New Homeless Shelter In Escrow On Pico Land By Business Park

San Clemente, CA: 10 acres of land along Avenida Pico are currently in escrow with the Emergency Shelter Coalition.

By Arrow Santos

(Note: Jim Wynne and Kidder Mathews are NOT involved with either party in this transaction.)

The Land

The two land parcels (APN #688-011-01 and #688-011-02) are owned by the Rancho San Clemente Business Park (RSCB) Association. The parcels are located across from the Lowe’s shopping center on the west side of Avenida Pico, straight ahead from the intersection on Calle Amanecer. The sale is contingent upon a passing vote from RSCB commercial property owners that would allow the two land parcels to be removed from the current “Open Space – Private” zoning and business park CC&Rs.

An individual with knowledge of the situation, who spoke on the condition of anonymity, said, “They (Emergency Shelter Coalition) don’t want it if they can’t get out of the business park (regulations).”

The Rules

The location of the land, and potential escape from RSCB rules and regulations, would give a homeless shelter operator the ability to avoid current State mandate Senate Bill 2 (SB2) restrictions. In 2014 the City enacted an “Emergency Shelter Overlay zone, and development standards” to comply with California SB2. This legislative action required local governments to create a plan and set of rules for homeless shelter access within a given city. Currently, San Clemente’s population size allows for a maximum of two homeless shelters with 35 beds each, (70 in total) to be operated “by right” within the designated SB2 zone.

San Clemente City Manager James Makshanoff confirmed that the two parcels are outside of the SB2 overlay.

“If they do it in that location, size and scope goes out the door because then the County theoretically gets to determine that. And if the County is willing to override our zoning then all bets are off as to what the scope is going to be. They’re not limited to our scope of 70 total beds in the business park,” stated Makshanoff.

The SB2 overlay would still apply to the Rancho San Clemente Business Park, allowing a different shelter operator to potentially run the two original shelters allowed by the municipal code. A shelter on the Avenida Pico parcels would not count as one of the shelters, it would be an additional location. According to the Rancho San Clemente Association Board, the Purchase and Sale Agreement documents include binding language that the Emergency Shelter Coalition “has agreed that it shall never develop, operate, or support a shelter within the main part of the business park.” This clause only applies to the current buyer, the Emergency Shelter Coalition.

The Vote

Ballots are currently being distributed by mail from the Association, with a 30-day voting period expiring on October 30, 2019. A two-thirds approval vote is required for the parcels to be terminated from the business park, allowing a homeless shelter location to then be active. Several RSC property owners we spoke with stated that their receipt of the ballot was the first time they heard about the sale of the parcels.

“Termination of the Parcels from the CC&R’s is a condition of the closing,” stated the Association Board in a letter sent to local owners.

Escrow cannot be canceled at this point outside of cancellation from the termination vote failing to pass. If after 30-days there is still no two-thirds majority vote, an extension will occur that allows ballots to be resent to owners who have not yet responded at that time. By law, ballots cannot be opened for tallying before the 30-day window has closed.

The Escrow & Other Buyers

Although already in escrow, Olen Properties and the City of San Clemente have both shared that they would purchase the parcels to avoid future transfers.

“Olen would buy the land from the business park Association and assume maintenance cost. This would put $20,000 into the Association and relieve the Association of the maintenance cost of $20,000 a year,” said Dale Lyon, Senior Vice President at Olen Properties.

The properties are currently in escrow for a sales price of $19,500.00. The 2017 assessed value for the land was $12,000.00.

“I’ll buy it and maintain it. I’ll put into the escrow documents that I won’t do a shelter on it and do it for conservation purposes,” Makshanoff said, on behalf of the City of San Clemente.

It has not been disclosed who is representing either party in the escrow transaction and no available listing signs were observed around the parcels.

A voicemail left for Ed Connor was not returned by the time of publishing. Connor represented the Emergency Shelter Coalition during the 2014 lawsuit with the City and has publicly spoken on their behalf at San Clemente City Council meetings.

Updates to follow.

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