June 20, 2018 CUSD Board of Trustee Meeting Agenda Item #47: ACCEPTANCE OF HIGHEST BID AND DELEGATION OF AUTHORITY TO EXECUTE FINAL PURCHASE AND SALE AGREEMENT FOR PASEO DE COLINAS PROPERTY

Board Meeting Agenda page 887

The District owns an approximately 2.47 acre site, located east of Niguel Hills Middle School, and northwest of the intersection of Paseo de Colinas and Del Cerro in the City of Laguna Niguel. In 2006, the District took a number of actions in preparation for the sale of the site, including appointing an advisory committee, declaring the property surplus, and soliciting offers from interested parties to purchase the site. Ultimately, the site was not sold. Currently, the site is being used for storage by a local car dealership pursuant to a use agreement on a month-to-month basis. 

In 2006, the appraised value of the site was $6,025,000.00 

The original rent was $3,200 per month and was recently re-negotiated to be $11,000 per month on a month -to-month lease.

Time Line
02-02-06  Advisory Committee Public Meetings
02-16-06   Advisory Committee Public Meetings 
02-27-06  Advisory Committee Public Meetings 
03-14-06  Advisory Committee Public Meetings 
03-27-06 Advisory Committee Public Meetings 
04-24-06 Advisory Committee Final Report and Recommendations dated April 24, 2006
04-24-06 CUSD BOT Adopted Resolution No 0506-76 which declared Paseo de Colinas as surplus property and stated the District's intent to sale the property.
The Board was not Successful in Selling the Property in 2007-08.
11 years later

01-18-17

Asset Management Workshop (CUSD does not record Board Work Shops)

CUSDWatch Documentation: CUSDWatch Recorded this Workshop: Board Workshop January 18, 2017 Asset Management Planning

District Staff recommended continuing the Use Agreement with the car dealership and renegotiating terms. This would allow CUSD to retain ownership of the site and provide CUSD with a revenue stream for deferred maintenance.

There was no recommendation to sell the property.

Summary and next steps:

"Renegotiate use agreement with local car dealership"

02-22-17

February 22, 2017 BOT Meeting Agenda Consent Calendar Item #9 RESOLUTION No 1617-50 Asset Management Plan page 250

Board Audio 63:33 (1 Hour 3 Minutes 33 Seconds)

Public Comment at 1:03:36

The Item was moved by Trustee Pritchard.

Second by Trustee Lynn Hatton-Hodson.

The Board voted 6-0-1 to approve the Resolution without any discussion. (Trustee Reardon was absent)

This item was on the Consent Calendar, and pulled by the PUBLIC

The Item stated:

The District will reorganize the Laguna Niguel site adjacent to Niguel Hills Middle School to allow for the more efficient layout of storage.

The District will negotiate the amendment of terms on the existing use agreement for storage space with the local car dealership. 

The District will also explore the option of potentially selling the site.

District staff will involve City staff in the course of moving forward with plans for this site.

Staff unilaterally added the "sale" of the property to the Resolution, which was not included in the recommendation at the Asset Planning Workshop.

The City of Laguna Niguel's response to a Public Records Request stated that CUSD Staff had not been in contact with the City of Laguna Niguel regarding the sale of the Paseo de Colinas property.

Clark Hampton, Deputy Superintendent of Business and support services made material misrepresentations of fact; at the February 22, 2017 board meeting when he told Trustees that he was in contact, and working with the City of Laguna Niguel to sale the Paseo de Colinas parcel. 

07-26-17

July 26, 2017 CUSD BOT Meeting Closed Session Agenda Item #E CONFERENCE WITH REAL PROPERTY NEGOTIATORS

Board Audio at 14:32 (14 minutes, 32 seconds)

District Negotiators: Kirsten M. Vital and Clark Hampton
Attorney: Andreas Chialtas
Financial Advisor: Keith Weaver
Real Estate Consultant: George Peterson
Property: Pacifica San Juan property. 7.292 acre property located at the north east corner of Camino Las Ramblas and Avenida California
Negotiating Party: One or more potential buyers for the Property who may purchase REVISED the Property through a request for proposals process.

Trustees gave direction to staff.

CUSD already has buyers?

07-26-17 

July 26, 2017 CUSD BOT Meeting Discussion/Action Agenda Item #29 Resolution No. 1718-02 Reconfirming Acceptance of the 2006 Advisory Committee Recommendation Ratifying Declaration of Surplus Property; Authorizing Sale of Paseo de Colinas to Public Entities, and authorizing sale of Public Property page 640

Board Audio at 170.10 (2 hours 50 minutes 10 seconds)

Public Comment at 171:40 

Trustee Comments at 174:22 

CUSD Attorney: at 174:55

Moved by Trustee Amy Hanacek 

2nd by Trustee Gila Jones

Passes 5-0-2 (Trustee Pritchard and Trustee Reardon absent)

CUSDWatch Supporting Documentation:

Letter from Dawn Urbanek to Trustees:

CUSDWatch: July 26, 2017 BOT Meeting Agenda Item #29

PUBLIC RECORDS REQUEST CITY OF LAGUNA NIGUEL

Complaint to District Attorney 

The lease with Allan Cadillac was renegotiated to $11,000 per month. Monthly rent was originally $3,200 per month. It appears that CUSD was loosing thousands of dollars in monthly income for years because the rent was not reviewed annually for proper rental increases- or Allan Cadillac was getting a sweet hart deal for years.

Trustee McNicholas asked if the Allan Cadillac was aware of CUSD's intent to sale the parcel. Trustees and Staff laughed when Clark Hampton responded "if they don't they will soon". This conduct shows a disrespect for local businesses and taxpayers. Clark Hampton is NOT elected and has no fiduciary duty to students or to tax payers. 

Trustee McNicholas asked directly if Staff had notified the City of Laguna Niguel about the sale? Staff responded yes there have been discussions. In a response to a Public Records Request the City of Laguna Niguel denies that statement.

Ed Code Requires the District to send Public Agency Notices to the City, County, Parks & Recreation, Department of General Services, The State of California, The CSU, the Cal State System and a Publication to all Public Benefit Corporations that this property is for sale. Parties have 60 days to express interest. If there is interest they have 90 additional days to negotiate the sale. If the sale is not completed then the property is sold at a Public Auction.

08-23-17

August 23, 2017 CUSD BOT Meeting Closed Session Agenda Item #E CONFERENCE WITH REAL PROPERTY NEGOTIATORS   

District Negotiators: Kirsten M. Vital and Clark Hampton
Attorney: Andreas Chialtas
Financial Advisor: Keith Weaver
Real Estate Consultant: George Peterson
Property: Pacifica San Juan property. 7.292 acre property located at the north east corner of Camino Las Ramblas and Avenida California
Negotiating Party: One or more potential buyers for the Property who may purchase REVISED the Property through a request for proposals process

Public Comment at 2:26 (2 minutes, 26 seconds)

Board Audio at 9:31 (9 minutes, 31 seconds)

Trustees gave direction to Staff

CUSD already has buyers?

CUSDWatch Documentation

August 23, 2017 Capistrano Unified Board of Trustees Meeting

10-11-17

October 11, 2017 CUSD BOT Meeting Closed Session Agenda Item #G CONFERENCE WITH REAL PROPERTY NEGOTIATORS 

District Negotiators: Kirsten M. Vital and Clark Hampton
Attorney: Andreas Chialtas
Financial Advisor: Keith Weaver
Real Estate Consultant: George Peterson
Property: Pacifica San Juan property. 7.292 acre property located at the north east corner of Camino Las Ramblas and Avenida California
Negotiating Party: One or more potential buyers for the Property who may purchase REVISED the Property through a request for proposals process

Under Negotiations: Price and Terms of Payment (Pursuant to Education Code Section 54956.8)

Board Audio at 6:02 (6 minutes, 2 seconds)

No Reportable Action

CUSD already has buyers?

02-28-18

February 28, 2018 CUSD BOT Meeting Closed Session Agenda Item #F CONFERENCE WITH REAL PROPERTY NEGOTIATORS  

District Negotiators: Kirsten M. Vital and Clark Hampton
Attorney: Andreas Chialtas
Financial Advisor: Keith Weaver
Real Estate Consultant: George Peterson
Property: Pacifica San Juan property. 7.292 acre property located at the north east corner of Camino Las Ramblas and Avenida California
Negotiating Party: One or more potential buyers for the Property who may purchase REVISED the Property through a request for proposals process

Public Comment at 18 Seconds

Board Audio at 7:48 (7 minutes 48 seconds)

Board provided direction to Staff

CUSDWatch Documentation

Open Letter to Trustees: Agenda Item #35 February 28, 2018 CUSD BOT Meeting - Sale of Paseo de Colinas Property

CUSD never recorded the deed after the lot line adjustment.

02-28-18

February 28, 2018 CUSD BOT Meeting Discussion/Action Agenda Item #35 ACCEPTANCE OF HIGHEST BID AND DELEGATION OF AUTHORITY TO EXECUTE FINAL PURCHASE AND SALE AGREEMENT FOR PASEO DE COLINAS PROPERTY page 965

Board Audio at 1:30:50

Bid Auction Today.

4 written bids were received.

No Oral Bids were received

Highest Bid California Pacific Homes $7,650,000 with no changes.

The three other offers requested modifications or failed to reach the District's price.

Public Comment  at 1:31:50 

Public Comment at 1:33:42

Motion by Trustee Gary Pritchard to approve Staff recommendation to Accept California Pacific Homes Offer of $7,650,000.00 and to delegate authority to Clark Hampton to execute the final purchase and sale agreement for the Paseo de Colinas property.

2nd by Trustee Patricia Holiday

The Item passes 7-0- without any Trustee Comment

CUSDWatch Documentation

CUSDWatch: February 28, 2018 CUSD BOT Meeting Agenda Item #35 ACCEPTANCE OF HIGHEST BID AND DELEGATION OF AUTHORITY TO EXECUTE FINAL PURCHASE AND SALE AGREEMENT (PASEO de COLINAS PROPERTY)

06-20-18

June 20, 2018 CUSD BOT Meeting Closed Session Agenda Item #G CONFERENCE WITH REAL PROPERTY NEGOTIATORS

District Negotiators: Kirsten M. Vital and Clark Hampton
Attorney: Andreas Chialtas
Financial Advisor: Keith Weaver
Real Estate Consultant: George Peterson
Property: Pacifica San Juan property. 7.292 acre property located at the north east corner of Camino Las Ramblas and Avenida California
Negotiating Party: One or more potential buyers for the Property who may purchase REVISED the Property through a request for proposals process

Board Audio at 10:45

Trustees Gave Direction to Staff

06-20-18

June 20, 2018 CUSD BOT Meeting Agenda Item #47 ACCEPTANCE OF HIGHEST BID AND DELEGATION OF AUTHORITY TO EXECUTE FINAL PURCHASE AND SALE AGREEMENT FOR PASEO DE COLINAS PROPERTY page 887

Board Audio at 4:01:52

Conducted Bid Auction today (6-20-18). 

1 written bid was received.

No oral bids were received.

The written bid was from the Olsen Company's For $6,500,000.00 with requested changes to the Districts proposed purchase and sale agreement terms:

The refundability of initial deposit until due diligence has expired.

Lowered additional deposit amount

Due diligence extension fees applicable to the purchase price

Smaller closing of escrow extension deposits 

Motion to accept the Olsen Company's bid for $6.5 million dollar bid; with changes, was made by Trustee Jim Reardon.

Second by Amy Hanacek

Passes 4-0-3 (Trustees Pritchard, Jones and Holloway absent)

 

 

CUSDWatch Comment

RESOLUTION NO. 1718-02

On April 24, 2006, the CUSD Advisory Committee prepared a "Final Report and Recommendations" which recommended that Niguel Hills Middle School Parcel #637-412-02 be declared Surplus Property.

The Board approved Resolution No. 0506-76 which declared the property as surplus and stated the districts intention to sell the property.

At the time, the Niguel Hills Middle School Site was made of two separate parcels:

637-181-01 The large lower campus

and

637-412-02 The small upper campus which is currently used as storage for a car company. 

In preparation to sell the parcel,CUSD applied for a lot line adjustment to enlarge parcel 637-412-02 (as shown in yellow below)

In 2006, the 2.47 acre Parcel 637-412-02 was valued at $6 million dollars.

On July 1, 2007 the City of Laguna Niguel approved a Lot Line Adjustment for 2.47 acres and a Zone Change and General Amendment. The zoning district is public institutional, residential multifamily, park & rec, managed care overlay.

The LLA was recorded with the County #2007000641532 however; the deed was never recorded with the assessor's office, so the legal description and APN number never changed.

At the January 26, 2017 workshop Staff recommended that CUSD choose Option 1 - Renegotiating use agreement with local car dealership.

At the February 22, 2017 Board Meeting Trustees approved Resolution No 1617-50 on the consent Calendar without discussion which stated:

Staff is now relying on a 2006 Advisory Committee recommendation and is asking the Board approve the sale of the land. What work has been done between February and now to change CUSD's decision to sale the property vs re-negotiate the rental agreement with the car company?

Has Staff really discussed this property with the City of Laguna Niguel?

Selling the Property As Is-

It appears that this property is NOT a single parcel - part of the land that is to be sold is on the main campus of Niguel Hills Middle School.

This Resolution was "Prepared" by Clark Hampton and "Approved" by Clark Hampton. I would caution Trustees that the last land purchase that Clark Hampton and Superintendent Vital negotiated on Consent Calendar resulted in a purchase price that gifted $13 million in taxpayer dollars to the Ranch and is now the subject of an investigation by the Orange County District Attorney. Neither Clark Hampton nor Kristen Vital are licensed by the State of California as brokers. The attorney of record on that deal had no name stated on the documents and signed his name with an "X". A complaint was filed with the Bureau of Real Estate because taxpayers have a right to ensure that their interests are being represented by this Board.

The Public brought this detail to the attention of the Board and asked Trustees how CUSD could sell this lot "As Is" when it contained a part of Parcel 637-181-01. 

On February 21, 2018 a Public Records Request was filed with the City of Laguna Niguel. 

The City's response revealed that CUSD had received a lot line adjustment in 2007, but had failed to record the deed. 

Can CUSD sell this property "AS IS" without the Deed being properly recorded?

PUBLIC RECORDS REQUEST

 

On September 3, 2017 a Complaint was filed with the District Attorney:

Re: Concern that CUSD Deputy Superintendent, Business and Support Services Clark Hampton is selling a property in Laguna Niguel without full disclosure to Trustees, and without following the proper legal process.

Trustees have a fiduciary duty to represent the interests of taxpayers and students in all matters before the Board. However, when they delegate that authority to Clark Hampton (Deputy Superintendent of Business and Support Services) and Kristen Vital (Superintendent) they have no such duty. A complaint was filed to ensure that there is no Fraudulent Land Sales, the Gifting of Public Assets, or the Wasting of Public Assets.

Trustee have a fiduciary duty to students and taxpayers. In the past delegating authority for Clark Hampton and Kristen Vital has always resulted in the gifting of taxpayer assets

Some examples:

EXAMPLE 1: CUSD gifted $13 million dollars to RMV by agreeing to value the Esencia School site as if it had entitlements to build 100 homes. There were no entitlements granted. CUSD paid $3.4 million per acre for the school site. The Purchase was approved on the Consent Calendar without a price.

EXAMPLE 2: CUSD has spent almost $400,000 trying to change the zoning on the Pacifica San Juan property, so that CUSD could partner with a developer to build high density low income housing in a single family neighborhood.

EXAMPLE 3. CUSD is doing the same with the Paseo de Colinas property. They want to sell this property to a developer to build high density residential units as evidenced by a January 18, 2018 Asset Management Worksop.

See: January 18, 2018 CUSD Asset Management Workshop

EXAMPLE 4: CUSD is spending 1/2 million in Mello Roos taxpayer money to demolish the upper campus of San Clemente High School where a proposed toll road will go. CUSD's position is that the demolition was part of the work identified in the Negative Declaration. The Negative Declaration does not include any demolition of the upper campus.

Allegation #3 of the Complaint to the District Attorney pertained specifically to the Pasao de Colinas property.

At the July 26, 2017 BOT meeting, Agenda Item #29 page 640, Trustees ratified a 2006 Declaration of Surplus Property authorizing the sale of Paseo de Colinas to PUBLIC ENTITIES

When Clark presented this item to the Board he stated on the record that, "offers for this property had already been received". 

"If this is approved Staff will move forward with an RFP to sell the Property outright". 

At the July 26, 2017 meeting, staff recommendied that the Board "delegate authority to Clark Hampton, Deputy Superintendent, Business and Support Services, or a designee, to execute the final Purchase and Sale Agreement with the highest bidder."

Trustees need to hire a licensed real estate broker to represent the interests of Taxpayers. Clark Hampton is not qualified to represent taxpayers in Real Estate matters. Trustees have an obligation to get the highest and best price for this land. 

 

Board Agenda Item #35 at the February 28, 2018 CUSD BOT Meeting.

Trustees have a fiduciary duty to protect the publics assets. This is taxpayer land. The site was valued at $6 million dollars in 2007. It should not be gifted to a developer at below market rates.