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07.C- Public Works
RESOLUTION (ID #2731) DOC ID: 2731 A CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION Sale of Property From: Tony Frossard M/CC Meeting Date: 02/18/2014 Prepared by: Ryan Sandoval, (909) 384-5140 Dept: Public Works Ward(s): 1 Subject: Resolution of the Mayor and Common Council of the City of San Bernardino Establishing a Fair Market Value and Minimum Sale Price for Certain City Owned Parcels of Real Property Located at 241 E. 9Th Street, and Giving Notice Inviting Competitive Sealed and Oral Bids for the Sale of Said Property. (#2731) Current Business Registration Certificate: Not Applicable Financial Impact: All net sales proceeds will go to the City's general fund. All City expenditures relative to this sale (staff time, escrow,title and closing costs, etc.)will be paid for from the sale proceeds. Motion: Adopt the Resolution. Synopsis of Previous Council Action: 06/18/1963 - Resolution No. 6809 - Authorizing the execution of a (50) fifty-year lease with the San Bernardino County Society for Crippled Children and Adults, Inc. (Easter Seals), from 06/20/1963 through 06/20/2013. 07/21/2008 - Resolution No. 2008-291 was adopted, terminating the current lease with San Bernardino County Society for Crippled Children and Adults, Inc. and authorizing the execution of a new 50 year lease with Easter Seals Southern California. 07/16/2012 - Resolution No. 2012-204 was adopted, tenninating the lease between the City of San Bernardino and Easter Seals of Southern California, Inc., for City owned property located at 241 E. 91h Street, San Bernardino, CA, and authorization to proceed with the sale of the property was given. Background: On June 18, 1963, a lease was executed between the City of San Bernardino and the San Bernardino County Society for Crippled Children and Adults, Inc. (Easter Seals) for a portion of City owned parcels located on the south side of 9`h Street, west of Waterman Avenue (see attached maps). The lease was for land only (approx. 83,952 sq. ft.) with the lessee to construct the building. The original lease term was for 50 years for $1 per year, and was to expire June 20, 2013 with the option to renew and extend the lease for another 50-year tern from the expiration date. In 2008, Easter Seals had requested that the lease term be extended for an additional 50 years from the expiration date of the original lease. After review, staff determined that instead of an Updated: 2/12/2014 by Jolena E.Grider A Packet Pg:$04. . 2731 amendment being prepared, a new lease was needed to bring the Lease Agreement to the current standards and requirements. On July 21, 2008, Resolution No. 2008-291 was approved, terminating the original lease with the San Bernardino County Society for Crippled Children and Adults, Inc. (Easter Seals) and authorized the execution of a new 50-year lease with Easter Seals rSout n_vr__ t t nco of .�VULhelll 1.a111V1111G, co 111i11e11C1i1g 011 July 7, X008 and teiiliinatiiig oil June v, 2VJo In 2012, Easter Seals advised staff that they were unable to complete the improvements by the deadlines due to economic conditions and the loss of funding from various sources. Easter Seals had indicated it was committed to completing this project and new funding would be available through multiple sources. Unfortunately, the funding was never received and Easter Seals was unable to follow through with their commitment to complete the project, and did not anticipate their funding situation to change in the near future. Therefore, on March 14, 2012, a letter was received from Easter Seals requesting to terminate the current lease as they were unable to complete the proposed renovations of the site or provide child development services at this location. Easter Seals was only leasing the land from the City and they constructed all improvements at their cost; however, per the lease agreement, all improvements on the premises revert to City ownership at no cost to the City at the termination of the lease. On July 16, 2012, Resolution No. 2012-204 was adopted, terminating the lease with Easter Seals. As part of the action to accept the termination, authorization was given to the Public Works Director to initiate selling the property with improvements in an "as-is" state at fair market value. Before receiving the termination letter from Easter Seals, we were contacted by two separate parties interested in purchasing this site for development. One of the parties represented the adjacent owner to the east, which desires to expand the existing shopping center onto this property. This representative has been in constant contact with staff since the lease termination to inquire about the status of the sale of this property. The second interested party proposed to rehab the existing building and use the site as a rehabilitation center. In August 2012, City departments were sent notices to determine if there is a need for this property before being offered for sale. Several notices were returned, however, no department had any conflicts with the sale of the property. It is noted that there is a storm drain located on the southerly parcel and an easement will need to be reserved for such purpose, or the storm drain will have to be relocated if needed. The sale of this property requires several steps including securing an appraisal and the City Charter requires that any real property sales of$25,000 or higher be sold through the public bid process. There was a delay in acquiring an appraisal for this property, due to City filing for bankruptcy and having no way to pay for an appraisal until recently. Tierra West Appraisal & Land Use Dynamics, Inc. was the lowest bidder of the proposals received and prepared an appraisal (summary page attached) on behalf of the City, indicating the estimated market value to be $650,000. The value is based on property consisting of the one-story special-use commercial building, totaling approximately 6,743 square feet on two contiguous parcels of land, totaling approximately 1.58 acres (APN's: 0140-241-45 & 54). The attached Resolution establishes the fair market value for the property as a whole as set forth Updated: 2/12/2014 by Jolena E.Grider A Packet Pg.805 ' 2731 above, and declares the property as surplus property and authorizes the advertising of a Notice Inviting Bids. The property will also have"For Sale" signs posted on the site. As stated in the Resolution and Bid Specifications, bids may be submitted to the Public Works Department, along with a cashier's check in an amount of at least 10% of the total bid amount. The bids will be opened and declared at 10:00 a.m. on March 13, 2014. The results of the bids will be submitted at the Council Meeting of April 21, 2014 for review and action. Oral bids may also be considered at that time. City Attorney Review: Supporting Documents: reso 2731 (PDF) Exhibit"A" -BIDSPEC (PDF) Amended Summary (PDF) RCA Attach-Vicinity Map (PDF) RCA Attach-Plat Map (PDF) I Updated:2/12/2014 by Jolena E.Grider A RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDII`.TO ESTABLISHING A FAIR MARKET VALUE AND 3 MiNiMUM SALE PRICE FOR CERTAIN CITY OWNED PARCELS OF REAL PROPERTY LOCATED AT 241 E. 9'n STREET, AND GIVING NOTICE INVITING COMPETITIVE SEALED AND ORAL BIDS FOR THE SALE OF SAID PROPERTY. 5 WHEREAS, the City of San Bernardino, a municipal corporation, is the owner of the 6 hereinafter described parcels of real property located at 241 E. 91" Street, known as Assessor's 7 8 Parcel Number's 0140-241-45 & 0140-241-54, in the City of San Bernardino, State of F- 9 California; and ui 10 WHEREAS, the Mayor and Common Council finds and determines that there is no N 11 � further need or necessity for the City's ownership of said real property and is hereby declared o 12 a. surplus property; 13 14 WHEREAS, the Mayor and Common Council believes it is in the best interest of the �n 15 City that said parcels of real property be disposed of at the highest price obtainable in the open N a 16 market; and 17 ti WHEREAS, an appraisal was prepared by Shelli Holmes, a licensed appraiser from �+ 18 M Tierra West Appraisal & Land Use Dynamics, Inc, indicating a fair market value of Six- N 19 N 20 Hundred Fifty Thousand Dollars ($650,000.00) for both parcels and building as one economic c d 21 unit, on an As-Is Basis (Property). E 22 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE a 23 CITY OF SAN BERNARDINO AS FOLLOWS: 24 SECTION 1. Notice is hereby given inviting competitive sealed and oral bid 25 proposals for the disposition of the following parcels of real property, more particularly 26 described in and subject to the terms of Bid Specification No. 15.05-280, a copy of which is 27 attached hereto as Exhibit "A" and made a part hereof, and also on file in the Public Works 28 Packet Pg.`807 7.C.a Q1 Department, Real Property Section, City Hall, 300 North "D" Street, San Bernardino, 2 California, generally described as follows: 3 One story special-use corm-nereial building totaling approximately 6,743 square feet on i 4 two land parcels totaling approximately 1.58 acres, on the south side of 91h Street, west 5 of Waterman Avenue, being a portion of Assessor Parcel Number's 0140-241-45 & 6 54, and Property legally described as follows: 7 L { 8 That portion of Lot 4, in Block 3, Rancho San Bernardino, in the City of San Cn Cn Bernardino, County of San Bernardino, State of California, as per plat recorded in T 9 Book 7 of Maps, Page 2, in the office of the County Recorder of said County, ui described as follows: v 1 N 11 Beginning at a point in the North Line of said Lot 4; said North line being the South line of Ninth Street, 136.5 feet East of the Northwest corner of said Lot 4; thence East o 12 along the South line of Ninth Street 72.15 feet to a point 167.19 feet West of Northeast a. a corner of said Lot 4; thence Southeasterly 661.30 feet to the Southeast corner of said 13 Lot 4; thence West along the South line of said Lot 4, 239.72 feet to a point 136.5 feet v East of the Southwest corner of said Lot 4; thence North 638.52 feet to the point of d 14 beginning; Except any portion lying within the west two acres of said Lot 4. Cn 15 W Also Except that portion conveyed to the State of California by deed recorded April 16 23, 1984 as Instrument No. 84-93022, Official Records. M 17 AND 18 M That portion of Lot 4, in Block 3, Rancho San Bernardino, in the City of San N 19 Bernardino, County of San Bernardino, State of California, as per plat recorded in N 20 Book 7 of Maps, rs follows: 2, in the office of the County Recorder of said County, L described a : c d 21 Beginning at a point on the North line of said Lot 4, which is 454 feet West of the 22 Northeast corner of Lot 5 in said Block 3; thence South and parallel with the East line a 23 of said Lot 4, 200 feet;thence West and parallel with the North line of said Lot 4, 67.5 feet more or less, to a point on the Easterly line of Parcel 1 of the property conveyed 24 by Albert Ohonnsin to City of San Bernardino by deed recorded November 20, 1950, as Instrument No. 4 in Book 2674 of Official Records, Page 190, records of said 25 County; thence Northwesterly along said Easterly line to a point on the Northerly line of said Lot 4, which is 167.19 feet West of the Northeast corner of said Lot 4; thence 26 East along the Northerly line of said Lot 4, 117 feet, more or less, to the point of 27 beginning. 28 2 Packet Pg.808 7.G.a 0 1 SECTION 2. The fair market value and the minimum acceptable bid amount for said 2 Property is Six-Hundred Fifty Thousand Dollars ($650,000.00) and is hereby established as 3 the air market value of said Property. 4 SECTION 3. Sealed bid proposals must be accompanied by a cashier's check in an 5 amount equal to 10%of bid amount. 6 SECTION 4. Sealed bids must be delivered to the office of the Director of Public 7 8 Works, Real Property Section, Third Floor, City Hall, 300 North "D" Street, San Bernardino, Cn 9 California, prior to 10:00 A.M., March 13, 2014, at which time said sealed bids will be LU 10 opened and publicly declared. The results of said bidding shall be submitted to the Mayor and N 11 Common Council at the Council meeting on April 21, 2014, at the hour of 5:00 P.M. or as o 12 a soon as possible thereafter. At that time, oral bids may be received in at least$100 increments , w 13 14 for the outright purchase of said parcels of real property,provided that the initial oral bid shall 0 co 15 be an amount not less than the highest sealed bid plus 10%. The successful bidder shall make N a 16 a non-refundable deposit with the City Clerk in the form of a cashier's check, prior to the end 17 of the Council meeting, or no later than 12.00 P.M. the following business day, in an amount N 18 M equal to 10% of the bid amount. N 19 G N 20 SECT ION 5. Copies of the Bid Specifications and Official Bid Form may be obtained c 21 from the Department of Public Works, Real Property Section, City Hall, Third Floor, 300 E 22 North"D" Street, San Bernardino, California, 92418. a 23 SECTION 6. All written bid proposals must be signed, sealed and delivered as 24 indicated in Section 4. No bid proposal will be considered which fails to offer a sum equal to 25 26 or greater than the minimum acceptable bid price established herein, or which is filed at a later 27 time or at a different place than stated in Section 4, unless there is substantial compliance as 28 determined by the Mayor and Common Council in their sole discretion. The Mayor and 3 r,-,-P-acket Pg. 809 I Common Council may consider terms for any portion of the bid amount and will give i 2 consideration to all factors, including amount and length of terms and interest rate to be paid, 31 in determining the successful bidder. The amount to be carried by the City shall be secured by 4 a Note and Deed of Trust or other instrument acceptable to the City. In the event of two or 5 more equal bids, the Mayor and Common Council reserve the right to select the bid based on 6 the most favorable terms. The Mayor and Common Council reserve the right to reject any and 7 L all bids submitted. The Mayor and Common Council also reserve the right to make, in their 8 � m 9 sole discretion, a determination as to whether or not any parcel shall be sold. u.i 10 SECTION 7. This resolution shall be posted on or near the door of the Council a 11 Chambers, City Hall, San Bernardino, California, for at least five (5) consecutive days prior to 0 12 a the date set for the opening of bids and a Notice Inviting Bids for the disposition of said 13 4- 14 property shall be published not less than ten(10) days prior to said bid opening date in the San 0 U 15 Bernardino County Sun, a newspaper of general circulation published and circulated in said Cn n: 16 city. 17 18 M N 19 N ZOen 21 22 a 23 24 25 26 27 28 4 Packet Pg. 890 Ioni 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN 2 BERNARDINO ESTABLISHING A FAIR MARKET VALUE AND MINIMUM SALE PRICE FOR CERTAIN CITY OWNED PARCELS OF REAL PROPERTY LOCATED AT 241 E.9"STREET,AND GIVING NOTICE INVITING COMPETITIVE SEALED AND ORAL KIDS FOR TIME SALE OF SAID PROPERTY. 4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor 5 meetin and Common Council of the City of San Bernardino at a g 6 thereof,held on the day of ,2014, by the following vote,to wit: 7 Council Members: AYES NAYS ABSTAIN ABSENT 9 MARQUEZ w 10 ' JENKINS 11 �. VALDIVIA 0 12 a a 13 SHORETT 0 Q14 NICKEL 15 JOHNSON a 16 MULVIHILL M 17 F 18 ti Georgeann Hanna, City Clerk o 19 20 The foregoing resolution is hereby approved this day of ,2014. c a� 21 R 22 Patrick J. Morris,Mayor a 23 City of San Bernardino 24 Approved as to form: 25 GARY D. SAENZ, City Attorney 26 27 28 5 Packet Pg.811' EXHIBIT 7Cb SPECIFICATION NO. 15.05-280 NOTICE OF SALE OF REAL PROPERTY: 241 E. 9TH STREET GENERALLY LOCATED ON THE SOUTH SIDE OF 9TH STREET, WEST OF WATERMAN AVENUE d a� L REQUIREMENTS OF BIDDING AND SALE co F- NOTICE IS HEREBY GIVEN inviting sealed bids for the sale of City owned property, as ui authorized by action of the Mayor and Common Council of the City of San Bernardino. N 1. LOCATION AND DESCRIPTION OF PROPERTY T O BE SOLO: Q 0 L a (A) Parcel Locations: The subject property consists of a one-stoiy special-use commercial building, v totaling approximately 6,743 square feet on two (2) contiguous parcels of land, totaling 0 d approximately 1.58 acres, generally located on the south side of 9`h Street, vest of Waterman n: Avenue in the City of San Bernardino,known as 241 E. 9`h Street(APN's: 0140-241-45 &54), M collectively hereafter referred to as PROPERTY. A vicinity map of the general area is attached as Exhibit"1".A plat map showing the location of the two parcels is attached as Exhibit"2". o .N The parcels are fully described as follows: U 1) APN 0140-241-45: a 0 That portion of Lot 4, in Block 3, Rancho San Bernardino, in the City of San Bernardino, M County of San Bernardino,State of California,as per plat recorded in Book 7 of Maps,Page a 2, in the office of the County Recorder of said County, described as follows: :Q Beginning at a point in the North Line of said Lot 4; said North line being the South line of w Ninth Street, 136.5 feet East of the Northwest corner of said Lot 4; thence East along the c South line of Ninth Street 72.15 feet to a point 167.19 feet West of Northeast corner of said W Lot 4; thence Southeasterly 661.30 feet to the Southeast corner of said Lot 4; thence West along the South line of said Lot 4, 239.72 feet to a point 136.5 feet East of the Southwest r corner of said Lot 4; thence North 638.52 feet to the point of beginning; Q EXCEPTING any portion lying within the west two acres of said Lot 4. ALSO EXCEPTING that portion conveyed to the State of California by deed recorded April 23, 1984 as Instrument No. 84-93022, Official Records. 1 Packet;Pg. 812 i 2) APN 0140-241-54: That portion of Lot 4, in Block 3, Rancho San Bernardino, in the City of San Bernardino, County of San Bernardino,State of California,as per plat recorded in Book 7 of Maps,Page 2, in the office of the County Recorder of said County, described as follows: L co Beginning at a point on the North line of said Lot 4,which is 454 feet West of the Northeast � corner of Lot 5 in said Block 3; thence South and parallel with the East line of said Lot 4, 200 feet;thence West and parallel with the North line of said Lot 4,67.5 feet more or less,to w a point on the Easterly line of Parcel 1 of the property conveyed by Albert Ohonnsin to City N of San Bernardino by deed recorded November 20, 1950,as Instrument No.4 in Book 2674 if of Official Records, Page 190, records of said County; thence Northwesterly along said a Easterly line to a point on the Northerly line of said Lot 4,which is 167.19 feet West of the a°L Northeast corner of said Lot 4;thence East along the Northerly line of said Lot 4, 117 feet, r more or less, to the point of beginning. 0 2 (B) Zoning and Use: The subject parcels are currently zoned as follows: W U) 1) APN 0140-241-45: —CG-1 (Commercial General) a 2) APN 0140-241-54: —PF (Public Facility) M ti Other uses,such as Commercial,could be implemented through a General Plan Amendment,but 0 such approval is neither guaranteed nor implied. N 0 (C)Condition of PROPERTY:The subject property is being sold"AS-IS". The building located on v w CL the property is not included on the City's Unreinforced Masonry List(URM);however,the City makes no 0 representation that the building is reinforced. It is the buyer's responsibility to make the determination. A a 12 foot easement will be reserved by the City for storm drain purposes as shown on the attached Exhibit"2- x w A". c CD E 2. MINIMUM BID: a r The minimum acceptable bid(exclusive of any broker fees),determined to be the fair market value a for the PROPERTY in as-is condition is as follows: SIX-HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS ($650,000.00) 2 Packet'Pg. 813 3. INSPECTION: The subject parcels/building may be inspected by any potential bidders by appointment by contacting the Real Property Section at(909) 384-5226 or(909) 384-5026,between the hours of 7:00 am—6:00 pm, Monday through Thursday. a co 4. SEALED BIDS: Sealed bids for this City owned real property shall be submitted on the Official Bid Form(s)attached u.i N as Exhibit"3". Said sealed bid shall be received in the Public Works Department,Real Property Section, a� a Third Floor, City Hall, 300 North "D" Street, San Bernardino, California, until the hour of 10:00 a.m., r March 13, 2014, at which time all bids received will be publicly opened and declared. All bids must be ti 0 0 accompanied by a cashier's check in an amount of at least TEN PERCENT (10%) of the total amount bid. in Cn The results of said bidding shall be submitted to the Mayor and Common Council at the regularly scheduled a Council meeting on April 21, 2014, at the hour of 5:00 p.m. or as soon as possible thereafter. N 5. ORAL BIDS: c 0 Oral bids may be made at the Council meeting stated above. Oral bids may be received in $100 as increments for the outright purchase of the property,provided that the initial oral bid shall be an amount not ca w a less than the highest sealed bid plus TEN PERCENT(10%). In the event of a successful oral bid,a cashier's o M W check in an amount of at least TEN PERCENT (10%) of the bid amount shall be deposited with the City a Clerk prior to the end of said Council meeting, or no later than 12:00 pm the following business day. s X w 6. UNSUCCESSFUL BIDS: »� c a All sealed bid deposits of unsuccessful bidders will be promptly returned, without interest, after 0 determination of the successful bidder by the Mayor and Common Council, or upon rejection of all bids. Q 7. REJECTION OF BIDS: The Mayor and Common Council shall have the right to reject any and all bids. 3 Packet Pg: 814 8. SUCCESSFUL BIDDER: The City may consider teens for any portion of the bid amount and will give consideration to all factors, including amount and length of terms and interest rate to be paid, in determining the successful bidder. The amount to be carried by the City shall be secured by a Note and Deed of Trust or other L Cn instrument acceptable to the City.In the event of two or more equal bids,the City reserves the right to select the bid based on the most favorable terms. The successful bidder will be determined by the Mayor and w N Common Council after all facts are considered. a) 0- The successful bidder(s)will be required to execute a mutually acceptable Purchase Agreement and a to enter into escrow within THIRTY 00)days after the adoption of a Resolution authorizing the execution 4. 0 of said Purchase Agreement with the successful bidder(s),or as may otherwise be mutually agreed upon by M Cn the City and the successful bidder(s). The escrow instructions for the successful bidder shall include,but a not be limited to: ti N A. The recording of the Grant Deed from the City, and the closing of escrow within SIXTY (60) c 0 days of entering into escrow,or as otherwise mutually agreed upon by the City and the successful 'v_, 0 bidder,hereinafter referred to as "buyer" v w a. B. The buyer shall deposit the entire amount bid for the property, or a Note and Deed of Trust or o other instrument acceptable to the City,plus the amounts necessary as outlined in Paragraph C a and D below, less the bid deposit amount, within said escrow period. x w C. Escrow,title policy and all other fees and closing costs shall be divided between the City and the a� buyer, as may be customary or as otherwise agreed upon by the City and the buyer. D. Broker's Commission, if any, shall be paid in its entirety by the buyer, over and above the bid Q amount. E. In the event of any failure by the buyer to execute and complete escrow instructions, and any 4 Packet Pg. 815 compliance thereto,including the deposit of the balance of the purchase price and related escrow i fees, within the allotted time, the deposit made by the buyer shall be retained by the City as �I liquidated damages, and not as a penalty in the event of any failure on the part of the buyer. w v N Y CL O L ++ U 4- O ID M CO NnN a M ti N n r C O .y O U W a CO 0 m Q x w (D E U lC r w+ a Packet Pg. 816 i EXHIBIT "I" Vicinity Map Co ui W f, 0 io 4 L- 15 9L 43th St, 30�jU O 3 Co E� Marsh?II Blvd. vj � Highland Ave, ti m 5' Base Line St. P x \ -- 8th St =O 00 \ t .cn 5th St. > O Rialto Ave. 1 } U Mill St. 7 o d U 0 210 fl- cu orange how Rd, I � � LOCATION OF W PROPOSED SALE OF CITY OWNED PROPERTY VICINITY MAP NTS a CITY OF SAC+!BEMARDINO PROPOSED SALE OF CITY OWNED PROPERTY PUBLIC WORKS DEPARTMENT LOCATED AT 241 E. 9TH STREET, IN REAL.PROPERTY SECTION �aa THE CITY OF SAN BERNARDINO. (APN: 0140-241-45&54) Indicates un-Incorporated areas within City's Packet Pg.' 817 a� a� s H uw r N i L 0 L T V 0 fA n: M C O Gi N LL U W A O 0 X W d�+ E V ,N W Q Packet Pg. 818 EXHIBIT "2" Plat Map NWC �T°4 f 1 PCB J TREE I NEC 6T 5 d 35O 884" � � � CZ�I fn 0 °�• 40-X41-43 I N I � A Q I QL cs ©@ ��/� I I it-0.58 ■/ 4 ry k to 0 //) I •�- ,/ G jR R's BLK 40 V5 Lt_ EE l 10 I' cn 5 221 a raa IJ � s • 140-241-S4N 04sr24i-4g I �- �N3, i 034Cr741-t1 � I 2 a .C,J O14U-2{7-53 I d ■ I 0 LiJ 135.5 Q 6 K AP W E CITY OF SAN BERNARDINO PROPOSED SALE OF CITY OWNED PROPERTY PUBLIC AfORKS DEPARTMENT 241 E.9TH STREET irm REAL PROPERTY SECTION APN'S:0140-241-45&54 Prepared by; Ryan Sandoval Date, $102/2012 Legend;r-——. _CITY OWNED PROPERTY t. J FILE NO„ 15.05-250 =PROPOSED AREA TO BE SOLD Packet Pg.819 ` EXHIBIT "2-A" Storm Drain Easement — - — TREE 7- TPOEI POC �! �� NW LOT 4 9 T NEC LOT 5 135,5 pp } (545,56) `r s L948'24° E { u 86,5 r t 14.5t3 Y [ S 45 T""N I (455.0) l 24.5 NEC LOI 4 CENTERLINE OF r+ cy 72'STORM DRAIN EASEMENT TO BE otao-zmr2e RESERVED co crll p� W w � N uj o I o o Quja t ,s Cr ca ti 7 t 4.9H Q r} 1 0- Uaa O <C � ¢ BLI{. 0140-241-5D � I Lu CJ O C1~ R.S.B+J Ili "'J a Co LL 4 ( W_ 5 229 M J !`. u7 (f7 0140-245-33 Oi40-2 � dr I w Lu 41.25 o N 0140-241-11 �? I I � > a ° �+ ° W A t I O SOUTH LINE OF PAF?_ 1 I 0144-241-40 � Q x 0140-241-53 I ,/� W C N E C�40M1t 4 y CITY OF SAN BERNARDINO STORM DRAIN EASEMENT AREA PUBLIC WORKS DEPARTMENT PROPOSED SALE OF CITY OWNED PROPERTY REAL PROPERTY SECTION 241 E. 9TH STREET APN'S:0140-241-45&54 Prepared by: Ryan Sandoval Date; 10131/2013 Legend;® -CITY AREA TO E SOLD FILE NO.: 15.05-280 =STORM DRAIN EASEMENT AREA (APPROX.6,7M.67 SO.FT.) Packet Pg:820 i is I EXHIBIT "Y' CITY OF SAN BERNARDINO REAL PROPERTY SECTION OFFICIAL BID F OIZM- SALE OF REAL PROPERTY LOCATION OF PROPERTY BEING SOLD: .. d as mu 241 E.9TH STREET: N A one-story special-use commercial building,totaling approximately 6,743 square feet on two(2)contiguous parcels of land,totaling approximately 1.58 acres,generally located on the south side of 91h Street,west of Waterman Avenue(APN'S 0140-241-45 &54) Uj Ct N In compliance with Specification No. 15.05-280,concerning the sale of the above City-owned property,the following bid is submitted: a 0 Dollars ($ ), Q payable as follows: $ to be deposited into escrow prior to close of escrow, C) w 0 annual monthly of$ plus and the balance to be paid as follows: [] [] y 0 U) interest at the rate of %per annum on the unpaid balance(6%minimum). o: Attached is a cashier's check payable to the CITY OF SAN BERNARDINO,in an amount equal to at least ten percent(10%)of the above bid, which I understand will be returned without interest if I am not the successful bidder as determined by the Mayor and Cl) Common Council of the City of San Bernardino. Submission of this bid signifies that I understand and concur with the provisions 0 outlined in Specification No. 15.05-280 and that I understand the subject property is being sold in an"AS-IS"condition. N a� u U w CL PRINTED NAME OF BIDDER SIGNATURE p MAILING ADDRESS TELEPHONE NO. Q B CITY,STATE,ZIP CODE w j Sealed bids,submitted on this official Bid Form,will be received until 10:00 am,March 13,2014,in the Real Property Section,Public Works Department, 3rd Floor,City Hall,300 N. "D" Street,San Bernardino,California,92418,at which time they will be publicly E s opened,examined and declared. .r Q NOTE: BIDS WILL NOT BE ACCEPTED UNLESS ALL BLANKS HAVE BEEN FILLED IN. ALL SEALED BIDS MUST HAVE THE FOLLOWING INFORMATION ON THE LOWER LEFT-HAND CORNER OF THE BID ENVELOPE: SEALED BID If SALE OF CITY PROPERTY F SPECIFICATIW1 NO. 15.05-280 241 E. 9 STREET Packet Pg.821 SUMMARY APPRAISAL REPORT SUB3EC T PROPERTY DESCRIPTION d A One-Story Special-Use Facility Totaling 6,743+SF Building Floor Area co on Two Land Parcels totaling 1.58+AC With Easement Taken into Consideration tL (All as One Economic Unit) r 241 E. 9`I'Street N San Bernardino,CA 92410 m (APN's: 0140-241-45&54) o The Former Easter Seals Child Development Center °- U a PREPARED FOR ID R CO Mr. Ryan Sandoval 300 North D Street °- San Bernardino, CA 92418 Cl) ti N EFFECTIVE DATE OF VALUE E July 24, 2013 rn a� d PREPARED BY E Q u Shelli Holmes E E Certified General Real Estate Appraiser 0 CA#AGO16181 (Exp. 08/04/2014) . Q TIERRA WEST Appraisal&Land Use Dynamics,Inc. 133 N.Buena Vista Street,Hemet, CA 92543 Tel: (951)929-2345 • Tel: (760)322-9322 •Fax: (951)658-9593 E-Mail: she]li(a-)tierrawest.com •Web: www.tierrawest.com TIERRA WEST Prepared Exclusive) For: P Y Appraisal&Land Use Dynamics,Inc. 1 Mr.Ryan Sandoval Packet Pg. 822'" 133 N. Buena Vista, #4 MEN MEN ® Hemet, Ca 92543 mower �� ��� •! i ei#1: (95i) 929-2345 ■NMMMMM■■■MNMMNM ME MEN Z MOMEMOMMM r at i c 9322 RON 0 s��� el ff2. 1—' 32-- ■ ■■ M ME ® Fax?T1: (95 i) 65Fs-9593 www.tierrawest.com AnnraicA1 R I anti ii icP nN/namir(z� inn N 33'44.925 W 116°58.060' Mr.Ryan Sandoval August 25,2013 N 300 North"D" Street San Bernardino,CA 92418 ui RE: Summary Appraisal Report–The Former Easter Seals Child Development Center N A One-Story Special-Use Facility Totaling 6,743+SF Building Floor Area On Two Land Parcels totaling 1.58+AC(All as One Economic Unit) Taking into Consideration Storm Drain Easement ac L 241 E. 9`"Street, San Bernardino,CA 92410 U Dear Mr. Sandoval, o 0) is Pursuant to the formal request and authorization from Mr. Ryan Sandoval, I have performed both on and off-site inspections of the above referenced subject property and have evaluated the subject's most physically possible, legally permissible, financially feasible and maximally productive land uses which has led me to form an opinion of highest and best use. I have also researched, inspected and evaluated recent comparable market data within the subject's primary and competitive market areas along with economics, demographics and market/property trends that has led me to form an opinion of market value for the subject property under fee simple ownership. L �a E This Summary Appraisal Report has been prepared with the intent to comply with reporting and disclosure E requirements as set forth: 1) under Standards Rule 2-2(b) of the Uniform Standards of Professional v� Appraisal Practice(USPAP);Title XI of the Financial Institution Reform and Recovery Enforcement Act of 1987 (FIRREA); and 3) the Appraisal Institute. In compliance therewith, this report presents summary discussions of the data, analyses,reasoning and conclusions utilized in the appraisal process to develop the E appraiser's opinion of value. Supporting documentation concerning the data, reasoning and analyses are retained within the appraiser's work file.The depth of the discussion contained within this report is specific a� to the needs of the client and for the intended use stated herein. E U R For purposes of this appraisal report: 1)all"applicable"approaches to developing a supportable estimate of Q market value for the subject property have been explored; 2) an inspection of the subject property and relevant market data has been performed; 3) all sale/market data as used within this report have been verified with sources deemed reliable and accurate; 4) all applicable real property interests have been considered and analyzed; and 5) reasonable appraisers would agree that this report includes sufficient information, discussion and reasoning to provide a supportable indication of market value for the subject property relative to the scope and objective of this assignment. Real Estate Appraisal•Feasibility&Economic Studies•Land Use Analysis•Market Research•Expert Witness Serving Southern California Since 1982 2 Packet Pg._823 i i In addition to the Assumptions and Limiting Conditions as outlined subsequently in this report, the following criteria apply and have been weighed and considered in the valuation of the subject property. • The estimate of Market Value, as defined in this appraisal report, is based upon the most probable marketing period of 6 to 12+ months for the subject property on an As-is Basis. This time estimate is predicated upon the assumption that the subject property would be network marketed by a competent and knowledgeable real estate broker exercising due diligence at or near the concluded market value estimate as set forth within this report. Significant variances in pricing (either above or below the appraiser's concluded estimate) may alter the subject's marketing period. Also,the subject's estimated marketing period is based upon prevailing market conditions, historical market exposure periods of in other similar properties which have sold recently within the market area, along with discussions and opinions obtained with local area real estate brokers active within the subject's market area. U.i r • According to Ryan of the City of San Bernardino Publics Work Department at(909)384-5140, subject c, APN 0140-241-45 is zoned CG-1 and subject APN 0140-241-54 is zoned PF with a Commercial y, General and Public Facilities General Plan land use designation,respectively.According to Aron Liang If of the San Bernardino City Planning Department,no commercial uses are allowed for the PF zone.Uses o allowed in the PF zone are public building type uses. PF-zoned comparables are limited at best. a Therefore, after deriving a value estimate for the subject underlying land value and surplus land, a paired sales analysis will be explored for the subject excess land(APN 0140-241-54).After deriving an c estimated value for the underlying and surplus land (APN 0140-241-45), a size adjustment will be d applied to the subject underlying land value estimate. A discount will be applied to the adjusted cc underlying land value in order to derive a land value estimate for the subject excess land. • Also according to Ryan,there is a storm drain easement running through APN 0140-241-54 and through a minute portion of APN 0140-241-45. The easement totals 5,709.57+- SF, 343.18 SF of which runs through APN 0140-24145 and 5,366.39 SF of which runs through APN 0140-241-54 (Please refer to N the Appendices for a copy of Mr. Sandoval's email and a storm drain easement area map).After Before Condition values are derived for the subject underlying, surplus and excess land(see above), the After Condition estimated values of these three portions of the subject property will be explored in order to E take into consideration the stone drain easement. • There is no definitive information regarding total site area. Andrea M. Rogers of Chicago Title Company measured APN to be 1.93+-AC or 83,928+- SF of which 60.57% or 50,835+- SF, consisted of the excess land(APN 0140-241-054).Public Records show the size of subject parcel APN 0140-241- 4 45 to have 4.22 acres. Another Public Record statement shows the same parcel to have 5.00 acres. However, the Client (Ryan Sandoval from the City of San Bernardino) indicates that the subject E property is comprised of two parcels totaling 1.58+-AC. In order to use the 1.58+-AC from(and at the request of)the Client,size proportions of Ms.Rogers' estimates are used and applied to the Client's ;g estimate of 1.58+-AC.Ms.Rogers' calculations show that the subject excess land(APN 0140-241-054) Q has an estimated 60.57%+- of the total subject site size (including both parcels). Thus, if using the Client's 1.58+-AC(68,825+- SF) estimate, the subject excess land is estimated to be 41,687+- SF and APN 0140-241-45 (subject underlying and surplus land)has a total of 27,138+-SF.If these figures are deemed incorrect at some future date,a re-evaluation at extra cost to the Client will be necessary. Also,the value estimate could be different if these size estimates are deemed not correct. TIERRA WEST Prepared Exclusively For: Appraisal&Land Use Dynamics,Inc. 3 Mr.Ryan Sandoval Packet Pg.824 7.C.c • Considering both subject parcels,the subject is deemed to have surplus and excess land.Within the CG- 1 zoning designation(APN 0140-241-45),50%is the maximum coverage allowed.The subject building on parcel 0140-241-45 is considered to have surplus land. If the maximum 50% coverage is used, approximately 13,569+- SF of the subject 27,138+- SF lot would be necessary to support the subject improvements. In other words, 13,569+- SF is considered to be the subject underlying land. Thus, 13,569+- SF is considered to be surplus land area(land not needed to support the existing highest and best of existing improvements and cannot be sold off separately). Subject APN 0140-241-54,consisting of 41,687+- SF is considered to be excess land because it is a separate parcel and also is not needed to CD support the existing improvements or the highest and best use if vacant. ? .r • According to parking standards as set forth by the City of San Bernardino Planning Department (Section 19.24 of the City's Municipal Code), "l space for every 35 SF of non-fixed seating area in the principal sanctuary, conference space or auditorium" is required. The "principal seating area" of the w subject could not be determined. Therefore,parking requirements cannot be determined.Further studies is may be required in order to determine if the subject parking is sufficient for current improvements. If it >4 is found that subject parking is sub-standard, a re-evaluation at extra cost to the Client would be necessary. It should be noted that the City of San Bernardino requires 2 handicapped spaces if current o number of parking spaces range from 26 to 50. Since the subject has 9 handicapped spaces included Q within a total of 29 parking spaces,the handicapped requirements appear to be satisfied. • According to Ryan Sandoval of the City of San Bernardino, the adjacent property owner of the Super 0 Market has expressed interest in purchasing the subject property. The owner wishes to use the subject M property for parking and may demolish the existing subject building. 1.6 • In the preparation of this appraisal report, numerous data sources have been utilized. These sources would include, but not be limited to, local, state and federal agencies, city and county government, public and private agencies including utility companies and water districts, quasi-governmental N agencies,private and public information services,various professionals such as engineers,planners,real estate professionals and others. E • Because the subject is considered to be a special use property,the Income Approach would not apply. Lease data(i.e. lease comps)for special-use facilities such as the subject are limited.Therefore, little or -a no credence would be realized through the Income Approach. a� • An Environmental Hazards report pertaining to the subject property was not provided for review.Based upon a cursory on-site inspection, no adverse hazards were readily apparent. It should be noted however,that the appraiser is not a licensed hazardous materials inspector and a complete study was not performed. Therefore,there has been no consideration given in this report for the potential costs or time required to mitigate, remove or otherwise demise of hazardous or noxious substances that may be w associated with the subject property including but not limited to pesticides,herbicides,fertilizers,petro- Q chemicals,waste products,asbestos,urea formaldehyde foam or any other substances known to be toxic or hazardous. In the event it is determined that the subject property does possess hazardous materials (above or below ground and whether before or after the date of value), a re-evaluation at extra cost to the Client may be necessary. TIERRA WEST Prepared Exclusively For: Appraisal&Land Use Dynamics,Inc. 4 Mr.Ryan Sandoval Packet Pg. 825 7.C.c 1 • A recent preliminary title report has been provided for review. The exact location, size and type of easements, encroachments, rights-of-way, etc. that may or may not be associated with the subject property have not been plotted or fully evaluated. However, as previously mentioned, there is a storm drain easement. Besides the easement, the subject property appears void of adverse easements or encroachments and is further assumed to be free of restrictive deed restrictions,CC&R's,etc.that would render it less marketable than competitive facilities within the general area. The easement appears to have a minimal impact on value of the subject. • The Americans with Disabilities Act (ADA) became effective on 26-JAN-92. Please note that the W author of this report is not qualified to assess or perform a compliance survey of the subject property or u) analysis of the comparable properties(as referred to in this report)relative to compliance with the ADA. It is possible that a compliance survey of the properties, together with a detailed analysis of the Uj requirements of the ADA,could reveal that the properties are not in compliance with one or more of the provisions of the Act. If so,this condition could potentially have a negative effect upon the value of the properties. Since there is no direct evidence relating to this issue,this appraisal report does not consider ;, possible non-compliance factors (such as costs to cure) relative to the requirements of the ADA in estimating value of the subject property. Therefore, the Client is advised to secure an independent o- consultant who is qualified to perform such assessments. In the event it is determined that the subject o- consultant does not comply with the ADA, the appraiser reserves the unlimited right to amend the concluded estimate of market value for the subject property as stated in this report. These indicated value estimates as stated within this appraisal report do not consider compliance with ADA. m Any and all prior legal claims, lis pendens or other applicable actions against the subject property are not reflected in the market value estimate as set forth in this report. The subject property is valued based upon free and clear title, exclusive of any and all liens, encumbrances, clouds etc. M • The area's political climate, socio-economic environment and posture toward future development activity have been considered in the valuation of the subject property. However,the future decisions of governing and legislative bodies, as they may relate to policies and/or restrictions that may affect the E utilization and or future use of the subject property, can in no way be predetermined. Every reasonable E effort has been made to evaluate and interpret trends and market factors that may have a material Yn bearing upon the current and/or future use of the subject property. -0 CD • Public information sources pertaining to seismic and fault hazard, soils,water tables, flood hazards and E other environmental issues have been reviewed in accordance with standard professional appraisal standards and practices. No warranty,however, is made relative to the existence/absence of potentially c adverse site conditions that may or may not be associated with the subject property; either prior or E subsequent to the date of value. The Client should secure applicable studies by qualified experts if so U desired;though none are specifically recommended. Q • The subject property is not located within an Alquist-Priolo Special Studies Zone as identified by the State Geologist.However,the subject property is located within a general region of Southern California, which is potentially prone to potentially damaging seismic activity. TIERRA WEST Prepared Exclusively For: Appraisal&Land Use Dynamics,Inc. 5 Mr.Ryan Sandoval Packet Pg. 826 • Based upon review of FEMA flood hazard map data,the subject property is located within Flood Zone "X". This zone indicates that the subject property is not located within a designated flood hazard zone or floodway.Therefore,flood hazard insurance is not required. • According to information generated by the USGS(7.5 Minute Series Maps),the subject property is not located within a wetlands or riparian area that might otherwise impair or preclude the subject's current and/or anticipated future land uses. CID • The undersigned appraiser(s) is currently licensed through the State of California and possesses both adequate experience and the necessary knowledge to competently perform this appraisal report. Please u) refer to the appraiser's Curriculum Vitae as outlined subsequently in this appraisal report for information pertaining to education, background, work experience, types of properties appraised, Ui summary of various clientele,etc. N T Based upon the information, data and reasoning as set forth within this Suinmary Appraisal Report, my opinion as to a reasonable estimate of market value for the subject property(building and parcels as one o economic unit)on an As-Is Basis under fee simple ownership,as of July 24,2013 would be: n- a SAY: $650,000 v 0 SIX HUNDRED FIFTY THOUSAND DOLLARS A, Respectfully submitted, TIERRA WEST r Cl) Appraisal&Land Use Dynamics,Inc. r ��\ E E Shelli Holmes, Senior Appraiser M Certified General Real Estate Appraiser CA#AG016181 (Exp. 08/14/2014) d r C Q i-� aI E U R r Q TIERRA WEST Prepared Exclusively For: Appraisal&Land Use Dynamics,Inc. 6 Mr.Ryan Sandoval Packet Pg. 827 7.C.d I' rl 0 F v' LI Q �5 18 1' Gaffe .0 \ 215 \ /, 1 \\p (J ke LLI \J naaU p� 40th St. aso CL I 0 N Marshall Blvd. JL 210 A i U Highland Ave. , zss < O N v7 E Base Line St. w NI 9th St 5th St. a tii Rialto Ave. i _... .......... .._.__.._ ..– - .- I��, 15 < p. Mill St. i— i rl Orange Show Rd. °- _ 00 � n v An � w LOCATION OF a Q PROPOSED SALE OF CITY OWNED PROPERTY VICINITY MAP U R NTS w a CITY OF SAN BERNARDINO PROPOSED SALE OF CITY OWNED PROPERTY PUBLIC WORKS DEPARTMENT LOCATED AT 241 E. 9TH STREET, IN REAL PROPERTY SECTION San6crnar inu THE CITY OF SAN BERNARDINO. (APN: 0140-241-45 & 54) ® Indicates un-incorporated areas within City's Sphere of Influence Created by: Ryan Sandoval Packet Pg. 828 NWC LOT 4 ~ 9 // / POB STREET N NEC LOT 5 136.5 — Kr� �r (455.0) I 5 �ra rn^ 0140-241-45 I QS �N I 0140-241-07 cl I � H � I w 66.5./' I Q o Oo � � I '� /aQe 114.58 �� N oQ1 Q 0 BLK. o,ao—za,—so 0 1 7 �wo 3 1- c�t ¢a R.S.BI o ct to r'j 4 ,z s 229 Q 0140-241-54 I N 0740-241-49 0140-241-33 r I w U 0140-247-11 u 41.�51 I a I � I .. I I N i ` I 0740-241-40 is a 1 I m 1 0140-24,-53 , I � 1�e. a v U tC 0'-1'=12( *8emar CITY OF SAN BERNARDINO PROPOSED SALE OF CITY OWNED PROPERTY PUBLIC WORKS DEPARTMENT 241 E. 9TH STREET REAL PROPERTY SECTION APN'S: 0140-241-45&54 Prepared by: Ryan Sandoval Date: 8/02/2012 Legend: r——-i —— =CITY OWNED PROPERTY FILE NO.: 15.05-280 =PROPOSED AREA TO packet,Pg.829 ��