CC SR 20150901 D - Purchase Tax Default PropertyCITY OF
MEMORANDUM
RANCHO PALOS i
TO: HONORABLE MAYOR & CITY COUNCIL MEMBERS
FROM: CAROLYNN PETRO, AICP, DEPUTY CITY MANAGER
DATE: SEPTEMBER 1, 2015
SUBJECT: PURCHASE OF TAX -DEFAULTED PROPERTY AT
8 CHAPARRAL LANE (APN 7568-019-032)
REVIEWED BY: DOUG WILLMORE, CITY MANAGER MAIL)
Project Manager: Kit Fox, AICP, Senior Administrative Analyst
RECOMMENDATION
Authorize the Mayor and City Clerk to sign an Agreement to Purchase Tax -Defaulted
Property with the Los Angeles County Treasurer and Tax Collector for a vacant parcel
at 8 Chaparral Lane (APN 7568-019-032).
EXECUTIVE SUMMARY
Staff has identified one (1) tax -defaulted parcel in the City that is being offered for sale
by the County that may be suitable for City ownership for public trail purposes. Staff
requests that the City Council authorize Staff to pursue the acquisition of this parcel.
FISCAL IMPACT
Initially, the City's request to purchase tax -defaulted property must be accompanied by
a filing fee of $100 per parcel. The City will incur no other expenses at this time, unless
the County agrees to sell the property to the City rather than at public auction.
If the City eventually purchases this property, Staff anticipates the additional cost will be
approximately $36,000. In accordance with the Revenue and Taxation Code, the
purchase price for the parcel must be based on amount of property taxes due during the
month in which the parcel is eventually sold to the City. The minimum purchase price of
the property is currently estimated at $29,865, which is based on a projection of
completing the transfer within eight (8) months. This estimate does not include fees for
a Lot Book Lien Report, advertising and postage charges, which will eventually be
1
MEMORANDUM: Purchase of Tax -Defaulted Property at 8 Chaparral Lane
September 1, 2015
Page 2
included in the City's purchase price. The cost of a Phase 1 study for the property is
expected to be about $5,000. The funds to purchase would come from the General
Fund and were not included in the adopted FY2015-16 Budget. Therefore, if the
purchase goes forward, Staff will return with a resolution approving the necessary
budget adjustment for Council's consideration at that time.
BACKGROUND
Pursuant to State Revenue and Taxation Code, properties that are determined to be in
default for unpaid property taxes for five (5) years or more are periodically put up for
sale at public auction by the Los Angeles County Treasurer and Tax Collector.
However, if it is determined that a parcel is needed for public purposes, the City may
request to have the parcel removed from the auction and acquire title to the property.
The cost of acquisition is the minimum bid for the property as approved by the Los
Angeles County Board of Supervisors, plus noticing and transfer expenses. However,
parcels may be subject to removal from the auction if the owner pays the defaulted
taxes or enters into a legal process, such as bankruptcy.
DISCUSSION
Staff has received notice that two (2) parcels in the City will be offered at public auction
by the County on October 19 and 20, 2015 as a part of Tax -Defaulted Property Sale
2015A (see attachments). If the City determines that either of these properties is
needed for public purposes, the City must file a written statement setting forth the
purpose of the acquisition and the necessary Chapter 8 Agreement forms on or before
September 18, 2015.
One (1) of these properties is an existing single-family home in the Grandview
neighborhood near Palos Verdes Peninsula High School. Staff does not believe that
there would be any public value in City ownership of this parcel.
The other parcel in the City that is offered in Tax Sale 2015A is located at 8 Chaparral
Lane. Assessor's Parcel No. 7568-019-032 is a 0.55 -acre lot near the westerly
terminus of Chaparral Lane, a private street. It abuts an existing, dedicated trail
easement for the lower third of the Bronco Trail (Section 5, Segment F2), as identified in
the Conceptual Trails Plan (CTP), on the property located at 7 Chaparral Lane.' The
CTP describes the middle third2 of the Bronco Trail crossing this property or the abutting
1 The City acquired this 15 -foot -wide easement in 1979 as a condition of the recordation of
Parcel Map No. 10241, which created the lots at 5 and 7 Chaparral Lane.
2 The upper third of the Bronco Trail would presumably cross vacant lots on Bronco Drive to
reach the public right-of-way.
2
MEMORANDUM: Purchase of Tax -Defaulted Property at 8 Chaparral Lane
September 1, 2015
Page 3
property at 10 Chaparral Lane3, providing a connection from Bronco Road to the Gap
Trail (Section 5, Segment F1) and the Georgette Trail (Section 5, Segment F3) in
George F Canyon (see attached CTP excerpt and diagram of conceptual trail
alignment). As such, Staff believes that City ownership of this parcel could provide a
critical link in completing the Bronco Trail and the Georgette -George F Canyon Trail
System.
In October 2013, the current owner of this property filed an application with the
Community Development Department to build a new, single-family residence on the lot
(Planning Case No. ZON2013-00415). Based upon information submitted to the City by
the property owner, the application was deemed incomplete on October 24, 2013,
March 10, 2014, June 5, 2014, and May 29, 2015. As of the date that this report was
prepared, the application has yet to be deemed complete for processing, nor has it
received conceptual approval by the City's geotechnical consultant.4 Staff has
broached the subject of providing an easement for the Bronco Trail as a part of this
proposed project, but has received no response from the property owner about his
willingness to do so or not. In the event that the current property owner files a complete
application for the development of this property at some point in the future, the fact that
the City has expressed interest in purchasing the property will not affect the property
owner's right to process the application or redeem the property. At this time, however,
the current owner has not taken steps to complete the application and has no vested
rights to develop the property. Accordingly, Staff believes that it is appropriate to make
application to the County acquire the property for public trail purposes.
It should be noted that, in authorizing Staff to submit an application to acquire this tax -
defaulted property, the City Council is not committing to complete the purchase of it. If
the current owner redeems the property by paying the back taxes prior to the October
2015 auction, it will be withdrawn from the sale. The County charges a non-refundable
application fee of $100 to submit the application, but at any time thereafter, if the City
Council decides not to proceed with the purchase of this property, it may withdraw from
the process. However, the County Treasurer and Tax Collector does warn that entities
that fail to complete the Chapter 8 process after a property has been removed from the
3 On July 21, 2015, the City Council approved the proposal to construct a new, single-family
residence at 10 Chaparral Lane (Planning Case No. ZON2014-00143). As a part of these land use
entitlements, the property owner will be required to dedicate 20 -foot -wide easements for the Bronco and
Georgette trails (exact locations and alignments to be determined).
4 On September 22, 2006, the same property owner applied for Planning approvals to build a
new, single-family residence at 8 Chaparral Lane (Planning Case No. ZON2006-00514). In response to
information submitted to the City, this previous application was deemed incomplete on October 9, 2006,
April 6, 2007, August 24, 2007, December 18, 2007, December 15, 2008, March 18, 2009, and April 27,
2010. Due to the property owner's repeated failure to timely file a complete application over a period of
nearly four (4) years, it was administratively withdrawn by Staff on July 27, 2010.
9
MEMORANDUM: Purchase of Tax -Defaulted Property at 8 Chaparral Lane
September 1, 2015
Page 4
tax -default auction may be banned from future participation in the Chapter 8 sale
program, and may be required to pay any costs incurred by the County Treasurer and
Tax Collector.
If the City Council authorizes Staff to pursue the acquisition of this property, there will be
several additional steps to complete the acquisition. The City's Planning Commission
will be asked to consider the consistency of this acquisition with the goals and polices of
the City's General Plan. Staff will then retain the services of the City's environmental
consultant to conduct a Phase 1 Environmental Site Assessment of the property. In
addition, Staff will need to identify funding sources for this acquisition, which may entail
the presentation of a budget adjustment for the City Council's consideration at some
future date. Based upon recent experience, Staff anticipates that the acquisition
process for this property could take up to two (2) years.
ADDITIONAL INFORMATION
Tax Sale 2013A
The City Council may recall authorizing the acquisition of two (2) parcels in the Cherry
Hill Lane area (APNs 7572-004-020 and 7572-008-014) in August 2013. Staff
submitted the necessary requests to the County to acquire these properties on August
13, 2013. The owner of APN 7572-008-014 subsequently redeemed the back taxes on
the property and it was withdrawn from the tax sale. However, the necessary Chapter 8
Agreement to acquire APN 7572-004-020 (AKA, 41 Cherry Hill Lane) was submitted to
the Los Angeles County on May 7, 2014, and resubmitted again at the County's request
on March 3, 2015. At this time, the City awaits the County Board of Supervisors'
approval of our Chapter 8 Agreement application. Based upon past experience, Staff
anticipates that this process could take another year to complete.
Tax Sale 2014A
The City Council may recall authorizing the acquisition of two (2) parcels in August
2014: one in Upper Miraleste Canyon (APN 7566-015-026) and one in the Cherry Hill
Lane area (APN 7572-004-001).5 Staff submitted the necessary requests to the County
to acquire these properties on August 22, 2014. The owner of APN 7566-015-026
subsequently redeemed the back taxes on the property and it was withdrawn from the
tax sale. However, the necessary Chapter 8 Agreement to acquire APN 7572-004-001
(AKA, 37 Cherry Hill Lane) was submitted to the Los Angeles County on March 18, 2015.
5 As a part of this same tax -defaulted property sale, the Palos Verdes Peninsula Land
Conservancy also filed an application to acquire a 14.63 -acre vacant parcel in George F Canyon (APN
7568-006-008).
11
MEMORANDUM: Purchase of Tax -Defaulted Property at 8 Chaparral Lane
September 1, 2015
Page 5
At this time, the City awaits the County Board of Supervisors' approval of our Chapter 8
Agreement application. Based upon past experience, Staff anticipates that this process
could take another year to complete.
CONCLUSION
In conclusion, Staff recommends that the City Council authorize the Mayor and City
Clerk to sign an Agreement to Purchase Tax -Defaulted Property with the Los Angeles
County Treasurer and Tax Collector for a vacant parcel at 8 Chaparral Lane (APN
7568-019-032).
ALTERNATIVES
In addition to Staff's recommendation, the following alternatives are available for the
City Council's consideration:
1. Receive and file this report, thereby directing Staff not to pursue the acquisition
of this tax -defaulted property.
Attachments:
• Application to Purchase Tax -Defaulted Property from County (draft) (page 6)
• Notice of Tax -Defaulted Property Sale 2015A (page 7)
• List of properties offered in Rancho Palos Verdes (page 9)
• Aerial photo, property description and Assessor's parcel map (page 10)
• Conceptual Trails Plan (excerpt) (page 13)
• Conceptual easement alignment for Bronco Trail (page 15)
MATax-Defaulted Property Purchases\Tax Sale 2015A\20150901_StaffRpt_CC.docx
5
Application to Purchase Tax -Defaulted Property from County
This application is to be completed by eligible purchasing entities to commence purchase of tax -defaulted property by
agreement sale from the county under applicable provisions of the California Revenue and Taxation Code. Please complete
the following sections and supply supporting documentation accordingly. Completion of this application does not guarantee
purchase approval.
A. Purchaser Information
1. Name of Organization: City of Rancho Palos Verdes
2. Corporate Structure — check the appropriate box below and provide corresponding information:
❑ Nonprofit — provide Articles of Incorporation
IN Public Agency — provide mission statement (If redevelopment agency, also provide agency survey map)
B. Purchasing Information
Determine which category the parcel falls under and then check the appropriate box as it relates to the purchasing entity's
corporate structure and the intended use of the parcel:
Category A: Parcel is currently scheduled for a Chapter 7 tax sale
❑ No Purchase — State / county / taxing agency registering objection'to preserve lien only
❑ Purchase by State / county / tax agency / revenue district / redevelopment agency / special district to preserve its lien
IN Purchase by State / county / tax'agency / revenue district / redevelopment agency / special district for public purpose
❑ Purchase by nonprofit for low-income housing or to preserve open space
Category B: Parcel is not currently scheduled for a Chapter 7 tax sale
❑ Purchase by State / county / taxing agency / revenue district / redevelopment agency / special district for public purpose
❑ Purchase by nonprofit to use parcel(s) for low-income housing or to preserve open space
C. Property Detail
Provide the following information. If more space is needed for any of the criteria, consolidate the information into a
separate "Exhibit" document and attach accordingly:
1. County where the parcel(s) is located:
Los Angeles
2. List each parcel by Assessor's Parcel Number:
7568-019-032
3. State the purpose and intended use for each parcel: Development and extension of the Bronco Trail
(Section 5, Segment F2) in accordance with the City's Conceptual Trails Plan
D. Acknowledgement Detail
Provide the signature of the urchasing entity's authorized officer
DRAFT Mayor September 1, 2015
Authorized Signature
Title
Date
FORM SCO 8-16 AGREEMENT # (_
In 1014 W1W111111 E14 a NWEA1111,
MARK J. SALADINO
TREASURER AND TAX COLLECTOR
KENNETH HAHN HALL OF ADMINISTRATION
225 NORTH HILL STREET, ROOM 130
LOS ANGELES, CALIFORNIA 90012
TELEPHONE: (213) 974-0070 FAX : (213) 680-3648
HOMEPAGE
TrC.LACOUNTY.GOV
PROPERTY TAX PORTAL
August 14, 2015
RECEIVED
TO: Public Agencies and No rofi rgan* ions AIJ6 17 7i[11H
11!5
FROM: Kathy Gloster
Assistant Treasurer an! Tax Collector
The Treasurer and Tax Collector (TTC) has posted the list of properties for the 2015A
Public Auction on its website at ttc.lacounty.gov/Proptax/auction_purchaseList.htm.
These properties are tax defaulted and subject to the Tax Collectors power to sell. The
TTC will offer these properties for sale at public auction on October 19 and 20, 2015..
Some of the properties on the list may be located within your entity's jurisdiction and
suitable for a public purpose, e.g., streets, parks, conservation sites, low-income housing,
etc. If the authorizing officers of your entity determine that any of the parcels scheduled for
this auction should be set aside for a public purpose, your entity may be able to acquire title
to such properties through a Chapter 8 Agreement Sale (Agreement Sale) pursuant to
Division 1, Part 6, Chapter 8 of the Revenue and Taxation Code (R&TC).
Public agencies and nonprofit organizations, with the intent to purchase one or more
parcels through an Agreement Sale, must submit both an objection to the public auction of
such parc6l(s) on the entity's respective letterhead ("Objection") and a completed
Application to Purchase Tax -Defaulted Property from the County, form SCO 8-16
("Application"), attached. The Application must identify the parcel(s) and describe, in detail,
the public purpose for acquisition of EACH parcel.
In addition to the Objection and Application, a public agency or nonprofit must provide
information and/or documentation per the requirements in the attached Chapter 8
Agreement Sale Pre -qualification Requirements sheet, Please carefully review the
requirements, as the TTC will not process incomplete submissions. Even if an entity
submits its Objection and Application timely, the TTC will not withdraw the parcel(s)
from the auction until all required documentation is received.
Public Agencies and Nonprofit Organizations
August 14, 2015
Page 2
The TTC also requires a preliminary research fee of $100 per prope!k which the entity
must submit in the form of a check or money order along with the required materials
mentioned above. Please note that, pursuant to R&TC Section 3800, the TTC must also
recover the notification costs associated with an Agreement Sale, which is $300 per
property. Accordingly, the TTC will add this cost to the purchase price of the property for
any Agreement Sale that becomes final. State, public agencies and nonprofit organizations
may remit payment for processing fees on the entity's respective official form of payment.
County departments may remit the processing fees on a County Warrant or a Journal
Voucher Cash Transfer (JVCT),
Upon receipt of the Objection Application, required documentation, and the preliminary
research fee, the TTC will review and either approve or deny the purchase request. If
approved, the TTC will designate the public agency or nonprofit as "Pre -qualified" and
forward to the entity an Agreement Sale packet, along with instructions on how to complete
the forms and a checklist of requirements. If denied, the TTC will return the purchase
request with an explanation of the denial and any information/documentation needed for
resubmission, if applicable.
Please be advised that once pre -qualified, the Agreement Sale process is set into motion.
Accordingly, if an entity fails to complete the process, either by not providing any additional
required documentation or by not paying the purchase price upon finalization of the
Agreement Sale, the TTC may ban that entity from future purchases through the Agreement
Sale process. Additionally, the entity may be required to pay for any costs incurred by the
TTC.
Please also be aware that, pursuant to R&TC Section 3793.1, the purchase price of a
property sold through the Agreement Sale process will be the amount of outstanding taxes
and penalties that have accrued up to and including the month that the Agreement Sale is
finalized (which is approximately a six to eight month process from the submission of the
application to the completion of the sale), plus a $300 per parcel fee, as indicated above.
As such, the minimum purchase price shown on the attached listing will not be the actual
purchase price for any parcel(s) purchased through an Agreement Sale.
The list of properties available for purchase is subject to change due to any number of
factors, including redemption of properties, i.e., property taxes paid in full, or a legal process
that requires withdrawal of the parcel from the sale, e.g., bankruptcy. The TTC will inform
your entity accordingly of any changes affecting its purchase request.
Should you have any questions, please contact our Chapter 8 Unit at (213) 974-0871.
KG:KP:SM:af
Attachments
MB PG PCL
ITEM
NO NSB#
LEGAL
DESC I LOCATION I PROP ADDRESS
MIN. BID
IMPS
CURRENT PARCEL
PRIOR PARCEL
5362 532
TRACT # 22946 LOT COM N
$29,865
7568 019 032
51C23'35" E 80 FT FROM MOST S
10/7568 019 032
COR OF LOT 21 TH N 51C23'35" E
135.77 FTTH N 22C59'44" W
179.77 FTTH S 67C00'16" W 110
FTTH S 17C30'49" E 217.3 FT TO
BEG PART OF LOT 21 LOCATION:
CITY -RANCHO P V
PROPERTY ADDRESS:
8 CHAPARRAL LN
RANCHO PALOS VERDES CA 90275-516
5364 532
TRACT # 21350 LOT 38
$15,391
Y
7577 016 008
LOCATION: CITY -RANCHO P V
08/7577 016 008
PROPERTY ADDRESS:
26904 FOND DU LAC RD
RNCHO PALOS VRDS CA 90275-2361
5367 583
TRACT NO 19260 LOT 18
$40,111
Y
8001021044
LOCATION: CITY -SANTA FE SP
08/8001021044
PROPERTY ADDRESS:
9132 FLALLON AVE
SANTA FE SPRINGS CA 90670-2440
5370 583
MB 13-154-155-158-159
$7,777
Y
8007 001012
FOR DESC SEE ASSESSOR'S MAPS POR
10/8007 001012
OF LOT 2 LOCATION: CITY -SANTA FE
SP
PROPERTY ADDRESS:
VACANTLOT
5371 583
TRACT # 16941 LOT 113
$12,219
Y
8008 004 018
LOCATION: CITY -SANTA FE SP
08/8008 004 018
PROPERTY ADDRESS:
11431 DAVENRICH ST
SANTA FE SPRINGS CA 90670-3601
5376 583
P M 29-14 LOT 1
$213,301
Y
8011006 017
LOCATION: CITY -STA FE SP C
10/8011006 017
PROPERTY ADDRESS:
13225 TELEGRAPH RD
SANTA FE SPRINGS CA 90670-4047
PAGE 379 OF 415
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8/4/2015 RealQuest.com ® - Report
Property Detail Report
For Property Located At :
8 CHAPARRAL LN, RANCHO PALOS VERDES, CA 90275
it CoreLogic'
RealQuest Professional
Owner Information
Owner Name:
HALISI MOHAMMAD
Mailing Address:
1651 PASEO GRANDE, CORONA CA 92882-3706 C062
Vesting Codes:
SM //
Location Information
Legal Description:
TRACT# 22946 LOT COM N 5123'35" E 80 FT FROM MOST S COR OF LOT 21 TH N 5123'35" E 135.77 FT
TH N 2259'44" W 179.77 FT TH
S 670016" W 110 FT TH S 1730'49" E 217.3 FT TO BEG PART OF LOT 21
County:
LOS ANGELES, CA
APN: 7568-019-032
Census Tract / Block:
6707.02/1
Alternate APN:
Township -Range -Sect:
Subdivision: 22946
Legal Book/Page:
619-5
Map Reference: 73-C61
Legal Lot:
21
Tract#: 22946
Legal Block:
School District: PALOS VERDES PENINSU
Market Area:
167
School District Name:
Neighbor Code:
Munic/Township:
Owner Transfer Information
Recording/Sale Date:
/
Deed Type:
Sale Price:
1 st Mtg Document #:
Document#:
Last Market Sale Information
Recording/Sale Date:
09/17/2004 / 08/11/2004
1st Mtg Amount/Type: /
Sale Price:
$370,000
1st Mtg Int. Rate/Type: /
Sale Type:
FULL
1 st Mtg Document #:
Document#:
2396463
2nd Mtg Amount/Type: /
Deed Type:
GRANT DEED
2nd Mtg Int. Rate/Type: /
Transfer Document#:
Price Per SgFt:
New Construction:
Multi/Split Sale:
Title Company:
SECURITY UNION TITLE
Lender:
Seller Name:
KIRPALANI RANJEET B
Prior Sale Information
Prior Rec/Sale Date:
04/26/2004 / 09/08/2003
Prior Lender:
Prior Sale Price:
$3305000
Prior 1 st Mtg Amt/Type: /
Prior Doc Number:
1006895
Prior 1 st Mtg Rate/Type: /
Prior Deed Type:
GRANT DEED
Property Characteristics
Year Built / Elf: /
Total Rooms/Offices
Garage Area:
Gross Area:
Total Restrooms:
Garage Capacity:
Building Area:
Roof Type:
Parking Spaces:
Tot Adj Area:
Roof Material:
Heat Type:
Above Grade:
Construction:
Air Cond:
# of Stories:
Foundation:
Pool:
Other Improvements:
Exterior wall:
Quality:
Basement Area:
Condition:
Site Information
Zoning: RPRS20000&E* Acres:
0.55 County Use: VACANT RESIDENTIAL
(010V)
Lot Area: 23,819
Lot Width/Depth:
x State Use:
Land Use: RESIDENTIAL LOT Commercial Units:
Water Type:
Site Influence:
Sewer Type:
Building Class:
Tax Information
Total Value: $420,720
Assessed Year:
2014 Property Tax: $5,024.26
Land Value: $420,720
Improved %:
Tax Area: 7091
Improvement Value:
Tax Year:
2014 Tax Exemption:
Total Taxable Value: $420,720
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Conceptual Trails Plan - 1993 Update
Section 5
F2. Bronco Trail
Route: This point-to-point trail begins on Bronco Drive near the north end of
Mustang Road. It extends northward down the canyon to meet the Georgette
Canyon Trail in Rolling Hills Estates.
Status: Category II. There is an easement along the western boundary of the
northernmost lot the trail crosses. Future easements should be obtained when
the parcels are developed. The exact route should be designed prior to
easement solicitation.
Standards: Intermediate.
Use: Pedestrian/equestrian.
Access: This trail connects with the Georgette Canyon Trail (in Rolling Hills
Estates), the Gap (F1), Bronco Roadside Loop (F9), and Chaparral Neighborhood
Access (F3) Trails. This trail can also be reached from Bronco Drive where
there is limited parking.
F3. Georgette Canyon Trail
Route: This point-to-point trail connects the equestrian properties on Headland
Drive with the trail in Georgette Canyon in Rolling Hills Estates. At this time,
no viable route for the trail has been found, although the need for access
through the area has been demonstrated. This trail will not traverse Chaparral
Lane.
Status: Category VI. When Chaparral Lane was developed as a private street,
it replaced an important access trail. At the time the properties on Chaparral
Lane were developed, there was considerable City correspondence making an
effort to provide for continued equestrian access to the canyon. However, no
formal recorded agreement allowing equestrian use of Chaparral Lane has been
found.
Standards: Easy.
Use: Pedestrian/equestrian.
Access: This trail provides access to Georgette Canyon for equestrian
properties in the neighborhood on Headland Drive. Nonresident parking in
prohibited on private roads.
Page 5-6
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