Sale Questions
By Dale Trow
Following are frequently asked questions about the property sale.
Wasn’t three years an extraordinary length of time for Legacy to have been in escrow?
In the context of the property size, location, proposed use and government requirements, an escrow of three years isn’t unusual.
What do you mean by government requirements? The campus is private property.
Yes, the Worldwide Church of God owns the campus. However, even private properties fall under the guidelines of the California Environment Quality Act (CEQA). Developing a property of this size requires certain discretionary city approvals and can affect environmental conditions. That labels the campus development under CEQA as a "project" so at least some environmental review is required.
What is the required environmental review?
Projects must complete an Environmental Impact Report (EIR) that addresses project impacts on such things as air quality, cultural resources, population, employment and housing, schools, municipal services and traffic. A project may have to submit feasible alternatives or mitigation measures if certain impacts cannot be substantially lessened.
Will the church have to complete a new EIR now that Legacy has withdrawn?
Yes, the church will submit a new EIR, but it won’t have to start from scratch. Studies from the original EIR may still be valid and can be used again. Some studies may be modified to more specifically reflect the current project. Legacy’s EIR covered some potential plans that we know now won’t occur, for example, the commercial office component. It will be to our advantage to focus on the actual issues that relate to the current project.
Could the church sell the property as is and avoid the EIR?
The church could sell the property immediately, but the buyer would still have to complete the EIR, unless the buyer was going to use the campus significantly in its current condition. However, the property has greater value under a development plan, and that requires an EIR. Our goal is to acquire entitlements and an approved development agreement with the City that will guarantee certain development rights for parcel buyers.
Why a development agreement?
Under a development agreement, each builder would be assured the right to build its portion of the project as long as design guidelines are followed that were approved under the development agreement.
A development agreement is useful because it brings continuity to the project. A master architect will work with the various builders to orchestrate a master planned residential community that blends the different product types into a visually appealing and livable development. The development agreement also addresses the complex issues of infrastructure for the property and manages the common green spaces, historical gardens and walkways.
Copyright © Worldwide Church of God, 2002