City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-1915 Agenda Date: 12/12/2022
Agenda #: A. Category: Consent Calendar
FROM:
Development Services
SUBJECT:
Termination of the Option to Purchase Agreement with NH Southridge LLC for Assessor Parcel Number 0237-411-13 that was approved by the City Council on June 14, 2022.
RECOMMENDATION:
Approve Termination of the Option to Purchase Agreement with NH Southridge LLC for Assessor Parcel Number 0237-411-13; and
Adopt Resolution No. 2022-141, of the City Council of the City of Fontana Vacating Its Action in Resolution 2022-027 Abandoning Undeveloped City-Owned Parkland; and Adopt Resolution No. 2022-142, of the City Council of the City of Fontana Declaring Its Intent to Discontinue and Abandon Use of a Portion of a Public Park and Convey that Minor Portion of Park Area.
Determination that the City’s Actions are Exempt from CEQA COUNCIL GOALS:
Practice sound fiscal management by living within our means while investing in the future.
Enhance the local environment for future generations and create a healthy economic and environmental future by creating neighborhoods that are attractive, safe and convenient for walkers and bicyclists.
Invest in the City’s infrastructure (streets, sewers, parks, etc.) by improving the aesthetics of the community.
DISCUSSION:
Background
On September 23, 1997, Ten-Ninety, LTD quit-claimed the deed of an approximately 9.96 acre parcel of vacant land identified as APN 0237-411-13 (the “City Property”) to the City, which was formally accepted by the City on May 2, 1999.
NH Southridge LLC owns property neighboring the City Property and approached the City with an offer to purchase the City Property and thereafter dedicate to the City approximately five (5) acres of adjacent property, including three-and-a-half acres of open space and trails, and one-and-a-half City of Fontana Printed on 12/10/2022Page 1 of 4
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File #: 21-1915 Agenda Date: 12/12/2022
Agenda #: A. Category: Consent Calendar
acres of a proposed “Trailhead Park,” which would include a passive park.
In order to facilitate that transaction, on February 22, 2022, the City Council adopted Resolution No. 2022-013, a Resolution of Intention describing the City Property to be abandoned and ordered a public hearing on the proposed abandonment be set for April 12, 2022.
On April 12, 2022, a public hearing was held by the City Council regarding the proposed abandonment of the City Property. During the public hearing, members of the public spoke regarding their desire to ensure biking activities on or near the City Property could still occur.
Following a public hearing, the City Council adopted Resolution No. 2022-027, a Resolution abandoning the Property pursuant to the Municipal Park Abandonment Law of 1939 (Government Code sections 38501 et seq.) and directed staff to work with the groups heard during the public hearing to find a resolution to their concerns.
On June 14, 2022, the City Council approved an Option to Purchase Agreement with NH Southridge LLC for the City Property.
Subsequent to that approval, the City has continued to work with NH Southridge and the biking community to ensure continued access to mountain biking trails in the vicinity of the City Property. In the meantime, a group of individuals not affiliated with the biking community brought a lawsuit against the City, seeking a writ of mandate directing the City to vacate the actions taken on April 12 and June 14, 2022 related to the City Property.
NH Southridge LLC is aware of the concerns raised by the members of the public, and has approached the City with an alternative proposal regarding the City Property and its adjacent property. This alternative proposal became possible due to NH Southridge LLC’s recent acquisition of additional property in the vicinity.
As explained in the November 16, 2022 correspondence from NH Southridge LLC entitled “Revised Offer to Swap and Improve Property for Bird Farm Parcel,” the revised proposal would provide members of the public, including mountain bikers and hikers, with permanent access to the City’s Southridge Village Open Space Reserve (the “Reserve”), and would entail the following:
1. NH Southridge LLC would exchange approximately 10.3 acres of property (“Exchange Property”) for the City Property, which would create circulation, connectively, and access to the Reserve to and from the City Property.
2. NH Southridge LLC would pay the City $1,000,000.
3. NH Southridge LLC would construct an approximately 1.6 acre public park at the corner of Live Oak Avenue and Village Drive, at an estimated cost of $950,000. As currently envisioned, this proposed park would have a new parking lot, passive play area, pickleball courts, trailhead entrances and related improvements. All expenses related to the proposed park would be paid by NH Southridge LLC, not the City.
4. NH Southridge LLC would also remove boulders and rocks hanging from the face of the old granite quarry and install a rockfall protection barrier on nearby City-owned property to increase City of Fontana Printed on 12/10/2022Page 2 of 4
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ATTACHMENT NO. 1
File #: 21-1915 Agenda Date: 12/12/2022
Agenda #: A. Category: Consent Calendar
the safety of that property. This work is estimated to cost $1,700,000.
The revised proposal would provide permanent legal access to the Reserve (currently members of the public have been crossing through privately-owned property to access the Reserve) and create more than 700 acres of contiguous parkland and open space owned by the City. Accordingly, City staff recommends the City Council consider the revised offer from NH Southridge LLC.
Notably, because the revised proposal would result in the City receiving a greater area of contiguous land in exchange for the City Property, the action the City previously took to abandon the City Property would not be necessary to facilitate the proposed transaction. Instead, the most appropriate process for discontinuing use of the City Property is set forth in Government Code section 38441, which applies to an “exchange for an equal or greater area or value of privately owned land contiguous to the park.” Staff has done a preliminary analysis of the statutory requirements and believes that findings can be made to support the transaction. Accordingly, while considering the revised offer, City staff recommends City Council vacate the prior actions relating to the City Property. Doing so would provide the City with a “clean slate” upon which to consider the revised offer and would moot the current lawsuit, thus saving the City the time and expense of continuing to defend against the claims brought in that lawsuit.
Approval of Termination of the Option to Purchase Agreement with NH Southridge LLC for the City Property
In order to provide a clean slate upon which the revised offer from NH Southridge LLC can be considered, the City Council may approve the termination of the current Option to Purchase Agreement. NH Southridge LLC has provided consent to this termination.
Resolution Vacating City Council Action in Resolution 2022-027 Abandoning Undeveloped City- Owned Parkland
In order to provide a clean slate upon which the revised offer from NH Southridge LLC can be considered, the City Council may formally vacate its prior action abandoning the City Property.
Resolution of Intent
In order to consider the revised offer from NH Southridge LLC, the City Council may adopt a Resolution of Intent declaring that the public interest or convenience requires the discontinuance of the use of the City Property as a park, pursuant to Government Code section 38443. If a Resolution of Intent is adopted, the City Council would then conduct a public hearing to meet, hear, and pass on any written or oral protests against the proposed discontinuance or the extent thereof. If the City Council sustains the protests against the proposed discontinuance, the proceedings would terminate.
Alternatively, the City Council may sustain protests as to one portion and overrule them as to another portion of the City Property by a two-thirds vote. Finally, the City Council may overrule all protests by a two-thirds vote, and then may order the City Property to be discontinued as a park and exchanged for an equal or greater area or value of privately owned land pursuant to Government Code section 38441.
ENVIRONMENTAL IMPACT:
The existing Option to Purchase Agreement is contingent upon the City’s approval of certain entitlements for the development of the City Property, after compliance with the California Environmental Quality Act (CEQA). Accordingly, terminating the option agreement and vacating the City of Fontana Printed on 12/10/2022Page 3 of 4
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File #: 21-1915 Agenda Date: 12/12/2022
Agenda #: A. Category: Consent Calendar
prior City Council action abandoning the City Property would merely preserve the status quo. Thus, such actions are exempt from CEQA, under State CEQA Guidelines section 15061(b)(3), as it can be seen with certainty that there is no possibility that the activities in question may have a significant effect on the environment.
Should the City Council ultimately determine to approve the revised proposal, the contemplated exchange of property would likewise be contingent upon the City’s approval of entitlements, after compliance with CEQA. Public agencies are permitted to enter into preliminary agreements regarding the disposition and/or development of property prior to CEQA compliance, so long as such agreements are conditioned on future CEQA compliance in such a way that the agency has not committed itself to a definite course of action regarding a project. (See, e.g., Cedar Fair, L.P. v. City of Santa Clara (2011) 194 Cal.App.4th 1150; Delaware Tetra Technologies, Inc. v. County of San Bernardino (2016) 247 Cal.App.4th 352; Bridges v. Mt. San Jacinto Community College Dist. (2017) 14 Cal.App.5th 104.) Thus, the City’s approval of an agreement that is contingent upon CEQA compliance would not constitute approval of any CEQA project and would not trigger CEQA review.
FISCAL IMPACT:
As a result of terminating the Option to Purchase Agreement, the City would no longer receive the payments contemplated under that agreement. The proposed discontinuance of the City Property as a park and exchange and sale of the City Property may be considered at the January 24, 2023 meeting. The fiscal impacts of those actions will be detailed at that time.
MOTION:
Approve staff recommendation. Should the City Council desire to move the item forward as recommended by Staff, a motion could be made as follows: “Motion to Terminate the Existing Option Agreement between the City and NewBridge and Approve Resolution Nos. 2022-140 and 2022-141.” City of Fontana Printed on 12/10/2022Page 4 of 4
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ATTACHMENT NO. 1
1 RESOLUTION NO.
A RESOLUTION THE CITY COUNCIL OF THE CITY OF
FONTANA VACATING ITS ACTION IN RESOLUTION 2022-
027 ABANDONING UNDEVELOPED CITY-OWNED
PARKLAND PURSUANT TO THE MUNICIPAL PARK
ABANDONMENT LAW OF 1939 (GOVERNMENT CODE
SECTIONS 38501 ET SEQ.)
WHEREAS, on September 23, 1997, parcel
of vacant parkland by quit-claim deed identified as APN 0237-411-13, as more particularly WHEREAS, the City Property was formally accepted by the City on May 2, 1999; and
WHEREAS, the City Property is approximately ten (10) acres in size; and WHEREAS, on June 14, 2022, the City Council adopted Resolution 2022-027, a Resolution Abandoning Undeveloped City-Owned Parkland Pursuant to the Municipal Park Abandonment Law Of 1939 (Government Code Sections 38501 Et Seq.); and Determining that the Abandonment of the Parkland is Exempt from CEQA; and WHEREAS, the City Council now desires to vacate the actions taken in Resolution 2022-027 in order to consider alternative options for the City Property.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FONTANA DOES RESOLVE AS FOLLOWS:
Section 1. The above recitals are true and correct and are incorporated herein by reference and made a substantive portion of this Resolution.
Section 2. All actions taken in Resolution 2022-027 are vacated and of no further force and effect.
Section 3. The City Manager or designee and the City Clerk or designee are directed and authorized to take all actions necessary or appropriate to effectuate this Resolution.
Section 4. Resolution 2022-027 included a determination that it was not subject to the California Environmental Quality Act (CEQA). Vacating said resolution preserves the status quo and is thus similarly exempt from CEQA under State CEQA Guidelines section 15061(b)(3), as it can be seen with certainty that there is no possibility that the activities in question may have a significant effect on the environment.
PASSED AND ADOPTED by the City Council of the City of Fontana at a regular meeting of the City Council on December 1
, 2022 by the following vote:
ATTACHMENT NO. 1
2 AYES:
NOES:
ABSENT:
ABSTAIN:
Acquanetta Warren, Mayor
ATTEST:
City Clerk
APPROVED AS TO FORM:
Ruben Duran, City Attorney
ATTACHMENT NO. 1
2 RESOLUTION NO.
A RESOLUTION OF INTENTION OF THE CITY COUNCIL
OF THE CITY OF FONTANA TO DISCONTINUE AND
ABANDON THE USE OF CERTAIN PROPERTY AS A
PUBLIC PARK AND DECLARING THAT PUBLIC
INTEREST OR CONVENIENCE REQUIRES THE
DISCONTINUANCE OF THE USE OF SUCH LAND AS A
PUBLIC PARK PURSUANT TO GOVERNMENT CODE
SECTIONS 38440 ET SEQ
WHEREAS, on September 23, 1997 the City of Fontana (“City”) acquired a parcel of vacant parkland by quit-claim deed identified as APN 0237-411-13, as more particularly described in Exhibit “A” (“City Property”); and
WHEREAS, the City Property was formally accepted by the City on May 2, 1999; and
WHEREAS, the City Property is approximately 9.96 acres in size; and
WHEREAS, the City Property is identified as a part of “Southridge Park”; and
WHEREAS, Government Code sections 38440 et. seq. authorizes the City to discontinue and abandon the use as a public park of any land owned in fee by it and thereafter dispose of the land; and
WHEREAS, Government Code section 38441 authorizes the City to convey a minor portion of a park in exchange for an equal or greater area or value of privately owned land contiguous to the park after (a) notice and a public hearing, (b) determination that the exchange is in the public interest, and (c) adoption of a resolution of discontinuance.
WHEREAS, NH Southridge LLC has proposed a transaction which would include the exchange of the City Property for contiguous privately owned land of greater area, as further detailed in the November 16, 2022 correspondence from NH Southridge LLC entitled “ Revised Offer to Swap and Improve Property for Bird Farm Parcel” (Revised Offer), attached hereto as Exhibit “B.”
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FONTANA DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The above recitals are true and correct and are incorporated herein by reference and made a substantive portion of this Resolution.
Section 2. It is the intention of the City Council of the City of Fontana to discontinue use of the City Property as public park land and exchange the City Property ATTACHMENT NO. 1
3 for 10.3 acres of property and other consideration, as set forth in the Revised Offer, pursuant to Government Code section 38441.
Section 3. A map showing the City Property to be discontinued as a public park is on file in the Office of the City Clerk at 8353 Sierra Avenue, Fontana, California, 92335 and is available for public inspection during the City’s normal business hours. A legal description of the City Property is set forth in Exhibit “A.” Section 4. The proposed discontinuance is set for a public hearing at 7:00 p.m. or as soon thereafter as the matter can be heard, on January 24, 2023 in the Grover W.
Taylor Council Chambers at 8353 Sierra Avenue, Fontana, California, 92335. At this public hearing, members of the public or persons particularly interested may protest the proposed discontinuance. Any time before the hour set for the public hearing, any person or persons interested may protest in writing against the proposed discontinuance, or to the extent thereof. Any protest shall be delivered to the City Clerk’s Office.
Section 5. Should the City Council ultimately determine to approve the revised proposal after the public hearing, the contemplated exchange of property shall be contingent upon the City’s approval of certain entitlements, after compliance with CEQA.
The City shall retain the absolute discretion to impose mitigation measures, consider alternative uses, require modifications to the proposed project and to disapprove of any proposed use. Accordingly, this resolution of intention does not commit the City to any definite course of action with regard to the disposition or use of the City Property or the property proposed to be exchanged for the City Property, and does not constitute approval of any CEQA project.
Section 6. The City Clerk or designee shall cause a copy of this Resolution and related notices to be published and posted in the manner prescribed by Government Code sections 38440 et seq. of the Government Code.
PASSED AND ADOPTED by the City Council of the City of Fontana at a regular meeting of the City Council on December 1
, 2022 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Acquanetta Warren, Mayor
ATTEST:
ATTACHMENT NO. 1
4 City Clerk
APPROVED AS TO FORM:
Ruben Duran, City Attorney
ATTACHMENT NO. 1
5 Exhibit “A”
Legal Description of City Property
LOT 11 OF TRACT NO. 15117, IN THE CITY OF FONTANA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 275, PAGES 66 THROUGH 90, INCLUSIVE, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
APN: 0237-411-13-0-000
ATTACHMENT NO. 1
6 Exhibit “B”
Revised Offer
ATTACHMENT NO. 1
ATTACHMENT NO. 1
ATTACHMENT NO. 1
Mo
nday, December 12, 2022
3:00 PM
C
ity of Fontana
8353 Sierra Avenue
Fontana, CA 92335
Gr
over W. Taylor Council Chambers
Spec
ial City Council Meeting
Ac
quanetta Warren - Mayor
Peter
A. Garcia - Mayor Pro Tem
John B. Roberts - Council Member
Jesus "Jesse" Sandoval - Council Member
Phillip Cothran - Council Member
Germaine McClellan Key - City Clerk
Janet Koehler-Brooks, City Treasurer
Minutes
ATTACHMENT NO. 1
DRAFT
CALL TO ORDER/ROLL CALL:
A. 3:00 P
.M. Call To Order/Roll Call:
The Special Meeting of the Fontana City Council was held on Monday, December 12, 2022, in the Grover W. Taylor Council Chambers located at 8353 Sierra Avenue, Fontana, CA 92335.
Mayor Warren called the meeting to order at 3:02 p.m.
ROLL CALL:
PRESENT: Mayor Warren, Mayor Pro Tem Garcia, Council Members Cothran, Roberts, and Sandoval
ABSENT: None
City Clerk McClellan Key and City Treasurer Koehler-Brooks were also in attendance.
INVOCATION/PLEDGE OF ALLEGIANCE:
A. Invocation/Pledge of Allegiance:
The invocation was given by Fontana Police Department Chaplain Daniel Vasquez, followed by the pledge of allegiance led by Council Member Cothran.
PUBLIC COMMUNICATIONS:
A. Public Communications
There were no public communications received.
PRESENTATION:
A. Presentation
21-1919
A. Housing Development Manager Valerie Gonzales to present 2022 Annual Housing Developm
ent Update.
Housing Development Manager Gonzales provided the staff report.
ELECTION RESULTS:
A. Certification of the November 8, 2022, General Municipal Election Results
21-1832
Deputy City Clerk Ashton Arocho provided the staff report.
ACTION: M
otion was made by Mayor Pro Tem Garcia, seconded by Council Member Cothran, to adopt Resolution No. 2022-135. Motion passed by a unanimous vote as follows: AYES: Warren, Garcia, Cothran, Roberts, and Sandoval; NOES: None; ABSTAIN: None
ATTACHMENT NO. 1
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Special City Council Meeting Minutes De cember 12, 2022 NEW BUSINESS:
A. Termination of the Option to Purchase Agreement with NH Southridge LLC for Assessor Parcel Number 0237-411-13 that was approved by the City Council on June 14, 2022.
21-1915
Deputy City Manager Phil Burum provided the staff report.
ACTION: M
otion was passed by Council Member Roberts, seconded by Mayor Pro Tem Garcia, to approve termination of Option to Purchase Agreement with NH Southridge LLC for Accessor Parcel Number 0237-411-13 and to adopt Resolution No. 2022-141 and Resolution No. 2022-142. The motion carried by a 4-1 vote as follows; AYES: Warren, Garcia, Cothran and Roberts; NOES: Sandoval; ABSTAIN: None CITY MANAGER COMMUNICATIONS:
A. City Manager Communications
City Manager Ballantyne invited the public to join City Council and staff at the upcoming Oath of Office ceremony held on Tuesday, December 13, at the Steelworkers' Auditorium at 5:00 p.m.
ELECTED OFFICIALS COMMUNICATIONS/REPORTS:
A. Elected Officials Communications/Reports
There were no elected official communications received.
CLOSED SESSION:
PUBLIC COMMUNICATION - CLOSED SESSION:
A. Public Communications - Closed Session
ATTACHMENT NO. 1
DRAFT
Special City Council Meeting Minutes De cember 12, 2022 There were no public communications received for the following closed session items:
CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Gov. Code Section 54956.8)
Property: APN #192-042-26, 0230-041-01, 0237-201-27, 0256-011-22, 0228-233-01, and 1107-262-58
City Negotiator: Phillip Burum, Deputy City Manager
Negotiating Party: Fontana Fire Protection District
Under Negotiation: Price and Terms of Payment
CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code section 54956.8)
Property: APN # 0238-052-07
City Negotiator: Gia Kim, Public Works Director/City Engineer Negotiating Party: ADO Holdings, LP
Negotiation: Price and Terms of Payment
CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Gov. Code Section 54956.9(d)(1))
Name of Case: Richard Guerrero v. City of Fontana
Case No. 201200416; 1775945; ADJ15247644
CLOSED SESSION ANNOUNCEMENT
City Attorney Duran announced that the City Council met on the items listed on the agenda and took no reportable action.
ADJOURNMENT:
A. Adjournment
Mayor Warren adjourned the meeting at 3:43 p.m. to the next Regular City Council Meeting on December 13, 2022, at 5:00 p.m. in the Steelworkers' Auditorium located at 8437 Sierra Avenue, Fontana, California.
________________________________
Ashton R. Arocho, MMC
Deputy City Clerk
THE FOREGOING MINUTES WERE ADOPTED AND APPROVED BY THE FONTANA CITY COUNCIL ON JANUARY 24, 2023.
_______________________________
Germaine McClellan Key
City Clerk
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Special City Council Meeting Minutes De cember 12, 2022
ATTACHMENT NO. 1
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