HomeMy WebLinkAboutR35-Economic Development Agency
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ECONOMIC DEVELOPMENT AGENCY ORIGINAL
OF THE CITY OF SAN BERNARDINO
FROM: Maggie Pacheco
Executive Director
SUBJECT:
Hearing - Resolution of Public Interest and
Necessity for Acquisition of Real Property: 696
West st. Street, San Bernardino, California
DATE:
July 17, 2006
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Svnopsis of Previous Commission/CoupciVCommittee Action(s):
On February 7, 2005, the Community Development Commission ("Commission") authorized Staff to send out Owner
Participation notices to the property owners who own property in the proximity to the block bounded by 4", 5", "G" and "H"
Streets, the parcels on the north side of 5" Street between "G" and "H" Streets, the 4 parcels on the northeast comer of 5" and
"G" Streets and 6 parcels on the south side of 5" Street between "G" and "F" Streets in accordance with the adopted Agency
Owner Participation Rules for the Central City North Redevelopment Project Area. No proposals were received.
On November 7, 2005, the Commission adopted a Resolution: I) approving the Downtown Mixed Use Project Concept Plan
("Project") and adopting a Mitigated Negative Declaration for the Project in accordance with CEQA, and; 2) approving a
Redevelopment Project Study and Exclusive Right to Negotiate Agreement by and between the Agency and Watson and
Associates Development Company, Inc. ("Watson") relative to the implementation of the Project.
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Recommended Motion(s):
Open/Close Hearing
(Community Development Commission)
Resolution of the Community Development Commission of the City of San Bernardino declaring the Public
Interest and Necessity of Acquisition of Real Property by the Redevelopment Agency of the City of San
Bernardino for community redevelopment purposes over the property located at 696 West 5" Street, San
Bernardino, California (APN: 0134-061-21, 22, 25 and 30) in the Central City North Redevelopment Project
Area.
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Contact PersonCs):
Maggie Pacheco
Central City North
Redevelopment Project Area
Phone:
(909) 663-1044
Project Area(s)
Ward(s):
1
Supporting Data Attached: 0 Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letters
Approx.
FUNDING REQUIREMENTS Am t: 448,000 Source: Low/Mod Housing Bond Proceeds
SIGNATURE:
Budget Authority:
2005-2006 EDA Budj(et
J;,~~~" ~/~/~
Bar ara Lindseth, Admin. Services Director
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P:\Aaelldu\Comm Dev Commlulon\CDC 2006\07-24-06 RelQlutloll OrNKessUy - 696 West 5tb Street FIlial SR.doe Meeting Date: 07 n4/2006
Agenda Item Number: R.35"
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ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
HEARING - RESOLUTION OF PUBLIC INTEREST AND NECESSITY FOR ACQUISITION
OF REAL PROPERTY: 696 West 5th Street, SAN BERNARDINO, CALIFORNIA
BACKGROUND:
On November 7, 2005, the Community Development Commission ("Commission") approved the
Central City North Downtown Mixed Use Project Concept Plan ("Plan" or "Project") and the
Redevelopment Project Study and Exclusive Right to Negotiate Agreement ("Agreement") with
Watson & Associates Development Co., Inc. ("Developer"). Through the Plan and the CEQA
compliance that was undertaken as part of the Plan approval on November 7, 2005, the Agency will
acquire certain properties in an effort to encourage and effectuate the redevelopment of certain real
property ("Study Area") bounded by, 5th Street to the north, "G" Street on the east, "H" Street on the
west, and 4th Street on the south, including the north side of 5th Street between "H" Street and "G"
Street, the four (4) parcels at the northeast corner of 5th Street and "G" Street, and the six (6) parcels at
the southeast corner of 5th and "G" Street but excluding the new TELACU II Monte Vista Senior
Housing Complex.
The intent of the Plan is to eliminate blighted conditions, encourage economic development by
creating owner-occupied mixed use and mixed income housing (i.e., commercial on the ground floor,
residential on the upper floors) for those properties with frontage on 4th Street and 5th Street, with
townhouses located immediately south of the mixed use development on the south side of 5th Street
and on the west side of "G" Street. The Plan will also include complimentary parking and amenities,
which will include a unified high quality architectural and urban design. Moreover, the objective of
the Plan is to act as a catalyst in the revitalizing of the downtown area and to encourage people to live
and work in downtown.
The Commission has previously authorized Agency staff to make offers to purchase certain properties
within the Study Area, and to date the Agency has acquired 6 parcels , 5 additional parcels are in
escrow or pending escrow and 16 parcels remain to be acquired. An appraisal of the Property was
obtained.
On May 4, 2006 the Agency sent a purchase offer ("Offer") to to Bruce Ko, Christopher Ko and Henry
Ko ("Property Owners") to purchase the property located at 696 West 5th Street, San Bernardino,
California (APN: 0134-061-22,22,25 and 30) (the "Property") based on the appraisal value. .
The Offer was mailed to the address on file with the office of the County Tax Assessor as shown on
the last equalized county assessment roll, and the owners of record, Bruce Ko, Christopher Ko and
Henry Ko, received the Offer. In the Offer, the Property Owners were requested to convey free and
clear title.
The Property Owners responded that they need additional time to determine if the purchase price is the
fair market value and additional time to consider whether they will propose participating in the Project
in lieu of condemnation. The Property Owners, through their legal counsel, have met with Agency
Staff and legal counsel regarding owner participation. The Property Owners have not accepted or
-';8i7~198j:7473~i---------------------------------------------------------------------------------------COMMISSION MEETING AGENDA
P:\Azendls\Comm Dev Commlssloll\CDC 1:006\07-1:4.06 Resolution orNceeulty. 696 West 5th Slnel Flnll SR.doc Meeting Date: 07/24/2006
Agenda Item Nnmber: /{,3$'
Economic Development Agency Staff Report
Bruce Ko, et al CCN Property Acquisition-APN: 0134-061-21, 22, 25 and 30
Page 2
_ rejected the Agency Offer. If the Commission decides to go forward with the Resolution, the Owners
can still continue discussing owner participation. However, if the Commission does not go forward
with the Resolution of Necessity pending owner participation discussions, and the discussions fail, the
Commission would be behind schedule which could delay the proposed project.
The Property is improved by a masonry structure built in approximately 1956. The Property had a
restaurant that has been vacant for about (10) years. The structure is dilapidated, in disrepair, boarded
up and is another example of blight within the Study Area and an impediment to the economic rebirth
of the Study Area.
CURRENT ISSUES:
Therefore, in conformance with the Code of Civil Procedure Section 1245.235, on July 5, 2006, a
notice of the July 24, 2006 hearing on adopting a Resolution of Public Interest and Necessity was sent
by certified mail to the Property Owner whose name and address appears on the last equalized County
assessment roll, in order to afford such Property Owners a reasonable opportunity to be heard by the
Commission. The Hearing by the Commission and the adoption of the Resolution of Public Interest
and Necessity are legal preconditions to the exercise of the Commission's power of eminent domain.
Moreover, Code of Civil Procedure Section 1245.230 requires that the Commission make the
following findings and that each be included in the Resolution of Necessity:
_1.
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The public interest and necessity require the acquisition of the Property: The Agency has
adopted a Project Plan that includes this Property together with an agreement to assemble land
for eventual redevelopment in accordance with said Plan. The proposed Project is a unified
mixed-use development that will include portions of the Property. The proposal is to have
retail on the bottom level and owner-occupied housing on the second and third levels including
some affordable housing units within the Project. During the past year, the Agency has
acquired six (6) parcels of land, 5 additional parcels are in escrow or pending escrow and 16
parcels remain to be acquired within the vicinity of the Property. The Agency finds it
appropriate to continue the program ofland assembly and to acquire this additional Property to
provide sufficient contiguous land for the Plan and the contemplated Project.
2.
The Proiect is planned or located in a manner that will be most compatible with the
I!reatest public I!ood and the least private iniurv: 5th Street has had a problem with crime
and blight, particularly near the 1-215 freeway. The Agency has increased its efforts to address
conditions of blight in this sector of the Central City North Redevelopment Project Area (the
"Project Area") to foster a commercially viable and economically sustainable plan of
redevelopment and reuse of the properties within the Project Area and to prevent the spread of
blight in the Project Area into other surrounding neighborhoods. Redevelopment of the
Property will provide needed residential and retail development and assist with elimination of
blight in other areas in proximity to the Project. The assembly and redevelopment of the
Property is necessary as the Project Area displays a number of conditions of blight including
the presence of old structures that show signs of dilapidation and deterioration, high crime rate,
high volume of code compliance cases, absentee owners and tenants in possession, and
substandard and inadequate lot size. The Project will also facilitate land assembly and reuse of
4817-1981-7473.1
COMMISSION MEETING AGENDA
Meeting Date: 07/24/2006
Agenda Item Nnmber: R..J5"
P:\AICRW\COn:lIU Dev Commlssion\CDC 1006\07-24-06 ResollltlOA ofNece.uity - 696 West Sth Street Final SR.doc
Economic Development Agency Staff Report
Bruce Ko, et al CCN Property Acquisition-APN: 0134-061-21, 22, 25 and 30
Page 3
e a developed urban area that has stagnated in recent years under the burdens of small lot size,
diverse ownership, abandoned properties, absentee owners, high crime and code compliance
cases. The Agency has seen some success in its increased effort to address blight in this area,
although there is still much work to do. Part 1 Crimes for this area in 2004 were 426 and 436
in 2005. The number decreased dramatically to 91 from January 11 to April 11, 2006. This
Project will increase attractive affordable housing. This creates a sense of pride and increases
the public's effort to keep their neighborhood safe and secure. This Project will further the
positive impact started by TELACU and the new Holiday hm Express in the in the Central City
North Redevelopment Project Area. The Project will also confer substantial enviromnental
benefits upon the Project Area and the community generally, in accordance with the General
Plan of the City of San Bernardino. The Redevelopment Plan was amended on September 7,
2004 by adoption of an amendment to reinstate the power of condemnation together with an
Enviromnental Impact Report ("EIR") that was duly certified at that time.
3.
The subiect Property is necessary for the Proiect: The Agency previously acquired several
parcels of real property in the vicinity of the Property and desires to acquire this additional
Property to provide sufficient contiguous land for the Project. This particular Property is
located within the proposed development. The Project cannot be built around the subject
Property. The Property is an abandoned, boarded up, vacant building which tends to attract a
criminal element. Allowing the Property to remain in its blighted condition would shortchange
and tamish the proposed Project. It would also create a situation where the Developer would
either abandon the proposed Project (thereby hurting the City residents) or demand increased
concessions. If the Commission approves the Resolution of Necessity, the Agency is still able
to work with the owner in the owner participation process if the Property Owners desire.
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4. The Government Code & 7267.2(a) offers have been made to the record Property Owner:
On May 4,2006 the Agency submitted a formal acquisition offer to the Property Owners of the
subject Property. The offer complies with Govermnent Code 9 7267.2. To date, the Property
Owners have not accepted the Agency Offer nor provided a counter offer.
ENVIRONMENTAL IMP ACT:
On or about September 7, 2004, the Community Development Commission considered and certified
Enviromnental Impact Report SCH#2003031072 (the "EIR") in accordance with the California
Enviromnental Quality Act ("CEQA") for the Project Area which addresses reinstating the Agency's
power of conderrmation and the acquisition of Property contemplated within the Plan and for the
Project is consistent with the EIR for the Project Area.
On November 7, 2005, the Community Development Commission adopted a Mitigated Negative
Declaration and authorized Staff to file a Notice of Determination ("NOD") with the County Clerk for
the Project pursuant to the approved Agreement. On November 10, 2005, said NOD was filed with the
County Clerk.
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The statute of limitations applicable to challenges that a public entity approved a project without
making a proper CEQA determination is 35 days from the date of the filing by the public agency of the
48i7-1981-7473~1------------ ---------COMMISSION MEETING AGENDA
P:\Accndas\COUlm Dcv Commlssion\CDC 1006\07-1+06 ResolutlDn of Necessity _ 696 West 5th Street Flnll sadoc Meeting Date: 07/24/2006
Agenda Item Number: f(3S"
Economic Development Agency Staff Report
Bruce Ko, et at CCN Property Acquisition-APN: 0134-061-21, 22, 25 and 30
Page 4
e notice or if there is no notice or formal decision, 180 days from the date of the public agency's decision
to carry out or approve the project. The time has expired to challenge CEQA compliance.
FISCAL IMPACT:
Based on the appraisal, the appraised value of the subject Property is $320,000 plus court costs and
legal expenses normally associated with condemnation proceedings for an approximate total of
$448,000.
RECOMMENDATION:
That the Community Development Commission adopt the attached Resolution.
Maggie Pacheco, Ex cutive Director
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Agenda Item Number:
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RESOLUTION NO.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO DECLARING THE PUBLIC
INTEREST AND NECESSITY OF ACQUISITION OF REAL PROPERTY
BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO FOR COMMUNITY REDEVELOPMENT PURPOSES
OVER THE PROPERTY LOCATED AT 696 WEST 5TH STREET, SAN
BERNARDINO, CALIFORNIA (APN: 0134-061-21,22,25 and 30) IN THE
CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA
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WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency"),
public entity created pursuant to the Community Redevelopment Law (Health and Safety Cod
Section 33000, et seq.), is authorized to acquire and redevelop blighted properties located in th
City of San Bernardino (the "City"), in accordance with the Community Redevelopment Law'
and
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WHEREAS, the Community Development Commission of the City of San Bernardin
(the "Commission"), as the governing board of the Agency, has authorized the Agency t
assemble and acquire real property for community redevelopment purposes in the Central Cit
North Redevelopment Project Area ("Project Area"); and
WHEREAS, the Project Area displays substantial and pervasive symptoms of blight tha
cannot be remedied by private parties acting alone without community redevelopment assistance'
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and
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WHEREAS, the Agency has acquired other real property in the Project Area; and
WHEREAS, on March 11,2005, the Agency mailed a notice to the owners of record 0
the real property located within the Project Area as described and informed such persons that th
Agency intended to appraise the property for possible acquisition; and
WHEREAS, the Agency retained the services of an appraiser to appraise the property an
the appraiser has reported an opinion of the fair market value of the improved property located a
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696 West 5th Street, San Bernardino, CA 92410 (APN: 0134-061-21, 22, 25 and 30) (th
"Property"); and
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WHEREAS, the Property is improved with a restaurant that has been vacant for abou
(10) years and is dilapidated, in disrepair and is another example of blight within the Projec
Area that is an impediment to the economic rebirth of the Project Area; and
WHEREAS, based upon such real property appraisal report, the Commission authorize
the Agency to send a purchase offer and summary statement of valuation in conformity wit
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Government Code Section 9 7626.2(b) to the owners of record, to attempt to purchase th
Property at the appraised value in lieu of condemnation, and on May 4, 2006, the Agency maile
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a purchase offer and summary statement of valuation in conformity with Government Cod
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Section 9 7267 .2(b) to the owners of record of the Property based on the appraised value of th
Property described in this Resolution; and
WHEREAS, the Agency transmitted the offer to purchase the Property situated within th
Project Area, based on the appraised value on May 4, 2006, to the owners of record of th
Property at the address on file with the office of the County Tax Assessor, as shown on the las
equalized county assessment roll and the owners of record, Bruce Ko, Christopher Ko and He
Ko (the "Property Owners"), received the Agency's offer; and
WHEREAS, the Property Owners have not accepted the Agency Offer, requeste
additional time in order to accept the Agency Offer or provide a counter offer and requested t
be involved in the owner participation process; and
WHEREAS, the Property Owners, through their legal counsel, have been involved i
discussions with the Agency and its legal counsel regarding owner participation; and
WHEREAS, thirty (30) days have passed since the Property Owners request fo
additional time and the Property Owners have not provided further information regarding th
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purchase price or valuation; and
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WHEREAS, the Agency has not been able to satisfactorily complete a negotiate
purchase with the owners of record of the Property to acquire the Property for communit
redevelopment purposes; and
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WHEREAS, the Agency has not been able to come to an agreement with the Propert
Owners about owner participation; and
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WHEREAS, the Commission has served as the "lead agency" as defined in the Californi
Environmental Quality Act ("CEQA") for the purpose of conducting an environmental review i
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connection with the acquisition ofthe Property; and
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WHEREAS, on November 7, 2005, the Commission adopted Resolution No.CDC/2005
39 approving a Redevelopment Study Agreement and Exclusive Right to Negotiate (th
"Agreement") by and between the Agency and Watson and Associates Development Company
Inc. (the "Developer"), and adopted the Mitigated Negative Declaration for the Downto
Mixed Use Project Plan (the "Plan") and for the Project (the "Project") described in more detai
in the CEQA Initial Study dated October 11,2005; and
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WHEREAS, on or about September 7, 2004, the Agency considered and certifie
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Environmental Impact Report SCH#20030310n (the "EIR") in accordance with the CEQA fo
the Project Area, and the acquisition of property contemplated within the Plan and for the Projec
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is consistent with the EIR; and
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WHEREAS, the Property Owners never made a CEQA challenge and the time h
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expired to do so; and
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WHEREAS, Part I Crimes within the area of the Plan and Project were reported as 91
incidents of crime for the period January II through April 11, 2006; and 436 for 2005 and 42
for 2004; and
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WHEREAS, the Agreement contemplates the Agency acquiring or obtaining control 0
parcels necessary for the Plan either through purchase negotiations or alternatively, by eminen
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domain proceeding, if necessary; and
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WHEREAS, on July 5, 2006, notice of intent to adopt this Resolution was mailed to th
owners of record of the Property, Bruce Ko, Christopher Ko and Henry Ko, at the address 0
record on file at the office of the County Tax Collector and at the last known address for th
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_ owners of the Property; and
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WHEREAS, on July 24, 2006, after not less than fifteen (15) days written notice to th
Property Owners of the Property, the Commission conducted a hearing for the purpose 0
affording the owners of the Property a reasonable opportunity to appear and be heard on th
matters referred to in Code of Civil Procedure Section 1240.030 and whether the Agency has me
all other prerequisites for the exercise of eminent domain to acquire the Property for the Plan an
community redevelopment purposes; and
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WHEREAS, the Commission has determined as a result of such hearing on July 24
2006, that the public health, safety and welfare require the Agency to acquire the subjec
Property for community redevelopment purposes and to facilitate the Project.
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NOW THEREFORE, BE IT RESOLVED THAT THE COMMISSION FINDS
DETERMINES AND DECLARES AS FOLLOWS:
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Section 1.
The information set forth in the above recitals of this Resolution is tru
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and correct.
Section 2.
The real property to be acquired under the authority of this Resolution i
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located in the Project Area in the City of San Bernardino, California, and is also known as 69
West 5th Street, San Bernardino, California 92410 (San Bernardino County Assessor Parce
Number 0134-061-21, 22, 25 and 30). The Property is more particularly described in the lega
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description attached as Exhibit "A." The interest in the Property to be acquired consists of all 0
the fee simple absolute title interest in the Property, and all of the right, title and interest of eac
person and owners of the Property including the acquisition of each and every possessory interes
and all easements and appurtenances to the Property.
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On July 5,2006, the Agency transmitted a notice of hearing to the kno
Section 3.
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owners of record (Bruce Ko, Christopher Ko and Henry Ko) at 795 West 5th Street, S
Bernardino, California 92410.
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The Commission acknowledges receipt of the written reports an
Section 4.
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information relating to the Project Area, including the Staff Report and Agreement between th
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. Agency and Developer concerning the Plan, and the appraisal of the Property, staff reports, and
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oral reports and information submitted to the Commission during the course of the hearin
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conducted on July 24, 2006.
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Section 5.
The Commission on behalf of the Agency finds and determines that th
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hearing conducted by the Commission on this matter on July 24, 2006, was full and fair, and tha
each interested person has been afforded a full and fair opportunity to present evidence an
testimony relating to assembly of land for the Plan, and the matters described in Code of Civi
Procedure Section 1240.030, and the acquisition of the Property, and all interests in it, by th
Commission for community redevelopment purposes by the exercise of eminent domain an
other relevant matters.
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Section 6.
The Commission declares its intent to acquire the Property for the PI
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and in furtherance of community redevelopment purposes in the name of the Agency i
accordance with the laws of the State of California including the Community Redevelopmen
Law and Health and Safety Code Sections 33391 and 33492.40. The Commission further find
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and determines that all of the prerequisites to the exercise of eminent domain by the Agency wi
respect to such acquisition of the Property for the Plan have been met.
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Section 7.
The Commission has found and determined that the acquisition of th
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Property for the Plan is an activity, which is covered under a Mitigated Negative Declaratio
adopted by the Commission on November 7, 2005 and a Notice of Determination was filed wi
the Clerk of the County on November 10, 2005.
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In accordance with the provisions of Code of Civil Procedure Sectio
Section 8.
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1245.230, the Commission finds, determines, and declares as follows:
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(a)
The public interest, convenience and necessity require the acquisition
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Property for the Project, as necessary to alleviate conditions of blight in the Project Area, whic
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are documented and described in more detail in the 2004 EIR and CEQA Initial Study date
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October 11, 2005, which Initial Study and Mitigated Negative Declaration was approved 0
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., November 7, 2005, and to provide for the orderly redevelopment of the Property and other rea
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property included in the Project Area. The assembly and redevelopment of the Property i
necessary as the Project Area displays a number of conditions of blight, including withou
limitation prevalence of absentee owners, high volume of code compliance cases, crime statistic
substantially higher than the City rate, the presence of old structures that show signs 0
dilapidation and deterioration and small or substandard lot sizes within the Project Area
including the subject Property, and a diverse pattern of land ownership which prevent 0
substantially hinder the economically viable use of such real property in its present condition.
For the period of January 11 through April 11, 2006, the number of Part I Crimes within the are
of the Plan and Project were 91. For the period 2005, there were 436 Part I Crimes. For th
period 2004, there were 426 Part I Crimes. For the period of January 11 through April 11, 2006
this equates to 312.69 Part I Crimes per 1,000 people. Part I Crimes include murder, rape
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assault, robbery, burglary, grand theft auto and other theft.
Crimes such as dru
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use/possession/sale, panhandling, prostitution, etc., are not included in the figures. Acquisitio
and assembly of the Property for community redevelopment purposes, the Plan and the Project
together with other lands already owned by the Agency in the Project Area, will foster th
elimination of blight and assist with the redevelopment of the Project Area, and assist wi
elimination of blight in other lands in proximity to the Project Area. The Plan and the Projec
include without limitation mixed income and mixed commercial and residential uses.
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The Plan and the Project are planned or located in the manner that will be mos
(b)
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compatible with the greatest public good and the least private injury in light of the fact that th
real property included in the Project Area displays a number of symptoms of blight. The PI
and Project shall also facilitate the completion of a land assembly program previously initiate
by the Agency and foster the reuse of a developed urban area that has stagnated in recent year
under the burdens of economic obsolescence, small lot size, diverse ownership, absentee owners
tenant occupancy, high crime and code compliance cases, property tax liens and inadequat
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public improvements.
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(c) The Property described in this Resolution is necessary for the Plan and th
Project, as its acquisition and reuse for the Plan and the Project is part of a neighborhood plan t
eliminate blight and provide for the redevelopment and improvement of the other lands owne
by the Agency within the Project Area.
(d) The purchase offer required by Govemment Code Section 7267.2 has been maile
to the owners of record of the Property by the Agency, and the Agency has not been successfu
in acquiring the Property based upon the conditions contained within the offer. The Commissio
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deems it appropriate and necessary to approve the Agency acquisition of the Property fo
assembly for the Plan and the Project.
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Section 9.
(a)
The law firm of Lewis Brisbois Bisgaard & Smith, LLP, as leg
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counsel to the Agency ("Agency Counsel"), is authorized and directed to prepare, institute an
prosecute in the name of the Agency such proceedings in the court having jurisdiction, as may b
necessary for the acquisition of the Property.
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(b)
The sum payable by the Agency as probable compensation for the acquisition 0
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the Property by eminent domain, as determined by the appraisal, may, in the discretion 0
Agency Counsel, accompany the filing of the complaint and may be deposited as follows: (i
with the State of California in the manner provided by law, or upon the recommendation 0
Agency Counsel to the County Treasury; or (ii) at the election of the person(s) who may claim
interest in the Property to be acquired by such condemnation proceedings, in such other manne
as such interested person(s) may request in writing, subject to the approval of the Executiv
Director and Agency Counsel.
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Agency Counsel is also authorized, subject to the approval of the Executiv
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Director, to engage in settlement negotiations and, if possible, arrange for purchase of th
Property in lieu of condemnation at the appraisal price prior to or subsequent to
condemnation complaint to commence acquisition of the Property by eminent domain.
Section 10. The Secretary of the Commission is authorized and directed to certify the
25
26
27
ar
., adoption of this Resolution. This Resolution shall take affect upon adoption.
4830-5504-1536.1 7
P:\Agcndas\Rcsolutions\RcsoluUons\2006\07-24-06 Bruce Ko. et a). CCN 696 West :Sib SUCCI CDC &no.doc
e:
e5
_8
3
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO DECLARING THE PUBLIC
INTEREST AND NECESSITY OF ACQUISITION OF REAL PROPERTY
BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO FOR COMMUNITY REDEVELOPMENT PURPOSES
OVER THE PROPERTY LOCATED AT 696 WEST 5TH STREET, SAN
BERNARDINO, CALIFORNIA (APN: 0134-061-21,22,25 and 30) IN THE
CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA
4
5
6
,2006.
PASSED, APPROVED AND ADOPTED this _ day of
7
8
I CERTIFY that the foregoing Resolution was duly adopted by the Community
9
Development Commission of the City of San Bernardino at its
meeting
10
held on
, 2006 by the following vote, to wit:
11
Commission Members:
Aves
Navs
Abstain
Absent
12
ESTRADA
BAXTER
MCGINNIS
DERRY
KELLEY
JOHNSON
MC CAMMACK
13
14
16
17
18
19
20
Secretary
21
,2006.
day of
The foregoing resolution is hereby approved this
22
23
24
Patrick J. Morris, Chairperson
Community Development Commission
of the City of San Bernardino
25
26
Approved as to Form and Legal Content:
27
~~
Agency COUll el
By:
4.30-5504-1536.1 8
P:\Agendas\Resolutions\R.esolmions\2006\07.24-06 Bnace KG, et II. CCN 696 WC$t Sth Street CDC Rcso.doc
e
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EXHIBIT "A"
THAT PORTION OF LOT 2, BLOCK 38, CITY OF SAN BERNARDINO, IN THE COUNTY OF SAN
BERNARDINO, AS PER.PLAT RECORDED IN BOOK 7 OF MAPS, PAGE 1, RECORDS OF SAID
COUNTY, DESCRIBED AS FOLLOWS,
PARCEL NO.1,
COMMENCING AT A POINT 139 FEET WEST OF THE SOUTHEAST CORNER OF SAID LOT 2;
THENCE RUNNING WEST 41 1/2 FEET;
THENCE NORTH 150 FEET TO THE NORTH LINE OF SAID LOT 2;
THENCE EAST 41 1/2 FEET;
THENCE SOUTH 150 FEET TO THE POINT OF BEGINNING.
PARCEL 2,
BEGINNING 180 1/2 FEET WEST OF THE SOUTHEAST CORNER OF SAID LOT 2;
THENCE NORTH TO THE NORTH LINE OF SAID LOT;
THENCE WEST 39 FEET;
THENCE SOUTH TO THE SOUTH LINE OF SAID LOT;
THENCE EAST 39 FEET TO THE POINT OF BEGINNING.
PARCEL 3,
BEGINNING AT A POINT 219 1/2 FEET WEST OF THE SOUTHEAST CORNER OF SAID LOT 2;
THENCE NORTH 100 FEET;
THENCE WEST 39 FEET, MORE OR LESS, TO A POINT 42 FEET EAST OF THE WEST LINE OF
SAID LOT;
THENCE SOUTH 100 FEET TO THE SOUTH LINE OF SAID LOT;
THENCE EAST 39 FEET TO THE POINT OF BEGINNING.
PARCEL 4,
COMMENCING AT THE SOUTHWEST CORNER OF SAID LOT 2;
THENCE NORTH ALONG THE WEST LINE OF SAID LOT, 100 FEET;
THENCE EAST 42 FEET;
THENCE SOUTH AND PARALLEL WITH THE WEST LINE OF SAID LOT 2 A DISTANCE OF 100
FEET, TO THE SOUTH LINE OF SAID LOT;
THENCE WEST ALONG THE SOUTH LINE TO THE POINT OF BEGINNING.
PARCEL 5,
COMMENCING AT THE NORTHWEST CORNER OF SAID LOT 2;
THENCE RUNNING SOUTH ALONG "G" STREET, 50 FEET TO A POINT 100 FEET NORTH OF THE
SOUTHWEST CORNER OF SAID LOT 2;
THENCE EAST 81 FEET, MORE OR LESS, TO A POINT 219 1/2 FEET WEST OF THE EAST LINE
OF SAID LOT;
THENCE NORTH TO THE NORTH LINE OF SAID LOT;
THENCE WEST ALONG THE NORTH LINE OF SAID LOT TO PLACE OF BEGINNING.
" .
** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
MeetingDate(DateAdoPted):I\'n\\~~ Item # 'R.?>5' Resolution # CDCjC)..OD6.:.?J b
\ \\ ~ {~
Vote: Ayes I",:{ )../ LL 5, "" ~ Nays ----=1.-- Abstain C':l.. Absent D...
Change to motion to amend original documents 0 Companion Resolutions
Null/Void After: 10 /k days/
Resolution # On Attachments: 0
Note on Resolution of attachment stored separately: 0
PUBLISH 0
POST 0
RECORD W/COUNTY 0
By:
Date Sent to Mayor:
Date of Mayor's Signature:
Date of Clerk/CDC Signature:
Reso. Log Updated: ~
Seal Impressed: 0
Reso, # on Staff Report ~
Date Memo/Letter Sent for Signature:
I" Reminder Letter Sent:
J/A
Date Returned:
Not Returned: 0
2nd Reminder Letter Sent:
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413, 6429, 6433, 10584, 10585, 12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985,8234,655,92-389):
YesL No By_
Yes No~ By_
Yes No / By_
Yes NoL By_
Yes No V By_
Copies Distributed to:
Animal Control 0 EDA 0
City Administrator 0 Facilities 0
City Attorney 0 Finance 0
Code Compliance 0 Fire Department 0
Development Services 0 Human Resources 0
Others:
Notes:
Information Services 0
Parks & Recreation 0
Police Department 0
Public Services 0
Water Department 0
Ready to File: _
Date:
Revised 12/18/03
I.
_,0'"'."'
Bruce Ko
795 West 5th Street
San Bernardino CA 92410-3101
July 15, 2006
'" 17 '" II: -::'u"
,-,;, --
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Executive Director Maggie Pacheco
Economic Development Agency
City of San Bernardino
201 North E Street, Suite 301
San Bernardino CA 92401-1507
RE: Notice of Intention to adopt Resolution of Public Interest and Necessity for Acquisition of
Real Property
Property is located at the north east comer of 5th and "G" Streets, San Bernardino, CA (APN:
0134-06121,22,25 and 30) Central City North Redevelopment Project Area (the "Property")
Dear Executive Director Pacheco:
This letter is in response to your letter dated July 6, 2006, regarding the Agency's intention to have a
hearing on July 24th to seek a Resolution of Necessity. We hereby request to appear and be heard.
On March 9, 2005, we have submitted a Statement of Interest to Participate and requested more
redevelopment plan information so we can maximize our efforts by working with the Agency. A copy
is attached for your reference. Between March 2005 and July 2006, several phone calls and letters
were directed to the Agency, expressing our interest to participate and repeatedly requesting
conceptual, draft, work-in-progress or final Agency's plan for the Property. On July 10,2006, we had
a conversation with Agency's Project Manager Mike Trout and Agency's legal representative, Lee
Amidon of Lewis Brisbois Bisgaard & Smith LLP. On that day, we learned for the first time that
Agency had approved a conceptual plan in November 2005. Not until July 12, 2006, we finally
received a page of the conceptual plan that was enclosed with Lee Amidon's letter, dated July 7,2006.
Upon receipt of the conceptual plan, we immediately bring an experienced planner, Rick Gomez,
AICP, to our team We understand Agency and owner will enter into an Owner Participation
Agreement (OPA); therefore, we also retained Joseph AkIufi of Aklufi & Wysocki to work
cooperatively on the OPA with Lee Amidon. We have met with the Agency on July 14, and we are
scheduled a follow up meeting on July 19 to discuss how to develop our property to be compatible
with the Agency's conceptual plan.
As you can see, we were and continue are very interested to participate with the Agency. Once
received the requested conceptual plan, we have moved quickly; however, it may be difficult to have
everything considered and discussed before July 24th. Therefore, we request postponing the hearing.
If the July 24th hearing for a Resolution of Necessity to acquire our Property by eminent domain
cannot be postponed, then please consider this letter as our objections to the proposed Resolution.
Please consider the following:
We were invited to participate. As stated in the Agency's letter, dated February 11, 2005, "The
purpose of this Notice...is to invite you to participate in the redevelopment of your Property with the
Agency in accordance with the Redevelopment Plan for the Project Area." We have expressed our
interest to participate and request to be included in ail of your communications and meetings more
than 16 months ago. However, we were never contacted while the conceptual plan being developed.
Were there any workshops or solicitation of inputs from participants? Or was the conceptual plan
developed without any inputs from the invited participants?
1t 15 S-
7-.}.'f -() h
Our Property, a restaurant site, is consistent with the City's current land use. Same letter stated
"Your Statement of Interest to Participate... will assist Agency Staff in completing a preliminary
evaluation of a plan to develop a project consistent with the City's current land use designation of CR-
2.., which permits a diversity of regional serving uses, including but not limited to restaurants,
entertainment, supporting retail, residential and mixed uses." There are constant interests to lease/buy
our Property. However, in the past, it is difficult to fully utilize our Property because there are
undesirable elements in the surrounding area. Thanks to Agency's efforts, we believe once the
. redevelopment plan is fully implemented and the area has adequate community supports, the
undesirable elements will be removed, and we will again fully utilize our Property,
Not acquiring our Property will not be detrimental to the redevelopment plan. Our Property (an
approximately 6,000 square-foot building on an approximately 24,000 square-foot lot), located on the
northeast corner of 5th and G Streets, is not physicaIly connected to the rest of the project, Unlike
other parcels within the project area, which are abutting each other and may require Agency to
assemble them into larger parcels for master development, our Property does not have adjacent parcels
that are required in the current conceptual plan; thus, there is no need for Agency to acquire and
assemble our Property.
Acquiring our Property is not necessary. As stated in our letters, we are very interest to participate,
and we are assembling a team to work cooperatively with the Agency. As the owners, we have a lot at
stakes; thus, we will work even harder to make the project a success. Therefore, there is no need to
acquire our Property and prevent owners from participation.
We request to postpone the hearing or permanently withdraw the Resolution. We look forward to
work with the Agency on this important projecL Please contact us at (909) 885-4481 if you have any
questions. Thank you in advance of your timely assistance.
Sincerely yours,
~~
Owner
Enclosures:
Statement of Interest to Participate
Economic Development Agency letter, dated February 11, 2oo?
Agency's Conceptual plan received July 12, 2006 "
c:
Patrick J. Morris, Mayor
Esther Estrada, Councilwoman
Dennis J. Baxter, Councilman
Gordon McGinnis, Councilman
Neil Derry, Councilman
Chas A. Kelley, Councilman
Rikke Van Johnson, Councilman
Wendy McCarnmack, Councilwoman
Mike Trout, Project Manager
Lee Amidon, Lewis Brisbois Bisgaard & Smith LLP
Joseph AkIufi, Aklufi & Wysocki Attorneys At Law
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REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
1ffl5 tlA~<tJ2Y NORTH REDEVELOPMENT PROmer AREA ("Project Area")
STATEMENT OF INTEREST TO PARTICIPATE
CITY OF
sm~!!~Y\~s my interest in participating in the Project Area and submit the
following information: .
1. Name d3R1.<CE ko
Phone ~ 00$- tl4F31
2. HomeAddress '7qt; W ~H sT ,54,,] ,R.;::;f?NA-RDlrJ~, ('--<4 92.~lol
3. Name of Business
~~GE5 3)MORGA~Ro~
4~ Address of Business 696 W STff ST. SAAi ."R.Ef:JJI'Ji:OrtJo. 0\ q2 VI iJ
5. My present involvement in the Project Area is:
I own (Xl; am a Tenant L.J; and wish to rehabilitate lc;.j; built C2CJ;
sell ( X.) my present property. If Tenant, indicate: month-to-month L.J;
lease L.J; expiration date of lease: . Options extend
lease to' . If lease includes an option to purchase, so
indicate
Comments: 7/IUE ARE Io1Mr f'oTEIITr41.- IIJVESWeS wHO AU INTEE:ESTE1> TIlls "~fE,eTr.
6, I am interested in participating:
As a Property Owner ><
. As a Tenant
7. My present type of business is:
RESTAl.IfWJ1
8. If I participate:
I would like to continue at the same location X
I would like to change my present location
I would like to acquire real property for expansion (indicate approximate
requirements)
Page 1 of2
P:\Forms\Development\Statement of Interesldoc
9. Background, experience, and information concerning your proposal (you may
include further information on this page or attach additional sheets if you desire
to do so.):
(a) Generally describe background and experience: 1'/ ~ HAVE D f'e..V,7lOp..
~A<<AAIJ'" !=OR. '7 yeAR..:' 0"; RoUTe. bh
(b) Describe the activities you propose and indicate your experience relevant
to your proposal: WE PL.6JJ TO ltE/JoVAT.o THE. M411'&e.7Y 7(7 A
HIIOH -ErJP ~STAURAN'r TJ-IAT IS CCMPA7il'<JF' WffH'T1IE..
IQ:~EV&LDr""A1T PlAN ANi> f4JI[T'E 156 SCEAE.
(c) Enclose a business plan or construction and operating pro
forma relative to your proposal which will be considered
and evaluated with your statement of interest.
REMARKS We Ap.,:E. VEf..Y /Al,=""<TEI> "TO ,.Tall,) THJ;; ~t11=.VcI1JPMENT ~tq.s.
F'/.CA~E: /'1:oVI/>'E /oA.tJRE sf'ECtrtC I'II!IoI (#F(JN.IATf(}A/ SQ l(/I; CW MAKIMIZE
OUIt iEFfCR:fs. Tflq-E.lffB? fLEA~'E 11/CB<Pi: U$ IN AI{; or t{1(/i' CPW/,IfIfNtUlTrpll/.>
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ANP MiJiT/IJ6;s. TH1'rtIfcS
I understand that submission of this Statement of Interest does not in any way
obligate me to participate in the Project. Area.
Siined: .>~~
PrintNamf: ..B~LC..i=-' ~Q -
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Title (if applicable):
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Date: /VIA et:H rJ. 2a?5
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Page 2 of2
p:\Forms\Development\Statement of Interestdoc
City of San Bernardino
ECONOMIC DEVELOPMENT AGENCY
Redevelopment. Community Development. Housing. Business: Rectuitr'nent, Retention. Revitalization. MaIn Street, Inc.
February 11, 2005
Christopher and Henry Ko
795 West 5th Street
San Bernardino, CA 92410
RE: Notice to Property Owners, Businesses, and Tenants Requesting
Submission of Statement of Interest to Participate in Redevelopment
(Central City North Redevelopment Project Area of the City of San Bernardino)
APN: 0134-061-21 and 0134-061-25
Site Address: 696 West 5th Streeet, San Bernardino, CA 92410
Dear Christopher and Henry Ko:
I am writing to you on behalf of the Redevelopment Agency of the City of San Bernardino (the
"Agency") because you own property or are a business owner or tenant (referenced by Assessor's
Parcel Number 0134-061-21 and 0134-061-25) in San Bernardino, California (the "Property"). Your
Property is situated within the Central City North Redevelopment Project Area (the "Project Area")
established by the City of San Bernardino (the "City'') on August 6, 1973, and as subsequently
amended thereafter, A vicinity map of the Project Area is enclosed.
The purpose of this Notice to Property Owners, Businesses, and Tenants (the "Notice") is to invite you
to participate in the redevelopment of your Property with the Agency in accordance with the
Redevelopment Plan for the Project Area. The Agency is presently reviewing a plan for the
redevelopment and reuse of land generally located between the 1-215 Freeway and the east side of "F"
Street and 4th Street and the north side of 5th Street in Downtown San Bernardino (the "Site"), which
could include the acquisition of your Property for redevelopment purposes, and for this reason this
Notice is being sent to you. Please bear in mind that at the current time the Agency has no specific
plan to acquire your Property or any other lands around the Site. However, a first step in the process
that could result in the acquisition of your Property for the Site provides for the Agency to give you
this Notice.
As part of the formation of the Project Area, the Agency approved a program for guiding interested
property owners, businesses, and tenants in evaluating various redevelopment opportunities. This
program is described in the "Rules for Re-Entry Preferences for Owners, Businesses, and Tenants into
the Central City North Redevelopment Project" (the "Rules"). A copy of the Rules is enclosed with
this Notice.
201 North E Stree~ Suite 301' San Bernardino, Catl10mie 92401-1507' (909) 663.1044' Fax (909) 888-9413
www.sanbemardino-eda.org.
Notice to Property Owners, Businesses and Tenants
February 11,2005
Page 2
Under the Rules, Tenants of the Property are encouraged to participate in the redevelopment process.
If you are interested in participating, you must file with the Agency within 30 calendar days of
receiving this Notice, a "Statement of Interest to Participate" in the Project Area, specifically within
the location of the Site. Your Statement of Interest to Participate (along with statements submitted by
other property owners at the Site) will assist Agency Staff in completing a preliminary evaluation of a
plan to develop a project consistent with the City's current land use designation of CR-2 (Commercial
Regional-Downtown District) which permits a diversity of regional serving uses, including but not
limited to, restaurants, entertainment, supporting retail, residential and mixed uses,
A Statement of Interest to Participate form is included with this Notice for your use. If you have any
questions regarding this Notice, or your completion and return of the Statement of Interest to
Participate, please feel free to contact Maggie Pacheco, Deputy Director or Mike Trout, Project
Manager at (909) 663-1044. Please send your completed Statement of Interest to Participate within 30
calendar days (deadline, March 9, 2005) to the following address:
Economic Development Agency
City of San Bernardino
Attn.: Deputy Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
Sincerely,
/7/?~
~ Gary Van Osdel
/ / Executive Director
Enclosures
p:'Clerica1 Services Dqrt\was:aua\Ann Hanis\AH\Fonns\C.eIIt:ral CityNorth-StB\t:IDe.D. oflntctesl Leller Property Owni::l".doc
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Rick Gomez, AICP
City of Pomona
Hogl~-Irclalld
FORl\.IA
City of Rancho Cucamonga
City of Arcadia
Owner
Di~ectllr ofCommunit)' Development
Senior Project Manager
Senior Din::ctu!"
Director cfConlmunity Development
Deputy Cily Managcr and
Direclor {,[ De,elopment Services
Direc:or efCommuniry Development
Senior Pr{)i~ct Manager
CiTY of LaVcrnc
Lewis Manligcment Corporation
(F,'rmerl~ Lmis Homes of California)
...>.(":.;:'~lL"'.'
University of LaVernc Masters of Public Administration
Cui-Poly Pt'mona Bachelor ofScienceslCity Planning
1\1P A 2002
r:lSCP 1978
0;.~.:;~'.~:.~:. :;' e2.~.LL ..:-:}.....;":~~::_:('..:. :'lO.:~,~~
.t),m~ri\'an Planninl:,. Association (APA)
American Institute of CCltificd Planners (AIC?)
Charkr l\1cmber for past 25 years.
!\lembcr since 2000.
i~ ~'::~~:l~.(.~\\!{:>i:..f !~!_: LFL.'!:i:~~! {.f.}
Riel, Go/nel, AIel', has over thirty yea.s (30) of eXtculive cxperiencc in both the
public and private sectors of planning and real estat.. development. Rick's Resume
details positions with major California Cities and City Planning and Urban Design
runsu!ling firms that include large residential and commerdal developers. These
executive positionv have afforded Riel, the valuable c"perienc:e in developing large,
master-planned communities; Specific Plans; Downtown Specific Plans inchlding
Business Improvement Disrricts (B.LD.'s), Major Arterial/Corridor Specific 1'lan5,
and Ci.y General Plans. This professional and ,'alnable experience demonstrate..
Rick's leadership abilities '0 undertake projecls 'with confid.,nce and the skill t',
meet pl'oject deadlines.
:j.~~' Xil't'f":;,'jU ~...,,;;.t..'[, (.iF!:",''-''.', Ca/~r;')i.lIjtl 9.' 784 ;'9i.i'i) Y57-1:'15G rh'kJf~l:fJ(l"J'UI~'{;().C(},.a
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. .
iifC8\i'E2J Hi
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Bruce Ko
795 West 5th Street
San Bernardino CA 92410-3101
May 26, 2006
2m" fJf,.Y 30 PH!2: 38
GI1Y OF
~:I\r'J LF. ','!/ '/:t\'f'j!.....-IO
.....', '.__h" '_. " .._';' '.
Executive Director Maggie Pacheco
Economic Development Agency
City of San Bernardino
201 North E Street, Suite 301
San Bernar.dino CA 92401-1507
RE: Offer from the Redevelopment Agency of the City of San Bernardino ("Agency")
to purchase property located at the north east corner of 5th and "G" Streets, San
Bernardino, CA (APN: 0134-06121, 22, 25 and 30) Central City North
Redevelopment Project Area (the "Property")
Dear Executive Director Pacheco:
This letter is in response to your letter dated May 4, 2006, received on May 6, 2006,
regarding the Agency's wishes to purchase the Property.
We appreciate Agency's wishes to purchase the Property. We need additional time to
determine if the Purchase Price is a Fair Market Value, as defined by Code of Civil
Procedure Section 1263.320.
We would like to reiterate our interest to participate the redevelopment efforts, As
mentioned last year in our Statement of Interest to Participate, we would like to cooperate
with the Agency to develop the Property. Please provide us conceptual, draft, work-in-
progress or final Agency's plan for the Property so we can work efficiently with the
Agency,
Sincerely yours,
h
fEDf
r,'./
Bruce Ko
795 West 5th Street
San Bernardino CA 92410-3101
July 5, 2006
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Executive Director Maggie Pacheco
Economic Development Agency
City of San Bernardino
201 North E Street, Suite 301
San Bernardino CA 92401-1507
RE: Offer from the Redevelopment Agency of the City of San Bernardino ("Agency")
to purchase property located at the north east comer of 5th and "0" Streets, San
Bernardino, CA (APN: 0134-06121,22,25 and 30) Central City North
Redevelopment Project Area (the "Property")
Dear Executive Director Pacheco:
This letter is in response to your letter dated June 30, 2006, regarding the Agency's
intention to have a hearing on July 24th to seek a Resolution of Necessity.
As mentioned in our previous letter, we need additional time to determine if the Purchase
Price is a Fair Market Value, as defined by Code of Civil Procedure Section 1263.320. In
the past few weeks, we have been busy collecting recent property transactions data,
available properties for sale and studying the surrounding market. This method of
valuation will give us an idea of the Property's value based on the Market Approach.
However, before a proper Fair Market Value Can be derived, a Replacement Approach is
also needed. Because the Property is a commercial property in a redevelopment zone, we
would need expert's opinions. We have tried to get expert's opinions; however, it
appears opinions may not be available before July 24th, due to expert's availability.
Therefore, we request postponing the July 24th hearing for at least six weeks.
We like to inquire the status of our previous requests to receive a conceptual, draft, work-
in-progress or final Agency's plan for the Property. We would like to reiterate our
interest to participate the redevelopment efforts. As mentioned last year in our Statement
of Interest to Participate and our previous communications, we like to cooperate with the
Agency to develop the Property. Please provide us conceptual, draft, work-in-progress or
final Agency's plan for the Property so we can work efficiently with the Agency. We
would like to thank you in advance of your timely assistance.
Sincerely yours,
~
.
'.
I ASI ;\~';;'!.F! ,fij ;VY~O:=^K!
w 3403 TENTH STREET, SUITE 610
RIVERSIDE. CALIFORNIA 92501
JOSEPH S. AKlUFI
DAVID L. WYSOCKI
TELEPHONE
(951) 682-5480
FACSIMILE
(951) 682-2619
E-MAil
AandWlaW@ao1.com
July 18, 2006
Ms. Maggie Pacheco, Executive Director
City of San Bernardino
Economic Development Agency
201 North "E" Street, Suite 301
San Bernardino, California 9240 i -1507
VIA FAX AND MAIL
909-888-94 I3
Re: Northeast Corner of 5th and "G" Streets, San Bernardino, CA
APN: 0134-061-21,22,25 and 30 ("Propeliy")
Dear Ms. Pacheco:
We represent Bruce Ko, Christopher Ko and Henry Ko concerning the above-referenced matter.
The purpose of this letter is two-fold: (I) to relay our written request to appear and be heard, and
(2) to summarize our clients'objections to the proposed taking of their Property.
Our objections are:
1. The appraisal statement accompanying the offer to purchase our clients' Property (dated
May 4, 2006) is legally inadequate. Although the amount of compensation is not an issue
at the Resolution hearing, failure to challenge the adequacy of the appraisal statement
supporting the offer required by Government Code, Section 7267.2 at the hearing waives
the right of judicial review. The appraisal summary statement is deficient in several
respects. First, it contains an offer that is less than our clients originally paid for the
Property. While there may be isolated examples of such "upside down" investments, it
is, by any measure, a distinct rarity. In Southern California, real estate prices have
climbed dramatically in the last few years, eclipsing the recession of the I 990s. The area
that our clients' Property is located is not so "blighted" as to justify an appraised value
that is less than its original purchase price nearly two decades earlier! Secondly, the
appraisal summary statement is deficient in that there is no explanation for the enonnous
discrepancy in the unit price of the five land sales deemed comparable by the appraiser
and the offer itself. The appraised value of our clients' Property is estimated to be less
than $15.00 per square foot; however, except for one sale at $2 1.00 per foot, 4 of the 5
sales range from $28.00 to $36.00 per square fool. If the five land sales are truly
"comparable", it would take tremendous mental agility on the part of any appraiser to use
them to justif'y an offer that is less than half of tile average of the five sales!
,
.'
Ms. Maggie Pacheco, Executive Director
Page 2
July 18, 2006
2. Our clients were not afforded a fair opportunity to participate in the redevelopment of
their Property before condemnation was commenced, as the Health and Safety Code and
case law demand. In response to your letter of February II, 200~, our clients filed their
written Statement ofInterest to Participate with the EDA on March 9, 200~. However,
despite repeated telephone calls throughout 2005, it wasn't until a letter dated Julv 7.
2006 from the law firm of Lewis Brisbois (by Lee Amidon, Esquire) that our clients first
learned of a one-page "conceptual plan" for this project area. Further investigation
revealed that the significant delay between the filing of our clients' Statement of Interest
and Mr, Amidon's letter was the result of a recommendation by the City Attorney "that a
plan for the target parcels would be essential iftbe Agency found the need to use its
powers of condemnation. ..." (EDA Staff Report dated November 2, 2005). Thus, as of
this writing, there has never been a good faith effort to include our clients in the
discussions concerning this proposed project. Nearly 18 months had passed since the
filing of the Statement of Interest before any discussion took place between your Agency
and our clients, and only because our clients persistently sought those discussions. Not
only were they not contacted about their Statement of Interest, they were never even
consulted while the conceptual plan was being developed. It seems as if the plan was put
together without any public input. Now, we find ourselves "under the gun" to make up
for 18 months of lost time by struggling to put together an or A under threat of eminent
domain. The long delay between the announcement ofthe possibility of an or A in
February 2005 to the July 2006 disclosure that there is, in fact, only a "conceptual plan"
for this project area is not our clients' fault. They should not now be made to make up
for lost time by making instantaneous decisions on the basis of a one-page "conceptual
plan" or suffer the consequences of eminent domain. Their request that this hearing be
delayed for a reasonable period of time is reasonable,
3. The Agency is seeking to acquire property with an existing building that confonns to the
redevelopment plan. Our clients' building, and the property that it stands on, is neither
blighted nor outmoded; it merely needs a remodel. As your November 2, 2005, Staff
Report reveals, our clients' historical use for the Property, as a restaurant, confonns to
both the zoning for this area and the conceptual plan. Since at least March 9, 2005, our
clients have expressed a strong interest in reopening the restaurant. Their desire prevails
as of this writing. However, through no fault of their own, there has been no opportunity
to negotiate an OPA that reflects that desire. Until such negotiations fail, the Health and
Safety Code prohibits the exercise of eminent domain to acquire their perfectly good
Property for the same or similar uses. The fact that their restaurant is closed should not
be justification for assuming that it is the cause of blight in the Downtown. Rather, the
reverse is true: but for the spreading blight, the restaurant would not be closed. If the
Agency chooses to take action to address the blight in the surrounding area, then our
clients should be given an opportunity to salvage their investment in the Downtown.
Taking away their Property by a forced sale in eminent domain and paying less than what
,
"
Ms. Maggie Pacheco, Executive Director
Page 3
July 18, 2006
they paid for the Property is no way to treat loyal citizens and business people who are
heavily invested in the Downtown.
4. Acquiring our clients' Property is not necessary to the success of the Agency's project.
Our clients' Property is not adjacent to the project area; it does not share a common
boundary. The success (or failure) of the Agency's project does not hinge upon the
acquisition of this isolated parcel. Indeed, our clients' Property represents approximately
less than 10% of the project area and obviously does not suffer from the same
deficiencies that the remaining project area parcels possess. Moreover, the determination
of whether our clients' Property is "necessary" for the project is premature; as we have
noted above, we have consistently expressed an interest in an OP A, but it has only been
this month (July) that we be given an opportunity to talk to your staff about it, let alone
negotiate it. TIle fact that we do not have an OP A is not our clients' fault.
Finally, this closing observation: As you know, our clients own other substantial businesses in
the area. They are heavily invested in the Downtown, and it is in their best interest to protect and
enhance their investments, Who would be more motivated than they? Would it not be
appropriate, therefore, to allow them the opp0l1unity to resurrect their own investment?
Very truly yours,
AKLUFI AND WYSOCKI
JOSEPH S. AKLUFI
JOSEPH S. AKLUFI, Attomeys for the
KOFAMILY
JSA:dvh
cc:
vClients
Lee Amidon, Esq:
(Via Fax and Mail 909-387-1138)
,
.'
(
~AKLUfl [1 WYSOCKI
g ATTOll.NEYS AT lAW
W 3.403 TENTH STJlEIIT. SUITE 6JO
RlVfl\Sl.DE. CALIFORNIA 92501
JOSEPH ~. ^KLtJfl
D^VlD L. W'rSOCKJ
TELEPHONE
(951) 682.-5&80
PACSIMILE
C$5U &82-2619
E.MAlL
AandWl.awOaaLcDID
July 20, 2006
Lee Amidon, Esquire
Lewis Brisbois Bisgaard & Smith LLP
650 East Hospitality Lane, Suite 600
San Bernardino, California 92408
VIA FAX ONLY
909-387-1138
Re: The Ko Familv ProDertv at 511I and "G" Streets
Dear Lee:
I discussed the new offer to purchase the Ko Family property with Our clients, for $384,000.00. Because
our clients' very much want an Owners Participation Agreement, the offer was declined.
As for the OP A, at our meeting with you and Mike Trout last Friday, July 14, we were led to believe that
EDA was excited by the fact that we were bringing in a professional to assist us, Mr. Rick Gomez, and
that Mr. Trout was not only willing to meet with Mr. Gomez during the week of July 17. but that he. Mr.
Trout, would clear his calendar to accommodate Mr. Gomez.
Mr. Gomez set up a meeting with Mr. Trout for Thun;day morning, July 20. However, a few minutes
before 5:00 p.rn. on the afternoon ofJuly 19. Mr. Trout cancelled the meeting, advising that he was
"leaving town" for a few days and would not be available until Tuesday, July 25, at 2 p.llL, the day after
the hearing on the Resolution of Necessity. As of this writing, Mr. Gomez is instead atteropting to set up
a meeting with Ms. Pacheco.
These calendaring problems may well be explained as typical, but it is also perfectly nonnal for us to
conclude that the initial 'imthl!8i;lllm for our participa.tion has eva.porated. at lea.st 1!IItil we get past the
hearing on the Resolution of Necessity!
Please make a copy of this letter for the EDA file on the hearing of the Resolution, so that it may be part
of the Administrative Record.
Best rega.rds.
JSAdvh
cc: Ko Family (Via Fall Only)