HomeMy Public PortalAbout20190425 - Agenda Packet - Board of Directors (BOD) - 19-12
SPECIAL MEETING
BOARD OF DIRECTORS OF THE
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
Los Gatos Adult Recreation Center
208 E Main St.
Los Gatos, CA 95030
Thursday, April 25, 2019
6:00 PM
A G E N D A
6:00 SPECIAL MEETING OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA
REGIONAL OPEN SPACE DISTRICT
ADOPTION OF AGENDA
BOARD BUSINESS
The President will invite public comment on agenda items at the time each item is considered by the
Board of Directors. Each speaker will ordinarily be limited to three minutes. Alternately, you may
comment to the Board by a written communication, which the Board appreciates.
1. Bear Creek Stables Project Options and Cost Estimates (R-19-53)
Staff Contact: Gretchen Laustsen, Planner III, Planning Department
General Manager’s Recommendations:
1. Review and provide input on the project options and associated cost estimates for the Bear
Creek Stables Project.
2. Narrow down the range of project options, identify any new information to research, and
direct the General Manager to return to the Board of Directors with this information for
consideration at a future Board meeting.
ADJOURNMENT
In compliance with the Americans with Disabilities Act, if you need assistance to participate in this meeting,
please contact the District Clerk at (650) 691-1200. Notification 48 hours prior to the meeting will enable the
District to make reasonable arrangements to ensure accessibility to this meeting.
Written materials relating to an item on this Agenda that are considered to be a public record and are distributed
to Board members less than 72 hours prior to the meeting, will be available for public inspection at the District’s
Administrative Office located at 330 Distel Circle, Los Altos, California 94022.
Meeting 19-12
CERTIFICATION OF POSTING OF AGENDA
I, Jennifer Woodworth, District Clerk for the Midpeninsula Regional Open Space District (MROSD), declare that
the foregoing agenda for the special meeting of the MROSD Board of Directors was posted and available for
review on April 19, 2019, at the Administrative Offices of MROSD, 330 Distel Circle, Los Altos California,
94022. The agenda and any additional written materials are also available on the District’s web site at
http://www.openspace.org.
Jennifer Woodworth, MMC
District Clerk/Assistant to the General Manager
Rev. 1/3/18
R-19-53
Meeting 19-12
April 25, 2019
AGENDA ITEM 1
AGENDA ITEM
Bear Creek Stables Project Options and Cost Estimates
GENERAL MANAGER’S RECOMMENDATIONS
1. Review and provide input on the project options and associated cost estimates for the Bear
Creek Stables Project.
2. Narrow down the range of project options, identify any new information to research, and
direct the General Manager to return to the Board of Directors with this information for
consideration at a future Board meeting.
SUMMARY
On January 25, 2017, the Board of Directors (Board) approved the Bear Creek Stables (Stables)
Site Plan, which included conceptual-level cost estimates for Phase I improvements totaling
approximately $4.5M (including $1M for water infrastructure) (R-17-15). In summer 2017,
design and engineering consultants developed two schematic design alternatives with updated
cost estimates that are $3.3M to $4.2M higher than the prior cost estimate. The revised estimates
are significantly higher given the need for extensive site engineering, including retaining walls
and grading work, to address slope instability and improve surface drainage for a new expanded
public program area. Based on expenditures to date, the updated cost estimates, and cost
escalation to 2019 dollars, both design options have a funding deficit of approximately $6
million (2019 dollars).
In light of the significant funding gap, the District revisited an option with Santa Clara County
that focuses on deferred maintenance repairs for the stables and complies with the existing non-
conforming use status of the property. On April 25, 2019, District staff will present these and all
other known options for the Stables site to the Board for review and discussion. The General
Manager requests Board direction on narrowing down the project options for further evaluation.
There are sufficient funds in Fiscal Year (FY) 2018-19 for the Board to consider and select a
final option for Bear Creek Stables. Depending on Board direction at the April 25 meeting, a
final decision may be made as early as fall 2019.
BACKGROUND
On January 25, 2017, the Board approved the Bear Creek Redwoods Preserve Plan (Preserve
Plan) and certified the Environmental Impact Report, including the Stables Site Plan (R-17-01).
The Preserve Plan identifies the following Board-approved goals for the Stables Project:
R-19-53 Page 2
• Protect the site’s natural resources;
• Maximize public benefit by broadening public access and use of the facility; and
• Develop a viable plan that is financially feasible for both a future tenant and the District.
The Preserve Plan identifies a phased implementation for the Stables Site Plan. High priority
Phase I improvements are identified for implementation within the first three years (2017 to
2019) and focus on health, safety, and the environment. Lower priority improvements would be
implemented after 2020 based on availability of funding and staff capacity.
The Board-approved FY2017-18 Action Plan and Budget included funding to initiate design
development of the Phase I Stables improvements, including detailed site assessments to inform
the design plans. In March 2017, the Board awarded a contract to John Northmore Roberts &
Associates to provide design and engineering services, complete construction plans, and provide
permitting and construction administration support for the Stables Improvements Project.
NEW INFORMATION
As part of the detailed site assessment work, the District received new information affecting the
overall Phase I design that significantly increases the original cost estimates.
Site Assessments
Bear Creek Stables is located within the northeastern Preserve zone, off Bear Creek Road
and approximately 0.75-mile west of Highway 17. The approximately 26-acre site is located
on a narrow ridge bounded by the steeply incised Briggs Creek to the south, and an unnamed
seasonal creek to the north. Geotechnical and geological assessments indicate that the Stables
is located within the seismically active San Andreas Fault Zone with fault traces along the
ridge. Extensive historic and more recent landslides are present on the Stables site. There is
also evidence of fill at the outer edges of both the upper and lower flat terraces. In addition,
the topographic survey reveals that the available space in the lower terrace is more limited
than previously anticipated in the original conceptual plan. These assessments identified the
need for extensive site grading, multiple retaining walls to address landslide areas, and
rearrangement of elements to fit an expansion of public facilities within the constrained site.
Cost Estimate Increase
At the time the Board approved the Preserve Plan (January 2017), construction costs for the
Phase I Stables work were estimated at $4.5M (including $1M for the water system to
provide potable water as required by Santa Clara County).
The Board-approved FY2017-18 Budget and Action Plan allocated a combined budget of
$5.93M for the Phase I Stables improvements and associated Stables Water System. This
included $5.15M for the Phase I Stables improvements funded through Measure AA
($3.00M), General Funds ($500K), and grants and external partnerships ($1.65M). The
FY2017-18 Budget and Action Plan allocated an additional budget of $777,300 for the
Stables Water System funded through Measure AA.
Construction cost estimates have increased approximately 204% from what was presented to
the Board in January 2017. The new, revised cost estimates for the Phase I improvements,
including the water system upgrades (now $850,000), range between $9.2M and $9.5M. A
R-19-53 Page 3
significant factor affecting the cost is the amount of site grading and retaining walls, which
alone amount to $2.5M.
Given the significant increase in project costs, the General Manager directed staff to (1) develop
a lower cost option and (2) explore the community fundraising potential for the project.
District staff clarified the County’s Use Permit requirements and obtained information about the
types of repairs allowed under the existing legal non-conforming use that would not trigger new
and costly code requirements. Separately, District staff also assessed the potential for external
and community fundraising partnerships to support the project. The General Manager informed
the Board of this work through FYI memorandums in March 2018 and 2019. Below is a
discussion of the newly obtained information and project considerations.
County of Santa Clara Use Permit Requirements
The Stables is located in unincorporated Santa Clara County and is in the Hillside (HS)
zoning district. Stables operations are not permitted by right on HS-zoned parcels but may be
authorized through a discretionary land use approval with a Use Permit. The current Stables
operation does not have a Use Permit, and the County has documented the Stables as a legal
non-conforming use.
Staff met with County representatives to reconfirm the regulatory requirements. Any increase
in the intensity of use or expansion of public access requires a Use Permit. At minimum, to
implement the original Phase I project, the District would need to obtain a Use Permit,
triggering costly improvements to the driveway, parking, water, and wastewater treatment
systems to address code and fire requirements for commercial facilities.
On December 4, 2018, District staff met with County Planning staff and the Fire Marshal
Office to discuss the type of repair and maintenance work that would be permissible under
the existing legal, non-conforming use. Numerous repairs of existing facilities are allowed
under this option, including maintenance repairs to the driveway and structures,
improvements to comply with the Americans with Disabilities Act (parking, pathways,
restroom), site work to correct surface drainage, restoration of the hillsides, and development
of a potable water system for increased reliability. With this confirmation, staff developed a
lower cost option that focuses on the high priority site repairs and maintenance work for the
Stables (refer to Option 2 on page 5).
Community Fundraising Partnerships
Two individuals/groups associated with the Stables expressed interest in leading fundraising
efforts to financially support the Stables improvements and close the funding gap. Since first
contacting the District, only one group continues to remain in discussions with the District.
The District hired Stewart Woods & Associates (SWA) in early 2019 to confirm the viability
of closing the funding gap through a third party fundraising entity. The fundraising pre-
feasibility assessment conducted by SWA also evaluated whether sufficient capacity and
motivation exists for the District or a partnering entity to implement and sustain a
development campaign for the Stables project (see Attachment 4 for the Executive Summary
of the Fundraising Feasibility Study). SWA contacted twenty-eight people, including four
District Board members, ten District staff, three representatives from partner organizations,
six stakeholders, and five others with fundraising knowledgeable for similar ventures.
R-19-53 Page 4
SWA determined that such a fundraising effort could be successful under certain conditions;
however, the exact amount that may ultimately be raised is not known. If the Board pursues
moving forward with a fundraising effort, the following factors must be considered:
• A third-party group, such as Friends of Bear Creek Stables (FBCS) with the
assistance of Development Counsel, should lead the effort. Development Counsel are
consultants who would help plan and implement a fundraising campaign. If the Board
considers implementing a fundraising effort, SWA recommends the District form a
collaboration through a working group with FBCS to finalize the site plan and
organize and implement the fundraising;
• Fundraising could take between 3-7 years, which includes a year to organize the
effort before commencing with fundraising;
• The District would need to pay the fundraising costs, including the costs of
Development Counsel and communications, which will likely be between 5-15% of
the fundraising total;
• This type of fundraising effort would require a substantial shift in how the District
communicates and engages with partners and would require that the District prioritize
the voice of donors who may expect to see certain features or programming at the
site;
• Donors often seek to ensure the longevity of their investment, and therefore,
fundraising should include an additional endowment fund for maintenance, which
would increase the total required fundraising amount;
• The fundraising effort and Bear Creek Stables project would need to be of high
priority for the District, relying on significant board and staff time; and
• Broad options for public programming would be key to a successful fundraising
effort.
In addition to the considerations mentioned above, the District would ultimately need to raise a
significantly larger amount beyond the current funding gap to include Development Counsel
fees, construction cost escalation, and a maintenance endowment. The table below shows a
potential fundraising scenario.
Funds to be raised for Phase I $5,000,000
Estimated Development Counsel Cost (5-15%) $250,000 - $750,000
Escalation 3-7 years @ 6%/yr $1,710,000 - $3,990,000
Maintenance Endowment $1,000,000
Total Fundraising Requirement $7,960,000 - $10,740,000
PROJECT OPTIONS (Attachment 1, Project Options)
The options presented below present a wide range of possible options for the Stables site. These
options include the original 2017 Phase I schematic design options, one reduced cost/scope
option, and three other options for Board review and discussion. To help move the project
forward in a defined direction, the General Manager requests that the Board consider
narrowing the options to those that merit further consideration, and direct the General
Manager to return to the Board with these options for further consideration. The General
Manager also requests Board feedback on the options that should return, including any additional
analysis desired and/or questions to address. In addition, the Board may choose to direct the
R-19-53 Page 5
General Manager to explore a new and different option not listed below. Based on Board
feedback, the General Manager would return with the selected options and new requested
information later this year (as early as fall 2019).
Option 1. Preserve Plan Site Design (Phase I $9.2M - $9.5M, Phase II ~$5M+)
To implement the Board-approved Stables Site Plan, consultants developed two design
alternatives with two phases of improvements (Phases I and II). These alternatives allow for
increased public access and require a Use Permit from the County (Attachment 2, Site Design
Alternatives). The alternatives are largely similar because of the site’s geotechnical and space
constraints.
Phase I under both alternatives includes driveway and parking improvements, a plumbed
restroom, and a potable water system with a connection to San Jose Water Company’s service.
Both options allow for an intensity of use and expanded public access at the site, providing a
public livery stable dedicated for public equestrian programming. A new arena is also included
in the public program area with a new hay barn situated along the upper road to accommodate
expanded public programming facilities. The boarding area remains in its current condition with
the exception of new erosion control and drainage improvements along the northern edge of the
paddocks and the displacement of approximately six existing paddocks to accommodate new
required parking. Both options also include hillside pasture restoration to establish native
vegetation and improve stability. Grading and infrastructure improvements occur throughout the
site to improve drainage. Future Phase II improvements under both alternatives include trailer
parking/storage along the upper road. In addition, new paddocks, an arena, and a restroom are
built in the reconfigured public boarding area, and the barn is improved to accommodate public
use of the building.
Alternative IA (Phase I $9.2M, Phase II ~$5M+)
The first alternative maximizes parking in the public program area. A total of 15 regular and
2 accessible parking spaces are provided in the public program area, requiring approximately
160 linear feet of retaining wall to address a landslide area. In addition, 12 regular parking
spaces are provided in the boarding area. Phase II improvements include a smaller
maintenance building adjacent to the trailer parking and a caretaker residence adjacent to the
barn.
Alternative IB (Phase I $9.5M, Phase II ~ $5M+)
The second alternative reduces the extent of site grading and improvements with fewer
parking spaces in the public area (7 regular and 2 accessible spaces) with the remaining 20
required spaces accommodated in the boarding area. Phase II improvements include a new
larger maintenance building near the driveway entrance and replacement of the caretaker’s
house.
Option 2: Deferred Maintenance Repairs ($4 - $4.4M)
Deferred Maintenance Repairs include repairs to existing structures, replacing the port-a-potty
with a flush restroom, a potable water system with a connection to San Jose Water Company’s
service, ADA-accessible parking and pathways, driveway and drainage repairs, hillside
restoration, a replaced (or repaired) caretaker cottage, and demolition of miscellaneous
dilapidated structures (Attachment 3, Deferred Maintenance Repairs). This work neither requires
a Use Permit nor triggers the associated commercial facility permit conditions. Under the legal
non-conforming use, the County limits the repairs allowed to existing structures within a 12-
R-19-53 Page 6
month period, and repairs could take multiple years to complete. If the caretaker residence is
replaced (versus repaired over time), compliance with permit conditions associated with a new
residential development would be required, including emergency access and fire protection
requirements, and new wastewater and stormwater treatment systems.
Under this option, current equestrian programs, public access, and two permitted equestrian
trailer parking spaces remain status quo. This option allows the Stables to continue operating
under its current legal non-conforming use status. If the Board selects this option for further
consideration, the General Manager recommends soliciting Letters of Interest from prospective
Stables operators prior to expending funds on the development of repair plans to ensure that this
level of site repair is sufficient for the financial sustainability of a future operator.
Option 3: Close Stables and Restore Site ($810K - $1.3M)
Another option is to close the Stables and restore the site. To pursue this option, the District
would need to develop a transition plan to determine the remaining life of the operation and
identify strategies to retain an operator to the longest extent possible until all boarders relocate,
with the expectation that the District may need to take over operations as the number of boarders
decreases.
Restoring the site would include demolition of all or most structures, removal of the water
system and septic tanks, site re-contouring to return natural drainage patterns, and native plant
restoration.
The Preserve Plan proposes a north parking area with equestrian trailer parking in Phase III
(estimated to begin between 2028 and 2037). With this option, the Board may want to consider
reprioritizing the north parking area to expedite its construction to facilitate public equestrian
access to the Preserve.
Option 4: Sell or Lease the Stables Property (no direct cost)
The District purchased the lower 260-acre Preserve property, which includes Bear Creek Stables,
in 1999. In December of 2000, the Board of Directors dedicated the property as public open
space in accordance with Section 5540 of the State Public Resources Code. Once open space is
dedicated, the conveyance or leasing of dedicated lands is restricted and may not be sold without
fulfilling certain procedures set forth in state law, which include either voter consent, a resolution
of the state legislature, or conveyance to another public agency that agrees to use the property for
park or open space purposes. A high level of uncertainty exists in a legislative or election
process. If the site were ultimately sold, there is no guarantee that it would remain in use as a
commercial stable.
The District could enter into a long-term lease with an outside operator for a term of up to 50
years if the Board makes certain findings in approving the lease. However, leasing the site for an
extended period also brings a high level of uncertainty as to the quality of the operation, the level
of maintenance and care provided to the site, and the ability for an operator to finance and
complete the necessary maintenance and repairs for the site.
Option 5: Relocate the Stables ($15.7M - $16.9M)
The Stables is located on a highly constrained site that is seismically and geologically active.
Staff conducted a preliminary analysis of District lands for alternative sites that could be suitable
for an equestrian facility based on an approximately ten-acre area with a maximum slope of eight
R-19-53 Page 7
percent. After eliminating sites with sensitive resources or existing uses, few feasible site
alternatives were identified on current District land. Any future purchases that may be suitable
would require a similar permitting process and associated permit conditions to establish an
equestrian facility. In addition, all new infrastructure would be required. According to a Santa
Clara County Equestrian Stables Feasibility Study, the probable cost for developing a new
facility is approximately $10M in 2009 dollars (not including land costs), and with escalation
could be estimated at $15.7M - $16.9M (not including land costs).
ADDITIONAL PUBLIC PROCESS
If the Board directs the General Manager to analyze new project options, staff would conduct the
necessary research to develop the option(s) and solicit public and stakeholder input prior to
returning to the Board with the information for Board consideration.
FISCAL IMPACT
A cost comparison table for the five options previously discussed is included below.
Bear Creek Stables Improvement Project Options
(2019, $ in Millions) Low Range High Range
Option 1: Preserve Plan Site Design, Phase I Improvements* $9.2 $9.55
Option 2: Deferred Maintenance Repairs* $4.0 $4.4
Option 3: Close Stables and Restore Site $0.81 $1.3
Option 4: Sell or Lease the Stables Property N/A N/A
Option 5: Relocate the Stables $15.7 $16.9
* Includes a potable water system water system with a direct connection to San Jose Water
Company’s service.
The following table outlines the Measure AA Portfolio 21 allocation, costs-to- date, projected
future project expenditures and projected ending balance. Notably, future proposed project
expenditures exclude the Stables Water System and Phase I Improvements project costs.
MAA21 Portfolio Appropriation: $17,478,000
Grant Funding: $1,149,500
Life-to-Date Spent (as of 04/16/2019): ($7,205,359)
Encumbrances: ($1,030,764)
MAA Portfolio 21 funds committed to MAA21-003 & MAA21-004: ($3,713,750)
FY2019-20 Proposed Project Expenditures**: ($2,444,020)
FY2020-21 Proposed Project Expenditures**: (3,590,200)
FY2021-22 Proposed Project Expenditures**: (10,000)
Portfolio Balance Remaining (Proposed): $633,407
less future MAA21-005 BCR Public Access Phase II Undercrossing expenses***: (1,260,000)
Potential Portfolio 21 Funding Gap: ($626,593)
** Excludes MAA21-003 Bear Creek Redwoods Stables Water System and MAA21-004 Bear
Creek Stables Site Plan Implementation project costs.
*** Funding sources undetermined at this time. Project has potential for partner funding.
R-19-53 Page 8
The tables below outline the project expenditures for the following Measure AA projects:
MAA21-003 Bear Creek Redwoods Stables Water System and MAA21-004 Bear Creek Stables
Site Plan Implementation. Future year costs include costs projections from FY2019-20 onwards,
as presented in the adopted FY2018-19 Budget and Action Plan.
MAA21-003 Bear Creek Redwoods
Stables Water System
Prior Year
Actuals
FY2018-19
Adopted/
Amended
Future
Years TOTAL
MAA21-003 Budget: $191,149 $5,648 $940,873 $1,137,670
Spent-to-Date (as of 04/03/2019): ($191,149) ($794) $0 ($191,943)
Budget Remaining (Proposed): $0 $4,854 $940,873 $945,727
MAA21-004 Bear Creek Stables Site
Plan Implementation****
Prior Year
Actuals
FY2018-19
Adopted/
Amended
Future
Years TOTAL
MAA21-004 Budget: $282,075 $140,121 $8,203,884 $8,626,080
Spent-to-Date (as of 04/03/2019): ($282,075) ($1,917) $0 ($283,992)
Budget Remaining (Proposed): $0 $138,204 $8,203,884 $8,342,088
**** Project funding sources include $2,576,080 in Measure AA funds (Fund 30), $500,000 in
General Fund Capital (Fund 40) and $5,550,000 in unsecured other funding (i.e. grants,
fundraising, partnership funding).
BOARD COMMITTEE REVIEW
The Bear Creek Redwoods Preserve Plan involved extensive Committee and Board review. The
Board approved the Bear Creek Stables Site Plan, which is included in the Bear Creek Redwoods
Preserve Plan, on January 25, 2017 (R-17-15). Prior to the Board’s approval of the project, the
Board reviewed the Site Plan alternatives and selected the Preferred Site Plan Alternative on July
6, 2016 (R-16-64).
PUBLIC NOTICE
Public notice was provided as required by the Brown Act. In addition, Bear Creek Stables
interested parties were notified of the public meeting.
CEQA COMPLIANCE
The Bear Creek Redwoods Preserve Plan Environmental Impact Report (EIR) analyzed the
Stable Site Plan. The Board of Directors certified the Final EIR on January 25, 2017. Two
additional project alternatives, the no project alternative and the no special events alternative
were analyzed in the EIR. Board direction to explore new project options may require additional
CEQA analysis prior to a final Board decision.
NEXT STEPS
Based on Board feedback, the General Manager will direct staff to bring back the selected
project options and any additional requested information to the Board, which may occur as early
as fall 2019.
R-19-53 Page 9
Attachments
1. Bear Creek Stables Project Options
2. Bear Creek Stables Design Plans
a. Alternative IA Build-Out
b. Alternative IA Phase I
c. Alternative IB Build-out
d. Alternative IB Phase 1
3. Bear Creek Stable Minimal Repair Option
4. Bear Creek Stables Fundraising Feasibility Study Executive Summary
Responsible Department Head:
Jane Mark, AICP, Planner Manager
Prepared by/Contact person:
Gretchen Laustsen, Planner III, Planning Department
Attachment 1
Bear Creek Stables Project Options
1.
Preserve Plan Site Design
Description Alternative IA Phase I improvements
include:
• Structure demolition
• Road and parking improvements (15+2
ADA spaces in public program area, 12
spaces in boarder area)
• New water system (potable/fire water)
• New public restroom/septic/leach field
• New public livery stable
• New public arena
• New hay barn
• Grading/drainage/restoration
Alternative IB Phase I improvements
include:
• Structure demolition
• Road and parking improvements (7 + 2
ADA spaces in public program area, 20
spaces in the boarder area)
• New water system (potable/fire water)
• New public restroom/septic/leach field
• New public livery stable
• New public arena
• New hay barn
• Grading/drainage/restoration
Considerations
Intensification of use through expanded public access require Santa Clara County Use
Permit. Use Permit commercial conditions include parking, emergency access, and fire
protection requirements. Estimated cost exceeds project budget and MAA funding.
Designed to accommodate increased public programming, which results in greater
revenue potential for tenant.
Cost $9.2 M $9.5M
* Optional Phase II scope costs: $5M +
2.
Deferred Maintenance Repairs
Description • New restroom/septic/leach field
• Driveway improvements
• New water system -connected to restroom/ caretaker
• ADA parking/pathways
• Selective building demo
• Minimal structure repair*
• Replace (or repair*) caretaker cottage
• Minimal grading/drainage/restoration
• Minimal arena improvements
• Maintain/improve 2 permit equestrian parking
Considerations Status quo site uses. Allowed repairs to existing structures are limited within a 12-
month period and could take multiple years to complete.* Public equestrian parking
will be limited to the existing two permitted spaces until the north lot is developed in
Phase III. Replacement of the caretaker cottage will require residential permit
conditions include access, and fire protection requirements. Project costs are
significantly less than those of the Preserve Plan Site Design Alternatives, however
there is still a budget overage of approximately $1M.
Cost $4.0M-$4.4M
3.
Close Stables and Restore Site
Description • Structures demolition
Attachment 1
• Septic tank removal
• Water pipe & tank removal
• Grading to improve drainage
• Site restoration
Considerations A transition plan would need to be developed to consider remaining life of the
operation and strategies to retain tenant. No available equestrian parking until the north
lot is developed in Phase III.
Cost $.81M - $1.3M
4.
Sell or Lease the Stables Property
Description Sell Stables or enter into long-term lease
Considerations • The Board dedicated the stables parcel as open space in 2000. Voter consent or
resolution of the state legislature is needed to convey or sell this area of the
Preserve unless it is conveyed to another public agency for park and open space
purposes. A new parcel distinct from the remaining Bear Creek Redwoods area
would be created pursuant to the County of Santa Clara’s subdivision rules.
• Lease agreements with a term of up to 50 years can be entered into with certain
findings made by the Board.
Cost TBD
Cost would be associated with zoning compliance and potential election or legislative
action.
5.
Relocate the Stables
Description • Identify potential alternative sites
• Prepare feasibility study
• Site planning
• Design and engineering
• Permitting
Considerations A preliminary analysis of other District lands shows few viable sites. These sites would
face a similar permitting process and conditions. Based on escalated costs from the
2009 Santa Clara County Equestrian Stables Feasibility Study, costs could exceed
those of the Preserve Plan Site Designs. No available equestrian parking until the north
lot is developed in Phase III.
Cost $15.7M-$16.9M (Costs do not include land purchase.)
Attachment 2
Attachment 2
Attachment 2
Attachment 2
Attachment 3
Attachment 4
M E M O R A N D U M
To: Board of Directors and Staff, Midpeninsula Regional Open Space District
From: Bob Woods, Principal, Stewart Woods & Associates
Re: Executive Summary of the Development Feasibility Study for Bear Creek Stables
Date: April 18, 2019
Midpeninsula Regional Open Space District (District) hired Stewart Woods & Associates (SWA)
to conduct a development feasibility study to explore two opportunities:
1) Whether the District or a third party has the capacity or the inclination to undertake a
fundraising campaign to rehabilitate the stables; and
2) Determine whether donors are likely to support a fundraising effort for an amount up to
$5 million in support of the stables.
To do this SWA conducted 30 interviews with internal and external stakeholders to examine:
A) The District’s and potential third party organizational capacity and infrastructure to
undertake a campaign as well as the gift capacity of likely prospective donors;
B) The passion that the institutions bring to the project as well as the inclination of likely
prospects to become donors; and
C) The timing of the campaign as well as the metrics and milestones that must met in order
for the campaign to be successful.
SWA found that a fundraising effort of up to $5 million could be successful. However, the
following conditions would need to be in place:
A) The District should not try to raise the money itself, certainly not without Development
Counsel;
B) A third-party group, such as Friends of Bear Creek Stables (FBCS), should lead the effort.
To do this, SWA recommends the District form a collaboration through a working group
with FBCS to finalize the site plan and organize and implement the fundraising;
C) This type of fundraising effort would require a substantial shift in how the District
communicates and engages with partners, and require that the District prioritize the
voice of donors who may expect to see certain features or programming at the site;
D) Fundraising could take between 3-7 years, which includes a year to organize the effort
before commencing with fundraising;
E) The District would need to pay the fundraising costs, including the costs of Development
Counsel and communications, which will likely be between 5-15% of the fundraising
total;
Attachment 4
F) Donors seek to ensure the longevity of their investment, and therefore fundraising
should include an additional endowment fund for maintenance, which would increase
the total required fundraising amount;
G) The fundraising effort and Bear Creek Stables project should become a priority for the
District, relying on significant board and staff time; and
H) Broad options for public programming would be key to a successful fundraising effort.
These enabling conditions for fundraising are likely gating factors when considering whether
the District should undertake the effort, given the timing necessary to raise the funds, the
significant financial investment required from the District, and lack of certainty regarding its
eventual success.