To: Board of Directors of the Sonoma County Agricultural Preservation and Open Space District; Sonoma County Board of Supervisors
Department or Agency Name(s): Sonoma County Agricultural Preservation and Open Space District; Sonoma County Regional Parks Department
Staff Name and Phone Number: Ag + Open Space: Steph Tavares-Buhler, 565-7362; Regional Parks: Steve Ehret, 565-1107
Vote Requirement: Majority
Supervisorial District(s): Fifth
Title:
Title
Chanslor Ranch Fee Acquisition (0067)
End
Recommended Action:
Recommended action
Approve a concurrent resolution of the Board of Directors of the Sonoma County Agricultural Preservation and Open Space District and the Board of Supervisors of the County of Sonoma authorizing and directing the necessary actions to acquire, manage, and prepare for the 2024 transfer of the Chanslor Ranch Property to Sonoma County Regional Parks, including:
A) Making certain findings and approving the Sonoma County Agricultural Preservation and Open Space District’s purchase of the Chanslor Ranch Property for $5,500,000, subject to credits that may be owed to the Sonoma County Agricultural Preservation and Open Space District pursuant to the Purchase Agreement, and authorizing the interim holding of the Property by the Sonoma County Agricultural Preservation and Open Space District;
B) Approving the Chanslor Ranch Interim Property Management Agreement for $250,000 between the Sonoma County Agricultural Preservation and Open Space District and Sonoma County Regional Parks;
C) Directing that the Property will be transferred from the Sonoma County Agricultural Preservation and Open Space District to Sonoma County Regional Parks within one year of closing, subject to the terms and conditions of the following agreements that will be presented to the Board for approval no later than March 31, 2024:
i. a conservation easement;
ii. a recreational conservation covenant;
iii. a transfer agreement setting forth the terms for the transfer of fee title to the Property to Sonoma County Regional Parks, which shall provide that the property is transferred in “as is” condition within one (1) year of this Board action; and
iv. an Initial Public Access, Operations & Maintenance Agreement between the Sonoma County Agricultural Preservation and Open Space District and Sonoma County Regional Parks.
D) Directing the filing of a notices of exemption in compliance with the California Environmental Quality Act; and
E) Authorizing recordation of all instruments necessary to accomplish the purchase, and directing the General Manager of the Sonoma County Agricultural Preservation and Open Space District, in consultation with County Counsel, to take all other actions necessary or appropriate to acquire and hold the property on an interim basis.
F) Approving the Chanslor Ranch Relocation Plan and authorizing and directing its implementation to support transition of ownership and operations to Sonoma County Regional Parks.
(Fifth District)
end
Executive Summary:
The Sonoma County Agricultural Preservation District (Ag + Open Space) and Sonoma County Regional Parks (Regional Parks) have partnered to acquire the 378.06-acre property commonly known as Chanslor Ranch (Property) for a new regional park and open space preserve. The Property is located along Highway One north of Bodega Bay, California, where it is bounded to the north by Salmon Creek and its estuary and is directly adjacent to public and protected lands to the north and west. The property possesses significant ecological resources including wetlands, estuary, creek, riparian forest, rock outcrops, chapparal, and grasslands, and recreational opportunities provided by Salmon Creek, existing trails, the summit of Coleman Hill, and a large, developed farmstead. It is highly desirable for natural resources protection and recreational and educational use. The Property is currently used for an active trail-riding operation and is available to the public for day use. These uses will continue under public ownership.
This Board item seeks approval of the Ag + Open Space’s acquisition of the Chanslor Ranch property for $5,500,000, subject to certain conditions and potential credits to be negotiated by the General Manager. This item also directs Regional Parks and the Ag + Open Space staff to take the necessary actions to prepare for the 2024 transfer of the property to Regional Parks within one year, subject to a conservation easement and recreational conservation covenant to be presented to your Boards by March 31, 2024.
Discussion:
The Property
Chanslor Ranch is a 378.06-acre property located at 2660 N. Highway One, Bodega Bay, California. The land is a high priority for the Ag + Open Space’s Vital Lands Initiative and for Regional Parks’ long-range plans in the area. Ag + Open Space has attempted to conserve this land on at least three previous occasions.
Chanslor Ranch is in a highly desirable area for a new regional park and open space preserve, located across Highway One from Sonoma Coast State Park (Bodega Dunes Campground) and across Salmon Creek from the Ag + Open Space-protected Carrington Coast Ranch Regional Park and Open Space Preserve, owned by Regional Parks, and the Collis Conservation Easement, held in private ownership. Purchasing this Property for Regional Parks will enable the creation of a new, upland, regional park near Bodega Bay with additional opportunities to connect with nature as sea level rise increasingly impacts other coastal parks, while protecting the Property’s important scenic, natural resource, and open space qualities. Chanslor Ranch is highly visible from public roads, primarily from Highway One, a County designated Scenic Corridor, as well as from other public parks and popular recreational fishing areas off the coast. The summit of Coleman Hill is located on the Property and is visible from local roads, the highway, beaches, state parks lands, nearby trails, and Salmon Creek. The Property has recently been used for residential uses, as a vacation rental hub, and for a commercial horseback riding and boarding, camping, and trail hiking operation.
The Property is comprised of one parcel (APN 100-030-002), having been split off from a parcel immediately south in a 2000 sale. Further division is prohibited by zoning. Current site improvements include a dirt road, a small parking area, hiking and riding trails, a utility line, one well, a water hookup to the Bodega Bay Public Utility District (operating on a temporary basis since the 1950s), at least one spring-box water system, and various buildings including two homes, a barn, an office building, and outbuildings associated with the equestrian operation.
Chanslor Ranch is in the Salmon Creek watershed and contains approximately 1.4 miles of Salmon Creek along the northern property line. The Creek on the Property is tidally influenced and considered navigable state waters accessible by the public. The remainder of the Property consists of gently sloping terrain near Highway One, rising sharply to Coleman Hill in the northeast. The Property has several areas of non-native landscape planting (cypress, foxgloves, fruit trees) as well as native plants including oaks and other hardwoods, coyote bush, succulents, a large wetland complex, grasslands, an estuary, aquatic vegetation, and riparian habitat along the creek.
Proposed Acquisition & Transfer Strategy
In order to expedite the purchase, the Ag + Open Space General Manager and the Regional Parks Director are recommending a 1-year phased transaction that entails Ag + Open Space taking title upon closing and holding it for up to one year on an interim basis. During that time, Regional Parks will provide for day-to-day management of the Property under a contract with Ag + Open Space. This approach affords both agencies an opportunity to become more familiar with the Property’s features in order to support the work necessary to establish the conservation easement. Regional Parks and Ag + Open Space will also use the interim period to identify initial public access and operational needs that are eligible for Ag + Open Space funding. The proposed resolutions direct staff to complete these assessments on an expedited basis and return to the Board with the agreements required to facilitate the transfer of title to Regional Parks within one year of closing, to include the conservation easement, the recreational conservation covenant, a transfer agreement, and an Initial Public Access Funding Agreement. The Property will be transferred to Regional Parks substantially in its current condition.
Land Uses
Chanslor Ranch has been used for many decades for residential occupation and commercial hiking, camping, equestrian trail rides, and horse boarding operations. Kayakers and other small craft use Salmon Creek regularly and occasionally access the sandy beach on the Property. Day-use has historically been allowed for a small fee (most recently $10 per person). The Seller, Chuan “Jonathan” Wang, has owned the Property since April 2014 and has continued these uses.
The “main house” is currently occupied by Mr. Wang and also includes two rental households. There is one additional rental household in the two-story office building. The original ranch house (or “Bunk house”) had been used to house employees of the equestrian operation and their families, but it is currently uninhabitable and no current rental households occupy this structure.
Land Conditions
Environmental Geology Services conducted an Environmental Site Assessment (Phase 1) on the Property on February 27, 2023. The report indicated that there were no significant environmental hazard concerns for the Property. It did note de minimus conditions related to storage containers and cargo containers on the Property, which must be removed prior to closing.
The land is in generally fair to good condition, with some areas in excellent condition. The wetlands and estuary are both in excellent condition, as are some of the less accessible rock outcrops. These areas are likely to support important plant and animal species. The grasslands and chapparal are in urgent need of vegetation management to prevent wildfire and there are numerous areas of invasive plant populations that should be addressed. There are also a few areas of erosion that have worsened after this year’s heavy rains. The horse pastures are in good condition, considering the intensity of use.
Condition of Structures and Improvements
Property Inspector Rick DeBoard conducted a series of building inspections on the Property on May 18-19, 2023. He and his team (including roofing and pest management contractors) inspected all disclosed residential structures, the utility systems, roofs, and sub-structures. Ag + Open Space also retained Ielmoreni Electric to perform an electrical inspection on June 30, 2023.
The structures and improvements range in condition from unsafe and in need of demolition to good condition but needing immediate maintenance and repairs to bring them up to code or to prevent further deterioration. Extensive electrical and plumbing repairs are needed to most of the Property’s structures, and conditions presenting health, safety, or fire hazards are to be corrected by the Seller prior to closing at the Seller’s expense.
Repairs to Main House and Residential Lease-Back.
A condition of the sale is that the seller, Mr. Wang, can remain in the main house for up to one year after closing at no cost. The main house is in fair to good condition, but needs significant electrical repairs and miscellaneous other repairs in order to mitigate hazards. The seller has agreed to complete the necessary repairs prior to closing. The Seller maintains the alternative of vacating the main house prior to closing, which he may elect to do in lieu of making required (but potentially costly) repairs.
Interim Property Management Agreement.
Ag + Open Space and Regional Parks have negotiated an interim property management agreement through which Regional Parks will provide, under contract to Ag + Open Space, public day use operation, property maintenance and repair services, as well as possible capital project coordination, including project permitting, bidding, and construction oversight services. Ag + Open Space will pay up to $250,000 for these as-needed services on a task order basis. As part of this agreement, Regional Parks plans to house one employee on the Chanslor Ranch property when one of the rental units in the main house becomes available.
Equestrian Concession
The Property has been used for equestrian boarding and trail rides since at least the 1930s. The current equestrian operator is Andreas Loose (doing business as “Chanslor Stables”). Mr. Loose manages the trail ride operations on Chanslor Ranch, through nearby state parks lands, and on the Point Reyes National Seashore (as “Five Brooks Ranch”).
Mr. Loose’s current lease to use the Property is out of date and not sufficient for Ag + Open Space or Regional Parks liability management purposes. As such, staff are engaged in active negotiations for a new lease with Mr. Loose that would take effect upon closing and terminate in 2025. Closing is contingent upon the execution of an acceptable lease, which the General Manager is authorized to negotiate and execute pursuant to the proposed Board of Directors Resolution. Should negotiations with Mr. Loose fail, the existing lease will be terminated and the equestrian operation will be relocated to Mr. Loose’s Marin site. In such event, Ag + Open Space and Regional Parks will expedite a Request for Proposal process for another equestrian concessionaire.
Certain terms for the new lease that have already been agreed to include:
1. Allowance for up to 30 horses on the Property;
2. Term through April 30, 2025;
3. Rent will be a percent of the equestrian operation’s gross revenues, to be determined once adjusted operating costs are established. The tenant’s operating costs will be affected by Ag + Open Space lease terms, such as compliance with living wage requirements;
4. The equestrian tenant will provide a $5,000 security deposit to Ag + Open Space;
5. The equestrian tenant will have exclusive access to approximately 73.2 acres of the Property, including the horse pastures and associated tack rooms and accessory barn, however reasonable access to these premises will be granted upon request;
6. The operation will share access to the equestrian trails and bathrooms, which are to be maintained and restocked by the tenant;
7. The lease includes rental of one of the bedrooms in the primary residence for an additional $800 a month for the on-site caretaker employee. As an alternative, if permitted by Permit Sonoma, the caretaker may also be allowed to occupy a temporary residence (such as a recreational vehicle) on the Property;
8. The tenant shall provide insurance and indemnity protecting the landowner (Ag + Open Space and then Regional Parks) from liability.
Initial Public Access.
Regional Parks and Ag + Open Space will keep Chanslor Ranch open to the public following acquisition of the Property. This is expected to include day-use access and a parking fee consistent with other Regional Parks. Use of the trails by motorized vehicles will be prohibited, except for mobility devices allowed pursuant to the Americans with Disabilities Act, and Mr. Wang’s personal use during his tenancy. Some areas may be closed to the public for health and safety reasons or to protect sensitive resources. There will be no overnight public accommodation, including camping, on the Property during Ag + Open Space’s ownership.
Purchase Agreement & Conditions to Closing
The purchase agreement establishes a purchase price of $5,500,000, subject to certain credits, and it conditions closing on the satisfaction of a number of negotiated conditions, some of which remain unsatisfied as of the submittal of this report. As a result, the closing date is uncertain at this time. Of note, the Purchase Agreement also provides that, subject to tribal consultation obligations, an area surrounding the ponds and wetlands on the future regional park and open space preserve will be named the “Tong Shu Wang Conservation Area,” after the seller’s mother. The proposed location for the Tong Shu Wang Conservation Area is depicted in Attachment 6.
The Purchase Agreement will be amended by the General Manager to update and refine Ag + Open Space’s conditions to closing in a manner that comports with this board report, and as advised by County Counsel. Through the proposed resolution, the General Manager and County Counsel are directed to administer the amended Purchase Agreement in the best interests of Ag + Open Space, to include such measures as are reasonably necessary in their judgment to facilitate the closing, while also ensuring fiscal responsibility and liability management. Such measures include stipulations regarding electrical and plumbing repairs identified as necessary to abate hazardous conditions and the relocation prior to closing of all individuals residing on the Property except those occupying the main house. Though individuals in the main house may elect to remain on the Property for a period after closing, staff recommends, and the attached resolution directs, that all households in the main house (except for Seller) will be relocated within 3-6 months of closing. Such relocation is necessary to make on-site housing available for Regional Parks staff, who will be tasked with daily operation and management of the Property immediately upon closing.
Relocation of Tenants
Ag + Open Space, as a government purchaser of the Property, is legally obligated to offer relocation assistance to tenants occupying the Property. (Mr. Wang, as the voluntary seller of the Property, is not eligible for assistance.) Ag + Open Space has contracted with Kathy Wood & Associates (“KW+A”), a consulting firm specializing in providing relocation assistance services to public agencies, to prepare the Relocation Plan for this project. The plan sets forth policies and procedures necessary to conform with statutes and regulations established by the California Relocation Assistance Law, California Government Code section 7260 et seq. and the California Relocation Assistance and Real Property Acquisition Guidelines, Title 25 - California Code of Regulations, Chapter 6, Section 6000 et seq. in compliance with The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970.
Ag + Open Space has retained KW+A to assist with implementing the Relocation Assistance Plan, which will include written notifications to eligible residential and business tenants regarding entitlements, timelines, and their rights. Depending on tenant eligibility, assistance will include (but is not limited to) referrals to at least three comparable replacement units, assistance filing relocation claims, and assistance submitting rental applications and appeals forms (if necessary), moving expenses, rental or down payment assistance, rental assistance (replacement housing payments), and re-establishment expenses. Costs to permanently relocate the three (3) households and one (1) business on the Property are estimated at $115,000 to $165,000.
Appraisal and Fiscal Oversight Commission Approval
Neil Leffman, MAI, SRA, prepared a full narrative appraisal with a date of valuation of September 2, 2022 that concludes that the appraised value of the Property is $5,500,000. The appraisal was reviewed by Howard Levy, who concluded it was reasonable. The Sonoma County Open Space Fiscal Oversight Commission also reviewed the appraisal at its January 12, 2023 meeting and determined by its Resolution No. 2023-001 that the proposed acquisition price of $5,500,000 does not exceed the fair market value of the Property.
Strategic Plan:
Vital Lands Initiative
Chanslor Ranch is essential for providing and connecting people to open space and publicly accessible lands near communities and protecting aquatic habitats that support sustainable aquatic ecosystems and water resources. Conserving this Property meets multiple objectives described in Ag + Open Space’s Vital Lands Initiative as follows:
• Protect properties that increase connectivity between protected areas;
• Protect areas important for climate adaptation;
• Protect unique and scenic landscapes;
• Protect the highest priority riparian corridors and aquatic habitats;
• Protect connected aquatic habitats and the lands that support this connectivity; and
• expand, create, or connect new parks and open space preserves and trails.
Ag + Open Space Fee Lands Strategy
In April 2011, the Ag + Open Space Board of Directors directed staff to prepare a Fee Lands Strategy to guide the stewardship and conveyance of lands held in fee by Ag + Open Space. The intention was to plan for the transfer of all Ag + Open Space-owned lands to appropriate successors. The plan favors transition to a portfolio of partial interests like conservation easements while acknowledging that in rare cases, Ag + Open Space “must purchase land in fee to ensure its protection.” (Ag + Open Space Fee Lands Strategy, p. 3)
The purchase of the Chanslor Ranch for transfer to Regional Parks is consistent with the Fee Lands Strategy because, although it does call for Ag + Open Space to acquire a new fee property, it involves a rare case when the purchase is necessary for achieving regional natural resource, open space, scenic, and recreational goals and for adaptation to climate change and sea level rise. The Seller desires to sell the Property as quickly as possible, and thus the accelerated purchase with subsequent transfer was identified as a necessary strategy to preserve this rare opportunity to create a public park and open space preserve on a property that has long been important to the long-range goals of both Ag + Open Space and Regional Parks. It is significant that, consistent with the intention of the Fee Lands Strategy, this action will direct Regional Parks to accept transfer of the Property within a relatively short period of time.
Expenditure Plan
The acquisition of Chanslor Ranch is consistent with the Expenditure Plan because it will preserve scenic landscape units and scenic corridors; and biotic habitat areas, riparian corridors, and other areas of biotic significance, while also creating unique opportunities for outdoor public recreation consistent with those open space designations.
2020 General Plan and Local Coastal Plan Consistency. This acquisition and planned transfer is consistent with the 2020 General Plan (specifically the Plan’s Open Space and Resource Conservation and Water Resources Elements) and the current and new Local Coastal Plans.
This acquisition and transfer is consistent with the 2020 General Plan as follows:
• retain the largely open, scenic character of important Scenic Landscape Units (GOAL OSRC-2);
• preserve roadside landscapes that have a high visual quality as they contribute to the living environment of local residents and to the County’s tourism economy (GOAL OSRC -3);
• preserve the unique rural and natural character of Sonoma County for residents, businesses, visitors and future generations (GOAL OSRC - 6);
• protect and enhance the County’s natural habitats and diverse plant and animal communities (GOAL OSRC -7);
• protect and enhance Riparian Corridors and functions along streams, balancing the need for agricultural production, urban development, timber and mining operations, and other land uses with the preservation of riparian vegetation, protection of water resources, flood control, bank stabilization, and other riparian functions and values (GOAL OSRC - 8);
• protect and conserve the quality of ocean, marine, and estuarine environments for their scenic, economic and environmental value(GOAL OSRC - 9);
• establish a countywide park and trail system that meets future recreational needs of the County’s residents while protecting agricultural uses (GOAL OSRC -17);
• protect, restore and enhance the quality of surface and groundwater resources to meet the needs of all reasonable beneficial uses (GOAL WR - 1);
This acquisition and transfer is consistent with the current Local Coastal Plan as follows:
• provide for new and expand existing commercial facilities in Bodega Bay, as shown on the land use plan, and including the expansion of Chanslor Ranch (Recreation; South Coast Specific Recommendation 7); and
• protection of Salmon Creek’s riparian area and freshwater marsh (Environmental Resources Section 9).
California Environmental Quality Act
Ag + Open Space’s purchase of the Property is statutorily exempt from CEQA pursuant to Section 21080.28 of the Public Resources Code because the purpose of the transaction is to preserve the natural condition of the property including plant and animal habitats and preservation of open space or lands for park purposes. This statutory exemption applies even if physical changes to the environment or changes in the use of the land are a reasonably foreseeable consequence of the acquisition, sale, or other transfer of the interests in land, provided that environmental review otherwise required by CEQA occurs before any project approval that would authorize physical changes being made to the land.
In addition, the purchase of the Property is categorically exempt from CEQA pursuant to 14 California Code of Regulations section 15313 (a) and (c) because it is the acquisition of land for conservation purposes, including preservation of fish and wildlife habitat and preserving access to public lands and waters where the purpose of the acquisition is to preserve the land in its natural condition. In addition, the purchase of the Property is categorically exempt pursuant to Section 15325(a) and (f), which exempt the transfers of ownership of interests in land in order to preserve the existing natural conditions, including plant or animal habitats and to preserve open space or lands for park purposes.
The continued availability of the Property for public day use and a commercial equestrian facility is exempt pursuant to CEQA Guidelines § 15301(c) (“Class 1”), which identifies exemptions for the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use, beyond that existing at the time of the lead agency's determination.
The project (the acquisition of the Property and the continuance of existing recreational uses) does not include any of the exceptions applicable to Class 1 exemptions listed in CEQA
Guidelines §15300.2, which would disallow use of a categorical exemption. Those exceptions are:
• The cumulative impact of the project and successive projects of the same type in the same place, over time is significant.
• The project will adversely affect a scenic highway or other scenic resources.
• The project site is located on a hazardous waste site listed pursuant to Government Code Section 65962.5 (i.e. Cortese List).
• The project may cause a substantial adverse change in the significance of a historical resource.
• There is a reasonable possibility that the project would result in a significant adverse impact due to unusual circumstances.
None of these exceptions apply to the proposed project exemption. Staff believes this project qualifies for CEQA Guidelines §15301(c), 15313(a) and (c) and 15325(a) and (f) because it is the acquisition of land for conservation purposes and the leasing, licensing, and minor alteration of existing structures and facilities that support public access to the Property. Therefore, preparation of a CEQA Initial Study is not required.
Prior Board Actions:
n/a
Fiscal Summary
|
Expenditures |
FY 23-24 Adopted |
FY 24-25 Projected |
FY 25-26 Projected |
|
Budgeted Expenses |
$5,650,000.00 |
|
|
|
Additional Appropriation Requested |
$500,000.00 |
|
|
|
Total Expenditures |
$6,165,000.00 |
|
|
|
Funding Sources |
|
|
|
|
Ag + Open Space Measure F |
$5,650,000.00 |
|
|
|
General Fund/WA GF |
$0.00 |
|
|
|
State/Federal |
|
|
|
|
Fees/Other |
|
|
|
|
Use of Fund Balance |
$500,000 |
|
|
|
Contingencies |
|
|
|
|
Total Sources |
$6,165,000.00 |
|
|
Narrative Explanation of Fiscal Impacts:
The purchase price of $5,500,000 for Chanslor Ranch and $165,000 in relocation costs for the four residential tenants and one commercial tenant was included in Ag + Open Space’s FY 2023-24 Adopted Budget. In addition to the acquisition cost, staff are anticipating $500,000 in land management and operating costs; $250,000 of the estimated operating costs will go towards an Interim Property Management Agreement with Regional Parks to carry out the day-to-day operations of the property and $250,000 for Ag + Open Space operations and maintenance costs. Both Ag + Open Space and Regional Parks will include any necessary adjustments to their revenue and expenditure appropriations related to the operations and relocation costs in the next Quarterly Consolidated Budgetary Adjustment (CBA) item.
The operation cost estimate assumes that the Ag + Open Space is not responsible for property improvements, major maintenance activities, nor correction of any existing code violations, as the intention is to hold the property in an “as-is” condition until transfer of ownership to Regional Parks within one year of Ag + Open Space’s acquisition. Staff will return the Board with the conservation easement and property transfer at a later date.
Narrative Explanation of Staffing Impacts (If Required):
n/a
Attachments:
1. BOD/BOS Resolution Chanslor
2. Location Map Chanslor
3. Site Map Chanslor
4. General Plan Map 2020 Chanslor
5. Interim Property Management Agreement between Ag + Open Space and Regional Parks
6. Conceptual Land Use Map Chanslor
Related Items “On File” with the Clerk of the Board:
1. Notice of Exemption Ag + Open Space
2. Notice of Exemption Regional Parks
3. Purchase & Sale Agreement Chanslor
4. Appraisal Chanslor