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Home My WebLink About22-Development Services ~<'= q ~ " .~.. n ~ ",."'>",,~p,,c," ,~ ....~ ,~, . . , CITY OF SAN.BERNARDINO - REQUEST FOR COUNCIL A2>>!~'NAL From: JAMES FUNK, Director Subject: Oral Bids: 4 p.m. and Awarding of Bid -- Sale of City Water Department Property located at the Northeast comer of Pine & Belmont Avenues<&Southeast comer ofObio & Pine Avenues. Dept: Development Services Date: June 14,2005 File No. 15.05-242 MCC Date: 07/05/2005 Synopsis of Previous Council Action: 04-04-2005 - Authorization to Proceed with the sale of City Water Department property was approved. 05-16-2005 - Resolution No. 2005-116 was adopted establishing the fair market value of both parcels at $970,000. Notice Inviting Bids for the two parcels on the Northeast comer of Pine & Belmont Avenues and the Southeast comer ofObio & Pine Avenues was also approved. Recommended Motion: 1. That the hearing accepting oral bids for the sale of City and Water Department property, as per Bid Specification No. 15.05-242, be closed. AND 2. That the bid amount of$I,OOO,OOO.OO (One Million Dollars) be awarded to J. R. Watson & Associates Development Company for Parcell and Parcel 2, (APN: 0261-101-15, 16 & 17). OR be awarded to 3. That the oral bid amount of$ (APN 0261-101-15. 16 & 17). for Parcel 1 & 2 ~~ V James Funk Contact person: GLORIA J. PEDERSEN Staff Report, Map Supporting data attached: Bid Forms, Letters Phone: 5226 Ward: 5 FUNDING REQUIREMENTS: Amount: Closing Costs To Be Paid From Proceeds Of Sale (Tlnknown At This Time) Source: (Acct. No.) 001-000-4925-0000 (Acct. Description) Sale of Misc. Prooertv Finance: Council Notes: 7lff!' Agenda Item No. - - -,-, ,,- ,-" ,- " , " "' "T--- ---' "-''''''''-------~'''---~-T--'-~--='"-''-oc-'''-1t''c''-,- ""'~"""'I'<'" " . . CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report SUBJECT: Oral Bids: 4 p.m. and Awarding of Bid -- Sale of City and Water Department Property located on the Northeast comer of Pine and Belmont Avenues and the Southeast comer of Ohio and Pine Avenues. BACKGROUND: On April 4, 2005 authorization to proceed with the sale of City Water Department property located on the Northeast comer of Pine and Belmont Avenues and the Southeast comer of Ohio and Pine A venues was given by the Mayor and Common Council. On April 5, 2005 notice was sent to all City Departments that this City- owned property had been declared surplus. No conflicts or objections to the proposed sale were made knowby any City Department. On May 16 2005, Resolution No. 2005-116 was adopted, establishing the fair market value of Parcel 1 and Parcel 2 at $970,000 and also authorized the advertising of a Notice Inviting Bids for these two City-owned parcels. The deadline for submitting bids was June 8, 2005. Two bids were received. Bid #1 is from J. R. Watson & Associates Development Company and is for $1,000,000.00 (1 Million dollars). The bidder paid the required ten percent deposit of $100,000.00 (One Hundred Thousand Dollars) in the form of a Cashier's Check. 1'erms are for the balance of $900,000.00 (Nine Hundred Thousand Dollars) to be paid within 3 years after the close of escrow, or 75 days after building permits to construct residences on the property are issued, whichever occurs first. Semi-annual interest payments at 5% per annum will be made until the balance is paid. This would amount to a payment of $22,500 (Twenty Two Thousand Five Hundred Dollars (approximately) every six months up to 3 years. (See attached Bid Form and original letter of offer explaining terms). Bernie Kersey, General Manager of the Water Department, requested that J. R. Watson & Associates revise their terms to reflect that the remaining balance of $900,000.00 (Nine Hundred Thousand Dollars) be paid in two years or as soon after the recording of the final map as possible, whichever occurs first. The semi-annual interest payment at 5% per annum would remain the same. (See attached letter amending terms). Bid #2 is from G.F R. Enterprises, Inc. and is for $970,00.00 (Nine Hundred Seventy Thousand Dollars). The bidder paid the required ten percent deposit of $97,000.00 (Nine Hundred Seventy Thousand Dollars) in the form of a Cashier's Check. Terms are for the balance of $873,000.00 (Eight Hundred Seventy Three Thousand Dollars) to be paid in annual payments of $53,380.00 (Fifty Three Thousand Three Hundred Eighty Dollars) at 6% interest per annum (see attached Bid Form). Attached also is a map showing the location of the two parcels. The apparent high bidder is J. R. Watson & Associates Development Company. However, procedures for the sale of property have provisions for accepting oral bids. Oral bids, if any, must be received in at least $100 ~T"'''''''L'''' r . . "-"~'P'~" ' ,,~. " '," "~ " CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report - Continued increments for the outright purchase of the property, provided that the initial oral bid shall be an amount not less than the highest sealed bid plus 10%. Thus, the minimum opening oral bid must be at least $1,100,000.00 (One Million One Hundred Thousand Dollars). The successful bidaer-is required to make a non-refundable deposit with the City Clerk in the form of a Cashier's check, prior to the end of the meeting or within 2 hours of awarding the bid, whichever shall occur later, in an amount equal to 10% of the bid amount. FINANCIAL IMPACT: All costs relative to this sale (staff time, escrow, title and closing costs, etc.) will be paid for from the sale proceeds. Ten percent of the sale proceeds to the Water Department may be transferred to the City. RECOMMENDATION: Staff recommends that the hearing on oral bids be closed and, in the absence of a higher oral bid, the bid for Parcell & Parcel 2 be awarded to J .R. Watson & Associates Development Company. :r,.~'~~,<=m,.....~'-'" ~ ~ ~~~ --,,, ,~ ~-~~'_. ~, I':l ~R1l7f'O"-'-'- '~~'~~~~~--7='''1r' r -- CITY OF SAN BERNARDINO REAL PROPERTY SECTION OFFICIAL BID FORM - SALE OF REAL PROPERTY . LOCATION OF PROPERTY BEING SOLD: VACANT LAND ON THE NORTHEAST COR.'-'ER OF PINE AND BELMONT .At. VE~1:ES Al'O SOUTHEAST CORNER OF OHIO AND PrNE .At. VENUES _, PER SPECIFICA nON NO. 1505-242 In compliance \\;th Specification No. 15.05-242, concerning the sale of the abo\e Cil)'-O\\l1ed propell)'. the lollo\\"ing bid IS sub nUlled: One Million and 00/100 100,000.00 Dollars ($ 1,000,000.00 ). payable as follo\\'5: S to be deposlled into escrow pnor 10 close of escrow. and the balance to be paid as follows: [] a,u,YGl _ 900,000.00 [] ,"unlI,I, t'alll1""lIl{~} uf), . plus inlerest at.the, rjlle of five o/~peraMuQ\ontheul\Paldbalancepayable semi-annually~ interest c:>r: wltnln 3 years arcer c~ose or escrow or 15 days after bUlldinq pefm~! cons~ruct resldences on ~ne propercy'are ssuea, wfilcnever occars lrs Anached is a cashier's check payable to the CITY OF SAN BERNARDrNO. in an amount equal II) at least ten percent (IOU,;,) Iy ~. to of the above bid, which I understand will be returned without interest if I am not the successful bidder as determined by the Mayor and t:'omrnon Council of the City of San Bernardino. Submission of this bid slgnilies that I understand and concur \\'Ith Ihe provisions outlined in Specification No. 15.05-242. and that I understand the subject property is being sold In an "AS-IS" condition. J.R. Watson & Associates Development Co. ~.~ ~ PRINTED NAME OF BIDDER SIGl'A T ~ 101 Main street, Suite A, PO Box 610 562. 0.0503 MAILING ADDRESS Seal Beach, CA 90740 TELEPHONE NO. CITY. STATE, ZIP CODE Sealed bids. submitted on this offiCial Bid Fonn, will be received until 2:00 P.M. June 8. 2005. In the Real Property Section. Oe\'e1oprnent Services Oepanment. 3rd Floor. CIl)' Hall. 300:\ "0" Street. San BernardinO. Cahfonua. 9~~ I S. at \\ hlCh lIIne they \\ iii be publicly opened. examined and declared. NOTE: BIDS WILL NOT BE ACCEPTED UNLESS ALL BLANKS HA VE BEE~ FILLED IN. ALL SEALED BIDS MUST HAVE THE FOLLOWING INFORMA nON ON THE LOWER LEFT-HAND CORNER OF THE BID ENVELOPE: SEALED BID SALE OF CITY PROPERTY SPECIFICATION NO. 15.05-242 Bid #1 =~==T ". .. -- .-.~ "~'~r" .. ~,.-'--~ . --... "1' ,.... .~.~._._, "~~'-"'="-""fw-,,,,,,,c~"""'" .'J0t/, . (t(J,il/"'I'J({J:~1 1.972-2002 Original Offer Letter & Terms June 7, 2005 WATSON & ASSOCIATES Laszlo "Les" Fogassy Real Property Supervisor Development Services Department, 3rd Floor City Hall 300 N. "D" Street San Bernardino, CA 92418 Subject: J.R. Watson & Associates Development Company's Bid to Purchase 13.72 acres of San Bernardino City Property Dear Mr. Fogassy: This letter accompanies l.R. Watson & Associates Development Company's formal bid to purchase City owned property located at the Northeast comer of Pine and Belmont A venues and the Southeast comer of Ohio and Pine Avenues. The bid is in the amount of One Million Dollars ($1,000,000.00). A cashier's check in the amount of One Hundred Thousand ($100,000.00) is enclosed with this bid and is to be used .as a down payment for the purchase price. The balance of the purchase price shall be secured by an interest only note and shall carry an annual interest rate of five percent (5%) simple interest to be paid semi-annually. The remaining balance of the purchase price shall be paid in full within 3 years after close of escrow, or 75 days after building permits to construct residences on the property are issued, whichever occurs first. On behalf of l.R. Watson & Associates Development Company, I thank you for your consideration. Sincerely, c+- ~ ~~les M. Sh:maker ~~_J~ ~_____.__. ----- cc: James R. Watson CharleS J. Diamond Enclosure: City National Bank cashiers check #: 972399743 101 Main Strc~t. Suite A · P.O. Box 610. Seal Beach. Califllrnia 90740 (562) 430.0503 · FoIX (56Z) 49.3-5860 . .. .li[~"j'I-V- r .11 -~~ ITilT r .... ~.- . .-.... D6-14~?DD5 D3:3ZPm Fra.-SHUMAKERSTECKBAUERWEINHART 30th. ,9.fmf.';~ l'JfVltJl Z13ZZ8Z875 T-ZI3 P.DDZ/DDZ F-344 '/.97:-.tOO:! Amended Letter & Terms June 14, 200S WATSON & ASSOCIATES Sent by Facsimile to (909) 384-5155 and U.S. Mail Las%lo "Les" Fogassy Real Propcrry Supervisor Development Services Department, 3M Floor City Hall 300 N. "D" Street San Bernardino, CA 92418 Subject Acccptance of reduced time frame to pay off remaining balance of bid Dear Mr. Fogassy: This lener revises J.R. Watson & Associates Development Company's formal bid to purchase City owned property located at the Northeast comer of Pine and Belmont Avenues and the Southeast comer oCOhio and Pine Avenues. J.R. Watson & Associates Development Company agrees to reduce the time frame for paying off the balance of the purchase price. The remaining balance of the purchase price shall be paid in full within two (2) years after close of escrow, or 30 days after recordation of a final tract map, whichever occurs first. All other tenus relating to the bid shall remain in effect. The bid was in the amount of One Million Dollars (SI,OOO,OOO.OO). A cashier's check in the amount of One Hundred Thousand ($100,000.00) was enclosed with the bid as a down payment for the purchase price. The balance oime purchase price shall be secured by an interest only note and shall carry an annual interest rate of five percent (5%) simple interest to be paid semi-annually. Should you have any questions or concerns, please feel free to contact me. Sincerely, ~"M.Sh~? -----. .- cc: James R. Watson Charles J. Diamond I tl l M;, i n :::i [ r"" t. Sui I" 1\ . P.O. B c,., (, I 0, S";I I U C i\ l: h, (::. J if" r II i:. Y I) 7 ~ I) ( ; 6 2 I ~ 3 U . U 5 I) 1 . F:. x (5 (, 2 I 4 L) 1 . ; ~ (i U j r w " t ~ \\ 11 <i1? j r \\ ~I [ :- l' n . t; ,,) .n . ", .. !' T 1 --- ", , , CITY OF SAN BERNARDINO REAL PROPERTY SECTION OFFICIAL BID FORM - SALE OF REAL PROPERTY LOCATION OF PROPERTY BEING SOLD: VACANT LAND ON THE NORTHEAST CORNER OF PINE AND BELMONT A VENVES AND SOUTHEAST COR.:~ER OF OHIO AND PINE A VENUES .'- PER SPECIFICATION NO. 15.05-242 In compliance with Specification No. 15.05-242, concerning the sale of the above City-owned propeny. the following bid is submined: Dollars ($ 9 7 "J c) D .;) l, 40 payable as follows: $ -, ~ D J ;:, to be deposited into escrow prior to close of ~scrow. and the balance to be paid as follows: 87J,0...; ~al [] monthly payment(s) of$ S ~ 3 K-.J . plus interest at the rate of .b % per aMum on the unpaid balance. Attached is a cashier's check payable to the CITY OF SAN BERNARDINO, in an amount equal to at least ten percent (10%) of the above bid, which I understand will be returned without interest if! am not the successful bidder as determined by the Mayor and Common Council of the City of San Bernardino. Submission of this bid signifies that I understand and concur with the provisions outlined in Specification No. 15.05-242. and that I understand the subject propeny is being sold in an "AS-IS" condition. ,- r:: {t. -r;""Clt;Ts.r ,...cr... r · PRINTED NAME OF BIDDER Y :! '-1. IV. ~,..,b /tJ-L MAILING ADDRESS &riM~ SIG 'AT E f YJ9.-f..,f-I'1 iJv TELEPHONE NO. -#.fy1.1JI>.o (') C -..",:. r- CI Y, STATE, ZIP CODE q,? 1('", Sealed bids, submitted on this official Bid Folll1, will be received until 2:00 P.M., June 8. 2005, in the Real Property Section. Development Services Department, 3rd Floor, City Hall, 300 N. "0" Street, San Bernardino, California. 92418. at which time they will be publicly opened, examined and declared. NOTE: BIDS WILL NOT BE ACCEPTED UNLESS ALL BLANKS HAVE BEEN FILLED IN. ALL SEALED BIDS MUST HAVE THE FOLLOWING INFORl\1A TlON ON THE LOWER LEFT-HAND CORNER OF THE JI~)l. ENVELOPE: SEALED BID SALE OF CITY PROPERTY SPECIFICATION NO. 15.05-242 Bid #2 ," ~'v~~..,",~-,.._,~." Revised Map - June I, 2005 For Bid Specifications 15.05-242 Pine & Belmont Ohio & Pine ---.-.. -C"l ~ ~ ;...- ~ - u v d ~ 0- ~ c.; 0- 't II" - ~ ... "'~ ~ ~ ~ .,;..? ~ ~ - ,~'" @" 4~ "h' '" ~ 4' 7.!>+t~ .> oi. -:t. @l 'lll! @~ ~ IS " \ " ~ 'I r @ 1 ; I @ ...- u 'C ~ . .. o ~ ..,.. d ~ d Q.. .- U .- 3 1: ~~ \\l- ed ~> ~-;) ",o\: JJ~ . .. t.!1 '! ~ ~(/) ~ sC)C\'''''' lo.I~~~..) ~~ Ie 010'......11: 1Il....;z) lOlIi ~ ~ ...... "-'. v. _ ... \0'" Q 0.- ~l: oil>> '-- 0\0 II~ 11 :lm . ~ -~ r:.: ~f'-"'"~ 17 "",- ,., - ORiGiNAL To: Common Council, City of San Bernardino From: Watson & Associates Charlie Shumaker Re: 14 Acres: Increase Bid to $1,275,000 Date: July 5, 2005 Attached: Site Plan Watson & Associates ("Watson") wishes to increase its earlier bid of $1 ,000,000. Watson's new bid is $1,275,000 as explained below. Watson will improve the land and create an adjacent park (estimated at 2.5 acres) containing trees, shrubs, meandering decomposed granite trails, 2 commissioned sculptures, benches, and a tot lot. The park will connect into the trail system leading to CSUSB at Pine Street and the existing Flood Control Levee. Watson is committed to working with the City and other stakeholders to implement trailheads and the contemplated proposed master trail plan for Verdemont Heights and the University District. In the future, Watson would like to improve the flood control area (to the east- labeled proposed future pocket park) with decomposed granite trails and drought tolerant native landscape. Maintenance costs of the park are proposed to be borne by residents of the new community through a City controlled LMD. The grant of rights from Watson to the City will cover approximately 40,000 square feet of the land being purchased by Watson, which is estimated to have a minimum value of $75,000. This will, therefore, increase the bid and Watson's commitment by an additional $75,000. The additional costs of the park will be borne by Watson as part of its purchase price. The obligation to construct the park will be incorporated into the conditions of approval of any map to be recorded against the property. In addition to the anticipated $50,000- $75,000 in park fees that will be paid to the City and is proposed to be used for the park, Watson is bidding and committing to an additional $200,000 to create the public park as described above. Watson will provide a certified statement of costs and improvements to the Park, Recreation and Community Services Director and the City Engineer for final verification and approval. Summing up the valuation of the 40,000 square foot grant of rights to the City ($75,000) with the costs borne by Watson to construct and improve the park ($200,000), Watson respectfully increases its bid from $1,000,000 to $1,275,000. Very truly yours, Charles Shumaker #~J- 7/5J{)~ The Trails at Pine Avenue ~...,.o.c...~c ..lIle"ulc'~.[ ~~ St: Shu~akcr, Stcckbauer VVATSON & ASSOCI ArES \7\T &Wcmhart July 5, 2005 LOST WEST ....,......f.......".. " The Trails at Pine Avenue #22- 7-5-0~ .'...,.OIfIiI.Cc.......rIO/l ~ Shumaker, Steckbauer &Weinhart LOST WEST LAr..OSCA.PE ARCHITfCTURE -"---~-~....., Entp.red into Record at ! / f;. ."cil/f;mvOevCms Mtg: 'I 5/05 ~~ .1 a It e m __ 1..2...- It- ~"Lh~ City Clerk/COC See, City of Sail Bernardino