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ORIGINAL
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Date: July 21, 2005
Subject: Resolution Authorizing Execution of
an Agreement and Grant Deed -- Sale of City
Water Department Property located at the
Southeast comer of Mac Kay Drive and "D"
Street.
From: JAMES FUNK, Director
Dept: Development Services
File No.15.05-24l
MCC Date: 08/15/2005
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. 2005-117 was adopted establishing the fair market value at $130,000.00 and
Notice Inviting Bids for the parcel located on the Southeast comer of Mac Kay Drive and "D" Street was
approved.
06-08-2005 - One written bid received for $160,000.00, all CASH terms, from David E. Mlynarski /
Mapco for the sale of City property located on the Southeast comer of Mac Kay Drive and "D" Street.
07-05-2005 - Bid awarded to David E. Mlynarski / Mapco in the amount of $160,000.00 for the sale of
City property located at the Southeast comer of Mac Kay Drive and "D" Street.
Recommended Motion:
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Adopt Resolution
Contact person: GLORIA J. PEDERSEN
Staff Report, Map,
Supporting data attached: Resolution
Phone: 5226
Ward:
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FUNDING REQUIREMENTS: Amount:
Closing Costs To Be Paid From Proceeds Of Sale
(amount to be determined)
Source: (Acct. No.) 001-000-4925-0000
(Acct. Description)
Sale of Misc. Property
Finance:
Council Notes:
II,sIDS--
Agenda Item No. /3
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
SUBJECT:
Resolution authorizing execution of an Agreement and Grant Deed - Sale of City Water Department
property located at the Southeast comer of Mac Kay Drive and "D" Street.
BACKGROUND:
The subject property consists of one parcel located at the Southeast comer of Mac Kay Drive and "D"
Street and is 0.7H acres (or 33,54U: square feet). This Parcel was acquired by the Water Department in
1990 for the purchase price of$127,00.00 (One Hundred Twenty Seven Thousand Dollars). On July 27,
2004 the Board of Water Commissioners declared this property as surlus and authorized its sale. The
Parcel was appraised for $130,000.00 (One Hundred Thirty Thousand Dollars) or $3.90 a square foot. It
is zoned CG-l (Commercial General).
On April 4, 2005 authorization to proceed with the sale of City Water Department property was given by
the Mayor and Common Council. On AprilS, 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 known by any City Department.
On May 16, 2005, Resolution No. 2005-117 was adopted, establishing the fair market value of this
property at $130,000.00 (One Hundred Thirty Thousand Dollars) and also authorized the advertising of
a Notice Inviting Bids in the Sun newspaper.
On June 8, 2005 one written bid was received from David Mlynarski / Mapco in the amount of
$160,000.00 (One Hundred Sixty Thousand Dollars) and was accompanied by the required 10% bid
deposit of$16,000.00 (Sixteen Thousand Dollars). It was an all CASH offer payable 60 days after the
close of escrow.
On July 5, 2005, with the absence of oral bids, the bid of $160,000.00 (One Hundred Sixty Thousand
Dollars) was awarded to David Mlynarski / Mapco. The attached Resolution authorizes the execution of
a Sales and Purchase Agreement and Grant Deed relative to the sale of this property. Upon approval
and execution, the documents will be placed into escrow. The closing costs will be split between the
City and the Buyer, as is customary.
Since this property is owned by the City of San Bernardino on behalf of the Water Department, all sales
proceeds will be transferred to the Water Department, less costs. Additionally, the City will receive
10% (ten percent) of the sales proceeds pursuant to the City Charter.
FINANCIAL IMPACT:
Sale proceeds of $160,000.00 (One Hundred Sixty Thousand Dollars will be proportioned as follows:
$16,000.000 (Sixteen Thousand Dollars), less proportionate closing costs, will go to the City. The
remainder of$144,000.00 (One Hundred Forty Four Thousand Dollars), less proportionate closing costs,
will be transferred to the Water Department.
RECOMMENDATION:
Adopt Resolution.
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RESOLUTION OF THE CITY OF SAN BERNARDINO DIRECTING AND
3 AUTHORIZING THE EXECUTION OF A SALES AND PURCHASE AGREEMENT
AND THE EXECUTION OF A GRANT DEED FOR THE SALE OF CITY PROPERTY
4 GENERALLY LOCATED ON THE SOUTHEAST CORNER OF MAC KAY DRIVE
5 AND "D" STREET IN THE CITY OF SAN BERNARDINO.
RESOLUTION NO. t ~ IPY
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
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9 and authorized to execute on behalf of said City, a Sales and Purchase Agreement, a copy
SECTION 1. That the Mayor of the City of San Bernardino is hereby directed
10 of which is attached hereto as Exhibit "A" and a Grant Deed, a copy of which is attached
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hereto as Exhibit "B", for the sale of certain City property located on the Southeast comer
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of Mac Kay Drive and "D" Street, in said City and more fully described in detail in said
Exhibit "A" and said Exhibit "B".
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15 SECTION 2. That the amount of $160,000.00 (One Hundred Sixty Thousand
16 Dollars), from the sale proceeds of less closing costs, be transferred to the Water
17 Department upon the close of escrow.
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SECTION 3. Said Agreement shall be null and void if either party fails to
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execute the Agreement within sixty (60) days of the date of adoption of this Resolution.
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07/20/05
1 RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT AND GRANT DEED FOR SALE OF
CITY PROPERTY LOCATED AT THE SOUTHEASTCORNER OF MAC KAY DRIVE AND "D"
2 STREET.
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I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common
5 Council of the City of San Bernardino at a
meeting thereof held on
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20 The foregoing resolution is hereby approved this
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6 the
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day of
, 20_, by the following vote, to wit:
Council Members: AYES
NAYES
ABSTAIN ABSENT
ESTRADA
LONGVILLE
MCGINNIS
DERRY
KELLEY
JOHNSON
MCCAMMACK
City Clerk
day of
,20 .
JUDITH V ALLES, Mayor
City of San Bernardino
Approved as to form
and legal content:
JAMES F. PENMAN
City Attorney
By:
07/20/05
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EXHIBIT "A"
SALES AND PURCHASE AGREEMENT
This Agreement ("AGREEMENT") is made and entered into this day of
2005, by and between the CITY OF SAN BERNARDINO, a municipal corporation ("SELLER") and
DAVID E. ML YNARSKI ("BUYER") for the sale of City owned property ("PROPERTY").
PROPERTY to be sold is generally located at the Southeast comer of Mac Kay Drive and "D" Street, in
the City of San Bernardino, State of California and is more fully described in Exhibit "A" 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 of approximately 0.771:. acres of vacant land and is designated "CG"
(Commercial General).
3. Parties shall enter into Escrow with First American Title Insurance Company, 323 West Court
Street, San Bernardino, California, 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 $160,000.00 (One Hundred Sixty Thousand Dollars).
SELLER hereby acknowledges that BUYER has deposited with SELLER, the amount of$16,000.00
(Sixteen Thousand Dollars) which SELLER shall deposit into Escrow toward said purchase price.
5. SELLER SHALL:
A. Pay one-half of all Escrow fees, recording fees and any closing costs incurred in this transaction.
B. Deliver an executed Grant Deed to Escrow #2006690 at First American Title Insurance
Company, 323 West Court Street, San Bernardino, California.
C. 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 title to PROPERTY, subject to the permitted
exceptions. SELLER shall pay the premium for and charges related to the issuance of the
owner's title policy.
6. BUYER SHALL:
A. Pay the SELLER the sum of$160,000.00 (One Hundred Sixty Thousand Dollars) cash, to be
deposited into Escrow, less said deposit of$16,000.00 (Sixteen Thousand Dollars), for the
property.
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SALES AND PURCHASE AGREEMENT - Southeast corner of Mac Kay Drive and "D" Street.
B. PROPERTY interest will be 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 and/or rights of way over said land for public or quasi-public utility or public
street purposes.
C. BUYER shall have the right to review the condition of title in Escrow and its obligations shall
be subject to its approval of the condition of title as provided therein.
D. Pay one-half of all Escrow, recording and any closing costs incurred in this transaction.
E. 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 a right to terminate this AGREEMENT by giving BUYER written 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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SALES AND PURCHASE AGREEMENT - Southeast corner of Mac Kay Drive and "D" Street.
IN WITNESS WHEREOF, the parties have executed this Agreement the day and year as first written
above.
NO OBLIGATION OTHER THAN THOSE SET FORTH HEREIN WILL BE RECOGNIZED.
BUYER:
SELLER:
CITY OF SAN BERNARDINO
By:
DAVID E. ML YNARSKI
JUDITH V ALLES, Mayor
Approved as to form
and legal content:
ATTEST:
JAMES F. PENMAN,
City Attorney
RACHEL CLARK, City Clerk
By:
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RECORDING REQUESTED BY:
AND WHEN RECORDED MAIL THIS DEED AND,
UNLESS OTHERWISE SHOWN. MAIL TAX
STATEMENTS TO:
David E. Mlynarski
Mapco
413 Mac Kay Drive
P.O. Box 5822
San Bernardino, CA 92412
Escrow No.: 2006690
APN: 0141-311-21
SPACE ABOVE FOR RECORDER'S USE
GRANT DEED
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, The CITY OF
SAN BERNARDINO, a municipal corporation, hereby grants to DAVID E. ML YNARSKI, the real
property in the City of San Bernardino, County of San Bernardino, State of California, described as follows:
Parcel 6 of Parcel Map No. 5333, in the County of San Bernardino, State of California, as per plat recorded in
Book 50 of Parcel Maps, Pages 96, 97 and 98, records of said
CITY OF SAN BERNARDINO,
a municipal corporation
Dated:
By:
JUDITH V ALLES, Mayor
ACKNOWLEDGEMENT OF GRANTOR(S):
STATE OF CALIFORNIA
COUNTY OF
} 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 hislher/their authorized capacity(ies), and that
by hislher/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.
:)lgnature
EXHIBIT "B"