HomeMy WebLinkAbout16-Development Services
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: JAMES FUNK, Director
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Subject: Authorization to advertise a Notice
Inviting Bids for the sale of three City owned
parcels located north and south of Orange Show
Road, west of Waterman Avenue.
Dept: Development Services
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Date: January 7, 2003
File No. 15.05-223
Synopsis of Previous Council Action: MCC Date: 0112112003
02-20-2001- Resolution No. 2001-35 was adopted establishing fair market value and giving notice
inviting bids for the sale of four City owned parcels located north and south of Orange Show Road, west
of Waterman Avenue.
03-04-2002 - Resolution No. 2002-69 was adopted confirming fair market value and giving notice inviting
competitive sealed and oral bids for the sale of City owned property located at the southwest corner of
Orange Show Road and Waterman Avenue and setting the date and time of April 15, 2002,10:00 a.m. for
awarding a bid.
06-17-2002 - Resolution No. 2002-163 was adopted modifying fair market value for City parcel located at
the southwest corner of Orange Show Road and Waterman Avenue
09-23-02 - Public hearing was continued to 10/7/2003
10-07-02- Public Hearing was closed; no oral bids were submitted. Director of Development Services was
authorized to transfer parcels- to the Redevelopment Agency.
Recommended Motion:
That the Director of Development Services be authorized to advertise a Notice Inviting Bids for the sale of
three City owned parcels located north and south of Orange Show Road, west of Waterman Avenue (Parcel
One: APN 0136-431-34; Parcel Two: APN 0136-431-35; Parcel Three: APN 0136-441-26).
Contact person: LASZLO "Les" FOGASSY
Supporting data attached: Staff Report, Maps.
FUNDING REQUIREMENTS: Amount: None
Source: (Acct. No.) N/A
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, James Funk I ~ -
Phone: 5026
Ward:
3
(Acct. Description) N/A
Finance:
Council Notes:
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Agenda Item No. I {p
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
SUBJECT:
Authorization to advertise a Notice Inviting Bids for the sale of three City owned parcels located north
and south of Orange Show Road, west of W aterman Avenue..
BACKGROUND:
On August 7, 2000, Resolution No. 2000-235 was adopted, establishing the right of way boundaries for
Orange Show Road between Waterman Avenue and the Twin Creek Flood Control Channel, relative to
the extension of Orange Show Road from Arrowhead Avenue to Tippecanoe A venue. As a result of the
fee acquisition of various parcels between Waterman Avenue and the Twin Creek Flood Control
Channel (the remainder of Orange Show Road extension was acquired as easements), four remnant
parcels remained. Staff was authorized to secure an appraisal on these parcels. The appraised values
were $41,000 for parcell ($2.50 per square foot), $32,000 for Parcel 2 ($2.00 per square foot),
$175,000 for Parcel 3 ($4.00 per square foot) and $17,000 for Parcel 4 ($1.00 per square foot). The City
paid an average of$2.75 per square foot for these parcels in 1996. On February 20, 2001, Resolution
No. 2001-35 was adopted, setting the fair market value for the four parcels and giving Notice Inviting
Bids, with bids due by March 20, 200 I. Only one bid was submitted for the parcel located on the
northwest corner of Orange Show Road and Washington Avenue (Parcel 4). The bid was approved on
April 16, 200 I, and sale of that parcel has been completed.
On April 16, 2001, staff was authorized to re-advertise a Notice Inviting Bids and market the remaining
parcels through a real estate broker. Prior to contracting with a broker, it was decided that a Phase I
Environmental Assessment would need to be prepared. The Environmental Assessment was completed
in November, 2001 and there were no negative environmental impacts noted. On March 4, 2002,
Resolution No. 2002-69 was adopted, confirming the fair market value amount of $175,000 and giving
Notice Inviting Bids. No bids were submitted and staff was authorized to re-advertise for bids for this
parcel and two additional parcels as shown on the attached map.
The original appraisal on Parcel 3 was based on the assumption that the property could be developed
commercially although the land use designation is light industrial. However, after obtaining several
months of experience with the site and observing that the property is only capable of being developed
with "right-in and right-out" access from Orange Show road, the site is now acknowledged by the
appraiser to have limited value for retail development. After unsuccessfully attempting to sell this
property on two occasions, it was staffs opinion that the site would be better suited for light industrial
development and should be appraised as zoned (light industrial and office industrial/professional) rather
than appraised as potentially a retail/commercial site. An updated appraisal was obtained from the
original appraiser, based upon the existing land use designation of light industrial and office
industrial/professional. The appraisal amount based on the existing zoning of the site was determined to
be $132,000 ($3.00 per square foot) by Smothers Appraisal. On June 17,2002, Resolution No. 2002-163
was adopted establishing the fair market value for Parcel 2 at the revised appraisal amount of $132, 000.
A Notice Inviting Bids was published in the Sun newspaper and several bid packages were sent out to
interested parties. The bid opening was scheduled for August 21, 2002. However, no written bids were
submitted. In addition to written bids, the established procedures provide for oral bids to be accepted.
There has been some indication from one of the developers who had previously shown interest in the
property that an oral bid may be presented. Details and terms of the bid will be presented at the time the
bid is made.
Staff Report- continued
The Redevelopment Agency had indicated that in the event that no bids are submitted, the property
could be marketed through the Agency. Since no bids were submitted at the public hearing on
September 23, 2002, and at the continued hearing on October 7, 2002, authorization was given to initiate
transfer of the property to the Redevelopment Agency. This recommendation was based on the
assumption that the Agency would be better suited to work with developers for the sale of these parcels.
The Agency recently received two written offers and on verbal offer for parcel three. All bids were
below the fair market value established and the City Attorney's Office had advised that the property
could only be transferred to the Agency at the established fair market value and the Agency could not
accept any bids since the property had not yet been transferred. It was thus recommended that the City
once again advertise for bids.
If authorization is given, a Notice Inviting Bids for the sale of the three parcels will be published in the
Sun newspaper and the results of bids submitted will be brought forth at a future Council Meeting for
consideration.
FINANCIAL IMPACT:
Revenue in the amount of at least $205,000 (Parcel One - $41,000; Parcel Two- $32,000; Parcel Three-
$132,000) less closing costs if a successful bids accepted for all three parcels.
RECOMMENDA nON:
Authorize the Director of Development Services to re-advertise Notice Inviting Bids for the sale of three
City parcels.
No Scale
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LOCA TION OF
CITY OWNED PARCELS
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VICINITY MAP
EXHIBIT "1"
CITY OF SAN BERNARDINO
DEVELOPMENT SERVICES DEPARTMENT
REAL PROPERTY SECTION
SALE OF CITY OWNED PARCELS -
NORTH AND SOUTH OF ORANGE
SHOW ROAD, WEST OF WATERMAN
A VENUE
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Created by: L. Foqo::>::>y Date: 10//9/200/
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