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HomeMy WebLinkAbout2002-032 RESOLUTION NO: 2002-32 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO (1) ACKNOWLEDGING RECEIPT OF A 33433 SUMMARY REPORT RELATING TO THE SALE OF ELEVEN (11) VACANT PROPERTIES ON 20TH STREET AS DESCRIBED IN MOTION C AND (2) AUTHORIZING AND CONSENTING TO THE SALE OF THE PROPERTIES BY THE AGENCY TO THE DISTRICT. WHEREAS, the Agency purchased the following properties located at: 2251, 2331, 2371, 2241, 2271, 2321 E. 20th (the "Properties"), and said purchase was 10 accomplished using the Agency's Low and Moderate Income Housing fund (Housing 11 Fund) in the amount of $402,544 (the "Fund") (Said costs includes relocation, demolition 12 and ancillary costs associated with the property acquisition), and as a result of the general 13 plan land use changes imposed upon the Properties by the City of San Bernardino on 14 March 2, 1999, the Agency is no longer able to utilize or develop the Properties for the 15 16 original intended use, and as such the Agency desires to sell the Properties at the AS IS fair 17 market value to the San Bernardino City Unified School District ("District"), and to enable 18 Agency to repay the Housing Fund ($111 ,000), and to facilitate the development of an 19 Elementary School ("Emmerton II or Elementary School No. 47"), which said 20 development is being prompted by the increases in student enrollment, and said 21 22 development is compatible with the current City land uses, (public commercial recreation 23 (PCR); and 24 WHEREAS, the Agency expended a total of $88,035 from its Community 25 Development Block Grant Program (CDBG) to purchase and demolish the following 26 27 properties: 2391, 2261, 2381, 2311 E, 20th Streets, (the "Parcels") and the sale of the 28 1 2002-32 1 2 Parcels by the Agency to the District, will enable to the Agency to replenish a portion of the funds expended for this purposes ($72,000); and WHEREAS, on December 17,2001, the Properties and Parcels were appraised by an independent MAl Appraiser, (the "Appraisal"), and said Appraiser determined that the value of the Properties and Parcels is $16,000 each for properties located at 2241, 2251, 2261,2271, 2311, 2321, 2331, 2381 E.20th Streets, and $17,000, for the property located at 2291 E, 20th Street, and 2311 and 2391 E. 20th Street for $19,000 each, for a total "as is" market value of $183,000 (the "Market Value"), and pursuant to the Purchase ("Contract") by and between the Agency and the District, the Agency shall sell and the District shall purchase the Properties and the Parcels at the AS IS Market Value set for in the December 17,2001 Appraisal; and NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DO HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The Properties were originally acquired by the Agency for affordable rental housing purposes, and the Agency used and applied the sum of $402,544 from its Low and Moderate Income Housing Fund to acquire the Properties which are hereby sold to the San Bernardino City Unified School District (the "District"), subject to the terms and conditions of the Agreement by and between the Agency and the District. Since the time of acquisition of the Properties, the Agency has also incurred certain other expenses in connection with the originally planned redevelopment and reuse of the Properties for affordable rental housing purposes, including the payment of relocation costs, property maintenance, security costs, asbestos abatement and demolition costs for the unsafe and dilapidated structures thereon. Subsequent to the original acquisition of the Properties by the Agency, the Agency determined that the 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2 2002-32 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 redevelopment of the Properties for affordable rental housing was no longer feasible in light of the fact that the Properties are no longer zoned for residential purposes and do not conform to the City's general plan land uses, and in light of the Arden Guthrie neighborhood in which the Properties are situated was and continues to be so substantially afflicted with symptoms of physical and social blight that the health and safety of the remaining residents of the Arden Guthrie neighborhood will be benefited by the transfer and sale of the Properties at the current "as is" fair market value of the such Properties to the District for use and improvement as a public school site. Section 2. The Mayor and Common Council hereby finds and determines that no further environmental review of the disposition and redevelopment of the Properties pursuant to the Agreement between the Agency and District is necessary at this time under the California Environmental Quality Act (CEQA) in light of the following: On January 8, the Planning Commission of the City of San Bernardino, found and determined that the development by the District of Elementary School #47 on the Properties (together with adjacent land to be acquired by the District from other parties) is consistent with the General Plan and current zoning regulations ofthe City's applicable to the elementary school site and the Properties, The District is the "lead Agency", as defined under the California Environmental Quality Act (CEQA), pursuant to Government Code Section 65402 for the acquisition and redevelopment of the Properties and the development of the Elementary School No.47 and the disposition of the Properties by the Agency to the District shall be subject to all of the development mitigation measures as required for Elementary School No.47 under CEQA. Section 3. The Mayor and Common Council hereby approves, receives and files the 33433 Summary Report and the Agreement in the form as submitted at this joint public hearing. 3 2002-32 1 2 3 4 5 6 The Mayor and Common Council hereby approves the disposition of the Section 4. 7 Properties to the District by the Agency, subject to the terms and conditions of the Agreement. Section 5. Subject to the satisfaction by the District and the Agency of the conditions set forth in the Agreement, the Mayor and the City Clerk are hereby authorized and directed to execute the appropriate form of quitclaim deed which transfers all of the right, title and interest of the City in the Parcels or Properties to the Agency concurrently upon, or prior to the close of 8 escrow transaction, as necessary, 9 IIII 10 11 IIII 12 IIII 13 IIII 14 IIII 15 IIII 16 17 IIII 18 /11/ 19 IIII 20 IIII 21 22 IIII 23 /11/ 24 IIII 25 IIII 26 111/ 27 28 11// 4 2002-32 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO (1) ACKNOWLEDGING RECEIPT OF A 33433 SUMMARY REPORT RELATING TO THE SALE OF ELEVEN (11) VACANT PROPERTIES ON 20TH STREET AS DESCRIBED IN MOTION C AND (2) AUTHORIZING AND CONSENTING TO THE SALE OF THE PROPERTIES BY THE AGENCY TO THE DISTRICT. 2 3 4 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 6 Joint Regular Common Council of the City of San Bernardino at a meeting thereof, held on the 7 8 22nd day of January , 2002, by the following vote to wit: 9 Council Members: Aves Navs Abstain Absent ESTRADA x LIEN x MCGINNIS ~ SCHNETZ x SUAREZ --"---- ANDERSON x - MC CAMMACK --"---- 10 11 12 13 14 15 16 Q~k.~ Rac'hel G. Clark Th' '""go'o, "wlo<ioo ',h,,,hy ',",0'" <h'"el'i""-- d.y 0' ~~ ~ yLHy J-,-- _- / Betty Dean Anderson Mayor Pro Tern Approved as to form and Legal Content: City of San Bernardino By: L7,(~ &y Attorney 17 18 19 ,2002. 20 21 22 23 24 25 26 27 28 5 2002-32 ORIGINAL REAL ESTATE PURCHASE CONTRACT AND ESCROW INSTRUCTIONS ELEVEN VACANT LAND PARCELS SAN BERNARDINO CITY UNIFIED SCHOOL DISTRICT AND REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 2002-32 ~ .','. ''''1 w~i~'~~~i~D~~I..I::jjj::l:.l i.7?nn? ' ,......!!i.ilwli .:. iiw...:,!:!lli-m- ,..Ii..,.,......'!'..!,.,.,!!'!.'!;:'.l!ji!:!..j"j..... .... n.. BUYER SELLER ESCROW COMPANY Name: San Bernardino City Unified School District (District); or, Redevelopment Agency of the City of Chicago Title Company San Bernardino Schools Financino Corooration (Corooration) San Bernardino IIttention: David Bail and Michael Perez Gary Van Osdel and Maggie Cindy Parsell Pacheco TaxlD: 95-2285577 95-3669891 "ddress: 777 North F Street 201 North E Street 560 East Hospitality Lane San Bernardino, CA 92410 Suite 301 San Bernardino, CA 92418 San Bernardino, CA 92401-1507 Phone: (909) 381-1238 (909) 663-1044 (909) 384-7853 FAX: (909) 885-4218 (909) 888-9413 (909) 384-7855 Emaii: MichaeI.Perez@sbcusd.k12.ca.us mpacheco@sbrda.org parsellc@CTT.com Buyer agrees to buy and Seller agrees to sell the Property identified in the table below for the estimated Purchase Price of $ 179,000. Buyer and Seller to agree-upon the final Purchase Price which shall be determined by a formal appraisal report prepared by a General Certified/MAl designated appraiser to be mutually selected and agreed-upon by the Buyer and Seller. Property Address Assessor Parcel Purchase Price ($) 2241 E 20th Street 0285-502-05 16,000 2251 E 20th Street 0285-502-06 16,000 2261 E 20th Street 0285-502-07 16,000 2271 E 20th Street 0285-502-08 16,000 2291 E 20th Street 0285-502-10 17,000 2311 E 20th Street 0285-553-01 17,000 2321 E 20th Street 0285-553-02 16,000 2331 E 20th Street 0285-553-03 16,000 2371 E 20th Street 0285-553-07 16,000 2381 E 20th Street 0285-553-08 16.000 2391 E 20th Street 0285-553-09 17,000 Total 179,000 Buyer and Seller agree to instruct the Escrow Holder as follows: 1. PURCHASE FUNDS: The funds for the purchase of the Property shall be provided by Buyer as follows: 18,000 Initial Deposit to be deposited upon acceptance of Contract by Seller. 161,000 Balance of Purchase Price to be deposited in available funds before Close of Escrow. $ 179,000 Purchase Price. 2. ESCROW: This Contract contains the Escrow Instructions of Buyer and Seller to Escrow Holder. The General Provisions of Escrow Holder are attached as Exhibit A and are incorporated herein by reference. The Escrow Instructions in this Contract shall have priority over any conflictin9 instructions in the General Provisions of Escrow Holder. The Time Limit Date for the General Provisions shall be October 31 , 2003. 2.1 Buyer and Seller agree that the Escrow Holder and Title Company shall be Chicago Title Company. 2.2 Close of Escrow is the date on which the Grant Deed from Seller to Buyer and any other necessary documents are recorded. The date of the Close of Escrow shall be on or before SeDtember 30. 2002. 2.3 If the contingencies of Section 6.1 have not been satisfied by September 30, 2002, the Buyer may extend the Close of Escrow for one additional 360 day period (the "Extended Closing Period") with a unilateral written instruction to Escrow Holder (the "Extension Instruction") and an additional deposit of $10,000 (Extension Deposit). The Extension Deposit will be credited to the sales price and will be deemed liquidated damages if escrow fails to close due to Buyer's default. . EMM2RDAPROPSPCFN2 Page (1/1) 2002-32 PRELIMINARY TITLE REPORT, TITLE INSURANCE, GRANT DEED AND RECORDATION: 3.1 Buyer has reviewed the Chicago Title Preliminary Title Reports (PTRs) and approves the Title Policy to be issued per Section 3.2 to include the legal descriptions and the approved Schedule B Exceptions No.'s of the PTRs in the table beiow. The PTRs are attached as Exhibit B. Assessor Parcels Title Report No.'s (PTRs) Date of PTR Approved Schedule B Items 285-502-06,07,10 12025794-K54 November 1, 2001 Item No.'s 7,18,19. 285-553-01,03,07,08 0285-502-05,08 12025795-K54 November 1, 2001 Item No.'s 7, 8, 9, 18, 19,20 0285-553-02 0285-553-09 12025798-K54 November 1, 2001 Item No.'s 3, 4 3.2 As a condition to the Close of Escrow, Escrow Holder shall be unconditionally committed to obtain from the Title Company at Buye~s expense a CL T A Owners Policy-Standard Coverage (Title Policy) with a liability limit in the amount of the Purchase Price and insuring fee title vested in the District or the Corporation free and clear of any liens, encumbrances and interests except those Schedule B Items approved in Section 3.1. 3.3 Prior to the Close of Escrow, Seller shall execute, acknowledge and deliver to Escrow Holder a Grant Deed conveying the Property to the Buyer. Seller acknowledges that several of the parcels are owned by related entities and that the Seller shall take the necessary actions and execute the appropriate documents so that all parcels are conveyed directly from Seller to Buyer. The Seller agrees that the Buyer may, solely at its option, designate that the title to the Property be vested in the District or the Corporation. Provided that all terms and conditions of this Contract have been satisfied, Escrow Holder shall record the Grant Deed at the Close of Escrow. 3.4 Buyer has provided Escrow Holder with an Acceptance of Grant Deed and Preliminary Change of Ownership Report for attachment to the Grant Deed that are attached in Exhibits C and D. Ercrow Holder is not responsible for the contents of said Acceptance or Report. 3.5 Buyer and Seller shail deliver to Escrow Holder such other documents and/or instructions (signed and notarized, as appropriate) as are necessary to comply with the terms of this Contract. Seller shall complete and deliver to Escrow Holder the Certification of Non-Foreign Status. 3.6 On or before the date for the Close of Escrow, Escrow Holder shall use the funds provided by Buyer and shall cause to be recorded the Grant Deed and any other applicable documents at such time as Escrow Holder can obtain assurance of obtaining the Title Policy. 4. CLOSING COSTS AND ADJUSTMENTS: 4.1 Buyer agrees to pay all closing costs including: premium for title insurance policy, escrow fee, document preparation fees and other fees as applicable and approved by Buyer. 4.2 Seller shall not have to pay any closing costs or fees in connection with this transaction. 4.3 Since the Buyer is a public agency, the transaction should be exempt from the payment of the Documentary Transfer Tax in accordance with Revenue and Taxation Code Section 11922 and County recording fees in accordance with Government Code Section 6103. Escrow Holder shall mark the Grant Deed as exempt per R&T Code Sec. 11922. 4.4 Escrow Holder shall prorate current real estate taxes between Buyer and Seller as of the Close of Escrow. 5. LIQUIDATED DAMAGES: IF ESCROW FAILS TO CLOSE DUE TO BUYER'S DEFAULT UNDER THIS AGREEMENT, SELLER WILL BE DAMAGED AND WILL BE ENTITLED TO COMPENSATION FOR THOSE DAMAGES. HOWEVER, SUCH DAMAGES WILL BE DIFFICULT AND IMPRACTICAL TO ASCERTAIN. IF ESCROW FAILS TO CLOSE DUE TO BUYER'S DEFAULT UNDER THIS AGREEMENT, THE SUM REPRESENTED BY THE INITIAL DEPOSIT MADE UNDER SECTION 1 AND THE EXTENSION DEPOSIT MADE UNDER SECTION 2.3 PLUS RELATED INTEREST EARNINGS, IF ANY, SHALL BE DEEMED TO CONSTITUTE A REA~A.BLE ESTIMATE OF SELLER'S DAMAGES AND SELLER'S SOLE AND EXCLUSIVE REMEDY. ~7~ SELLER'S INITIALS BUYER'S INITIAI!S _ "7 . 6. CONTINGENCIES: The Close of Escro s subject to the completion of the following conditions: .'.-.- / 6.1 Buyer's Contingencies: a. Approval of the acquisition of the Property and the proposed public school project by the Board of Education of the San Bernardino City Unified School District. b. Receipt of funds for the acquisition of the Property from the State of California. 7. ENTIRE CONTRACT: This Contract contains the entire understanding between the Buyer and Seller relating to the transaction covered by this Contract. All prior or contemporaneous agreements, understandings, representations and statements, whether direct or indirect, oral or written, are merged into and superseded by this Contract and shall be of no further force or effect. EMM2RDAPROPSPCFN2 Page (2/2) 2002-32 StAil1..F>lIBEGtlASI1GClN .. . sCRowlr,isIRUCri. ,.,.."...."......."...,,,,,.,.,,...,....,,......,,,,,,;;,.,.,,,.,,.,,.. .. SlQ..Q!!;1.Q'and~2115,SS:f 8. OFFER AND ACCEPTANCE: When signed by Buyer, this Contract shall be considered an offer to purchase the Property. When signed by Buyer and Seller, this Contract shall be considered a binding agreement to purchase the Property subject to the contingencies in Section 6.1. This Contract and any supplement or modification hereto, including any photocopy or facsimile thereof, may be executed in two or more counterparts, all of which constitute one and the same writing. 9. OTHER MATTERS: The following are matters to which the Escrow Holder shall not be concerned, responsible or iiable. 9.1 "AS IS" Condition. Buyer is acquiring the Property in its "AS IS" condition and shall obtain all inspections and reports outside of Escrow. 9.2 Fire/Hazard Insurance. Fire and hazard insurance are not a requirement of this Escrow and Buyer will obtain such insurance as necessary outside of Escrow. 9.3 Brokeraqe Commission. Buyer and Seller acknowledge that no broker's commission, finder's fee or other compensation is payable with regard to the transaction covered by this Contract. The parties hereto have caused this Contract to be executed as of the day and year first above written. SELLER: BUYER: SAN BERNARDINO CITY UNIFIED SCHOOL DISTRICT, a political subdivision of the State of California .'/~..::;;~ / DAVID S/BAIL 1/ Its: Assistant SUDerintendent-Business Services By: . . EMM2RDAPROPSPCFN2 Page (3/3) 2002-32 EXHIBIT A CHICAGO TITLE COMPANY GENERAL PROVISIONS OF ESCROW HOLDER 2002-32 GENERAL PROVISIONS Escrow No. 2012025813-K54 TO: CHICAGO TITLE COMPANY Date January 7, 2002 1. Time is of the essence of these instructions. If this escrow is not in a condition to close by the TIME LIMIT DATE as provided for herein and written demand for cancellation is received by you from any principal to this escrow after said date, you shall act in accordance with paragraph 7 of the General Provisions. If no conflicting instruction or demand for cancellation is made, you will proceed to close this escrow when the principals have complied with the escrow instructions. In the event one or more of the General Provisions are held to be invalid, those remaining will continue to be operative. Any amendments of or supplements to any instructions affecting escrow must be in writing. You are authorized to order demands for, and pay at the close of escrow any encumbrances of record necessary to place title in the condition called for without further authorization. You are further authorized, prior to the close of escrow, to pay from funds on deposit any fees necessary to obtain any demand and/or report as may be required in this escrow and at the close of escrow charge the parties as appropriate. The principals will hand you any funds and instruments required from each respectively to complete this escrow, Interest on any new financing may begin to accrue on the date loan funds/proceeds are disbursed by the new lender, and borrower agrees to pay same in accordance with lender's instructions. 2. You are instructed to deliver and/or record all documents and disburse all funds when you can comply with these instructions and issue any title insurance policy as called for herein. These instructions, together with any amendments and/or supplements, may be executed in counterparts and together shall constitute one and the same document. If these instructions relate to a sale, and if there is no other written agreement between the parties pertaining thereto, buyer agrees to buy and seller agrees to sell upon the terms and conditions hereof. All documents, balances and statements due the undersigned are to be mailed to the respective addresses shown herein, unless otherwise directed. In the event that any party to this escrow utilizes facsimile transmitted signed documents, all parties hereby agree to accept and hereby instruct the escrow holder to rely upon such documents as if they bore original signatures. Buyer and seller further acknowledge that any documents to be recorded bearing non original (facsimile) signatures will not be accepted for recording by the county recorder. 3. The phrase "close of escrow" (or COE) as used in this escrow means the dale on which documents are recorded, unless otherwise specified. 4. Assume a 30 day month in any proration herein provided, and unless otherwise instructed, you are to use the information contained in the latest available tax statement, including any supplemental taxes of record, rental statement as provided by seller and beneficiary's or association statements delivered into escrow for proration purposes. 5. Upon close of escrow you are instructed to charge our respective accounts the costs attributable to each, including but not limited to costs as provided for herein and/or in accordance with our respective estimated statements attached hereto and made a part hereof. 6. Recordation of any instruments delivered through this escrow, if necessary or proper for the issuance of the policy of title insurance called for, is authorized. No examination or insurance as to the amount or payment of personal property taxes is required unless specifically requested. 7. If demand to cancel is submitted after the Time Limit Date, any principal so requesting you to cancel this escrow shall file notice of demand to cancel in your office in writing. You shall within three (3) working days thereafter mail by certified mail one copy of such notice to each of the other principals at the address stated in this escrow. Unless written objection thereto is filed in your office by a principal within fifteen (15) calendar days after the date of such mailing, you are instructed to cancel this escrow. If this is a sale escrow, you may return the lender's papers and/or funds upon lender's demand. 8. In the event that this escrow is canceled, any fees or charges due Chicago Title Company including cancellation fees and any expenditures incurred or authorized shall be paid from funds on deposit unless otherwise specifically agreed to or determined by a court of competent jurisdiction. Upon payment thereof, return documents and monies to the respective parties depositing same, or as ordered by the court, and void any executed instruments. 9. If there is no written activity by a principal to this escrow within any six-month period after the Time Limit Date set forth herein, Chicago Title Company may, at its option, terminate its agency obligation and cancel this escrow, returning all documents, monies or other items held, to the respective parties entitled thereto, less any fees and charges as provided herein. 10. If, for any reason, funds are retained or remain in escrow after the closing date, you may deduct therefrom a reasonable charge as custodian, of not less than $25.00 per month, unless otherwise specified. (Continued) BEIGPISH .lO/23198-lre 2002-32 GENERAL PROVISIONS (Continued) Escrow No. 2012025813-K54 TO: CHICAGO TITLE COMPANY January 7. 2002 Date 11. In the event that you should receive or become aware of conflicting demands or claims with respect to this escrow, or the rights of any of the parties hereto, or any money or property deposited herein, you shall have the absolute right at your option to discontinue any or all further acts until such conflict is resolved to your satisfaction. 12. In the event that any Offer to Purchase, Deposit Receipt, or any other form of Purchase Agreement is deposited in this escrow, you, as escrow holder, are not to be concerned with the terms of such document and are relieved of all responsibility in connection therewith. The foregoing is not applicable in any transaction in which Chicago Title has specifically agreed to accept an Offer to Purchase, Deposit Receipt or other form of Purchase Agreement as escrow instructions. In any event, you are not to be concerned or liable for items designated as "memoranda" in these escrow instructions nor with any other agreement or contract between the parties. 13. The parties hereto, by execution of these instructions acknowledge that the escrow holder assumes no responsibility or liability whatsoever for the supervision of any act or the performance of any condition which is a condition subsequent to the closing of this escrow. 14. In the absence of instructions to the contrary, you are hereby authorized to utilize wire services, overnight, next day, or other expedited delivery services (as opposed to the regular U.S. Mail) and to charge the respective party's account accordingly. 15. Concerning any real property involved in this transaction you are released from and shall have no liability, obligation or responsibility with respect to (a) withholding offunds pursuant to Section 1445 of the Internal Revenue Code of 1986 as amended, and to Sections 18662 and 18668 of the California Revenue and Taxation Code, (b) advising the parties as to the requirements of said Section 1445, (c) determining whether the transferor is a foreign person or a non-resident under such Section, nor (d) obtaining a non foreign affidavit or other exemption from withholding under said Sections nor otherwise making any inquiry concerning compliance with such Sections by any party to the transaction. 16. If you pay a demand to pay in full a revolving line of credit or equity line loan, you are hereby instructed on my behalf and for my benefit, to request that the lender issuing said demand cancel said revolving line or equity line of credit. 17. You are authorized to furnish to any affiliate of Chicago Title Company, any attorney, broker or lender identified with this transaction or any one acting on behalf of such lender any information, instructions, amendments, statements, or notices of cancellation given in connection with this escrow. If any check submitted to escrow is dishonored when presented for payment, you are authorized to notify all principals and/or their respective agents of such non payment. 18. All notices, change of instructions, communications and documents are to be delivered in writing to the office of Chicago Title Company, as set forth herein. 19. All funds received in this escrow shall be deposited with other escrow funds in one or more non-interest bearing demand accounts of Chicago Title Company in any state or federal bank or any state or federal savings and loan association ("the depository institutions") and may be transferred to any other such accounts. The parties to this escrow acknowledge that while these accounts do not bear interest, because of these and other banking relationships with the depository institutions, Chicago Title Company and its affiliates may receive from some of the depository institutions an array of banking services, accommodations or other benefits. Chicago Title Company and its affiliates also may elect to enter into other business transactions with or obtain loans for investment or other purposes from some of the depository institutions. All of such services, accommodations and other benefits shall accrue, directly or indirectly, to Chicago Title Company and its affiliates and they shall have no obligation to account to the parties to this escrow for the value of such services, accommodations or other benefits. All disbursements shall be made by Chicago Title Company check, unless otherwise instructed. Chicago Title Company shall not be responsible for any delay in closing if funds received by escrow are not available for immediate withdrawal. Chicago Title Company may, at its option, require concurrent instructions from all principals prior to release of any funds on deposit in this escrow. 20. You are authorized to destroy or otherwise dispose of any and all documents, papers, instructions, correspondence and other material pertaining to this escrow at the expiration of six (6) years from the close of escrow or cancellation thereof, without liability and without further notice. (Continued) BElGP2SH_I0/23/<JX_Jrc 2002-32 GENERAL PROVISIONS (Continued) Escrow No. 2012025813-K54 TO: CHICAGO TITLE COMPANY Date January 7, 2002 IMPORTANT NOTICE Except for wire transfers, funds remitted to this escrow are subject to availability requirements imposed by Section 12413.1 of the California insurance Code. CASHIER'S, CERTIFIED or TELLER'S checks, payable to CHICAGO TITLE COMPANY are generally available fOf disbursement on the next business day following the date of deposit. Other forms of payment may cause extended delays in the closing of your transaction pursuant to the requirements imposed by State Law. (Wire transfer information available upon request) ALL PARTIES TO THIS ESCROW ACKNOWLEDGE THAT CHICAGO TITLE COMPANY DOES NOT PROVIDE LEGAL ADVICE NOR HAS IT MADE ANY INVESTIGATION, REPRESENTATIONS OR ASSURANCES WHATSOEVER REGARDING THE LEGAL ASPECTS OR COMPLIANCE OF THIS TRANSACTION WITH ANY TAX, SECURITIES OR ANY OTHER STATE OR FEDERAL LAWS. IT IS RECOMMENDED THAT THE PARTIES OBTAIN INDEPENDENT LEGAL COUNSEL AS TO SUCH MATTERS. THE FOREGOING ESCROW INSTRUCTIONS AND GENERAL PROVISIONS HAVE BEEN READ AND ARE UNDERSTOOD AND AGREED TO BY EACH OF THE UNDERSIGNED. SELLER: BUYER: REDEVELOPMENT A SAN BERNARDINO CITY UNIFIED SCHOOL DISTRICT, a political subdivision of the State of California Its: Agency Secretary ~ ~.71f By /><<; :{1 -[;'AVID S. BAIL / Its: Assistant Superintendent-Business Services By: Its: BEIGP3SH -1 O/2319B-Jrc 2002-32 ..'-~---';""""_" .i1A1~&i..iAU. I U II - 8~v~'-';..~'jl~',_JiI~~ ~ t:;).l11r;-""~ '" ~a YO -- J ,;:;',":, rJOflf .,. --'C.i~j 12.9" '- ~ _"ARSH""'1N_."ffp """',.%jr\ - I ,~....n -.,.: --.A IJd" --- iltz'1- J---- .r ""'R DE~I~:r I a: · ''rt'fh; "lP;'W ()[, .. "' -' r''''-'=== A-c ,.:t :' , ! ~!f'.' L ~ . : ),-. L ' . JI J", l~ "j;:.'i;::; L,.{,Wnn. 'ur.:- o I Vi: .- 11SlPI~ f~, '"F(:; L . , bdI -/\ln,q~:~ ~ I :':1/ill 1~.!~!.-/~iLl a_, 'NT~~J : 59 \~.' :~~. -.-7; !..~ f' i - - .. -:__ -. -- --::.LA.l_ _ D-_ )' ..!Z : JLt~F~ /~ :"':1, i ~\ _' rIF-i' Jill . - ,1iE'- =.~:;-....;;: ...., "" ---,... __ ~--------, 'Il"JC" 0.!!UJS -- - ~ ..~ _lb - - -- a _. 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" v ~ o o "' ..J < U "' o :z ~ S ~ o C . ;:; ~ ~ ~ n 5 " ~ 2002-32 33433 SUMMARY REPORT DATED DECEMBER 21, 2001 PURSUANT TO HEALTH AND SAFETY CODE OF THE CALIFORNIA COMMUNITY REDEVELOPMENT LAW ON A PURCHASE CONTRACT (THE "AGREEMENT") BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND THE SAN BERNARDINO CITY UNIFIED SCHOOL DISTRICT PERTAINING TO THE SALE OF ELEVEN (11) VACANT PARCELS ON 20TH STREET BETWEEN ARDEN AND GUTHRIE STREETS INTRODUCTION This summary report has been prepared pursuant to Section 33433 of the California Health and Safety Code, This report sets forth certain details of the proposed Purchase Contract (Agreement) between the Agency and San Bernardino City Unified School District ("District"), pertaining to the sale and redevelopment of eleven vacant parcels located at: 2241,2251,2262, 2271, 2291,2311, 2321, 2331, 2371, 2381 and 2391 E, 20th Street, north Arden-Guthrie Area ofthe City of San Bernardino (the "Properties"). This report is organized into the following seven sections: A. Salient Points of the Proposed Al!reement: This section includes a description ofthe project and the major responsibilities to be assumed by the Agency and the District as it relates to the proposed Agreement. B. Cost of the Proposed Al!reement to the Al!encv: This section outlines the total and net costs of the proposed Agreement to the Agency. C. Estimated Value of the Interests to be Conveved determined at the Hiehest Use Permitted Under the Redevelopment Plan: This section summarizes the value of the Properties to be conveyed to the District at the highest use permitted. D. Estimated Reuse Value ofthe Interests to be Conveved Determined Based on the ReQuired Use and with the Conditions. Covenants and Development Costs ReQuired bv the Proposed Al!reement: This section summarizes the value of the Properties determined at the use required by the proposed Agreement, recognizing the impact of the proposed Agreement's terms and conditions, if any. E. Consideration Received and Comparison with the Fair Reuse Value: This section describes the compensation to be received by the Agency, and the reasons for any difference between the compensation and the fair reuse value, if applicable. ., F. Blil!ht Alleviation: This section describes the existing blighting conditions on the Properties, and an explanation of how the proposed Agreement will assist in alleviating the blighting conditions. G. Conformance with the AB 1290 Implementation Plan: This section identifies how the proposed Agreement will result in a development that fulfills goals and objectives established in the Agency's AB 1290 Five Year Implementation Plan. I 2002-32 I. SALIENT POINTS OF THE PROPOSED AGREEMENT A. Descriotion of the ProDOsed Proiect The purpose of the proposed Agreement is to effectuate the sale of the Properties to the District in order to develop an elementary school (Elementary School #47, or Emmerton II) on the Properties together with adjacent privately owned land that the District will acquire directly. B. Allencv Resoonsibilities To enter into a Purchase Contract with the District to sell the Properties to the District subject to the terms of the Agreement. C. District Resoonsibilities To enter into a Purchase Contract with the Agency to purchase the Properties from the Agency subject to the terms of the Agreement. II. COST OF THE AGREEMENT TO THE AGENCY The costs incurred by the Agency to purchase, relocate and demolish said Properties is as follows: Seven parcels located at 2251,2331,2291,2371, 2241,2271, 2321 E. 20th Street were purchased by the Agency, which included relocation and demolition costs amounting to $402,544. These expenditures were made from the Agency's Low/Moderate Income Housing Fund. The Agency also purchased the following properties: 2391, 2261,2381,2311 E. 20th Streets for a total expenditure of$88,035. These costs included acquisition, relocation and demolition costs, and said costs were funded by the Agency's Community Development Block Grant (CDBG) Program. Therefore, the total expenditure by the Agency for the Properties is $490,579. III. ESTIMATED VALUE OF THE INTERESTS TO BE CONVEYED DETERMINED AS THE HIGHEST USE PERMITTED UNDER THE REDEVELOPMENT PLAN The estimated "AS IS" fair market value of the interest to be conveyed, determined at the highest uses permitted for all eleven parcels is $183,000. This value is supported by an appraisal report prepared by James Smothers, MAl, dated December 17, 2001. IV. ESTIMATED REUSE VALUE OF THE INTERESTS TO BE CONVEYED DETERMINED BASED ON THE REQUIRED USE AND WITH THE CONDITIONS, COVENANTS AND DEVELOPMENT COSTS REQUIRED BY THE PROPOSED AGREEMENT, IF APPLICABLE, The Properties will be conveyed to the District for the highest use value permitted under the Redevelopment Plan. V. CONSIDERATION RECEIVED AND COMPARISON WITH THE FAIR REUSE VALUE As noted above, the Properties are being conveyed to the District at its highest use value. 2 2002-32 VI. BLIGHT ALLEVIATION Although the Properties are not located with a redevelopment project area, the Agency acquired the Properties with the intent to develop affordable housing. However, in 1999, the City undertook a study to determine the market conditions and to analyze various land use alternatives for the area given the deterioration of the area that had occurred overtime. After much consideration and evaluation of the neighborhood conditions, principally the area no longer being suitable and conducive for residential living, the area was rezone to Public Commercial Recreation (PCR). When considering the land use changes the Council considered the following items: the Properties are located in an area undergoing major transformation; the market analysis concluded that a sports/park facility was a good market potential and would be compatible with the surrounding recreational uses; the PCR, Public Commercial Recreation designation permits a range of sports and recreation facilities and supporting uses, thus the rezoning will help with the implementation of the market study; and last, but not least, the PCR designation would encourage redevelopment and revitalization of a poorly underutilized area. VII. CONFORMANCE WITH THE AB 1290 IMPLEMENT A TION PLAN The Five- Year Implementation Plan adopted by the Agency contains several broad operational goals and objectives that are applicable to the disposition of the Properties. Among these objectives are the following: . Creative implementation of catalyst projects which spur reinvestment on surrounding blocks. . Land acquisition for the creation of public facilities, which serve both the immediate neighborhood and the community at large. . Improvements to existing water and sewer lines, streets, sidewalks, parkways and lighting in the public right-of-way; and continued participation in the enhancement of the public infrastructure system. The proposed Agreement will assist the Agency in meeting the above noted objectives and goals of its Five-Year Implementation Plan. Based upon the preceding factors, the proposed Agreement is consistent with the adopted Five-Year Implementation Plan. The execution of the Agreement is subject to the closure of a public hearing with a majority approval voted by the Agency. The execution by the District is subject to the approval of the Agreement and applicable provisions of the California Educate Code. 3 2002-32 r .--------------------------------------~ > Ste4rling Avenue 8 ~ 1888 Argyle Avenue 11900 I 1922 I II~~~ LJ~~~ >ni:l ~1L OZ "'0 r--- V) . '0 . lc I ,'-I . , :t . '''' 1___. Z C ... ... '" ,..... Z CIO ~N. .0 ;j: 0'" I ";<l o ~ ~ J'-I :E (It ft :t ; ~;;-.. tT.I 0.. ". Z ". ..... C ..... '" tl !2 > ..... '" .. O;p ~ ~ ~ - 0.." ". ..... '" C > G~ 2031 PHiliP GARCIA 2034 2043 2044 A~JK~~ LEESON 2054 2069 OBERG 2064 2083 2074 2095 2084 2105 2094 2119 2104 2135 2116 2149 2130 21.65 2142 _OnLF. 2175 2156 2168 2195 2182 2197 2194 2199 2025 2035 2045 2055 2065 2075 2085 V> 5 2095 o. ~ 2105 ~ Ii 2117_ FINLEY 2131 2143 2157 2169 2183 !3 EJ B ~ B ---~ 8 B....'B ~~- ~ 0\ ...... VI !v.: 0\ ~ !\Jli V\ ~ ~ ...... : I~ ;:N - . 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