SAN MARCOS — The city of San Marcos will begin seeking a public-private partnership to develop recreational opportunities on the 40-acre Rancho Tesoro property, amid a lack of funds to develop the site on its own.
The parkland along Santa Barbara Drive currently sits as mostly undeveloped open space adjacent to the Rancho Tesoro community near Discovery Lake. It features trails for hiking and biking, a soccer field, a dirt parking area, and fenced-off conservation areas.
Brookfield Residential, the developer of the 250-acre Rancho Tesoro community, dedicated the land to the city in 2021 with the condition that it be used for open space and park use. It was also graded at the time for potential development.
The site is one of the last large undeveloped parcels in the city that could accommodate a community recreation facility, according to the city. However, staff said developing a facility would cost around $40 million with site preparation, utility work, construction, and environmental mitigation.
If San Marcos wants to move forward with developing the park further, city officials said it will need the collaboration of a community partner.
“Due to the size of the site and significant costs anticipated to develop the remaining property, the city is exploring a private partner to help develop and activate the area in line with the dedicated use while enhancing park and recreational opportunities in the city,” said city spokesperson Faith Barrett.
On Tuesday, the City Council took the first step toward a partnership by adopting a resolution that declares the availability of leasehold interests in the Rancho Tesoro parkland under the state Surplus Land Act. It was adopted via the consent calendar and was not discussed.
The Surplus Land Act requires cities to advise local housing sponsors, parks and recreation departments, and local school districts about city-owned land that has no planned municipal use. Cities can dispose of the property to one of these entities, or enter into a long-term lease or similar agreement regarding the property.
In the case of Rancho Tesoro parkland, San Marcos is not considering abandoning the park use or selling the property at this time.
San Marcos District 2 City Councilmember Mike Sannella, whose district includes the park, said while it’s early in the process, the potential to create more recreational opportunities is exciting.
“Really, it’s kind of underutilized right now from a parks and rec standpoint,” Sannella said of the park. “I’m excited about the possibilities that we might be able to bring something really special to the community.”
Staff said the city would give priority to proposals that are consistent with the property’s zoned use for park and recreation activities. These could include public recreation uses, athletic facilities, or public leisure facilities.
Under a potential partnership, an organization could use private funds or another investment to construct recreational amenities at the park that the city would not be able to do otherwise, at least for the foreseeable future, the staff report says.
The city will issue a Notice of Availability to interested entities, and any proposal being considered would eventually go before the City Council for review.
“The item approved by the City Council is the first step in the process and allows the city to begin the preliminary regulatory work required by the State of California to determine whether a long-term public-private partnership is feasible for this site. No partner has been selected, and no development proposal is currently under consideration,” Barrett said.
