Action 4.
Flood Control District Meeting
Board of Supervisors
- Meeting Date:
- 11/05/2013
- Title:
- Agreement to Purchase 480 acre Three Canyons/Palominas Property
- Submitted By:
- Britt Hanson, County Attorney
- Department:
- Community Development
- Division:
- Floodplain
Presentation:
No A/V Presentation
Recommendation:
Approve
Document Signatures:
BOS Signature Required
# of ORIGINALS
Submitted for Signature:
Submitted for Signature:
0
NAME
of PRESENTER:
of PRESENTER:
Mike Ortega/Britt Hanson
TITLE
of PRESENTER:
of PRESENTER:
County Administrator/Chief Civil Deputy County Attorney
Mandated Function?:
Federal or State Mandate
Source of Mandate
or Basis for Support?:
or Basis for Support?:
Docket Number (If applicable):
Information
Agenda Item Text:
Approve the purchase agreement for the 480 acre Three Canyons/Palominas Property.
Background:
At the direction of the Board, the County Administrator, with the assistance of Jim Martin, negotiated the purchase of a 480 acre parcel in the Palominas area for $2.7 million from Preserve Petrified, LLC. Ft. Huachuca is providing $2.6 million of the purchase price, with the County Flood Control District providing the remainder.
The mineral rights on this parcel were severed by Tenneco West Co. in 1988 with a conveyance to Tenneco Oil Co. The purchase agreement calls for the seller to clear the title exceptions created by the mineral rights severance, which would probably mean acquiring those mineral rights. However, this may not be possible. The County Attorney could trace ownership of the mineral rights to successors of Tenneco Oil only until 1996, when that successor dissolved. (Another entity that was considering purchasing this parcel reached a similar impasse). At this point it is not known who, if anyone, owns the mineral rights. To minimize this mineral rights exception, the County has retained geologist John Burton to make a determination of the value of the mineral rights. His determination should be forthcoming shortly.
There are two other significant title exceptions, both of which involve easements granted for the benefit of the owners of the southwest quarter section that is adjacent to (and formerly part of the 640 acre section) the 480 acre parcel that the County is acquiring. That quarter section has been platted as a 42 acre parcel subdivision known as Rancho Arizona. One easement is for an access road across the midsection of the "County's" parcel to Palominas Road from the quarter section. In addition, three drainage easements were granted for the benefit of the subdivision. All three drainage easements are in the southeast quarter section of the "County's" parcel. These easements are reflected on a map, prepared by Right-of-Way Agent Terry Couchenour, attached to the agenda item. Even if Rancho Arizona is developed, none of these easements will impact the water conservation values of the parcel, which is the primary purpose of the acquisition. The access road easement may negatively impact other conservation values. All of the easements will need to be taken into account when the County sells portions of the parcel, which it is entitled to do, up to 12 times for up to 12 single family dwellings.
Another item, which is not listed as an exception on the title report, but which appears to be in the chain of title, is a deed restriction placed on the parcel in 1996 by AZSWISS, which then held title, forbidding trailer, mobile and manufactured homes, with the restriction to be enforced by Three Canyons Home Owners Association. This restriction should not impact any of the conservation or resale values.
The closing is scheduled for November 22, 2013.
This agenda item will be considered in conjunction with agenda items for approving the Memorandum of Agreement with Ft. Huachuca and USPP and the conservation easement.
The mineral rights on this parcel were severed by Tenneco West Co. in 1988 with a conveyance to Tenneco Oil Co. The purchase agreement calls for the seller to clear the title exceptions created by the mineral rights severance, which would probably mean acquiring those mineral rights. However, this may not be possible. The County Attorney could trace ownership of the mineral rights to successors of Tenneco Oil only until 1996, when that successor dissolved. (Another entity that was considering purchasing this parcel reached a similar impasse). At this point it is not known who, if anyone, owns the mineral rights. To minimize this mineral rights exception, the County has retained geologist John Burton to make a determination of the value of the mineral rights. His determination should be forthcoming shortly.
There are two other significant title exceptions, both of which involve easements granted for the benefit of the owners of the southwest quarter section that is adjacent to (and formerly part of the 640 acre section) the 480 acre parcel that the County is acquiring. That quarter section has been platted as a 42 acre parcel subdivision known as Rancho Arizona. One easement is for an access road across the midsection of the "County's" parcel to Palominas Road from the quarter section. In addition, three drainage easements were granted for the benefit of the subdivision. All three drainage easements are in the southeast quarter section of the "County's" parcel. These easements are reflected on a map, prepared by Right-of-Way Agent Terry Couchenour, attached to the agenda item. Even if Rancho Arizona is developed, none of these easements will impact the water conservation values of the parcel, which is the primary purpose of the acquisition. The access road easement may negatively impact other conservation values. All of the easements will need to be taken into account when the County sells portions of the parcel, which it is entitled to do, up to 12 times for up to 12 single family dwellings.
Another item, which is not listed as an exception on the title report, but which appears to be in the chain of title, is a deed restriction placed on the parcel in 1996 by AZSWISS, which then held title, forbidding trailer, mobile and manufactured homes, with the restriction to be enforced by Three Canyons Home Owners Association. This restriction should not impact any of the conservation or resale values.
The closing is scheduled for November 22, 2013.
This agenda item will be considered in conjunction with agenda items for approving the Memorandum of Agreement with Ft. Huachuca and USPP and the conservation easement.
Department's Next Steps (if approved):
Prepare for closing on November 20, 2013
Impact of NOT Approving/Alternatives:
The County will have defaulted on the purchase agreement and Ft. Huachuca and the County will not have the benefit of substantial water conservation through the purchase of this parcel.
To BOS Staff: Document Disposition/Follow-Up:
N/A
Fiscal Impact
- Fiscal Year:
- 13-14
- One-time Fixed Costs? ($$$):
- 100,000
- Ongoing Costs? ($$$):
- 0
- County Match Required? ($$$):
- 0
- A-87 Overhead Amt? (Co. Cost Allocation $$$):
- 0
- Source of Funding?:
- same
Fiscal Impact & Funding Sources (if known):
n/a