Esencia K-8 School Site - Appraisal for Site came in at $34 million dollars

This article is not properly formatted for the Patch- it can be read in it entirety at this link:

http://cusdwatch.com/index.php...

CUSD Staff is asking Trustees to ratify a resolution to purchase the Esencia K-8 School site (vacant land) for $33.86 million when all documentation prior to the resolution stated that the cost of the land would be $21 million.

February 22, 2017 BOT Meeting Agenda at page 252 http://capousd-ca.schoolloop.c...

CUSDWatch Detailed Background Information: http://cusdwatch.com/index.php...

CUSDWatch Appraisal with comments can be found at this link: http://disclosurecusd.blogspot...

The proposed scope and cost of the land for Escencia was always projected to be $21 million for 14 acres - $1.5 million per acre.

Agenda Item #10 RESOLUTION to approve the purchase was presented to Trustees and the Public without a Price.

Members of the Public Requested that the Agenda Item be amended to reflect the purchase price of the land.

The Item was amended by Staff to reflect a Purchase price of $33.86 million - $2.42 million per acre

Member of the public requested that Staff make Public the three appraisals that would provide answers as to how the price went from $21 million to $33.86 million

The Staff has not made the appraisal available to the Public to date, however members of the Public have obtained a copy of the appraisal; and have studied the appraisal, and have found the following:

There is only one Appraisal of this land.

The appraisal was requested by CUSD and was completed on October 10, 2016.

Staff received the Appraisal October 24, 2016.

Trustees received the Appraisal in February in preparation for the February 22, 2017 BOT meeting vote to approve the purchase for $33.86 million.

Staff did not provide Trustees with an opportunity to review the proposal prior to this Board Meeting.

Staff could not add the Proposal to the February 22, 2017 BOT meeting due to potential Brown Act violations.

The Appraisal with PUBLIC comments can be found at this link: http://disclosurecusd.blogspot...

In a nut shell:

The Appraisal was based on "highest and best use” - the Appraiser valued this vacant lot as if it had 100 dwelling units on it.

The empty lot contains no entitlements, and in fact the Ranch maintained the right to build these 100 homes in other parcels in RMV.

on page 27 of the Appraisal it shows that the valuation is based on 6 sales. 4 of the sales closed in 2015 and showed valuations closer to the $21 million dollar figure. 2 Sales closer to the $34 million dollar figure were pending or future sales.

The Agreement for Purchase and Sale and Escrow PA2 School Site was executed by Clark Hampton on January 19, 2017 without Board Approval.

The Attorney for CUSD signed his name with an X and a scribble which is not identifiable.

The People feel that this Agreement was entered into with the intent to defraud the public, and a complaint has been filed with the District Attorney.

CUSD added a Special Board Meeting on February 22, 2017 to disclose this Item in Closed Session.

The Item lists Kristen Vital and Clark Hampton as the Agency Negotiators for this purchase.

Neither Clark Hampton nor Kristen Vital are licensed real-estate brokers and were not qualified to negotiate this deal.

Attorney Stan Barankiewicz works for the law firm Orbach, Huff, Suarez and Henderson who are also handling the Conflict of Interest case against Trustee Hatton-Hodson.

The Attorney Fees paid to this firm were increased from $100,000 to $300,000 at the February 22, 2017 BOT Meeting.

Of Great Concern to the Public is the increasing over capacity of CUSD schools.

A March 2016 Capacity study shows that CUSD has 8,555 more students than legal capacity.

This “overcapacity” does not include NEW students that will be generated by the Ranch Development

The Public has made several requests to the County of Orange Planning Department to ascertain how many actual building permits have been issued in Planning Area PA1 and PA2 and what type of dwelling units is attached to the permit.

It is the Publics fear that well over an additional 1,000 (potentially more) students may not have a seat in our Public school system starting in September 2017.

The Ranch is currently paying the District to bus it’s residents to Las Flores K-8 and Tesoro High School giving the Ranch students PRIORITY over Mello Roos taxpayers who have paid for San Juan Hills High School and Las Flores, Tesoro and San Juan Hills High School.

Mello Roos taxpayers in both Ladera Ranch and Talega need a legal opinion as to who has priority at these schools - without one there students are being told to go to Cappo Valley High School and San Clemente High School even though their money has pays for Las Flores, Tesoro, San Juan Hills and San Clemente and they should have a choice.

The original 2013 EIR/Negative Declaration allowed the Ranch to build a maximum number of dwelling units in Planning Areas 1-9 of 14,000. The projected time line was 25 - 30 years.

The original 2013 EIR/Negative Declaration called for Esencia K-8 to open September 2017. It is still a dirt lot.

The original 2013 EIR maximum allowable units PA1:

351 Single Family

304 Single Family Attached

286 Multi Family

941 Total

The original 2013 EIR maximum allowable units PA2:

536 Single Family

691 High Density Single Family

450 Single Family Attached

290 Multi Family

1,967 Total

In an addendum the Ranch was given permission to build 264 Affordable housing units (not included in the 14,000 maximum units).

Total Units 2013 EIR 3,172

It should be noted that the Ranch timeline for build out has been accelerated and the density of units has increase.

The 2015 EIR shows that Maximum Units in Planning Area 2 is 3,291

With all addendum’s the Maximum Dwelling Units permissible in (excluding low income housing)

1,287 Planning Area

3,291 Planning Area

Total 4,578

4,578 - 3,172 = 1,406 more homes than CUSD planned seats for.

Also of concern is the fact that the student generation rates were suppose to reflect Ladera Ranch. The number used are low because they reflect Orange County as a whole.

Also of concern is the fact that the student generation rates were suppose to reflect a certain number of units of age qualifying homes which has been changed and may have school age children living in them

The bottom line is that we have 6 months to solve the problem of where to put all of these students.

The solutions will not come from CUSD. The Public needs the help of elected leaders to solve this problem that will effect the quality of life of every taxpayer in south Orange County.