HomeMy WebLinkAbout18-Development Services
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: JAMES FUNK, Director
Dept: Development Services
Ci.."..../~~L
Subject: Oral Bids: 10:00 am and Awarding of Bid
--- Sale of City Water Department Property
located at the northwest comer of Little League
Drive and the 1-215 frontage road.
File No.15.05-215A
MCC Date: 09/04/2001
Date: August 23, 2001
Synopsis of Previous Council Action:
03-19-2001- Authorization to Proceed was given.
07-23-2001 - Resolution No. 2001-236 was adopted establishing fair market value and giving notice
inviting bids for the sale of City property located at the northwest comer of Little League Drive and the
1-215 frontage road.
Recommended Motion:
I. That the hearing accepting oral bids be closed.
AND
2. That the oral bid in the amount of $
be awarded to
OR
3. That the Director of Development Services be authrorized to proceed with preparation of a Tentative Tract Map
and secure entitlements for the development of this parcel.
r~
James Funk
Contact person: LASZLO "Les" FOGASSY
Supporting data attached: Staff Report, Maps
FUNDING REQUIREMENTS: Amount: None
Source: (Acct. No.) N/A
Phone: 5026
Ward:
5
(Acct. Description) N/A
Finance:
Council Notes:
, IJ//oJ_
Agenda Item NO.J.S
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
SUBJECT:
Oral Bids: 10:00 am and Awarding of Bid --- Sale of City Water Department Property located at the
northwest comer of Little League Drive and the 1-215 frontage road.
BACKGROUND:
In 1997, the City acquired approximately 95 acres of vacant land in the northwest portion of the City,
generally located northeasterly of the 1-215 Freeway and northwesterly of Little League Drive. This
acquisition was a result of a foreclosure action, which became necessary due to a default on assessment
payments for Community Facilities District No. 995 (Verdemont Infrastructure Fees). On October 3,
1997, staffwas authorized to proceed with the sale of this property. An appraisal was obtained from Len
E. Lechter, a General Appraiser. On April 6, 1998, authorization was given to advertise for bids for the
sale of the property. It was determined, however, that a five acre parcel, located immediately on the
northwest comer of the 1-215 Frontage Road and Little League Drive, be retained as a possible site for a
future fire station to serve the Verdemont area.
In 1998, the Fire Chief requested that a process be developed to study and adopt emergency service
delivery management and planning standards. The Mayor and Council approved the establishment of a
Fire Department Planning Standards Ad Hoc Committee at the September 21, 1998 Council meeting.
The committee's recommended standards were adopted by Mayor and Council in March of 2000.
Among the adopted standards is a recommended five-minute response time from fire station locations to
arrival at emergency incidents. The study indicates that the ideal location for a Verdemont Fire Station
would be in the vicinity of Palm and Kendall, just off of the 1-215 Palm Ave exit. The City owned five-
acre parcel, as described above, does not meet the five-minute standard.
The City's Fire Station Design Committee asked staff to review the availability of other vacant lands in
the Verdemont area as alternate sites. Staff recommended an alternate site in the general vicinity of
Kendall Drive and Palm Avenue. This site was recommended since it is more centrally located in the
Verdemont area and also due to other factors such as easier accessibility.
On March 19,2001, staff was authorized to proceed with the sale of the parcel with the proceeds ofthe
sale to be used towards the purchase of a fire station site in the vicinity of Palm A venue and Kendall
Drive. An updated appraisal was obtained from Len Lichter, and the fair market value was determined to
be $124,000. Section 2.65.020 of the City's Municipal Code requires that real property with a fair
market value of $25,000 or greater be sold by competitive bid to the highest bidder.
On July 23,2001, Resolution No. 2001-236 was adopted, setting the fair market value of this parcel at
$124,000 and giving notice inviting bids. The Notice was advertised in the San Bernardino County Sun
newspaper and the property was posted with a "For Sale" sign. Sealed bids were to be submitted by 2:00
p.m., Thursday, August 16, 2001. Although several bid packages were either mailed or picked up by
interested parties, none were submitted by the deadline.
Resolution No. 82-497 relating the disposition of City property also allows oral bids to be made,Ûprovided that the minimum oral bid is made in amount at least 10% greater than the highest written bid
submitted, and thereafter oral bids shall be in increments of $100. Since no written bids were submitted,
the minimum starting oral bid must be $124,000.
Staff Report- continued
If a successful oral bid is accepted, staff will prepare a Sales and Purchase Agreements which will be
submitted for your action at a subsequent meeting.
In the event that no oral bids are received, the Development Services Department could prepare a
Tentative Tract Map and secure entitlements for development of this parcel. Under the City's current
General Plan, this parcel is designated RL (Residential Low - 3.5 units per gross acre), with a minimum
lot size of 10,800 square feet. The net yield, allowing for streets, is estimated to be approximately 15
single family lots. If a Tentative Tract Map were approved for this parcel, the value of this property to a
develop would increase significantly. An element of risk for a developer would be eliminated,
conditions of approval would be known, land holding costs for a future developer would be reduced, and
development could occur more expeditiously. The Development Services Department has staff capable
of accomplishing this task. The approval of a residential Tentative Tract Map for the 5 acre site would
add value to the property.
FINANCIAL IMPACT:
Revenues from the proceeds of sale in amount of at least $124,000, less escrow and closing costs.
RECOMMENDATION:
Staff recommends that the hearing be closed and bid be awarded to the highest oral bidder, if any, or, in
the absence of oral bids, authorize the Director of Development Services to proceed with the preparation
and processing of a Tentative Tract Map for residential development of the 5 acre site.
Location of
City property
to be sold
No Scale
Highland Ave.
Base Line St.
5th St.
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Mill St.
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VICINITY MAP
EXHIBIT 1
CITY OF SAN BERNARDINO
DEVELOPMENT SERVICES DEPARTMENT
REAL PROPERTY SECTION
Proposed sale of City property located at
the northwest corner of the 1-215
Frontage Road and Little League Drive
~ indicates un-incorporated areas
~ within Cit 's S here of Influence
File No.: /5. ~S"' ~ ~ /!Jfj..
Created by: L, {:c)(j.A5.5
Date: 9-20-0 (
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