Yorba Linda sells portion of property once designated for Friends Christian High School to developer for high-end homes on Bastanchury
A
portion of the property once designated for a $53 million Friends
Christian High School that was expected to enroll some 1,200 students
from mostly North Orange County cities is being sold to a developer
with plans for high-end residential development for the land.
The 23
homes proposed for a 12.64-acre site on the north side of Bastanchury
Road between Casa Loma and Eureka avenues will be expensive, since
the price the developer is paying for each lot is $921,000, a total
close to $21.2 million, less some still-to-be-determined costs.
A sales
agreement and joint escrow instructions with Pacific Cascade Group
for the city-owned property was approved recently by the Yorba Linda
City Council. A due diligence period ends Oct. 13, with escrow
expected to close Nov. 12.
The city
plans to apply the sale proceeds to an already-approved Arts Center
to be built in conjunction with a new library on the east side of
Lakeview Avenue near the Lemon Drive intersection that's expected to
open by summer 2020.
The
city is selling the property in “finished lot” condition, meaning
rough grading, streets and public infrastructure will be completed.
Estimates of the to-be-determined “finished lot” costs range to
$200,000 per lot, to be deducted from the purchase price.
“The
sale of the property in a finished lot condition increases the
potential sale value of the property by eliminating the risk of
unknown costs incurred by the purchaser...,” as stated in a
report prepared by project manager Colleen Callahan.
A
city-hired consultant “received tremendous interest from potential
purchasers,” Callahan reported. Pacific Cascade Group was chosen
partly due to the company building “the type and quality of upscale
homes that the city is accustomed to in residential estate-zoned
areas.”
Callahan
also noted: “As in any real estate transaction, a final closing
hinges on continued negotiations during the due diligence and escrow
periods,” but the city and developer have agreed to “work
cooperatively” to finalize the sale “to facilitate the ultimate
development....”
The
once-hearlded Christian high school was a dream of many residents and
several past city officials for a 10-year period beginning in 2003,
when the city leased 32 acres on Bastanchury Road to the school on a
4-1 council vote.
The 32
acres included the 12.64 acres now being sold and another 19 acres to
the north, which are restricted for use for “public purposes.”
During
the 10 years of the lease, the sponsoring organizations, Yorba Linda
Friends Church and Rose Drive Friends Church, raised and spent $14
million on the site, $3 million in lease payments and $9 million for
entitlements and improvements.
But
eventually, due to what church representatives at the time said were
“onerous lease terms,” $39 million in bank loans could not be
obtained to fund construction, and the city ended the lease in 2012
after several missed payments.