we paid approximately $20,00 per square foot for land,there were approximately 18,000 square feet of land in the Deseret site. Thus at full value the land would have a value of$360,000.But given its development problems I concluded that its market value was about 20 cents on the dollar or$72,000.The$75,000 on the buildings and$72,000 on the land totaled$147,000 but I further discounted the met vahie to the$140,000 amount since no appraisal was needed if Tenet would agree to a donation of the$140,000.They did and.that amount was taken to my Commissioners who supported the negotiations.Thus that is the agreement I was directed to bring to the City Council. This is an undeniably lengthy explanation but I wanted to place on the record the reasoning that guided my calculations.They are not exactly scientific,but they are real world numbers governed by past and current experience in developing affordable housing. Attachment 9 RESOLUTION NO. (2002 Series) CITY OF SAN LUIS OBISPO CITY COUNCIL RESOLUTION OF INTENTION TO ABANDON THE DESERET PLACE STREET RIGHT-OF-WAY, BETWEEN CASA STREET AND ITS WESTERLY TERMINUS (ABAN 45-01) WHEREAS, the City of San Luis Obispo Planning Commission conducted a regular public hearing on August 22, 2001, for the purpose of making a General Plan determination and formulating a recommendation to the City Council on a request for abandonment of the Deseret Place R/W between Casa Street and its westerly terminus; WHEREAS, a title report prepared by First American Title Insurance Company shows that the City of San Luis Obispo has fee ownership of land underlying the Deseret Place Street R/W, and the City has received a request to quitclaim its rights to said property; and WHEREAS, the disposition of City-owned property must be done in accordance with the City Charter (Section 906), the California Government Code (Sections 54222 and 65402) and the procedures of the City's Property Management Manual; and WHEREAS, the City Planning Commission found that the proposed right-of-way abandonment was consistent with the City's General Plan and Property Management Manual, and recommended that the City Council approve the abandonment, based on findings and subject to conditions as indicated in Planning Commission Resolution, incorporated herein by reference; WHEREAS, the City Council conducted a regular public hearing on October 16, 2001, for the purpose of setting a date to hear the abandonment of the Deseret Place R/W between Casa Street and its westerly terminus; WHEREAS, the City Council continued the item to a date uncertain, for the purpose of resolving the compensation instrument for the proposed abandonment; BE IT RESOLVED, by the City Council of the City of San Luis Obispo as follows: SECTION 1. Action - Intention to Abandon. It is the intention of the City of San Luis Obispo to abandon the above-referenced public right-of-ways as shown on the map marked Exhibit "A", attached hereto and incorporated herein by reference, pursuant to Section 8300 et.seq. of the State of California Streets and Highways Code, and that the City Council Resolutio..No. (2002 Series) Attachment 9 ABAN45-OI(Deseret Place) abandonment shall be based on the following findings, and subject to the following conditions: Findings: Right-of-Way Abandonment Findings 1. The proposed right-of-way abandonment is consistent with the General plan because it is no longer needed for public purposes. IM 2. A payment of $65,000 to the Housing Authority as compensation for the property is consistent with the City's property Management Manual. 3. The right-of-way abandonment will benefit the general public by eliminating the City's costs for maintaining pavement and infrastructure within the R/W. 4. The proposed right-of-way abandonment is categorically exempt from environmental review under Section 15301 of the California Environmental Quality Act. Disposal of Surplus Property Findings 5. That portion of the right-of-way owned by the City of San Luis Obispo, is surplus property and is no longer needed for public purposes, and disposal of said property is consistent with the City's General Plan. 6. This City-owned property is not suitable for development of public facilities or affordable housing given its relative small size and irregular shape. 7. Disposition of the surplus property is exempt from the California Environmental Quality Act. Conditions: 1. The applicant shall work with the Housing Authority and the City to establish a compensatory value for the right of way. The compensation to consist of $65,000 shall be paid to the Housing Authority prior to recordation of final abandonment resolution. 2. Reservation of easements for existing public utilities shall be required, to the satisfaction of the respective utility companies, along with any revisions to those facilities as a result of re-development. Specific details will be determined during the abandonment process, prior to adoption of a final abandonment resolution by the City Council. City Council Resolutiol..4o. (2002 Series) Attachment 9 ABAN45-01(Deseret Place) 3. A lot line adjustment or lot merger shall occur prior to recordation of a final abandonment resolution to eliminate landlocked parcels to the satisfaction of the Public Works and Community Development Director. If a lot line adjustment or lot merger is not possible, an access easement may be considered to the satisfaction of the Public Works. 4. The public water main in Deseret Place shall become a private main, along with the fire hydrants. An appropriate backflow devise, valves or other necessary appurtenances shall be installed to City and State standards and any water services and meters within the street must be relocated to the Casa Street right of way, to the satisfaction of the Public Works and Utilities Directors. 5. The existing storm drain easement and pipe system between Deseret Place and Stenner Creek shall be quitclaimed by the City and maintained by the property owner. 6. Streetlights within the abandoned street shall be private and the property owner must assume the energy costs by application to PG&E. 7. Existing parking and driveway easement/agreement must be reviewed to determine if any revisions would be necessary as a result of abandonment. (e.g., if a common driveway and/or private utility easements are necessary within the abandoned Deseret Place R/W, etc.) 8. Modifications to existing frontage improvements shall be required along Casa Street. A "street-type" entrance is acceptable if this is to remain as the emergency entrance; otherwise, a driveway ramp or "alley-type" entrance, sidewalk and curb ramps must be installed, to the satisfaction of the Public Works Director. 9. The public waterline within the Deseret Place R/W shall be abandoned at the mainline in Casa Street. 10. Prior to the issuance of a demolition permit the applicant will be required to submit an alternative emergency vehicle access plan to the Fire Department for approval. Fire and ambulance vehicles currently use Deseret Place as the primary access to the hospital emergency room. The existing fire hydrant at the end of Deseret Place shall be relocated to a location as approved by the Fire and Utilities Departments. SECTION 2. Copies of the map showing the particulars of the proposed abandonment are on file in the office of the City Clerk, at 990 Palm Street. � s aj City Council Resolution ..4o. (2002 Series) 1 Attachment 9 ABAN45-O1(Deseret Place) SECTION 3. Tuesday, February 19`h, 2001, at 7:00 p.m. in the Council Chamber of the City Hall, 990 Palm Street, San Luis Obispo, California is the time and place set for hearing all persons interested in or objecting to the proposed abandonment, which time is more than fifteen (15) days from the passage of this resolution. SECTION 4. This resolution, together with the ayes and noes, shall be published once in full at least ten (10) days before the public hearing on the proposed street right-of- way abandonment, in The Tribune, a newspaper published and circulated in this city. SECTION 5. The City Engineer shall post at least three (3) notices of the proposed abandonment in prominent locations near the portion of the street right-of-way to be abandoned at least fourteen (14) days before the date set for the hearing in accordance with Section 8322 of the Streets and Highways Code. SECTION 6. The City Engineer shall notify utility companies affected by the proposed abandonment within ten (10) days after adoption of the Resolution of Intention in accordance with Section 8347 of the Streets and Highways code. Upon motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT:. The foregoing resolution was passed and adopted this 8th day of January 2002. Mayor Allen Settle ATTEST: City Clerk Lee Price APPROVED: 6-)Illm*0- �Iylvtom/y Jeff G orgensen Attachment: Exhibit "A" - Street right-of-way Abandonment Map ' II nm� mA �>u mmN mJ I w CZ NZ �C N O- I co -+ CO OO ,q > D soZa -mz oz >zmrc "> DOO 000 ZO mc(- D Dm mmD aIn( RR 0� N ° ZO N N �ZN m 000 n N � m N MC_ M m 0mZ O0 m�-0 24* D2 >om tiz U)NmZ oma m� �P Z ®�rTl 0 >rZ m m m D= ' O Om •n .�D < C �— m 5�TI� O <Om A m , p -D-1N ` m8O nm -11Zm m 1 Z 00mm D { Z O D o r j Z A >0 A p m m N Z D 0 Z m D N m 0� z 40 � i >v om +1 .. N d0 �Z mOr Z p.. .\.. oD Zm og rr/, ozo OZ> aZc� OZm Npn0 gn�il ynm OJGo (Z MJonN - ..•`. 7C-1�z/'•� F m mr "u r oew w l m m 0 1 >! O I D co z I 0 0 D > O Z A D N Z Z \\x \X\N P. / I % 10 mN N 2 C f m '� c='d>(A o N D O D m i® �� A A 2 r/ r ZO O r r O r 0 '.'<. �D D VI D m Z RI •� `, Z Z Z Z �1 5 DESERET PLACE 1 q ` RRM DESIGN GROUP Sm in.awyo•a.�l. �., ^ ABANDONMENT MAP