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HomeMy WebLinkAbout05- Economic Development Agency D E V E L O P M E N T D E P A R T M E N T OF THE CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY REQUEST FOR COMMISSION/COUNCII. ACTION FROM: KENNETH L HENDERSON SUBJECT: VALLEY AUTO SUPPLY Executive Director ACQUISITION DATE: May 9, 1994 Svnonaic of Previous Commission/Council/Committee Action(,), On November 2, 1993 the Community Development Commission approved a proposal to the State of California for the design and construction of the State Consolidated Offices and Caltrans Building on the Superblock. On March 22, 1994 the Community Development Committee, in closed session, authorized staff to acquire Valley Auto Supply in an amount not to exceed $950,000 Recommended Motion(s): (Community Development Commission) MOTION: That the Community Development Commission authorize the Executive Director to acquire fee title to Valley Auto Supply, accessors parcel numbers 134-141-I1 & 27, from Larry G. Haupert and Carolyn S. Haupert for the price of$924,000,plus estimated escrow and title fees of$3,600, and authorize the Executive Director to execute any and all documents necessary to complete the acquisition. OWLI L47 Administrator KENN TH J. HENDERSON Executive Director -------------------------------------------------------------------------------------------------------------------------------------------- Contact Person(s): Kenneth I AendetcnnMnvid I hImma„ Phone: 5081 Project Area(s): Central City Nnnh Ward(s): I Supporting Data Attached: Staff Report map FUNDING REQUIREMENTS: Amount: $927 6M Source: Rand Praceeds Budget Authority: Requested ---_---------------------------------------------------------------------------------------------------------------------------------------- Commiaaion/ o un ll Notes, _______________________________________________________________________________________________________________________ DJN:sprblk2.cdcolm) COMMISSION MEETING AGENDA MEETING DATE: 5/16/94 Agenda Item Number: DEN, — LOPMENT DEPARTM . NT STAFF REPORT --------------------------------------------------------------------------------------------------------------------- Valley Auto Supply Acquisition In this report, staff seeks authorization for the Executive Director to acquire property necessary to construct the Superblock Parking Garage. This property is currently the home of Valley Auto Supply on Fifth Street between "D" and "E" Streets. BACKGROUND Proposed plans for the construction of the State Consolidated Office Building and Caltrans Building on the western two-thirds (',5) of the Superblock call for the construction of a six- story parking garage. The proposed location of the parking garage is the current site of Valley Auto Supply (Attachment "A"). It is necessary to acquire Valley Auto Supply and demolish the building in order for construction of the parking garage to begin as scheduled. Valley Auto Supply will need to be fully demolished and archaeological studies completed before January 1, 1995. As such, it is necessary for the Redevelopment Agency to acquire title to the property at this time allowing Mr. Haupert to rent his building as he searches for a new location. Mr. Haupert will be allowed to rent from the Agency until September 30, 1994, at which time Valley Auto Supply will need to have been fully moved from the site. Demolition of the structure will occur shortly after October 1. Archaeological investigations will occur during demolition and continue afterward, as needed. Demolition and archaeology should take no longer than 90 days. ACQUISITION The Agency has offered, and Mr. Haupert has accepted (Attachment "B"), a price of $780,000 for the purchase of his property. In addition, the Agency will pay Mr. Haupert $124,000 for the replacement of warehouse shelving, which cannot be moved from Valley Auto Supply without its destruction. Staff has also estimated $20,000 in moving expenses which is based upon staffs and Mr. Haupert's desire to remain in downtown San Bernardino. The total cost of acquisition, including replacement costs of trade futures and estimated moving expenses, is $924,000. The Agency will also pay the cost of escrow and title fees, which are estimated to not exceed $3,600. LEASE At the close of escrow, Mr. Haupert will lease the Valley Auto property from the Agency at a rate of 40¢ per square foot triple net for 13.000 square leasable feet. Nit. Haupert will give 30 days notice prior to vacating the premises if lie vacates the premises prior to the final and ------------------------------------------------------------------------------------------------------------------------ DJN:sprbuk2.cdc0hn) COMMISSION MEETING AGENDA MEETING DATE: 5/16194 Agenda Item Number: S9 ,5/ DEVELOPMENT DEPARTMa,,T STAFF REPORT: VALLEY AUTO SUPPLY ACQUISITION Page 3 vacation date, which is September 30, 1994. Rent will be prorated for any portion of a month which Mr. Haupert leases the property. RECOMMENDATION The construction of the Superblock Parking Garage will require the acquisition and demolition of Valley Auto Supply. The Agency and Mr. Haupert have come to terms for this acquisition and W. Haupert has agreed to a final termination and vacation date. Based on the foregoing, staff recommends adoption of the form motion. KEN ETH J. ENDERSON, Executive Director Development epartment ------------------------------------------------------------------------------------------------------------------------- © DJN:sprb1k2.cdc01m) COMMISSION MEETING AGENDA MEETING DATE: 5116/94 Agenda Item Number: �� I Boom on ]SEES noun \ Rtttttrrtt ONES OEM l \ ttttttttt \\ Itttttrrttttttttti {tttttttr■ lutere�o uutonrn tottui Itttriitr■ ntttttr■rtutttl uucMettt IMENNSWIM amtuttl u u Ittti17.n8tt. tttan uttttrrttl Itttttutt ililgTil7ifi!1!1lt� uttouuuutttl urrutut movda trrn wntuotuttttl uttouoi I■■■■■■■■■■■■o■■, lttrttt�tr: ttr� Jlttrtt__�_ uuut■'----- u oto rri i����tttttt ` tttttttttl tt9GICC1�Otl ■: tttttttttl �tttttttttt\tt �ttttttttttltt rttttttttttmtt �ttttttMMtttt Ott -loan I Sonoma noma �EN VyYI�{m��� 0 mammon tttttttt�tt attWlrilyttt� nttttutttmtt nn�nuamrnn \� looms memo iiiiiiiiiiiii City or San Bernardino Economic Development agency mm Hond� DEVELOPMENT DEPARTMENT EtiD �'raM oRe C� May 3, 1994 Mr. Larry Haupert AAPCO AutomotiveWarshouse 1771 Railroad Street Corona, CA 91724 CERTIFIED MAIL _ Re: Letter of Undraretanding - Purchase of Valley Auto Supply Dear Mr. Houport, Thank you for wor" with Development Specialist David Norman, who, under my direction, has been working with you over the past two weeks on the deal points for the purchase of Velley.fwto Supply. As you know, the purchase and future demolition of Valley Auto Supply will enable us to construct the parking garage needed for the new buildings to be built-on the block, starting in October of this year. As per your conversations with Mr. Norman, the staff of the Economic Development Agency(pending approval from the Community DevelopmentCommisslon,expected May 16, 1994) and you have agreed to the following terms of purchase to be Incorporated into a Purchase Agreement and Lease, prior to the close of escrow: 1. Puao@j-►ttics: $790,000.00 The pu tess price represents: a. Reprbement of approximately 13,000 o.f. of wrrehouse space at $46.00 a s.f. ($'W,-000.00) and, b. Cost of 30,000 s.f. of land at $6.00 a s.f. Cash 20f North EStreet. M-Ird Floor-San Bernardoo.Ca6fo4r/a 02401-1607-(909)384-6081-(B00)232-1267-FAx(909)000-94f3 Attachment " B " LETTER TO MR. LAMY HAUPERT Letter of Understand" - Valley Auto Acquisition April 29, 1994 Page -2- 2. TRADWI1 11111110: $124,000.00 This Mat represents the replacement cost of warehObsa shelving, which cannot be moved from Vey Auto Supply. S. MOVOIJ, �S20.eoI.00 TOTAL; COST OF ACQUISITION: $924,000.00 You have also agreed with the Agency (subject to Community Development Commission dowaval) to: 1. LIAM,On a month-to-month basis,the Valley Auto Supply property for the fair mafltet rent of$5,200.00 a month, or $173.93 a day. This tease Is for 13,000 square leasable feet at the rate of$0.40 a square foot,triple net, In which AAPCO will be responsible for all maintenance,janitorial,utilities and taxes (W any). AAPCO will give 30 days notice of termination prior to vaca" the premises, If AAPCO vacates the premises prior to the final terminalon and vacation date, as stated below. Although not discussed with Mr. Norman,the lease will be effective the day escrow closes. As such, the first month's rent, and any prorated rent for a partlatmonth will be credited to the Agency In escrow. This credit should effe�reduce the amount of your taxation frorn the gain on the sale of the p"1110-014. 2. THE FINAL TERMINATION AND VACATION DATE of the lease will be September 30, 1994. Under no circumstances will AAPCO be allowed to occupy the premleta beyond this date. We believe the above Information summarizes your discussions with Mr. Norman and the understandings thafcame from your discussions. If you arc In agreement with the terms of this letter, please sign your name in the space provided below and return the original to our of las to t;l1r lon of David Norman. This letter w1R serve as ttwbasls of a purchase agreemmorWtrd lease to be drafted by our office for yob signature, +ou should LETTER TO MR. LARRY HAUPERT Letter of Underatafldlnp - Valley Auto Acqulsltlon April 29, 1994 Page -3- expect these docvmwts to arrive In your office within two weeks of our receiving this letter from you. If you have any qu"Illons or concerns, please do not hesitate to call David Norman at (909) 384-5081. Sincerely. 14(To wI Ln Ke neth J. Hen ett Executive Dire ry Ha rt AA PCO Di v 01 D�.�Igr..nt ip�dn DJN�]uupA�iUR .