Brawley land acceptance

SUAM Appendix G

SAMPLE

Property Acquisition Summary Due Diligence Report

(Referenced in SUAM section 9019)

Brawley Land Acceptance

August 2003
Pursuant to SUAM 9019, Real Property Acquisition, San Diego State University has performed the due diligence responsibilities required by California State University prior to proceeding with land acquisition. The Luckey Ranch, LLC proposed approximately 200 acres of property in Brawley, Ca. be donated to the University for the purposes of creating an Off-Campus Center at this location. Due diligence is required by CSU for the purpose of exploring underlying property issues which have the potential of resulting in, for example, costly environmental concerns, land use or other restrictions on the property or title issues which may impact the intended use or value of the property. The results of the due diligence process conducted for the Brawley parcel did not reveal any reasons that would cause the University to reject the proposed donation of land. Therefore, after careful review and evaluation of the items pertaining to the proposed acquisition of the 200-acre parcel, SDSU Facilities Planning and Management made the recommendation that the University proceed with acquisition of the proposed land donation.
The following provides a summary of the results of the due diligence process conducted for the Brawley parcel.

Environmental Assessment

A Phase I Environmental Assessment was completed in April 2002 by Ninyo & Moore Geotechnical and Environmental Science Consultants. While the assessment provided a list of existing minor structures, abandoned chemical waste containers and other minor debris to be aware of, no underground storage tanks or other costly remediation items were discovered (i.e., briefly discuss Phase I results and whether more needs to be done, or that no further investigation is warranted).
A Phase II Environmental Assessment was completed in August 2002, by MAZ Environmental. This report evaluated subsurface features such as the effects of historical pesticide usage on the land and sought to further evaluate and provide recommendations for other chemical storage cleanup. The Phase II report agreed with the findings asserted in the Phase I report and did not uncover any items of undue concern.

Title Assessment

A Preliminary Title Report, (order no., date) prepared by Chicago Title, El Centro, revealed numerous discrepancies in boundary and easement definitions to the property making it difficult to provide a Title with reputable confidence. SDSU then contracted with Design, Development and Engineering of El Centro to secure an ALTA Survey for the property. Eastern boundary easement definition was resolved between SDSU and the Imperial County Irrigation District and the County of Imperial. The ALTA Survey clarified the boundaries and easements, and an ALTA Title Policy was secured as part of the land acquisition process. None of the exceptions to title listed in the subject preliminary title report would prevent or encumber the intended acquisition so as to make the property unsuitable for the proposed uses by the University, nor would any of the listed exceptions prevent the intended development or cause the removal of any proposed structures, or prevent the necessary maintenance of any of them for the life of the structures or the duration of any proposed bonds used for funding. The exceptions to title are listed as follows, along with a brief explanation of why they do not affect the intended use of the property for the University’s purposes:

• 
  (List exceptions with explanations)
  
• 
  
  

In addition to the listed exceptions the ALTA Survey (or the site visit by a knowledgeable/qualified person, in the case of a small, simple acquisition) revealed the following unrecorded matters, followed by a brief discussion for each to show why they do not affect the intended use of the property for the University’s purposes:

• 
  
  
• 
  
  

Condition /Improvement Assessment

The site is currently developed as agricultural land consisting of fields planted with bermuda grass. Unpaved agricultural access roads, paralleling on-site irrigation canals or drainage ditches, trend east to west through the central portion of the site and north to south through the eastern portion of the site. (Add analysis of existing utilities, roads, or other infrastructure that may be needed to use the property for the intended purpose.) No conditions have been discovered which would create cause for concern (this conclusion is the ultimate goal of the assessment). The southwestern portion of the property is developed with a mobile home, a barn, a partially covered shed area and a municipal waste and debris pile. (Cite consultant name and report date, and add analysis, as appropriate, for seismic, geotechnical, SFM, ADA, and flood issues for structures and/or land natural hazards. If a building is being acquired and used for university purposes, due diligence shall include a signed and stamped report from a structural engineer licensed in the State of California that addresses, at a minimum, the issues listed in Section 8.2 of the CSU Seismic Policy.)
Land Appraisal

A land appraisal of the 200-net acre Brawley site was performed by Erickson & Associates in January 2003. As campus development concepts were considered in terms of initially phasing campus development in two stages, the results of the appraisal have been reported in these terms. The subject Brawley parcels have been appraised at the following values for a total land area of approx. 200 acres:

5.49 acre net parcel (6.17 acres gross) @ $25,000 per acre = $155,00-Non-State (Aux.) Owned

194.51acre net parcel (208.30 acres gross) @ $18,000 per acre = $3,750,000-State Owned

200.00 acre net parcel total = $3,905,000 Total Value
Environmental Report/CEQA Documentation

A Notice of Preparation of Draft Environmental Impact Report (EIR) and Initial Study for SDSU Imperial Valley Campus (including studies for both the Calexico and Brawley sites and FTES enrollment ceiling revisions and implementation, respectively for these sites), developed by Mooney & Associates, was released for public information and comment in May 2002. On April 10, 2003, the Draft EIR document, also developed by Mooney & Associates, was released for public review and comment. The public review period closed on May 25, 2003 without substantial comment. The comments were addressed in the final EIR distributed July 23, 2003. In consultation with CPDC, it is proposed the Final EIR will be presented to the CSU Board of Trustees, Campus Planning, Buildings and Grounds Committee, for certification on September 16, 2003.

Enrollment Needs Study

The CSU Chancellor’s Office, Division of Academic Affairs, Office of Analytic Studies undertook an Enrollment Needs Study for Imperial County dated July 2001. The study evaluated current and historical population growth patterns in the Imperial Valley and arrived at the following conclusions (Enrollment Needs Study, p. 2):

1. 
   There is potential for a relatively large amount of CSU enrollment growth at SDSU IVC. Two-thirds (7 plus 59 percent) of this growth can be attributed to operation of the Brawley site which would open in 2002 with 100-200 students.
   
2. 
   Because of constraints on physical expansion of the IVC Calexico site, by 2009 IVC Brawley could account for approximately half of total enrollments.
   
3. 
   Given the substantial population growth projected for Imperial County beyond 2009, acquisition of the Brawley site would provide a means of serving larger enrollments into the first half of this century.
   

CSU Approvals

• 
  The CSU Chancellor and the Board of Trustees, through the Ad-Hoc Committee, approved a conceptual Land Use Plan for the Brawley site and authorized the acceptance of the gift of real property by resolution in September 2001.
  

• 
  The University has sought CSU Chancellor’s Office review and consultation regarding the development of Off-Campus Centers and has maintained CPDC coordination for campus land acquisition and throughout the due diligence process.
  

• 
  The proposed IVC Brawley Off-Campus Center concept has been included as an agenda item for the September 2003 CSU Board of Trustees meeting. Discussion pertaining to this item may include; discussion of and certification of the Final Environmental Impact Report for the Imperial Valley Master Plan Project which raises the enrollment ceiling at IVC Calexico to 850 FTES and establishes an enrollment ceiling at IVC Brawley for 850 FTES, acceptance of a revised Master Plan for the IVC Calexico site and establishment of a Master Plan for the IVC Brawley site, acceptance of the donated land in Brawley in two parcels (a 5-acre Non-State parcel and a 195-acre State-Owned parcel) and the development of an approximately 10,000 GSF Non-State, leased, Initial Facility containing classrooms and offices on the 5-acre Non-State parcel at the Brawley site.