;:ft{n Siegel, City Manager

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1 5/17/ City of San Juan Capistrano Agenda Report TO: FROM: Honorable Mayor and Members of the City Council ;:ft{n Siegel, City Manager SUBMITTED BY: Steve May, Public Works and Utilities Director J ~ PREPARED BY: George Alvarez, City Engineer, P.E. 9f~ DATE: SUBJECT: May 17, 2016 Consideration of Adopting a Resolution to Vacate a Portion of Right-of-Way for Ortega Highway at RECOMMENDATION: Open the public hearing, receive public testimony, close the public hearing, and by motion: 1. Adopt the attached resolution vacating a portion of Ortega Highway located generally at Ortega Highway; and 2. Authorize the City Manager to execute a quitclaim deed to South Coast Investors II, LLC, for the portion of Ortega Highway vacated hereby, excepting from the quitclaim all easements and rights required to maintain, operate, replace, remove or renew existing public utilities. EXECUTIVE SUMMARY: The owner of the property at Ortega Highway has requested, and staff is recommending, vacation of a portion of Ortega Highway right-of-way that is no longer needed for street purposes because of the recent realignment of Ortega Highway with construction of the new interchange of 1-5 and Ortega Highway. The location of the subject portion of street right-of-way is generally depicted on Attachment 1. The portion of right-of-way to be vacated is owned in fee title by the City, and staff is recommending that the vacated portion of right-of-way be quitclaimed to the property owner under terms of a development agreement between the City and the current property owner.

2 City Council Agenda Report May 17, 2016 Page 2 of 3 DISCUSSION/ANALYSIS: On July 5, 2011, the City Council approved a Development Agreement with Strosher G3, LLC., the previous owner of the property located at Ortega Highway, to develop the Plaza Banderas Hotel and Mixed Use Project. The property was sold to South Coast Investors II, LLC ("The Developer"), which is the successor owner of the project. The Developer is proposing to build a new hotel building, Inn At The Mission, and a restaurant on the site. Section of the Development Agreement stipulates that the City agrees to undertake all reasonable good faith efforts to re-convey to the land owner, the vacated portion Ortega Highway right-of-way. After conducting a public hearing on the proposed vacation and making the findings described in the resolution of vacation (Attachment 2), the City Council may adopt the resolution vacating the subject portion of right-of-way and may authorize the City Manager to execute a quitclaim deed to the land owner of Ortega Highway under terms of the development agreement, reserving from the quitclaim deed any easements necessary for existing public utilities. On April 19, 2016, the City Council adopted a Resolution of Intent to vacate the excess portion of right-of-way and set a public hearing date for May 17, 2016, to consider the street vacation. Streets and Highways Code Sections 8322 and 8323 require that, at least two weeks before the date of the public hearing, notice shall be published in a newspaper selected by the City, and notices shall posted conspicuously along the line of the street to be vacated. All the requirements of Sections 8322 and 8323 have been satisfied. Prior to adoption of a Resolution to vacate a portion of right-of-way for Ortega Highway at 26891, a public hearing must first be conducted by the City Council pursuant to Streets and Highways Code Section 8300 et seq. At the public hearing, the City Council will consider evidence presented by interested persons for and against the proposed vacation. After considering all relevant evidence, the City Council will determine whether the right-of-way is unnecessary for present or prospective public use. Any person may attend the public hearing, make inquiries, or present evidence or testimony regarding the necessity of the right-of-way for public use. The area to be vacated is unnecessary for present or prospective public use by the City, but easements and rights are required to be excepted from the vacation to maintain, operate, replace, remove or renew existing public utilities. The proposed street vacation is consistent with the City Circulation Element of the General Plan because the new Ortega Highway Interchange realigned the roadway creating excess right-of-way. The realigned highway does not reduce the roadway capacity. FISCAL IMPACT: There is no fiscal impact associated with the recommended action. The excess right-ofway would be conveyed to the adjacent land owner at no cost.

3 City Council Agenda Report May 17, 2016 Page 3 of 3 ENVIRONMENTAL IMPACT: This action is not subject to the California Environmental Quality Act ("CEQA") pursuant to Section 15060(c)(3) of CEQA Guidelines (the activity is not a project as defined in Section of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly). PRIOR CITY COUNCIL REVIEW: On April 19, 2016, the City Council, adopted a Resolution of Intent to vacate a portion of Ortega Highway at and set a public hearing date for May 17, 2016, to consider the street vacation. COMMISSION/COMMITIEE/BOARD REVIEW AND RECOMMENDATIONS: This item does not require commission review. NOTIFICATION: Dan Friess South Coast Investors II, LLA. Stroscher G3, LLC. ATIACHMENT(S): Attachment 1 - Excess right-of-way map Attachment 2 - Resolution Attachment 3 - Notice of Public Hearing

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5 RESOLUTION NO _ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, VACATING A PORTION OF RIGHT OF WAY FOR ORTEGA HIGHWAY AT 26891, AND RESERVING EASEMENTS AND RIGHTS FOR EXISTING PUBLIC UTILITY FACILITIES WHEREAS, when the State of California constructed a new interchange at the Ortega Highway and I-5 Interchange, Ortega Highway was realigned west of Del Obispo Street creating excess right-of-way at Ortega Highway ("Property") that is no longer needed for highway purposes except for certain public utility facilities that exist on the Property ("Facilities"); WHEREAS, the Property will be used as part of the development site for the Mission Inn Hotel, and the developer for the Mission Inn Hotel has filed an application for the project and is requesting vacation of the Property to continue to develop the project; and WHEREAS, pursuant to California Streets and Highways Code, Division 9 - Change of Grade and Vacation, Part 3 - Public Streets, Highways, and Service Easements Vacation Law (beginning with Section 8300) the City seeks to vacate the excess right of way at the Property as described in Exhibit A and depicted in Exhibit B, excepting from the vacation those easements and rights necessary to maintain, operate, replace, remove, or renew the Facilities; and WHEREAS, pursuant to Streets and Highways Code section 8313, this vacation is consistent with the City's Circulation Element of the General Plan because the new Ortega Highway Interchange realigned the roadway creating excess right-of-way and the realigned highway does not reduce roadway capacity; and WHEREAS, pursuant to Streets and Highways Code section 8320, the City Council scheduled a public hearing for May 17, 2016, at 5:00p.m., at the City Council Chamber, Paseo Adelanto, San Juan Capistrano, California 92675, and gave the public notice and a reasonable opportunity to appear at the hearing and be heard on the matter of the proposed vacation; and WHEREAS, the hearing has been held by the City and the public was afforded the opportunity to be heard on the matter of the proposed vacation; and WHEREAS, at the conclusion of the hearing the City finds that the Property proposed to be vacated is unnecessary for present or prospective public use by the City, but that easements and rights are required to be excepted from the vacation to maintain, operate, replace, remove or renew existing Facilities; and ATTACHMENT 2

6 occurred. WHEREAS, all other legal prerequisites to the adoption of this Resolution have NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Juan Capistrano as follows: SECTION 1. The forgoing recitals are true and correct. SECTION 2. The City has provided notice of this hearing as required by Streets and Highways Code sections SECTION 3. The City hereby finds that the Property proposed to be vacated is unnecessary for present or prospective use by the City, but that easements and rights are required to maintain, operate, replace, remove or renew existing Facilities. SECTION 4. The location of the Property subject to vacation is depicted and described in Exhibit A and depicted in Exhibit B, both attached to this Resolution, and the location of the property is generally summarized as that portion of Ortega Highway right-of-way at Ortega Highway. SECTION 5. This action is not subject to the California Environmental Quality Act ("CEQA") pursuant to Section 15060(c)(3) of CEQA Guidelines (the activity is not a project as defined in Section of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly). SECTION 6. The City hereby vacates the Property described in Exhibit A to this resolution and generally depicted in Exhibit B to this resolution in accordance with Streets and Highways Code section 8324(b ), but reserves and excepts from the vacation any easement and right necessary to maintain, operate, replace, remove, or renew existing Facilities, pursuant to Streets and Highways Code section 8340(c). SECTION 7. The City Clerk shall cause a certified copy of this Resolution of Vacation, attested by the City Clerk under seal, to be recorded without acknowledgment, certificate of acknowledgment, or further proof in the Office of the Orange County Recorder. Pursuant to Streets and Highways Code Section 8336, no fee shall be charged for such recordation. The City Clerk shall permanently maintain a true and correct copy of this Resolution. SECTION 8. This Resolution shall become effective upon its adoption. Upon the recordation required hereby, the vacation is complete and the Property no longer constitutes a right-of-way. The Mayor is authorized to execute any and all documents necessary to evidence the vacation of the Property, including, but not limited to, a quitclaim deed transferring the City's interest in the excess right-of-way for Ortega Highway at to the developer for the Mission Inn Hotel. 2

7 PASSED, APPROVED, AND ADOPTED this 17th Day ofmay ATTEST: Pam Patterson, Esq., MAYOR MARIA MORRIS, CITY CLERK Attachment: Exhibit A-Excess right-of-way map 3

8 EXHIBIT "N' LEGAL DESCRIPTION QUITCLAIM In the City of San Juan Capistrano, County of Orange, State of California, being a portion of Lot 12 of Tract No.l03 filed in Book 11, Pages 29 through 33, inclusive, of Miscellaneous Maps, in the Office of the County Recorder of said County, lying within Parcel 1 of that certain Deed to the State of California recorded November 21, 1957 in Book 4110, Page 520 of Official Records described as follows: Commencing at the southwest corner of said Lot 12, thence along the southerly line of said Lot, as shown on Record of Survey filed in Book 246, Pages 32 through 43, inclusive of Records of Surveys in the Office of the County Surveyor of said County, South 81 19'47" East feet to the northerly line of that certain feet strip of land conveyed to the State of California by Deed recorded June 28, 1940 in Book 1049, Page 349 of Official Records in said County, said line being parallel with and distant northerly feet from the centerline of Ortega Highway as shown on said Record of Survey ; thence along said northerly and parallel line the following two courses: 1) South 84 43'58" East 4.32 feet, to the beginning of a curve concave northerly having a radius of feet, 2) easterly along said curve feet through a central angle of 4 08'12" to the northwesterly line of said Parcell in Deed recorded in Book 4110, Page 520 of Official Records as shown on said Record of Survey and the True Point of Beginning; thence along said northwesterly line the following three (3) courses: 1) North 73 02'22" East feet to the beginning of a non-tangent curve concave northerly having a radius of feet, a radial bearing to said point bears South 08 55'33" East, the easterly terminus of said curve being tangent to a line parallel with and distant feet northerly of said centerline of Ortega Highway. 2) easterly along said curve feet through a central angle of 11 18'25" to said parallel line, Revised May 9, 2016 December 2, 2015 Page 1 of2 WO No lT H&A LegaJ No By: C. Tripi Checked By: R. Wheeler 4

9 EXHIBIT ".N' LEGAL DESCRIPTION QUITCLAIM 3) and along said parallel line North 69 46'02" East feet to the easterly line of said Lot 12; thence along said easterly line South 00 28'12" West feet to a line that is parallel with and distant feet northerly from said centerline of Ortega Highway as described in said Deed to the State of California recorded in Book 1049 Page 349 of Official Records, as shown on said Record of Survey ; thence along said parallel line the following two (2) courses: 1) South 69 46'02" West feet to the easterly prolongation of the above described curve having a radius of feet; 2) westerly along said curve feet through a central angle of '48" to the True Point of Beginning. Containing an area of 19,283 Square Feet, more or less. As shown on Exhibit "B" attached hereto and by this reference made a part hereof. Charles Tripi, PLS 729J Date: -5/qJ/:, I Revised May 9, 2016 December 2, 2015 Page 2 of2 WO No T H&A Legal No By: C. Tripi Checked By: R. Wheeler 5

10 \ \ \ \ I \I }, J\ I \ I \ EXHIBIT B 6

11 NOTICE OF PUBLIC HEARING CITY OF SAN JUAN CAPISTRANO NOTICE IS HEREBY GIVEN, that on the 17th day of May, 2016, at 5:00 P.M. in the City Council Chamber, Paseo Adelanto, San Juan Capistrano, California, the City Council will hold a public hearing on the following: PROPOSED VACATION OF A PORTION OF THE PUBLIC RIGHT OF WAY KNOWN AS ORTEGA HIGHWAY AT A public hearing pursuant to Public Streets, Highways and Service Easements Vacation Law (Streets and Highways Code section 8300 et seq.) will be held by the San Juan Capistrano City Council at the City Council Chamber, Paseo Adelanto, San Juan Capistrano, California 92675, to consider the adoption of a Resolution declaring that approximately 19,000 square feet of right of way easement area over a portion of right of way for Ortega Highway at ("Easement") is unnecessary for present or prospective public use and vacating the same. At the hearing, the San Juan Capistrano City Council will consider evidence presented by interested persons for and against the proposed vacation. After considering all relevant evidence, the City Council will determine whether the Easement is unnecessary for present or prospective public use. Any person may attend the hearing, make inquiries or present evidence or testimony regarding the necessity of the Easement for public use. A map indicating the location of the Easement is available for public inspection at the City Clerk's office located at Paseo Adelanto, San Juan Capistrano, CA during normal business hours. Please note that after the City Council issues its decision, any subsequent legal challenge to such decision may be limited to the issues raised at the public hearing. Anyone desiring further details may contact the City Clerk at Those desiring to be heard in favor of, or opposition to, this item will be given an opportunity to do so during such hearing. Written information pertaining to this item must be submitted to the City Clerk by 5:00 p.m., on Monday, May 2nd, 2016 at Paseo Adelanto, San Juan Capistrano, CA correspondence may be sent to: cityclerk@sanjuancapistrano.org. Individuals desiring to submit lale written information at the meeting must orally request such action. i f 1 rm ation you may contact George Alvarez, City Engineer at (949) or alvarez s uanca I trano.or. For furth~r ATTACHMENT 3