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Home My WebLink AboutR24-Economic Development Agency WM " RIGINAL CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY FROM: Emil A.Marzullo SUBJECT: Purchase of Property located in the North Arden Interim Executive Director Guthrie Redevelopment Project Study Area by the Redevelopment Agency of the City of San Bernardino from Caltrans (IVDA Redevelopment DATE: January 24,2011 Project Area) ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Synopsis of Previous Commission/Council/Committee Action(s): On December 9, 2010, Redevelopment Committee Members Johnson, Marquez and Brinker unanimously voted to recommend that the Community Development Commission consider this action for approval. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): (Community Development Commission) Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the Interim Executive Director of the Redevelopment Agency of the City of San Bernardino("Agency")to execute a Property Purchase Agreement by and between the Agency and Caltrans(IVDA Redevelopment Project Area) -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Contact Person(s): Brian Turnbull Phone: (909)663-1044 Project Area(s): IVDA Redevelopment Project Area Ward(s): 7th Supporting Data Attached: R1 Staff Report 0 Resolution(s)El Agreement(s)/Contract(s) 0 Map(s)0 Letter(s) FUNDING REQUIREMENTS: Amount: $ 63,600.00 Source: HUD Section 108 Funds Budget Authority: 2010/11 Budget Signature: Fiscal Review: Emil A-1%arzullo,Interim Executive Director Lori 0111z' ille Chief Financial Officer ------------------------------------------------------------- ---- --------------------- ----------------- ---------------------------------------------------------------------------------------------------- Commission/Council Notes: Cho HOC F/--:;D// ----------------------------------------------- ------------------------------------------------------------------------------- P:\Agendas\Comm Dev Commission\CDC 2011\02-07-11 North Arden Guthrie Property Purchase Agreement SR.doc COMMISSION MEETING AGENDA Meeting Date: 02/07/2011 Agenda Item Number: Y� t ECONOMIC DEVELOPMENT AGENCY STAFF REPORT -------------------------------------------------------------------------------—-------------------------------------------------------------------------------------------------------------------------- PURCHASE OF PROPERTY LOCATED IN THE NORTH ARDEN GUTHRIE REDEVELOPMENT PROJECT STUDY AREA BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FROM CALTRANS (IVDA REDEVELOPMENT PROJECT AREA) BACKGROUND: The Redevelopment Agency of the City of San Bernardino ("Agency") is the owner of 17.43 acres of vacant property in the area bounded by Highland Avenue, Arden Avenue, 20th Street and Guthrie Avenue in the area commonly known as the North Arden Guthrie Area. The site is the product of a land assembly project which combined 73 separate properties over the past 15 years. A future commercial development has been proposed for the site. One final parcel, owned by Caltrans, remains to be acquired to complete the assemblage of the Arden Guthrie site. Caltrans has agreed to sell the property for its appraised value, $63,600.00. During the past year, Agency Staff has worked with consultants and contractors to clear the site and prepare it for the proposed future commercial development. The final task in this process was removing the streets, curb and gutter and relocating the utilities. This work is now complete. CURRENT ISSUE: On January 10, 2011, the Agency entered into a Redevelopment Project Study and Exclusive Right to Negotiate Agreement with Home Depot U.S.A., Inc. and Mark Development, Inc. (the "Developers"), to study the possibility of developing the site into a retail center to include several retail stores and restaurants and to be anchored by a Home Depot store. Home Depot U.S.A., Inc. will purchase 8.93 acres and Mark Development, Inc. will purchase 8.50 acres. In addition, pursuant to the Agreement, Mark Development, Inc. agrees to purchase the additional .25 acres for a total of 8.75 acres. The Developers estimate the project will create 250 construction jobs, 363 permanent jobs, $37,200,000 in gross sales, $1,458,000 in annual sales tax revenue and$30,000,000 in assessed valuation. ENVIRONMENTAL IMPACT: None. This activity does not meet the definition of a "Project" under Section 15378 of the California Environmental Quality Act ("CEQA"), which states that a "Project" means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environmental. FISCAL IMPACT: $63,600 of HUD Section 108 funds have been budgeted for the purchase of said property. ----------------- ----------------------------------------------------------------------- COMMISSION MEETING AGENDA P:\Agendas\Comm Dev Commission\CDC 2011\02-07-11 North Arden Guthrie Property Purchase Agreement SR.doc Meeting Date: 02/07/2011 Agenda Item Number: __ _ - YilYitlYYIYWw`iWhYMLY1Yi Economic Development Agency Staff Report North Arden Guthrie Property Purchase Agreement Page 2 RECOMMENDATION: That the Community Development Commission adopt the attached Resolution. Emil A. Marzullo, nterim Executive Director ------------------------------------------------------------------------------------ P:\Agendas\Comm Dev Commission\CDC 2011\02-07-11 North Arden Guthrie Property Purchase Agreement SR.doc COMMISSION MEETING AGENDA Meeting Date: 02/07/2011 Agenda Item Number: �v"I Page 1 of 1 Margaret Fedor From: Brian Turnbull [bturnbull @sbrda.org] Sent: Thursday, February 10, 2011 10:48 AM To: Margaret Fedor Cc: Lou Schnepp Subject: RE: Item R24 Council Meeting 2-7-10 Margaret, Lou Schnepp will be handling the execution of the agreement. You don't need to get anything signed.Just send the documents back to us and we'll have Emil sign and complete the purchase of the property. Thanks. From: Margaret Fedor [mailto:Fedor_Ma @sbcity.org] Sent: Wednesday, February 09, 2011 5:07 PM To: Brian Turnbull Cc: Mayra Ochiqui; Lorraine Wyche Subject: Item R24 Council Meeting 2-7-10 Hi Brian, I would like to confirm whether or not you will be handling the execution of the Property Purchase Agreement with Caltrans on this item or if I am suppose to have the exhibit that was attached to the Council item signed. Please let me know as soon as possible. Thank you �(aryaw Cwt.. 'yCad(Ir aL2EG1l1117C blssrstav m 161e(-91 Clerk c f o3an c�ernardino (909)38-4�S002 2/10/2011 COPY 1 RESOLUTION NO. 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF 3 THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT 4 AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE A PROPERTY PURCHASE AGREEMENT BY AND BETWEEN 5 THE AGENCY AND CALTRANS (IVDA REDEVELOPMENT PROJECT 6 AREA) 7 WHEREAS, the Redevelopment Agency of the City of San Bernardino ("Agency") is a 8 community redevelopment agency duly created, established and authorized to transact business and 9 exercise its powers, all under and p pursuant to the California Community Redevelopment Law 10 ("CRL"), codified under Division 24, Part 1 of the California Health and Safety Code commencing 11 12 at Section 33000 and is authorized to construct improvements located within the approved 13 redevelopment project areas in the City of San Bernardino ("City") in accordance with the CRL; and 14 WHEREAS, the Inland Valley Redevelopment Project Area ("Project Area") displays 15 substantial and pervasive symptoms of blight and cannot be remedied by private parties acting 16 alone without community redevelopment assistance; and 17 WHEREAS, the Community Development Commission of the City of San Bernardino (the 18 "Commission"), as the governing board of the Agency, has authorized the Agency to assemble, 19 20 acquire real property and demolish blighted structures for community redevelopment purposes in 21 the Project Area; and 22 WHEREAS, on October 28, 2008, the Agency acquired the last of 73 properties located in 23 the North Arden Guthrie Area south of Highland Avenue between Arden Avenue to the east, 201h 24 Street to the south and the alleyway adjacent to Guthrie Avenue to the west (the "Properties") 25 within the Project Area; and 26 27 WHEREAS, the 73 parcels, three streets and three alleyways, including all easements have 28 been converted into a single merged parcel; and P:\Agendas\Resolutions\Resolutions\2011\02-07-11 Arden Guthrie Property Purchase Agreement CDC Reso.doc 1 I WHEREAS, one (1)parcel, owned by Caltrans remains in the Arden Guthrie Area; and 2 WHEREAS, Caltrans has agreed to sell the remaining parcel for its appraised value of 3 $63,600 to the Agency to complete the assemblage of Property; and 4 5 WHEREAS, the Agency desires to acquire the property and cause the development of the 6 Property; and 7 WHEREAS, on January 10, 2011 the Commission approved the Agency entering into a 8 Redevelopment Project Study and Exclusive Right to Negotiate Agreement with Home Depot 9 U.S.A., Inc., and Mark Development, Inc. ("Developers"); and 10 WHEREAS, the Developers plan to construct a commercial development which will create 11 250 construction jobs, 363 permanent jobs, $37,200,000 in gross sales, $1,458,000 in annual sales 12 tax revenue and $30,000,000 in assessed valuation. 13 14 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 15 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS 16 FOLLOWS: 17 Section 1. The information set forth in the above recitals of this Resolution is true and 18 correct. 19 Section 2. The Interim Executive Director of the Agency is hereby authorized by the 20 Commission to execute the Sales Agreement with Caltrans on behalf of the Agency in substantially 21 the form attached hereto as Exhibit "A", together with such changes therein as may be approved by 22 the Interim Executive Director of the Agency, Agency Counsel and City Attorney. The Interim 23 Executive Director of the Agency or such other designated representative of the Agency is further 24 authorized to do any and all things and take any and all actions as may be deemed necessary or 25 advisable to effectuate the purposes of the Agreement and make non-substantive modifications to 26 the Agreement. 27 Section 3. The Chairperson of the Commission is hereby authorized to accept the deed for 28 said property from Caltrans. P:\Agendas\Resolutions\Resolutions\2011\02-07-11 Arden Guthrie Property Purchase Agreement CDC Reso.doc 2 1 1 Section 4. This Resolution shall take effect from and after its date of adoption by this 2 Commission. 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 P:\Agendas\Resolutions\Resolutions\2011\02-07-11 Arden Guthrie Property Purchase Agreement CDC Reso.doc 3 1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING 2 THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT 3 AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE A PROPERTY PURCHASE AGREEMENT BY AND BETWEEN 4 THE AGENCY AND CALTRANS (IVDA REDEVELOPMENT PROJECT AREA) 5 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 7 Development Commission of the City of San Bernardino at a meeting 8 thereof,held on the day of , 2011, by the following vote to wit: 9 Commission Members: Ayes Nays Abstain Absent 10 MARQUEZ DESJARDINS 11 BRINKER 12 SHORETT 13 KELLEY 14 JOHNSON fr..r 15 MC CAMMACK 16 E 17 E a 18 Secretary 19 20 The foregoing Resolution is hereby approved this day of , 2011. 21 22 Patrick J. Morris, Chairperson 23 Community Development Commission 24 of the City of San Bernardino 25 Approved as to Form: 26 �"-- By: 1141 27 Agency Counse 28 P:Wgendas\Resolutions\Resolutions\2011\02-07-11 Arden Guthrie Property Purchase Agreement CDC Reso.doc 4 J 1 EXHIBIT"A" 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 P:W gendas\Resolutions\Resolutions\2011 102-07-11 Arden Guthrie Property Purchase Agreement CDC Reso doc 5 DIRECTOR'S DEED NO. DD 002472-01-01 SALES AGREEMENT-CASH TERMS For the purchase of the property located in the City San Bernardino, San Bernardino County, CA as described under the above-referenced deed number. The undersigned agrees to the terms of this option, and further agrees to pay a purchase price of: $63,600.00, or Sixty Three Thousand, Six Hundred Dollars to the California Department of Transportation (Caltrans), for the above-referenced property. The amount of$ 6.360 is paid herewith as the required non-refundable earnest money deposit. NOTE: This form must be completed and returned to Caltrans with at least the minimum option deposit (10% of purchase price) on or before close of business on January 14, 2011. The remaining balance of the purchase price shall be paid by Cash, Cashier's or Certified Check, or money order payable to the"California Department of Transportation" not less than five (5) days prior to the expiration of the option period. The option period shall expire on Friday,April 15, 2011. The property shall be conveyed by Director's Deed to: (indicate vesting here) Redevelopment Agency of the City of San Bernardino It is also agreed that all notices and matters arising in connection with this transaction will be given to purchaser or by mail addressed to purchaser at: 201 North E Street, Suite 301, San Bernardino, California 92401-1507 The purchaser shall pay all recording and documentary stamp tax fees, and any other applicable fees. Upon payment of the balance of the purchase price to the Department of Transportation, this Department will either record the Director's Deed, or deliver it to the buyer for the purposes of recording. The purchaser may take possession of said property when the Director's Deed is recorded. All Provisions of the "TERMS OF OPTION TO PURCHASE" (on the reverse side, or on page two) are hereby specifically incorporated by reference into the terms of this option, and purchaser agrees to perform each of the said TERMS. Date: Signed Phone No.909-663-1044 Date: Signed Phone No. The terms and conditions of this agreement are hereby accepted, subject to the approval of the California Transportation Commission and Caltrans. John Hotchkiss, Right of Way Excess Land Caltrans Excess Land Disposal Branch California Department of Transportation )an Bernardino-District 8 NOTE:The seller may be referred to in this transaction by several names including the"State of California,Department of Transportation," "Caltrans,""State,"California Department of Transportation,"and"Department of Transportation." i TERMS OF OPTION TO PURCHASE sale and/or rejection of any bids,the respective deposits of money CASH-CREDIT TERMS: This parcel is to be sold for Cash. All shall be refunded without interest. offers or sealed bids shall be presented under cover and shall be (4) The right,title and interest in the property to be sold shall not plainly identified as a sealed bid,with the appropriate sale number on exceed that vested in the State of California,and this sale is subject to the outside cover. all title exceptions and reservations whether or not of record. 5 The successful bidder/purchaser shall a all recording fees QUIRED OPTION DEPOSIT: All offers/bids must be O P pay g > „ompanied by CASH,CASHIER'S CHECK or MONEY ORDER documentary transfer tax,and other real estate transaction taxes or made payable to the CALIFORNIA DEPARTMENT OF fees by whatever name known,including escrow fees and broker's TRANSPORTATION in the amount of the required option deposit. commission,if any,and personal property taxes where applicable. OPTION PERIOD: The option deposit will be the consideration (6) Should the successful bidder/purchaser desire a survey of the for the option period,the length of which is specified on the"Option property,this may be accomplished by an independent surveyor at to Purchase." The option period shall commence on the day stated the bidder's/purchaser's expense. No warranty is made by the { on the offer letter or upon receipt of the option deposit,whichever is Department of Transportation relative to the ground locations of the first. The balance of the purchase price shall be paid on or before property lines other than monumented highway right-of-way lines. j (7) The successful bidder/purchaser shall be responsible for expiration of the option period. EXTENSION OF THE OPTION PERIOD: There may be complying with local building codes and ordinances. All properties situations wherein the option holder is unable to complete the Terms are sold in an(8) is"condition. of Option within the time allowed for reasons beyond his control. (g) All Caltrans employees may bid to acquire excess State owned J Under these circumstances,the State,at its discretion,may elect to properties except employees who have direct access to information extend the option period. A charge of I%of the sales price per not generally available to the public or who influence the purchase or month will normally be made for such extensions. This charge sale of Right-Of-Way or other real properties. SHALL NOT be applied toward the purchase price. (9)Property is sold subject to existing tenancies,if applicable. FORFEITURE OF DEPOSIT: The option deposit and any (10)The sale of this property does not provide approval from any { additional option deposit shall be NON-REFUNDABLE in the event other office of the Department of Transportation,the State of that the potential purchaser fails to exercise the option within the California,or any agency or department exercising jurisdiction over option period or fails to comply with any and all of the terms of the the ownership,use,development,or enjoyment of the property. option as herein provided. ESCROW and PAPERWORK PROCESSING: The State will SEALED BID/OFFER FORM: Sealed Bid/Offer must be handle the transfer of the property at NO CHARGE to the successful submitted on a form issued by the Department of Transportation. A bidder except for regular transfer and recording fees. This is not copy of the sealed bid/offer form accompanies this notice. If the bid considered to be a formal escrow as there is no disinterested third form does not contain an original signature of the bidder,the bid will party. Bidder/purchaser may elect to open an escrow within 5 be rejected. Bid form may be photocopied in case of multiple bids. working days of notice of bid/offer acceptance with a mutually [The"Option to Purchase"will be used in lieu of the sealed bid acceptable California licensed escrow company at form.] bidder's/purchaser's expense. PTION AGREEMENT: TITLE INSURANCE:If desired,successful bidder/purchaser may ,ealed Bids/Offers: The Department of Transportation will notify obtain a policy of Title Insurance at his own expense. the high bidder/offerer,in writing,that the sealed bid/offer received PAYMENTS: All payments shall be made(by mail)to the was the highest and will be submitted to the California California Department of Transportation,464 W.Fourth St.6th Transportation Commission(CTC)for approval. Upon award,the Floor,San Bernardino,CA 92401,in CASH,CASHIER'S CHECK bid form shall become an option agreement and the successful or MONEY ORDER,payable to the order of the CALIFORNIA bidder/offerer shall be bound to the terms specified in the Sealed Bid DEPARTMENT OF TRANSPORTATION. Payments may also Form/Option To Purchase. be delivered to the California Department of Transportation,Right of Vocal Bids: High bidder in vocal bidding will be required to sign an Way Excess Land Sales Office at 655 W.Second Street, San Option to Purchase Agreement upon the award of the sale to the Bernardino,CA 92410. The successful bidder's/purchaser's option highest bidder,subject to approval of the CTC. deposit will be retained by the State and not placed in an escrow or TIE BIDS: In the event that two or more high bids(Sealed Bids)are trust account and does not earn any interest. submitted which are equal in amount,the option shall be awarded to a high bidder chosen by lot at the time the bids are opened. SECOND HIGH BID: In the event that the high bidder(Sealed Bids)fails to exercise the option within the option period the State may,at its discretion,offer the option to the second highest bidder. If the second highest bidder accepts the option,the deposit requirement and terms of option to purchase shall be the same as stated in the Bid Form/Option To Purchase,except that the option period shall commence on the day the option is awarded by the State. LIMITING CONDITIONS: (1) The sale under this option is subject to the approval of Caltrans and the CTC. The option deposit money will be refunded without interest if the sale is not approved by Caltrans or the CTC. The purchaser may take possession when the Director's Deed is filed for recording(unless otherwise specified on the"Option to Purchase" form). '1 When the sale is approved by the CTC and the purchaser elects +xercise the option,the option deposit will be credited toward the a purchase price. (3) The State reserves the right to reject any and all bids/offer and to cancel the sale in part or in its entirety,any time prior to the recordation of the Director's Deed. In the event of cancellation of Page 2 1 EXHIBIT "A-1" 2 Area Map 3 [See Attached 1 Page] 4 I 5 I I 6 i 7 i 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 P:\Agendas\Resolutions\Resolutions\2011\02-07-11 Arden Guthrie Property Purchase Agreement CDC Reso.doc 6 t� tt t� ttl jt tt �, 1 tl i0 �t aCl' ��iry� !!'t jjif�'i� Jim 4 r� •s yt1I �4 •• m 1sE�,g IQ of Is is all kls r 9� ��a .re qi 91 is 4.11 1 Itl'Iir � [Sii OR. 9x4 9;4!y C 1!fly/is M s.q'q fit! t a t• � s E sCEisF 86 all 9�:�Ei1ICFsMt6EisF MR1F ' R ! Ir r! a( 1iI F Iris `5�1 Shp"a�;9 rrr °[sal= 11 rn !II� � Ir rYer�r. saaaas q ■fit C;r r � , g_ tfill tI QlCgas iAl It Rrt. 1� ± .011 ul i I � g. � ° I ' I ' I ° ; ° � ' I ° � = I 1w A In - i-- -- L--�—� L-, - 3r_a —" Y -- - "t ---- Qs&tFa .I. " IRI ° IRIAIRIAIRIRIa° Z R h 1 = W pl7E l ' R WWIa,xY+A Y � i I f { I I l Clik A l a-A e� Tai p� �i 1� �A 1� 1�11� �:,.. COUNTY ®Il' SAN BL.r 1LONl],JLO JLI�JLN® NOTE: The be o Cible for or its officers or agents ehdll not De responsible for the accuracy or completeness of digital Images of this mop. CITY OF SAN B ERNA RDINO EXHIBIT "B " _r ) IN ; TR �3 dill SECTION 31 FOR DEPICTION OF EXHIBIT "A " POR LOT 6 BLOCK 3 ' � N TF 41 .25'". Q d O � � DD002472-01 -03 70" ! � Q r z N J 6, i Q \ .- ,9 0 6, i rn <Is. R , y } 19, � ' C- LU - i LU a Q w x'39 i ' N iw ti- -- z DD0024 72-01 -01 _ co LCD o _ � M Q cn 119.91 , 119.91 ' DETAIL N.T.S DD002472-01 -01 = 10603.45 SQ.FT 20' DD002472-01 -03 = 990.24 SQ.FT r) NOTES STATE OF CALIFORNIA Ali dlstdnces ore in feet unless BUSS WS%�NSMRTATION AND HOUMGAGENCY J otnerrise noted. DEPARTMENT OF TRANSPORTATION RIGHT OF WAY DIRECTORS DEED LEGEND DD 002472 -01-01 <<� iEET DD 002472 ,001- 03 ACCESS PROHIBITED DISTRICT I COUNTY1 ROUTE I SHEET PM ISHEET NO TOTAL SHEETS 08 1 SBO 1 30 1 26.8 1 2 1 2 1 EXHIBIT "A-2" 2 LEGAL DESCRIPTION OF PROPERTY 3 That portion of Lot 6, Block 3, in the city of San Bernardino, County of San Bernardino, State of 4 California, as shown on the map of West Highlands, recorded in Book 5 of Maps, page 77, in the office of the County Recorder of said County, described as follows: 5 Commencing at the north westerly corner of Lot 8, Tract 71096, as per map recorded in Book 90 of 6 maps, Pages 61 and 62, in the office of the county Recorder of Said County; thence South 89° 43' 7 56" East along the northerly line of said Lot 8 a distance of 0.10 feet to the Point of Beginning; thence continuing along the northerly line of said Lot 8 a distance of 119.91 feet to the east line of a 8 20 foot alley as shown on said Tract 7106; thence along said east line North 00° 31'19" West 30.56 feet to the beginning of a 100 foot radius curve, concave easterly; thence along said curve through a 9 central angle of 22 152'39" a distance of 23.96 feet to the southwesterly right of way line as shown 10 on California Department of Highway's Right of Way Map No. 423013; thence along said southwesterly right of way line South 64°07'32" East 107.16 feet; thence along said right of way 11 line, South 02 107'57"East 68.72 feet to the Point of Beginning. 12 Contains 10,602 square feet, more or less 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 P:\Agendas\Resolutions\Resolutions\2011\02-07-I1 Arden Guthrie Property Purchase Agreement CDC Reso.doc 7