Title
Chief Administrative Office recommending the Board:
1) Approve and authorize the Chair to sign a Memorandum of Understanding with the Shingle Springs Band of Miwok Indians (Tribe) regarding the Indian Creek Ranch Subdivision property; and
2) Direct the Chief Administrative Officer to allocate the $750,000 payment from the Tribe towards the permanent Navigation Center project in the Fiscal Year 2025-26 Budget.
FUNDING: Revenue generating agreement.
Body
DISCUSSION / BACKGROUND
Indian Creek Ranch Subdivision Background
On December 11, 2008, the Planning Commission recommended the Board of Supervisors approve the Rezone, Development Plan, and Tentative Subdivision Map for the Indian Creek Ranch Subdivision (TM08-1472) submitted by Echo Lane Investors, LLC.
On February 3, 2009, with Legistar file 09-0052 (version 1), the Board approved the Rezone, Development Plan, and Tentative Subdivision Map for the Indian Creek Ranch Subdivision. The map had an original expiration date of February 3, 2012, which was legislatively extended to an expiration of February 3, 2016.
On May 26, 2016, with Legistar file 09-0052 (version 2), the Board approved an extension to the expiration date of the Tentative Subdivision Map for five years to February 3, 2021.
On May 18, 2021, with Legistar file 21-0699, the Board approved the Large Lot Final Map (TM-F20-0006) for Indian Creek Ranch. The Indian Creek Ranch Large Lot Final Map created a total of 13 large lots for financing purposes.
The Shingle Springs Band of Miwok Indians (Tribe) acquired the parcels from Echo Lane Investors, LLC on April 27, 2022.
On October 11, 2022, with Legistar file 22-1719, the Board approved a Final Map for the Indian Creek Ranch Subdivision for Indian Creek Ranch Unit 1 (TM-F22-0001), creating a total of four residential lots, and three lettered lots, on property identified as Assessor’s Parcel Number 327-320-001. In order to receive approval of this Final Map, the Tribe complied with multiple Conditions of Approval that were applicable at that stage of the development process, including the payment of $27,166 for mitigation in-lieu fees for oak canopy removal and $1,960 for parkland dedication in-lieu fees.
Fee-to-Trust Process
The Indian Reorganization Act (IRA) allows the Secretary of the Interior the discretion to acquire trust title to land or interests in land for tribes in the U.S. Additionally, Congress may authorize the Secretary to acquire title to particular land and interests in land into trust under statutes other than the IRA.
To assist the Secretary in their approval to place lands within El Dorado County into trust, the County is given the opportunity to comment on the proposed acquisition. During the County’s comment period, the public may provide comment to the Secretary as well. The County's comments are limited to information specific to each of the subject parcels, including: the annual amount of property taxes levied on each parcel; any special assessments currently assessed against each the parcels in support of the County; any government services currently provided to each of the parcels by the County; and if the parcels are subject to zoning, how the intended use is consistent, or inconsistent, with current zoning.
Historically, the entire process for the Secretary to place lands into trust could take 3-5 years to complete. With recent changes to the fee-to-trust regulations, the process has been streamlined and now could take as little as one year to place the lands into trust for tribes. To further expedite the process, Congress can instead pass a bill to place the land into trust for a tribe. Congressman McClintock expressed interest in introducing a bill to place the parcels in the Indian Creek Ranch Subdivision in addition to Bureau of Land Management parcels into trust for the Tribe but would not do so without a letter of support from El Dorado County.
Tribe’s Request for a Letter of Support from the County
On August 23, 2024, the Tribe sent a letter to the Board of Supervisors requesting a letter of support for Congressman McClintock to include Indian Creek Ranch in the congressional bill. The Tribe also offered a lump sum payment of $750,000 to compensate the County for lost property tax revenue and other expenses. The Tribe is also willing to enter into an agreement to ensure certain terms including maintaining residential use and complying with some of the conditions of approval associated with the approved Indian Creek Ranch Subdivision Map.
The County has previously expressed its support for tribal housing. The Indian Creek Ranch parcels are currently zoned for residential and open space, and there is an approved Final Large Lot Map for the entire project and a Final Map for one of the lots within the Large Lot Map. The Tribe currently has the ability to build homes for their members on Indian Creek Ranch pursuant to the conditions of approval of the Map.
The 2024 property tax bills for the parcels in the Indian Creek Ranch Subdivision total $89,035. The County estimates the following lost revenues if the parcels are developed after being placed into trust:
§ Estimated future Property Tax for 10 years assuming 2% growth: $5,445,286 (this amount would be distributed to County, Special Districts, and Schools dependent on Tax Rate Area)
§ Estimated Traffic Impact Fee: $2,315,978
§ Estimated Oak Woodland Area In-Lieu Fee: $98,840
§ Estimated Parkland Dedication In-Lieu Fee: $36,260
§ Estimated Mother Lode School District Mitigation Fee: $538,720 (would be paid to the School District not the County)
Tribe Fee-to-Trust Ad Hoc Committee Meetings
The Tribe Fee-to-Trust Ad Hoc Committee (Ad Hoc Committee) was established on September 10, 2024 (Legistar file 24-1563) to discuss and work with staff on pending or proposed tribal fee-to-trust land acquisitions and bring any recommendations back to the Board. The Ad Hoc Committee met on September 12, 2024 to discuss the Tribe's request and the fee-to-trust process for the Indian Creek Ranch. On September 16, 2024, the Ad Hoc Committee and the Tribe met to discuss the Tribe's request and County's counteroffer regarding the Indian Creek Ranch property. The County's counteroffer was a contribution from the Tribe to the El Dorado Road improvements in the amount of $2.9 million. On September 17, 2024, the Tribe declined the County's counteroffer and held to their original offer from August 23, 2024. On September 18, 2024, the Ad Hoc Committee had an internal meeting to discuss the Tribe's response and decided to recommend the Board accept the Tribe’s offer of a lump sum of $750,000 to compensate the County for lost tax revenue and other expenses associated with moving the Indian Creek Ranch into tribal trust with specific guarantees on land use and development.
The County acknowledges and respects the Tribe’s sovereignty, recognizing that as a federally recognized Tribe, they can purchase land and build what they want per federal legislation. That said, the County hopes that the Tribe will continue to be a good neighbor recognizing that as two sovereign entities, the Tribe and the County coexist on land that is mutually utilized. The Ad Hoc Committee took umbrage to the veiled threat to develop a competing commercial project on this property if the County does not accept the offer of $750,000 to guarantee that this land will be used for housing in return for our support for Congressman McClintock's streamlined fee-to-trust process through a legislative bill. As was discussed in the Ad Hoc Committee meeting, the west slope of El Dorado County has two main commercial districts, El Dorado Hills and Missouri Flat Road. The Ad Hoc Committee impressed upon the Tribe the importance of those districts to the County’s ongoing revenues. Going forward, as good neighbors and as mutual sovereign entities, it will be imperative to the quality of life of the people that the Board is entrusted to represent, that the Tribe and the County operate in an arena of mutual respect.
Given that the only other alternative is for the Indian Creek Ranch property to go through the fee-to-trust process, where the County loses its ability to collaborate with the Tribe on the land use, the El Dorado County Board of Supervisors reluctantly accepted the Tribe’s offer and sent a letter of support to Congressman McClintock.
Because the County acknowledges that this is a precedent-setting agreement, it is critical that the Tribe and the County continue to communicate to reach a mutually agreed upon understanding of the County’s responsibilities and limited resources to provide essential services that all County residents, including Tribal members, depend on for their health, safety, and well-being.
Memorandum of Understanding
The MOU sets the terms for an agreement between the County and the Tribe for the Indian Creek Ranch Subdivision with the following provisions:
§ The Tribe will pay the County one lump sum of $750,000 within 30 days of the adoption of the above-referenced Congressional bill placing the Property into trust for the benefit of the Tribe as compensation to the County for lost property tax revenues and other expenses.
§ The Tribe agrees to restrict development and use of the Indian Creek Ranch Subdivision to single-family residential dwelling units for Tribal members, which may include a limited number of townhome units not to exceed twenty percent (20%) of the total residential dwelling units in the subdivision.
§ The 6.62 acre parcel identified by Assessor Parcel Number 327-070-023 located contiguous to Indian Creek Ranch Subdivision is currently zoned residential with one dwelling unit and the Tribe agrees there will be no change or expansion of the parcel’s current use other than as green or open space.
§ The Tribe agrees that no gaming activities will occur on the Property and except for essential services, such as health care, convenience store, or general store, available for Tribal family residents only and not the general public, no other commercial, industrial, or economic ventures will be developed or operated on the Property.
§ The Tribe agrees that access at all entrances and exits to the Property will be gated in conformance with the approved Tentative Subdivision Map Conditions of Approval No. 34 - Entry Gates, and that development of the Property as a gated subdivision will not obstruct any access by adjacent properties to existing public roads or streets.
§ The Tribe agrees to comply with certain Conditions of Approval, as described in Exhibit A of the MOU.
Staff is recommending the payment of $750,000 from the Tribe to be allocated to the permanent Navigation Center project in the FY 2025-26 Budget.
ALTERNATIVES
The Board could choose not sign the MOU; however, this would likely result in the loss of the County's ability to secure the land use of the site for housing.
PRIOR BOARD ACTION
12/03/2009 Legistar file 09-0052 V1 - Board approved the Rezone, Development Plan, and Tentative Subdivision Map for the Indian Creek Ranch Subdivision
05/26/2016 Legistar file 09-0052 V2 - Board approved an extension to the expiration date of the Tentative Subdivision Map for five years
05/18/2021 Legistar file 21-0699 - Board approved the Large Lot Final Map for Indian Creek Ranch
10/11/2022 Legistar file 22-1719 - Board approved the Indian Creek Ranch Final Map
09/10/2024 Legistar file 24-1563 - Creation of Tribal Fee-to-Trust Ad Hoc Committee
09/24/2024 Legistar file 24-1689 - Board approved letters accepting the Tribe’s offer and supporting Congressman McClintock’s bill to place the Indian Creek Ranch Subdivision land into trust
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
FINANCIAL IMPACT
The County will receive a lump sum of $750,000 to compensate the County for lost tax revenue and other expenses associated with moving the Indian Creek Ranch into tribal trust.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) Obtain the Chair's signature on MOU
2) Deliver the signed MOU to the Chief Administrative Office, Attention: Jeanette Salmon
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Alison Winter, Principal Management Analyst