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Home My WebLink About30-Development Services CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: JAMES FUNK, Director Dept: Development Services \.t~~'I",.."'.'i.L Subject: Public hearing -10:00 am. - acceptance of oral bids for the sale of City property located at the southwest corner of Orange Show Road and Waterman Avenue. Date: April 3, 2002 File No. 15.05-223 Synopsis of Previous Council Action: MCC Date: 04/15/2002 02-20-2001- Resolution No. 2001-35 was adopted establishing fair market value and giving notice inviting bids for the sale of four City owned parcels located north and south of Orange Show Road, west of W aterman Avenue. 03-04-2002 - Resolution No. 2002-69 was adopted confirming fair market value and giving notice inviting competitive sealed and oral bids for the sale of City owned property located at the southwest corner of Orange Show Road and Waterman Avenue and setting the date and time of April 15, 2002, 10:00 a.m. for awarding a bid. Recommended Motion: I. That oral bids (if any) be received and that the bid from in the amount of $ for the City property located on the southwest corner of Orange Show Road and Waterman Avenue, per Bid Specification No. 15.05-223A, be approved and that the Director of Development services be authorized and directed to do all things necessary and prepare all necessary documents to bring the sale of said property to a conclusion. OR 2. That the Director of Development Service be authrorized to re-advertise for bids for City owned parcels (Parcel One- APN 0136-431-34, Parcel Two -APN 0136-431-35 and Parcel Three - APN 0136-431-23) located north and south of Orange Show Road and west of W aterman Avenue. ~J;~ Contact person: LASZLO "Les" FOGASSY Supporting data attached: Staff Report, Maps. FUNDING REQUIREMENTS: Amount: None Source: (Accl. No.) N/A (Accl. Description) N/A Finance: Phone: 5026 Ward: 3 Council Notes: Agenda Item No. 1b5J-o;r 30 CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report SUBJECT: Public hearing -10:00 am. - Acceptance of oral bids for the sale of City property located at the southwest comer of Orange Show Road and Waterman Avenue. BACKGROUND: On August 7, 2000, Resolution No. 2000-235 was adopted, establishing the right of way boundaries for Orange Show Road between Waterman Avenue and the Twin Creek Flood Control Channel, relative to the extension of Orange Show Road from Arrowhead A venue to Tippecanoe A venue. As a result of the fee acquisition of various parcels between Waterman Avenue and the Twin Creek Flood Control Channel (the remainder of Orange Show Road extension was acquired as easements), four remnant parcels remained. Staff was authorized to secure an appraisal on these parcels and on February 20, 2001, Resolution No. 2001-35 was adopted, setting the fair market value for the four parcels and giving Notice Inviting Bids for the four parcels, with bids due by March 20, 200 I. Only one bid was submitted for the parcel located on the northwest comer of Orange Show Road and Washington Avenue (Parcel 4). The bid was approved on April 16, 2001 and sale of that parcel has been completed. On April 16, 2001, staff was authorized to re-advertise a Notice Inviting Bids and market the remaining parcels through a real estate broker. Prior to contracting with a broker, it was decided that a Phase I Environmental Assessment would need to be prepared. The Environmental Assessment was completed in November, 2001 and there were no negative environmental impacts noted. Recently, this office received two offers for the purchase of Parcel 3, which is located at the southwest comer of Orange Show Road and W aterman Avenue. These offers were not submitted through a broker, thus no commission would have to be paid. Section 2.65.020 of the City's Municipal Code requires all real property valued at $25,000 or greater, shall be sold by competitive bid. Parcel 3 was appraised for $175,000, which was established as the fair market value by Resolution No. 2001-35. Although the appraisal was done approximately a year ago, it is staffs' opinion that the value would still hold. The valuation of the property at $175,000 equates to approximately $4.00 per square foot. The City purchased this parcel in 1996 for $120,360, which is approximately $2.75 per square foot. On March 4, 2002, Resolution No. 2002-69 was adopted, confirming the fair market value amount of $175,000 and giving Notice Inviting Bids. The parties that submitted the offers were mailed bid specifications. A Notice Inviting Bids was also posted and published, as required by law. Although no written bids were submitted by the bid deadline of March 27, 2002, oral bids may be made. The minimum starting oral bid must be at least in the amount established as the fair market value ($175,000) and subsequent bids must be in amounts at least $100 greater than any prior oral bid. Section 2.65.060 of the City's Municipal Code states that the City may accept a cash purchase or a note and deed of trust at the fair market interest rate. At this time, staff does not anticipate any oral bids to be made. There was an interested developer, however, who is considering bidding on all three parcels (Parcel One, Two and Three) but would need additional time to research the feasibility of developing all three parcels. If no oral bids are made or accepted, the Notice Inviting Bids would need to be re-advertised prior to the receipt of any further bids, written or oral. Staff Report- continued FINANCIAL IMPACT: Revenue in the amount of at least $175,000 less closing costs if a successful bid is accepted. RECOMMENDATION: Receive oral bids, if any, and approve the highest bid made. In the event no oral bids are received, staff recommends that authorization be given to re-advertise for bids for all three parcels. . , No Scale 330 5th 51. c ,; > ;0 <( c c E ~ ~ ~ " " - Iii c ,; <( c c ~ ~ Mill 51. " c c c u " Orange Show Rd. ~ F LOCA TION OF CITY OWNED PARCELS TO BE SOLD -, . . o VICINITY MAP CITY OF SAN BERNARDINO DEVELOPMENT SERVICES DEPARTMENT REAL PROPERTY SECTION Sale of City owned parcels north and south of Orange Show Road, west of Waterman Avenue ~ indicates un-incorporated areas ~ within City's Sphere of Influence Created by: L, Foqa~X'jY Date: 02////2002 )i~ I ----,3nN3Av----f---NVV\ll:l31VM- i i i i i i i @ ~ '" . I i i i '" z z ~ I i i i ! III ~- c3 i i i i 'i ~ "" I i i i i ~ ~ i i i --3:i:~:OOS--------- I i 5 i ~ Q i J g ~ 1 N ~ ~ *1 ~ o ! a; ~ ~ " (~; III e ~ Q; ~ co Q. o <t: 0, ~~ I i i i i o ~ - III ~ ~ " ~::; " 0, (\1'1~J~(){]ti) lill~JiI,~~ .11,.r~W'fJ)'@ oUi'~ "t9 "@ "!Ii Ocnz ZUJO -0- 0_1- 0::>0 <(O::UJ ZUJcn o::cn>- C/) WI-I- :J "tJ mZO:: .c ...... Q) ZUJUJ c C/) <(~o.. ;: 0 0. (/)0..0 (") 0 e N .c LLOO:: N C/) 0.C/) I LO >- >-:J o....Jo.. C! -e -e~ LO UJ....J .... 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