May 13, 2022

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EYE ON SJC

Local Group Sues City Over Skatepark Project

to voter-imposed restrictions on such development and the funds used to acquire the site,” the court filing said. “In particular, petitioner seeks to invalidate the approvals with respect to the project on the grounds that city has violated CEQA (California Environmental Quality Act) and/or other applicable laws and further seeks to invalidate city’s illegal authorization of Kinoshita Farm’s development,” the court filing said. Nash, who served as mayor in 1995, wrote an editorial published in The Capistrano Dispatch in March 2020 expressing opposition to development of the property. The residents of San Juan Capistrano own

the farm, because residents voted in 1990 to give the city $21 million of their property taxes over 20 years to buy the Kinoshita Farm—and, thus, the city is “supposed to be caretaker of the Farm and preserve it permanently for all of us and for future generations,” Nash wrote at the time. “We bought the farm. We bought this property to forever save the farmland, to preserve open space for us in 1990, and now, for you, and for future San Juan residents,” Nash said in the editorial. “We bought the farm to preserve it, not to save it for development 30 years later!” No hearing has currently been set for the lawsuit.

Current San Juan Capistrano Mayor Derek Reeve briefly addressed the skatepark project during the May 3 meeting after a resident brought it up, saying the city is committed to moving forward with the park’s construction. “We’re going to keep discussing this on our end and taking the most prudent route that ensures that we get a skatepark,” Reeve said. City leaders and residents have said the skatepark will be a valuable addition for the community, providing local kids an area where they can safely have fun. The City Council approved rezoning measures during an April 5 meeting that was essentially the last regulatory step in moving plans forward for the skatepark. “The proposed project would include a 20,000-square-foot, all-wheel skatepark area with skate elements designed primarily for beginning-to-intermediate skill levels, along with a playground structure, restroom building, seating, landscaping, drinking fountain, fencing, trash receptacles and pedestrian access to Camino Del Avion and the City’s adjacent Sports Park fields,” an agenda report from the April 5 meeting said. The agenda report also said San Juan Capistrano community members have wanted a skatepark for “over a decade.” During a presentation on the city’s capital projects at the May 3 meeting, Public Works Director Tom Toman said the skatepark project is in the “final, final stages” and expected to go out to bid soon for construction. City officials previously estimated the project could be finished by this winter.

ditures are estimated at $34 million. Police services make up most of the General Fund operating budget, which also funds the public works department and government services. Specifically, for the proposed upcoming budget, staff recommends allocating $1.5 million from salestax revenue to fund the upcoming new City Hall, which will be built at the current City Hall site and also include affordable housing for at-risk individuals on the property. The city’s favorable fiscal state was attributed to several factors, including the City Council cutting down annual expenditures in June 2020 and increased tax revenue in recent times. Property taxes make up most of the city’s revenue sources, which also come from sales taxes and restaurants. The numerous car dealerships in San Juan were also said to be a big factor in the local economy. “The property-tax revenues fund 39% of the General Fund budget, and sales taxes fund 32%,” City Finance Director Ken Al-Imam said. “There’s been a moderate increase in property-tax revenue to the General Fund in the city over the past eight years.”

Sales-tax revenue has “jumped effectively by $2 million” over time—an upward trend that is expected to continue, Al-Imam said. Mayor Pro Tem Howard Hart asked how the economic leap was possible, given it happened during the COVID-19 pandemic. “There is a little bit of a lag between commerce and sales tax receding. It’s about three months,” Al-Imam said.“The most significant financial impacts of COVID on our local businesses, including the car dealerships, impacted our local economic community in Fiscal Year 2020.” “We were very fortunate. Our sales tax consultants were amazed at how quickly our car dealerships rebounded from the COVID-19 impacts,” Al-Imam continued.“I think we just have a great portfolio of car dealerships in the city that provide a great product for the entire South County area.” Online business sales also contributed to economic growth, Al-Imam said. “The proposed budget for the coming fiscal year is appropriately conservative, and recognizes that there are several economic and market risks that are far beyond the city’s control,” Siegel said. “To hedge against those risks, we

are proposing to continue to grow the city’s reserves—which are already very healthy, but as we know, with increasing interest rates and other uncertainty, we think it’s prudent to continue to increase the city’s General Fund reserves.” As part of the general discussion on funding and city projects, staff also discussed upcoming plans to improve streets in San Juan—including major roadways used by drivers, such as Camino Capistrano from Dana Point to Laguna Niguel, as well as residential streets. Estimated costs for overall street work, which will span the coming years, is more than $43 million. The city is looking at improving streets such as Camino Del Avion, San Juan Creek Road and Camino Las Ramblas in future fiscal cycles. Street conditions are said to have deteriorated over time because of neglected maintenance, due to unavailable funds. Recent federal funding provided due to the pandemic is going toward the improvements. Improvements will first be made on Camino Capistrano during the upcoming year.

BY COLLIN BREAUX

Plans for San Juan Capistrano’s first skatepark have been mostly well-received in the community, but not everyone supports the project. Preserve Our Farm SJC, a nonprofit, recently filed a lawsuit against the City of San Juan Capistrano in opposition to the project. The lawsuit—which was filed in Orange County Superior Court in late April—alleges the city did not conduct a proper environmental review in regard to the skatepark, which the city plans to build near The Ecology Center. Former SJC Mayor Carolyn Nash is listed as an officer and member of Preserve Our Farm SJC. Nash had not responded to requests for comment about the lawsuit, as of press time. Other members of the nonprofit are not named in the filing. The San Juan Capistrano City Council discussed the matter in an executive session closed to the public during a meeting on May 3, but no action was reported afterward. “Undoubtedly, the lawsuit will add cost and delay the project,” City Manager Ben Siegel said in an email in response to questions about the lawsuit before the meeting. Preserve Our Farm SJC opposes the project and challenges actions taken by the city for it “and further challenges city’s illegal authorization of the development of Kinoshita Farm contrary

City Outlines Optimistic Financial Forecast for Upcoming Fiscal Year BY COLLIN BREAUX

Two years after the initial onset of the COVID-19 pandemic led to concerns about the economic vitality of San Juan Capistrano and the world, the South Orange County city looks to be in good fiscal shape. City staff presented a draft city budget to the City Council during a meeting on May 3 that essentially signaled the city is financially strong. In particular, the city is expected to have a $3.6 million surplus for Fiscal Year 2022-23. The council is expected to approve a final budget for the upcoming fiscal year in June. City Manager Ben Siegel said operating revenues “significantly” outpace expenditures, and the city has a “sustainable framework” for the near- and mid-term planning horizon. The projected revenue for FY 2022-23 is $37 million, while expenThe Capistrano Dispatch May 13-26, 2022

Dozens of skateboarders throughout South Orange County participate in the Spring 2019 Skate Jam at the San Juan Capistrano Community Center. A lawsuit filed by Preserve Our Farm SJC is attempting to stop San Juan Capistrano’s first skatepark from being built. Photo: Shawn Raymundo

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