HomeMy WebLinkAbout06.D- Public Works DOC ID: 3006 A
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Public Hearing
From: Tony Frossard M/CC Meeting Date: 04/21/2014
Prepared by: Ryan Sandoval, (909) 384-5140
Dept: Public Works Ward(s): 1
Subject:
Oral Bids: 5:30 P.M. and Awarding of Bid— Sale of City Property Located at 241 E. 9Th Street
(#3006)
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.
Mayor to open the hearing and solicit bids . . .
Motion: That the hearing accepting oral bids for the sale of City property, as per Bid
Specification No. 15.02-280, be closed; and that the oral bid amount of
$ be awarded to for property located at 241
E. 9t�APN's 0140-241-45 & 54).
OR
Motion: To table the matter.
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.
07121/2008 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, terminating the lease between the City of
San Bernardino and East Seals Southern California, Inc., for City-owned property
located at 241 E. 9th Street, San Bernardino, CA, and authorization to proceed with
the sale of the property was given.
02/18/2014 Resolution No. 2014-042 was adopted, establishing a fair market value and
minimum sale price in the amount of $650,000, and giving notice inviting
competitive sealed and oral bids for the sale of property.
Background:
On March 14, 2012, a letter was received from Easter Seals requesting to terminate the lease as
they were unable to complete the proposed renovations of the site or provide child development
Updated: 4/16/2014 by Linda Sutherland A Packet Pg. 572
3006
services at this location. Easter Seals was only leasing the land from the City and they
constructed all improvement 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.
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. Tierra West Appraisal & Land Use Dynamics, Inc. 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).
On February 18, 2014, Resolution No. 2014-042 established the fair market value for the
property at the appraised amount of$650,000.00, declared the property as surplus property, and
authorized the advertising of a Notice Inviting Bids. The property was posted with the Notice
Inviting Bids and the resolution along the front of the site in four different locations.
The deadline for submitting sealed bids per the resolution was March 13, 2014, at 10:00 a.m. No
bids were received for the purchase of the property; however, procedures for the sale of property
allow the Mayor and Common Council to accept oral bids at the time of the public hearing. Oral
bids, if any, must be received in at least $100 increments for the outright purchase of the
property, provided that the initial oral bid shall be an amount not less than the highest sealed bid
plus 10%percent. Since no sealed bids were received, the minimum opening oral bid must be at
least the established fair market value of $650,000.00 (Six Hundred Fifty Thousand Dollars).
The successful bidder is required to make a non-refundable deposit with the City Clerk in the
form of a cashier's check,prior to the end of the meeting or by 12:00 p.m. the following business
day after awarding the bid, in an amount equal to 10%percent of the bid amount.
Supporting Documents:
Vicinity Map -Proposed Sale(PDF)
Plat Map-Proposed Sale (PDF)
Appraisal Summary Sheet (PDF)
Updated:4/16/2014 by Linda Sutherland A Packet Pg. 573
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CITY OF SAN BERNARDINO Q
PUBLIC WORKS DEPARTMENT PROPOSED SALE OF CITY OWNED PROPERTY
REAL PROPERTY SECTION LOCATED AT 241 E. 9TH STREET, IN
SanBernar Ino THE CITY OF SAN BERNARDINO.
Indicates un-incorporated areas within City's (APN: 0140-241-45 & 54)
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CITY OF SAN BERNARDINO PROPOSED SALE OF CITY OWNED PROPERTY Q
PUBLIC WORKS DEPARTMENT 241 E. 9TH STREET
SanBernnr rno REAL PROPERTY SECTION APN'S: 0140-241-45& 54
Prepared by: Ryan Sandoval Date: 8/02/2012 Legend: r——-%
FILE NO.: 15.05-280 ———P =CITY OWNED PROPERTY
=PROPOSED AREA TO 1�1CIC8t P(J X75
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SUMMARY APPRAISAL REPORT
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SUBJECT PROPERTY DESCRIPTION ui
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A One-Story Special-Use Facility >%
Totaling 6,743+SF Building Floor Area
on Two Land Parcels totaling 1.58+AC o
With Easement Taken into Consideration a
(All as One Economic Unit) c
241 E. 9`b Street
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San Bernardino,CA 92410
(APN's: 0140-241-45&54)
The Former Easter Seals Child Development Center op
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PREPARED FOR
Mr. Ryan Sandoval
300 North D Street
San Bernardino,CA 92418
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EFFECTIVE DATE OF VALUE
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July 24,2013
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PREPARED BY
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Shelli Holmes N
Certified General Real Estate Appraiser y
CA#AGO16181 (Exp. 08/04/2014)
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Appraisal&Land Use Dynamics,Inc. a=i
133 N. Buena Vista Street,Hemet,CA 92543 E
Tel: (951)929-2345 •Tel: (760)322-9322•Fax: (951)658-9593 0
E-Mail: shelliAtierrawest.com•Web: www.tierrawest.com e(
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Prepared Exclusively For:
Appraisal&Land Use Dynamics,Inc. 1 Mr.Ryan Sandoval
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Mr.Ryan Sandoval August 25,2013
300 North"D"Street Q
San Bernardino,CA 92418
RE: Summary Appraisal Report—The Former Easter Seals Child Development Center U
A One-Story Special-Use Facility o
Totaling 6,743+SF Building Floor Area
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On Two Land Parcels totaling 1.58+AC(All as One Economic Unit)
Taking into Consideration Storm Drain Easement 0
241 E. 9th Street, San Bernardino,CA 92410 00
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Dear Mr. Sandoval,
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Pursuant to the formal request and authorization from Mr. Ryan Sandoval, I have performed both on and Q
off-site inspections of the above referenced subject property and have evaluated the subject's most a
physically possible, legally permissible, financially feasible and maximally productive land uses which has
M 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, m
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demographics and market/property trends that has led me to form an opinion of market value for the subject
property under fee simple ownership. O
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This Summary Appraisal Report has been prepared with the intent to comply with reporting and disclosure
requirements as set forth: 1) under Standards Rule 2-2(b) of the Uniform Standards of Professional
Appraisal Practice(USPAP); Title XI of the Financial Institution Reform and Recovery Enforcement Act of (D
1987 (FIRREA); and 3) the Appraisal Institute. In compliance therewith, this report presents summary N
discussions of the data, analyses, reasoning and conclusions utilized in the appraisal process to develop the
appraiser's opinion of value. Supporting documentation concerning the data, reasoning and analyses are E
retained within the appraiser's work file. The depth of the discussion contained within this report is specific
to the needs of the client and for the intended use stated herein. U)
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 Q
relevant market data has been performed; 3) all sale/market data as used within this report have been c
verified with sources deemed reliable and accurate; 4) all applicable real property interests have been E
considered and analyzed; and 5) reasonable appraisers would agree that this report includes sufficient c
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. Q
Real Estate Appraisal•Feasibility&Economic Studies•Land Use Analysis•Market Research.Expert Witness
Serving Southern California Since 1982
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Packet Pg. 577
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.
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• 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 N
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 ua
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
other similar properties which have sold recently within the market area, along with discussions and o
I opinions obtained with local area real estate brokers active within the subject's market area. a.
• According to Ryan of the City of San Bernardino Publics Work Department at(909)384-5140, subject
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APN 0140-241-45 is zoned CG-1 and subject APN 0140-241-54 is zoned PF with a Commercial °
General and Public Facilities General Plan land use designation,respectively.According to Aron Liang �n
of the San Bernardino City Planning Department,no commercial uses are allowed for the PF zone.Uses
allowed in the PF zone are public building type uses. PF-zoned comparables are limited at best.
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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
applied to the subject underlying land value estimate. A discount will be applied to the adjusted
underlying land value in order to derive a land value estimate for the subject excess land. Q
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• Also according to Ryan,there is a storm drain easement running through APN 0140-241-54 and through N
a minute portion of APN 0140-241-45. The easement totals 5,709.57+- SF, 343.18 SF of which runs m
through APN 0140-241-45 and 5,366.39 SF of which runs through APN 0140-241-54 (Please refer to O
the Appendices for a copy of Mr. Sandoval's email and a storm drain easement area map).After Before p
Condition values are derived for the subject underlying, surplus and excess land(see above),the After to
Condition estimated values of these three portions of the subject property will be explored in order to °C
take into consideration the storm drain easement.
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• 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 N,
of the excess land(APN 0140-241-054).Public Records show the size of subject parcel APN 0140-241- f°
45 to have 4.22 acres. Another Public Record statement shows the same parcel to have 5.00 acres. E
However, the Client (Ryan Sandoval from the City of San Bernardino) indicates that the subject in
property is comprised of two parcels totaling 1.58+-AC. In order to use the 1.58+-AC from(and at N
the request of)the Client,size proportions of Ms.Rogers' estimates are used and applied to the Client's
estimate of 1.58+-AC.Ms.Rogers' calculations show that the subject excess land(APN 0140-241-054) Q-
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has an estimated 60.57%+- of the total subject site size (including both parcels). Thus, if using the a
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 E
deemed incorrect at some future date,a re-evaluation at extra cost to the Client will be necessary. 0
Also,the value estimate could be different if these size estimates are deemed not correct.
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TIERRAWEST Prepared Exclusively For:
Appraisal&Land Use Dynamics,Inc. 3 Mr.Ryan Sandoval
Packet Pg. 578
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• 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 0140-24145 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, CO
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 u.i
of 41,687+- SF is considered to be excess land because it is a separate parcel and also is not needed to
I support the existing improvements or the highest and best use if vacant.
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• According to parking standards as set forth by the City of San Bernardino Planning Department o
(Section 19.24 of the City's Municipal Code),"1 space for every 35 SF of non-fixed seating area in the a.
principal sanctuary, conference space or auditorium" is required. The "principal seating area" of the ''
subject could not be determined. Therefore,parking requirements cannot be determined. Further studies „-
may be required in order to determine if the subject parking is sufficient for current improvements. If it aa)
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
number of parking spaces range from 26 to 50. Since the subject has 9 handicapped spaces included m
within a total of 29 parking spaces,the handicapped requirements appear to be satisfied. 4-
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• According to Ryan Sandoval of the City of San Bernardino, the adjacent property owner of the Super o
Market has expressed interest in purchasing the subject property. The owner wishes to use the subject 3
property for parking and may demolish the existing subject building. Q
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• 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,
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public and private agencies including utility companies and water districts, quasi-governmental O
agencies,private and public information services,various professionals such as engineers,planners,real p
estate professionals and others.
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• Because the subject is considered to be a special use property, the Income A roach would not apply.
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Lease data(i.e. lease comps)for special-use facilities such as the subject are limited. Therefore,little or
no credence would be realized through the Income Approach. C
• An Environmental Hazards report pertaining to the subject property was not provided for review.Based
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upon a cursory on-site inspection, no adverse hazards were readily apparent. It should be noted E
however,that the appraiser is not a licensed hazardous materials inspector and a complete study was not cn
performed. Therefore,there has been no consideration given in this report for the potential costs or time N
required to mitigate, remove or otherwise demise of hazardous or noxious substances that may be
associated with the subject property including but not limited to pesticides,herbicides,fertilizers,petro-
chemicals,waste products,asbestos,urea formaldehyde foam or any other substances known to be toxic a
or hazardous. In the event it is determined that the subject property does possess hazardous materials m
(above or below ground and whether before or after the date of value), a re-evaluation at extra cost to E
the Client may be necessary.
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1 1ERR •• EST Prepared Exclusively For:
Appraisal&Land Use Dynamics,Inc. 4 Mr.Ryan Sandoval
Packet Pg. 579
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• 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 2
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. ui
• The Americans with Disabilities Act (ADA) became effective on 26-JAN-92. Please note that the "'
author of this report is not qualified to assess or perform a compliance survey of the subject property or
analysis of the comparable properties(as referred to in this report)relative to compliance with the ADA. o
It is possible that a compliance survey of the properties, together with a detailed analysis of the a
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 v
properties. Since there is no direct evidence relating to this issue,this appraisal report does not consider aoi
possible non-compliance factors (such as costs to cure) relative to the requirements of the ADA in in
estimating value of the subject property. Therefore, the Client is advised to secure an independent
consultant who is qualified to perform such assessments. In the event it is determined that the subject
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property does not comply with the ADA, the appraiser reserves the unlimited right to amend the o
concluded estimate of market value for the subject property as stated in this report. These indicated S C71
value estimates as stated within this appraisal report do not consider compliance with ADA.
Any and all prior legal claims, lis pendens or other applicable actions against the subject property are not Q
reflected in the market value estimate as set forth in this report. The subject property is valued based upon c
free and clear title, exclusive of any and all liens, encumbrances, clouds etc.
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• 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 0
governing and legislative bodies, as they may relate to policies and/or restrictions that may affect the c
utilization and or future use of the subject property, can in no way be predetermined. Every reasonable
effort has been made to evaluate and interpret trends and market factors that may have a material a
bearing upon the current and/or future use of the subject property.
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• Public information sources pertaining to seismic and fault hazard, soils,water tables,flood hazards and L
other environmental issues have been reviewed in accordance with standard professional appraisal E
standards and practices. No warranty, however, is made relative to the existence/absence of potentially �
adverse site conditions that may or may not be associated with the subject property; either prior or U)
subsequent to the date of value. The Client should secure applicable studies by qualified experts if so M
desired;though none are specifically recommended. fQ
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• 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, aai
which is potentially prone to potentially damaging seismic activity. E
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TIERRA WEST Prepared Exclusively For:
Appraisal&Land Use Dynamics,Inc. 5 Mr.Ryan Sandoval
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• 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.
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• According to information generated by the USGS (7.5 Minute Series Ma p s),the subject property Y is not N
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located within a wetlands or riparian area that might otherwise impair or preclude the subject's current
and/or anticipated future land uses. Uj
• 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 a
refer to the appraiser's Curriculum Vitae as outlined subsequently in this appraisal report for 0
information pertaining to education, background, work experience, types of properties appraised, a
summary of various clientele,etc.
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Based upon the information, data and reasoning as set forth within this Summary Appraisal Report, my R
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opinion as to a reasonable estimate of market value for the subject property(building and parcels as one
economic unit)on an As-Is Basis under fee simple ownership,as of July 24,2013 would be: C0
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SAY: $650,000
SIX HUNDRED FIFTY THOUSAND DOLLARS
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Respectfully submitted,
TIERRA WEST m
Appraisal&Land Use Dynamics,Inc. R
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Shelli Holmes, Senior Appraiser ==
Certified General Real Estate Appraiser
CA#AG016181 (Exp. 08/14/2014)
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TIERRA WEST Prepared Exclusively For:
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Packet Pc. 581