RPVCCA_CC_SR_2014_10_07_F_Payment_of_Parkland_Dedication_FeeCITY OF RANCHO PALOS VERDES
MEMORANDUM
TO: HONORABLE MAYOR CITY COUNCIL MEMBERS
FROM: JOEL ROJAS, COMMUN OPMENT DIRECTOR
DATE: OCTOBER 7, 2014
SUBJECT: PAYMENT OF PARKLAND DEDICATION FEE FOR FINAL
TRACT MAP NO. 71878 (a 60-unit, senior condominium
subdivision located at 5601 Crestridge Road; Crestridge Senior
Condominium project, known as "Sol y Mar")
REVIEWED: CAROLYNN PETRU, ACTING CITY MANAGE~
Project Manager: Eduardo Schonborn, AICP, Senior Plan~
RECOMMENDATION
Accept, via Minute Order, the parkland dedication (Quimby) fee for Final Tract Map No.
71878, pursuant to the City's parkland dedication fee formula in the amount of
$1,278,322.21.
BACKGROUND
In May 2013, the City Council approved a Tentative Tract Map, Conditional Use Permit,
and Grading Permit, thereby allowing a 60-unit condominium subdivision and
development on a 9.76-acre parcel on Crestridge Drive. As part of the conditions of
approval, the applicant is required to pay a parkland dedication (Quimby} fee prior to
recordation of the final map. The applicant is now pay~ng the required fee.
TruMark was the initial developer that obtained project approval in May 2013.
Subsequently, the property was sold to the current owner, TaylorMorrison, in July 2013.
Although the project was sold to TaylorMorrison, atl project approvals and conditions of
approval associated with the project remain in full force and effect, and are bearing upon
TaylorMorrison. Construction of the project is currently underway.
CODE CONSIDERATION AND ANALYSIS
Pursuant to Section 16.20.100 of the City's Municipal Code, as a condition of approval of
a tentative tract or parcel map, the subdivider shall dedicate land; pay a fee in lieu of said
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MEMORANDUM: Parkland Dedication Fee, Final Tract Map No. 71878
October 7, 2014
Page 2
land dedication; or a combination of both at the option of the City, for park and recreational
purposes. As part of the subdivision's analysis in 2013, the City Council concurred with
Staff's determination that payment of the parkland dedication fee was warranted in this
case because dedication of parkland, equivalent to 0.67-acre, would not be of a size that
would create a usable active or passive park.
Pursuant to the City's Municipal Code, when a fee is to be paid in lieu of land dedication,
the amount of such fee shall be based upon the "fair market value" of the amount of land
which would otherwise be required to be dedicated by the City's code. The Code states
that the "fair market value" of the land at the time of filing the tentative tract or parcel map
shall be determined by the City Council using any one of the following methods: 1) tax
assessor valuation if assessed within one year of the time of map filing; 2) sale price of
land if sold within five years of the map filing plus the annual CPI; 3) the sale of
comparable properties within one year of the map filing; or, 4) a land appraisal if none of
the above options are applicable. ·
TaylorMorrison has submitted a copy of the final settlement statement of the transaction
indicating a total purchase price of $18.3M (not including approximately $378,000 in
escrow fees and other charges). The transaction occurred within five years of the fiting
of the map, which occurred on February 22, 2012. Using the sale price information from
July 2013, Staff calculated the per-acre value of the 9.76-acre parcel as $1,902,265.20
per acre. Based upon this value, the Quimby park fee was calculated to be
$1,278,322.21. The calculation for the Quimby park fee for this project is as follows:
Sale price of the subject property (per acre) $1,902,265.20 I acre
Multiplied by: Parkland Dedication requirement1 0.0112 acre per dwelling unit
Multiplied by: Number of dwelling units: 60 dwelling unit
Equals: $1 ,278,322.21
It is important to point out that $835,000 of this $1,278,322.21 QUIMBY fee has already
been programmed for the following appropriated GIP projects:
• $103,000 towards the Salvation Army Trail Project;
• $332,000 for the Abalone Cove Shoreline Park improvement project for the parking
lot and restroom building; and
• $400,000 towards the Ryan Park improvement project for the parking lot.
The remaining $443,322.21 of this QUIMBY fee has not been programmed, and may be
used for any future parkland acquisition or improvement project.
1 Pursuant to the Development Code, the City's Parkland Dedication "requirement" is 0.0112 for
subdivisions having a density of greater than 6.1 dwelling units/acre.
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MEMORANDUM: Parkland Dedication Fee, Final Tract Map No. 71878
October 7, 2014
Page 3
CONCLUSION
Staff recommends that the total amount of $1,278,322.21 be paid in lieu of land dedication
since Staff believes that the dedication of 0.67 acres (i.e., 2,439.36 square feet) of land
for a park in this subdivision would not create a usable park. Staff has consulted with the
applicant regarding the fee and they have indicated that they will pay it prior to final map
recordation.
ALTERNATIVES
The following alternative is available for consideration by the City Council:
1. Identify any issues or concerns with the proposed fee calculation, provide Staff
and/or applicant direction to use an alternate method for determining the parkland
dedication fee, and continue the item to a future agenda.
Attachment
• Final Settlement Statement
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)
.'
CHICAGO TITLE COMPANY
4041 MacArthur Blvd., Suite 400, Newport Beach, CA 92lft..
Phone: {949) 724-3100 Fax: {949) 724-3128
Bllyers/Borrowers Closing Statement
Estimate
Escrow No: 00008976 • 002 KP Close Date: 0710212013 Proration Date: 07/0212013
Buyer(s)/Borrower(s): Taylor Morrison of Callfomla, LLC
Seller(s): Trumark RPV. LLC
Property: Vacant Land
Rancho Palos Verdes, CA
TOTAL CONSIDERATION:
Total COllSlderal1on
First Depo$tt
Second Deposit
ESCROW AND TITLE CHARGES:
Escrow fee (112) to Chicago Title Company
Del!Veiytcartege Fees (EST) to Chicago Tille 6ompany
AL TA Portion Of OWne~ Policy Premium lo Chicago Titt&
101.4 Endoisement to Chicago Tl1le
103. 11 Endorsement to Chicago Tdle
110.9 Endorsement to Chicago TIUe
116. 7 E~orsement to Chicago Tine
3.0 Endorsement to Chl<ie90 Tille
Single Tax Endorsement to Chicago Til1e
103.fi Endolsement to Chicago Tille
RECORDING FEES:
Recon:llng Grant Deed (EST) lo Chicago Title Company
AOOITIOfilAL CHARGES:
PAO fOR MISC FEES ANO/OR #IV CHANGES
PRORATIONS AND ADJUSTMENTS:
Property Taices from 07/0112013 lo 07/1>212013 based on the Semi-Annual
amount Of $47 ,997 .44
COMMISSIONS:
$274 .000.00 lo The Hoffrnen company
$274,500.00 to Chaparral Land Company
SUI) Tolllls
Balance Due From Buyer/BOrrower
Totals
Buyer(s)/Borrower(s);
Date Prepared: 06128/2013
18,300,000.00 /
250,000.00
500.000.00
~ 4.082.50
25.00
2.745.00 :/'
2,489.00 ./
75.00 ../
100.00 ./
1,245.00 ./
1,245,00 t/
100.00 ~ 300.00
50.00 ./
500.00 ./
266,65
183,000.00 /
183,000.00 ,/
18,678,95!!.50 700.266.65
17,928,689.85
18,678,956.00 18,678,956.50
,~
This statement Is based on Information available to the escrow holder as of the date lhls statement was prepared and the closing date shown
above. Actual amounts may change andfor vary depending on updated Information received and the final closing date.
Printed by Karen L. Price on 06/2812013 -10:42:51AM Pege1 of1
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