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Home My WebLink About27-Development Services CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: JAMES FUNK, Director ,.... 'L C" ,. .,>., j; .. . - Subject: Public hearing -4:00 p,m, - acceptance of oral bids for the sale of City parcels located at the southwest comer of Orange Show Road and Waterman Avenue. Dept: Development Services Date: September 12, 2002 File No. 15.05-223 Synopsis of Previous Council Action: MCC Date: 09/23/2002 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 Waterman 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 comer 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. 06-17-2002 - Resolution No. 2002-163 was adopted modifying fair market value for City parcel located at the southwest comer of Orange Show Road and Waterman Avenue Recommended Motion: 1. That the oral bid for Parcel One (APN 0136-431-34) in the amount of$ be approved. AND 2. That the oral bid for Parcel Two (APN 0136-431-35) in the amount of$ be approved. AND 3. That the oral bid for Parcel Three (APN 0136-441-26) in the amount of$ be approved. OR 4. That the Director of Development Services be authorized to initiate the transfer of Parcells) to the Redevelopment Agency. ~ t=" ~ James Funk from from from Contact person: LASZLO "Les" FOGASSY Supporting data attached: Staff Report, Maps. FUNDING REQUIREMENTS: Amount: None Source: (Acct. No.) N/A (Acct. Description) N/A Finance: Phone: 5026 Ward: 3 Council Notes: Agendaltt #d-1 lo11JD~ CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report SUBJECT: Public hearing -4:00 p.m. - acceptance of oral bids for the sale of City parcels located at the southwest comer of Orange Show Road and W aterman 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 Avenue. 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. Staffwas authorized to secure an appraisal on these parcels. The appraised values were $41,000 for parcell ($2.50 per square foot), $32,000 for Parcel 2 ($2.00 per square foot), $175,000 for Parcel 3 ($4.00 per square foot) and $17,000 for Parcel 4 ($1.00 per square foot). The City paid an average of$2.75 per square foot for these parcels in 1996. On February 20,2001, Resolution No. 2001-35 was adopted, setting the fair market value for the four parcels and giving Notice Inviting Bids, with bids due by March 20, 2001. 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 1 Environmental Assessment would need to be prepared. The Environmental Assessment was completed in November, 2001 and there were no negative environmental impacts noted. On March 4,2002, Resolution No. 2002-69 was adopted, confirming the fair market value amount of $175,000 and giving Notice Inviting Bids. No bids were submitted and staff was authorized to re-advertise for bids for this parcel and two additional parcels as shown on the attached map. The original appraisal on Parcel 3 was based on the assumption that the property could be developed commercially although the land use designation is light industrial. However, after obtaining several months of experience with the site and observing that the property is only capable of being developed with "right-in and right-out" access from Orange Show road, the site is now acknowledged by the appraiser to have limited value for retail development. After unsuccessfully attempting to sell this property on two occasions, it was staffs opinion that the site would be better suited for light industrial development and should be appraised as zoned (light industrial and office industrial/professional) rather than appraised as potentially a retail/commercial site. An updated appraisal was obtained from the original appraiser, based upon the existing land use designation of light industrial and office industrial/professional. The appraisal amount based on the existing zoning of the site was determined to be $132,000 ($3.00 per square foot) by Smothers Appraisal. On June 17,2002, Resolution No. 2002-163 was adopted establishing the fair market value for Parcel 2 at the revised appraisal amount of $132, 000. A Notice Inviting Bids was published in the Sun newspaper and several bid packages were sent out to interested parties. The bid opening was scheduled for August 21, 2002. However, no written bids were submitted. In addition to written bids, the established procedures provide for oral bids to be accepted. There has been some indication from one of the developers who had previously shown interest in the property that an oral bid may be presented. Details and terms of the bid will be presented at the time the bid is made. Staff Report- continued The Redevelopment Agency has indicated that in the event that no bids are submitted, the property could be marketed through the Agency. The terms and price for transferring the property to the Agency can be negotiated at a later date and submitted to the Mayor and Common Council for approval. FINANCIAL IMPACT: Revenue in the amount of at least $205,000 (Parcel One - $41,000; Parcel Two- $32,000; Parcel Three- $132,000) less closing costs if a successful bids accepted for all three parcels. RECOMMENDATION: Receive oral bids, if any, and approve the highest bid made and that proceedings be initiated to transfer any parcels not bid on to the Redevelopment Agency No Scale Highland Ave. 5th 51. Mill 51. ~ o c o u ~ Orange Show Rd. ~ F LOCA TION OF CITY OWNED PARCELS -, . . o VICINITY MAP EXHIBIT "1" 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 A VENUE ~ indicates un-incorporated areas ~ within City's Sphere of Influence Created by: L. Foqo55Y Date: 10//9/200/ I o <( o q:: i i --------.,..- 3nN3^ V -------t----- NV~~31 V M --- j i i i i i i i i i i i i j i i i I- UJ UJ g: Vl i i i i i'O ,t:) I I i ~---3riN3A V---t----lt------- i (.!) ! Z I ~ I ~ 0 ... (f) L 0::: <( LL ~ U Vl Z Z UJ I i i i i i j i ! 0::: ~, f- r w -.I -.I <( > .(1) c:: o - (I) ~ ~ (I) e .:: - (I) ~ cu a.. I") ..- ~ o I- (/)'2 (J) N m L ~ ~ - (I) ~ ~ --so~v en ::::J .c: ..... c 3: 0 .c: en >- t Q) 0.. 2 0.. .,ej "0 Q) , c 3: 0 >- :t: () +1 +1 +1 +1 ~~~= . . . 17 moo m III lO~mll) N(I')(I')Q) N~CO.... cDcDricli ~~"'",... 0) 0) !2 ~ C:>.I:: o I- I- " ---... ~~~~ .........0 III III III 0.0.0..-. 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