Loading...
HomeMy WebLinkAbout090925-03.2 STUDY STUDY SESSION MEMORANDUM 3.2 TO: Mayor and Town Council September 9, 2025 SUBJECT: Potential use of Town property on Fostoria Way adjoining East Bay Regional Park District Property (APN 218-090-032) BACKGROUND In 2014, the East Bay Regional Park District (the “District”) acquired title to the 17-acre parcel of land formerly owned by Armand Borel. The Borel property, located at the intersection of Camino Ramon and Fostoria Way, had been a walnut farm and Mr. Borel’s will left the property to the District to maintain as a park. However, in order to pay off the considerable tax and other debts on the property, the District received court permission to sell the northerly seven acres of the property for residential development, as permitted by the Town’s General Plan. Those seven acres are currently under development by Trumark Development. The District is preparing to release for public review and comment a draft plan for an agricultural park on the remaining ten acres. The remainder of this Background section is a history lesson which is necessary to understand the issue facing the Town. In the mid-1980’s, the Borel family’s decision to sell a portion of their property lead to a number of development projects (including the Costco/Marshalls site and the adjoining townhouses) as well as a number of lawsuits. Relevant to this discussion, two key things came out of the activity: • The Town changed the General Plan designation for the 17 acres retained by the Borels to commercial with the intention of that site ultimately being developed with additional commercial uses; and • The Town ended up owning a parcel of approximately 1.6 acres at the southwest corner of the remaining Borel property. In 1993, the Town, the City of San Ramon and the Contra Costa Transportation Authority (“CCTA”) entered into what was referred to as the “Fostoria Agreement.” This Agreement contained the following key provisions: • The Town and CCTA paid Fostoria (a developer) $270,000 to quiet title to the 1.6 acres owned by the Town. Of that total, CCTA paid $220,000, the Town the remaining $50,000. • The Town conveyed 0.5 acres of our site to San Ramon to allow for completion of the Fostoria Way overpass of I680 and the City and Town went to LAFCO together to adjust the boundary between the Town and City. Town Fostoria Property 2 September 9, 2025 • San Ramon also granted the Town a license to access our property from Fostoria on an unpaved roadway. The license remains in effect only so long as the Towns the property or acquires another access. • The Town agreed to sell its remaining 1.1 acres under one of two scenarios: o If anyone were to develop the adjoining Borel property for non-agricultural use, the Town would: 1) condition approval of any such to provide access to the Town parcel; 2) have the 1.1 acres appraised at highest and best use; and, 3) sell the property to a private party for no less than that appraised value. o If the Town chose to sell the property before Borel developed, it would be appraised with and without permanent access. o In either event, the proceeds of the sale would be split with 75% going to CCTA and 25% to the Town. • Both CCTA and the Town agreed to spend those proceeds for transportation “purposes or improvements”. The Town’s parcel can be seen in relation to the District’s property and the adjoining roadways on page 4 of this report. With the exception of the right to use the unpaved maintenance road off of Fostoria, the parcel is landlocked. DISCUSSION Once it became clear that the District had acquired clear title to the Borel property and would be preserving/developing the site as an agricultural park, Town staff has engaged District staff in conversations regarding possible future uses of the Town’s parcel. Because of the location of the parcel and the fact that it is landlocked, there are really only two options for the Town Council to consider: uses compatible with the District’s park or sale to the District. Possible Compatible Uses While the District has not yet finalized its detailed plans for their park, it will be a passive use park, preserving portions of the walnut orchard as well as the structures on the property. Other elements may include a meadow area, picnic tables and a walking path. Access and the parking lot will be adjacent to Camino Ramon, with limited access to the western end of the property. There will be no active recreational uses on the site. With these parameters in mind, the Town’s Parks, Recreation and Arts Commission discussed potential recreation uses for the Town’s parcel at their July 9, 2025 meeting. Given the location of the parcel immediately adjacent to I680, the lack of access and the need for any use to be passive, the Commission did not see any beneficial uses of the site for the Town and suggested possible sale of the site to the District. Town staff has not identified any other Town uses for the property. Town Fostoria Property 3 September 9, 2025 Possible Sale of the Property While the property has general plan and zoning designations allowing for commercial development, without access to the site, that is simply not a viable option. In preliminary discussions with District staff, they have expressed some interest in acquiring some or all of the Town’s parcel for their use, either incorporating it into the park and/or for use as a small corporation yard. In order to pursue a sale to the District, the Town would first need to have discussions with CCTA given their rights under the Fostoria Agreement and with San Ramon regarding possible continued use of their maintenance road. In addition, there could be potential need to comply with the provisions of the Surplus Lands Act. RECOMMENDATION Provide direction to Town staff regarding potential uses and/or sale of the Town’s parcel. Prepared by: Robert B. Ewing City Attorney Town Fostoria Property 4 September 9, 2025