HomeMy WebLinkAbout01-Council OfficeCI' ' OF SAN BERNARD-"'O - REQUE"'T FOR COUNCIL AC'''ON
From: Councilman Jac.'~c Reil1~~~Q''~flyf~' ~5i~bject: SPECIAL MEETING OF MAYOR AND
~~~~ ~~~ ~~ '}~ ~, j 7 COMMOtJ COUNCIL -- SEPTEMBER 14 ,
Dept: Council Office 1988 at 9:00 a.m.
Date: August 3 0 , 19 8 8
Synopsis of Previous Council action:
None
Recommended motion:
That the Mayor and Common Council adjourn its regularly scheduled
meeting of September 6, 1988 to 9:00 a.m. September 14, 1988 to
consider proposed agreement between City and State of California
for- acquisition of state-owned surplus land.
~~
Contact person: - Ken Henderson/Community Developmenthone;
Supporting data attached:
Yes
Ward:
FUNDING REfJUIREMENTS: Amount:
5065
2
Source: (ACCT. NO. )
(ACCT. DESCRIPTION)
Finance•
Council Notes:
75-D262 Agenda Item No.
C1~ ' OF SAN BERNARDI D - REQUE T FOR COUNCIL ACZ JN
STAFF REPORT
Since January 1988, the City Community Development Department staff has been
corresponding with the State Department of General Services regarding interest in
acquiring approximately 69.43 acres of vacant property, commonly known as Patton
Farms, and located in the general vicinity of Sixth Street, Ninth Street,
Del Rosa Avenue and Tippecanoe Avenue. Said property is vacant surplus land owned
by the State, and is currently offered for sale. Since January, the City has been
interested in buying the subject parcels for the development of affordable housing.
In June 1988, the Community Development Department was in contact by the Corps of
Engineers Real Estate Division expressing an interest in said land on behalf of
Norton Air Force Base for the development of approximately 400 units of off-base
housing for military personnel. Several meetings were held between the City,
Norton, and the Corps of Engineers. City staff also met with representatives of
the State Department of General Services regarding the acquisition of said land.
On August 29, 1988 all interested parties met again to discuss the purchase of
said property by the City at the market value price of $3,038,000.00, as agreed
upon by State and Corps appraisers. Upon approval by the Mayor and Common Council
the City proposes to open a fifteen (15) month escrow to acquire all 69.43 acres
with an earnest money deposit provided by Norton Air Force Base in the amount of
$300,000. In return, the City will provide the Corps of Engineers (on behalf of
Norton AFB) a transferable lease option which the Air Force will transfer to a
private developer once a developer is selected. The Corps of Engineers must
receive a transferable option from the City by no later than September 30, 1988, or
Norton AFB will lose its funding authorization from the project.
The State must receive approval of the Public Works Board before it can open escrow
and transfer title to the City. To effectuate this part of the process, the State
Public Works Board has called a special meeting to consider the City's request on
September 16, 1988. However, the State must receive an executed agreement from
the City before it can be approved by the State Public Works Board.
In order to meet each of the above stated deadlines, I am requesting a special
meeting of the Mayor and Common Council to be scheduled at 9:00 a.m., Wednesday,
September 14, 1988 so the Mayor and Common Council can consider the proposed
agreement between the City and the State of California.
I recommend adoption of the Form Motion.
Council Jack Reill S and Ward
KJH/cmp
August 30, 1988
IS-0264
CI"- .' OF SAN BERNAR®~ :O - REQUE T FOR COUNCIL AC' .ON
From: Kenneth J. Henderson, Director
Dept: Community Development
Date: September 12, 1988
Subject: ACQUISITION BY CITY OF STATE-OWNED
LAND FOR NORTON AIR FORCE BASE
HOUSING PROJECT
Synopsis of Previous Council action:
On September 6, 1988, the Mayor and Common Council adjourned its regularly
scheduled meeting to 9:00 a.m., September 14, 1988, to consider proposed
agreement between City and State for acquisition of State-owned surplus land.
Recommended motion:
Adopt Resolutions
v 7~y
Signature
Contact person: Ken Henderson/Maurice Oliva Phone:
Supporting data attached: Staff Report ~Ward:_
FUNDING REDUIREMENTS: Amount: N/A
5065
2
Source: (ACCT. N0.) N/A
(ACCT. DESCRIPTION) N/A
Council Notes:
Finance•
~s~ozez Agenda Item No
CI'~ ! OF SAN BERNARD`.~O - REQUE.sT FOR COUNCIL AC1 iON
STAFF REPORT
Since January, 1988, the City Community Development Department
staff has been corresponding with the State Department of General
Services regarding its interest in acquiring approximately 69.43
acres of vacant property, commonly known as Patton Farms, and
located in the general vicinity of Sixth Street, Ninth Street,
Del Rosa Avenue and Tippecanoe Avenue. Said property is vacant
surplus land owned by the State. Since January, the City has
been interested in buying the subject parcels for the development
of affordable housing.
In June 1988, the Community Development Department was contacted
by the Army Corps of Engineers Real Estate Division expressing an
interest in said land on behalf of Norton Air Force Base for the
development of approximately 400 units of off-base housing for
military personnel. Several meetings were held between the City,
Norton and the Corps of Engineers. City staff also met with
representatives of the State Department of General Services
regarding the acquisition of said land. On August 29, 1988, all
interested parties met again to discuss the purchase of the
property by City at the market value price of $3,038,000, as
agreed upon by State and Corps appraisers.
Based upon the above meetings and events, staff proposes the
following scenario to accomplish the construction of 400 units of
housing for Norton Air Force Base military personnel: The City
will enter into a fourteen (14) month escrow to acquire 69.43
acres of State-owned surplus land with an earnest money deposit
provided by the Corps of Engineers (on behalf of Norton Air Force
Base) in the amount of $300,000. In return, the City will
provide the Corps of Engineers a transferrable land option on the
subject property.
Norton Air Force Base will issue a Request for Proposals (RFP) to
select a private developer who will acquire land and design and
construct a 400 unit housing project with private financing.
When the developer has acquired said financing, the City will
complete the purchase of subject land from the State using a
portion of the developer's loan proceeds ($2,738,000) and
transfer title to the developer. Once the housing project is
completed, the developer must lease said project to Norton Air
Force Base. Norton will manage and maintain the complex to
provide off-base housing. Under an agreement, which will contain
certain renewable lease options at the end of a twenty (20) year
term, the Air Force will guarantee an annual income stream to the
developer for not less than the twenty (20) year period. The
housing project, however, could revert to the developer, with any
and all increases in residual value, at the end of the first
twenty (20) years.
9/12/88
75-0264
Staff Report
-2-
The Corps of Engineers must receive the above referenced
transferrable land option from the City by no later than
September 30, 1988, or Norton Air Force Base will lose its
funding authorization. Norton Air Force Base and Corps of
Engineers officials have indicated that the authorization for
said funding received under Public Law 98-115 Section 801 cannot
be recaptured next federal fiscal year.
The State must receive approval of the Public Works Board before
it can open escrow and transfer an interest in the property to
the City. To effectuate this part of the process, the State
Public Works Board has called a special meeting to consider the
City's request on September 16, 1988. The State, however, must
receive an executed agreement from the City before the sale can
be approved by the State Public Works Board.
Attached are two (2) resolutions and related agreements
submittted for consideration by the Mayor and Common Council.
The first resolution provides authorization from the Mayor and
Common Council to allow the City to enter into an agreement with
the State Department of General Services to acquire the subject
land as described above by entering into a fourteen (14) month
escrow for same. The second resolution provides authorization to
allow the City to enter into an agreement with the United States
Department of the Army (via the Corps of Engineers) which
provides the Corps an option to purchase the subject real
property for purposes previously described in this staff report.
Please note that said option to purchase will be transferred to
a private developer at a future date not later than November 30,
1989 (fourteen (14) months).
In order to meet all of the above deadlines, and guarantee the
City's participation in this much needed housing project for
Norton Air Force Base military personnel, I recommend adoption of
the resolutions as described herein.
~ V-
Kenneth J. Henderson
Director of Community De elopment
KJH/MLO/lab/1133
attachments
9/12/88