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RESOLUTION NO. CDC/2006-16
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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 495 NORTH "G" STREET, SAN
BERNARDINO, CALIFORNIA (APN: 0134-101-28) IN THE CENTRAL
CITY NORTH REDEVELOPMENT PROJECT AREA
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WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency"),
a public entity created pursuant to the Community Redevelopment Law (Health and Safety
Code Section 33000, et seq.), is authorized to acquire and redevelop blighted properties located
in the City of San Bernardino (the "City"), in accordance with the Community Redevelopment
Law; and
WHEREAS, the Community Development Commission of the City of San Bernardino
(the "Commission"), as the governing board of the Agency, has authorized the Agency to
assemble and acquire real property for community redevelopment purposes in the Central City
North Redevelopment Project Area; and
WHEREAS, the Central City North Redevelopment Project Area displays substantial
and pervasive symptoms of blight that cannot be remedied by private parties acting alone
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without community redevelopment assistance; and
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WHEREAS, the Agency has acquired other real property in the Central City North
Redevelopment Project Area; and
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WHEREAS, on March 14,2005, the Agency mailed a notice to the owner of record of
the real property located within the Central City North Redevelopment Project Area ("Project
Area") as described below, (the "Property") and informed such persons that the Agency
intended to appraise the Property for possible acquisition; and
WHEREAS, on October 3, 2005, the Agency mailed a notice to the owner of
record of the real property located within the Central City North Redevelopment Project Area
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("Project Area") as described below, (the "Property") and informed such persons that the
Agency intended to reappraise the Property for possible acquisition; and
WHEREAS, the Agency retained the services of an appraiser to appraise the Property
and the appraiser has reported an opinion of the fair market value of the improved Property
located at 495 North "G" Street, San Bernardino, CA 92410 (APN: 0134-101-28) (the
"Property"); and
WHEREAS, based upon such real property appraisal report, the Commission authorized
the Agency to send a purchase offer to the owner of record, to attempt to purchase the Property
at the appraised value in lieu of condemnation, and on May 27, 2005 and April 25, 2006, the
Agency mailed a purchase offer to the owner of record of the Property based on the appraised
value of the Property described in this Resolution; and
WHEREAS, the Agency transmitted the offer to purchase the Property situated within
the Central City North Redevelopment Project Area, based on the appraised value on May 27,
2005 and April 25, 2006, to the owner of record of the Property at the address on file with the
office of the County Tax Assessor, as shown on the last equalized county assessment roll and
the owner of record, Allied Capital Investments, LLC, received the offer but did not accept the
Agency offer; and
WHEREAS, the Agency obtained an updated appraisal of the Property and transmitted
another offer and summary of valuation in conformity with Government Code ~ 7267.2(b) to
the owner of record on April 25, 2006 at the address on file with the office of the County Tax
Assessor as shown on the last equalized county assessment roll, and the owner of record, Allied
Capital Investments, LLC, received the updated Agency offer; and
WHEREAS, the Agency has not been able to satisfactorily complete a negotiated
purchase with the owner of record of the Property to acquire the Property for community
redevelopment purposes; and
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WHEREAS, the Commission may serve as the "lead agency" as defined in CEQA for
the purpose of conducting an environmental review in connection with the acquisition of the
Property; and
WHEREAS, on November 7, 2005, the Commission adopted Resolution No.CDC/2005-
39 approving a Redevelopment Study Agreement and Exclusive Right to Negotiate (the
"Agreement") by and between the Agency and Watson and Associates Development Company,
Inc. (the "Developer"), and adopted the Mitigated Negative Declaration for the Downtown
Mixed Use Project Plan (the "Plan") and for the Project to be built (the "Project") described in
more detail in the CEQA Initial Study dated October 11,2005; and
WHEREAS, on or about September 7, 2004, the Agency considered and certified
Environmental Impact Report SCH#2003031072 (the "EIR") in accordance with the California
Environmental Quality Act ("CEQA") for the Project Area, and the acquisition of property
contemplated within the Plan and for the Project is consistent with the EIR; and
WHEREAS, Part I Crimes within the area of the Plan and the Project were reported as
91 incidents of crime for the period January II through April II, 2006; and 436 for 2005 and
426 for 2004; and
WHEREAS, the Agreement contemplates the Agency acquiring or obtaining control of
parcels necessary for the Plan either through purchase negotiations or alternatively, by eminent
domain proceedings, if necessary; and
WHEREAS, on May II, 2006, notice of hearing on this Resolution was mailed to the
owner of record of the Property, Allied Capital Investments, LLC, at the address of record on
file at the office of the County Tax Collector and at the last known address for the owner of the
Property, and notice was also published in the Sun newspaper on May 15,2006; and
WHEREAS, Allied Capital Investments, LLC, has delivered a letter to the Agency dated
May 15, 2006, rejecting the prior offers of the Agency and requesting a purchase price to be
paid by the Agency for the Property equal to $2,000,000 plus other statutory amounts as may be
due and payable to the tenants located on the Property; and
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WHEREAS, on June 5, 2006, after not less than fifteen (15) days written notice to the
owner of the Property, the Commission conducted a hearing for the purpose of affording the
owner of the Property a reasonable opportunity to appear and be heard on the matters referred to
in Code of Civil Procedure Section 1240.030 and whether the Agency has met all other
prerequisites for the exercise of eminent domain to acquire the Property for community
redevelopment purposes; and
WHEREAS, the Commission has determined as a result of such hearing on June 5,
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I 2006, that the public health, safety and welfare require the Agency to acquire the subject
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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 true
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and correct.
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Section 2.
The real property to be acquired under the authority of this Resolution (th
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"Property") is located in the Central City North Redevelopment Project Area in the City of S
Bernardino, California, and is also known as 495 North "G" Street, San Bernardino, Califomi
92410 (San Bernardino County Assessor Parcel Number 0134-101-28). The Property is mor
particularly described in the legal description attached as Exhibit "A." The interest in th
Property to be acquired consists of all of the fee simple absolute title interest in the Property, an
all of the right, title and interest of each person and owner of the Property including th
acquisition of each and every possessory interest and all rights to terminate any and allleasehol
estates in the Property in accordance with the lease terms thereof, and pursuant to either statuto
rights or pursuant to court order to terminate all such leasehold estates or other tenancies in th
Property, and all easements and appurtenances to the Property.
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Section 3.
On May II, 2006, the Agency transmitted a notice of hearing to known
27 owner of record (Allied Capital Investments, LLC.) at 5661 Beach Boulevard #201, Buena
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Park, California 90621, and on May 15,2006 notice was published in the Sun newspaper, and a
copy of such notice of hearing is on file with the Agency.
Section 4. The Commission acknowledges receipt of the written reports and
information relating to the Central City North Redevelopment Project Area (the "Project
Area"), including the Staff Report and Agreement between the Agency and Developer
concerning the Plan, and the appraisal of the Property, staff reports, and oral reports and
information submitted to the Commission during the course of the hearing conducted on June 5,
2006.
Section 5. The Commission on behalf of the Agency finds and determines that the
hearing conducted by the Commission on this matter on June 5, 2006, was full and fair, and that
each interested person has been afforded a full and fair opportunity to present evidence and
testimony relating to assembly of land for the Plan, and the matters described in Code of Civil
Procedure Section 1240.030, and the acquisition of the Property, and all interests in it, by the
Commission for community redevelopment purposes by the exercise of eminent domain and
other relevant matters.
Section 6. The Commission declares its intent to acquire the Property for the Plan
and community redevelopment purposes in the name of the Agency in accordance with the laws
of the State of California including the Community Redevelopment Law and Health and Safety
Code Sections 33391 and 33492.40. The Commission further finds and determines that all of
the prerequisites to the exercise of eminent domain by the Agency with respect to such
acquisition of the Property for the Plan have been met.
Section 7. The Commission has found and determined that the acquisition of the
Property for the Plan is an activity, which is covered under a Mitigated Negative Declaration
adopted by the Community Development Commission on November 7, 2005 and a Notice of
Determination was filed with the Clerk of the County on November 10,2005.
Section 8. In accordance with the provisions of Code of Civil Procedure Section
1245.230, the Commission finds, determines, and declares as follows:
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(a) The public interest, convenience and necessity require the acquisition of the
Property for the Project, as necessary to alleviate conditions of blight in the Project Area, which
are documented and described in more detail in the EIR and CEQA Initial Study dated October
II, 2005, and to provide for the orderly redevelopment of the Property and other real property
included in the Project Area. The assembly and redevelopment of the Property is necessary as
the Project Area displays a number of conditions of blight, including without limitation
prevalence of absentee owners, high volume of code compliance cases, crime statistics
substantially higher than the City rate, the presence of old structures that show signs of
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 or
substantially hinder the economically viable use of such real property in its present condition.
For the period of January II through April II, 2006, the number of Part I Crimes within the
area of the Plan and Project were 91. For the period 2005, there were 436 Part I Crimes. For
the period 2004, there were 426 Part I Crimes. For the period of January II through April II,
2006, this equates to 312.69 Part I Crimes per 1,000 people. Part I Crimes include murder,
rape, assault, robbery, burglary, grand theft auto and other theft. Crimes such as drug
use/possession/sale, panhandling, prostitution, etc. are not included in the figures. Acquisition
and assembly of the Property for community redevelopment purposes for the Plan and the
Project, together with other lands already owned by the Agency in the Project Area, will foster
the elimination of blight and assist with the redevelopment of the Project Area, and assist with
elimination of blight in other lands in proximity to the Project Area. The Plan and the Project
include without limitation mixed income and mixed commercial and residential uses.
(b) The Plan and Project is planned or located in the manner that will be most
compatible with the greatest public good and the least private injury in light of the fact that the
real property included in the Project Area displays a number of symptoms of blight. The Plan
and Project shall also facilitate the completion of a land assembly program previously initiated
by the Agency and foster the reuse of a developed urban area that has stagnated in recent years
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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
inadequate public improvements.
(c) The Property described in this Resolution is necessary for the Plan and Project,
as its acquisition and reuse for the Plan and Project is part of a neighborhood plan to eliminate
blight and provide for the redevelopment and improvement of the other lands owned by the
Agency within the Project Area.
(d) The purchase offer required by Government Code Section 7267.2 has been
mailed to the owner of record of the Property by the Agency, and the Agency has not been
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successful in acquiring the Property based upon the conditions contained within the offer. The
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Commission is hereby requested to approve its acquisition of the Property for assembly for the
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Plan and Project.
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Section 9. (a) The law firm of Lewis Brisbois Bisgaard & Smith, LLP, as legal
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counsel to the Agency ("Legal Counsel"), is authorized and directed to prepare, institute and
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prosecute in the name of the Agency such proceedings in the court having jurisdiction, as may
be necessary for the acquisition of the Property.
(b) The sum payable by the Agency as probable compensation for the acquisition of
the Property by eminent domain, as determined by the appraisal, may, in the discretion of
Agency Legal 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 of
Agency Legal Counsel to the County Treasury; or (ii) at the election of the person(s) who may
claim an interest in the Property to be acquired by such condemnation proceedings, in such
other manner as such interested person(s) may request in writing, subject to the approval of the
Executive Director and Legal Counsel to the Agency.
(c) Agency Counsel is also authorized, subject to the approval of the Executive
Director, to engage in settlement negotiations and, if possible, arrange for purchase of the
Property in lieu of condemnation at the appraised price prior to or subsequent to filing a
condemnation complaint to commence acquisition of the Property by eminent domain.
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Section 10. The Secretary of the Commission is authorized and directed to certify the
adoption of this resolution. This Resolution shall take affect upon adoption.
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CDC/2006-16
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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 495 NORTH "G" STREET, SAN
BERNARDINO, CALIFORNIA (APN: 0134-101-28) IN THE CENTRAL
CITY NORTH REDEVELOPMENT PROJECT AREA
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PASSED, APPROVED AND ADOPTED this ~ day of
June
,2006.
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I CERTIFY that the foregoing Resolution was duly adopted by the Community
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Development Commission of the City of San Bernardino at its joint regular
meeting
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held on
, 2006 by the following vote, to wit:
June 5
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Commission Members:
Abstain
Absent
Aves
Navs
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ESTRADA
BAXTER
MCGINNIS
DERRY
x
--1L
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-L
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x
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16 KELLEY
x
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JOHNSON
--1L
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MC CAMMACK
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--'-/Y14 ?~
Secretary
-rJ.
The foregoing resolution is hereby approved this ~ day of
,2006.
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June
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P tric J. Morris, e n
Co unity Development Commission
of the City of San Bernardino
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Approved as to Form and Legal Content:
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Agency Coun eI
By:
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CDC/2006-16
EXHIBIT "A"
Legal Description
A PORTION OF LOT 5, BLOCK 27, OF THE CITY OF SAN BERNARDINO, COUNTY OF SAN
BERNJ\RI>WO, STATE OF CALIFORNI)\, AS PER MAP RECORDED IN BOOK 7 OF MAPS, PAGE
1, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS:
COMMENCING AT THE NORTHWEST CORNER OF SAID LOT;
THENCE SOUTH 150 FEET;
THENCE EAST 120 FEET;
THENCE NORTH 150 FEET;
THENCE WEST 120 FEET TO THE POINT OF BEGINNING.
)