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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: JAMES FUNK, Director
Dept: Development servOR \ G \ N ~\ L
Date: February 12,2004
Subject: Public Hearing - 4:00 p.m. and Resolution
Authorizing Execution of a Sales and Purchase
Agreement for City property located at the
southwest corner of 7th Street and Harris Street.
Synopsis of Previous Council Action:
File No. 15.05-234
MCC Date: 03-01-2004
05-19-03 --- Authorization to proceed with the sale of City property located at the southwest
corner of 7th Street and Harris Street.
11-5-01 - Resolution No. 2004-36 was adopted, establishing and setting fair market value and
sales price of $22,500.00 and declaring the intention of the City to sell property located at the
southwest corner of 7'h Street and Harris Street and setting a public hearing.
Recommended Motion:
1. That the Public Hearing relative to the sale of City property located at the southwest corner
of 7th Street and Harris Street be closed;
AND
2. Adopt Resolution.
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Contact person: EILEEN GOMEZ
Supporting data attached: StaffReportlMap/Res.
Phone: 5328
Ward: 1
FUNDING REQUIREMENTS: Amount:
None
Source: (Acct. No.) N/A
(Acct. Description) N/A
Finance:
Council Notes:
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Agenda Item No.
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
SUBJECT:
Public Hearing - 4:00 p.m. and Resolution Authorizing Execution of a Sales and Purchase
Agreement for City property located at the southwest corner of 7th Street and Harris Street.
BACKGROUND:
In February, 1992, the City acquired the property previously known as New Hope Church of
God in Christ, located at the southwest corner of ih Street and Harris Street. The church was
assessed with several abatement liens that were unsettled and the building was ultimately
demolished. The property was then quitclaimed to the City as part of court settlement
proceedings to recover costs incurred by the City for demolition and abatement fees in the
amount of $21 ,061.00. The property is currently vacant.
In October 2002, an inquiry was received from Mr. Kenneth Owens, an individual interested in
purchasing the vacant lot at the southwest corner of 7th Street and Harris Street for residential
development purposes, which is consistent with the current General Plan. On May 19,2003,
Authorization to Proceed was given for the sale of City property located at the southwest corner
of 7th Street and Harris Street. Request for Proposals for an appraisal were sent to various
appraisers in the area. The proposal was awarded to James Smothers, Certified General
Appraiser. The appraisal was paid for by Mr. Owens, and was received in our office stating that
the estimated market value of the property is $22,500.00. The property was previously
encumbered by a Deed of Trust for $11,215.14, which has now been cleared by Mr. Owens.
Pursuant to Section 2.65.030 of the San Bernardino Municipal Code, property valued at less
then $25,000 may be sold without going through the public bid process, but a public hearing on
the proposed sale must still be held. The attached Resolution authorizes the execution of a Sales
and Purchase Agreement and the execution of a Grant Deed relative to the proposed sale. City
departments were given notification and no conflicts were noted.
On February 2, 2004, Resolution No. 2004-36 was adopted, establishing and setting fair market
value and sales price of $22,500 and declaring the intention of the City to sell property generally
located at the southwest corner of 7th Street and Harris Street in the City of San Bernardino, and
setting a public hearing to consider said sale.
FINANCIAL IMPACT:
Revenue of $22,500 less costs, from sale proceeds.
RECOMMENDATION:
Staff recommends that the hearing be closed and the attached resolution be adopted.
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RESOLUTION OF THE CITY OF SAN BER!\'ARDINO D1RECTI:'\G AND
UTHORIZING THE EXECUTION OF A SALES A:'\D PVRCHASE AGREEMENT
,\I'iD THE EXECUTION OF A GRANT DEED FOR THE SALE OF CITY-OWNED
ROPERTY GENERALL Y LOCATED AT THE SOVTHWEST COR:'\ER OF 7TH
STREET AND HARRIS STREET IN THE CITY OF SA'i BERNARDINO.
BE IT RESOLVED BY THE MAYOR A"iD COMMON COUNCIL OF THE CITY
OF SAN BER!\'ARDINO AS FOLLOWS:
SECTION I, That the Mayor of the City of San Bernardino is hereby directed
and authorized to execute on behalf of said Citv, a Sales and Purchase Agreement, a copy
f which is attached hereto as Exhibit" I". and a Grant Deed, a copy of which is attached
Jereto as Exhibit "2". for the sale of certain City-owned property located at the southwest
corner of 7'" Street and Harris Street in said City. and more fully described in detail in
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said Exhibit "]" and said Exhibll "2",
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SECTIO'i 2. Said Agreement shall be null and void if either party fails to
16 xecute the Agreement within sixty (60) days of the date of adoption of this Resolution.
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02! 12'04
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RESOLl'TION AUTHORIZI!\G EXEClTIOil: or A!\ AGREE\ILil:T A!\D GRA.'I,T DEED FOR S.\LE OF
1 In-OW'I,ED PROPERTY LOCATED AT THE SOL'lHWEST CORNER OF 0'" STREET A\D IHRRIS
STREET,
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I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and
C0l111110n Council of the City of San Bernardino at a
meeting thereof
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Jete! on the
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7 ,,'it:
8 Council Members:
9 ESTRADA
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LO:\GVILLE
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\1CGINI'\IS
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13 DERRY
day of
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. by the following yote. to
AYES
NAYS
ABSTAI:\
ABSENT
e 14 KELLEY
15 IOH1'\SON
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MCCAMMACK
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20 The foregoing resolution is hereby appro\'ed this
Clly Clerk
day of
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JUDITH V ALLES, t\1ayor
City of San Bernardino
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23 Approved as to form
and legal content:
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25 JAMES F PENMAN
City Attorney
26 By f.~~Ji} L
27 SflQriYJJC:c~~c' /
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02: ) 204
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SALES AND PURCHASE AGREEMENT
This Agreement ("AGREEMENr) is made and entered into this day of
2004, by and between the CITY OF SAN BERNARDINO, a municipal corporation ("SELLER") and
KEJ\'NETH L. O\VENS ("BUYER") for the sale of City-owned property ("PROPERTY") described
below.
PROPERTY to be sold is generally at the southwest corner of 7[h Street and Harris Street in the City of
San Bernardino, State of California, also know as Assessor's Parcel No. 0138-071-06 and is more fully
described in Exhibit "'A", and shown on plat map attached hereto as Exhibit "A-l ", attached hereto and
made a part hereof.
In consideration of which, and for the other considerations hereinafter set forth, it is mutually agreed as
follows:
1. The parties have herein set forth the whole of their negotiations. The performance of this offer
constitutes the entire consideration for said document, and shall relieve the parties hereto of all
further obligations or claims on this account.
2. PROPERTY consists ofa vacant parcel as follows: Parcel is approximately 7,500 square feet and is
designated RS (Residential-Suburban) in the City of San Bernardino's General Plan.
Parties shall enter into escrow with Southland Title, 7530 N. Glenoaks Boulevard, Burbank,
California 91504, for a period not to exceed sixty (60) days, unless mutually agreed upon by both
parties. Parties authorize said title company to disburse funds accordingly.
4. The purchase price of PROPERTY shall be Twenty-two Thousand Five Hundred Dollars ($22,500).
SELLER hereby acknowledges that BUYER shall deposit with SELLER, the amount of Two
Thousand Five Hundred Dollars ($2,500), which SELLER shall deposit into escrow towards said
purchase price.
5. SELLER SHALL:
A. Pay proportionate share of escrow and closing costs incurred with this transaction.
B. Reimburse BUYER for appraisal costs in the amount of $500 as a credit towards total purchase
pnce.
C. Deliver an executed Grant Deed to Escrow at Southland Title, 7530 N. Glenoaks Boulevard,
Burbank, California 91504.
D. Provide an owner's title policy naming the BUYER as the insured in the amount of the purchase
price, insuring that the BUYER owns fee simple title to PROPERTY, subject to the permined
exceptions. SELLER shall pay the premium for and charges related to the issuance of the
owner's title policy.
EXHIBIT ")"
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If
SALES AAD PURCHASE AGREEMEST - Sozllhwesl corner o[7'h Slreel and Harris Slre"l. Bid Spec
No. }505-23-1
6. BUYER SHALL:
A. Pay the SELLER the sum of Twenty-two Thousand Five Hundred Dollars ($22,500) for said
PROPERTY, for interest conveyed when title to PROPERTY vests in the name of BUYER and
is free and clear of all liens, encumbrances and assessments except as follows:
I) Covenants, conditions, restrictions and reservations of record.
2) Easements andlor rights of way over said land for public or quasi-public utility or public
street purposes.
B. BUYER shall have the right to review the condition oftitJe in escrow, and its obligations shall be
subject to its approval of the condition of title as provided therein.
C. Pay proportionate share of escrow and closing costs incurred in this transaction.
D. BUYER accepts the PROPERTY in an "as-is" condition.
7. BUYER'S DEFAULT AND FORFEITURE OF DEPOSIT.
If the BUYER refuses or fails to consummate the purchase of PROPERTY pursuant to this
AGREEMENT for any reason other than termination hereof, pursuant to a right granted hereunder
to do so, or breach by SELLER of its agreements hereunder, then SELLER as its sole and exclusive
remedy shall have the right to terminate this AGREEMENT by giving BUYER \'.Titten notice
thereof, in which event BUYER shall forfeit said deposit as liquidated damages and neither party
hereto shall have any further rights or obligations hereunder.
8. SELLER'S DEFAULT AND RETURN OF DEPOSIT.
If SELLER fails to perform any if its obligations hereunder, either prior to or at the closing of
escrow, the BUYER may terminate this AGREEMENT by notifying SELLER thereof, at which
time said deposit, together with any interest earned thereon shall be returned to BUYER, and
neither party hereto shall have any further rights or obligations hereunder.
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S'ALES AXD PURCHASE AGREEMEST - Saurh\1csI curner ()f~'h Slreel alld Harris Slree/, Bid Spec
A'a. /505-23./
IN WITNESS \VHEREOF, the parties have executed this Agreement the day and year as first written
abO\e.
NO OBLIGA nON OTHER THAN THOSE SET FORTH HEREIN WILL BE RECOGNIZED,
BUYER:
SELLER:
CITY OF SAN BERNARDINO
By:
JUDITH V ALLES, MaYQr
KENNETH L. OWENS
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Approved as to form
and legal content:
ATTEST:
JAMES F PENMAN.
City Attorney
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!?I-'tsc I/A(. C-ou v-::'. C..:...
RACHEL CLARK, City Clerk
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Legal description for Ci!)' proper!)' located at the southwest corner of 71h Street and
Harris Street - APN: 0138-071-06
Lot I, Block 2, Allen's Third Addition, as per plat thereof, recorded in Book 5 of Maps,
page 64, records of the County Recorder of San Bernardino County, State of California,
Exhibit" A"
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EXHIBIT "A-I"
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RECORDING REQUESTEC' BY
4t"lHEN RECORDED MAIL THIS DEED AND
SS OTHERWISE SHOWN, MAIL TAX
TEMENTS TO
Kenneth L. Owens
402 W, Stevens, .C
Santa Ana, CA 92707
Escrow No.:
AP" 0138-071-06
SPACE ABOVE FOR RECORDERS USE
GRANT DEED
FOR A V ALlJABLE CONSIDERATION, receipt of which is hereby acknowledged, The CITY OF
SAN BERNARDINO, a municipal corporation, hereby grants to KENNETH L OWENS, the real
property in the City of San Bernardino, County of San Bernardino, State of California, described as follows:
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Lot I, Block 2, Allen's Third Addition, as per plat thereof. recorded in Book 5 of Maps,
page 64, records of the County Recorder of San Bernardino County, State of California,
CITY OF SAN BERNARDINO,
a municipal corporation
By
JUDITH VALLES, Mayor
Dated:
STATE OF CALIFORNIA
COUNTY OF
ACKNOWLEDGEMENT OF GRANTOR(S):
} S,S
On
before me,
, personally appeared
personally known to me (or proved to me on the baSIS of satisfactory evidence) to be the person(s) whose name(s) is/are subSCribed
to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capaclty(ies), and that
by his/her/their signature(s) on the instrument the person(s) , or the entity on behalf of which person(s) acted, executed the instrument.
wITNESS my hand and official seal.
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Signature
EXHIBIT "2"