Agenda #: 5.4
Meeting Date: February 20, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: LETTER OF OBJECTION AND APPLICATION TO PURCHASE TAXDEFAULTED PROPERTY.
STRATEGIC
GOAL: Safe, Sustainable & Healthy Community
RECOMMENDATION:
Approve and authorize the City Manager to sign and submit a Letter of Objection and Application to Purchase Tax-Defaulted Property.
FINANCIAL IMPACT:
Beyond the $274 application filing fee, there is no immediate financial impact associated with this action. However, it is the first step in the process of acquiring the property at the County’s listed tax-defaulted auction price of $36,252 plus processing fees. Upon acquisition, the City would be responsible for ongoing maintenance costs.
BACKGROUND:
Since the early 1960s, Diamond Bar PONY/Little League (“PONY”) has operated a volunteer-driven non-profit youth baseball league for local participants. In 1969, following years of games at local park and school sites, the organization established Stevens Field located at 22601 Sunset Crossing Road (APN 8718-005-005) in Diamond Bar (“PONY property”), where it has been based since. The PONY property is approximately 10.23 acres and features four unlighted baseball fields, batting cages, seating areas, and a number of outbuildings. The site is located directly across the street from the Diamond Bar/Walnut YMCA facility and immediately adjacent to a Cityowned undeveloped park site (APN 8718-005-007 and APN 8718-005-008). The deed of the property restricts the property to be used for the benefit of the people of the community of Diamond Bar and further provides that if PONY ceases to exist or function for the purposes it was created, then the property shall be transferred to the City since it owns the adjacent parcel.
On an annual basis at the end of January, the Los Angeles County Treasurer and Tax Collector posts a list of properties that are tax defaulted and subject to the Tax Collector’s power to sell. This list is first provided to public agencies for review to determine if any are suitable for public purposes, including parks, open space, and recreational uses. If a public agency identifies a property that could suit such a purpose, it may acquire the property via a Chapter 8 Agreement Sale.
Upon review of the list of tax-defaulted properties for 2024, it was found that the PONY property was subject to public sale with a minimum bid of $36,252 due to unpaid property taxes dating to 2018.
ANALYSIS:
At its peak, PONY served an estimated 1,600 participants across all age levels. As local preferences and demographics have changed, participation levels have decreased significantly. In 2024 data submitted to the City by PONY, total participation was 110 for the spring season. The decline in participation and associated decline in revenues makes it difficult for PONY to maintain the property adequately and pay off the tax/assessment liability by the April 20, 2024 deadline.
With PONY’s financial options limited, the Chapter 8 Agreement Sale process provides the City with a vehicle to acquire a large parcel of land in a parkless neighborhood at a cost-effective price. It mitigates the risk of the property falling into private hands and offers an opportunity to maintain and expand public park and recreational use for youth and adult sports programs in a manner that is consistent with the Parks Master Plan.
Further, the location offers a unique opportunity to leverage the City’s adjacent undeveloped park site with the 10.23-acre PONY property to create what could ultimately be the City’s second-largest public park.
Should the City’s objection and application be accepted and the purchase become complete, a significant investment will be required to design, construct, and maintain a facility that meets the community’s standards for City-owned and operated parks and facilities and federal Americans with Disabilities (ADA) access guidelines. This process will undoubtedly take time. In the interim, the Council must determine its tolerance for liability and its willingness to make investments in maintenance improvements to provide safe access to the public.
To initiate a Chapter 8 Agreement Sale to acquire the PONY property, the City must complete the following by 5:00 p.m. on Friday, February 23, 2024:
1. Submit a formal written objection to the public auction sale (Attachment 1)
2. Complete an Application to Purchase Tax-Defaulted Property from the County (Attachment 2).
3. Meet all County pre-qualification requirements (Attachment 3).
LEGAL REVIEW:
City Attorney has reviewed and approved the letter of objection and application to purchase tax-defaulted property.
PREPARED BY:
REVIEWED BY:
Attachments:
1. 5.4.a Letter of Objection
2. 5.4.b Application to Purchase Tax Defaulted Property
3. 5.4.c Prequalification Requirements