HomeMy Public PortalAbout19800603 - Agendas Packet - Board of Directors (BOD) - 80-12 Meeting 80-12
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
375 Distel Circle, Suite D-1
Los Altos, California 94022
(415) 965-4717
Special Meeting
Board of Directors
A G E N D A
June 3, 1980 7 : 30 P.M.
(7 :30) ROLL CALL
EXECUTIVE SESSION
(8: 00) 1. Possible Acquisition of Westbay Associates
Property - H. Grench
Resolution of the Board of Directors of the
Midpeninsula Regional Open Space District
Authorizing Acceptance of Assignment of Option
Agreement, and Authorizing General Manager to
Pay Funds Necessary to Extend Same. (Baylands
Park/Westbay Associates Property)
(9: 00) ADJOURNMENT
R-80-26
(Meeting 80-12
6/3/80
Agenda Item #1)
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
REPORT
June 3, 1980
TO: Board of Directors
FROM: H. Grench, General Manager
SUBJECT: Possible Acquisition of Westbay Parcels Adjacent to
Cooley Landing
Discussion: Attached are memoranda from the Land Acquisition
Manager and Land Manager regarding acquisition and management
considerations pertaining to the possible acquisition of Westbay
Associate parcels adjacent to Cooley Landing.
Recommendation: Although it is a close question in my mind, on
balance I recommend that you do not proceed with the acquisition
of these parcels for the following reasons:
(1) The District is not in the marina business; such activities
are within the province of San Mateo County or the San Mateo
County Harbor District. The staff time and effort involved
in dealing with this situation may seriously detract from
priority activities, even if the District is not doing a
marina development.
(2) The price may be too high, although admittedly appraisal esti-
mates of this kind of property are difficult to make.
(3) Although it could work out beautifully, and you may be
willing to take the risk based upon the assurances that you have,
the District has no firm assurance that purchase of this property
will lead to purchase of the important Leslie/Cargill parcel
at $300,000, especially in a reasonably short period of time.
On the other hand, if another party or agency steps in on the
marina project, the District may not have to exercise the
Westbay option for an additional $80,000 and the Leslie/Cargill
parcel should still be available at that price. If, however,
you decide to extend the option (tantamount to deciding to
acquire the property) , the appropriate documents are being
prepared for execution. I would suggest, furthermore, that
you make payment of the $50,000 contingent upon the following:
(1) That you are going ahead with the full expectation and
under the assumption that the Leslie/Cargill parcel will
be offered to the District without undue delay for $300 ,000.
R-80-26 Page Two
(2) That the East Palo Alto Municipal Council pass a
resolution giving firm assurance that they in no way
expect the District to be involved in a marina project.
(3) That if and when a marina is to be developed privately
or by another governmental agency, that the parcels
be sold at the District' s purchase price plus any
increase in the consumer price index or plus lost
interest to the District, whichever is greater. Such
price could be adjusted by the value of any interest
the Board wished to retain.
''F80-43
(Abeting 80-12
6/3/80
Agenda Item #1)
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
375 Distel Circle, Suite D-1
Los Altos, California 94022
(415) 965-4717
TO: H. Grench, General Manager
FROM: C. Britton, Land Acquisition Manager
RE: Cooley Landing - Lands of Westbay Associates
I have completed a review of the option agreement, title report and
acquisition aspects of a proposed purchase of the subject parcels by the
District. The subject parcels are located directly north and south of
the Cooley landing peninsula and would be key to the ultimate development
of Cooley Landing, including a marina. These parcels do not have deep
water access, but would be required as a part of any development because
of their proximity and the additional area (some 40 acres in total) .
The 150 acre Leslie Salt Property to the west of Cooley Landing is
the key area for the District's Land and Water Acquisition Grant. It has
been the continual position of Leslie Salt that this property is only
available on a bargain basis at a price of $300,000.00 for the "Economic
and Social" well-being of East Palo Alto. The only viable economic use
of this entire area (at this time) is marina development. In order to
keep the marina project alive, and secure the Leslie ownership at the
bargain price offered, the purchase of the Westbay parcels may be critical.
If this is to be done, the Westbay parcels should be acquired prior to the
lapse of the current option (6/6/80) .
The Westbay parcels, totaling approximately 40 acres (25 acres to the
north, and 15 to the south) , include about 7.5 to 9 acres of land that is
high and dry. The balance of the property is bay mud and bay surface. The
current option price for these two parcels is $130,000. These parcels,
viewed separately, are landlocked and probably incapable of independent
development. From a valuation standpoint, the high and dry portion of the
property could vary from $12,500.00 to $20,000.00 per acre, depending upon
access and relationship to adjoining parcels. The remaining areas, subject
to tidal action and various public easements, would be valued at between
$100 to $200 per acre. Accordingly, the range of value for the entire
property is $97,000 to $190,000.
A field inspection reveals that there is substantial encroachment by
the adjoining owner. A check of assessor's and tax collector's records
indicates that Westbay Associates has been paying their taxes on a regular
basis; therefore, the possibility of adverse rights seems doubtful. The
property lines are clearly defined and the removal of encroaching material
could be required, or the District could enter into a ground lease with the
adjoining owner.
The final aspect of such an acquisition would be the application of
land and water funds. Because of the indirect acquisition methods associated
(Cooley Landing) -2-
with assuming the option, it would be difficult to obtain the necessary
state approvals. Also, because of lack of access and the public easements,
it is quite possible that an appraisal would not come up to the required
$130,000 purchase price. Only the northerly parcel (25 acres) was identi-
fied on the Grant Acquisition Schedule, as it was felt this parcel might be
a part of a Bay-Front Trails System. This decision was based on the pren-Lis
that the northerly parcel contained a portion of the outboard dike adjacent
to the Leslie property. Actually, further investigation indicates that this
parcel does not contain any portion of the levy, and would not be suitable
for trail construction. This does not man that it could not be included
in the land and water project, but it might prove to be very difficult to
justify. Because of the land and water restrictions on use, it might be
better not to use this source of funds anyway!
I feel that these parcels represent the key to the entire project in
this area, including the bargain purchase of the Leslie Salt property. It's
unfortunate that this project was started at a time of "bard money" and no
private funds were readily available. It is my opinion that the eleventh-
hour purchase of these parcels by the District is necessary to assure
completion of the entire recreation and open space project envisioned by
acceptance of the Land and Water Grant.
M-80-42
(Meeting 80-12
6/3/80
Agenda Item #1)
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
MEMORANDUM
June 3, 1980
TO: H. Grench, General Manager
FROM: S. Sessions, Land Manager
SUBJECT: Management Issues for the Proposed Westbay Associates
Property
When considering the management implications associated with
acquisition of the Westbay Associates property, staff is concerned
with the following:
1) Access to the Westbay Associates property is limited. One
must cross private property to gain access to either parcel
of the Westbay property. Bay Road is being developed by
phases, with the first phase under construction now. When
completed, vehicle and bike traffic will have improved ingress
routes leading to Cooley Landing. Since the subject property
is isolated, parking becomes a problem without the approval
of adjacent property owners. This access/parking problem
could restrict public use of the property until subsequent
agreements could be resolved.
2) Hazards and possible liability because of broken concrete and
debris that has been dumped on the property could be significant.
If the public should be allowed access and use, then the
existing hazards should be removed as part of acquisition at
a potential cost of $5000 . 00 to bury and/or remove the debris.
3) Use and management of the site would be limited because of
restricted access, existing adjacent property use, and mainte-
nance and patrol problems. Because the property is removed
from the present operations route, the property will have to
be considered separately. I would recommend a) not dedicating
the property, but holding it for possible future development,
such as a marina with associated commercial uses; and b) restricting
public access in the interim (permit only) , if adjacent property
owners will allow limited public access and parking
4) Present indications are that the Bayfront Trail may follow
the Bayshore frontage road alignment through Palo Alto, then
connect with Mountain View Shoreline Park. This alignment
could affect the trail route around Cooley Landing unless a
levee trail is developed. In either case, the Westbay
Associates property is not part of the trail system.
RESOLUTION NO.
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
AUTHORIZING ACCEPTANCE OF ASSIGNMENT OF OPTION
AGREEMENT, AND AUTHORIZING GENERAL MANAGER TO
PAY FUNDS NECESSARY TO EXTEND SAME. (Baylands
Park/Westbay Associates Property)
I
The Board of Directors of the Midpeninsula Regional Open
Space District does resolve as follows:
Section One. The Board of Directors of the Midpeninsula I
Regional Open Space District does hereby accept the assignment
of option as contained in that certain agreement between
Jay Thorwaldson and the Midpeninsula Regional Open Space
District dated June 3, 1980, a copy of which is attached hereto
and by reference made a part hereof, and authorizes the
President and appropriate officers to execute the Agreement
on behalf of the District.
Section Two. The President of the Board of Directors or
other appropriate officer is authorized to expend Fifty
Thousand and no/100 ($50,000. 00) Dollars to extend the option
period until Noon, P.S.T. , November 20, 1980.
I
Section Three. The General Manager of the District shall
cause to be given appropriate notice of said assignment and
extension of option to the optionor. The General Manager
further is authorized to execute any and all other documents
necessary or appropriate to the extending of said option.
ASSIGNMENT OF OPTION AGREEMENT
l
AND EXTENSION
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For value received, I, Jay Thorwaldson, hereby
assign all my right, title and interest in and to that
i
certain Option Agreement wherein Westbay Community
Associates, a California general partnership, is Optionor,
and the undersigned, an individual, is Optionee, dated
November 26, 1979, and the Letter of Extension thereof
i
dated May 21, 1980, copies of which are affixed hereto
and by reference made a part hereof, to Midpeninsula
Regional Open Space District, a public district under
the laws of the State of California.
In witness whereof I have executed this
agreement at Los Altos, California, on June 3, 1980.
Jay Thorwaldson
Accepted:
Midpeninsula Regional
Open Space District
President
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i
t.b-S i
r 19th November, 4979
OPTION AGREEMENT
THIS AGREEMENT made and entered into this (,46 day of_ , R
191-M, by and between Westbay Community Associates, a California general
partnership, hereinafter called "OPTIONOR", and Jay Thornwaldson, an
individual, hereinafter called "OPTIONEE".
WITNESSETI3:
1. In consideration of the sum of $3,000.00 paid by OPTIONEE, receipt
of which is acknowledged, OPTIONOR hereby grants to OPTIONEE an exclusive
option to purchase on or before Noon P.D.T. KAy 2 y-kb 19
those certain tracts of land designated as Parcels E-3 and E-4 in the Record of
Survey, Exhibit "A" of Settlement Agreement Embodied In Judgement Entered
in Case of: State vs San Mateo County, et al, San Mateo County Superior Court,
Action No. 144,257 as recorded July 28, 1977 in Book 8 at Page 85 of Licensed
Land Surveyors Maps; containing 40.734 acres, more or less and shown as
Exhibit "A" attached hereto.
If the option is not exercised by OPTIONEE on or before the termination
date of this option, then all option monies shall be retained by OPTIONOR as
liquidated damages.
2. The purchase price shall be $130,000.00 cash payable as follows:
$3,000.00 by certified or cashiers check upon the execution and delivery of
this Option, which amount OPTIONOR agrees to apply on the purchase price
if OPTIONEE elects to exercise the option; and the balance shall be. paid in
cash or certified funds at closing.
3. Title shall be conveyed by Quit Claim Deed.
4. Real property taxes for the property interest conveyed hereunder
for the current year shall be prorated as of the date of closing.
5. OPTIONEE shall be entitled to possession at the time of closing.
This sale shall be closed within 45 days after the option is exercised.
6. This option shall be exercised by the giving of a written notice
of intent to exercise the same, and said notice may either be served person-
ally on OPTIONOR by delivering it to R. J. Swenson, or the notice may be
~ mailed to OPTIONOR by certified mail with postage prepaid, deposited in
the United States mail on or before BA,,v- 2g{{. 19AC addressed to:
WESTBAY COMMUNITY ASSOCIATES
c/o Ideal Basic Industries, Inc.
P.U. Box 8789
Denver, Colorado 80201
Attention: Mr. R. J. Swenson
I
7. The parties represent unto each other that no real estate broker
is entitled to claim a commission for this transaction. If a commission is
claimed against OPTIONOR as a result of acts or actions of OPTIONEE, then
OPTIONEE shall indemnify OPTIONOR from any and all damages resulting
from same, including reasonable attorney's fees and the cost of litigation,
and will completely save the OPTIONOR harmess from such claim.
OPTIONOR:
WESTBAY COMMUNITY ASSOCIATES
a General Partnership
I ' By: KEVALAND CORPORATION
General Partner
By: �--
. T.-Nellig , Vice President
OPTIONEE:
JAY TH014WALDSON
an Individual��
Jay Thornwaldson
I
I
I
I
Ideal Basic Industries
Ideal Plaza-950 17th Street
P.O. Box 8789
Denver, Colorado 80201
303 623 5661
May 21, 1980
Mr. Jay Thorwaldson
244 Robin Way
Menlo Park, CA 94025
Dear Mr. Thorwaldson:
This letter is to advise you that Westbay Community Associates hereby
agrees to amend that certain Option Agreement dated November 26, 1979,
between Westbay Community Associates and yourself as follows:
1. For no additional consideration other than the $3,000.00.
previously paid, the Option expiration date shall be ex-
tended from Noon, P.D.T. , May 24, 1980 until Noon,
P.D.T. , June 6, 19 80, at which time you as OPTIONEE
may elect either to:
a. Exercise the Option as outlined in the November 26,
1979 OPTION AGREEMENT, or,
b Deliver
on or before Noon PDT. June 6 1980
to Westbay Community Associates, c/o Ideal Basic
Industries, Inc. , P. O. Box 8789, Denver, Colorado
80201, Attention: Mr. R. J. Swenson; by certified
or cashiers check the amount of $50,000.00 to extend
O period until Noon P.S.T. November 20
the Option ,
P P
1980. This amount ($50,000.00) , Westbay Community
Associates (OPTIONOR) agrees to apply to the pur-
chase price if OPTIONEE elects to exercise the option;
and the balance shall be paid in cash or certified
funds at closing. If the OPTION is not exercised by
OPTIONEE prior to Noon, P.S.T. , November 20,
1980, this OPTION shall terminate and all previously
paid Option fees shall be retained by OPTIONOR as
Liquidated Damages.
c. All other terms and conditions of the original
November 26, 1979 OPTION AGREEMENT shall remain
the same.
May 21, 1980
Mr. Jay Thorwaldson
Page 2
If you are in agreement, please sign where indicated and return the
original. The duplicate is to be retained for your files.
Sincerely,
Thomas F. Weydert
Property Development Agent
TFW: me
OPTIONOR:
WESTBAY COMMUNITY ASSOCIATES
a General Partnership
BY: KEVALAND CORPORATION
General Partner
'�'
Michael T. Nelligan, Vice esident
OPTIONEE:
JAY IORWAL O
an In 'vidt
BY:
ay Thorwaldson