HomeMy WebLinkAbout16- Development Services ORIGINAL
CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION
From: Valerie C. Ross, Director Subject: Authorization to Proceed and
Resolution establishing a sales price and
Dept: Development Services setting a public hearing to consider the sale of
City property, generally located on the north side
Date: March 11, 2010 of Third Street, west of Waterman Avenue,
to the Redevelopment Agency. (APN's 0134-
191-13, 14).
File No. 15.05-272 MCC Date: April 5, 2010
Synopsis of Previous Council Action:
12-21-2009—The Director of Finance was authorized to amend the FY 2009/2010 budget to
reflect lowered revenue projections and implement budget balancing strategies, which included
the sale of City property to the RDA.
05-01-1962 —Resolution No. 6357 was adopted, approving a lease with the State of California
National Guard for City property located on the north side of Third Street, west of Waterman
Avenue, for 50 years, with an option to extend for 50 additional years.
05-15-1952—Resolution No. 2325 was adopted, approving a lease with the United States of
America Army Reserve for City property located on the northwest comer of Waterman Avenue
and Third Street, for 50 years,with an option to extend for 50 additional years.
Recommended Motion:
1. That the Director of Development Services be authorized to proceed with the sale of City
property generally located on the north side of Third Street,west of Waterman Avenue,to
the Redevelopment Agency; AND
2. Adopt Resolution. � ((J �/, ROO-,
Valerie C. Ross
Contact person: Laszlo "Les" Fogassy Phone: 5026
Supporting data attached: Staff Report, Maps, Resolution Ward: 1
FUNDING REQUIREMENTS: Amount: $500,000 proceeds from the sale of property
Source: (Acct. No.) N/A
(Acct. Description)N/A
Finance:
Council Notes:
Agenda Item No.
N-s-2oio
CITY OF SAN BERNARDINO— REQUEST FOR COUNCIL ACTION
Staff Report
SUBJECT:
Authorization to Proceed and Resolution establishing a sales price and setting a public hearing to
consider the sale of City property, generally located on the north side of Third Street,west of
Waterman Avenue, to the Redevelopment Agency. (APN's 0134-191-13, 14).
BACKGROUND:
On December 21, 2009, as recommended by the Ways and Means Committee,the Director of
Finance was authorized to amend the FY 2009/2010 budget to reflect lowered revenue
projections and implement budget balancing strategies, which included the sale of City property
to the Redevelopment Agency("RDA"). The property proposed to be sold to the RDA consists
of two parcels located on the north side of Third Street, west of Waterman Avenue. Both
properties are currently encumbered by a long term lease.
The parcel on the northwest comer of Waterman Avenue and Third Street(APN 0135-11-14)
consists of 2.57 acres. The parcel was leased to the United States of America for operating an
Army Reserve facility. The lease amount is$1 per year and is for the land only. The Army has
constructed several buildings on the site for its operations, consisting of a total of approximately
17,450 square feet. The lease effective date was 5/15/1952 and expires on 5/14/2052.
The parcel to the immediate west of this parcel (APN 0135-191-13) consists of 2.36 acres. The
parcel was leased to the State of California for operating a State National Guard and Armory
facility. The lease amount is $1 per year and is for the land only. The State has constructed a
building on the site for its operations, consisting of approximately 15,000 square feet. The lease
effective date was 5/1/1962 and expires on 4/30/2061.
Both leases state that upon termination of the lease, the City and Lessees, through mutual
agreement, may retain the buildings. The leases also state that the City, at its option, may require
that the sites be returned to their original condition, including demolition and cleanup of the sites
with proper notification by the City. The lease with the Army additionally states that the lessee
may make payment to the lessor in lieu of restoring the property to its original state.
The property on the southwest comer of Fourth Street and Waterman Avenue was at one time
leased to the United States of America for its Naval Reserve operations. That lease had similar
language regarding the lessee's responsibility for demolition and cleanup as the National Guard
and Army leases. However, when that lease expired in 1997, the Navy indicated that due to
budget constraints, they did not have the funds to demolish the buildings and the City absorbed
the cost of the demolition and cleanup. Due to the current economic constraints, it is plausible
that the City (or the RDA if property is sold) could be subject to a similar situation. This parcel
was ultimately sold to the RDA by the City.
Although a professional appraisal was not obtained on these properties,the RDA has estimated
the value to be $500,000 for both parcels. Leased properties are usually appraised using the
income approach. Since the parcels each only yield$1 per year as lease revenue, and because of
Staff Report—Continued
the encumbrance of a long term lease,both properties would be determined to have very little
value using this approach and the expense of an appraisal would not be justified in this situation.
The property has an undetermined future value, after expiration or termination of the leases and
demolition and cleanup of the sites. RDA has also indicated they may attempt to relocate the
lessees prior to expiration of the leases, the cost of which has not been determined at this time.
The former Navy lease site(southwest corner of Fourth Street and Waterman Avenue) was
recently sold by the RDA at$3.00 a square foot(land only). Applying that value to the property
on the northwest corner of Third Street and Watermen Avenue (Army lease) and applying a
lesser value of$2.00 per square foot for the adjoining parcel (National Guard lease) would yield
a combined rounded estimated value of$500,000. The lesser value for the National Guard lease
site is based on the parcel not being a corner parcel and having a smaller area.
Due to the many unknown facts relating to the future disposition of the two leases, it would be
difficult to arrive at a fair market value at this time. Since the RDA is better suited to be the
owner of these parcels for potential future development, staff recommends the sale and transfer
of both properties to the RDA at the estimated value of$500,000.
FINANCIAL IMPACT:
The City will receive $500,00 from the RDA in sales proceeds from both parcels.
RECOMMENDATION:
That the Director of Development Services be authorized to proceed with the proposed sale and
that the attached Resolution be adopted.
Attachments:
-Vicinity Map
-Site Map
-Resolution
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VICINITY MAP
CITY OF SAN BERNARDINO PROPOSED SALE OF CITY PROPERTY (APN
DEVELOPMENT SERVICES DEPARTMENT 0135-191 -13, 14) LOCATED ON THE NORTH
REAL PROPERTY SECTION SIDE OF THIRD STREET, WEST OF WATERMAN
indicates un—incorporated areas AVENUE, TO THE REDEVLOPMENT AGENCY
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1 RESOLUTION NO. COPY
2 RESOLUTION OF THE CITY OF SAN BERNARDINO ESTABLISHING A
3 SALE PRICE OF $500,000 AND DECLARING THE INTENTION TO SELL CITY
PROPERTY GENERALLY LOCATED ON THE NORTH SIDE OF THIRD STREET,
4 WEST OF WATERMAN AVENUE TO THE REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO AND SETTING A PUBLIC HEARING FOR MAY 3,
5 2010, TO CONSIDER SAID SALE.
6
7 WHEREAS, the City of San Bernardino, a municipal corporation, is the owner of the
8 hereinafter described parcels of real property, generally located on the north side of Third Street,
9 west of Waterman Avenue, in the City of San Bernardino, State of California, known as
10
Assessor's Parcel Nos. ("APN") 0135-191-13 and 0135-191-14 and more fully described in
11
12 Exhibit "A" attached hereto and made a part hereof;
13 WHEREAS, the Redevelopment Agency of the City of San Bernardino ("RDA") desires
14 to acquire these parcels of land for future development; and
15 WHEREAS, the Mayor and Common Council believe it is in the best interest of the City
16
that said portion of real property be sold to the RDA for future development; and
17
18 WHEREAS, said parcel known as APN 0135-191-13 is encumbered by a lease to the
19 State of California National Guard for $1 per year which expires on April 30, 2062, and said
20 parcel known as APN 0135-191-14 is encumbered by a lease to the United States of America
21 Army Reserve for$1 per year which expires May 14, 2052; and
22
WHEREAS, due to the encumbrance of said leases on said parcels herein described, City
23
24 and RDA staff have determined the parcels to have a nominal fair market value; and
25 WHEREAS, the City and the RDA have negotiated a sales price of FIVE HUNDRED
26 THOUSAND DOLLARS ($500,000) for both parcels herein described; and
27
28 �f- 5 - /O
03/02/2010 1 �.
1 RESOLUTION OF THE CITY OF SAN BERNARDINO ESTABLISHING A SALE PRICE OF $500,000
AND DECLARING THE INTENTION TO SELL CITY PROPERTY GENERALLY LOCATED ON THE
2 NORTH SIDE OF THIRD STREET, WEST OF WATERMAN AVENUE TO THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO AND SETTING A PUBLIC HEARING FOR MAY 3,
3 2010. TO CONSIDER SAID SALE.
4
5 WHEREAS, pursuant to Section 2.65.050 of the San Bernardino Municipal Code, City
6 owned property may be sold to another public agency without the need for competitive bid.
7
THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL
8 OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
9 SECTION 1. The public interest and convenience require the sale of City owned real
10
property generally located on the north side of Third Street, west of Waterman Avenue, in the
ii
12 City of San Bernardino, more fully described in said Exhibit "A".
13 SECTION 2. It is therefore the intention of the Mayor and Common Council of the
14 City of San Bernardino to sell said real property to the RDA.
15 SECTION 3. The Mayor and Common Council do hereby establish the sales price of
16 said real property in the amount of FIVE HUNDRED THOUSAND DOLLARS ($500,000) for
17
both parcels herein described; and
18
19 SECTION 4. The Mayor and Common Council of the City of San Bernardino do
20 hereby set a public hearing to be held on May 3, 2010, at the hour of 4:00 p.m. or as soon
21 thereafter as the matter can be heard, in the Council Chambers of City Hall, 300 North"D"
22 Street, San Bernardino, California, relative to the proposed sale.
23
SECTION 5. Notice of the public hearing shall be published in The San Bernardino
24
25 County Sun, a newspaper of general circulation, at least once prior to the public hearing and
26 shall be posted in at least 3 conspicuous places on the property at least (10) days prior to the
27 hearing.
28
03/02/2010 2
1 RESOLUTION OF THE CITY OF SAN BERNARDINO ESTABLISHING A SALE PRICE OF $500,000
AND DECLARING THE INTENTION TO SELL CITY PROPERTY GENERALLY LOCATED ON THE
2 NORTH SIDE OF THIRD STREET, WEST OF WATERMAN AVENUE TO THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO AND SETTING A PUBLIC HEARING FOR MAY 3,
3 2010,TO CONSIDER SAID SALE.
4
5 SECTION 6. Written and oral protest to such sale may be submitted and shall be
6 received at or prior to the public hearing. Written protests may also be submitted to the City
7
Clerk's Office, City Hall, 300 N. "D" Street, San Bernardino, California, prior to the public
8
9 hearing.
10 SECTION 7. It is the intent of the Mayor and Common Council to consider and
11 approve the sale of said property described herein, at said public hearing.
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
03/02/2010 3
1 RESOLUTION OF THE CITY OF SAN BERNARDINO ESTABLISHING A SALE PRICE OF $500.000
AND DECLARING THE INTENTION TO SELL CITY PROPERTY GENERALLY LOCATED ON THE
2 NORTH SIDE OF THIRD STREET, WEST OF WATERMAN AVENUE TO THE REDEVELOPMENT.
AGENCY OF THE CITY OF SAN BERNARDINO AND SETTING A PUBLIC HEARING FOR MAY 3,
3 2010,TO CONSIDER SAID SALE.
4
5 1 HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and
6 Common Council of the City of San Bernardino at a meeting thereof
7
held on the day of 2010,by the following vote, to wit:
8
9 Council Members: AYES NAYS ABSTAIN ABSENT
10 MARQUEZ
11 DESJARDINS
12 BRINKER
13 SHORETT
14
KELLEY
15
16 JOHNSON
17 MCCAMMACK
18
19 City Clerk
20
The foregoing resolution is hereby approved this day of 3010.
21
22
23 PATRICK J. MORRIS, Mayor
City of San Bernardino
24 roved as to form:
25
26 JAME . PENMAN, City Attorney
27
28
03/02/2010 4
EXHIBIT "A"
LEGAL DESCRIPTION
APN: 0135-191-13
APN: 0135-191-14
PARCEL 7 AND PARCEL 8 OF PARCEL MAP NO. 7140, AS PER PLAT
RECORDED IN BOOK 69 OF PARCEL MAPS, PAGES 1 AND 2, IN THE OFFICE
OF THE COUNTY RECORDER OF SAN BERNARDINO, STATE OF CALIFORNIA,
SUBJECT TO THE RESERVATION OF AN EASEMENT FOR STREET AND
HIGHWAY PURPOSES AS DESCRIBED IN RESOLUTION NO. 91-2 OF THE CITY
OF SAN BERNARDINO, RECORDED JANUARY 15, 1991 AS DOCUMENT NO.
91-016345, OFFICIAL RECORDS OF SAID COUNTY.