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HomeMy WebLinkAbout2019-337Resolution No. 2019-337 RESOLUTION NO. 2019-337 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO APPROVING THE PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS BETWEEN THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND JORGE LUIS NUNEZ WITH RESPECT TO THE REAL PROPERTY LOCATED AT W. 17" STREET, SAN BERNARDINO, CALIFORNIA (APN 0144-12346), AND APPROVING CERTAIN RELATED ACTIONS WHEREAS, pursuant to Health and Safety Code (the "HSC") § 34172 (a) (1), the Redevelopment Agency of the City of San Bernardino was dissolved on February 1, 2012; and WHEREAS, consistent with the provisions of the HSC, on January 9, 2012 the Mayor and City Council of the City of San Bernardino elected to serve in the capacity of the Successor Agency to the Redevelopment Agency of the City of San Bernardino (the "Successor Agency"); and WHEREAS, the Oversight Board for the Successor Agency (the "Oversight Board") has been established pursuant to HSC § 34179 to assist in the wind -down of the dissolved redevelopment agency; and WHEREAS, on September 15, 2015, the Successor Agency submitted its Oversight Board -approved Long -Range Property Management Plan (the "LRPMP") to the California Department of Finance (the "DOF"); and WHEREAS, on December 31, 2015, the DOF approved the Successor Agency's LRPMP and notified the Successor Agency that pursuant to HSC § 34191.3, the approved LRPMP shall govern, and supersede all other provisions relating to the disposition and use of all the real property assets of the former redevelopment agency; and WHEREAS, the approved LRPMP, which addresses the disposition and use of the real property assets held by the Successor Agency, includes 230 parcels of land grouped into forty- six (46) separate sites, eighteen (18) of which were designated as government use sites, seven (7) of which are designated as future development sites and twenty-one (21) of which were designated to be sold (the "Successor Agency Properties"); and WHEREAS, the Successor Agency is the owner of that certain real property located on W. 17" Street, San Bernardino, California (APN 0144-123-46) (the "Property"); and WHEREAS, within the LRPMP, the Property is: (i) identified as Site No. 31; (ii) described as an approximately 0.11 -acre vacant lot zoned Residential; (iii) designated for sale; and (iv) more fully described in Exhibit "A" attached hereto, which is an excerpt from the LRPMP; and Resolution No. 2019-337 WHEREAS, on March 6, 2017, the Successor Agency Board approved the original Property Disposition Strategy, which among other things, authorized a competitive process that would result in listing for sale of 18 real property sites with a real estate broker (two of which are owned by the City of San Bernardino); and WHEREAS, on August 16, 2017, the Successor Agency Board approved the "Amended Property Disposition Strategy," which: (i) reduced the number of real property sites to be listed with a real estate broker from 18 to 16 (one of which is owned by the City of San Bernardino); (ii) provided for an alternate method of real property disposition for the two real property sites removed from the group to be listed with a real estate broker, (iii) where applicable, provided a current status update on completed and pending real property transfers; and (iv) established an Escrow and Title Administrative Management Fee to allow the City to recover a portion of the cost of its services with respect to the management of the sale of real property assets; and WHEREAS, consistent with the amended Property Disposition Strategy, on October 18, 2017, the Successor Agency approved an agreement with Keller Williams (the "KW Agreement") to list and sell 15 real property sites of the Successor Agency (the City entered into a separate agreement with Keller Williams for its single real property site); and WHEREAS, the Property is included within the KW Agreement; and WHEREAS, as a part of the KW Agreement, KW is required to prepare of a Broker's Opinion of Value (the `BOV") for each Successor Agency property that is to be sold; and WHEREAS, based on past practice, the DOF has acknowledged that BOVs are an acceptable method and basis for confirming that the value of real property being sold is fair and reasonable; and WHEREAS, in response to the listing, KW received, thoroughly reviewed and vetted four (4) offers to purchase the Property; and WHEREAS, on October 4, 2019, Jorge Luis Nunez offered to purchase the Property for $15,000 (the "Purchase Price") (a copy of the offer is attached to this Resolution as Exhibit "B"); and WHEREAS, KW has confirmed that Mr. Nunez is a credible buyer capable of purchasing the Property and has recommended that the Successor Agency consider Mr. Nunez's purchase offer, and WHEREAS, on October 1, 2019, KW submitted its BOV, indicating its opinion that the market value of the Property is $10,600 (the `BOV Market Value"); and WHEREAS, in consideration that the Purchase Price exceeds the BOV Market Value by $4,400, or 42%, it may be concluded that the purchase price offered by Mr. Nunez for the Property is fair and reasonable, as more fully described within the BOV, a copy of which is attached to this Resolution as Exhibit "C"; and 2 Resolution No. 2019-337 WHEREAS, this Resolution will approve the Purchase and Sale Agreement and Joint Escrow Instructions (the "Purchase and Sale Agreement") between the Successor Agency and Mr. Nunez with respect to the Property, a copy of which is attached to this Resolution as Exhibit "D," and authorize certain related actions; and WHEREAS, consistent with the provisions of the HSC and the LRPMP, the effectiveness of the Purchase and Sale Agreement is subject to the approval of the Oversight Board and review by DOF; and WHEREAS, this Resolution has been reviewed with respect to applicability of the California Environmental Quality Act (the "CEQA"), the State CEQA Guidelines (California Code of Regulations, Title 14, § 15000 et seq., hereafter the "CEQA Guidelines"), and the City's environmental guidelines; and WHEREAS, this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA; and WHEREAS, all of the prerequisites with respect to the approval of this Resolution have been met. NOW, THEREFORE, BE IT RESOLVED BY THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The foregoing recitals are true and correct and are a substantive part of this Resolution. SECTION 2. The Purchase Price for the Property is determined to be fair and reasonable. SECTION 3. The Purchase and Sale Agreement between the Successor Agency and Jorge Luis Nunez, for the purchase and sale of the Property, attached hereto as Exhibit "D," is approved. SECTION 4. On behalf of the Successor Agency, the City Manager, in the capacity as Executive Director of the Successor Agency, or designee, is authorized and directed to execute the Purchase. and Sale Agreement and the grand deed, the form of which is attached to the Purchase and Sale Agreement, and to take such other actions and execute such other documents as are necessary to effectuate and close the purchase and sale of the Property and as may otherwise be required to fulfill the intent of this Resolution. SECTION 5. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that 3 Resolution No. 2019-337 the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 6. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 7. Effective Date. This resolution shall take effect only after its adoption and execution in the manner as required by the City Charter and the approval of the Purchase and Sale Agreement by the Oversight Board and DOF. APPROVED and ADOPTED by the City capacity as the Successor Agency to the Redevelo and attested by the City Clerk this 4tb day of Dece� Attest: Georgeann Ha a,_Tv1MC, ity Clerk Approved as to form: �zre4e�.."— Gary D. Saenz, City Attorney 4 Council and signed by the Mayor in the gent Ag of the City of San Bernardino r 19 � t John Valdivia, Mayor City of San Bernardino Resolution No. 2019-337 CERTIFICATION STATE OF CALIFORNIA) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Georgeann Hanna, MMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2019-337, adopted by the Mayor and City Council of the City of San Bernardino, in its capacity as the Successor Agency to the Redevelopment Agency of the City of San Bernardino at a regular meeting held on the 4'h day of December 2019 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ x MARRA FIGUEROA /Y SHORETT NICKEL /I RICHARD MULVIHILL X WITNESS my hand and official seal of the City of San Bernardino this 4t' day of December 2019. Georgeann H a, MMC, 4y Clerk 5