Savi Ranch plans could add dollars to Yorba Linda's sales tax revenue

Yorba Linda's fiscal managers have long believed that updating the Savi Ranch shopping area with more retail and better mobility could add significant dollars to city coffers, especially from sales tax revenue.

And now, a lengthy report from a city-hired consultant has provided the data to support that sentiment, with findings recently presented to the city's elected leadership.

Currently, Savi Ranch businesses contribute about 60 percent of Yorba Linda's sales tax income, but the dollar amount collected from non-residents who shop at the center could increase close to $800,000 yearly, under one of three suggested land-use alternatives.

The city's net revenue from Savi Ranch now stands at nearly $1.7 million per year in sales, property and transient occupancy taxes. The proposals could add $209,000, $424,000 or $791,000 to the total by adding 225,000, 432,000 or 1,067,000 building square feet at the 158-acre site.

Importantly, the report distinguishes between Savi Ranch's “net fiscal benefit” of almost $1.7 million and “total fiscal impact” of $3.15 million each year for the city. The former is sales tax paid by non-residents, while the latter includes dollars paid by city residents.

The consultant noted that “retail businesses do not generate sales tax revenue, they only collect it. It is households that actually pay retail sales tax.”

Each household generates about $118 per year in sales tax revenue for the city (one percent of each taxable dollar spent), while city expenditures for residents exceed revenues generated by residents by just 0.19 percent, so the city's “net revenue” from Savi Ranch sales taxes approaches the $1.7 million paid by non-residents.

The largest fiscal benefit comes from retail uses at $1.99 per building square foot, followed by commercial (hotels) at 85 cents, industrial at 49 cents and office at 43 cents. Single- and multi-family housing has a zero net impact, the report stated.

One of three alternatives presented, “district enhancement,” reinforces existing uses, while shifting the retail environment to increase experience-oriented shopping by adding 225,000 square feet and 123 housing units.

The second, “cluster expansion,” proposes specific land-use clusters, including a bio-technology and research/development hub, by adding 432,000 square feet and 390 housing units.

A third, “regional destination,” sees a major employment center by adding about 1.1 million square feet of office, hotel, retail and mixed-use (live/work) clusters, with 655 housing units.

The latter two alternatives, if implemented, would need the City Council to act on changes in zoning subareas, parking standards and building setbacks, which, if modified, could allow up to 1.4 million square feet of additional building space.

The study is financed by a $240,000 grant from the state Department of Transportation, with a $24,000 city match for expenses and staff time.

How condominiums lost out to Nixon library

Residential density – the number of single-family homes and condominium and apartment units allowed per acre – is the longest-running thread in Yorba Linda's political history, and 2015 will see more key decision-making on a matter that remains a hot-button topic.

More development on parcels voter-approved in 2012 for higher densities, new homes on adjacent land under county control and a second revision of an original 1971 General Plan that cemented the city's low-density identity will contend for City Council attention this year.

These density deliberations are likely to again fill the council chambers with large numbers of residents with differing views on an issue often called “the electrified third rail” of local politics.

Interestingly, this year marks the 30^th anniversary of density decisions for the site now home to the Nixon Presidential Library & Museum, a topic for my recent Yorba Linda Historical Society presentation based on oral histories, council minutes and back issues of the Yorba Linda Star.

The issue drew large audiences to council meetings in 1985, which led to decisions effectively precluding condominium development on property the city later donated for construction of the Nixon library.

Richard Nixon's father, Frank, purchased the nine-acre property on the northeast corner of the Eureka Avenue-Yorba Linda Boulevard intersection in 1912, and sold the land after moving his family to Whittier in 1922, seeking better prospects than those provided by his lemon grove.

Flush with the $50,000 proceeds from a bond issue passed by a 5-1 margin in 1925, the Yorba Linda School District bought 5 ½ acres of the property from William Atkinson for $10,500 and built a K-8 school for $51,801. The district added the remaining acreage in 1948 for $15,500.

Safety questions lingered after the 1933 earthquake, and the district eventually razed the school in 1954 and constructed a new facility to be named after native son Richard Nixon.

That school closed in 1981 and the site put up for sale.

Four years later, a prospective buyer, Harold Lynch, offered $1.2 million, if the land could be rezoned to high-density residential, allowing him to build 61 condominium units on 6.1 acres.

A small land buffer would separate the condos from 1.1 acres with the home the Nixon Birthplace Foundation, formed by residents in 1968, had bought from the district for $125,000 in 1977.

City staff recommended approval of 10 units per acre, but the planning commission agreed to 6.7. Both were non-starters for the council, which discussed 3 units per acre before approving 4 units on a 4-1 vote.

With just 24 condo units possible, Lynch lowered his offer to $650,000, which the school district termed “totally unacceptable.” The city paid the district $1.3 million for the land in 1988 and agreed to remove the school and grade the site.

The Nixon Library Foundation built the facility, restored the home and opened in 1990.

Council balks at assisting middle-income buyers

An update to Yorba Linda's mortgage assistance program to include moderate-income buyers of housing units to be built on land approved for higher density development by voters in 2012 didn't pass muster with City Council members.

The proposal, outlined in a report from Pam Stoker, the city's economic development manager, would have provided down-payment assistance for up to 10 percent of a unit's sales price, funded by contributions to the program by the developers of individual projects.

Loans would be “key to the moderate-income buyer who qualifies for a home loan but may not have the entire 20 percent down payment saved” by bridging any gaps the borrower may have for making a typical down payment, noted Stoker.

City costs would include 8 to 12 hours a month of staff time for a loan package review for qualifying applicants, document preparation, annual monitoring, subordination and payoff demands, according to Stoker.

That was a sticking point for Councilman Craig Young, who removed the issue from council's “consent calendar,” which packages routine matters for a single vote, for separate discussion.

Young estimated the city costs at between $80,000 to $120,000 over a 15-year period and double that for 30 years. He said he'd rather see funding assistance go toward the housing needs of very low- and low-income households instead.

His council colleagues agreed on a 5-0 vote to direct staff to bring back other methods to invest the funds that might help achieve state-mandated lower income housing numbers.

Interestingly, under the rejected program the down payment loans would have been forgiven if the borrower remained in the home for 15 years or longer. However, for homes sold before 15 years of residence, the loans were to be fully repaid, along with an equity share percentage.

Projects on parcels voter-approved for higher densities include, so far, three with conditions tied to developer contributions: 51 Brandywine units south of the Nixon library, 80 Tesoro units at the westend on Yorba Linda Boulevard, and 55 City Ventures units at Wabash Avenue and Rose Drive.

A prior mortgage assistance program existed for 15 years before the state-mandated dissolution of all redevelopment agencies, including Yorba Linda's that operated 1983-2012.

On another matter, council members accepted Mayor Gene Hernandez's appointments to 15 county and regional panels for 2015, including three that pay appointees to attend meetings, usually monthly.

Young will continue at the Transportation Corridor Agency ($120 per meeting plus 56 cents a mile), Hernandez at the county Fire Authority ($100 per meeting) and Peggy Huang replaces Young for a two-year term at the county Vector Control District ($100 per meeting).

Young and Mark Schwing continue on the city's Finance Committee that reviews accounts payable and other fiscal items prior to presentation at council meetings.

Landscaping costs remain on city's front burner

Issues relating to the Landscape Maintenance Assessment District remain on the front-burner as Yorba Linda enters the new year facing increased expenses for the budget-strapped zones

One matter involves claims for damages filed by 44 homeowners and another is a sizeable increase in the cost to maintain landscape zones on the city's east and southeast sides.

The homeowner claimants allege the district failed to provide landscaping benefits in exchange for assessments paid in 2001-11, according to a report from Mark Aalders, assistant to the city manager.

The City Council denied the claims on a 5-0 vote, giving the residents six months to file lawsuits. Similar claims previously filed by the Rancho Dominguez and Green Hills community associations were settled for more than $750,000.

A $120,831 yearly increase to maintain a package of eastside landscape zones could presage similar jumps as contracts for other zones come due, according to another report presented to council members.

Council awarded the eastside contract to low bidder Merchants Landscape Services of Santa Ana for $337,546, compared to the previous year's cost of $216,715. The contract is for three years and can be extended in two-year increments up to three times.

“Offering vendors the potential for longer term contracts allows them to purchase equipment with less risks and develop crew structures that can be more stable so the contract becomes more attractive to bidders,” the assessment district's manager, Bruce Carleton, reported.

Interestingly, the new bid process became necessary when the previous vendor, Valley Crest Landscape Maintenance of Anaheim, didn't seek an extension of the contract won with a low bid in 2012, and only three firms bid for the contract that begins Feb. 1.

The “reduced number of bidders reflects a trend that contractors are not as hungry for municipal work as they were when the economy was in a distressed state at the last bid,” Carleton noted.

Another reason for the increased cost, stated Carleton: “The need to conserve water, as it has in many areas of Yorba Linda, has (led) to the loss of ground covers, which are thirsty in nature” so “the effort to control weeds becomes more labor intensive.”

Funding will come from assessments collected in five eastern landscape zones through the county's property tax rolls, supplemented by transfers from the city's general fund reserves.

Generally, all property owners pay assessments for landscaping along major streets, but only about half of the city's properties are located in the 29 “special benefit” zones with extra costs.

Another new expenditure is $15,000 to produce and mail “outreach documents” from the eight-member citizens committee formulating strategies to address the district's funding woes.

Reminder: The public is invited to my presentation at the Yorba Linda Historical Society 7 p.m. Monday at the Community Center.

Big change in commission posts

A big change will impact the 33 individuals who fill 43 positions on four city commissions and two citizen advisory committees, as the City Council has decided to align the terms with council election cycles and make new appointments for all the positions later this month.

Current members can reapply for the positions they now hold, and applications are available for residents who want to serve on the council-appointed bodies. Deadline is 5 p.m. Jan. 9 at the City Clerk's office.

Some appointments on each commission will be for an initial two years, with other appointments for four years to continue staggered terms. The 12-year limit will apply to all positions and include retroactive service for members reappointed.

Commissioners and committee members have served at the council's pleasure since the first body, the Planning Commission, was created a month after the city's 1967 incorporation.

A member of that first commission, George Machado, was the first to be dumped, when he feuded with the council about housing density. He won a council seat in 1970, after he left.

Council created the Parks and Recreation Commission in 1979 and the Traffic Commission in 1987. Elected library trustees became commissioners in 1985, when the city took over the

Yorba Linda Library District, independent since 1914.

Other commission-council disputes led to firings, including four parks and recreation members in 1993 on a 3-1 council vote and a planning commissioner in 2011 on a 4-1 vote.

A few commissioners opposed the changes at a recent council meeting, but a lone “no” vote came from Councilman Mark Schwing, who said the process wasn't broken. Some see aligning terms with council elections as further politicizing appointments, accenting a “who supports who” factor.

Here's the current lineup of commission and committee members, with the final year of eligibility under the 12-year limit for commissioners:

Planning: Robert Lyons, 2019; Jim Nebel, 2021; Robert Pease, 2025; Karalee Watson, 2023; Jim Wohlt, 2019.

Parks and Recreation: Doug Dickerson, 2025; Doug Knarr, 2019; Terri Memole, 2021; Stewart Rixson, 2023; Tom Watts, 2021.

Traffic: Nathaniel Behura, 2021; Jerry Brakebill, 2026; Mary Carbone, 2018; Mark Long, 2025; Al Yalda, 2025.

Library (not previously term-limited): Marilyn Adams, Carin Benner, Cheri Hansen, Randie Noell, Natalie Odebunmi, first appointed in 2000, 2010, 2006, 1994, 2013, respectively.

Landscape advisory: Eileen Barme, Bobbie Cooper, Kay Dotson, Greg Gianelli, Dan Hildebrandt, Judy Murray, Ken Peterson, Bill Schuler.

General Plan advisory: Lindon Baker, Ryan Bent, Peggy Huang, Ken Peterson, John Rafter, Ed Rakochy and commissioners Adams, Behura, Benner, Carbone, Hansen, Lyons, Noell, Watson, Watts.

I'll update who's in and who's out to see if political opponents of current council members survived, especially in light of last year's tumultuous recall and November election ballots.