Property Management Division

Property Management Division

The Property Management Division provides leasing, property management, acquisitions and release of real property services for the County. The Property Management Division generates revenue from and provides stewardship over Placer County’s real-property assets.

1. Proposed Tahoe Government Center Offers Great Community Benefits

Placer County recently completed a site selection process that involved the investigation of sites throughout the Lake Tahoe region. The goal of this process was to locate a site that could accommodate the development of a regional Tahoe Government Center to serve Lake Tahoe area residents. This site would house an approximately 24,000 square foot facility that would consolidate a variety of land use and general government functions in one location to deliver more efficient public services, provide convenience for the public and clients, upgrade staff working conditions and ensure sustained accommodations of County departments within County-owned facilities in the Tahoe region.

***BACKGROUND***

In spring 2006, the County distributed a real estate solicitation for the acquisition of land for the future Tahoe Government Center.

Based on the County’s evaluation and the input from the Tahoe community, staff determined that three properties provided the best opportunity for development of the Government Center including accessibility, location, size, ability to develop, compatibility, fiscal and redevelopment/economic revitalization standpoints. Therefore on July 24, 2007, the Board of Supervisors approved the selection of the following three sites as finalists and directed Facility Services staff to proceed with extensive investigations into these three sites:

· Trading Poster Center, Tahoe City

· B.B. LLC property, Kings Beach

· Parcel 1 of the Joerger Ranch (future County-owned property), Martis Valley

At the March 11, 2008, Board of Supervisors' meeting, Facility Services' staff reported that it had performed the more extensive investigations into general development costs and constraints and development implications associated with the three properties, and reported that:

· The owners of the Trading Post Center in Tahoe City withdrew its property from further consideration.

· The B.B. LLC property in Kings Beach holds the best opportunity to collaborate in the redevelopment efforts underway in Kings Beach and is the most favored by the community and staff. Nevertheless, due to project uncertainty due to the regulatory environment and projected development costs, outright selection of this site was not recommended.

· Several limiting factors associated with Parcel 1 of Joerger Ranch in Martis Valley create potential barriers to development of the Government Center at this site.

Therefore, the Board took the following actions:

· Eliminated Parcel 1 of the Joerger Ranch subdivision (also known as Lot G of the Timilick subdivision) from further consideration.

· Directed staff to monitor B.B. LLC's application to the Tahoe Regional Planning Agency Community Enhancement Project and to work with B.B. LLC to better quantify development costs.

· Directed staff to pursue other economical opportunities for development of the Government Center in Tahoe.

While evaluating development costs associated with B.B. LLC's Kings Beach Town Center site, staff pursued other economical opportunities. As a result the following three additional potential sites were evaluated:

· Tahoe Tree Company: 10+ acre site at 401 W. Lake Boulevard in Tahoe City (corner of Highway 89 and Granlibakken Road) near the existing Tahoe Administration Building.

· Highlands Village: 11+ acre site at Fabian Way and Highway 28 in the Dollar Hill community.

· North Tahoe Public Utility District (NTPUD) properties at 875 National Avenue in Tahoe Vista. The TGC development at this location would be a joint project with the NTPUD.

*** COMMUNITY MEETINGS***

County staff held 17 community meetings to review the Tahoe Government Center site selection process and to receive public input regarding the sites considered.

1. Board of Supervisors - 4/4/06

2. North Tahoe Regional Advisory Council (NTRAC) - 4/13/06

3. Tahoe Managers’ Meeting - 9/1/06

4. NTRAC - 9/14/06

5. Kingswood Neighborhood Meeting - 2/15/07

6. Squaw Valley Property Owners’ Meeting - 3/26/07

7. Squaw Valley MAC - 3/28/07

8. Board of Supervisors - 4/3/07

9. NTRAC - 4/12/07

10. NTRAC - 6/14/07

11. Board of Supervisors - 7/24/07

12. Tahoe City Downtown Assoc. and No. Tahoe Business Assoc. - 10/15/07

13. Board of Supervisors - 3/11/08

14. Community Meeting - 2/17/09

15. NTRAC - 2/19/09

16. Board of Supervisors - 4/21/09

17. Board of Supervisors – 7/21/09

In addition staff corresponded with interested constituents through email communications. Numerous articles were also published in local newspapers.

***APRIL 21, 2009 PLACER COUNTY BOARD OF SUPERVISORS MEETING ***

The Department of Facility Services presented an update on the Tahoe Government Center site selection process to the Placer County Board of Supervisors on Tuesday, April 21, 2009 at the Northstar at Tahoe™ Resort Board Room. During this meeting staff described the fiscal implications and risks associated with the four properties considered. In relation to the B. B. LLC property in Kings Beach, staff described three development options that could be pursued with the site developer/owner.

The Board of Supervisors identified its selection priorities as listed below in their order of priority.

A. Revitalization:
The project’s presence and role in a Redevelopment Area, including the degree to which the project would: bring economic benefits to the County and Community, become a catalyst to redevelopment by bringing synergy to the Community, become an opportunity for County leadership in Redevelopment efforts, and provide off-hour community benefits.

B. Costs:
The project’s cost attributes including: lowest Pro Forma Project Costs, flexibility in timing project funding, ability to implement competitive cost strategies, and leverage with other partners’ participation.

C. Risks:
The risk factors associated with the development of the TGC at the particular site including: entitlements and project approvals, physical risks (e.g. environmental, demolition, grading, land coverage), dependence on the performance of development partners, and community opposition.

D. Facility Issues:
The site’s physical and location attributes including: proximity to future development areas, a walkable and pedestrian/bus oriented commercial location, traffic constraints, advisory body and County employee support/preference, and accommodation of facility requirements.

***JULY 21, 2009 PLACER COUNTY BOARD OF SUPERVISORS MEETING***

Following completion of the evaluation process, the Department of Facility Services presented its recommendations related to the TGC site selection to the County Board of Supervisors on Tuesday, July 21, 2009 at the Resort at Squaw Creek. Access to the staff report is through the following link: click here

The Board of Supervisors confirmed the “B.B. LLC Option 1” project in Kings Beach as the top-ranked site for the Tahoe Government Center (TGC). In its action, the Board authorized staff to negotiate a Master Agreement, which defines the material terms of a Lease Purchase Agreement and key approval/construction milestones.

In a companion item on the agenda that day, the Board of Supervisors authorized staff to negotiate an Option to Purchase Agreement for the second-ranked site, the Tahoe Tree Company property in Tahoe City. This Option would provide the County with two-years to secure an alternate site, if the B.B. LLC mixed use development project is unsuccessful in securing necessary financing, environmental approvals, or entitlements. Access to this report is through the following link: click here

***CURRENT STATUS***

B.B. LLC Option 1. On March 16, 2010, the Board approved an Agreement to Negotiate between the County and B.B. LLC. This Agreement memorialized the parties’ intent to negotiate a lease purchase transaction for the proposed 24,000 sq. ft. building located within B.B. LLC’s Kings Beach Town Center project. The Agreement to Negotiate replaces the proposed Master Agreement since it was determined that a Master Agreement was not an appropriate model for this type of transaction.

During the six month term of the Agreement to Negotiate, the parties will negotiate an option agreement that would obligate the County to enter into a lease/purchase agreement after all discretionary approvals/entitlements are received. To date, B.B. LLC has entered into a four-party agreement allowing the environmental review process to commence. Based on the status of B.B. LLC’s project applications, the TGC is expected to be complete in Fiscal Year 2014/15.

Tahoe Tree Company. In recognition that neither an option nor an agreement to negotiate would meet the County’s objectives to secure an alternative location, negotiations with the owners of the Tahoe Tree Company were discontinued.

Customs House. While the Board remains committed to ultimate development of the TGC in the Kings Beach Town Center project, the County has near-term space needs in the Tahoe Basin that predate that project’s estimated completion date. At this time the Assessor’s office lease is scheduled to expire in June 2010 and the leased facility at the West Shore Tahoe Administration Building housing the Community Development Resource Agency and Environmental Health Division will expire in June 2012.

County staff learned of an opportunity to acquire a bank-owned property in Tahoe City. This property, commonly referred to as the Customs House, is located on North Lake Boulevard and is improved with an approximately 11,400 sq. ft. commercial building constructed in 2005.

On April 6, 2010, the Board of Supervisors delegated authority to the Director of Facility Services, or his designee, upon satisfaction of the conditions to close as set forth in the Option Agreement between the County and the property owner, Nevada Security Bank, to complete the property acquisition. Conditions to close include investigation of the property’s physical, environmental and title condition and receipt of permits from the County and TRPA. To allow the County use of the building, staff is pursuing a Minor Use Permit and a variance to the parking requirements.

The acquisition of this property provides the County an opportunity to acquire a valuable capital asset at a price well below fair market. The Customs House would provide significant flexibility for a variety of County occupancies in the Tahoe Area. As noted above, this includes the Tahoe Assessor’s Office following its lease expiration in summer 2010, and the West Shore Tahoe Administration Building in the period between its lease expiration in 2012 until completion of the TGC projected for Fiscal Year 2014/15. Following these near-term occupancies, the building may be used by the Burton Creek Public Safety departments, while that facility undergoes reconstruction. Two of the eight suites in this building are currently occupied by professional businesses, who would become tenants of Placer County.

Agreement negotiation phase. Staff is working with both B.B. LLC and the Tahoe Tree Company to secure agreements as directed by the Board of Supervisors.

Timeline: Facility Services Staff will return to the Board of Supervisors for consideration of the B.B. LLC Master Agreement and the Tahoe Tree Option to Purchase Agreement, should negotiations conclude successfully. At this time, a firm schedule is not developed but staff intends to either present a recommendation or update at the October Board meeting in Tahoe.

Comments/Questions:

Your input is valued. You may submit comments by sending them to the Department of Facility Services Property Management Division by email to facpropmgmt@placer.ca.gov, or facsimile to (530) 889-6857, Messages can also be left at (530) 886-4963.


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