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1978/11/3078-1596 Anaheim Convention Center, Fullerton Room, Anaheim, California COUNCIL MINUTES - November 30, 1978, 2:00 P.M. The City Council of the City of Anaheim met in adjourned regular session. PRESENT: ABSENT: PRESENT: ABSENT: PRESENT: PRESENT: COUNCIL MEMBERS: and Seymour COUNCIL MEMBERS: Kott GOLF COURSE ADVISORY COMMISSION: Overholt (arrived 2:55 P.M.), Kaywood, Roth GOLF COURSE ADVISORY COMMISSION: HACMAC MEMBERS: Jan Hall CITY MANAGER: William O. Talley CITY ATTORNEY: William P. Hopkins CITY CLERK: Linda D. Roberts STADIUM-CONVENTION CENTER-GOLF DIRECTOR: GOLF COURSE SUPERVISOR: Neal Beeson PLANNING DIRECTOR: Ron Thompson SENIOR STAFF ASSISTANT: Lloyd Trapp ASSOCIATE LANDSCAPE PLANNER: Patterson, Messe, Bartholomew, Klein, Herling, Sweet, Davis, Zibell and Martin None Tom Liegler Richard Fisher Mayor Seymour called the joint meeting to order at 2:20 p.m. to discuss the exten- sion of the lease agreement between the City and Anaheim Hills, Inc., for surplus golf course property leased as an Equestrian Center. Chairman Patterson called the Golf Course Advisory Commission to order. 123/1B5: SURPLUS CITY PROPERTY AT THE ANAHEIM HILLS GOLF COURSE: Mr. Liegler submitted copies of an excerpt from the City Council meeting of November 21, 1978, at which time the City Council determined to meet with the Golf Course Advisory Commission to discuss this matter. This was submitted together with an article by Joe Buchanan, Golf Editor of the Anaheim Bulletin. Mr. Dan Salcedo, representing Texaco-Anaheim Hills, Inc., gave a brief presentation advising that they currently are leasing five acres of surplus golf course property on which the Saddle Club is located, which lease will expire in 1981; with the right to extend same through 1986. He explained that his company is interested in ma£ntaining and expanding this site for equestrian purposes because of the miles o~ ri~ing an~ biting tra~ls installe~ throughout the Canyon area. They fear that if the Equestrian Center is not maintained in perpetuity, the riding and hiking trails system would become obsolete. He advised that Texaco-Anaheim Hi]is is still interested in purchasing this property pursuant to the 1976 agreement. He re'ported that the appraisal performed by Cedric White indicated a value at $160,00(i). Mr. Salcedo further explained that Mr. Eric Berg has indicated Anaheim Hills Inc., would be interested in purchasing an additional 20 acres at some future date. He pointed out that there is a fire station site on a portion of the property in ques- tion and if Anaheim Hills were to purchase same for development purposes, would require relocation at some additional cost with which they are currently not familiar. 78-1597 Anaheim Convention Center, Fullerton Room, Anaheim, California COUNCIL MINUTES - November 30, 1978, 2:00 P.M. Mr. Salcedo discussed the conceptual rendering given by the Planning Department to the Golf Course Commission showing that a potential 100 units might be developed on 35 acres of this land. He noted that the topography of the area in question is such (elevation of 649 feet on Nohl Ranch Road down to 509 feet) that grading and fill would exceed a cost of $1 million. In relation to the charge given the Golf Course Advisory Commission by the City Council to explore and suggest alternative uses for the 55 acres of surplus prop- erty, Mr. Salcedo pointed out that the Anaheim Hills Saddle Club is the principal and only tenant on this land with what they believe is a long-term lease, and that he suspects few developers would be interested in all 35 acres with Anaheim Hills holding a possessory interest on a portion of it through 1986. Mr. Salcedo stated that the Equestrian Center has been very well received by the people in the community and beyond. He pointed out that they are a private enter- prise providing a public recreational service, and that they have been trying to buy or expand this lease for a significant period of time. He reiterated from the November 21, 1978 discussion that whatever proceeds are received from sale of the property for expansion of the Equestrian Center, would go directly into the City's General Fund, whereas the proceeds from the sale of any of the remaining acreage would have to be deposited in the Special Fund to reduce the encumbrances on the golf course property debt. Mr. Lloyd Trapp and Mr. Dick Fisher, using a map of the area, presented the Parks, Recreation and the Arts Department's position (as also set forth in a memorandum from Jim Ruth dated October 3, 1978) i.e., that they have conducted a study out- lining the needs for park and recreation facilities in that particular park service area (Planning Area B) and one of the sites earmarked for development was that on which the equestrian facility is located. It was explained that this is one of the few sites in the Canyon area which has level ground and on which parks and recreation could place active recreational facilities such as a ball field. For this reason, Parks, Recreation and the Arts Department would request that the City Council consider, rather than sale of the property, that an extension to the Anaheim Hills lease be approved for an additional five years, which would allow their department the time to work with Anaheim Hills on perhaps a land exchange. The Council was further advised that the Parks and Recreation Commission, at their November 29th meeting, also reiterated their position that the City should lease the property in question for an additional five years and at the end of that time, make the decision as to whether or not to sell. Mr. Fisher elaborated on this presentation using a colored map to graphically display the various parcels under consideration. Mayor Seymour recalled that this property was originally purchased for the purpose of creating an additional nine holes for the golf course and questioned when it became designated for a ball field. It was explained that three years ago this property, for purposes of lowering the encumbrance against the golf course, was taken out of the golf course account and payments for same made from Parks and Recreation Funds. A survey done at about 78-1598 Anaheim Convention Center, Fullerton Room, Anaheim, California COUNCIL MINUTES - November 30~ 1978, 2:00 P.M. the time of the development of the Equestrian Center, taking into consideration the park and land supply in this park service area and whether suitable for active recreation, passive recreation or open space. The Equestrian Center site was the only location on the north side of Santa Ana Canyon Road suitable for an active recreational use. Mr. Ron Thompson added that this site has not actually been designated as a ball field, but is one of the options and alternatives put together by staff in re- sponse to City Council's direction to explore all options and alternatives for the surplus golf course property. Councilman Roth stated that it was his understanding that the City has another 30 acres of land below the Walnut Canyon Dam, which in his opinion, since it is located mostly in the flood plain, would be an ideal park site. Mr. Fisher responded that a large percentage of the more useable flat portion of this 30 acres is heavily wooded with oak trees. Chairman Patterson advised the City Council that the Golf Course Advisory Commis- sion always considered the total 35 acres under discussion as part of the golf course, however it was transferred to Parks, Recreation and the Arts Department to reduce the golf course debt service as mentioned. However, in looking at land use possibilities, the Golf Course Advisory Commission feels it is premature to ask them for a recommendation on this particular parcel, in that they have just begun deliberations on the possible uses of the entire 35 acres as recently charged by the City Council. He advised that certainly this sale or lease is one possibility and they are willing to consider all options, however they are not recommending either the sale or lease at this time. In response to Commissioner Klein, City Attorney Hopkins outlined the changes from the original agreement obtained through discussion with Mrs. Grant's attorneys, indicating that they would have no objection to permitting the City to sell this property or make other arrangements for it, so long as the funds thus received from a lease or sale would go into a special fund toward payment on the original debt. There is now a special agreement provided in connection with the Equestrian Center (15 acres) which allows that the City may sell or lease that particular property and utilize the income thus derived for its General Fund. Councilman Overholt entered the meeting. (2:55 P.M.) Mayor Seymour advised that the Council did not expect that the Golf Course Advisory Commission would have finalized anything in relation to the charge given them to explore and review options for the excess golf course land, but the Council's purpose in meeting this afternoon was an attempt to keep good faith with Anaheim Hills Inc., on the Council's commitment that they would finalize something on the Equestrian Center property within a given period of time; and also to discuss with the Commission what impacts there might be as far as the consideration of sale of this 15-~cre parcel only is concerned. 78-1599 Anaheim Convention Center, Fullerton Room, Anaheim, California COUNCIL MINUTES - November 30~ 1978, 2:00 P.M. Mrs. Jan Hall, representing HACMAC, questioned why Anaheim Hills could not go ahead with the proposed expansion of the Equestian Center on a lease with option to buy arrangement. Mr. Salcedo responded that they are interested in maintaining this equestrian use on this particular site in perpetuity; that they feel they have something viable to present to the Council in terms of maintaining it for that purpose; that they would be agreeable to the deed restricting use to equestrian purposes. He added that the golf course debt problem would not be resolved with or without sale of this particular property. He reiterated that Anaheim Hills is primarily interested in purchase of the 15 acres to expand the Equestrian Center facility, but as an accommodation, would be willing to purchase the balance of the 35 acres, or parts of it, so as not to affect the fire station site. Under Council discussion of the issue, Mayor Seymour indicated he would be inclined to sell the 15 acres of land in an attempt to derive the highest price possible, since he has personally come to the conclusion that although, from a business standpoint perhaps the land should be sold for development, from a political standpoint, he realized that the only use acceptable to the community would be recreational. Councilman Roth stated that he would support either of the two actions, to lease the additional acreage for expansion of the Equestrian Center or to sell the property for the highest price the City could get, and however, he favored the latter approach provided that the funds would be applied toward the golf course encumbrances, as he is still primarily interested in lowering that debt service per year. If the funds derived from the sale are proposed to be used for something else in the General Fund, then he would be opposed. Counciiwoman Kaywood voiced the opinion that the lease should be approved allowing the Equestrian Center to expand and that the five years additional time would allow the City to have a better picture on what is going to happen in the Canyon area and would leave the City's options open. She therefore would support con- tinuing the lease program. Councilman Overholt stated that he felt the option provisions of the current agreement, under the present circumstances would be unsatisfactory. Several members of the public were present at the meeting and the following individuals spoke in support of the need to continue and expand the Equestrian Center use in the Canyon: Don Kirkey of Oak Knoll, Helen Curtis of Peralta Hills, and Sue Lease, whose husband manages the Saddle Club. Golf Course Commissioner Klein voiced the opinion that the sale of this particular parcel will not reduce the golf course indebtedness since the property was previously transferred to Parks, Recreation and the Arts. Furthermore, he felt the investment as a whole is a good deal. Commissioner Messe stated that certainly he believes if the City decides to hold on to this piece of property, the money received should go toward retirement of the overall land debt. However, he could not recommend whether or not the Council should agree to sell as he just has not had an opportunity to look at this yet, nor has the Golf Course Advisory Commission Subcommittee. Further, he advised he would 78-1600 Anaheim Convention Center, Fullerton Room, Anaheim, California COUNCIL MINUTES - November 30, 1978~ 2:00 P.M. certainly recommend that the Council carefully consider the sale price as this particular 15-acre parcel is the most desirable of the land and really would cut the acreage up if sold. Commissioner Helen Sweet stated she was very much in favor of selling the property and not in favor of doing anything with the land which would cost the City more money rather than relieving the debt. MOTION: Following extensive discussion between the City Council, staff and Golf Course Advisory Commission, Councilman Seymour moved that the City Council direct the City Manager, City Attorney and appropriate members of staff to negotiate sale of the 15 acres to Texaco-Anaheim Hills, Inc., for the purpose and use as an Equestrian Center; the deed to said property to include a restriction which would forever more restrict use to an Equestrian Center or a recreational use. Councilman Roth seconded the motion. Following additional discussion in which Councilwoman Kaywood again pointed out that she favored leasing the property in question for an additional period of time as recommended by the Parks and Recreation Commission and Parks, Recreation and the Arts Department, as in that situation the City would certainly not be losing anything. A vote was then taken on the foregoing motion. Councilwoman Kaywood voted "No". Councilman Kott was absent. MOTION CARRIED. The City Council indicated that they would still like the Golf Course Advisory Commission to continue to work on alternatives for the balance of the property. ADJOURNMENT: Councilman Roth moved to adjourn. Councilwoman Kaywood seconded the motion. Councilman Kott was absent. MOTION CARRIED. Adjourned: 3:55 P.M. IN-DA D. ROBERTS , CITY CLERK