March 16, 2004
SUBJECT: SALE OF VACANT LAND ON MANZANO WAY BY THE SAN FRANCISCO PUBLIC UTILITIES COMMISSION
REPORT IN BRIEF
The City of Sunnyvale received a letter from the San Francisco Public Utilities Commission (SFPUC) inquiring whether the City of Sunnyvale would be interested in acquiring two parcels of SFPUC owned vacant land on Manzano Way, near Fairwood Park (Attachments A, B, and C). Under California law, a public agency (in this case SFPUC) is required to notify surrounding public agencies of the availability of property prior to its disposition.
The area of disposition, otherwise known as Parcel #145, is located at the eastern end of the John W. Christian Greenbelt. This parcel has been subdivided into three lots with the northernmost lot remaining as the east end of the Greenbelt while the two southern lots are available for purchase. The two lots being sold are approximately 6,000 square feet in area, are zoned for residential single family units and are adjacent to a Santa Clara Valley Water District flood control channel otherwise known as Calabazas Creek. The lots have nominal recreational improvements in accordance with the conceptual plans for improvements to the John W. Christian Greenbelt contained in Report to Council #94-484 on September 20, 1994. The conceptual plan noted that this area would contain a “fenced area for remote control vehicles.”
The SFPUC has placed the value of the two lots at $680,000.00. Staffs from the departments of Public Works, Parks and Recreation and Community Development have discussed whether there would be any interest in acquiring these parcels from a City perspective. Staff is very interested in maintaining the integrity of the John W. Christian Greenbelt, as well as the ability to connect the greenbelt to the Calabazas Creek Trail and Baylands Park. However, neither of these objectives would be threatened by the sale of the two lots in question. Staff does not believe the limited benefit of purchasing for either a low income housing site or a radio-controlled vehicles site justifies the $680,000 asking price; especially given the City’s current financial situation. The City has until March 25, 2004 to indicate whether it has any interest in the subject properties. Should Council determine not to purchase these lots, staff will notify the SFPUC Real Estate Services Division that the City should be notified when the property is sold in order to coordinate any bicycle path construction activity with the new owner(s).
Additionally, staff would post informational fliers at the site to determine what if any interest exists in finding alternative modeling locations for the future. The sale of these two parcels would not impact the Calabazas Creek Trail Project or the John W. Christian Greenbelt.
DISCUSSION
Staff from the department of Public Works and the City Attorney’s Office have been in permit negotiations with SFPUC for the remaining portion of parcel #145, directly to the north of the subject properties. This parcel is the eastern end of the John W. Christian Greenbelt and is to be used in a project to connect it to the Calabazas Creek Trail across the flood channel from the City of Santa Clara.
At present, these negotiations are almost complete and should secure continued use of the area for pedestrian and bicycle traffic and associated landscaping. It was determined that the two parcels of vacant land were not needed for this project. This assessment was made during the project design phase last year when SFPUC first approached the City with their plans to subdivide existing excess Hetch Hetchy right of way into residential lots for sale.
The City’s Housing Division had considered these parcels for possible use as a low-income housing site. However, due to the very small area of the lots which would severely restrict the number of housing units that could be constructed, and the high costs involved, it was determined that a low-income project would not be economically feasible.
Parks and Recreation Department staff have considered the potential City purchase of the two lots and likely impacts to recreational uses. The John W. Christian Greenbelt is the key recreational facility in this location and the two lots are not needed to continue use of the Greenbelt. The lots that are for sale were improved nominally in accordance with Council direction and currently provide space for remote control model use. That is, the City has constructed a fenced enclosure and a sidewalk to access the area. There are no verbal or written agreements with any organized model vehicle clubs and staff is not aware of any measurable amount of modeling use at the site. Staff has contacted the Lakewood Village Neighborhood Association President, Phyllis Murphy to notify the community of potential changes of use and opportunity for purchase of the two lots.
While staff sees occasional, visual evidence of model vehicle use, Ms. Murphy noted that the area is very seldom used and that its absence for use would not likely impact the neighborhood. Currently there is no similar model vehicle site in the City. While the land could be purchased to secure this site as a permanent location for remote control vehicle enthusiasts, staff does not suggest this is a high priority in light of the current fiscal crisis. Should the City determine not to purchase these lots, staff would post informational fliers at the site to determine what if any interest exists in finding alternative modeling locations for the future.
FISCAL IMPACT
There would be no fiscal impact as recommended.
PUBLIC CONTACT
Public contact was made through posting of the Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web page, publication of the Council agenda in the San Jose Mercury News, and the availability of the report in the Library and the City Clerk’s Office.
ALTERNATIVES
1. Notify the SFPUC that the City of Sunnyvale is not interested in purchasing the vacant land parcels on Manzano Way but that it would like to be notified of any change in ownership.
2. Notify the SFPUC that the City of Sunnyvale is interested in purchasing the vacant land parcels on Manzano Way and direct staff to secure the appropriate funding through a budget modification.
RECOMMENDATION
Staff recommends Alternative number 1.
Prepared by:
Michael A. Chan
City Property Manager/Senior Administrator
Reviewed by:
Marvin A. Rose
Director of Public Works
Reviewed by:
Robert Walker
Director of Parks and Recreation
Approved by:
Amy Chan
Interim City Manager
Attachments
A. Letter from San Francisco Public Utilities Commission
B. Hetch Hetchy Right of Way Parcel Map
C. Tentative Parcel Map, Manzano Way