HomeMy WebLinkAboutCDC/2007-26
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RESOLUTION NO. CDC/2007-26
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO DECLARING THE PUBLIC INTEREST
AND NECESSITY OF ACQUISITION OF REAL PROPERTY BY THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FOR
COMMUNITY REDEVELOPMENT PURPOSES OVER THE PROPERTY
LOCATED AT 701 WEST 5TH STREET, SAN BERNARDINO, CALIFORNIA
(INFINITE STATE, INC. - APN: 0134-093-08 AND 09) IN THE CENTRAL
CITY NORTH REDEVELOPMENT PROJECT AREA
WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency"), a
9 public entity created pursuant to the California Community Redevelopment Law ("CRL") (Health
1 0 and Safety Code Section 33000, et seq.), is authorized to acquire and redevelop blighted properties
11 located in the City of San Bernardino (the "City"), in accordance with the CRL; and
12 WHEREAS, the Community Development Commission of the City of San Bernardino (the
13 "Commission"), as the governing board of the Agency, has authorized the Agency to assemble and
14 acquire real property for community redevelopment purposes in the Central City North
15 Redevelopment Project Area (the "Project Area"); and
16 WHEREAS, the Project Area displays substantial and pervasive symptoms of blight that
17 cannot be remedied by private parties acting alone without community redevelopment assistance;
18 and
19 WHEREAS, the Commission may serve as the "lead agency" as defined in the California
20 Environmental Quality Act CCEQA") for the purpose of conducting an enviromnental review in
21 connection with the acquisition ofthe Property; and
22 WHEREAS, on or about September 7, 2004, the Agency considered and certified
23 Enviromnental Impact Report SCH#2003031072 (the "EIR") in accordance with CEQA for the
24 Project Area, and the acquisition of the Property contemplated within the Plan and for the Project is
25 consistent with the ElR; and
26 WHEREAS, neither the Property Owner nor others who claimed an interest in the Property
27 made a CEQA challenge and the time has expired to do so; and
28 WHEREAS, Part I Crimes within the area of the Plan and Project were reported as 91
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1 incidents of crime for the period January 11 through April 11, 2006, 436 for 2005 and 426 for 2004;
2 and
3 WHEREAS, on November 7, 2005, the Commission adopted Resolution No. CDC/2005-39
4 approving a Redevelopment Study Agreement and Exclusive Right to Negotiate (the "Agreement")
5 by and between the Agency and Watson and Associates Development Company, Inc. (the
6 "Developer"), and adopted the Mitigated Negative Declaration for the Downtown Mixed-Use
7 Project Plan (the "Plan") and for the Project to be built (the "Project") described in more detail in
8 the CEQA Initial Study dated October 11, 2005; and
9 WHEREAS, the Agreement contemplates the Agency acqumng or obtaining control 0
10 parcels necessary for the Plan either through purchase negotiations or alternatively, by eminent
11 domain proceeding, if necessary; and
12 WHEREAS, the Agency has acquired real property in the Project Area; and
13 WHEREAS, Infinite State, Inc. is the owner of record (the "Property Owner") of real
14 property located at 701 West 5th Street, San Bernardino, California 92410 (APN: 0134-093-08 and
15 09) (the "Property"); and
16 WHEREAS, on December 14, 2006, the Agency mailed a notice to the Property Owner 0
17 the Property within the Project Area and informed the Property Owner that the Agency intended to
18 appraise the Property for possible acquisition; and
19 WHEREAS, the Agency retained the services of an appraiser to appraise the Property and
20 the appraiser has reported an opinion of the fair market value of the vacant improved Property; and
21 WHEREAS, based upon such real property appraisal report, the Commission authorized the
22 Agency to send a purchase offer to the Property Owner to attempt to purchase the Property at the
23 appraised value in lieu of condemnation, and on May 11, 2007, the Agency mailed a purchase offer
24 to the owner of record of the Property based on the appraised value of the Property described in this
25 Resolution; and
26 WHEREAS, the Agency transmitted the offer, via certified mail, to purchase the Property
27 situated within the Project Area, based on the appraised value on May II, 2007, to the Property
28 Owner at the address on file with the office of the County Tax Assessor, and the Property Owner
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1 received the Agency offer; and
2 WHEREAS, in the offer to purchase transmitted to the Property Owner, in accordance with
3 Code of Civil Procedure Section 1263.025, the Agency offered to provide up to $5,000 to defray the
4 expense of an independent appraisal should the Property Owner disagree with the offer to purchase
5 price presented by the Agency; and
6 WHEREAS, the Property Owner notified the Agency and disagreed with the offer to
7 purchase price as presented by the Agency; and
8 WHEREAS, Property Owner stated that he will obtain an independent appraisal of the
9 Property; and
10 WHEREAS, on June 29, 2007, the Agency received a letter from Jeffrey Z. B. Springer 0
11 the Law Offices of Demetriou, Del Guercio, Springer & Francis, LLP, 801 South Grand Avenue,
12 lOth Floor, Los Angeles, California 90017-4613 (the "Property Owner's Counsel") stating that he
13 represents the Property Owner and confirmed that the Property Owner disagrees with the appraisal
14 value used in the offer to purchase presented to the Property Owner by the Agency; and
15 WHEREAS, the Property Owner's Counsel desired confirmation that the Agency would
16 contribute up to $5,000 to cover the expense of the Property Owner in hiring an independent
17 appraiser; and
18 WHEREAS, the Agency has not been able to satisfactorily complete a negotiated purchase
19 with the Property Owner to acquire the Property for community redevelopment purposes; and
20 WHEREAS, on August 8, 2007, a notice of intent to adopt this Resolution was sent to the
21 Property Owner, via certified and first class mail, at the address of record on file at the office of the
22 County Tax Collector and at the last known address for the Property Owner, and notice was also
23 published in the Sun newspaper on August 11,2007 and August 18, 2007; and
24 WHEREAS, on August 8, 2007, a copy of the notice of intent to adopt this Resolution was
25 sent to the Property Owner's Counsel via certified and first class mail; and
26 WHEREAS, on August 13, 2007, the Agency received a letter from the Property Owner's
27 Counsel dated August 10,2007, stating that I) the Property Owner had retained an appraiser for the
28 Property; 2) the appraiser has communicated that the appraiser will deliver the appraisal report on
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1 September 9, 2007; and 3) a request be made to the Commission to defer consideration of the
2 Resolution of Necessity until after the receipt of the appraisal; and
3 WHEREAS, on September 4,2007, after not less than fifteen (15) days written notice to the
4 Property Owner, the Commission conducted a hearing for the purpose of affording the Property
5 Owner a reasonable opportunity to appear and be heard on the matters referred to in the Code 0
6 Civil Procedure Section 1240.030 and whether the Agency has met all other prerequisites for the
7 exercise of eminent domain to acquire the Property for community redevelopment purposes; and
8 WHEREAS, the Commission has determined as a result of such hearing on September 4,
9 2007, that the public health, safety and welfare require the Agency to acquire the subject Property
10 for community redevelopment purposes and to facilitate the Project.
11 NOW THEREFORE, BE IT RESOLVED THAT THE COMMISSION FINDS,
12 DETERMINES AND DECLARES AS FOLLOWS:
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Section 1.
The information set forth in the above recitals of this Resolution is true and
14 correct.
15
Section 2.
The real property to be acquired under the authority of this Resolution is
16 located in the Project Area in the City. The Property is more particularly described in the legal
17 description attached as Exhibit "A." The interest in the Property to be acquired consists of all of the
18 fee simple absolute title interest in the Property, and all of the right, title and interest of each person
19 and owner of the Property including the acquisition of each and every possessory interest and all
20 easements and appurtenances to the Property.
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Section 3.
On August 8, 2007, the Agency transmitted a notice of hearing to the known
22 owner of record (Infinite State, Inc.) at 1369 Tanglewood Street, Corona, California 92882-3776, a
23 notice was published in the Sun newspaper on August 11, 2007 and again on August 18,2007, and
24 copies of such notices of hearing are on file with the Agency.
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Section 4.
The Commission acknowledges receipt of the written reports and information
26 relating to the Project Area, including the Staff Report and Agreement between the Agency and the
27 Developer concerning the Plan, and the appraisal of the Property, staff reports, and oral reports and
28 information submitted to the Commission during the course of the hearing conducted on September
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1 4,2007.
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Section 5.
The Commission, on behalf of the Agency, finds and determines that the
3 hearing conducted by the Commission on this matter on September 4, 2007, was full and fair, and
4 that each interested person has been afforded a full and fair opportunity to present evidence and
5 testimony relating to assembly of land for the Plan, and the matters described in the Code of Civil
6 Procedure Section 1240.030, and the acquisition of the Property, and all interests in it, by the
7 Commission for community redevelopment purposes by the exercise of eminent domain and other
8 relevant matters.
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Section 6.
The Commission declares its intent to acquire the vacant improved Property
10 for the Plan and community redevelopment purposes in the name of the Agency in accordance with
11 the laws of the State of California, including the CRL and Health and Safety Code Sections 33391
12 and 33492.40. The Commission further finds and determines that all of the prerequisites to the
13 exercise of eminent domain by the Agency with respect to such acquisition of the Property for the
14 Plan have been met.
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Section 7.
The Commission has found and determined that the acquisition of the
16 Property for the Plan is an activity which is covered under a Mitigated Negative Declaration adopted
17 by the Commission on November 7, 2005, and an NOD was filed with the Clerk of the County on
18 November 10,2005.
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Section 8.
In accordance with the provIsIons of Code of Civil Procedure Section
20 1245.230 and 1245.245, the Commission finds, determines, and declares as follows:
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(a)
The public interest, convenience and necessity require the acquisition of the Property
22 for the Project, as necessary to alleviate conditions of blight in the Project Area, which are
23 documented and described in more detail in the EIR and CEQA Initial Study dated October 11,
24 2005, and to provide for the orderly redevelopment of the Property and other real property included
25 in the Project Area. The assembly and redevelopment of the Property is necessary as the Project
26 Area displays a number of conditions of blight, including, without limitation, prevalence of absentee
27 owners, high volume of code compliance cases, crime statistics substantially higher than the City
28 rate, the presence of old structures that show signs of dilapidation and deterioration and small or
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1 substandard lot sizes within the Project Area, including the subject Property, and a diverse pattern 0
2 land ownership which prevent or substantially hinder the economically viable use of such real
3 property in its present condition. Acquisition and assembly of the vacant improved Property for
4 community redevelopment purposes for the Plan and the Project, together with other lands already
5 owned by the Agency in the Project Area, will foster the elimination of blight and assist with the
6 redevelopment of the Project Area, and assist with elimination of blight in other lands in proximity
7 to the Project Area. For the period of January II through April II, 2006, the number of Part I
8 Crimes within the area of the Plan and Project were 91. For the 2005 period, there were 436 Part I
9 Crimes. For the 2004 period, there were 426 Part I Crimes. For the period of January II through
10 April 11, 2006, this equates to 312.69 Part I Crimes per 1,000 people. Part I Crimes include murder,
11 rape, assault, robbery, burglary, grand theft auto and other theft. Crimes such as drug
12 use/possession/sale, panhandling, prostitution, etc., are not included in the figures. The Plan and the
13 Project include, without limitation, mixed income and mixed commercial and residential uses.
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(b)
The Project is planned or located in a manner that will be most compatible with the
15 greatest public good and least private injury. The Plan and the Project are planned or located in the
16 manner that will be most compatible with the greatest public good and the least private injury in
17 light of the fact that the real property included in the Project Area displays a number of symptoms 0
18 blight. The Plan and the Project shall also facilitate the completion of a land assembly program
19 previously initiated by the Agency and foster the reuse of a developed urban area that has stagnated
20 in recent years under the burdens of economic obsolescence, small lot size, diverse ownership,
21 absentee owners, tenant occupancy, high crime and code compliance cases, property tax liens, and
22 inadequate public improvements. The Agency is authorized to exercise the power of eminent
23 domain under Article I, Section 19 of the California Constitution, Health and Safety Code S 33391
24 and the California Eminent Domain Law (Code of Civil Procedure, Title VII, Chapters 1-12, S
25 1230.010 et seq.) to acquire the Property.
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(c)
The Property described in this Resolution is necessary for the Plan and the Project, as
27 its acquisition and reuse for the Plan and the Project is part of a neighborhood plan to eliminate
28 blight and provide for the redevelopment and improvement of the other lands owned by the Agency
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1 within the Project Area.
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(d)
(e)
The Commission has not made a predetermination to proceed with the Project.
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The purchase offer required by Government Code Section 7267.2 has been mailed to
4 the owner of record of the Property by the Agency, and the Agency has not been successful in
5 acquiring the Property based upon the conditions contained within the offer. The Commission is
6 hereby requested to approve its acquisition of the Property for assembly for the Plan and the Project.
7 The offer to acquire included compensation for all property rights and interest taken or damaged.
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(1)
(g)
The environmental processing was accomplished according to law.
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Notice of this hearing was adequate.
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Section 9.
(a)
The law firm of Lewis Brisbois Bisgaard & Smith LLP, as legal
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counsel to the Agency ("Agency Counsel"), is authorized and directed to prepare, institute and
12 prosecute in the name of the Agency such proceedings in the court having jurisdiction, as may be
13 necessary for the acquisition of the Property.
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(b)
The sum payable by the Agency as probable compensation for the acquisition of the
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Property by eminent domain, as determined by the appraisal, may, in the discretion of Agency
16 Counsel, accompany the filing of the complaint and may be deposited as follows: (i) with the State
17 of California in the manner provided by law, or upon the recommendation of Agency Counsel to the
18 State Treasury; or (ii) at the election of the person(s) who may claim an interest in the Property to be
19 acquired by such condemnation proceedings, in such other manner as such interested person(s) may
20 request in writing, subject to the approval of the Executive Director of the Agency and Agency
Counsel.
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(c)
Agency Counsel is also authorized, subject to the approval of the Executive Director
23 of the Agency, to engage in settlement negotiations and, if possible, arrange for purchase of the
24 Property in lieu of condemnation at the appraisal price prior to or subsequent to filing a
25 condemnation complaint to commence acquisition of the Property by eminent domain.
Section 10. The Secretary of the Commission is authorized and directed to certify the
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27 adoption of this Resolution. This Resolution shall take affect upon adoption.
28 III
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO DECLARING THE PUBLIC INTEREST
AND NECESSITY OF ACQUISITION OF REAL PROPERTY BY THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FOR
COMMUNITY REDEVELOPMENT PURPOSES OVER THE PROPERTY
LOCATED AT 701 WEST 5TH STREET, SAN BERNARDINO, CALIFORNIA
(INFINITE STATE, INC. - APN: 0134-093-08 AND 09) IN THE CENTRAL
CITY NORTH REDEVELOPMENT PROJECT AREA
PASSED, APPROVED AND ADOPTED this ~ day of September
,2007.
I CERTIFY that the foregoing Resolntion was dnly adopted by the Community
8 Development Commission of the City of San Bernardino at its j oint regular
meeting
9 held on September 4 , 2007 by the following vote, to wit:
10 Commission Members: Aves Nays Abstain Absent
11 ESTRADA X
12 BAXTER ~
13 BRINKER X
14 DERRY X
15 KELLEY X
-
16 JOHNSON -1L
17 MC CAMMACK
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19
l-!2
Secretary
20 The foregoing Resolution is hereby approved this ,f 17/ day of September
21
,2007.
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Approved as to Form:
~~~~\ -
Esther Estrada Vice Chairperson
Community Development Commission
of the City of San Bernardino
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26 By:
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/S/[Jinw.t/w- ~. Sa&-
Agency Counsel
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