Yorba Linda is selling the property once proposed for Friends school

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A portion of the property once designated for a $53 million Friends Christian High School that was expected to enroll some 1,200 students from mostly North Orange County cities is being sold to a developer with plans for high-end residential development for the land.

The 23 homes proposed for a 12.64-acre site on the north side of Bastanchury Road between Casa Loma and Eureka avenues will be expensive, since the price the developer is paying for each lot is $921,000, a total close to $21.2 million, less some still-to-be-determined costs.

A sales agreement and joint escrow instructions with Pacific Cascade Group for the city-owned property was approved recently by the Yorba Linda City Council. A due diligence period ends Oct. 13, with escrow expected to close Nov. 12.

The city plans to apply the sale proceeds to an already-approved arts center to be built in conjunction with a new library on the east side of Lakeview Avenue near the Lemon Drive intersection that’s expected to open by summer 2020.

The city is selling the property in “finished lot” condition, meaning rough grading, streets and public infrastructure will be completed. Estimates of the to-be-determined “finished lot” costs range to $200,000 per lot, to be deducted from the purchase price.

“The sale of the property in a finished condition increases the potential sale value of the property by eliminating the risk of unknown costs incurred by the purchaser…,” said a report prepared by project manager Colleen Callahan.

A city-hired consultant “received tremendous interest from potential purchasers,” Callahan reported. Pacific Cascade Group was chosen partly because of the company building “the type and quality of upscale homes that the city is accustomed to in residential estate-zoned areas.”

Callahan also noted: “As in any real estate transaction, a final closing hinges on continued negotiations during the due diligence and escrow periods,” but the city and developer have agreed to “work cooperatively” to finalize the sale “to facilitate the ultimate development.”

The once-heralded Christian high school was a dream of many residents and several past city officials for a 10-year period beginning in 2003, when the city leased 32 acres on Bastanchury Road to the school on a 4-1 council vote.

The 32 acres included the 12.64 acres now being sold and another 19 acres to the north, which are restricted for use for “public purposes.”

During the 10 years of the lease, the sponsoring organizations, Yorba Linda Friends Church and Rose Drive Friends Church, raised and spent $14 million on the site, $3 million in lease payments and $9 million for entitlements and improvements.

But eventually, because of what church representatives at the time said were “onerous lease terms,” $39 million in bank loans could not be obtained to fund construction, and the city ended the lease in 2012 after several missed payments.

Jim Drummond is a longtime Yorba Linda resident. He gives his opinion on local issues weekly. Send e-mail to jimdrummond@hotmail.com.

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