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Home My WebLink About14-Development Services CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: JAMES FUNK, Director Subject: Acceptance of oral bids: 4:00 P.M. - and awarding of bids for sale of City parcels located north and south of Orange Show Road, west of Waterman Avenue. Dept: Development Services 0 RIG I N A L Date: March 12,2003 File No. 15.05-223 Synopsis of Previous Council Action: MCC Date: 03/17/2003 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 comer of Orange Show Road and Waterman A venue 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. 01-21-03 - Authorization was given to advertise for bids for three City owned parcels located north and south of Orange Show Road, west of W aterman Avenue. Recommended Motion: 1. Close the public hearing and accept highest bids submitted; AND 2. That the cash bid in the amount of$42,711.00 from William J. Doherty for Parcel One be approved; OR 3. That the oral bid (if any) in the amount of$ from_ for Parcel One be approved; AND 4. That the oral bid (if any) in the amount of $ from_ for Parcel Two be approved; AND 5. That the bid amount of $140,000.00, with the terms noted in the attached Staff Report, from Charlie Klinakis for Parcel Three be approved; OR 6. That the cash bid amount of$134,711.00 from William J. Doherty for Parcel Three be approved; OR 7. That the oral bid (if any) in the amount of$ from_ for Parcel Three be approved. ~~ \:J James Funk Contact person: LASZLO "Les" FOGASSY Supporting data attached: Staff Report, Maps. FUNDING REQUIREMENTS: Amount: None Source: (Acct. No.) N1A Phone: 5026 Ward: 3 (Acct. Description) N/A Finance: 3/illLa- Agenda Item NO.~ej)j~ Council Notes: CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report SUBJECT: Acceptance of oral bids: 4:00 P.M. - and awarding of bids for sale of City parcels located north and south of Orange Show Road, west of Waterman 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 Avenue. 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 Parcel One ($2.50 per square foot), $32,000 for Parcel Two ($2.00 per square foot), $175,000 for Parcel Three ($4.00 per square foot) and $17,000 for Parcel Four ($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, 2001. Only one bid was submitted for the parcel located on the northwest corner of Orange Show Road and Washington Avenue (Parcel Four). The bid was approved on April 16, 2001, 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 June 17,2002, Resolution No. 2002-163 was adopted establishing the fair market value for Parcel Three 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. 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. Staff Report- continued On January 21,2003, staff was authorized to advertise for bids for the three parcels. Bid opening was held on February 20, 2003. One bid was received for Parcel One and two bids were received for Parcel Three. No bids were submitted for Parcel Two. All bids submitted were accompanied by the required minimum 10% bid deposit. Copies of the bid forms are attached for reference. A summary as follows: Bid Amount Submitted by: Terms Parcel One: $ 42,711.00 Robbins & Associates on behalf of William J. Doherty All Cash Parcel Two: N/A Parcel Three: $134,711.00 Robbins & Associates on behalf of William J. Doherty All Cash $140,000.00 John Lommel on behalf of Charlie Klinakis $40,000 down. Balance carried on a five year note @ 6% per annum; monthly payments of$1933.29. Two bids were received for Parcel Three. Either appear to be acceptable, depending on a persons perspective /opinion as to the value and/or desirability of cash in comparison to a somewhat higher dollar bid with terms, including interest. The bids for Parcel Three include a bid from Charlie Klinakis, in the amount of$140,000, with terms; and a bid from William Doherty in the cash amount of $134,711.00. Regarding the Klinakis bid, the additional amount added for future interest over a term of five years, represents a total of$155,997.40. The bidder has not requested a subordination of the proposed note and deed of trust; thus the City would be a first mortgage holder. Current procedures also allow for oral bids to be made. Pursuant to Resolution No. 82-497, relating to the disposition of real property, the minimum oral bid must be at least 10% higher then the highest bid and subsequent bids must be in increments of $1 00 each. In the absence of oral bids, staff is recommending the sole bid of$42,711 for Parcel One and the bid of$140,000 for Parcel Three be determined to represent the highest bids. Upon approval of highest bids, staff will prepare Sales/Purchase Agreements to be presented at a future Council meeting. FINANCIAL IMPACT: Revenue in the amount of at least $177,422 (Parcel One - $42,711; Parcel Three- $134,711 plus interest). RECOMMENDATION: Close the public hearing and accept highest bids submitted. Na Scale Highland Ave. LOCA TION OF CITY OWNED PARCELS o ~ E ~ ~ I) ~ ~ 0 9th St ~ ... c c ~ ~ 5th 51. Mill 51. . o c o u . Orange Show Rd. ~ ;= " . o VICINITY MAP EXHIBIT "1" CITY OF SAN BERNARDINO DEVELOPMENT SERVICES DEPARTMENT REAL PROPERTY SECTION SALE OF CI TY OWN ED PARCELS - NORTH AND SOUTH OF ORANGE SHOW ROAD, WEST OF WATERMAN A VEN U E ~ indicates un-incorporated areas ~ within City's Sphere of Influence Created by: L. Foq(j~x>y Date: /0//9/2001 I o ~ o r+ I i --------T- 3 n N3^ 'v' -------t----- N\fV\J~ 31'v' M --- U) :::l (I) .c ~ ..... c ~ ~ 0 - .c (I) U) (f) ! ~ >- :2 ! ctl t 0::: I Cl Q) <( i 0.. f- LL i n 0 w .... w i r- 0.. a:: f- ~ S ~ "0 III U OJ ~" Q) ! 0 N ! I C I 0::: I- ~ i I- en"'- m 0 i >- :2 >- i ..... i W () ---.J i ---.J III <( Z > Z w .(1) c:: o ! I i i I;:? i-' I i L ----t------+-------- i ---3tlN:3^'v' W j 19 ! Z ! <.( ! 0:: I .7t 0 o ~ +1 +1 +1 +1 :::::::::-= . . . ci- III -0 III en 10......0)1() NC')C')Ol N~CO~ cs;ics;iC"icD ~..-~,....., - (I) ~ ctl Cl ---- so~V' - (I) ~ ~ CJ Q) Q) 0 ~ C:~.c o I- I- ". ----.I Q)Q)Q):o:( uuut-.; .........0 t1J t1J t1J a..a..a...... o(/)Z ZWa Cu- -~ a:::>U <(o::w ZW(/) a:::(/)>- W~~ mZO:: ZWw <(~a... a... a C') en N u.. a 0:: ~ O .....J a... C! w .....J~ >-><(0 ~ w Wz C300::~ o ZLL <(0 C\I - ....... .- ..c J: I- .- I- (f) .c O:::W X 03 W Z _ >- 0 . .~ \ I-<(w ~:l O:::O~ wO:::z ~ 0.. w, 05:<(>.. 0:::0 ~ o..J:z~ (f)<( 8w:2 zoO::: 3zW 0<{1- 0:::<( >-05: I- -LL Uo LLJ: 01- w~ ---.Jo <{(f) (f) .. >. >'.0 .0-0 -0 Q) Q) ~ ..... U t1J Q) ~ .c UU CITY OF SAN BERNARDINO REAL PROPERTY SECTION OFFICIAL BID FORM - SALE OF REAL PROPERTY LOCATION OF PROPERTY BEING SOLD: PARCEL ONE: VACANT LAND ON THE NORTH SIDE OF ORANGE SHOW ROAD, EAST OF AMOS A VENUE (A PORTION OF APN 0136-431-34) In compliance with Specification No. 15.05-223B, concerning the sale of the above City-owned property, the following bid is submitted: Dollars ($ ~2 711. 00 . ), payable as follows: $ A~ ~ASH N/~ to be deposited into escrow prior to close of escrow, and the balance to be paid as follows: [] annual [] monthly payment(s) of $ tV"A- , plus interest at the rate of _lS/A. % per annum 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. 15.05-223B and that I understand the subject property is being sold in an "AS-IS" condition. W IL IJ 4/"'/ .J. "7)0/.:/.IC(., T/, PRINTED NAME OF BIDDER /ji"o~ ?"c4CoC/c /u//c~ MAILING ADDRESS t'd~ J &~ SIGNATURE //$/ syy,,7779 TELEPHONE NO. ~4 4N,d Cd 9'.z..:;;V.s- CITY, STATE, ZIP CODE Sealed bids, submitted on this official Bid Form, will be received until 2:00 p.m., February 20, 2003, 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 INFORMATION ON THE LOWER LEFT-HAND OF THE BID ENVELOPE: SEALED BID SALE OF CITY PROPERTY SPECIFICATION NO. lS.0S-223B PARCEL ONE EXHIBIT 6-A CITY OF SAN BERNARDINO REAL PROPERTY SECTION OFFICIAL BID FORM - SALE OF REAL PROPERTY LOCATION OF PROPERTY BEING SOLD: PARCEL THREE: VACANT LAND ON THE SOUTH SIDE OF ORANGE SHOW ROAD, WEST OF WATERMAN A VENUE (A PORTION OFAPN 0136-431-23) In compliance with Specification No. 15.05-223B, concerning the sale of the above City-owned property, the following bid is submitted: BID TOTAL PRICE $140,000.00 -- ---_.-- ~- One hundred forty thousand $ I 40,000,00 Dollars ($ $140,000,00 ), payable as follows: $ $40,000.00 to be deposited into escrow prior $OClose ~f escrow, and the balance to be paid as follows: $] 00,000,00 [] annual J( monthly payment(s) of$ $1933.29 to include interest at the rate of - (six) 6 % per annum on the unpaid balance. (Secured Note)' of()ne hun~~t!housand dollar.; amortized in 5 (five year.; ) payment $1933.29 ./ Attached is a cashier's check payable to the CITY OF SAN BERNARDINO, in an amount equal to at least ten percent (10%) of the above bid, which ( understand will be returned without interest if( am not the successful bidder as determined by the Mayor and Common Council of the City of San Bernardino. Submission of this bid signifies that I understand and concur with the provisions outlined in Specification No. 15.05-223B and that I understand the subject property is being sold in an "AS-IS" condition. PRINTED NAME OF BIDDER SIGNATURE Charlie Klinakis {!Ac.14, ~ MAILING ADDRESS TELEPHONE NO. 15913 OLD VALLEY BLVD. (626) 961-9113. Fax (626) 333-0978 CITY, STATE. ZIP CODE LA PUENTE, CALIFORNIA 91744 Sealed bids, submitted on this official Bid Form, will be received until 2:00 p.m., February 20, 2003, in the Real Property Section, Development Services Department, 3rd Floor, City Hall, 300 N. "D" Street, San Bernardino, California, 92418, at which time they will be publicly opened, examined and declared. NOTE: BIDS WILL NOT BE ACCEPTED UNLESS ALL BLANKS HAVE BEEN FILLED IN. ALL SEALED BIDS MUST HAVE THE FOLLOWING INFORMATION ON THE LOWER LEFT-HAND OF THE BID ENVELOPE: SEALED BID SALE OF CITY PROPERTY SPECIFICATION NO. 15.05-2238 PARCEL THREE T"~TTTnTrr r ... CITY OF SAN BERNARDINO REAL PROPERTY SECTION OFFICIAL BID FORM - SALE OF REAL PROPERTY LOCATION OF PROPERTY BEING SOLD: PARCEL THREE: VACANT LAND ON THE SOUTH SIDE OF ORANGE SHOW ROAD, WEST OF WATERMAN A VENUE (A PORTION OF APN .0136-431-23) In compliance with Specification No. 15.D5-223B, concerning the sale of the above City-owned property, the following bid is submitted: Dollars ($ I~J 711. 00 ), payable as follows: $ and the balance to be paid as follows: ~ / ~ r interest at the rate of ~ A % per annum on the unpaid balance. ,4. &.A- (1 ~~ to be deposited into escrow prior to close of escrow, [] annual [] monthly payment(s) of $ ..../A - . plus Attached is a cashier's check payable to the CITY OF SAN BERNARDINO, in an amount equal to at least ten percent (1.0%) ofthe 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.D5-223B and that I understand the subject property is being sold in an "AS-IS" condition. WILLI/J1'd J. DO/JICI~..:P' PRINTED NAME OF BIDDER w~ J ADu-L.! SIGNATURE / 51;1,1, ? ./C/1 COc.,/" /-c/ / L. L- MAILING ADDRESS 7/Y ~ y-v- 77.7 ~ TELEPHONE NO. S;4#~~ 4N~ C '" CITY, STATE, ZIP CODE 9 2. 7".,s- Sealed bids, submitted on this official Bid Form, will be received until 2:.0.0 p.m., February 2.0, 2.0.03, in the Real Property Section, Development Services Department, 3rd Floor, City Hall, 3.0.0 N. "D" 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 INFORMATION ON THE LOWER LEFT-HAND OF THE BID ENVELOPE: SEALED BID SALE OF CITY PROPERTY SPECIFICATION NO. 15.05-2238 PARCEL THREE EXHIBIT 6-C