TO: ADAM PIRRIE, CITY MANAGER
FROM: BRAD JOHNSON, COMMUNITY DEVELOPMENT DIRECTOR
DATE: NOVEMBER 12, 2024
Reviewed by:
City Manager: AP
SUBJECT:
Title
APPROVAL OF FINAL PARCEL MAP NO. 84585 SUBDIVIDING A PARCEL (APN: 8307-003-066) TO CREATE TWO PARCELS LOCATED AT 735 EAST FOOTHILL BOULEVARD. APPLICANT - ANDREASEN ENGINEERING, INC. FOR CLARE PROPERTIES, LLC. AND AUTHORIZATION TO ENTER INTO A PURCHASE AND SALE AGREEMENT WITH CLARE PROPERTIES, LLC FOR THE PURCHASE BY THE CITY OF PARCEL 2 RESULTING FROM THE APPROVAL OF FINAL PARCEL MAP NO. 84585 (FUNDING SOURCE: GENERAL FUND)
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SUMMARY
Andreasen Engineering, Inc., on behalf of Clare Properties, LLC, the sub-divider of Parcel Map No. 84585, requests City Council approval of the final parcel map for recordation by the Los Angeles County Recorder’s office. This parcel map will subdivide an existing parcel (APN:8307-003-066) to create two parcels, one new parcel for the existing Armstrong Garden Center business and one new parcel for the remaining vacant land. The subject parcel is approximately 7.9 acres and will be subdivided to have the existing Armstrong Garden Center on a 1.2-acre parcel (Parcel 1) and the remaining vacant land to the east on a 6.7-acre parcel (Parcel 2). The subject parcel currently has a General Plan designation of Commercial and an underlying zoning designation of Commercial Highway (CH).
Pursuant to Sections 66458 and 66474.1 of the Subdivision Map Act, the approval of a final map is a ministerial action and cannot be denied if the final map is in substantial conformance with the conditionally approved tentative map and conforms to the requirements established by the Subdivision Map Act and local ordinance. The City Council is the decision-making body for final maps, and if the map conforms to all requirements, it must approve the map at the meeting at which it receives the map or at its next regular meeting.
Staff finds the final Parcel Map No. 84585 (Attachment B) is consistent with the provisions of the Subdivision Map Act and is in substantial conformance with the tentative map approved by the Planning Commission on October 15, 2024. Attachment A is a draft Resolution approving final Parcel Map No. 84585. The staff report and minute excerpt from the Planning Commission hearing on tentative Parcel Map No. 84585 are included as Attachment C and G.
In addition to City Council approval of Parcel Map No. 84585, staff recommends that the City Council authorize the execution of a Purchase and Sale Agreement (Attachment H) for the purchase of the remaining vacant parcel (Parcel 2) created by the approval of the Parcel Map by the City from the Clare Properties, LLC.
RECOMMENDATION
Recommended Action
Staff recommends the City Council:
A. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLAREMONT, CALIFORNIA, APPROVING FINAL PARCEL MAP NO. 84585 AND APPROVING THE MEMORANDUM OF UNDERSTANDING AND COVENANTS;
B. Authorize the Mayor to execute the Purchase and Sale Agreement with Clare Properties, LLC., for the purchase by the City of Claremont of Parcel 2 resulting from the approval of Final Parcel Map No. 84585;
C. Appropriate $40,000 from the unassigned General Fund balance to fund the purchase of the subject property; and
D. Find this item is exempt from environmental review under the California Environmental Quality Act (CEQA).
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ALTERNATIVES TO RECOMMENDATION
In addition to the staff recommendation, there are the following alternatives:
A. Do not authorize execution of the proposed Purchase and Sale Agreement for the purchase by the City of Claremont of Parcel 2 resulting from the approval of Final Parcel Map No. 84585. If the City Council does not wish to purchase Parcel 2 (or does not wish to purchase Parcel 2 on the terms outlined in the proposed Purchase and Sale Agreement), then the City Council should continue consideration of Final Parcel Map No. 84585 to the November 26, 2024 City Council meeting so the conditions to the final map can be revised (e.g., the Memorandum of Understanding will be replaced with a Subdivision Improvement Agreement).
B. Continue consideration of both the Purchase and Sale Agreement and Final Parcel Map to the November 26, 2024 City Council meeting. This may require applicant consent to extend the “Feasibility Period” for negotiation of the Purchase and Sale Agreement or the City will forfeit a $20,000 deposit that is otherwise due on or before November 22, 2024. With respect to the Final Parcel Map, any additional continuance beyond the November 26, 2024 City Council meeting would require the consent of the applicant.
FINANCIAL REVIEW
The Applicant, Clare Properties, LLC has paid a fee for the processing of the Final Parcel Map.
The Memorandum of Understanding (MOU) outlines further development-related impact fees that will be collected when future development occurs. These development impact fees will include but not be limited to Transportation Impact, Sewer Connection, Drainage, Parkland, and Public Art Fees.
In addition to the costs associated with the processing of the Final Parcel Map, there are costs for preparing the Purchase and Sale Agreement, including City Attorney time, as well as the costs for environmental consultants and title reports. These costs are estimated at $10,000.
The staff cost to prepare this report and process the map review is estimated at $18,488, which is included in the Community Development and Administrative Services Departments’ 2024-25 operating budgets.
ANALYSIS
The intent of this map is to subdivide an existing parcel to separate the existing Armstrong Garden Center business from the vacant land area to the east, with the purpose of selling the resulting parcel.
The proposed parcel map will create two unified parcels, one containing the existing commercial business on Parcel 1 (Armstrong Garden Center) and an undeveloped parcel (Parcel 2) to the east. Parcel 2 is entirely located within Los Angeles County jurisdiction. Parcel 2 does not encroach onto Upland, in San Bernardino County.
The current parcel is approximately 7.9 acres and will be subdivided to have the existing Armstrong Garden Center on a 1.2 acre parcel (Parcel 1) and the remaining vacant land to the east, on a 6.7 acre parcel (Parcel 2), with the purpose of selling this resulting parcel. There is no development proposed on Parcel 2.
Tentative Map 84585 was reviewed and approved by the Planning Commission at their October 15, 2024 meeting. The staff report, resolution, and minutes are attached (Attachments C, D, & G, respectively)
Public Improvements/Los Angeles County Fire Department Requirements
There is no development proposed with this map. The purpose of this map is to subdivide the land to sell the vacant resulting parcel.
The Los Angeles County Fire Department Land Development Unit has reviewed the proposed map and requires the installation of four fire hydrants that are applicable to future development. Typically, the City enters into a Subdivision Improvement Agreement (SIA) to obligate a property owner to install or pay for future infrastructure needed for the subdivided property. However, if the City Council approves the Purchase and Sale Agreement, then the City will be the property owner. For this reason, instead of an SIA, a Memorandum of Understanding (MOU) would be recorded with the map to ensure that the Fire Department Land Development Unit requirements for installing four fire hydrants and ancillary supporting infrastructure will be met when development of the property takes place in the future. This MOU also addresses the completion of future public improvements to be provided with future development along Foothill Boulevard and Andrew Drive. These improvements include, but are not limited to, the installation of public streetlights, accessible sidewalks, Americans with Disabilities Act (ADA) ramps, and landscaping.
Map Review
Parcel Map No. 84585 has been checked and found to be in substantial conformance with the conditionally approved tentative map, as well as with the Subdivision Map Act requirements.
All submittals required for map recordation have been received by the City, including a monumentation letter, certifying that monuments for the map have been set.
Purchase and Sale Agreement
While the City was processing the application for a parcel map, Clare Properties, LLC approached the City with an offer to sell the remaining parcel (Parcel 2) to the City for a purchase price that is well below the market value for the property. The property owners have indicated they could reap significant tax benefits from selling the property to the City at a loss. The site was previously the subject of a development proposal called “The Commons” that would have included a mix of residential and commercial uses, including 62 residential units. That project was denied by the City Council in April 2021.
Under the proposed Purchase and Sale Agreement, the City would purchase the 6.72 acres of undeveloped vacant land comprising Parcel 2 of the proposed Parcel Map. The City cannot acquire Parcel 2 until the City Council approves the Final Parcel Map that makes Parcel 2 a separate legal parcel. Clare Properties, LLC has offered a purchase price of $40,000 and an escrow period that ends on or before December 9, 2024. The City would acquire the property “as is” in its current condition. Upon acquisition, the City would be responsible for maintenance of the property. At this time, the primary maintenance responsibilities include brush clearance and weed abatement.
During the Feasibility Period outlined in Section 4 of the Purchase and Sale Agreement, the City obtained an updated Phase I Environmental Site Assessment (ESA), which included a physical inspection of the property. A Phase I ESA was previously conducted during the entitlement process for The Commons project, and the report was provided by Clare Properties, LLC to the City. Neither Phase I ESA identified significant environmental issues on the property. The City also obtained a current title report, and during review by the City Attorney’s Office, no issues were noted.
During the most recent City Council priorities setting process, which concluded in April 2024 with the approval of the 2024-26 City Council Priorities and Objectives, the City Council specifically identified this site as a priority for development, establishing the objective, “Undertake deliberate planning for the development of the Foothill Boulevard and Monte Vista Avenue area within existing zoning, and work with Los Angeles County or the City of Upland to adopt an Airport Compatibility Plan.” This objective is included in the City’s work plan for the next two years under the adopted City Council Priority entitled “Increase Livability In Our Neighborhoods and Expand Opportunities For Our Businesses.”
In addition to aligning with the City Council’s recently-adopted Priorities and Objectives for the next two years, State law also requires that the City’s Planning Commission make the finding that the acquisition is consistent with the City’s General Plan. Section 65402 of the California Government Code states that if a General Plan has been adopted (as is the case in Claremont), no real property shall be acquired by dedication or otherwise, for street, square, park, or other public purpose if the adopted General Plan applies thereto, until the location, purpose and extent of such acquisition is submitted to and reported upon by the planning agency (Planning Commission) as to conformity with said adopted General Plan. At its meeting on October 15, 2024, the Claremont Planning Commission adopted a resolution making the finding that the proposed acquisition of the property in question is in conformance with and consistent with the Claremont General Plan (Attachments E & F).
The City is in the process of working with the Los Angeles County Department of Regional Planning to update the County’s Airport Land Use Plan to determine compatible land uses for this site, which is in close proximity to Cable Airport in the City of Upland. An update to the Airport Land Use Plan would allow proposed development projects to be reviewed to address concerns with excessive noise, safety hazards, and uses that could interfere with airport operations. Planning staff has been in regular contact with their counterparts at LA County Regional Planning to follow up on the status of the County’s update to its Airport Land Use Plan. To date, funding for the project has been identified, a lead staff person from the County has been assigned to the project, and the County is in the process of securing a consultant to work on the development of the plan update. The future development of the site will be in accordance with the updated Airport Land Use Plan.
The acquisition of the property presents a significant opportunity for the City to create an intentional and thoughtful path forward for the future development of the site. Under private ownership, the City would be required to process development applications from the current owners or another developer, subject to current zoning and land use designations for the site. Under City ownership, the City could undertake a deliberate process to create a planning document to guide the future development of the property, and to determine what future uses would be of most benefit to the City of Claremont.
Staff recommends the City Council authorize the execution of the Purchase and Sale Agreement, conveying ownership of the remaining 6.72-acre parcel (Parcel 2) from Clare Properties, LLC to the City of Claremont. The Purchase and Sale Agreement is included as Attachment H to this report.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it applies to the following City Planning Documents: Council Priorities, Sustainable City Plan, and the General Plan.
CEQA REVIEW
Final Maps are ministerial projects and exempt from the requirements of the California Environmental Quality Act (CEQA) as stated in Section 15268 of the CEQA Guidelines.
The Purchase and Sale Agreement is exempt from environmental review under CEQA Guidelines Section 15061(b)(3)’s “general rule” that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Here, it can be seen with certainty that there is no possibility that this item, in and of itself, will have a significant effect on the environment. Acquiring the property does not commit the City to a definite course of action under Section 15352 of the CEQA Guidelines. The City has no “project” at this time for the site. On its own, approval of the Purchase and Sale Agreement will not result in any physical changes to the environment.
COUNCIL COMMITTEE/COMMISSION REVIEW
The tentative map was approved by the Planning Commission on October 15, 2024, making the necessary findings for approval.
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by: Prepared by:
Brad Johnson Maria B. Tipping, P.E.
Community Development Director City Engineer
Alexander Cousins
Senior Management Analyst
Attachments:
A - City Council Resolution Approving Final Parcel Map No. 84585 and MOU and Covenants
B - Final Parcel Map 84585
C - 10/15/24 Planning Commission Staff Report (Tentative Tract Map)
D - Planning Commission Resolution 2024-10 (Tentative Tract Map)
E - 10/15/24 Planning Commission Staff Report (General Plan Conformity)
F - Planning Commission Resolution 2024-09 (General Plan Conformity)
G - Minutes Excerpt from 10/15/24 Planning Commission Meeting
H - Purchase and Sale Agreement