HomeMy WebLinkAbout11/4/2015 - STAFF REPORTS S.F. APPROVE THE PURCHASE OF A 24+/_ ACRE PARCEL OF LAND, A PORTION OF
THE FORMER SHADOWROCK PROPERTY WITHIN THE CHINO CONE, IN THE
AMOUNT OF $1,080,000 FROM THE FRIENDS OF THE PALM SPRINGS
MOUNTAINS; ACCEPT THE DEDICATION AND CONVEYANCE OF THE
REMAINDER OF THE FORMER SHADOWROCK PROPERTY OF 350+/- ACRES AT
NO COST FROM THE FRIENDS OF THE PALM SPRINGS MOUNTAINS; AND
ACCEPT THE DEDICATION AND CONVEYANCE OF THE 220+/- ACRE PARCEL OF
LAND KNOWN AS ANGEL COVE AT NO COST FROM THE FRIENDS OF THE PALM
SPRINGS MOUNTAINS:
RECOMMENDATION: 1) Approve the purchase of an approximate 24 acre parcel of
land (a portion of the former Shadowrock Property) within the Chino Cone from the
Friends of the Palm Springs Mountains, in the amount of $1,080,000; 2) Accept the
dedication and conveyance of an approximate 350 acre parcel (the remainder of the
former Shadowrock Property) from the Friends of the Palm Springs Mountains at no cost;
3) Accept the dedication and conveyance of an approximate 220 acre parcel of land
(known as Angel Cove) from the Friends of the Palm Springs Mountains at no cost; 4)
Authorize the City Manager to execute all document to effectuate the purchase and
dedications; and 5) Authorize the City Clerk to execute the Certificate of Acceptance and
recording of all documents.
Materials to Follow
Item No. 5 . F .
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c4400 CITY COUNCIL STAFF REPORT
DATE: NOVEMBER 4, 2015 NEW BUSINESS
SUBJECT: APPROVE THE PURCHASE OF A 24+/- ACRE PARCEL OF LAND, A
PORTION OF THE FORMER SHADOWROCK PROPERTY WITHIN THE
CHINO CONE, IN THE AMOUNT OF $1,080,000 FROM THE FRIENDS
OF THE PALM SPRINGS MOUNTAINS; ACCEPT THE DEDICATION
AND CONVEYANCE OF THE REMAINDER OF THE FORMER
SHADOWROCK PROPERTY OF 350+/- ACRES AT NO COST FROM
THE FRIENDS OF THE PALM SPRINGS MOUNTAINS; AND ACCEPT
THE DEDICATION AND CONVEYANCE OF THE 220+/- ACRE PARCEL
OF LAND KNOWN AS ANGEL COVE AT NO COST FROM THE
FRIENDS OF THE PALM SPRINGS MOUNTAINS.
FROM: David H. Ready, City Manager
BY: Douglas Holland, City Attorney
SUMMARY
The City Council will consider the acquisition of a 24-acre parcel and the subsequent
conveyance of several hundred acres of land within the Chino Cone area of the City as
permanent open space for conservation purposes consistent with the Multi-Species
Habitat Plan, and fund the purchase from General Fund balance.
RECOMMENDATION:
1. Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR
FISCAL YEAR 2105-16 FOR PROPERTY ACQUISITION."
2. Approve the purchase of an approximate 24 acre parcel of land (a portion of the
former Shadowrock Property) within the Chino Cone from the Friends of the
Palm Springs Mountains, in the amount of$1,080,000.
3. Accept the dedication and conveyance of an approximate 350 acre parcel (the
remainder of the former Shadowrock Property) from the Friends of the Palm
Springs Mountains at no cost.
ITEM NO. S,f.
City Council Agenda
Chino Code Acquisitions
November 4, 2015
Page 2
4. Accept the dedication and conveyance of an approximate 220 acre parcel of land
(known as Angel Cove) from the Friends of the Palm Springs Mountains at no
cost.
5. Authorize the City Manager to execute all documents to effectuate the purchase
and dedications.
6. Authorize the City Clerk to execute the Certificates of Acceptance and recording
of all documents.
Discussion:
The Chino Cone is a unique geographical and environmental resource in the City of
Palm Springs. The pristine critical habitat and scenic open space of the Chino Cone
has been a battleground between those who have wanted to preserve the land in its
natural state and those who have wanted to create special development opportunities
that could take advantage of the natural beauty of the areas. In the most recent past, a
large area of land in the heart of the Chino Cone was proposed for development as a
resort, accentuated with exclusive residential homes, and anchored with a golf course.
This project consisted of approximately 375 acres and was known as "Shadowrock."
This project was ultimately abandoned for a variety of reasons. The City Council
adopted a Specific Plan for the entire Chino Cone that placed significant development
limitations intended to minimize disruption of the topography of the land and maximize
preservation of the natural habitat of the area. This plan includes provisions that
encourage transfers of development density off of the Chino Cone.
Rather than rely on the City's restrictive land use regulations to regulate development,
the Friends of the Palm Springs Mountains commenced a program to acquire several
privately held parcels of land within the Chino Cone. In 2012, the Friends acquired
approximately 220 acres of land at the mouth of the Chino Cone commonly known as
Angel Cove and Ship Rock. This acquisition was funded by a grant from the Coachella
Valley Mountains Conservancy ("CVMC"). This acquisition was followed in 2014 with
the acquisition of 350 acres of the Shadowrock property, funded by grants from the
CVMC, U.S. Fish and Wildlife Service ("USFWS"), and the California Wildlife
Conservation Board ("CWCB"). Later in 2014, the Friends also acquired the last piece of
Shadowrock, a parcel of approximately 24 acres, through a separate purchase
arrangement funded in part by a secured promissory note, held by the property owner in
the amount of$1 million dollars with interest, due and payable on December 31, 2015.
The City of Palm Springs by 2010 had acquired approximately 1500 acres of land in the
foothills and mountains overlooking the Chino Cone. In 2013, the City also acquired
approximately 25 acres of land northeast of the Friends Angel Cove/Ship Rock property.
The Angel Cove/Ship Rock property by the Friends are burdened by deed restrictions
required by the CVMC, the agency that provided the grant funds for acquisition. These
deed restrictions include the requirement to "maintain the property acquired for
City Council Agenda
Chino Code Acquisitions
November 4, 2015
Page 3
conservation of its biological and scenic resources in perpetuity." The express purpose
of the grant is for "conserving the land in its current, undeveloped state ... and to protect
and maintain the property for conservation purposes." The Friends as the grantee are
obligated to "use, manage, operate and maintain the real property in a manner
consistent with the purpose of the acquisition" and to assume "all management,
operation and maintenance costs associated with the real property ..."
The Shadowrock property of approximately 350 acres acquired by the Friends through
local, state, and federal grant funds is also burdened by deed restrictions. In this case,
the grant conditions provide
"[T]he Property shall be held and used for . . . assisting in the conservation
associated with the Natural Community Conservation Plan, permanently
protecting conservation lands within the Coachella Valley Multiple Species
Habitat Conservation Plan in southern California that identifies 11 plant and
animal species that are either State or Federally listed as threatened or
endangered, conserving vegetation communities, and protecting core habitat
and linkage areas used by the peninsular bighorn sheep as well as other
listed and sensitive species . . .."
The Friends can assign its interests in Angel Cove/Ship Rock and Shadowrock. The
grants allow the transfer of the lands to a third party but only with the express written
approval of the funding agencies and only if the third party agrees in writing to be bound
to the terms, covenants, and conditions of the grant agreements between the funding
agencies and the Friends. CVMC has recognized the City as the most likely recipient
and steward for the property.
The City Council has expressed an interest in acquiring the AngelCove/Ship Rock and
Shadowrock properties to add to its existing open space holdings adjacent to Chino
Cone not just to preserve open space and providing conservation protections for habitat
but to also provide for limited, reasonable public access to these areas. The Council
funded a trails study prepared by the Friends. This study demonstrated proposed hiking
trail routes through the Chino Cone, including portions of lands within Angel Cove/Ship
Rock, the 350 acre Shadowrock property, and the 24 acre Shadowrock property. The
City Council reviewed and accepted this study at its meeting of September 2, 2015.
The Friends have submitted the Study to the funding agencies; it is staffs
understanding that only CVMC has commented on the Study as of the date of the Staff
Report. (CVMC was reportedly supportive of the Study and the proposed trails.) The
state and federal agencies have not commented on the Study.
The grants that funded the acquisition of all of the Chino Cone properties recognize that
these lands are within the Coachella Valley Multiple Species Habitat Conservation Plan.
The preservation and protection of the conservation goals within the Plan are express
conditions of approval of the grants. Although the Plan provides for a process to review
and approve hiking trails within the planning area, the Plan does not show any trails on
Angel Cove/Ship Rock or Shadowrock properties, the grants do not expressly
City Council Agenda
Chino Code Acquisitions
November4, 2015
Page 4
acknowledge trails or the trail review process as applicable to these properties, and the
grants do not expressly recognize the Plan as the policy statement that governs the use
and management of property within the Plan.
Informal discussions with representatives of the state and federal agencies suggest that
the state and federal agencies will defer to local decisions regarding trail
implementation. No written commitments or assurances have been provided and
acceptance of the City's adopted trail study by the state and federal agencies will not be
forthcoming for at least three or four months.
The deadline for acquiring the 24 acre Shadowrock property is December 15, 2015.
The Friends have not raised the funds to pay the note owed to the current property
owner and the property owner will exercise its rights to foreclose on its lien on the
property if payment in full is not made by the deadline. Thus, if it is the desire of the
City Council to acquire the property, close of escrow and payment of the outstanding
note and interest in the amount of approximately $1,080,000 would need to be
completed by the December 15, 2015 deadline.
Closing escrow on the 220 acre Angel Cove/Ship Rock and 350 acre remainder of the
Shadowrock properties is more problematic and may be dependent on the extent to
which the Council will seek assurances from the state and federal agencies that trails
may be allowed on these properties. These conveyances will also be contingent upon
the timeliness of securing approval by CVMC, USFWS, and CWCB of the conveyances
from the Friends to the City.
FISCAL IMPACT:
There is not a Fiscal Year 2015/16 budgeted funding source for the purchase of this
property. The $1,080,000 purchase price would require a supplemental appropriation
from the City's General Fund Balance. Currently, the Fund's balance is approximately
$14.5 million. City Staff has prepared a budget resolution to approperiate funds from
General Fund balance.
DouglasZolland, City Attorney DavidKeady�City M r
Attachment:
Proposed Budget Resolution
Map of Chino Code Area (to follow)
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET
FOR FISCAL YEAR 2015-2016 FOR PROPERTY
ACQUISITION.
WHEREAS, Resolution No. 23838 approving the Budget for the Fiscal Year
2014-2015 was adopted on June 17, 2015; and
WHEREAS, the City Manager has recommended, and the City Council desires to
approve, certain amendments to the budget for Fiscal Year 2015-2016.
NOW, THEREFORE THE CITY COUNCIL DETERMINES, RESOLVES AND
APPROVES AS FOLLOWS:
SOURCE(S):
Fund Activity Account Amount
001 Fund Balance $1,080,000
General
Fund
ADDITION(S):
Fund Activity Account Amount
261 Land Acquisition $1,080,000
PURPOSE: Property Acquisition on the Chino Cone.
PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS 4TH DAY OF NOVEMBER, 2015.
DAVID H. READY, CITY MANAGER
ATTEST:
JAMES THOMPSON, CITY CLERK
Resolution No. _
Page 2
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on November 4, 2015, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
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Mayor Stcv-c. Pougnct --iv.
City ot'Palm Springs �� to ar0
3200 Last I ahyui(/ Canyon Way t—c i r
Pahn Springs. California 9226- s nr"
tiuhject City Council Agenda Item i.F. (Proposed Dedication ofthc Dormer Shadnwpaek—
Property)
Dear 41avor Pougnet:
[lie t '.S. Dish and Wildlife Senicc(Semice) and the Calil'ornia Department of l-ish and
%% ildlite (Department) (collectively, the Wildlife Agencies) have reviewed the City Council
Staff Report and No%ember 4, 21f 15, Meeting Agenda available on the City of'Palm Spring's
(( ity) vvebsite_ Under the Now Business Section 5.1 ., it appears that the City Council is
considering the approval nfthe purchase ofa 24•/-acre parcel of land, which is a portion of
the loaner Shadowrock property within the Chino ('one from the hriends of dic Palm Springs
Mountains IFPSM): acceptance of the dedication and com evancc of the remainder of tite
former Shadownwk property af350t�-acres:and acceptance of the dedication and
conveyance of the 220t.-ocrc parcel of land known as Angel Cove'Shiprock.
Pie Wildlife Agencies are requesting that (lie agcnda itern regarding, the acceptance of dic
dedication and convcy`ance of the `1 O0 .-acre Shadowrock property he continued and not
detest on until coordination with the Wildlife Agcncies regarding the terms of am proposed
transteer crf the 3>0- -acre Shadowrock property can he discussed with troy now potential
suhi,rante . FP.SM hang entered into grant and subgrant agreements with the Wildlife
Agencies and the CVMC regarding the Shadowrock propem. Pursuant to 43 CFR 12.71.
subgrant (SO-140,[Y), and the associated grants documents, the Wildlife Agencies and the
Coachella Valley Mountains Conscrv-ancy jUVM( ) roust authorirc the transfer of the
propem prior to art% action to dedicate or convec the Shadowrock property. I1ac subgrant
apteement states that the Shadowrock property "shall not be sold. transferred, exchanged, or
otherwise atmeyed" without the granting agencies- authorisation.
the 352-acre Shadowrock property was purchased tun $4,410,000, with funding From u
I ederal Fndangered Species Act section 6 grant to the Department. along with matching
funding from the Wildliic Consarnation Board and C'VMC. t he Shadowrock property was
purchased for "._the conscrcaticnl associated with the Natural Community Consmation
Plan. pennanenth protecting conservation lands within the Coachella Valley MUltif le
Species I labitat Couserv:aion Plan in southern Calilurnia that identities I I plant and animal
species that are either State or Federaliv listed as threatened or endangered, conserving
vegetation communities, and protecting core habitat and linkage areas used by the PCIlin5nlat'
bighorn sheep as well as other listed and sensitive species."
IflegZOfS
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4Ia%or Sic%c Pougrlct 11 WS'('I)FW-16('PA002-,
the funding agreements and recorded deed restrictions executed by FPSM limit the uses of
the land to those consistent with the grant and require that the property he managed to protect
its habitat values. Consent from the Wildlife Agencies is given only after ongoing compliance
with such restrictions has been assured. We are availahle w meet and discuss the process liar
transferring lands that are were purchased kith section 6 and State grant funds. Accordinglk.
the Wildlife Agencies would greath appreciate the continuance of this portion ul the subject
item Gum the City Council Agenda at the November y, 2015, Cih Council meeting.
Please contact Ileather Pert of CDFW of (N>x) 19i-9692, or Mary Beth Woulle o(the Scry ice
at 1700)yi 19440. cmension 294. if you have am questions.
Sincere!\.
L }N
Krnnnn A Core\ I e%lie MacNnir
Assistant Ficld Supervisor Regional Manager
i '.S. Fish and Wildlite Service Calitornia Department of Fish and Wildlife
cc:
fleck} Miller. ( '.S. Fish and W ildlite, W ildlilc Sport Fish Restoration Program
Dan Cox. I'.S. Fish and Wildlife. Regional l)flicc
,Icnness McBride. I S. Fish and W'ildlile
John Walsh, A ildlife Conservation Board
Jasen Yee. Wildlife Conservation Board
Paul I cv%in, ('itv of Palm Springs Mayor Pro 1 cm
(finny Foal. City of Palm Springs C'ouncilmemhcr
Rick I lutcheson. City of Palm Springs('ouncilmemfxr
Chris Mills, City of Palm Springs Councilmemher
Da\id 11. Ready, ('ity of Palm Springs Manager
James Ihompson. City of Palm Springs Chief of Stall'
Marcus Fuller, ('6 of Palm Springs Assistant Manager
DuaglaS C. I lulland. City of Palm Springs Anomey
icoft'rev S. Kichl. Director of Finance and I reasurer
Nickic McLaughlin. Chair Friends of Palms Springs Mountains
Jim Karpiak. Coachella Valley Mountain ('onscrvancy
I onl Kirk, Coachella Valley Conscrcatiun Commission
Jennifer Nelson
From: Nickie McLaughlin <nixmacl@aol.com>
Sent: Tuesday, November 03, 2015 1:12 PM
To: Douglas C. Holland
Cc: David Ready; Steve Pougnet; Paul Lewin; Chris Mills; Ginny Foat; Rick Hutcheson;Jono
Hildner;Jeff Morgan; Pete Dangermond; Karin Winters
Subject: Agenda Item 5F 11/4/15
Dear Doug,
On behalf of the board of Friends of Palm Springs Mountains we would like to sincerely thank the staff and city
council for generously supporting the purchase of the 24-acre parcel, which will finally preserve, in perpetuity,
the entire former Shadowrock property within the Chino Cone.
One item of concern in the resolution is tying the dedication and conveyance of the remaining property into the
purchase of the 24 acre parcel as we are not yet in a position to do so.
Firstly we need to retain the property so we may continue to raise funds to retire the out standing deb,t and
secondly, per our agreements, we need to obtain permission from the agencies.
Therefore Friends would like to suggest the following for your consideration and in particular have Resolutions
2 and 3 continued.
Resolution One - Approve the purchase of the 24 acre parcel of land, a portion of the former Shadowrock
property within the Chino Cone, in the amount of 1,080,000 from the Friends of Palm Springs Mountains
Resolution Two - Authorize staff to coordinate the conveyance of the 210+ acres known as Angel Cove to the
city at no cost, following the approval of the Coachella Valley Mountains Conservancy who provided
the funding and adoption by the city of all conservation agreements and guidelines.
Resolution Three—Authorize staff to coordinate the conveyance of the remaining 350+ acres, formerly known
as Shadowrock to the city at no cost, following approval by the three agencies who provided the funding for
purchase of the property and adoption by the city of all existing conservation agreements and guidelines.
We thank you in advance for this consideration, and look forward to a continuing partnership.
Sincerely,
Nickie McLaughlin
Chair
Friends of Palm Springs Mountains
760.835.5628
i
RECEIVED
OF PALM Sc,.
PROTECTING OUR NATURAL AND CUL.JO% I E
JAMES THQhr:,_ i''
CITY CLERK
November 3,2015
Mayor Steve Pougnet
Councilmember Ginny Foat
Councilmember Rick Hutcheson
Councilmember Paul Lewin
Councilmember Chris Mills
City of Palm Springs
3200 East Tahquitz Canyon Way
Palm Springs, California 92262
RE: City Council November 4,2015 Agenda Item S.F; Request for Partial
Continuance
Dear Mayor and Councilmembers:
The Coachella Valley Mountains Conservancy("CVMC'�respectfully requests that the
Council delay action on the portions of the above agenda item identified in the staff report as
Recommendations 3 and 4, relating to the acceptance by the City of an approximately 350-
acre parcel(known as a portion of the former Shadowrock property) and an approximately
220-acre parcel(known as Angel Cove)from the Friends of the Palm Springs Mountains
("FOPSM"). The delay would allow for discussions with CVMC and the other agencies that
funded the initial purchases of those properties for conservation.
As additional background information,CVMC funded the entire purchase price of$1.475
million for Angel Cove in 2012,and contributed$781,000 in 2014 for the Shadowrock
acquisition to match$3.6 million in funding from the U.S.Fish and Wildlife Service,
California Department of Fish and Wildlife, and State of California Wildlife Conservation
Board, for a total federal and state investment of almost$5.9 million for the Chino Cone
preservation projects. In order to protect this substantial public investment and in
accordance with the requirements of the funding sources (Federal Endangered Species Act
section 6 grants and California's Proposition 84 bond funds),the lands are encumbered by
deed restrictions that(i)limit activities on the properties, (ii)require that they be managed to
protect their habitat values and(iii)prohibit transfers of ownership without the consent of the
funding agencies.
Historically,the consent of CVMC and the other granting agencies for transfer has not been
given until an agreement has been reached with the transferee about ongoing monitoring,
73-710 Fred Waring Drive, Suite 112, Palm Desert, CA 92260 (760) 776-5026 www.cvmc.ca.gov
maintenance activities and other grant compliance issues. While there have been some initial
discussions with FOPSM about those matters at Angel Cove and Shadowrock,no agreements
have been reached and not all of the funding agencies have been involved. Indeed, CVMC
learned only Monday that the transfers were to be considered by the City Council tomorrow.
night. Consequently, CVMC has not yet consented to the transfer and to our knowledge,
neither have the other funding agencies.
To be sure, CVMC greatly appreciates and commends the City's willingness to consider
taking responsibility for ongoing management of this large and very significant conservation
project. Indeed, CVMC,FOPSM and other organizations worked for many years with the
support of City officials to acquire the Chino Cone lands for conservation,and the City's
formal participation could surely strengthen the conservation partnership. Without
participation by all of the stakeholders in the transfer process,however,misunderstandings or
disagreements could plague the project in the long term, thereby diminishing the
effectiveness of ongoing management of the spectacular Chino Cone.
Sincerely,
nR.Karpiak
Executive Director
cc:
David H. Ready, City Manager
Douglas C. Holland,City Attorney
James Thompson, City Clerk
f