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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
r'om: ROGER G. HARDGRAVE
Subject:
Acceptance of Bid for Sale of City Property and
Accepting Oral Bids - 3:00 PM - Southeast
corner of Olive Avenue and Ohio Avenue
Dept: Public Works / Engineering
Date:
August 29, 1997
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Synopsis of Previous Council Action:
02-19-96 - Authorization granted to proceed with the sale of City property located at the Southeast comer of
Olive Avenue and Ohio Avenue.
05-20-96 - Resolution No. 96-132 was adopted establishing fair market value of City owned property at the
Southeast comer of Ohio Avenue and Olive Avenue at $430,000.
06-03-96 - Acceptance of oral Bid in the amount of $430,000 for City owned property at the Southeast comer of
Ohio Avenue and Olive Avenue contingent upon execution of a mutually acceptable sales agreement.
06-17-97 - Reject bid and return of deposit for City owned property at the Southeast comer of Ohio Avenue and
Olive Avenue
Recommended Motion:
AUG 2 9 1997
That the presentation of sealed bids and acceptance of any oral bids relative to Bid Specification No. 15.05-209a
be continued to the Council Meeting of September 15, 1997, at the hour of 3 :00 PM
cc: Fred Wilson, City Administrator
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Contact Person: Les Fogassy
Supporting data attached: Staff Report. Map
Phone: 5026
Ward: 5
FUNDING REQUIREMENTS:
Amount: None
Source (Ace!. No.) N/A
(Acc!. DeSCription) N/A
Finance:
Council Notes:
Continued to 61 /'S- /'17
q/~/q 7
Agenda Item No. Jf 5 J
. ,CITY OF SAN BERNARDINO. REQUEST FOR COUNCIL ACTION
STAFF REPORT
The City acquired this property through a judicial foreclosure sale, due to delinquent payments for
Assessment District No. 995 (Verdemont Community Facilities District).
The property is a 10.49 acre of vacant land located at the Southeast comer of Ohio Avenue and Olive
A venue. City Departments were notified of the pending sale and the only response was from the Fire
Department indicating possible future use for a fire station.
Tentative Tract No. 14193 has been approved for the parcel, and the one to the east. This Tract Map will
subdivide the approximately 21 acres into 76 single family lots.
Proposals were requested from three local appraisers, and the selection of Realco Consultants was made.
The appraisal indicates the market value of the property to be $430,000. However, there are approximately
$197,427 in liens and encumbrances on the parcel, which the City will pay from the proceeds of this sale
through escrow.
On May 20,1996, Resolution No. 96-132 was adopted, giving Notice Inviting Bids and establishing the fair
market value at the appraised amount of $430,000.
No written bids were submitted, however, an oral bid was presented on behalf of the property owner
owning the adjacent 10 acre parcel, contingent upon the reaching of a mutually acceptable sales agreement.
After several weeks of negotiations the City and the bidder were unable to reach a mutual agreement and on
June 17, 1996, authorization was given to reject the bid and return the bid deposit.
The adjacent property owner and the City have been in negotiations regarding the development of this site,
and have recently reached an acceptable agreement and now desire to bid on the sale of the property.
Notice of sale was published in the Sun Newspaper on 8/22/97, and bid were to be submitted by 9:00 am
9/2/97 and presented at the Council Meeting of 9/2/97 at the hour of 3 :00 PM.
The Settlement Agreement between the adjacent property owner and the City will be presented on the
September 15, 1997 Council Meeting. Since this agreement affects the City property being proposed for
sale, we recommend that the bid results and acceptance of oral bids be continued to the meeting of
September 15, 1997
URGENCY: The results of bidding and acceptance of oral bids was set for 3:00 pm on 912/97 in the
bid specifications.
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