HomeMy WebLinkAbout2017-054 1 RESOLUTION NO. 2017-54
2 RESOLUTION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO APPROVING THE PURCHASE AND SALE
3 AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND THE SUCCESSOR
4 AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
WITH RESPECT TO THE REAL PROPERTY LOCATED AT 280 SOUTH "E" STREET,
5 SAN BERNARDINO, CALIFORNIA (APN 0136-11-26), AND APPROVING CERTAIN
RELATED ACTIONS
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7 WHEREAS, pursuant to Health and Safety Code (the "HSC") § 34172 (a) (1), the
8 Redevelopment Agency of the City of San Bernardino was dissolved on February 1, 2012; and
9 WHEREAS, consistent with the provisions of the HSC, on January 9, 2012 the Mayor and
10 City Council of the City of San Bernardino elected to serve in the capacity of the Successor Agency
11 to the Redevelopment Agency of the City of San Bernardino (the"Successor Agency"); and
12 WHEREAS, the Oversight Board for the Successor Agency ("Oversight Board") has been
13 established pursuant to HSC § 34179 to assist in the wind-down of the dissolved redevelopment
14 agency; and
15 WHEREAS, on September 15, 2015, the Successor Agency submitted its Oversight
16 Board-approved Long-Range Property Management Plan (the "LRPMP") to the California
17 Department of Finance (the "DOF"); and
18 WHEREAS, on December 31, 2015, the DOF approved the Successor Agency's LRPMP
19 and notified the Successor Agency that pursuant to HSC § 34191.3, the approved LRPMP shall
20 govern, and supersede all other provisions relating to the disposition and use of all the real property
21 assets of the former redevelopment agency; and
22 WHEREAS, the approved LRPMP, which addresses the disposition and use of the real
23 property assets held by the Successor Agency, includes 230 parcels of land grouped into forty-six
24 (46) separate sites, eighteen (18) of which were designated as government use sites, seven (7) of
25 which are designated as future development sites and twenty-one (21) of which were designated to
26 be sold; and
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I WHEREAS, consistent with the foregoing,the Successor Agency is the owner of that certain
2 real property consisting of approximately 27.20 acres of vacant land located at 280 South "E" Street,
3 San Bernardino,California(APN 0136-111-26)(the "Property"); and
4 WHEREAS, within the LRPMP, the Property is: i) identified as Site No. 6; ii) described as a
5 baseball stadium park; iii) designated for government use; and iv) more fully described within Exhibit
6 "A" attached hereto,which is an excerpt from the LRPMP; and
7 WHEREAS, in its December 31, 2015 letter approving the LRPMP, the California
8 Department of Finance (the "DOF") unilaterally amended the LRPMP with respect only to the
9 Property to require its sale; and
10 WHEREAS, after the approval of the LRPMP, the Successor Agency appealed DOF's
11 unilateral decision to reclassify the Property from "government use" to "for sale"; however, on June
12 24, 2016, the DOF denied the Successor Agency's appeal related to the Property and notified the
13 Successor Agency that the Property must be sold and that it may be sold to a third party or to a
14 public entity, which could include the City of San Bernardino (the "City"), at any price agreed upon
15 by the affected parties without DOF's review or approval; and
16 WHEREAS, notwithstanding DOF's June 24, 2016 notification, the LRPMP requires that
17 the Successor Agency obtain Oversight Board and DOF approval of property sales; and
18 WHEREAS, consistent with DOF's direction, the City wishes to purchase and the Successor
19 Agency wishes to sell the Property for a fair and reasonable price; and
20 WHEREAS, to establish a fair and reasonable price for the Property, the Successor Agency
21 engaged Valbridge Property Advisors (the "Valbridge")to value the Property; and
22 WHEREAS, as more particularly described within the Valbridge Appraisal, a summary
23 copy of which is appended to this Resolution as Exhibit`B", it is Valbridge's opinion that the value
24 of the Property, as though vacant, is $4,440,000 (the "Vacant Land Value") (see paragraph 4, page
25 58 of the Valbridge appraisal); and
26 WHEREAS, given that the existing improvements on the Property are single-purpose, not
27 readily adaptable to an alternate and highest and best use and would have to be removed to allow
28 for a modern reuse of the property consistent with existing land-use restrictions, the Successor
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I Agency engaged TKE Engineering, an Inland Empire-based civil engineering firm with experience
2 with demolition projects, to conduct an engineering study for the purpose of determining the
3 estimated cost of demolishing the existing improvements to determine at a net Property value (the
4 "TKE Engineering Study"); and
5 WHEREAS, as more particularly described within the December 2, 2016 TKE
6 Engineering Study, a copy of which is appended to this Resolution as Exhibit "C", the demolition
7 costs for the existing improvements are projected to be $4,400,000 (the "Projected Demolition
8 Costs"); and
9 WHEREAS, although Valbridge attempted to arrive at a net Property value through an
10 elaborate process of economic extrapolation, the result was deemed inadequate based on an
11 apparent lack of understanding with respect to the: i) currently viable economic trends in the City
12 (i.e., Valbridge's reuse assumptions were economically unrealistic); and ii) practical site
13 preparation prerequisites that would be required for reusing the Property for modern alternate and
14 highest and best uses (i.e., Valbridge lacks civil engineering experience, did not engage a civil
15 engineer to assist them and appears to be unfamiliar with both developer and local government site
16 development requirements); and
17 WHEREAS, TKE Engineering has prepared a March 15, 2017 supplement to the TKE
18 Engineering Study that explains why the Project Demolition Costs remain valid and why the
19 theoretical demolition costs presented by Valbridge should not be considered, a copy of which is
20 included within Exhibit"C"to this Resolution; and
21 WHEREAS, in consideration of the foregoing, the Successor Agency has: i) accepted
22 Valbridge's Vacant Land Value as reasonable; ii) not accepted Valbridge's opinion regarding its
23 theoretical demolition costs as reasonable; and iii) accepted TKE's Projected Demolition Costs as
24 reasonable; and
25 WHEREAS, based on the foregoing, it is concluded that the net value of the Property is
26 $40,000, which is equal to the Vacant Land Value less the Projected Demolition Costs (i.e.,
27 $4,440,000 less $4,400,000 = $40,000) (the "Purchase Price"); and
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1 WHEREAS, this Resolution will approve the Purchase and Sale Agreement (the
2 "Agreement") between the Successor Agency and the City with respect to the Property, a copy of
3 which is attached to this Resolution as Exhibit"D", and authorize certain related actions; and
4 WHEREAS, consistent with the provisions of the HSC and the LRPMP with respect to
5 real property to be sold, the effectiveness of the Agreement is subject to the approval of the
6 Oversight Board and the DOF; and
7 WHEREAS, subject to the approvals of the Oversight Board and DOF, the Successor
8 Agency intends to distribute the land sale proceeds to the San Bernardino County Auditor-
9 Controller for distribution to the taxing entities; and
10 WHEREAS, all actions required by all applicable law to be taken by the Successor
11 Agency with respect to the Agreement have been taken in an appropriate and timely manner; and
12 WHEREAS, the Successor Agency has reviewed the staff report in connection with this
13 matter and has evaluated other information provided to it pertaining to the findings proposed to be
14 made hereunder; and
15 WHEREAS, this Resolution has been reviewed with respect to applicability of the
16 California Environmental Quality Act (the "CEQA"), the State CEQA Guidelines (California Code
17 of Regulations, Title 14, § 15000 et seq., hereafter the "CEQA Guidelines"), and the City's
18 environmental guidelines; and
19 WHEREAS, this Resolution does not constitute a "project" for purposes of CEQA, as that
20 term is defined by CEQA Guidelines § 15378, because this Resolution is an organizational or
21 administrative activity that will not result in a direct or indirect physical change in the environment,
22 per § 15378 (b) (5) of the CEQA Guidelines; and
23 WHEREAS, all of the prerequisites with respect to the approval of this Resolution have
24 been met.
25 BE IT RESOLVED BY THE SUCCESSOR AGENCY TO THE REDEVELOPMENT
26 AGENCY OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
27 Section 1. The foregoing recitals are true and correct and are a substantive part of this
28 Resolution.
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I Section 2. The Purchase Price for the Property is determined to be fair and reasonable.
2 Section 3. The Agreement for the purchase and sale of the Property, attached hereto as
3 Exhibit"D", is approved.
4 Section 4. On behalf of the Successor Agency, the City Manager, in the capacity as
5 Executive Director of the Successor Agency, is authorized and directed to: i)
6 execute the Agreement in substantially the form presented; ii) make
7 ministerial revisions to the Agreement which do not increase the Successor
8 Agency's obligations or materially reduce the consideration payable to the
9 Successor Agency; iii) sign a quitclaim deed and any other documents the
10 execution of which is necessary or appropriate to carry out and implement
11 the Agreement; iv) administer the Successor Agency's obligations under the
12 Agreement; and v) take such other actions and execute such other documents
13 as are necessary as may otherwise be required to fulfill the intent of this
14 Resolution.
15 Section 5. This Resolution is not a "project" for purposes of CEQA, as that term is
16 defined by Guidelines § 15378, because this Resolution is an organizational
17 or administrative activity that will not result in a direct or indirect physical
18 change in the environment, per § 15378 (b) (5) of the Guidelines.
19 Section 6. This Resolution shall take effect only after its adoption and execution in the
20 manner as required by the City Charter and San Bernardino Municipal Code
21 and the approval of the Agreement by the Oversight Board and the DOF.
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I RESOLUTION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO APPROVING THE PURCHASE AND SALE
2 AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND THE SUCCESSOR
3 AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
WITH RESPECT TO THE REAL PROPERTY LOCATED AT 280 SOUTH "E" STREET,
4 SAN BERNARDINO, CALIFORNIA (APN 0136-11-26), AND APPROVING CERTAIN
RELATED ACTIONS
5
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City
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7 Council of the City of San Bernardino, at a Regular Joint meeting thereof, held on the 20th day of
8 March, 2017, by the following vote, to wit:
9 Council Members Ayes Nays Abstain Absent
10 MARQUEZ X
11 BARRIOS X
12 VALDIVIA X
13 SHORETT X(M)
14 NICKEL X
15 RICHARD X
MULVIHILL X(S)
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18 � Geo geann Hanna, CMC, City Clerk
19 The foregoing Resolution is hereby approved this o2Zr dayo arch 20 . ')
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21 R. Carey Davis,mayor
City of San Bernardino
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Approved as to Form:
23 Gary D. Saenz, City Attorney
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25 By:
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6
' r I ` EEMENT
"URCHASE AN."D SALE AGR
(REAL ESTATE)
THIS''PURCHASE AND SALE AGREEMENT 'the "'Afar eernent"') made tbis' day of March,
2/101.7 by and betv%,;een. it of'San Bernardino, a municipal corponation and charter city (the "Citv") and the
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Successor Agency to the Redevelopment Agency of the City of San Bernardino, a public body corporate
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and politic (the '�Successor -Age.n.ev"). Collecti'velv, CItv and Successor Aglency are referred to herein as the
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'Tartles".
WITNESSETH:
.Omw" � � � - - � � *K- -
WHEREAS, pursuant to I-lealth and Safety Code (the 14SU") § 34172 (EO (1), the Redevelopment
Agency of the City of San Bernardino was dissolved Februan, 1 20 1]2 -, and
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WHEREAS, consl*stent with. the provisions of the I-ISC., on January 9,the Mavor and Cltv
Council of the City elected to serve in the. capacitv of the Successor Agency.. and
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WHERE AS, the Oversight Board to the Successor Agency (:the "Overs. Board") has been
establIshed pursuant to H.SC § 34179 to assist in the wind -down of the dissolved redevelopment agency;
and
WHEREAS, the Successor Agency Is the owner of that certain real property cons-isting of
approximately 27. 20 acres of'vacant land locrated at 280 South "E"" Street, San B=ardihio. California (APN'
0136-111-26) and whichils depictedin Exhibit "A" attcached hereto (the Trop rt `); and
WHEREAS, the llrope�,,, i's identified as Site No. 6 within the Successor Agency's Long -Range
Pro % *�2.
perty Management Plan. (the "LRPMP") as abaseball stadium park that was designtated -within the LRI)X111
'te that would be transferred to the Cav, at no cost- and.
as a government use sl
WHEREAS, in Its December 31, 2016 letter approving the LRPMP, the California Department of
Finance (the '"DOF"') unilaterallyamended the LRPMP with. respect only to the Propert-v -to require its sale- and
WHEREAS,after the approval of the l*..,.R*PM.Pthe SUCcessor Agency, api nilatenal dec's','on -to
pealed DOF's u
reclassiA, the'Propei-ty ftom"government. use" to "fior sale"'; and
WHEREAS, on June 2.4, 20161 the DOF denied the Successor Agency's appeal related to the Property and
notified the Successor Agency t . fiat the ProperNr must be sold. and that 'it may be sold to a. third partf or to a. public entity,
which could include the 0tv of San Beniardino (the �`Clt at any -price ag
greed upon by the affected parties wk
I 'Rhout
DOF'sl review or approval; and
WHEREAS, ilotwithstanding DOF's June '249-, '21016 nod-fication. the requires that the Successor
Ageiicy obtain Oversight Board and DOF approval of property, sales; and
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WHEREAS, con,sistent with DOY"s direction Ity
the C* wishes to purchase and the Successor Agency
wishes to s&II the Property pursuant to the terms and conditions described herein; and.
WHEREAS, to establish a fair and reasonable price for the Property, the Successor Agency
enaaged Vatbridge Propertv Advisors ("Valbridge") to value the Propertv- and
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WHEREAS, as more car y: desen'bed NNIthin the Valb]Uge Appraisal., it is Valbri*dge's opiniion
that -the -value ofthe Property, as though vacant, 'is $4,440,000 ("Vacant Land Vatue"); and
WHERJEAS, given that the, existing im rovenients on the, Propertv are single -purpose, not readily
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adaptable an alternate and highest and best -use and - d hzive to be removed to allow for a modem reuse
o 1' the prq I
perty cons -stent w*th ex sfing larid-use restrictions, the Successor Agency enga&�ed TKE
Engi-neen'ng,, an Inland Ernpire-based civil engineering film with experience Vvith demolition projects, to
conduct an engineteiring study for the purpose of determiltlingthe estimated cost of demolishina the. existing
impro',vements to determine at a net Property value (the "TKE Engineenng Studv"); -md
WHEREAS, as more particularly des en'bed NVitbin flie December '2., 2016 rKE, Engineering Stud
Y�
the demolition costs ft)r -the existi-n-9 improvements are pr to be $4,400,000 (the"Projected Demolition
Costs"'),- and
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WHEREAS, although Valbnd.ge attempted to arrive at a net Property value through an elaborate
process of economicextrapolatllon, the result was deemed 'Inadequate based on a lack of understanding with.
respect to the: i) currently viable economic trends in. the City (i.e., Va.Ibn'dge's reuse assumptions were
economicallv unreafistic)-,and 1i) practical. site prq-tat',,ation prerequisites that would. be required for reu,131ing the
Pr for modem alternate mid highest and best uses (I.e., Valbn'd-ge lacks civil engineefin g experience, did
not engage a civil engineer to assist them and. appears to be unfimmliar wim 'both developer arid local
goveniment site development requirements); and
WHEREAS, TKE Engineerin.g has prepared a March15 ). 12.0 17 supplement to the TKE Engineering
Study that explains why the Project Demolition Costs remain valid and why the theoretical �:oiiontcosts
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presented by Valbr d hould not be considered; and
WHEREAS, in consideration of the furecyoing. the Successor Agency has: 1) accepted. Valbrid le's
C� .1 &
Vacant an Value as reasonable; 10 not accepted Va. lbfidge's opinion regarding its theoretical. ernoli i
ition
costs as reasonable- andi'll) accepeed EKE's Pr gected Demolition Costs as reasonable.- and
WHEREAS, based on the foregoing, it is cone I luded that the net value of the Property is $40,000,
whl,ch is equal to the Vacant Land Value less the Projected Det'nolition Costs (Le., $4,440,000 less $4,,400,,000
�40.000)- and
WHEREAS, the effectiveness of thisAgTeement is sub'
ject to the approval of the sale of the, Property
to the City consistent with the ten -ns ofthe.Agreemen t by -the Oversight Board and DOS; and
NOW, THEREFORE . 'in consideration of the mutual c(ivenants and conditions set fodb hereinafter,
the Parties agree as follows:
.1. Incorporati*on of Recitals.- The foregoing Recilals are true. and correct and are a substantive part. of
this Agreement.
Adm'n*stration of Agreement- The transaction described herein shall be adni.Inistered. exclus.'I'vely by
the Cityand the. Successor AcTency.
3. Purchase Price-. The�urchase price for the Property sall be Forty Thousand Dollars ($40,000.0 W V
(tile. "Purchase Pn'ce"), Nkrhich represents the Vacant I.,and Value less the Projected Demolition Costs,,
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and shall be payable upon recordation of a quItclalm deed. the fonn of - h 'is attached hereto as
F-i,xb_1b.1*t;"T3
4. CondMon of Propert- ae
Except as specifical1v described. in this Agreement. Successor A ncy- hereby
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sells -the Property to City an City hereby' purchases the I-Iroperef from Successor Agencv in its ewisting
",a " condition.
*bute the
Distnibution of e
Proceds, Pursuant to HSC § 34 19 1.5 (B), the Successor Agency slia-11. distri
net proceeds from the Purchase Price to -the San Bernardino CCunt yAudifor Controller (the "CAU")
�fir CAG's subsequent distribution to the taxing entities, as defil.11-ediD, HSC § 34171 (k). Net proceeds
shall mean the Purchase Price. less ce.iv ofthe Citv,"'s costs described in Section. No. 6 of :his Agreement,
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ifany.
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6. Commissions and Fees.- Tb e Parties have. not engaged anv real estate 'broker NN"ith respect to the
transfier of the Property and consequently no real estate commissions or fees are appficable . In
addition, there. are. no otherfie-es a ficable to the purchase and sale of the Property.
IV I e
7. Governing Law.- This Agreement shall be tyovern ed. by w construed in. accordance with the lakes of
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the State of California,,
8. Captions: The captions a g in -this Agreement are for conveni nly ar
ppearin l ience o e not part ofthis
Agreement mid shall notbe consIdered 'In interpreting this Agreement.
9. Amendments-, This Agreement may not be altered., amended, or modified except by a writing
executed bv the Parties.
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10. Effectiveness of this Agreement The effectiveness of this Agreement is subject to the fillowin
prerequisites- 1) the Parties havre al -.)proved and have caused this Agreement to be executed by their
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designated representatives; 10 this Agreement has been. approved by the Oversight Board; and ill) the
Oversight Board's resolution approving this Agreement has been approved bit the DOR
11. Entire Agreement: This Agreement constitutes the entire agreement bet-vNi-een the Parties with, regard.
to the subject matter herein and supersedes all prior oral. and written agreements and understandings
betxveen the Parties with respect to the purchase and sale ofthe Property'.
(Signatures on Following Page)
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IN WITNESS WHEREOF, the Pamies have eC.A cut d this Agreement as of the date first hereinabove
written.
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EAHIBIT "Alt
PROPERTY DEPICTION
ESS: 280 S. "'E"' Street
AI? 0136-1,11-2.6
m
RECORDING REQUESTED BY:
Successor Agency to the
Redevelopment Agency of the City of
San Bernardino
(NOT FOR SK_31NAWRE)
EXHIBIT
This document is exempt from the
payment of a recording fee pursuant to
Government Code Section 27383
DOCUMENTARY TRANSFER TAX $ NONE
QUITCLAIM DEED
(Form Only - Not for Signature)
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the Successor Agency
to the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic (the
"'Grantor") does hereby remise, release and quitclaim to the City of San Bernardino, a public body,
corporate and politic (the "Grantee"), any interest that Grantor may have in the real property in the City of
San Bernardino, County of San Bernardino, State of California, described in Attachment "A" attached
hereto and incorporated herein by this reference.
SUCCESSOR AGENCY TO THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO, a public
body,, corporate and politic
Dated By: NOT FOR SIGNATURE
Mark Scoff
Executive Director
Successor Agency to the Redevelopment Agency of
the City of San Bernardino
M
nil
111!�;,� i ij� ir��!�i 1111--1111 1111
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This is to certify that the interest in real property conveyed by written deed or grant dated
) 2016 from the Successor Agency to the Redevelopment Agency of the City of San Bernardino, is hereby
accepted by the undersigned officer or agent on behalf of the City of San Bernardino, pursuant to authority
conferred by the City of San Bernardino on March 20, 2017, pursuant to Resolution No. 2017 -
and the City of San Bernardino consents to recordation thereof by its duly authorized officer.
State of California SS
County of San Bernardino
On before me, Notary Public,
personally appeared who proved to me on the basis of satisfactory
evidence to be the person whose name is subscribed to the within instrument and who acknowledged to me that
he/she executed the same in his/her authorized capacity, and by his/her signature on the instrument the person, or
entity upon behalf of which the person acted, executed the instrument.
I certify under PENALTY of PERJURY under the laws of the State of California that the foregoing paragraph is true
and correct.
WITNESS my hand and official seal.
(Signature of Notary) (This area for official notarial seal)