880 Stone Pine? City HMB Negotiates with POST for 21 Acres

ARTICLE. CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION

Tuesday, 2/18/2020 6:00pm 

CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Govt. Code section 54956.8)

Property: 880 Stone Pine Road (APN 056-260-180)

City Negotiators: Matthew Chidester (Deputy City Manager), John Doughty (Public Works Director), and Catherine Engberg (City Attorney)

Negotiating Parties: Daniel Olstein, Peninsula Open Space Trust Under negotiation: Price and terms of potential acquisition.

City Council Meeting Agenda for 2/18/2020

Order of Events

June 17, 2004 ~ POST entered into an option agreement to purchase the 22‐acre property at 880  Stone Pine Road from Nurserymen’s Exchange for $3.1 million.

September 21, 2004 ~Half Moon Bay City Council approved acquisition of the property from POST.

October 12, 2004 ~ Assignment Agreement between POST and City of Half Moon Bay for POST to assign  its rights and obligations under the Option Agreement to the City and for POST to  provide the City with an option to obtain funding from POST was approved.

October 15, 2004 Deed of Trust was  signed between City of Half Moon Bay and POST. Promissory  Note was for $3.1 million due October 15, 2007. In the event of a failure to pay the  entire principal within three years from date, the note shall be deemed in default,  and shall, bear interest as the rate of 10% until paid.

October 10, 2006 POST Board of Directors authorized to offer City a one‐year extension of the note  evidencing the $3.1 million interest free loan on condition that if the land is sold or  used for any other purpose than a community park, 10% interest will run from the  original date of the loan (October 15, 2004).

October 15, 2007  POST Board of Directors authorized amending the original one‐year extension of  payment of principal and interest to two years, terminating on October 15, 2009.

July 23, 2009  The  City  officially  transferred  title  of  the  property  to  POST in  satisfaction  of  the  promissory note.

July 23, 2009  The City Council officially abandoned plans to build park and entered into a License  and Maintenance Agreement with POST which among other things allows the City  to maintain its City Corporation Maintenance Yard on the site.

June 21, 2013  Revised License and Maintenance Agreement executed.

November 9, 2017  POST sent a letter indicating its desire to sell the property and to offer the City the  first opportunity to purchase.

From Agenda January 16, 2018

The City recently received a letter dated November 9, 2017 from Walter T. Moore, President of  Peninsula Open Space Trust  (see Attachment 1).

The letter requests discussions with the City  regarding potential purchase of the 21+‐acre parcel at 880 Stone Pine Road (APN 056‐260‐180)  as  well  as  the  possible  interim  lease  of  property  currently  used  for  the  City  Corporation  Maintenance Yard.

The  property  (880  Stone  Pine  Road)  was  acquired  by  the  City  in  2004  from  Nurserymen’s  Exchange  for  $3.1  million.    The  City  Council  purchased  the  property  for  construction  of  a  community park.

The purchase was made possible by a loan from POST.  The initial Promissory Note and Deed of  Trust (recorded October 18, 2004) provided for a no interest loan until October 15, 2007.  The  loan was due and payable on October 15, 2007.