HomeMy WebLinkAboutS6- Public Works — the No.
CITY OF SAN BERNARDINO - REQUEST F(%R COUNCIL ACTION
From: ROGER G. HARDGRAVE, Director Subject: Establish policy relative to vacant City-
owned property located at 1505 N. Waterman
Dept: Public Works/Engineering Avenue (Gallo's Flowers & Gifts)
Date: April 14, 1995
Synopsis of Previous Council action:
06/21/76 Resolution No. 12467 adopted authorizing execution of a lease with Albert and
Kathryn Gallo relative to City owned property located at 1505 North Waterman
Avenue, for a period of ten years, beginning July 7, 1976, and ending July 6,
1986. Rental amounts of $300 and $350 per month.
12/22/86 Resolution No. 86-521 adopted authorizing execution of a First Amendment to
Lease with Albert M. Gallo, effective July 1, 1986, extending the term of
lease for a 5-year period. Rental amount of $400 per month.
01/03/89 Resolution No. 89-02 adopted authorizing execution of a Second Amendment to
Lease and Consent to Assignment (to Yonsuk Son for a period of 5 years) rela-
tive to a lease with Albert and Kathryn Gallo for City owned property located
at 1505 N. Waterman Avenue. Rental amount of $1000 per month.
06/08/94 Resolution No. 94-127 adopted authorizing execution of a two year lease to
Yonsuk Son. RantAl amount of 51100 par month_
Recommended motion:
1. That Staff be directed to proceed with those actions necessary to sell
vacant City-owned property located at 1505 N. Waterman Avenue, including
but not limited to, having property appraised
cc: Shauna Clark, City Administrator ez
Barbara Pachon, Director of Finance Signature
James F. Penman, City Attorney
Contact person: one DeBo l t Phone: 53?8
Supporting data attached: Staf f Report_ Map Ward: 2
FUNDING REQUIREMENTS: Amount:_ $3 ,500+
Source: (Acct. No.)
(Acct. Description)
Finance:
Council Notes: _
75-0262 Agenda Item No
l
CITY OF SAN BERK RDIHO - REQUEST F R COUNCIL ACTION
STAFF REPORT
On February 21, 1995, the current tenant (Yonsuk Son) vacated the building with ap-
proximately 10 months remaining on her lease. Mrs. Son left owing two months ($2200)
outstanding lease payments, but has filed for bankruptcy so it is unlikely the City
will recover its money. Also, the building was left in great disrepair by the tenant.
Currently we have a vacant building which needs (at a conservative guess)
approximately $20,000.00 worth of repairs and upgrades to make it economically
attractive either to a tenant or purchaser. In order to sell or to lease the building
with an option to purchase the City needs to have the building appraised in its cur-
rent condition. Time is of the essence. No matter what is decided regarding the
property, it needs to happen soon - so far there has been little vandalism - but it is
only a matter of time until it occurs.
There are several options which could be considered regarding the building which would
involve little cash outlay by the City other than the cost of an appraisal:
1. Sell the building in its current (un-rehabilited state) as quickly as possible.
If this is the direction chosen, it will be necessary to add a condition to the sale
that all necessary repairs commence within thirty days of the close of escrow.
2. If the City doesn't wish to sell right now it could consider a "lease with
option to purchase" . The same condition would be placed on the lessee/buyer - repairs
must commence within thirty days. In this case the property would be appraised and
the property put out to bid for "lease with option to purchase" . The option price
would be the (negotiated) appraised price. This way the lessee would know what the
property and repairs will cost and could make arrangements for any necessary loans,
etc. Also, the property would be repaired and income would be generated for the City.
3. The third option would be to enter into a long-term lease. Again, it would be
wise to appraise the building to determine how much repair work needs to be done by
the tenant. At some later date the City could consider selling the property "subject
to the lease" .
This third option could be of interest to an investor, whereas the first two options
would more than likely be of interest to someone who wishes to personally make use of
the property.
The City Administrator recommends that the building be sold immediately, adoption of
the Motion would start the sales process.
04/14/95 2
75-0264
a
• D
M
wim 31
— EVANS - STREET
� a
1{ M
� I
w .
z
w
Q
. p�0
,LIT' 44
JJFZ 11,11.
Lij
sue'
its ate
z �
PROPERTY FOLDER /# 7 / ' -�
a
ti
GILBERT - STREET
. 4
J. OAWSON