Agenda Report
Fullerton City Council
MEETING DATE: MAY 2, 2023
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: RICHARD D. JONES, CITY ATTORNEY
PREPARED BY: BARON J. BETTENHAUSEN, ASSISTANT CITY ATTORNEY SUBJECT: DEED TRANSFERS RECOGNIZING SALE OF PROPERTIES LOCATED AT 301 AND 315 NORTH POMONA AVENUE TO THE NORTH ORANGE COUNTY COMMUNITY COLLEGE DISTRICT PURSUANT TO A 1974 LEASE PURCHASE AGREEMENT AND IMPOSING RESTRICTIONS ON USE
SUMMARY
Request for approval of deeds recognizing the sale of 301 and 315 North Pomona Avenue to the North Orange County Community College District under a 1974 Lease Purchase Agreement and imposing restrictions on the use of the properties.
RECOMMENDATION
Approve recording deeds recognizing the sale of 301 North Pomona Avenue (APN 033-012-18) and 315 North Pomona Avenue (APN 033-012-17) to the North Orange County Community College District pursuant to a 1974 Lease Purchase Agreement.
CITY MANAGER REMARKS
None.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Infrastructure and City Assets.
FISCAL IMPACT
None.
DISCUSSION
The City of Fullerton and the North Orange County Community College District (the “District”) entered into Lease Purchase Agreements on November 7, 1974 and March 7, 1975 for the Pomona Avenue Library property. The City leased the properties to the District for a ten-year term with an option to purchase. The Pomona Avenue Library property is identified as 301 North Pomona Avenue (commonly known as the Fullerton Museum) and 315 North Pomona Avenue (commonly known as the Ben Franklin House). The City would apply all $15,000 annual rental payments (total of $150,000) against the $150,000 purchase price, should the District exercise its right to purchase.
The Lease Purchase Agreements required deed restrictions to ensure the “…continued use of the facility for museum, joint community service, and related purposes” and “…continued use of the facility for ‘purposes of organizing, promoting, and conducting programs of community recreation, including but not necessarily limited to the operation of a museum” for the Ben Franklin House.
However, deeds transferring title to the properties located at 301 North Pomona Avenue and 315 North Pomona Avenue to the District were not recorded. The District submitted a letter to the City on September 21, 2022, requesting correction of the oversight by recording the appropriate deeds (Attachment 1). The deeds presented to City Council for approval include the deed restriction language in the Lease Purchase Agreements for both properties (Attachments 2 and 3).
The City and District executed a Lease-Back Agreement concurrently with execution of the Lease Purchase Agreement, wherein the City leased the properties back from the District for a five-year period, subsequently renewed twice until expiring July 1, 1985. 315 North Pomona (Ben Franklin House)
The City executed a new lease agreement on April 5, 1983, leasing the Ben Franklin House effective August 1, 1984 through July 1, 2002. This lease was contingent upon the District executing its option to purchase the property. The City subleased this property to the Young Women’s Christian Association (YMCA) until the YWCA terminated their sublease in 1998 followed by the City terminating its lease of this property from the District. The District took possession and has continuously utilized the property to the present date. 301 North Pomona (Fullerton Museum)
The City executed a new lease agreement on June 3, 1986, leasing the Fullerton Museum property from the District for a museum operation from 1988 to 2008 and an option to extend for an additional twenty years. The City exercised its option to renew in 2008 and the current lease will expire on December 31, 2028. The City did not sublease this property. The City executed an operations agreement with the Fullerton Museum on June 15, 2004.
Conclusion
The City sold the Ben Franklin House and Fullerton Museum properties to the District in 1974. However, through an oversight, no deed was recorded. City Council must approve before the City can administratively correct title on the properties because the sale included deed restrictions. The present action provides only an administrative correction to update the chain of title and the Surplus Land Act does not apply because the City sold the property in 1974.
Attachments:
Attachment 1 – Request to Update Title
Attachment 2 – 301 North Pomona Avenue Deed
Attachment 3 – 315 North Pomona Avenue Deed
cc: City Manager Eric J. Levitt
301 and 305 North Pomona Avenue Deed Transfer
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