CUSD is Selling Surplus Property

Source: CUSD Web Site:

RESOLUTION NO. 1718-02 RESOLUTION OF THE BOARD OF TRUSTEES OF THE CAPISTRANO UNIFIED SCHOOL DISTRICT RECONFIRMING ACCEPTANCE OF THE ADVISORY COMMITTEE RECOMMENDATION; RATIFYING DECLARATION OF SURPLUS PROPERTY; AUTHORIZING OFFER OF DISTRICT PROPERTY FOR SALE TO PUBLIC ENTITIES; AND AUTHORIZING PUBLIC SALE OF PROPERTY- Laguna Niguel Property 2.47 Acres Paseo de Colinas zoned multi-family residential up to 30 units.

Background:

The Surplus Property is located on Paseo de Colinas above Niguel Hills Middle School identified as Parcels 637-181-01 and 637-412-02. This site has been re-zoned multi-family residential for up to 30 units.
The Property was declared surplus in 2006.
District Staff has represented that there have been offers to purchase this property and the Public has reason to believe that staff already has a buyer for this property based on staffs representations at previous Board meetings.

Supporting Documentation:

CUSDWatch: July 26, 2017 BOT Meeting Agenda Item #29

Board Audio at 170:10 Clark had already stated:
"There have been offers received for the property recently."

Blue Card Dawn Urbanek
Board Audio at 171.35 (2 hours 51 minutes 35 seconds)

PUBLIC RECORDS REQUEST CITY OF LAGUNA NIGUEL

Complaint to District Attorney

It is in the Public Interest to see that this property is sold at current fair market value to the highest bidder.

Current Use:

Staff has re-negotiated the lease with the current tenant from $3,200 per month to $11,000 per month. The Public has reason to believe that the rental value of this asset has been severely undervalued for years; and as a result, the public has been denied hundreds of thousands of dollars in rental income that could have been used for deferred maintenance projects and the benefit of students.

CUSD has $198 million in EMERGENCY facilities repairs and maintenance.
Source: School Facilities Condition Reports - Facilities Condition Assessment.

Presentation to the Board at the January 18, 2017 Asset Management Workshop

Staff recommended that the District re-negotiate use agreement with the local car dealership. This would allow CUSD to retain ownership of the property and provide CUSD with a revenue stream for deferred maintenance.

One month later; Staff without direction from the Board initiates the process of selling the property to a developer.

February 26, 2017 CUSD BOT Meeting Agenda Item #35

At the February 28, 2018 CUSD BOT Meeting Agenda Item #35 District Staff:

"recommends the Board approve the highest bid received for the Property obtained at the public auction, or, if applicable, the most advantageous counteroffer received in the event that there are no written or oral bids made at or greater than the purchase price terms and conditions set forth in the Purchase Agreement. Furthermore, Staff recommends the Board delegate authority to Clark Hampton, Deputy Superintendent, Business and Support Services, or a designee, to execute the final Purchase and Sale Agreement with the highest bidder."

Trustees have a Fiduciary Duty to represent the Interest of Taxpayers and students in all matters before the Board. Clark Hampton is not qualified to represent the interests of taxpayers in real estate matters. Clark Hampton and Kristen Vital have engaged in previous land transactions that have resulted in the gifting of public assets to local property developers.

See Complaint Filed with the District Attorney: The Gifting of $13 million in Taxpayer dollars to the Rancho Mission Viejo Company. CUSD paid $13 million over the publicly disclosed price for the Esencia school site. The land purchase was done on the consent calendar without a stated price. Public Records Request forced CUSD to disclose the price $34 million (2.4 million per acre) $13 million more than previously disclosed. A complaint was filed with the District Attorney for gifting of public assets.

CUSD always "buys high" and "sells low”.

CUSDs' attempt to partner with developers to facilitate the development of school district surplus properties using private/public partnerships, benefit the developers, and do so at the expense of taxpayers and students.

It should be noted that in 2007 when the City of Laguna Niguel approved a lot split adjustment, CUSD failed to record the deed. This was brought to the districts attention at several meetings, yet the deed is still not recorded and CUSD is now seeking to auction off the property "as is".

It should also be noted that in a presentation to the Board on July 26, 2017 the PUBLIC warned CUSD about the parcel not being split. The Public was ignored.

The Capistrano Unified School District has a habit of failing to record deeds.

Correspondence with the City of Laguna Niguel February 2018 proves that Clark Hampton made material misrepresentations to Trustees regarding Paseo de Colinas.

District staff never reached out to the City of Laguna Niguel regarding the development of Paseo de Colinas.

July 26, 2017 CUSD Board meeting Agenda Item #29
Board Audio at 170.10 (2 hours 50 minutes 10 seconds)
Clark Hampton presented this item to the Board.

Board Audio at 171.35 (2 hours 51 minutes 35 seconds)

BLUE CARD- Dawn Urbanek

I attended the workshop where all of this was discussed.

At the January 27, 2017 Asset Management Workshop District Staff recommended continuing the Use Agreement with the car Dealership and renegotiating terms. This would allow CUSD to retain Ownership of the site and provide CUSD with a revenue stream for deferred maintenance.

SUMMARY and NEXT STEPS: Renegotiate use agreement with local car dealership.

RESOLUTION No 1617-50 Asset Management Plan February 22, 2017 BOT Meeting Agenda Item #9 Exhibit #9 page 250.

Laguna Niguel - Paseo de Colinas Property The District will reorganize the Laguna Niguel site adjacent to Niguel Hills Middle School to allow for the more efficient layout of storage. The District will negotiate the amendment of terms on the existing use agreement for storage space with the local car dealership. The District will also explore the option of potentially selling the site. District staff will involve City staff in the course of moving forward with plans for this site.

Staff added this part to the Resolution- that is not what Staff was suppose to do.

I did a PUBLIC RECORDS REQUEST to the City of Laguna Niguel and asked if Staff was working with the City.

[The City said no- response was received after this meeting]

So what you have here is STAFF making the unilateral decision to Sell Property without Board Approval and they accomplished that by Lying to the Board of Trustees about what they said they were doing and what they are actually doing.

This is the same type of action that resulted in the gifting of $13 million in taxpayer money to the Ranch in the purchase of the Esencia School Site which is the subject of a DA Investigation.

Neither Kristen Vital nor Clark Hampton are licensed brokers. The Esencia deal was signed by an Attorney with no name using an X to sign his name.

A complaint has been filed with the Ca Bureau of Real Estate on behalf of taxpayers.

Board Audio at 174:22

Moved by Amy Hanacek. Oh! There is discussion?
Note: No matter what a member of the Public says - there is no real thought or consideration given to their statements. Trustees rubber stamp whatever Staff recommends.

Board Audio at 174:27

Trustee Holloway asked who had to be noticed about the sale of the sale of this property.

Board Audio at 175:54

Unidentified Attorney for CUSD- deliniated who needed to be notified regarding the sale of surplus property. The Attorney outlined the process. "This gets you back to where you were in 2006".
Note: The Attorney outlined the Legal Process- but is it being followed?

Board Audio at 170:10 Clark had already stated:

"There have been offers received for the property recently."

and

The City of Laguna Niguel has now responded that CUSD had not been in contact with them regarding this process.

This is another matter for the District Attorney. Clark Hampton SHOULD NOT BE UNILATERALLY NEGOTIATING LAND DEALS.

Board Discussion:

Board Audio at 176:08

Trustee Jones seconds the Item.

Board Audio at 176:17

Trustee McNicholas- we did re-negotiate the lease correct?

Board Audio at 176:25

Clark Hampton confirmed that the lease was renegotiated. Month to Month lease $11,000 per month.
Since we renegotiated the lease, Allen Cadillac does know we are planning to sell the property?

Board Audio at 176:35

Clark Hampton responds - If they don't... they will know soon.

[Laughter]

Board Audio at 176:37

And we have notified the City that it is up for sale again?

Board Audio at 176:35

Clark Hampton responds - yes we are having discussions. False Statement - see: PUBLIC RECORDS REQUEST and the City of Laguna Niguels' response.

Board Audio at 176:40

Moved by Amy Hanacek. Second by Trustee Jones.

Item Passed 5-0-2 (Trustee Pritchard and Reardon absent)