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STAFF REPORT. From the San Mateo County Supervisors Agenda for meeting held on Tuesday, March 8th, 2022 at 9:00am by Zoom.
Adopt a resolution:
A) Declaring the Board of Supervisors’ intent to purchase the approximately 5.27- acre Big Wave South Parcel (County APN 047-312-040), (“Property”), located in the unincorporated Princeton-by-the-Sea area of the County, on Airport Street, adjacent to the County’s Half Moon Bay Airport, for a total purchase price of $2,470,000; and
B) Authorizing the President of the Board of Supervisors to execute a Real Estate Purchase and Sale Agreement and Escrow Instructions (“Agreement”) with the owner of the Property, the Big Wave Group, for the County’s acquisition of the Property; and
C) Authorizing the County Manager, or his designee, to execute a Certificate of Acceptance upon satisfaction of certain conditions in escrow, to be recorded with the Grant Deed transferring title to the Property to County, as well as any and all notices, escrow instructions, and documents required to facilitate the purposes of the Agreement.
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Manager
Subject: Purchase and Sale Agreement for the Acquisition of the Big Wave South Parcel Near Half Moon Bay Airport
RECOMMENDATION:
Adopt a resolution:
A) Declaring the Board of Supervisors’ intent to purchase the approximately 5.27- acre Big Wave South Parcel (County APN 047-312-040), (“Property”), located in the unincorporated Princeton-by-the-Sea area of the County, on Airport Street, adjacent to the County’s Half Moon Bay Airport, for a total purchase price of $2,470,000; and
B) Authorizing the President of the Board of Supervisors to execute a Real Estate Purchase and Sale Agreement and Escrow Instructions (“Agreement”) with the owner of the Property, the Big Wave Group, for the County’s acquisition of the Property; and
C) Authorizing the County Manager, or his designee, to execute a Certificate of Acceptance upon satisfaction of certain conditions in escrow, to be recorded with the Grant Deed transferring title to the Property to County, as well as any and all notices, escrow instructions, and documents required to facilitate the purposes of the Agreement.
BACKGROUND:
In May of 2015, the Board of Supervisors granted several approvals related to development on two parcels of land owned by the Big Wave Group, a California non-profit corporation (“Big Wave”), located in the unincorporated Princeton-by-the Sea area of the County, adjacent to the Pillar Point Bluff and Pillar Point Marsh Preserves. Those parcels are known as the North Parcel and the South Parcel. The Board approvals included development of the North Parcel with a Wellness Center, which would include accommodations for developmentally disabled adults, as well as for support staff.
To help fund construction and operation of the Wellness Center, Big Wave approached County staff and offered to sell the approximately 5.27- acre South Parcel to the County. Staff has been researching potential uses for the Property while analyzing the condition and value of the Property to the County. Pillar Point Ridge, west of the Property, lies between the marsh and the coastline and offers recreational hiking trails.
DISCUSSION:
The County’s Waterfront Zoning District Regulations applicable to the Property allow marine-related assembly and educational uses. Potential uses include a community center, a nature center, general open space designation, and agricultural use. Any future development would be subject to a Coastal Development Permit at the time of project submittal.
The Purchase and Sale Agreement (“PSA”) sets the purchase price for the Property at $2,470,000, with a thirty-day escrow. The purchase price was established by appraisal and negotiations based on several factors and conditions. The County is supportive of Big Wave’s efforts to bring the Wellness Center to fruition and recognizes the recreational, agricultural and conservation values of the Property.
There are several conditions that must be satisfied by Big Wave prior to closing escrow. Big Wave must comply with all conditions of approval set forth in the Joint Subdivision Improvement Agreement between the County of San Mateo and Seller, dated June 20, 2019 (hereinafter “Development Agreement”), including any subsequent amendments. All liens or encumbrances recorded against the Property, or the adjacent property currently identified as San Mateo County Assessor Parcel Number 047-311-060 (the “Big Wave North Parcel”), shall be removed, replaced or extinguished to the satisfaction of County.
An escrow or similar account (“Construction Account”) will be established by Big Wave prior to closing escrow for the deposit by the Escrow Officer of the entire Purchase Price, except that proceeds will first be paid to the County for any outstanding fees owed to the County for approval of the subdivision that provides for construction of the Wellness Center and associated structures. Disbursements from the Construction Account may be used only to fund control and title fees to close, and disbursing the net balance to ConstructSure, LLC for construction costs to be paid on behalf of Big Wave. A license agreement will be granted by the County to Big Wave to allow the continued use of a portion of the Property for agricultural purposes.
On August 11, 2021, the County’s Planning Commission considered conformity of the acquisition of the South Parcel with the County’s applicable General Plan. The Commission considered the existing zoning as Waterfront/Airport Overlay/Design Review/Coastal Development, its General Plan Designation as General Industrial and General Open Space, and its existing land use as agricultural. Based on information provided by staff and evidence presented at the hearing, the Planning Commission found that the proposed acquisition of the South Parcel by the County for the purpose of potentially constructing a nature center and/or community center, as well as the long-term protection of natural and cultural resources on the Property, conforms to the County general Plan.
According to the terms of the PSA, escrow will be opened once a fully executed agreement is submitted and is set to close within thirty days, subject to extension by mutual agreement. Staff will work with Big Wave to ensure all conditions set forth in the PSA have been satisfied. Once those conditions are satisfied, a Certificate of Acceptance will be executed and recorded concurrently with the grant deed, thereby vesting title to the South Parcel in County.
FISCAL IMPACT:
The costs of the purchase the approximately 5.27- acre Big Wave South Parcel (County APN 047-312-040) will be paid with County General Fund. The appropriation for this agreement has been included in the Fiscal Year 2021-22 budget.
Big Wave Sells 5.2 Acre South Parcel to San Mateo County County for Possible Community Center
VIDEO. From the San Mateo County Planning Commission meeting on Wednesday, August 11th, 2021 by Zoom.
The Daily Journal: San Mateo County Acquires 5 Acres Of Coast Land By Sierra Lopez Daily Journal Staff Aug 12, 2021
August 28th, 2021
From the Midcoast Community Council (MCC) website
Big Wave Wellness Center & Business Park
North Parcel Alternative – Approved 2015
[Scroll down for the original, larger, Big Wave Project denied on appeal to the Coastal Commission in 2012.]
The Big Wave North Parcel Alternative (NPA) is a revised project (PLN2013-00451) that received final County approvals in May 2015. The NPA combines the Wellness Center with the Business Park on the north parcel, reduces building height to 33 feet, reduces commercial/industrial space to 176,000 s/f, increases the wetlands buffer areas, and has the project served by public water and sewer. Intensity of uses permitted in the Business Park would be limited by what can be accommodated by the north parcel’s 462-space parking lot. Construction is proposed over 15 years per Development Agreement with the County.
Aug 2021 County purchases BW south parcel (staff report) after acquiring a lien in 2020 (lien agreement – resolution).
June 2021 Development Agreement 3rd amendment – BoS staff report
Feb 2021 First building permit issued (for Wellness Center) – building footprint/location.
July 2019 Development Agreement 2nd amendment to modify the Wellness Center from 3 to 2 buildings, modify requirements for the Airport St bike trail & drainage crossing, extend the deadline for wetland restoration and first 25 bedrooms of the Wellness Center, and remove the requirement for LEED building standards. (staff report – revised Findings & Conditions of Approval)
June 2017 CDP and first Development Agreement Amendment to allow commercial building (on Lot D in this image) to be constructed before the Wellness Center. Prospective tenant later backed out and building permit for Lot D has not been pursued as of 2021.
5/24/17 MCC comments, presentation, news post with docs.
Jan 2017 MCC comments on earlier proposed modification.
North Parcel business park subdivision lots For Sale in 2016 – Build to Suit
Nov 2015 LAFCo sphere of influence amendment for MWSD to supply water to Big Wave — 4400-ft-long water main extension to be paid for by developer.
May 2015 Board of Supervisors approved Coastal Development Permit with revised conditions.
Letter of Decision & Conditions of Approval (rev 6/6/17)
15-year Development Agreement (revised 6/6/17)
Appeal – Meeting Notice – Staff Report – Attachments – Comments from CCC staff and CGF
Jan 2015 Planning Commission approved 8-building project. Staff Report, Presentation, Video, Letter of Decision. Comments: MCC, CCC, CGF, Surfrider, Sierra Club
Existing aerial view vs project simulation
Dec 2014 new 8-building option: comments: MCC, CCC
Nov 2014 Planning Commission: Staff Report – Video
New 4-building option: site plan – aerial simulation – 2014 Transportation Analysis (Hexagon) – EIR Addendum. Comments: MCC, CGF
Aug 2014 PC & MCC informational meetings
Planning Commission staff report & MCC 8/13 meeting video.
MCC comments 8/27/14 & meeting video
CCC staff comments 9/2/14
July 2014 NPA Project Description (9 buildings) – Site Plan and 2010 plans for comparison.
Mar 2014 NPA Project Description: comments by MCC & CCC — LAFCo letter re process for water provision
Nov 2013 NPA Project presentation at MCC – minutes & video
Big Wave Project – Denied in 2012
was a major development proposed in 2006 for 20 acres (2 parcels) of agricultural land and wetlands along Airport St. between HMB Airport and Pillar Point Marsh.
Big Wave Office Park (PLN2005-00481) on the 14-acre north parcel next to the Pillar Ridge Manufactured Home Community consisted of 225,000 s/f mixed-use office space in 8 buildings (four 2-story, 36 ft tall, and four 3-story, 46 ft tall), and 640-space parking lot. Projected traffic impacts included over 2,000 car trips per day to/from the site over indirect narrow roads. Project included major subdivision (2 lots into 13) and 20-year development agreement.
Big Wave Wellness Center (PLN2005-00482), on the 5-acre south parcel next to Princeton, proposed to provide affordable housing for up to 50 developmentally disabled adults and 20 caretakers, along with a fitness center, indoor pool, and potential employment opportunities for the residents. Also included was parking for 50 cars for staff and visitors and, on a subdivided parcel, 20,000 sf of commercial storage.
The project was approved by the County in 2011 but denied on appeal to the Coastal Commission (CCC) in 2012 due to many inconsistencies with the Local Coastal Program (LCP). The first 4 pages of CCC staff report summarize the reasons for denial and the issues a revised project would need to address in order to gain approvals. Video of Coastal Commissioners’ response is here.
Aug 2012 CCC staff report:
“In order to address LCP requirements and the various resource constraints on the site, a revised project would need to demonstrate an adequate and reliable water supply, reliable waste water/sewage disposal capacity, adequate protection of natural resources, such as the Pillar Point Marsh area and surrounding wetlands, minimization of significant impacts to important public views, sufficient traffic capacity, the minimization of significant shoreline hazards at the project site; and the protection of agricultural resources consistent with the requirements of the certified LCP.”
2010 comments from DPW Airports, Caltrans, FAA
2009 Big Wave video with Neil Merrilees
2006 pre-application workshop: 155,000 sf office park in four 2-story bldgs
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2002 grading permit application was denied for 44,000 cy of fill on Big Wave north parcel for undetermined future development. MCC 8/26/02 comment to planner, “The applicant stated during the meeting that this proposed plan was for a major Commercial Development in the M-1 zoning, however, they were unable to obtain water for that project which has since been canceled. Currently, the applicant is undecided on a final proposal for the site and is only going to use it for storage.”
San Mateo County Supervisors
2022 BOARD OF SUPERVISORS
DISTRICT 1
Dave Pine
Vice President
DISTRICT 2
Carole Groom
DISTRICT 3
Don Horsley
President
DISTRICT 4
Warren Slocum
DISTRICT 5
David Canepa
