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not later? There are three significant benefits to evaluate. One, a community park to serve Santa Clara is obtained. Two, protection for the natural resource values of the Laurel Hill Valley site is ensured, and significant Ridgeline Trail connections are provided. And finally, as a part owner of the property we will have an unprecedented opportunity to determine how a property is developed. We can participate in a unique public/private partnership to ensure there are adequate parks, pedestrian and bike paths, and connected residential and commercial neighborhoods that follow the principles of smart growth and provide an exemplary prototype for supporting nodal development efforts. Another factor to be considered when weighing the pros and cons of pursuing an eminent domain process, will be the impact on ongoing land acquisition efforts. Parks and open space acquisition programs have encountered numerous property owners with deeply held stereotypes about government land acquisition programs being a win- lose scenario. Typically, private property owners believe they have nothing to win in entering into negotiations with a public agency. Considerable progress has been made over the past few years in deconstructing this myth and building a more trusting atmosphere between the City and the development community. Responses to Councilor Questions a) Have we gotten a recent appraisal on the 77 acres? I4&at is it valued at? Response: No, we typically do not get an appraisal on parcels that are being donated, unless the donor requested it as a condition of the donation. If an appraisal were to be completed for the donation, it would likely have been based upon the value of subdivision land within the UGB, because the donation was contingent upon the property being brought into the UGB. b) I trust the 77 acres "fair market value", if we got to eminent domain, would consider the fact that it's outside the UGB at present. Yes? (And a side question: Is it safe to say that the market value of the 40 acres would be 40/77 of the value of the 77 acres?) Response: If we were to initiate condemnation by the power of eminent domain, the fact that the site is outside of the UGB would be taken into consideration. However, it is important to remember that fair market value in a condemnation case is typically determined by a jury that may have little or no real estate appraisal experience. There would likely be expert witness testimony given from 2 or more appraisers and perhaps the owner. We would expect the owners to present a case that although the property is outside of the UGB, properties to the east, west, and south of the subject are inside the UGB and urban services are available to serve the subject property. In addition, the site is shown to be included in the UGB in two of three scenarios currently being studied in the Regional 2050 study, and was previously identified as Urban Reserve land. They would likely try to convince the jury that although it is not in the UGB at this time, it is just a matter of time, and that during that time the value will continue to appreciate as land values have done in the past. There is a substantial range in value between "exclusive farm use" land outside of the UGB valued as low as $10,000 per acre compared to residential subdivision tract land within the UGB now selling for over $100,000 per acre. Since the condemnation would be against the owner's wishes the jury may give them more of the benefit of the doubt. In regards to the acquisition of smaller site, it would be reasonable to assume that the market value would be established at a per-acre cost, and could be applied to an alternative 40-acre purchase. Site Selection The Irvington/McDougal site was selected as the preferred site for a community park by Parks Planning staff before the land swap proposal was received from the property owner. A number of criteria were used that made this site the preferred site, including size of property, relation to the Santa Clara service area, level of site improvements, site configuration, suitability for park development, presence of flood hazard areas, access, and relationships to the UGB. This selection process was done with a minimum 40-acre park as a basis. The 77-acre number was the counter offer from the property owners, as the result of a desire to balance the 120 acres coming into the UGB for residential development in Santa Clara with the 120 acres coming out of the UGB in Laurel Hill. L:\CMO\2004 Council Agendas\M040712\S0407125.DOC