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HomeMy WebLinkAboutR14-Economic Development Agency DEVELOPMElfT DEPARTMBBT OF THE CITY OF SAB BBRlWIDIlV REQUEST FOR COMM[SSIOR/COURCIL ACTIO. From: KENNETH J. HENDERSON Executive Director Subject: PROPOSED SALE OF 101 NORTH "I" STREET BUILDING Date: May 11, 1992 SvnoDsis of Previous Commission/Council/Committee Action(s): On May 4, 1992, the Community Development Commission received and filed a staff report regarding the proposed sale of property located at 101 North "I" Street. A joint public hearing on the sale of this property was scheduled for Monday, May 18, 1992 at 11:00 a.m. Recommended Motion(s): OPEN PUBLIC HEARING CLOSED PUBIC HEARING (Community DeveloDment Commission) MOTION A That the Community Development Commission authorize the Executive Director to enter into a Disposition and Development Agreement with Games for Fun International for the sale of property located at 101 North "I" Street. - OR - (Motions Continued on Next Page) ~strator ~OB Executive Director Contact Person(s): Ken Henderson/Stafford Parker Phone: 5081 Project Area(s): UPtown Ward(s): Three (3) Supporting Data Attached: Staff Report; Letters; Maps: Comparables Summary Reports FUNDING REQUIREMENTS: Amount: $ N/A Source: N/A Budget Authority: N/A Commission/Council Notes: KJH:EMW:lag:0682T COMMISSION MEETING AGENDA Meeting Date: 5/18/199~ Agenda Item Bomber: ) r 1 REQUEST FOR COMMISSI..... .~ 'COUNCIL ACTION Continued Proposed Sale of 101 North "I" Street May 8, 1992 Page Humber -2- ------------------------------------------------------------------------------- Recommended Motion(s) Continued... MOTION B That the Community Development Commission authorize the Executive Director to enter into a Disposition and Development Agreement with Loma Linda University for sale of property located at 101 North "I" Street. -OR- MOTION C That the Community Development Commission reject the proposals to purchase property located at 101 North "I" Street from both Games for Fun International and Loma Linda University. ------------------------------------------------------------------------------- KJH:EMW:lag:0682T COMMISSIOIl MEETING AGEImA Meeting Date: 5/18/1~9: I Agenda Item lIumber: ~ DP~ELOPME.T DEPART EBT OF THE CITY OF SAB BERIlARDIBC, STAFF REPORT PROPOSED SALE OF 101 NORTH "I" STREET PROPERTY Loma Linda University and Games for Fun International have both expressed an interest in acquiring property located at 101 North "I" Street (formerly the Mental Health Building). The Agency-owned property consists of three (3) parcels containing 48,709 square feet, improved with a 13,000 square foot structure and a 12,648 square foot parking lot (see attached Platt map). The site carries a light industrial land use designation. BACKGROUND In January of 1985, the Agency purchased this property for $599,400 based upon a contemporaneous appraisal of $590,000. Subsequently, on July 7, 1988, the property was reappraised by Edward G. Hill at a fair market value of $455,000 (assuming that it was first renovated for use as office space) and put on the market for sale. Two (2) offers substantially below the then fair market value were received and rejected. Over the past seven years the property has continued to experience physical decline due, in part, to extensive vandalism and a general lack of maintenance. A report prepared by building and safety officials in 1989 identified the potential need for rehabilitation in the event of reuse to include rehabilitation of air conditioning ducts, replacement of ceiling tiles, handicapped modification to restroom facilities, installation of a fire exit and fire sprinkler system, asbestos assessment/mitigation, and assessment of the roof for structural soundness to meet seismic standards and termite inspection. On February 3, 1992, staff conducted a brief visual inspection of the site, and noted that portions of the roof glass, electrical panels, heating ducts, thermostats, interior drop ceilings, walls and doors have been removed or damaged as a result of vandalism. A water main was shut off due to a leak in the basement and it is unclear as to whether the main has been repaired. Since this property has been vacant for more than 180 days, it must be adapted to meet current development code standards. The cost of bringing this building up to current code could be substantial. Upon review of eight (8) comparables (attached), staff estimates the fair market value of this property to be approximately $24.68/s.f. or $246,800. This estimate is based upon 10,000 s.f. of usable space rather than the total 13,000 s.f which includes a 3,000 s.f. basement. It also takes into account factors such as the generally poor condition of the structure as well as the limited functionality of the water damaged basement. ------------------------------------------------------------------------------- KJH:EMW:lag:0682T COMMISSION MEETING AGENDA Meeting Date: 5/l8/199~11 Agenda Item. Number: -+:J- DEVELOPMENT DEPAR'rMEhw, STAFF iEPORT Proposed Sale of 101 Borth "I" Street Kay 11, 1992 Page Bumber -2- LOMA LINDA UNIVERSITY PROPOSAL Loma Linda University, a non-profit institution, currently provides low cost basic health care services to San Bernardino residents through its Social Action Clinics (SAC) offered two (2) nights a week at the Frazee Community Center and one (1) night a week in north Redlands. The School of Public Health at Lorna Linda University is prepared to significantly expand these services to include such areas as dental care, family counseling, physical therapy and other disciplines provided in both day and evening clinics. This would require a major expansion of the University's physical facilities in either San Bernardino or Redlands. Lorna Linda has identified the 101 North "In Street property as being the appropriate size and location to establish their base clinic, with potential satellites to be added later. At this time, Loma Linda University would like to acquire this property based upon the following conditions: 1. Cash price of $50,000. 2. Lorna Linda would assume responsibility for all repairs and modifications necessary to utilize the space and to meet current code requirements. Buyer is to accept this property in "as is" condition with no expressed or implied warranties from the seller. 3. Should Lorna Linda be unable to provide low cost health care in this facility during the next ten (10) years, the ownership of this property would revert back to the Agency. Sale of this property to Lorna Linda University would benefit the City by providing expanded low cost medical services to the community. As a result of this expansion, Loma Linda anticipates increasing its annual operational expenditures from $55,000 to approximately $200,000 for direct medical services to the underserved residents of the. City. Approval of the Loma Linda University proposal would keep the building of the tax rolls, negating any potential flow of tax increment to the Redevelopment Agency. GAMES FOR FUN INTERNATIONAL PROPOSAL Games for Fun International wishes to expand its current business, which assembles, refurbishes and repairs indoor recreation equipment for wholesale and retail rental and sales distribution. Types of game equipment produced include pool tables, juke boxes, soda machines, pinball and video machines, neon signs and lighting equipment, and antique slot machines. Ken Renfroe, owner of Games for Fun International, originally transmitted an offer to purchase property located at 101 North "I" Street for $200,000 cash. The Agency provided a counter offer of $300,000 cash. On March 26, 1992, staff met with Mr. Renfroe to further negotiate the sale of this property. Alternatives brought up during this discussion are outlined below: KJH:EMW:lag:0682T COMMISSION MEETING AGENDA Meeting Date: 5/l8/19~~f Agenda Itea Jlumber: ---L:.1- DEVELOPMEIT DEP.ARnm~.__ STAFF REPORT Proposed Sale of 101 Borth "I" Street May 11, 1992 Page Number -3- 1. Cash purchase price of $250,000, owner to provide an additional $50,000 in beautification improvements. Mr. Renfroe would consider this offer only if the City permits construction of a billboard on the property. 2. Purchase price of $250,000, $200,000 in cash, with $50,000 balance to be paid by owner to Agency over mutually agreed time period and interest rate. Owner to provide an additional $50,000 in beautification improvements. Mr. Renfroe would request that the loan be structured in a manner so as to defer payments during this current period of economic downturn. 3. Cash purchase price of $220,000. Owner to provide an additional $50,000 in beautification improvements. In all cases, the Games for Fun International would be responsible for bringing the building up to current code and has agreed to accept the property in "as is" condition with no expressed or implied warranties. In researching alternative (1) staff has determined that sign regulations under the City's Development Code prohibits construction of any new billboard signs in the City. Mr. Renfroe's requested terms and conditions for a loan in alternative (2) would be unwieldy from a monitoring standpoint and tend not to favor the best interests of the Agency. Since our last meeting, Mr. Renfroe has agreed to a cash purchase price of $225,000, in addition to providing $50,000 in beautification improvements. This offer appears to be consistent with staff's estimate of valuation for the property. Games for Fun International is willing to provide landscaping improvements, new paint, signage and other facade treatments, as well as complete interior renovations. They plan to apply a common architectural theme which will tie their current building with the new proposed site. The company is currently located in a building it owns directly across the street. It is their plan to continue operating business at the current site and expand operations at the new proposed site. Games for Fun International currently employs seven employees and anticipates creating an additional twelve (12) jobs as a result of this expansion. Sale of this property to Games for Fun International would benefit the City by creating new jobs, eliminating some blighting conditions and promoting light industrial growth in this area. Rehabilitation, beautification and the occupation of this building would be a first step in ensuring light industrial reuse and pave the way for attracting other light industry to this area. Approval would also generate new tax increment funds to the Redevelopment Agency and possibly sales taxes to the City. KJH:EMW:lag:0682T COMMISSION MEETING AGENDA Meeting Date: 5/18/19~~ Agenda Item Number: ~ DEVELOPMENT DEPARTMEt'," STAFF REPORT Proposed Sale of 101 Borth "I" Street May 11, 1992 Page Number -4- CURRENT ZONING/PERMITTED USES The subject property is zoned for light industrial land use (IL). Games for Fun International's proposal to use the site for assembly and sale of game equipment is a compatible and permitted use in a IL zoned site. This proposed business expansion would appear to promote light industrial growth in the area and is consistent with the General Plan. Lorna Linda University's proposal to utilize the site for a medical facility is, however, not in keeping with permitted uses on IL zoned property. Use of this site for provision of medical services would necessitate a change of zoning to the least restrictive general commercial use (CGl), which would require a General Plan amendment. All General Plan amendments require review by the Environmental Review Committee, Planning Commission, and Common Council. It takes approximately six (6) months to complete the process of a general plan amendment. PARKIBG REOUIREMDTS The site currently provides 47 existing parking spaces (including adjacent parking lot). Medical office use proposed by Loma Linda (under CGl zoning) would require ten (10) parking spaces for the first 2,000 s.f. and one (1) parking space for each additional 175 s.f. for a total of 73 parking spaces, resulting in a twenty-six (26) space shortfall. Assembly, refurbishment and sale of game equipment proposed by Games for Fun, Inc., is in keeping with the IL land use designation and would require one (1) parking space for every 1,000 square foot for a total of thirteen (13) parking spaces which is adequately provided for by the 47 parking spaces existing on site. Attached for your information is a copy of letters from Lorna Linda University and Games for Fun International, Summary Reports for each of the proposed uses, comparables and a parcel map for the referenced property. Staff recommends adoption of the form motions A, B or C. 1Mb Director UlUUIT'H J. Development KJH:EMW:lag:0682T COMMISSIOB MEETING AGENDA Meeting Date: 5/l8/19.9r Agenda Item Number: ~ "AV 12 '92 18111 - SAMES FOR FUH P-: e 2 POOL TABLES I GA.ES May 1'3, 1992 "r. I(~nneth J Hendersen, Execu~ive Director Development Department. City of San Denna~dino 201 Nor1:h "E- 5t.reet San Bernardino~ CA. 92401-1507 Dear "r. Hendersen Games For Fun has been provi.ding Spel::iiSlt:y Family- Entertainment ite..,5i in San Bernardino since 1984.. We have progressed from a yeerly gross o~ Sl65,OOO, wi~h one employee, to over a milliDn in sales wi'th ..ven employees. We ar- committed t.o continue thi~ growt.h through ligh't .anu~ac1:urin9 and aS5embly of our own Billiard and Game Tabl&!i.. A City DMned property, IDCa~ed on ~he North Eas~ corner of Rial~o and -I" 5~reets, ~ets our needs~ It-s size and lDc~~ion, beinQ n@~~ ~o our main store, makes 1t ideal. I'. prgp~rgd ~D .aka a ~~raigh~ ~Drward cash o~fer of .225,OOO~ -fo,. thll p,-Dpvr'ty, as is.. In addit.icn I plan .facade changes en my presen~ storv th~~ will ~ie 11: in Ni~h ~he changes planned ~or ~he Rialto and "I~ StrV8~ building. I bRlieva 1~ will be very pleasing as one comes into ~hR ci~y, fr~ ~he W~S~_ Thi5 e,cpan~.ion wi 11 create new jobs iiPld incr-.ase t.he Tax Sese t.o t.he City. Ii my prDpo~al i5 excep~ed ] have ~arge~ed November J5, 1992 as .Y projec~ comple~ian da~e. I would be glad ~o answer any questions you or your .t.aff may have.. I -. available at. any t:iftle. 895 W. Rialto Avc., San 8ernardlno~ CA 92410. n4 885.a604 · FAX 714888-0659 ,4 . ,~DA.U"'/~ " .~-<\ -,:; en ..... II'R , 5 P32 ./!!,MA ~DA 7.lNIrERsrrY SdooI t1j PtJHi4 Ht4lrA lMII4 LituJg I C4/ijJnlilz 92350 (714) 824-4546 MX: (7/4) 824--4087 April 13, 1992 Tim Steinhaus, Administrator Economic Development Agency City of San Bernardino 201 North E Sjreet, Third Roor San Bernardino, CA 92401-1507 Dear Mr. Steinhaus: For the past 25 years, Lorna Linda University students and faculty have provided low cost health care for the citizens of San Bernardino. These Social Action Clinics (SAC) are currently offered two nights a week at the Frazee Community Center and one night a week in north Redlands. Over the past several years the demand for health services has escalated rapidly, resulting in crowded conditions, patients being turned away and unmet needs. ~ The School of Public Health at Lorna Linda, which supports and coordinates this program, is prepared to significantly expand these services to include such areas as dental care, family counselling, physical therapy and other disciplines provided in both day and evening clinics. To accomplish this will require a major expansion of our physical facilities in either San Bernardino or Redlands. Our annual operating expenses are also expected to increase from SSS,OOO now to around $200,000. Though the health care professionals are largely volunteers, expenses are incurred for supplies, lab tests, medicines and staff support. United Way and limited patient fees (S5 per medical visit) now covers the majority of these costs. In turn, the market value of this health care for our underserved residents is expected to increase from S200,000 annually to around S6OO,OOO annually with the expanded program. The building on the corner of Rialto and I Street in San Bernardino has been identified as the appropriate size and is in a good location to serve as our base clinic, with potential satellites to be added later. We would like to invite the City of San Bernardino to collaborate with us in this endeavor by providing this building to Lorna Linda at little or no cost. We will then assume responsibility for repairs and modifications necessary to utilize the space. This upgrade is expected If . Tim Steinhaus April 13, 1992 Page Two to cost over $200,000, which we plan to largely accomplish through volunteers, community participation and donations. If, for any reason, during the next 10 years we are u~able to provide low cost health care in this facility, it would reven back to the Cty of San Bernardino. Thank you for consideration of this proposal. I will be glad to meet with any appropriate group to discuss this further, and would also invite any interested persons to visit our current clinics. Sincerely yours, ~ IJd~ Richard H. Hart, M.D., Dr.P.H. Dean, School of Public Health Lorna Linda t,!niversity cc: Mayor William R. Holcomb Ken Henderson City Council /4 , . . , . . lCDMPsl IJIDUSftIAL ..C-00111-02-'1 01. .aD .erD&r41Do/.ilblaDd t244,000(a) l'-E/5 131-321-12 CA 12121 ~, C57-227C ( ) BUYER: "',C Obertfn Or. tutt.300 tan aIIIGLE-DDft ID~.~ aUILDI.O Doallal .. , Eydie 'erbiD, et a1 725 I. Lago It. . San .ernardino, CA .240. SELLER: ~ Arthur M. , MariaDDe W. Day 15'2 K. citruI Ave. .edland., CA .2374 MI'NI REPORT Essential details of this transaction were unavailable as of publication date. l If you have any Information regard- Ing this sale. please call toll-free 800/829-6156. FINANCING: -- lit a.elland. ..d "L ~ ./A. 2Dd I.ller '113,'27 ~ ru&. · PRIOR TRANSFER: ~raDlfer Val. 'C15,000.00 ( J LISTING BROKER: VnJuaOVD 725 .. IAilo ft. Ian .erDardiDo, CA .2408 VITAL DATA: Z.crow OpeDed I .'AV aecordlng Date. october II, 1"0 ZxchaDge ..0 Doc. .0. , ~. .153" (12".40 .) .ALS .alca . 12&&,000 (a) DOVD,..,.ent . t'0,073 I 25. auildlDI Iq.Ft. 1',200 (Ir ) .rlce'lq.Ft. . t15.0' Office .pace I ./Av Flr &.rea aatlo. .'Av Zapr. aatio . ,., Wear aul1t . 1"4 .artlD9 Ipace.. 14 .artlD9 aatlo I 0.' ape /,1000 If .over .. ./AV ~ru.. .eight . ./AV IODing I ./AV Acre. . 0.57' Land &.rea . 25,200 I II." Fronta,e . Irref\llar Lot DilleD.lonll Zrregular SELLING BROKER: UDkDOVD If '.::' (CCMI=tS) "el001'-OZ-" .: au ~ '400,000(0) '-WI! 1105 Icranton Rd., 7th Ploof, Ian DIego, CA 12121 . ~PSINCORPORATED . .'.V. ......: .:...... '.'. '.;~. -.;.;. ~.:.'. .-:.;.....:.-:.... _' .....' ',',: <. '.....;.' '. '..... ...., .:. '. ,', .;.;.....: . ;. :.:.:-:.~<.. .~.....:...:...:-:.:-.... ','_: ..I...~........?;i...:..:<....... ~ ~ :~ ..::~.~ <y.- '[ INDUSTRIAL BUYER: (714)"'-020' J_. C. I Y.f9lda II. Sc1meJ.deJ: 010 All GII bc:y11zul 220 K. 11xth It. laD "rIlUcI1Do, CA '2tl0 SELLER: .. L1IIIbeJ: Co. clo Jo.epb A. b%dy aox .... tipty l'ou,'A 153.. INCOME DATA: ..t.J: ~o hppl~~al Data (~~ LOAN DATA: ~/LElmD/UUlfC& 1at .~1Yat. .3'0,000 ~.Z:IIlIa _/Ay aaar ftIt ~ ~ ~:..:.;. r (11') 451.221' ................,...:-................:....... .........;................... . .. . - " . ',", 1IUD~a .......--.. 21.Z .. tip1and AYe. lu "mazd1Do, CA .2.05 VITAL DATA: CloaDg date: OctobeJ: 31, 1..1 DO_LL -R . : 3f51.. 1&1. 'd.oe : '.00, 000 (c) DowD pa~t: '.0,000/10' Kat _t be: ./I.Y Cap zate : ./1.. ~d.~le : _/Ay 1peDcl. Z'at.:. ./1.. a1dr ... ft : 15,000 (UX) .~J:loe/aq ft: '2'.1' 'J:kf qaoe.: 100 (Apx) 'azkg nUo: 1 epc/150 .~ Acze. : 3.2. 10AlDf : CSJ., C!.ty o~ ..8. _ .,. ~.) :. eov.~ : 11' .bee.. 1aDcI: ~.. .et otUee : .. Dock IU.gb :.0 O\rbcl cIooJ:. : 2 t'J:u. ba'b1: : 11' b.U. .eJ:ged: .0 %lapn' DUO: 'I' ~ade : .0 . . .. .. . ... . . . .00- - .....-.... ..........,.................. ",-';. . ... ..:. .... .......-:.. ....... ...... ..;.:..?..............:.....:. .....;......... .;......... ...:...;........ ..:.:...;~~\:..:.... ................... ........ ....... ...",~ LISTING: BROKERAGE SELLING: (lion. lD'901YecS pu p~pal) (RODe iD'901Yed pu priAc:J.pal) . ..~~,..~~::~:~....~:....~~;I!!:'~:~;<:~~~~:)Ot'~:~~::~!~:~*~::~~:~~~;:iC>Q:~~;;:~:::~:~.;:;:;;>.:;::;:~-t';%-~~4:X~:~;.;~=I<.~~~.Q~~~:::-.:x:~;;:.~:r(.~~~.;#::*~:::~::~,~:~::,:~:>;:,.;:;..;.;.<...' /~ ,tCCMIUSl ,: =O::r~~;::-W/5 COUPS INCORPORATED 1I05lcranton ReI., 7th Floor, San DIego, CA 12121 (111) U7-mC INDUSTRIAL DDtJSnIAL BOILDDG , ,. ...... ':;::~;~:~:;~~~:~~:;:"'~:::~;:;<~ ~~'/.';''';=~'~;';;''~Y~~'l;:'';~;..~;~;~~:..,~:~:~~)~(:~~",~~;:*~:;'~::;~~;":;::>:'~" :;';:""11':;'.:;:;';'. ..:.:..V;~:':~'~;':;~.":' . .. .' ...,. . '~~~;~~:;.::::::::~~......' ";'~"N,';'::::~;"jo~'",+~:,:;:;::~:;:;:;:,~;:::;:;~~~~:>>:~:::~:;~^~~::::::;~'" -" ..~~:;.;.;~: ..,,:;:.~,:~:,..~:.;;:~,:;.:~;:;:::;:.. ... . . . . . . . . . . . . . . "5 8. &11_a ft. Ian "mard1Do, CA .2e08 Il/lllIa1cola A. I Joyce A. 8m1tb 1'10 'J:1Dce Albert DJ:. It.1ft~.1de, CA .2507 ~;~~':;'~~~~';;'~<*~~;;;<;~:Jf~:~;~~:l;;;;~~;o;;~~;;;:;:::~~,~~~~:;~;~;~~~:;:~:,;,;;'~~:;'~;;;;;jl:~:::~~~~ ~. ~ SELLER: (11C)I"-522C Cupua ezu.ade WOJ: Cbru~ 0/0 .obert .. I'bc.llp.OD 2100 .. L1~~1. 1Iowl~a1D D2:. SaD "nazd1Do, Q .2C05 C'. "- INCOME DATA: amt GROSI ~~ DtCOlll f &quat.. ~o '0.2'/af./DO I.e..: .5' YacaACY <I J,5'5> ------......... GaOlS CltD DICCIm f '1,10' z.... ZXpeu.. ( 3' oz '0.11/.f/~) <t 2,151> -------~.--- f ..,152 '71,IOC LOAN DATA: arM/LDmD./au.IIICZ 1at. ..lla razvo '305,000 hau _/A. AIOI I'll! VITAL DATA: "0. date : IlaJ:cb 1, 1... Do=-nt . : 111.2 1&1. IJ:l_ I .no,OOO(c) DoWD p.~~: f305,000/50' a.~ De~ iDe: ...,152 Cap za~. I 10.1' ~DA.~l. I ./Ay 1peDd. za~.: _/Ay aleS; .q ft : 20, "2 (11'1') 12:10./.. ft: f2'.52 J~kq Qaoe.: 50 J&J:kg ~aUo: 1 ape/ClI at. acn. I 0.15 . 10D1Dg : XL, C1~J' of. ..... ag. (yz.) : 1 . eo".rap : 5" bee.. 1aA4: .0 Jc1: office: 11' Dock 1l19h :.0 Ovh4 door. : 2 ~J:U8. bgh~ : 11' aau ..ned: .0 Imprv zaUo: IC. !J:ade : .0 IIZ!' aJIBUA%, DeCIlE I.. .....J:.. ~::,:.:-:.;.:-. .. :.'.:.:.:.:.'.:.,.;. .:.:.' ...:.:.:.:...:.:.;.;.:.:.:.;.:.:.;.;.,.:.;.;.:.;.:-;.;.;.;.:.;.:.;.:.;.'.;.:.z.;.;.;.;.;.;.;.;.;.;.;.;.;.;.;.;.;.;.;.;.;.;.:.:.;.;.;.:.;.;.;.;.:.;.;.;.:.:.;.:~.:.;.;.;.;.:.;.:-:.;.:.:.:.;.;.;.:.;.~:.x.;.;.J.~:.:.:.;.:.;.:.;.:.;.;.;.;,.;.;.;.:.;.;.;.:.;.;.;.;.;.;.;.;.;.;.;.;.:.:.;.;.;.;.;,;~,~;,;,;<<-;,;,;,:,:,^.:.:.;.;.;.;.;.~;.;.>:.;.;~...;.;.:.:.;.;.;.;.;~.;.:.;.;.;.;.:.:.:.:.;.;.;.;.;.:.;.;.:.:.;,,,;,;,~;,;,,';':';';''':-v4 LISTING: ('14) 8.C-'.31 CeD~m:y 21 ... Ac:tloD "a1~y 11.2 &. B1ghlaad Ave. . 8&D BeJ:DUdiDo, CA .2C05 Lou1. Cantr.ll BROKERAGE SELLING: (11e) I.C-I.31 C.Dtuzy 21 - Ac:tloD a.al~y 1112 a. l1gh1ud Ave. SaD Bem&Z'd.1Jlo, (:& .2 C05 1.0111. Cutrell ;:~~~W~;~~~,.~:tJ)..:~~.~:o:~4....r~ .!!1. l!~~(~~~~::';f~(l'l:~.... :~..n....."~..~... :~:~:..!IWj.:....~J.~~W~;,;,;::;:~~:~' If lCOM~S) COMPS INCORPORATED ....-....1551-03-.0 .: au ~o 'C30,000(.) ,~/, II05lcnnton ReI., m. floor, IIn DIego, CA t21 Z1 J}W '1') 457-2274 . ...: :~---~~~):....~""" ~...\~,~~ "'~;~<. .... ..~ ..... . "\. .......;;:...~~~.~~~~~~~~:\~~':-"..._.... '.. ann aunDUlc; pw1lU) . . . . . . . . . . . . . INCOME DATA: %D1oZIMt.loD .~ a.y.ll~l. ............. ;. VITAL DATA: "0. dat.. t ~~ 15, 1... ~_D~ . I 355"0 *,al. .&'i.oe I .UO, 000 (.) DowD pa~t: 'C30,000/100' ..~ ..~ iDe: ./1..9 Cap &'at.. ./A9 IpeDcSabl. ./1.." IpeDcl. ~a~. ./1.." aleS; .. ft 20,151(01') .&'i.oe/.~ It '20.12 .&'k, ~oe. 220 (apx) 'Uk, ~at1o. 1"8pC/.5 af acn. : 2.11 100000g : ca, Ci.ty of ..B. Age w&'a) : ./1.9 Coft&'age : 2.,. bee.. luul: .0 l'elUUlt. : Vacut 1115 .. lit. V.alOD laD Bemud1Do, ca. .2.11 . ~ ...,.. ~ 8yuD Cb1lDg '221 I. till .~. Loa ADp1e., CA 10001 ~ SELLER: (C15) 1'1-3000 8&1.".1' ft~.. 010 GozdoD .. "..., Vioe .~..i.cSaD~ .,.." Oakpo= ft. '520 Oa.1t1aACS, Q 'C'21 x: c. . - LOAN DATA: .ot Applicable: all cuh aa1e ~aff f&'ODt: ./AY I'raffc .1M: ./A9 Impn nUo: 52. l'I:acle : .0 . . . . . '. '. ." . .... .... ~:;".~;........... .""..;.;,......;,;.....:.:...:.,...;,;.;.:...>;<0;0;.:.;.:.:.,...:.........;.;.;.........,....;.;...:.;..w...-:-;.:.;.;.,.....:.......;.:.;.;;.;.:.>>:.;.;.;,;.:,.;.;.:.;.;.:.;.;.;.;.;.;.;.;.;.:.;.:.;.:...;.....;..,...:.:4<.~~~:.;.;.:.;.;.;...;.;.;.;.:WN>;.;.:.;.:.:.:.~>>;..<~.>;.;.~;.;.;.;.;.:.:.:.......:.;.;.;y:.:~..:.:y;~.:.;.:.;.;.:.;.;.;.:.:.:.:.:...:.;.;.".:...:.;.;.;.;.:.;.:.;.:.;.:.:'-:':'''':':':':'.'::; .': :'..~1~ LISTING: BROKERAGE SELLING: (OsWlown) (ODbOVll) /J .- (COM~S) DC-115SS'-Ol-'O . ..... - ., :;:O=- U-D/3 . COUNINCORPORATED 1IOI8orM1on lid.. "" Ploof, .." Dleto,oeA 12111 (111) "'4274 "c"tJ RETAIL . . .. ~:~ . ~"~~:"('Q,. --- . . . . . . . . . . . . . .'0 W. .tIl ft. au "~o, C& 12.10 INCOME DATA: ..~.Z" t.o luppl.-nta1 Data -------- ------ . .- . '. ....~ BUYER: (111)'5'-"22 I'ouzth .t~..t .1ua ..taU Ctz, J.t.d 0/0 lluk Kau!mu "00 Mal~o.. AYe. 1,0. bpl.., CA '00" ,'):~,:~~~'1I';;-:::~.~~~~;;:-:~:~)~~cm'~~~~:~~::~_:';~~~'.....,. ~~ SELLER: ..... ~ . . . : ... ('14)18'-"11 ;. aouth.m Ca1Uoada Ga. Co. a/o DebZ"a J.. "'eS ~ .0. .ox 32.1 !'em1nal '9lftU J.oa ADgel.., CA .0051 ...:;,; ~~: -- LOAN DATA: am;JJ.l:NDDJ~ lat LiDcolD M.~'l ak "15,000 hau M/Ay 2Dd .zl..te '70,000 hz:ma _/Ay AIDf ~ VITAL DATA: "c. date : Octobu 21, 1.81 ~"Dt . : .03111 *1&1. .zloe : t'40,000(a,.) DowD paJ8Dt: t305,000/41' aat Mt iDe: ./Ay Cap nte : ./Ay IpeDdabl. : _/Ay Ipud. &"at.: ./Ay 81dg ., ft : 30,OOO(UX) .z1oe/., ft: '2..1' .zq' 8p&Oea: 31 ~azk9 za~o: 1 8pC/'" .f acne : 0." &0D1Dg : CO-2, City of .... ag. (yn) I 30(+) Ccma~a,. I .3. ax... 1aDcS: .0 l'eAaAt.. I VaoaIlt. (... I'zaff &ODt.: :I. 3Z-.t.b ft. 'l'za!~c .1de: ./Ay %lap" zaUo: ./AY .~~ade I ~.. ~A''''_ . . .;....:... __ ..'~ ..~.:.):-:.:...:-:-:...:..-:..,.,.....-. -_-'.'';'..:' o:...:....._.~.......;..~..:.......,....... ....:.. ..;...:,.:.:....:.:....:.;.;..;......:.,...~.:.:.:-:.~;.:...:.:.;..;..._.~,.~:.:.;.;.......;.;.;.:o.<',-:-:. ,;0:.....;.:.:-;.;....:...:-:-:.:.;.;... ..... .................:.~:.,_.. ':'. :.....;.;."';o:'W':..;.:..........~.;.:.:.:...;.;..; .;.~.: .<-:. .....~ USTING: ('14) '13:-.5'5 GrUbb , Ell11 C~~cla1 .... 2151 Z. 'D' It., St.. 101-& ODtaJ:lo, CI. .1., ,. Chrla Burback BROKERAGE ....:.......::~ 1 SELLING: ('14)'13-45'5 Grub!> , &111. C~Z'c1a1 a... 2151 &. 'D' at., at.. 101-& ODt.azlo, CA '1". ChZ"1. Ohm-ok .,) n.. ,-. _ .~.......,~.....~~........~.....,.........-.:.",.,.......:~~~ ~.#;c;;.("':A.;";.fll:..4'-" ^ ...~,.~............ r '(CCM~S] p{GO 8k"",,,lSJO-Dl-.0 '1 .aD ~o '.20,000(1.,0) 110. ear_don 1I&d.. 7th PIoor,"n DIego, CAml1 1.-a/3 (111) a7.22T' COMNINCO....ORATED . . 'A,' .' ". , ...,... .. . ;',."'.. ", t..r.......;.~~.~~....--..y:.:..:~.~:."4r:....A._-~.:.:<<...'~~:"~,"':...~"'.... ~.: .. . .~-:.:~~.~'.,~..... ~~:..,......:.:....;..,..,',.:.., 8urC;U-ftDJ1'1' orr%ca .OILDDI(; ...............................,.:-~::;...... ? VITAL DATA: bc. elate : OctobeJ: 17, 1181 ~Dt . : 381t81 *8&1. '~lce : .t20,000(1,c) Down payaat: .t20,000/100' ..t D.t iAc:: 8/1."1 Cap zat. : 8/1."1 IpeIld-1o\1. : 8/1."1 8pend. zate: 8/1."1. alad9 aq ft : 12,500 (UX) .~lce/.q It: .33.10 .~tg apaou: 2. .adtg zaUo: 1 8pC't31 .f acz.. : 0.51 &oDi.D9 : COl, CJ.~~ of .... &9. (y~.) : 1. Coge~a;e : 50' bee.. 1a1M1: .0 1Ib~ ~.~a: 1 1Ib~ .~orJ.e.: 1 ale.a~or : .OD. OFFICE r BUYER: .... Cowltr aoud of ac!uoaUoe 101 B. 'a' It. 'aD h=ard1Do, CA '2t10 SELLER: ('71C) 11'-0555 K/K Byman , Dozothy ShaD., et a1 c/o Shane lea1ty Co. 202 W. IU.a1to Ave. SaD hmard1Do, Q .2t08 ~.... ......................................................................,.................,...............'......,................ .. INCOME DATA: .ot Appllcable: .old ~o one~/ua.~ . (~ -- LOAN DATA: .ot: Appl1oa!)1e: &11 oaab .ale . . . . . . . . . . . . . 1.. 1IoaD~ai.D -"lev A.e. .aD ..~O, CA .2.01 .si . ........~ .~: ',r' 1mpJ:V zat.1o: 11. ~rade : .0 ., ~.; ..................................., .1w,"",' :f _. ," . ~ ", ,". ;";';';';'.' ......... ............. ...;.......-..~.;. .........:,.. ..........,.....~.:......;-::....... .........;...........;.....-......... ...........-:.............. ,", ........ ...:.......;.......;........y . ._.......>~;.,;...;.: :-........................;.......-..,......,.;.................""...'.........,....- .....-.........:-..;,...........................:-....;.,' .....,...... -.;...;.:...... SELLING: LISTING: BROKERAGE (SelleJ: J.. b~ok.r aDd zepJ:..ented ..If) (RODe 1DYOlgeC! per pr1aclpa1) ;:~~:i),;;~~<:~~~~m~:~:f~~l!':~~~~::~:?,;~~:;:,:;;~~~-::~:~~:~:*:~~z~,;@:~::*;~.:.:.~:.:~*~#..;.;:::~-:::~~*'*'*~.ri~~~:::c:~:;$~-::;:::...m~~:;~*~~;;:~~;~:::~:W:~f*,-~:"':':",,,,, .lCOM~SJ ItftAIL '.C-00217-07-'1 .1. 'aD ..rDarcl1ao/.i,bl&Dd' IC50,000(0) I-./t 155-1'2-37 . 1 4S7..a274 141. Obet1ln Dr. a""100 Ian CA 12121 aftAIL aUlLDIIIG RI.1m BUYER: Clll)CCO-l'IO .rop.rtf D... &IIaoo. c/o 31a BoughtoD 7'77 oakport It. 1520 oaJtlazut, CA .CI21 SELLER: D.lla A,De. Ora.f. c/o .afeva7 ..0. .OX 33" ~.ra1Dal ADD.X Loa Angel.., CA .0051 INCOME: ..fer ~o .uppl"'Dtal data l.~ ICAP RATE I ./Ay FINANCING: .o~ Applicabl., all ca.b a.l. - PRIOR TRANSFER: USnNG BROKER: ..ll~ ia broker - ~epre'.Dted ..If . . . - 2030 .. Del -.o.a a... .u....Z'IlU'cU.Do, C& .2C04 VITAL DATA: ..crow Op.Ded I a.cordlD, Date. .KcbaDge I Doc. .0. I n I .~ ..ICS . DoVD .a,.eDt I agl1diD, 'CI.ft, .rioe/'CI.J'~. I I'lr &r.. aaUo. lapr. aatlo I T..r aal1t . .arklD, .pac.a, .arklD, aat10 I IOD1D, I ~r.ffic I'roDt. I "r.ffic .1d. . Acr.. . . LaDd Ar.. I I'roDta,. I Lot D1.aeDa10D" .0 dara "7 31, 1"1 .0 205'1' CIC'5.00 1') '&10,000 CO) 'C50,000 I 100' 2',115 cwr ) '17.1' 0.22 7" 1"0 121 apK ... .pe I 1000 .f C2, 'aD ..nardiDo 12.IIt-Del aoaa 3K-LJ'DvoocS 2.710 121,0'7 I '3.71 J&"-LJ'Dvoocl JC7'-Del ao.. ApK J&7' a 3Ct' SEWNG BROKER: ID-boa.. brok.ra,. 4'! :. .~'. .. SI. III ~ .. .' , :, . . .; " ,))- ., '- .'. . , 'r . ..... ~ .... . ~ '. J.'~.; .:.. ;~~ . >..t ~,.;... . '& " : . -, . :' :::. ,.' ;~: f~~c~/~ ..:; ~~?~:'i:' ~. . ... . '. ., ~:;~ Ji:,',~ ~"':' -:! : '.. ' . .,. ..; . . . . . . ~: <, .; iG>j : ,:' . . , .... .. -4\ -.:1;\ I ~4' I.~ ~ ~. +d' .. / .:f, ,.:' , .~... ',~ ~ ,~::': i, .~.:., ~'.: ~. . -\ '. 'i;1 " .;: , .: , ' " .' :.~: " c:' ,.....~~. ~. :. . .... .,.', ..: . . , . ,". . " ;e' ". r , . . . . .," ..' ...1.. ',' .<" ..3 . '"'".' ,\' .::Hyr . 3 .. :.:. ,'.!;::.~K;~{!:-:: i~ a~ i~ .8 !I I. --- _.L_' ,.' . . t-::'~i;.~ :(~::f~ '; i"~ . -' " ,;~.;:t ~', I..~ .... ,'. " , ~ o " .' . '. . . o .:-::-r I > ' .. . .~ '. 14 · . SUMMARY REPORT OF A PROPOSED SALE OF REDEVELOPMENT AGENCY OWNED REAL PROPERTY WITHIN THE UPTOWN REDEVELOPMENT PROJECT AREA TO BILLY ARDT, INC. This Summary Report has been prepared pursuant to Health and Safety Code Section 33433 with respect to Agency owned real property acquired with tax increment monies. It is proposed that the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("Agency") sell to BILLY ARDT, INC., doing business as GAMES FOR FUN INTERNATIONAL AND BILLIARDS SURPLUS ("Developer") that certain parcel of real property identified as APN 134-331-20 & 23 & 24, located at 101 North "I" Street as set forth in the map attached as Exhibit A. BACKGROUND The subject property contains 48,709 square feet, is improved with a 13,000 square foot structure and a 12,648 square foot parking lot. The Developer proposes to purchase the property and improve it under the terms of the Disposition and Development Agreement. COST TO THE AGENCY The original and continuing cost of the agreement to the Agency, including land acquisition costs, clearance costs, relocation costs, the costs of any improvements to be provided by the Agency, plus the expected interest on any loans or bonds to finance the agreement are provided below: 1. Purchase Price $599,400 2. Closing Costs including escrow and reconveyance fees, legal fees, taxes, appraisals, admin costs TOTAL COST: $ 12,554 $ 15,529 S 4,370 *631,853 3. Maintenance (accumulative to date) 4. Utilities (continuing) ESTIMATED VALUE Over the past seven years the subject property has experienced physical decline due to extensive vandalism and a general lack of maintenance. A report prepared by Building and Safety officials in 1989 identified the potential need for rehabilitation in the event of reuse to include rehabilitation of air conditioning ducts, replacement of ceiling tiles, handicapped modification to restroom facilities, installation of a fire exit and fire sprinkler system, asbestos assessment/mitigation, assessment of roof for structural soundness to meet seismic standards and a termite inspection. /4 The estimated value of the interest to be conveyed or leased, determined at the highest uses permitted is $24.68/s.f. or $246,800. The estimate of fair market value was derived from a review of eight (8) comparables attached as Exhibit B. This estimate is based upon 10,000 8.f. of usable space rather than the total 13,000 s.f. which includes a 3,000 s.f. basement. It also takes into account factors such as the generally poor condition of the structure as described above as well as the limited functionality of the water damaged basement. PURCHASE PRICE The purchase price of the subject property is $225,000 cash, which is slightly below the $246,800 established fair market value. However, the Developer will also provide $50,000 in beautification improvements to include landscaping improvements, new paint, signage and other facade treatments. With the addition of beautification improvements, the $225,000 offer appears to be equitable and consistent with the estimate of valuation for the subject property. Due to the current downturn in economic climate, there is strong competition for the retention and expansion of businesses between cities, counties and states. If the Agency does not sell this property for the proposed sales price, the Developer may opt to relocate elsewhere. Although the Developer has expressed a preference toward staying in San Bernardino, such a search for alternative facilities could result in a loss of both business expansion as well as retention of a business currently located in the City. BENEFIT Sale of this property to the Developer would benefit the City by creating new jobs, eliminating blighting conditions and promoting light industrial growth in this area. Rehabilitation, beautification and the occupation of this building would be a first step in ensuring light industrial reuse and pave the way for attracting other light industry to this area. It would also generate new tax increment funds to the Redevelopment Agency and possible sales tax to the City. A copy of the form of Disposition and Development Agreement is available upon request and is set forth as attached in Exhibit B. A Joint Public Hearing of the City of San Bernardino and the Community Development Commission is scheduled for 11:00 a.m., May 18, 1992 in the Council Chambers of City Hall in San Bernardino. Director KJH:EMW:0676T J~ SUMMARY REPORT OF A PROPOSED SALE OF REDEVELOPMENT AGENCY OWNED REAL PROPERTY WITHIN THE UPTOWN REDEVELOPMENT PROJECT AREA TO LOMA LINDA UNIVERSITY This Summary Report has been prepared pursuant to Health and Safety Code Section 33433 with respect to Agency owned real property acquired with tax increment monies. It is proposed that the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("Agency") sell to LOMA LINDA UNIVERSITY ("Developer") that certain parcel of real property identified as APN 134-331-20 & 23 & 24, located at 101 North "I" Street as set forth in the map attached as Exhibit A. BACKGROUND The subject property contains 48,709 square feet, is improved with a 13,000 square foot structure and a 12,648 square foot parking lot. The Developer proposes to purchase the property and improve it under the terms of the Disposition and Development Agreement. COST TO THE AGENCY The original and continuing cost of the agreement to the Agency, including land acquisition costs, clearance costs, relocation costs, the costs of any improvements to be provided by the Agency, plus the expected interest on any loans or bonds to finance the agreement are provided below: 1. Purchase Price: $599,400 2. Closing Costs including escrow and reconveyance fees, legal fees, taxes, appraisals, admin costs TOTAL COST: $ 12,554 $ 15,529 $ 4.370 i63l,853 3. Maintenance (accumulative to date) 4. Utilities (continuing) ESTIMATED VALUE Over the past seven years the subject property has experienced physical decline due to extensive vandalism and a general lack of maintenance. A report prepared by Building and Safety officials in 1989 identified the potential need for rehabilitation in the event of reuse to include rehabilitation of air conditioning ducts, replacement of ceiling tiles, handicapped modification to restroom facilities, installation of a fire exit and fire sprinkler system, asbestos assessment/mitigation, assessment of roof for structural soundness to meet seismic standards and a termite inspection. /1 The estimated value of the interest to be conveyed or leased, determined at the highest uses permitted is $24.68/s.f. or $246,800. The estimate of fair market value was derived from a review of eight (8) comparables attached as Exhibit B. This estimate is based upon 10,000 s.f. of usable space rather than the total 13,000 s.f. which includes a 3,000 s.f. basement. It also takes into account factors such as the generally poor condition of the structure as described above as well as the limited functionality of the water damaged basement. PURCHASE PRICE The purchase price of the subject property is $50,000 cash, which price is substantially below the estimated fair market value of $246,800. However, it should be noted that Developer is a non-profit organization seeking to provide a needed public service for our community. The Developer anticipates increasing its annual operational expenditures from $55,000 to approximately $200,000 for direct medical services to the underserved residents of San Bernardino. If the Agency does not sell this property for the sales price stated, the Developer may not be able to establish a facility in San Bernardino and may seek to expand its Social Action Clinic in another city such as Redlands. Sale of this property to the Developer would remove the subject property from the tax rolls, thus negating the flow of tax increment funds to the Redevelopment Agency. BENEFIT Sale of this property to the Developer would benefit the City by providing expanded low cost health care services including dental care, family counseling, physical therapy and other disciplines to underserved San Bernardino residents. A copy of the form of Disposition and Development Agreement is available upon request and is set forth as attached in Exhibit B. A Joint Public Hearing of the City of San Bernardino and the Community Development Commission is scheduled for 11:00 a.m., May 18, 1992 in the Council Chambers of City Hall in San Bernardino. J. Development llSOB, Executive Director rtment KJH:EW:068IT J~ " NOTICE OF JOINT PUBLIC HEARING OF THE MAYOR AIm COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AIm THE COMMDBITY DEVELOPMENT COMMISSION NOTICE IS HEREBY GIVEN that the Mayor and Common Council of the City of San Bernardino and the Community Development Commission of the City of San Bernardino, California, will conduct a Joint Public Hearing on the sale of the Redevelopment Agency real property located within the Uptown Redevelopment Project Area, on the day, hour and place specified below: DAY: May 18, 1992 TIME: 11:00 a.m. PLACE: City Council Chambers of the City of San Bernardino City Hall, 300 North "0" Street San Bernardino, CA 92418 The real property proposed to be. sold by the Redevelopment Agency is located at 101 North "I" Street, identified as APNfI 138-331-20 & 23 & 24. The Redevelopment Agency proposes to sell said real property to either Loma Linda University or Games for Fun International which decision should be made in the public hearing. The Redevelopment Agency of the City of San Bernardino has available for public inspection and copying at a cost not to exceed the cost of duplication, at its offices at 201 North "E" Street, San Bernardino, California, the following documents: a. A copy of the form of Disposition and Joint Development Agreement for each proponent. b. A summary for each proponent which specifies: 1. The cost of the sale by the Redevelopment Agency, including land acquisition costs, clearance costs, relocation costs, the cost of any improvements to be provided by the Agency. 2. The estimated value of the interests to be sold, determined at the highest uses permitted under the redevelopment plan. 3. The purchase price which the buyer will be required to pay under the terms of the Disposition and Joint Development Agreement. In the event the total amount is less than the fair market value of the interests to be conveyed, determined at the highest and best use consistent with the redevelopment plan, the Agency shall provide as a part of the summary an explanation of the reasons for the difference. 1J ."-- J t-J On the day and at the hour and place specified, all persons having any interest in the sale of said real property described above may appear and be heard. Further information regarding the proposed sale may be obtained from the Executive Director of the Agency at 201 North "E" Street, San Bernardino, California. GIVEN BY ORDER of the Mayor and Common Council of the City of San Bernardino and the Redevelopment Agency of the City of San Bernardino, California. RachRf.~~,~ RACHEL KRASNEY, City Clerk City of San Bernardino Aevn cUlf:JYl.etb-~ tV, 1Lpu-~ KENNET J. HEND RSON, Secretary Community Development Commission of the City of San Bernardino