TO: Board of Supervisors
FROM: Steven Lederer, Director of Public Works
REPORT BY: Leigh Sharp, Deputy Director of Public Works - General Services
SUBJECT: Approval of Easement Purchase and Access Agreement to Napa Redevelopment Partners and Easement to City of Napa to facilitate extension of a roadway to serve the Napa Pipe Project
RECOMMENDATION
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Director of Public Works requests the following actions related to the Napa Pipe Development Project:
1. Find and determine that the conveyance of a public road easement to the City of Napa is in the public interest because it improves the flow of traffic to and from a development that includes affordable housing, and the conveyance will not substantially conflict or interfere with the use of the County’s South Campus property;
2. Approval of and authorization for the Chair to sign an Easement Purchase and Temporary Access Agreement with Napa Redevelopment Partners, LLC to accept financial compensation for the Public Road and Utility Easement of $28,171 and to provide temporary access to the County’s South Campus property for the purpose of relocating a fence from its existing location to an alignment adjacent to the easement area; and
3. Approval of and authorization for the Chair to sign a Public Road and Utility Easement in favor of the City of Napa for an area totaling approximately 8,044 square feet at the County’s South Campus to allow for the extension of a roadway and associated utilities, upon receipt of payment from Napa Redevelopment Partners, LLC.
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EXECUTIVE SUMMARY
Napa Redevelopment Partners, LLC (“NRP”), developer of what is commonly known as the Napa Pipe Development Project (“Project”), has requested the County convey an easement to the City of Napa over an area of approximately 8,044 square feet of unimproved County property located at the County’s South Campus (APN 046-610-021) (see attached map) to facilitate extension of a roadway to serve the Project. The easement for public road and utility purposes includes the right to lay, construct, repair, maintain, operate, renew and replace roadway improvements, sanitary sewer and storm drain collection systems, water distribution systems, electric facilities, and public utilities facilities. In consideration of County granting such easement to the City of Napa, NRP will financially compensate the County and shall relocate a fence from its existing location on the property to an alignment adjacent to the easement area (see attached diagram). As compensation for the grant of the easement, NRP shall pay the County $22,276 plus an additional $5,895 for Owners Association Dues attributable to the easement area, which is the fair market value for grant of the easement.
Approval of the recommended actions will authorize approval of an easement purchase and temporary access agreement with NRP and grant a public road and utility easement to the City of Napa to serve the Napa Pipe Development Project. The easement will not be fully executed until payments from NRP are received.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Where is it budgeted? |
Revenues will be received in Public Works Administration, Subdivision 1220000. |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Approval of the easement and associated purchase agreement will facilitate development of the Napa Pipe Project, which provides several public benefits for the community, including housing. |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
None |
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Consequences if not approved: |
Napa Redevelopment Partners, LLC will need to realign a major access road to the Napa Pipe Project and there will be significant delays to Project development. |
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County Strategic Plan pillar addressed: |
Livable Economy for All |
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ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: In 2019, the City of Napa prepared an Addendum to the Napa Pipe Environmental Impact Report (attached). The purpose of the Addendum was to address various amendments to the tentative subdivision map, development plan, and design guidelines, which included a roadway through this proposed easement. The 2019 Addendum concluded that none of the conditions described under CEQA Guidelines Section 15162 requiring further environmental review were present, and accordingly no subsequent or supplemental environmental impact report or negative declaration was required for the Project. On January 21, 2020, the City of Napa held a public hearing on the Amended Tentative Subdivision Map for the Project, which includes extension of the roadway, and concluded that the requested amendments to the Project would not have any environmental effects that were not addressed in the Certified EIR and that none of the conditions described in Section 15162 of the CEQA Guidelines requiring further environmental review were present. Similarly, based on the 2019 Addendum and previously certified EIR, the granting of the proposed easement and related work fall within the scope of the potential environmental effects identified in the certified EIR, that none of the conditions described in CEQA Guidelines section 15162 exist, and therefore no additional environmental review or document is required.
BACKGROUND AND DISCUSSION
The Napa Pipe Development Project (Project), located at 1025 Kaiser Road, was originally approved by the County in 2014. The Project is adjacent to the County’s South Campus property and will include up to 945 dwelling units (including 140 housing units affordable to low- and very low-income families); a continuing care retirement center; neighborhood serving retail uses; office space; light industrial uses; a hotel; a membership warehouse store (such as Costco) with a gas station; parks and open space; community facilities; publicly accessible and privately-maintained roads; and other required infrastructure.
Napa County and NRP entered into a Development Agreement (DA) on January 13, 2015, under which the City of Napa assumed the same rights and obligations as the County with respect to the DA after it annexed any portion of the Property included in the DA. The Property was fully annexed into the City of Napa in 2019 and the Project is being developed under an amendment to the DA wherein the County’s status as a party to the DA was extinguished and the City of Napa succeeded to all of the rights and obligations of the County under the DA. Under a separate agreement with the City of Napa regarding annual reporting of affordable housing production, the County is able to include in its annual housing production report the completed entitlements, building permits, and certificates of occupancy issued by the City for the Project, thus allowing the County to meet its regional housing needs allocation (RHNA) requirements.
On April 29, 2020, Napa County received notification from NRP that the Napa Pipe approved tentative map, Development Plan, and Development Agreement call for extension of a roadway for public access where under 10,000 square feet of the roadway improvements is on unimproved land owned by the County of Napa (APN 046-610-021). In the notification and subsequent conversations, NRP expressed interest in obtaining a roadway and utility easement, to be deeded to the City of Napa, over an area which is 8,044 square feet located on the west side of the County parcel in an area that is largely under a landscape maintenance easement with the Napa Valley Commons Property Owner’s Association (see attached map). An appraisal of the area was completed and the fair market value was determined to be $22,276. In addition, a value of $5,895 was determined to be the amount of compensation required to cover the portion of the Napa Valley Commons Property Owner’s Association Dues attributable to the easement area.
Government Code section 25526.6 authorizes the County to convey an easement to the City upon a finding that the conveyance is in the public interest and that the conveyance will not substantially conflict or interfere with the County’s use of the parcel. Granting of the requested public road easement benefits the public by improving flow of traffic to and from a development that includes affordable housing and other public amenities. Granting the easement will not materially interfere with County operations at the South Campus facility because the easement is over an unused portion of the parcel, and access to the South Campus facility is through a separate entrance off of Napa Valley Corporate Drive.