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I RESOLUTION NO. 2017-55
2 RESOLUTION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO APPROVING THE PURCHASE AND SALE
3 AGREEMENT AND JOINT ESCROW INSTRUCTIONS BETWEEN THE SUCCESSOR
4 AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
AND DAVID FRIEDMAN WITH RESPECT TO THE REAL PROPERTY LOCATED AT
5 385 NORTH "E" STREET, SAN BERNARDINO, CALIFORNIA (APN 0134-241-64) AND
APPROVING CERTAIN RELATED ACTIONS
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7 WHEREAS, pursuant to Health and Safety Code (the "HSC") § 34172 (a) (1), the
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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
10 and City Council of the City of San Bernardino elected to serve in the capacity of the Successor
11 Agency to the Redevelopment Agency of the City of San Bernardino (the "Successor Agency");
12 and
13 WHEREAS, the Oversight Board for the Successor Agency ("Oversight Board") has
14 been established pursuant to HSC § 34179 to assist in the wind-down of the dissolved
redevelopment agency; and
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WHEREAS, on September 15, 2015, the Successor Agency submitted its Oversight
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17 Board-approved Long-Range Property Management Plan (the "LRPMP") to the California
18 Department of Finance (the "DOF"); and
19 WHEREAS, on December 31, 2015, the DOF approved the Successor Agency's
20 LRPMP and notified the Successor Agency that pursuant to HSC § 34191.3, the approved
21 LRPMP shall govern, and supersede all other provisions relating to the disposition and use of all
22 the real property assets of the former redevelopment agency; and
23 WHEREAS, the approved LRPMP, which addresses the disposition. and use of the real
24 property assets held by the Successor Agency, includes 230 parcels of land grouped into forty-
25 six (46) separate sites, eighteen (18) of which were designated as government use sites, seven
26 (7) of which are designated as future development sites and twenty-one (21) of which were
27 designated to be sold; and
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1 WHEREAS, consistent with the foregoing, the Successor Agency is the owner of record
2 as to that certain real property consisting of an approximately 2,325 square foot unoccupied
3 building occupying approximately 0.056 acres of land located at 385 North "E" Street, San
4 Bernardino, California(APN 0134-241-64) (the"Property"); and
5 WHEREAS, within the LRPMP, the Property is: i) identified as Site No. 43; ii) described
6 as an unoccupied restaurant building; iii) designated for sale; and iv) more fully described within
7 Exhibit"A" attached hereto, which is an excerpt from the LRPMP; and
8 WHEREAS, pursuant to his letter dated December 22, 2016, David Friedman
9 ("Friedman")has offered to purchase the Property for $45,000.00 for the purpose of revitalizing the
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10 Property together with adjacent or nearby properties to enhance downtown San Bernardino's
11 business atmosphere at a future yet to be determined time (the "Friedman Offer Letter"), subject to
12 certain conditions, as more fully described within the Friedman Offer Letter, a copy of which is
13 attached to this Resolution as Exhibit"B"; and
14 WHEREAS, to determine whether the purchase price offered by Friedman is fair and
15 reasonable, the Successor Agency commissioned Lee & Associates Commercial Real Estate
16 Services (the "Lee & Associates") of Ontario California, a real estate brokerage firm familiar with
17 the industrial/commercial real estate market within the Inland Empire Region in general and the
18 City of San Bernardino in particular, to prepare a Broker's Opinion of Value (the "BOV") to
19 confirm if the purchase price offered by Friedman for the Property is fair and reasonable; and
20 WHEREAS, based on past practice, the DOF has acknowledged that BOVs are an
21 acceptable method and basis for confirming that the value of real property being sold by a successor
22 agency is fair and reasonable; and
23 WHEREAS, on February 11, 2017, the Successor Agency received the BOV from Lee &
24 Associates indicating its opinion that the market value of the Property is currently $40,000.00 (the
25 "BOV Market Value"); and
26 WHEREAS, in consideration that the $45,000.00 purchase price offered by Friedman for
27 the Property exceeds the BOV Market Value by $5,000.00 or 12.5%, it may be concluded that the
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I purchase price offered by Friedman for the Property is fair and reasonable, as more fully described
2 within the BOV, a copy of which is attached to this Resolution as Exhibit"C"; and
3 WHEREAS, this Resolution will approve the Purchase and Sale Agreement and Joint
4 Escrow Instructions (the "Agreement") between the Successor Agency and Friedman with
5 respect to the Property, a copy of which is attached to this Resolution as Exhibit "D", and
6 authorize certain related actions; and
7 WHEREAS, consistent with the provisions of the HSC and the LRPMP with respect to
8 real property to be sold, the effectiveness of the Agreement is subject to the approval of the
9 Oversight Board and the DOF; and
10 WHEREAS, subject to the approvals of the Oversight Board and DOF, the Successor
11 Agency intends to distribute the land sale proceeds to the San Bernardino County Auditor-
12 Controller for distribution to the taxing entities, less the costs of sale attributable to the Successor
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13 Agency that are described within the Agreement, and
14 WHEREAS, all actions required by all applicable law to be taken by the Successor Agency
15 with respect to the Agreement have been taken in an appropriate and timely manner; and
16 WHEREAS, the Successor Agency has reviewed the staff report in connection with this
17 matter and has evaluated other information provided to it pertaining to the findings proposed to be
18 made hereunder, and
19 WHEREAS, this Resolution has been reviewed with respect to applicability of the
20 California Environmental Quality Act (the "CEQA"), the State CEQA Guidelines (California Code
21 of Regulations, Title 14, § 15000 et seq., hereafter the "CEQA Guidelines"), and the City's
22 environmental guidelines; and
23 WHEREAS, this Resolution does not constitute a "project" for purposes of CEQA, as that
24 term is defined by CEQA Guidelines § 15378, because this Resolution is an organizational or
25 administrative activity that will not result in a direct or indirect physical change in the environment,
26 per § 15378 (b) (5) of the CEQA Guidelines; and
27 WHEREAS, all of the prerequisites with respect to the approval of this Resolution have
28 been met.
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1 BE IT RESOLVED BY THE SUCCESSOR AGENCY TO THE
2 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
3 Section 1. The foregoing Recitals are true and correct and are a substantive part of
4 this Resolution.
5 Section 2. The $45,000.00 purchase price for the Property is determined to be fair and
6 reasonable.
7 Section 3. The Agreement for the purchase and sale of the Property, attached hereto
8 as Exhibit"D", is approved.
9 Section 4. On behalf of the Successor Agency, the City Manager, in the capacity as
10 Executive Director of the Successor Agency, is authorized and directed
11 to: i) execute the Agreement in substantially the form presented; ii) make
12 ministerial revisions to the Agreement which do not increase the
13 Successor Agency's obligations or materially reduce the consideration
14 payable to the Successor Agency; iii) sign a grant deed and any other
15 documents the execution of which is necessary or appropriate to carry out
16 and implement the Agreement; iv) administer the Successor Agency's
17 obligations under the Agreement; and v) take such other actions and
18 execute such other documents as are necessary as may otherwise be
19 required to fulfill the intent of this Resolution.
20 Section 5. This Resolution is not a "project" for purposes of CEQA, as that term is
21 defined by Guidelines § 15378, because this Resolution is an
22 organizational or administrative activity that will not result in a direct or
23 indirect physical change in the environment, per § 15378 (b) (5) of the
24 Guidelines.
25 Section 6. This Resolution shall take effect only after its adoption and execution in
26 the manner as required by the City Charter and the approval of the
27 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 AND JOINT ESCROW INSTRUCTIONS BETWEEN THE SUCCESSOR
3 AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
AND DAVID FRIEDMAN WITH RESPECT TO THE REAL PROPERTY LOCATED AT
4 385 NORTH "E" STREET, SAN BERNARDINO, CALIFORNIA (APN 0134-241-64) AND
APPROVING CERTAIN RELATED ACTIONS
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City
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Council of the City of San Bernardino, in its capacity as the Successor Agency to the
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Redevelopment Agency of the City of San Bernardino at a Regular Joint meeting thereof, held on
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the 20`" day of March, 2017, by the following vote, to wit:
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t0 Council Members Ayes Nays Abstain Absent
11 MARQUEZ X
12 BARRIOS X
13 VALDIVIA _ X
14 SHORETT X
15 NICKEL X(M)
RICHARD X
16
MULVIHILL X(S)
17
18
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Cit Cle19 '/`Geork
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20 The foregoing Resolution is hereby approved this_62j�' day of March 2
21 )c "I
22
R. Carey Davi/s, Mayor
23 City of San Bernardino
24 Approved as to Form:
Gary D. Saenz, City Attorney
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26 -
By: --
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EXHIBIT "A"
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