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HomeMy WebLinkAbout25- Public Works 4CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: MICHAEL E. HAYS, Acting Director Subject: Resolution Determining fair Market Value and Giving Notice Inviting Bids for Sale of City Dept: Public Works/Engineering Owned Property --- Northwest of Little League Date: April 29, 1998 ORIG IN AL Drive,Northeast of I-215 Freeway File No. 15.05-215 Synopsis of Previous Council Action: MCC DATE: 05-18-98 11-03-97—Authorization was given to proceed with the sale of City Owned Land Northwest of Little League Drive,Northeast of I-215 Freeway. 04-06-98—Authorization was given to prepare Notice Inviting Bids for City Owned Land Northwest of Little League Drive,Northeast of I-215 Freeway, exclusive of the 5 acre parcel on the corner of Little League Drive and the Frontage Road. NPR � 0 19g Recommended Motion: ADOPT RESOLUTION Michael E. H Contact Person: Laszlo "Les" Fogassy Phone: 5026 Supporting data attached: Staff Rept., Appr. Summary,Maps,Bid Spec.,Res. Ward: 5 FUNDING REQUIREMENTS: Amount: None Source (Acct. No.) N/A (Acct. Description) N/A Finance: Council Notes: Mg1gy Agenda Item No. d5 C.f i'Y OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT Subject: Resolution Giving Notice Inviting Bids for Sale of City Owned Property --- Northwest of Little League Drive,Northeast of I-215 Freeway Background: The city acquired the subject property in October, 1997, through a foreclosure action, which became necessary as a result of the property owner defaulting on assessment payments for Community Facilities District No. 995 (Verdemont Infrastructure Fees). The total amount of the delinquency is approximately $2,120,000. The subject property is located in the Northwest part of the City, generally Northeast of the 1-215 Freeway and Northwest of Little League Drive, consisting of approximately 99.5 acres of undeveloped land. The property is mostly contiguous, with the exception of a 5 acre parcel at the intersection of Little League Drive and the I-215 Freeway. On November 3, 1997, authorization was given to proceed with the sale of this property and to obtain an appraisal. Appraisal service were obtained from Leonard E. Lichter, and an appraisal report received on 2-9-98. The appraiser's determination of fair market value is $3,250,665.00. A portion of this property was subdivided in 1987 (Tract No. 12756—Cable Lake project), with 4,500— 5,000 square foot lots. As a result of the City's General plan update at that time, the minimum lot size allowed for this area was changed to 10,800 square foot lots. The owner at that time filed a lawsuit against the City and as a result of a settlement agreement, it was agreed that the area would be "remapped" to larger lot sizes. Tentative Tract maps were submitted, but never recorded and the property was subsequently acquired by a new owner. Tract No. 12756 dedicated some large open areas to the City for park purposes, but ownership of these open areas remains under the previous owner(James Bice) from whom the City acquired the surrounding area through the foreclosure action. Additionally, a small .57 acre parcel (APN 261-111-37) was inadvertently excluded from the Judgement and foreclosure action and would need to be acquired under a separate action and will thus need to be excluded from this sale. Total square footage of open space areas and excluded parcel is 163,835 square feet (3.76 acres). On April 4, 1998, authorization was given to prepare Notice Inviting Bids and Bid Specifications for the Sale of this property, excluding a 5 acre parcel on the corner of Little League Drive and Frontage Road, as a possible sight for a future fire station. The adjusted fair market value, after excluding the above mentioned parcels and the 5 acre parcel is $2,964,765.75. The attached summary shows the adjustments made to the appraisal. The real Property Section has prepared Bid Specifications relative to the sale of this property, a copy of which is attached for your information. The attached Resolution determines the fair market value at $2,964,765.75 and gives Notice Inviting Bids for the sale of this property. Bid opening will be on June 10, 1998 and the results will be presented at the June 15, 1998 Council Meeting . Financial Impact: Proceeds from the sale of this property will be used to pay the delinquent assessment district amounts, which are approximately $2,120,000 and delinquent property taxes in the amount of approximately $305,800. Costs relative to this sale, such as Title fees, Escrow fees, etc., which are estimated not to exceed $6,500, will be paid for by the proceeds of the sale. Recommendation: It is recommended that the attached Resolution determining fair market value and giving Notice Inviting Bids for the sale of sale of city owned property located Northwest of Little League Drive,Northeast of I- 215 Freeway, be adopted. CCP 1 RESOLUTION NO. 2 RESOLUTION OF THE CITY OF SAN BERNARDINO GIVING NOTICE 3 INVITING COMPETITIVE SEALED AND ORAL BIDS FOR THE SALE OF CERTAIN 4 REAL PROPERTY OWNED BY SAID CITY,GENERALLY LOCATED NORTHWEST OF LITTLE LEAGUE DRIVE,NORTHEAST OF THE I-215 FREEWAY IN SAID CITY,AND 5 DETERMINING THE FAIR MARKET VALUE AND ESTABLISHING MINIMUM SALE PRICE FOR SAID PROPERTY. 6 7 WHEREAS, the City of San Bernardino, a municipal corporation, is the owner of the g hereinafter described parcel of real property, generally located at Northwest of Little League Drive, 9 Northeast of the I-215 Freeway the City of San Bernardino, State of California; and 10 WHEREAS, the Mayor and Common Council of the City of San Bernardino find and 11 determine that there is no necessity for the City's ownership of said property; and 12 13 WHEREAS,the Mayor and Council of said City believe it to be in the best interest of said 14 City that said parcel of real property be disposed of at the highest price obtainable in the open 15 market; and 16 WHEREAS, an appraisal was prepared by Len E. Lichter, General Appraiser, indicating a 17 fair market value, after adjustments, of$2,964,765.75. Said adjustments were made to reflect certain 18 19 lots that are not a part of this sale, but were included in the appraiser's report. 20 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 21 22 SECTION 1. Notice is hereby given inviting competitive sealed and oral bid proposals for 23 the disposition of the following real property,more particularly described in and subject to the terms 24 of Bid Specification No. 15.05-215, on file in the Department of Public Works, Real Property 25 Section, City Hall, 300 N. "D" Street, San Bernardino, California, and generally described as 26 follows: 27 28 Approximately 90 acres of vacant land located Northwest of Little League Drive,Northeast 04/29/98 1 RESOLUTION DETERMINING FAIR MARKET VALUE AND INVITING BIDS FOR THE SALE OF CITY PROPERTY LOCATED NORTHWEST OF LITTLE LEAGUE DRIVE,NORTHEAST OF THE I-215 FREEWAY IN THE CITY OF SAN BERNARDINO. 1 2 of the I-215 Freeway in the City of San Bernardino. A full legal description is set forth in said Bid 3 Specification No. 15.05-215. 4 5 SECTION 2. The minimum acceptable bid amount for said property is $2,964,765.75 and 6 is hereby established as the fair market value of said property. 7 SECTION 3. Sealed bid proposals must be accompanied by the following: 8 (a) Cashier's check in an amount equal to 10%of the total amount of the purchase price bid. 9 SECTION 4. Sealed bids must be delivered to the Department of Public Works, Real 10 11 Property Section,City Hall, 300 North "D" Street, San Bernardino, California,prior to 2:00 am June 12 10, 1998, at which time said sealed bids shall be opened and publicly declared. The results of said 13 bidding shall be submitted to the Mayor and Common Council at the Hour of 10:00 am at the June 14 15, 1998 Council meeting. At that time, oral bids may be received as follows: 15 (a) in$10,000 increments for the outright purchase of the property,provided that the initial 16 17 bid shall be an amount not less than the highest sealed bid plus $10,000. The successful oral bidder 18 shall be required to make a non-refundable deposit with the City Clerk, in the form of cash or a 19 cashier's check, prior to the end of the meeting in an amount equal to 10%of the purchase price bid. 20 SECTION 5. Copies of Bid Specifications,Description of Property and Official Bid Form 21 may be obtained from the Department of Public Works, Real Property Section, City Hall, 3rd Floor, 22 23 300 N. "D" Street, San Bernardino, California, 92418. 24 SECTION 6. All written bid proposals must be signed, sealed and delivered as indicated in 25 Section 5.No bid proposal will be considered which fails to offer a sum equal to or greater than the 26 minimum acceptable bid prices established herein, or which is filed at a later time or at a different 27 place than as stated in Section 5, unless there is substantial compliance as determined by the City 28 REV 05/11/98 2 RESOLUTION DETERMINING FAIR MARKET VALUE AND INVITING BIDS FOR THE SALE OF CITY PROPERTY LOCATED NORTHWEST OF LITTLE LEAGUE DRIVE,NORTHEAST OF THE I-215 FREEWAY IN THE CITY OF SAN BERNARDINO. 1 2 Administrator in his sole discretion. The Mayor and Common Council reserve the right to reject any 3 4 and all bids submitted. The Mayor and Common Council also reserve the right to make,at their sole 5 discretion, a determination as to whether the property shall be sold. 6 SECTION 7. This resolution shall be posted on or near the door of the Council Chamber, 7 City Hall, San Bernardino, California, for at least five consecutive days prior to the date set for 8 opening of bids and a Notice Inviting Bids for the disposition of said property shall be published not 9 10 less than 10 days prior to said bid opening date in the San Bernardino Sun, a newspaper of general 11 circulation published and circulated in said City. 12 13 14 15 16 17 18 /// 19 20 21 22 23 /// 24 HI 25 26 27 28 04/29/98 3 RESOLUTION DETERMINING FAIR MARKET VALUE AND INVITING BIDS FOR THE SALE OF CITY PROPERTY LOCATED NORTHWEST OF LITTLE LEAGUE DRIVE,NORTHEAST OF THE I-215 FREEWAY IN THE CITY OF SAN BERNARDINO. 1 2 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and 3 Common Council of the City of San Bernardino at a meeting thereof held 4 5 on the day of , 19 , by the following vote, to wit: 6 Council Members: AYES NAYES ABSTAIN ABSENT 7 8 ESTRADA 9 LIEN 10 ARIAS 11 SCHNETZ 12 DEVLIN 13 14 ANDERSON 15 MILLER 16 17 18 City Clerk 19 20 The foregoing resolution is hereby approved this day of , 19 21 22 JUDITH VALLES, Mayor 23 City of San Bernardino 24 Approved as to form 25 and legal content: 26 JAMES F. PENMAN City Attorney 27 28 04/23/98 4 APPRAISAL ADJUSTMENT CALCULATIONS -CITY OWNED PROPERTY GENERALLY NORTHWEST OF LITTLE LEAGUE DRIVE,NORTHEAST OF THE I-215 FREEWAY Valuation of Total Area Prior to Adjustments as Determined by Appraiser Date of Appraisal 1/8/98 Land Area 4,334,220.00 Sq.Ft. = 99.50 Acres Fair Market Value $ 3,250,665.00 = 0.75 per Sq.Ft. Adjustment "A" APN 0261-111-37 Land Area 24,829.00 Sq.Ft. = 0.57 Acres Fair Market Value $ 18,621.75 Adjustment "B" Open Space Areas- Tract No. 12756 Land Area 139,006.00 Sq.Ft. = 3.19 Acres Fair Market Value $ 104,254.50 Adjustment "B" APN 0261-171-06 Land Area 217,364.00 Sq.Ft. = 4.99 Acres Fair Market Value $ 163,023.00 Total Land Area After Adjustments Land Area (Original) 4,334,220.00 Sq.Ft. = 99.50 Acres Adjustment"A" (24,829.00) Sq.Ft. _ (0.57) Acres Adjustment"B" (139,006.00) Sq.Ft. _ (3.19) Acres Adjustment"C' (217,364.00) Sq.Ft. _ (4.99) Acres Land Area (Adjusted) 3,953,021.00 Sq.Ft. = 90.75 Acres Valuation of Total Area After Adjustments Fair Market Value (Original) $ 3,250,665.00 Adjustment"A" $ (18,621.75) Adjustment"B" $ (104,254.50) Adjustment"C" $ (163,023.00) Fair Market Value (Adjusted) $ 2,964,765.75 3 _ - CITY PROPERTY PROPOSED TO BE SOLD PaacE� >•o a� 2 X4LL;,i F-b t r � 1 1 tat uvt 1 •� 1 h; tK � 1 31 A @ nAa - � � 1 1 '• A `� M.t�C.YtL aA � HA PIP LU� rt © - ♦♦ � � j 111 ; .a.o 1 1 k ` 2.6S AC rF I ,a lid ♦♦ 4[ ae S •D.,1, n.� � .sa.e: .c 13 ati VA SITE O 02 '� PassIB16 K y ,��f 2?S6� Abe FuTvl¢6 Fb2-; t ��}• +} SEE CAPK �61-171-06) , 951 IL r /V Lc X ' • vac:r •i ,mw If 1 1 act 12 44" b JE tt.af Kf COI. 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LOCATION AND DESCRIPTION OF PROPERTY TO BE SOLD: (A) Property Location: The subject property consists of approximately 90 acres vacant land, generally located Northwest of Little League Drive and Northeast of the I-215 Freeway, in the City of San Bernardino, California, referred to as Assessor's Parcel 0261-111-21, 23, 25, 29, 30, 33, 35 & 40; 0261-121-01, 02, 03, 13 & 14; 0261-451-01 thru 48; 0261-461-01 thru 66, and is more fully described in the Preliminary Title Report issued by First American Title, a copy of which is attached as Exhibit "A". (B) Zoning and Use: The subject property is currently zoned as RL, Residential Low as shown on the City's General Plan Map,with a minimum lot size of 10,800 square feet and a maximum density of 3.5 dwelling units per acre. The property is currently undeveloped,but a Tract Map,Tract No. 12756 has been recorded, which covers a portion of the 90 acres. Since the lot sizes within Tract No. 12756 do not conform to the City's minimum lot size requirement,the area will have to be remapped to conform prior to any development. Also note that the lettered lots A through E shown on said Tract Map, are not apart of this sale. The City has easements across these lots for park and landscaping purposes,but does not have fee title to them. The subject property is also located within a Flood Zone,designated by FEMA as AE. The subdivision of land and development of a single family residence project on this property will be subject to the City's General Plan and Development Code, as they exist at the time of development. Spec215 04/29/98 1 (C) Condition of Property: The subject property is being sold "AS IS", subject to conditions as set forth herein. 2. MINIMUM BID: The minimum acceptable bid, for said real property is$2,964,765.75,which has been determined to be to the Fair Market Value of the subject property,based on an appraisal that was prepared by Len E. Licther, General Appraiser, dated January 18, 1998. 3. INSPECTION: The subject property may be inspected by prospective bidders at will. 4. SEALED BIDS: Sealed bids, submitted on the Official Bid Form attached,will be received in the Department of Public Works, Real Property Section, Third Floor, City Hall, 300 North "D" Street, San Bernardino, California, until 2:00 p.m. June 10, 1998, at which time all bids received will be publicly opened and declared. All bids must be accompanied by a cashier's check in an amount of at least 10% (TEN PERCENT)of the amount bid. The results of said bidding shall be submitted to the Mayor and Common Council at regular Council meeting of June 15, 1998 at 10:00 a.m. All bids submitted must conform to the specifications as set forth herein. 5. ORAL BIDS: Oral bids may be made at the Council Meeting on the date and time stated above. Oral bids may be received in$10,000 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 $10,000. In the event of a successful oral bid,a cashier's check in an amount of at least 10%(TEN PERCENT)of the bid amount shall be deposited with the City Clerk prior to the end of said meeting, or as otherwise determined by the Mayor and Common Council. Spec215 05/12/98 2 6. UNSUCCESSFUL BIDS: All sealed bid deposits of unsuccessful bidders will be promptly returned,without interest, after determination of the successful bidder by the Mayor and Common Council, or upon rejection of all bids. 7. REJECTION OF BIDS: The mayor and Common Council shall have the right to reject any and all bids. 8. TERMS The City will consider terms for any portion of the total amount bid. 9. LIENS,EASEMENTS, ENCUMBRANCES & RESTRICTIONS: City assumes the bidder has inspected the Preliminary Title Report, a copy of which is attached hereto as Exhibit "A", and has full knowledge of any and all liens, easements, encumbrances and or restrictions affecting subject property as set forth in said Preliminary Title Report and is submitting his/her bid subject to those conditions except as follows: City shall pay, from cash proceeds of the sale, any delinquent taxes or assessments in the amounts due at the time of closing,or as otherwise mutually agreed, if cash proceeds are insufficient to cover such delinquencies. 10. SUCCESSFUL BIDDER: The successful bidder, as determined by the Mayor and Common Council, will be evaluated on the basis of purchase price bid and other factors including amount and length of terms,if any,interest rate, and qualifications of the bidder. In the event of two or more equal bids, the City reserves the right to select the bidder based on the most favorable terms and qualifications of the bidder. The successful bidder will be required to execute a mutually acceptable purchase agreement and to enter into escrow within 10 (TEN) days after said determination of the successful bidder. The escrow instructions shall include, but not be limited to : (A) The recording of the Grant Deed from the City, and the closing of escrow within sixty (60) Spec215 04/29/98 3 days, or as otherwise mutually agreed upon. (B) Title Policy fees shall be paid by the City. Escrow, and all other fees and closing costs, except as set forth in Paragraph D below, shall be split evenly between the City and the successful bidder. (C) In the event the purchaser retains the services of a Broker, any fees and commissions shall be paid by the purchaser, over and above the bid amount. The City does not intend to retain the services of a Broker for this transaction. (D)In the event of any failure by the successful bidder to execute and comply with the conditions as set forth herein, the deposit made by the successful bidder may be retained by the City as liquidated damages, and not as a penalty in the event of any failure on the part of the successful bidder. Spec215 04/29/98 4 OFFICIAL BID FORM SALE OF CITY-OWNED PROPERTY,CITY OF SAN BERNARDINO VACANT PARCEL OF LAND GENERALLY LOCATED NORTHWEST OF LITTLE LEAGUE DRIVE,NORTHEAST OF THE I-215 FREEWAY SAN BERNARDINO, CA PER SPECIFICATION NO. 15.05-215 In compliance with Specification No. 15.05-215,concerning the sale of the above City-owned property,the following bid is submitted: Dollars($ ), payable as follows: $ to be deposited into escrow prior to close of escrow, and the balance to be paid as follows: annual/monthly payment(s)of$ plus interest at the rate of %per annum on the unpaid balance,or as follows: 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 Common Council of the City of San Bernardino. Submission of this bid signifies that I understand and concur with the provisions outlined in Specification No. 15.05-215 and that I understand the subject property is being sold in an"AS-IS"condition. PRINTED NAME OF BIDDER SIGNATURE MAILING ADDRESS TELEPHONE NO. CITY,STATE,ZIP CODE Sealed bids,submitted on this official Bid Form,will be received until 2:00 p.m.,June 10, 1998,at the Department of Public Works, 3rd Floor, City Hall, 300 N. "D" Street, San Bernardino, California, 92418, at which time they will be publicly opened,examined and declared. 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 OF THE BID ENVELOPE: SEALED BID SALE OF CITY PROPERTY SPECIFICATION NO. 15.05-215