HomeMy WebLinkAbout0013_1_Cottage Lane - SRREPORT TO CITY COUNCIL
TO:HONORABLE MAYOR AND CITY COUNCILMEMBERS
FROM:GRANT YATES, CITY MANAGER
DATE:JANUARY 24, 2017
SUBJECT:Purchase of a Tax Defaulted Parcel for Area Drainage and Flood Control for
APN 379-050-024 in the Amount of $33,878.50
Recommendation
adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, APPROVING THE TAX-DEFAULTED PURCHASE OF PARCEL 2 OF THE
COTTAGE LANE RESIDENTIAL PROJECT FOR DRAINAGE AND DETENTION BASIN
FUNCTIONS AT THE TERMINUS OF ULLA STREET, ASSESSOR PARCEL NUMBER 379-050-
024
Background
The City Council approved the 48-unit single-family residential Cottage Lane project on August
23, 2005, that included a Specific Plan, Zone Change, Tentative Tract Map 32996 and Residential
Design Review (RDR). The project included five model homes which have been sold, and the
remaining subdivision has developed streets, underground utilities, street lights, some perimeter
block walls, and has completed some engineering conditions of approval. The project is located
south of Lakeside High School, north of Grand Avenue, east of Machado Street and west of
Riverside Drive.
The original owner, Cottage Lane LLC has been an inactive company. Ambient Communities
purchased the property in 2012/2013, but did not purchase Parcel 2, which is to integral the
project’s drainage flows down Ulla Lane. Parcel 2 was designed to be a part of the Cottage Lane
project but Parcel 2 was not part of Tract Map 32996 that was recorded in 2006. Parcel 2 is
located at the terminus of Ulla Lane and south boundary of Lakeside High School.
Parcel 2 is a 0.98 parcel that was constructed to serve as a detention basin including an access
road for maintenance. The parcel became very overgrown with vegetation due to the lack of
maintenance and code enforcement conducted a nuisance abatement in an amount of just under
$5,000 to remove the significant overgrown debris. Parcel 2 has been a tax-defaulted parcel
since 2010 and recent tax records show a tax deficiency of $21,103 through 2015.
Ambient Communities sold the Cottage Lane project to Frontier Communities.. The Residential
Design Review (RDR) approval of the original project has expired and a new RDR must be
processed Updated architecture has been required to update and improve the previous design to
the City’s current design requirements.
Discussion and Analysis
It would be beneficial to both the City and Frontier Communities to have Parcel 2 provide the
intended drainage and detention basin functions for not only the Cottage Lane project but for
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properties in the area on Ulla Lane and Tiller Lane. The City proposes to purchase Parcel 2 and
provide Frontier Communities with an access easement and requirement that the HOA maintain
the parcel for drainage and detention basin functions in perpetuity and abide by the attached
Retention Basin Agreement.
Staff notified the Riverside County Treasurer of the City’s desire to obtain Parcel 2 and filed an
application on September 6, 2016 and provided a second letter on October 5, 2016. On
December 15, 2016,the City received notice from the County Treasurer that the parcel is available
for City purchase at a price of $33,878.50. The County Treasurer has a request that a City Council
resolution be submitted by February 1, 2017, that includes the following provisions:
1) A City Council Resolution that includes an offer to purchase, purchase price, legal
description, Assessor Parcel Number, and specific public purpose of parcel. In addition,
the resolution should include a statement that the costs of giving notice shall be paid by
the City.
2) A separate City Mission Statement on official City letterhead.
3) A Noticeof the Agreement to Purchase Tax-defaulted property must be given to the parties
of interest and the City shall pay the cost.
4) A Notice of the Agreement to Purchase Tax-defaulted property must be published in the
Press Enterprise at the City’s expense.
Staff inquired about the cost breakdown of the delinquent tax payments. The Chapter 8 sales
can be a lengthy process so the County Treasurer quotes out three years that include penalty
fees and tax sales processing fees and costs. Following is the cost breakdown.
Delinquent taxes through June 2017 $23,898.38
Current taxes estimates through 2019 $ 8,748.87
Fees and cost associated with sale $ 1,231.25
TOTAL $33,878.50
The City Attorney has drafted a Detention Basin Agreement which Frontier Communities has
agreed to and signed. Frontier Communities is eager to develop the Cottage Lane project and
has submitted the RDR application to develop 41 detached single-family residences that will be
before the Planning Commission on January 17, 2017 with anticipated final City Council
consideration on February 28, 2017.
Exhibits:
A. City Council Resolution
B. Letter from County Treasurer dated 12/15/16 (Parcel Availability)
C. Email from County Treasurer dated 1/10/16 (Parcel Cost Breakdown)
D. Parcel 2 Owner Information
E. Parcel 2 Treasurer-Tax Collector Records
F. County Treasurer Application to Purchase Tax-Defaulted Property
G. Letters from City of Lake Elsinore dated 10/5/16 and 9/6/16
H. Parcel 2 Retention Basin Agreement
I.Vicinity Map,
J. Aerial Map
K. Assessor Parcel Map