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SARATOGA CITY COUNCIL
MEETING DATE: September 7, 2011 AGENDA ITEM:
DEPARTMENT: Community Development CITY MANAGER: Dave Anderson
PREPARED BY: Cynthia McCormick, AICP DIRECTOR: Chris Riordan, AICP
SUBJECT: 22480 and 22490 Mt. Eden Road (APN 503-09-003 and 503-80-004):
RECOMMENDED ACTION:
Ratify the April 20, 2011 approval of the Integrated Annexation Package (including all revised
implementing documents) related to the properties at 22480 and 22490 Mt. Eden Road (APNs
503-09-003 and 503-80-004) by adopting the attached Resolution and authorizing execution and
recordation of the associated revised Integrated Annexation Package documents.
REPORT SUMMARY:
Project History: On April 20, 2011 the City Council approved an Integrated Annexation
Package consisting of 1) Final Annexation Approval for 2.68 acre parcel (including
Preannexation Agreement); 2) Parcel Merger; 3) Williamson Act Contract; 4) Agricultural
Preserve-Open Space Overlay Zoning Amendment; 5) General Plan Amendment; 6) Conditional
Use Permit and Variation from Standards; and 7) Design Review Approval. On May 24, 2011,
the City executed the documents and on May 26, 2011, the City recorded the documents with the
Santa Clara County Recorder’s Office. On June 20, 2011 the City Council took final action on
the General Plan Amendment which was approved in concept on April 20, 2011. The Local
Agency Formation Commission (LAFCO) issued a certificate of completion for the annexation
on June 27, 2011. Because of the untimely filing of certain deeds by the Applicant property
owner (South Thunder, LLC – “STLLC”), it is necessary and prudent for the City Council to
ratify its prior approval of the Integrated Annexation Package and approve execution and
recordation of revised implementing documents.
Overview: On August 11, 2011, the Applicant’s attorney met with the Assistant City Attorney
regarding the following: A reallocation of the joint ownership of certain properties owned by
Applicant STLLC to Grace PB LLC (GPBLLC) resulted in the recordation of deeds on May, 18,
2011, which had been signed on April 28, 2011. This recordation of property transfers occurred
eight (8) days prior to recordation of the documents implementing the Integrated Annexation
Package by the City which compromised the effectiveness of the documents required by the
City. The two (2) owner/members of STLLC and the sole owner/member of GPBLLC have
negotiated and executed a Rescission Agreement which rescinds the title transfers from STLLC
to GPBLLC effective as of the date the original transfers were executed, April 28, 2011. This is
a rescission “nunc pro tunc” (“now for then”) rendering the rescission effective and the Deeds
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void as of the date signed (4-28-11). Grace PB LLC has executed, and on August 23, 2011
recorded, Rescission Deeds by which it has remised, released and quitclaimed all its interest in
both the Principal Property (Document No. 21287993) and the Annexation Property (Document
No. 21287994) back to STLLC, thus restoring title to both properties in STLLC effective as of
April 28, 2011.
The intent of the Rescission Agreement and Rescission Deeds is to cancel the transfers as though
never made, although not extinguishing any liabilities incurred during the period that the deeds
were in effect. (See attached legal opinions from the Counsel for the State Board of Equalization
addressing similar actions cancelling property transfers effective as of the date of the original
transfer). The Rescission Deeds should validate the effectiveness of the prior recordation of
implementing documents. As an additional basis for assuring the effectiveness of the
implementing documents, STLLC is providing revised re-executed versions thereof and the City
will record same based on the Ratification Resolution attached.
FISCAL IMPACTS:
There are no new fiscal impacts from the recommended ratification process. The fiscal impact
of the original approval was described in the April 20, 2011 Staff Report as follows: The City
will receive approximately 2.5% of the property tax assessment for the subject property after
annexation to the City of Saratoga.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION:
The effectiveness of the previously recorded implementing documents for the Integrated
Annexation Package will be compromised.
ALTERNATIVE ACTION:
Decline to adopt Ratification Resolution.
FOLLOW UP ACTION:
Record revised and updated implementing documents.
ADVERTISING, NOTICING AND PUBLIC CONTACT:
Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda
item and was included in the packet made available on the City’s website in advance of the
meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each
Monday in advance of the Council meeting.
ATTACHMENTS:
1) Ratification Resolution
2) Rescission Deeds
3) Notice and Deed of Merger with Attachments A, B, and C (Revised)
4) Pre-Annexation Agreement with Attachments A and B (Revised)
5) Land Conservation (Williamson Act) Contract Attachments A2, B, C, and A1 (Revised)
6) Legal Opinions from Counsel for the State Board of Equalization
7) City Council Staff Report, dated April 20, 2011