The historic Pacific View site in Encinitas, CA, just yards from the beach, was slated to be sold to the highest bidder by the Encinitas Union School District on March 25, 2014. Two business days before the auction and after 724 SavePacificView emails were sent to the Encinitas Union School District superintendent, its board of trustees and members of the Encinitas City Council, the district agreed to sell the precious property to the city for public use– a fairy tale outcome!
The details of the transfer are currently being ironed out by the city and the district, so it’s not completely in the bag yet, but the participants are upbeat about getting the deal finished within a few weeks.
In 1883, Mr. J. Pitcher deeded the first parcel of what would become the 2.8 acre Pacific View property to the Encinitas School District. This prime coastal blufftop property has been in the public’s hands ever since, but that status was threatened by the school district’s plan to auction it off to the highest bidder, probably a developer.
Encinitas’ original schoolhouse (above) was built and operated there until 1927 (it was relocated back to the parcel in 1983). Pacific View Elementary School was constructed in 1953 and closed half a century later due to declining enrollment and aging facilities.
Since the 2003 closure, a few proposals for the property’s use have been made, several of which were centered around maintaining public access to the area. Most recently, a plan to create a community arts center failed.
In 2013, the Encinitas Union School District’s board of trustees rejected the city of Encinitas’ $4.3 million offer to purchase the land for public use, calling the amount “ridiculously low.”
The parcel is now zoned for Public/Semi-Public use, but the Encinitas Union School District has attempted to get the zoning changed to Mixed-Use or Residential, which they believe would make the land up to three times more valuable.
Over the years, all attempts by the district and the Encinitas City Council to reach an agreement on the property’s use, zoning and ownership have failed– in fact, an openly tense relationship currently exists between the two entities.
Now the Encinitas Union School District has announced plans to auction off the property to the highest bidder within the next few weeks. On February 12, 2014, the Encinitas City Council voted not to submit a bid at or above the district’s $9.5 million minimum requirement. Both sides are at an impasse, and in the meantime the district is forging ahead with its auction plans.
We at SavePacificView.org believe, like many north coastal residents, that this irreplaceable treasure should remain in the public trust. Time is running out to stop the auction and reach a compromise. We encourage residents to send a Save Pacific View email from this website— copies of which will automatically be forwarded to Encinitas Union School District Superintendent Tim Baird, the EUSD Board of Trustees, and all Encinitas City Council members.
Addressing the Encinitas City Council, resident Sarah Garfield got to the heart of the matter, referring to the intentions and hopes of the farsighted people who gifted the Pacific View site.
“[They] didn’t give us cash, or land on Quail Gardens Drive. They gave us land on a hill overlooking the Pacific Ocean in Old Encinitas– walking distance to the Public Library, City Hall, the transit center, and numerous parks.”
“And whether you want it to be an early childhood development center, an elementary school, a technology or science teaching hub, a park, or rent it out for a myriad of uses– the gift is the site itself, not a cash account.”
“This is not private property. It belongs to all of us. And at this moment we, as citizens and elected officials, need to see the significance of this.”
Longtime Encinitan Darius Degher wrote this to the city’s decision-makers in his Save Pacific View email on February 14, 2014:
“I am a longtime resident of Encinitas, and I think it is sad and absurd that the the school district is sufficiently shortsighted that it is willing to trade such a precious resource for an improved school district budget. Can you not see the irony in taking away something truly important to the children of Encinitas (that coastal property) in exchange for something else also important (a healthy district budget)? The question is: which is more important: permanently saving a precious resource, or temporarily balancing a budget? It seems to me the answer is obvious.”
“Also, that land was bequeathed to the children of Encinitas. It is not the school district’s right to sell it. Doing so would be ethically dubious.”
“C’mon, school board! You are on the wrong side of things here. Budgets go up and budgets go down. They’re short-term things. That is not the case with preserving some of the last remaining commercially undeveloped coastal land in Southern California.”
“Let’s keep that land public and build something beautiful on it for the children of Encinitas. That was the original intent of its legacy.”
March 11, 2014: Superintendent wants to ‘monetize this asset’
March 11, 2014: Save Pacific View emails prepared for board meeting
March 11, 2014: 10 News report on crowd at final pre-auction board meeting
March 12, 2014: Encinitas City Council offers hope for saving Pacific View
March 13, 2014: Encinitas City Council asks School District for Final Contact
March 17, 2014: School District responds to Encinitas City Council
Pacific View sale terms approved at intense council meeting
Following a rambunctious discussion, the Encinitas City Council on Wednesday, April 16, approved a Memorandum of Understanding (MOU, see below) containing the city and school district’s jointly negotiated conditions of the Pacific View property sale by a 3-to-2 vote. The final tally was the same as the March 19 vote that originally authorized the purchase, with Kristin Gaspar and Mark Muir voting no.
Some thought that the special afternoon meeting to vote on the MOU would be a mere formality, but it turned into into a passionate debate on the purchase itself.
Three of the four members of the public who addressed the council expressed concerns about issues such as the $10 million purchase price, how it will be financed, whether the Encinitas Union School District should be asked to carry an interest-free loan, and whether the city was “bamboozled” into making its offer by the threat of an imminent auction.
What followed was a lengthy, vigorous discussion between councilmembers about the history and general merits of the acquisition, in addition to details of the MOU. Kranz reiterated his reasoning for backing the purchase, saying that “letting the auction play out was tempting but risky,” and to “roll the dice” on such a treasured property would have been a poor choice. He argued that the sale circumvented inevitable future litigation and that years from now, residents will be enjoying the property without recalling the price the city paid. Shaffer added that the purchase “was the only viable option we had.”
Gaspar and Muir didn’t go down without a fight, expressing their displeasure and asking several skeptical questions. The result was a tangled flurry of motions and revised motions that took City Attorney Glenn Sabine minutes to unwind. At one point, councilmembers were confused about what motion they were supposed to be voting on. Deputy Mayor Muir failed with a motion to delay the vote pending additional discussion. Twice, Mayor Barth admonished Muir about civility and public meeting protocol.
After Wednesday’s vote of approval, both the city and the school district will work to enter into a formal Purchase Agreement by May 31. The school district has indicated that it wants to officially cancel the still-pending auction at its April 29th meeting.
Video of April 16th’s special meeting can be found here.
SavePacificView.org will continue covering events relating to Encinitas’ acquisition of the heritage site.
Here is the Memorandum of Understanding that was approved Wednesday afternoon:
MEMORANDUM OF UNDERSTANDING REGARDING INTENT TO ENTER INTO PURCHASE AGREEMENT
City of Encinitas (“Buyer”) and the Encinitas Union School District (“Seller”) desire to enter into this Memorandum of Understanding Regarding their Intent to enter into a Purchase Agreement (“MOU”) for the purchase of the former Pacific View School Site. The purpose of this MOU is to set forth the current intent of the parties with respect to the general terms and conditions to be included in the final Purchase and Sale Agreement to be entered into between Buyer and Seller (“Purchase Agreement”).
RECITALS
WHEREAS, the Buyer and Seller have entered into negotiations regarding the Buyer’s proposed purchase of the former Pacific View School Site, consisting of approximately 2.8 acres located at 608 Third Street, Encinitas, California APN 258-115-122 (“Property”) from the Seller; and
WHEREAS, the Buyer and Seller desire to enter into this MOU in order to memorialize the current status of such negotiations as well as the good faith deposit and other actions to be taken in advance of the parties development and execution of a final Purchase Agreement;
TERMS
1. Terms
The parties have mutually agreed upon the following terms and conditions relative to their negotiations and the basic terms to be included in the final Purchase Agreement for the Property:
a. The purchase price for the Property, in its as-is condition, shall be Ten Million Dollars ($10,000,000) due at the close of escrow.
b. The Buyer will agree not to sell the Property for ten (10) years from the date of the close of escrow, except as set forth herein. If the Buyer decides to sell the property before this ten (10) year period elapses, Buyer must first offer the Property back to the Seller for re- purchase for the original $10 Million purchase price (plus the reasonable value of any improvements made to the Property by Buyer). After this ten (10) year period, the Buyer may dispose of the Property in any manner it chooses.
c. The Old Schoolhouse will remain on the Property.
d. Upon approval and execution of this MOU, and in advance of the finalization of Purchase Agreement, Buyer will immediately make a non-refundable deposit (credited to the purchase price) payment to the Seller in the amount of Fifty thousand dollars ($50,000). This deposit shall not be refundable except as described below in paragraphs (e) and (f).
e. Upon approval and execution of this MOU, and in advance of the finalization of the Purchase Agreement, Seller will provide Buyer and its consultants access to the Property for the purpose of inspecting the Property and conducting environmental testing of the soils underlying the Property. In the event such testing reveals contaminants in the soil, then Seller shall either remedy such contamination or else refund the Buyer’s deposit described above. At the same time, Buyer shall also review the preliminary title report and ensure that the Property is unencumbered by any title exceptions affecting the Seller’s ability to transfer unencumbered fee title to the Buyer. In the event any such title exceptions are identified, then Seller shall either remove such exception or else refund the Buyer’s deposit described above.
f. The parties shall use reasonable efforts to enter into the Purchase Agreement on or before May 31, 2014. Seller shall not enter into or conduct any discussions with any other person or entity with respect to the sale or disposition of the Property prior to such date. During this time period, the Buyer shall use all reasonable efforts to obtain the municipal bond financing necessary to secure the funds for the purchase price prior to the Close of Escrow. If Buyer cannot secure such financing, then Buyer and Seller shall mutually agree to an alternative financing plan for the purchase price, or else Seller shall refund Buyer’s deposit described above.
g. It is expressly understood that the terms of this MOU do not constitute a binding obligation on the parties to enter into a Purchase Agreement for the Property. Neither party shall be finally bound to buy or sell the Property unless and until the Purchase Agreement is executed by the parties and delivered to each other. It is contemplated that the Agreement shall contain such other terms, covenants, conditions, warranties and representations as are customary or appropriate in transactions of this nature.
2. Laws: This MOU shall be governed by the laws of the State of California.
3. Interpretation: In interpreting this MOU, it shall be deemed that it was prepared jointly by the Parties with full access to legal counsel of their own. No ambiguity shall be resolved against any party on the premise that it or its attorneys were solely responsible for drafting this MOU or any provision thereof.
4. Severability: The unenforceability, invalidity or illegality of any provision(s) of this MOU shall not render the other provisions unenforceable, invalid, or illegal.
5. Integration: This MOU represents the entire understanding of the Parties as to those matters contained herein, and supersedes and cancels any prior oral or written understanding, promises or representations with respect to those matters covered hereunder. This MOU may not be modified or altered except in writing signed by both parties hereto. This is an integrated document.
6. Counterparts: This MOU may be executed in counterparts, each of which shall constitute an original and all of which shall constitute one agreement.
IN WITNESS THEREOF, the parties hereto have executed this Memorandum of Understanding on the date written above:
SELLER: ENCINITAS UNION SCHOOL DISTRICT
By: Date:
BUYER: CITY OF ENCINITAS
By: Date:
Muir’s Pacific View city hiring freeze fails
MAY 15– Deputy Mayor Mark Muir’s attempt to convince the Encinitas City Council to impose a hiring freeze until the funding method for the Pacific View property is determined failed at the council’s May 14 meeting. Muir and councilmember Kristin Gaspar voted for the motion, while Mayor Teresa Barth and councilmembers Tony Kranz and Lisa Shaffer voted no– the same split that resulted in the Pacific View purchase.
Gaspar argued that a hiring freeze would give the council “a breathing moment to take a look at the bigger picture.” Calling the proposal “redundant,” Shaffer countered that over the following three weeks, the council will be reviewing separate elements of the budget that comprise the big picture, and that an approval vote won’t take place until its June 11 meeting.
The general opinion of the council majority was that Muir and Gaspar’s actual motive is to torpedo the Pacific View purchase. “When you look at [Muir’s] agenda item and he leads with Pacific View, what it strikes me as is pure politics,” Kranz said. “The budget shows clearly that we have the money to not only fund all core services, but also to acquire Pacific View, plus have other capital improvement projects that we can undertake.”
Mayor Barth suggested that “this is just an effort to circumvent the majority vote on Pacific View.” Shaffer was more blunt in her weekly newsletter: “Seriously, Mr. Muir?”
Financing options for the Pacific View purchase will be discussed by the council at its 6:00 p.m. Wednesday, May 21, meeting at City Hall in the Encinitas City Council Chambers, located at 505 South Vulcan Avenue in Encinitas.
Video of the discussion can be viewed here by selecting Item 12A, and the May 21 City Council agenda is here. The budget discussion that includes options for financing the Pacific View purchase will be Item 10C. The Budget Report that includes the various scenarios can be downloaded here: 2014-05-21_Item_10C_-__Budget_Report_with_Attachments. (Careful, it’s a 41MB, 106-page document!)
The Pacific View auction is canceled
APRIL 29– It took less than two minutes for the Encinitas Union School District Board to formally disarm the looming threat of the Pacific View property being auctioned off to developers. The unanimous vote came 2 1/2 hours into the board’s Tuesday, April 29 meeting.
“Based upon where we are in negotiations with the city, I would recommend that we cancel the auction for the sale of Pacific View and we move forward with our plan to sell the property to the City of Encinitas,” said Superintendent Timothy Baird, addressing the five trustees.
“We do have a signed Intent to Purchase agreement with the city in hand,” he continued. “We have a $50,000 deposit and we are moving forward with the testing of the site per the city’s request and we are confident that the site will pass all that assessment, and that we will be entering into a more formalized purchase agreement before the end of next month, as spelled out in the agreement.”
After the 5-to-0 “yes” vote, board president Marla Strich added her own denouement: “Another step in the path– gratefully.”
Indeed, the board’s action gives a clear victory to residents who fought to keep the Pacific View property public, but it opens a new chapter in which the use of the property and how it will be paid for are likely to be the topics of much community debate. Residents can join the discussion on this website at Share Your View.
Trustee Maureen “Mo” Muir, who was the sole board member opposed to the auction from the beginning, told SavePacific View after the meeting, “Although I wasn’t pleased with the methodology of the negotiating process, I’m very pleased that this asset will remain in the public domain for our kids and community for many generations.”
SavePacificView.org will stay on top of developments and send email updates when new Pacific View events occur. You’re also invited to stay up-to-date on Pacific View news by joining the SavePacificView.org email list here. Your name and email address will only be used by SavePacificView.org. The SavePacificView story as told by local media can be read here.