HomeMy WebLinkAboutItem No. 26 - Joint Escrow Instructions for the Partial Acquisition for Assessor’s Parcel 0271-051-11 and 0271-051-12 for the Widening of West 40TH Street from Johnson Street to Electric Avenue
Consent Calendar
City of San Bernardino
Request for Council Action
Date: June 17, 2020
To: Honorable Mayor and City Council Members
From: Teri Ledoux, City Manager
By:Kris Jensen, Director of Public Works
Subject: Purchase and Sale Agreement for 337 & 339 West 40TH Street
Recommendation
Adopt Resolution No. 2020-117 of the Mayor and City Council of the City of San
Bernardino, California, authorizing the City Manager to execute a Partial Purchase and
Sale Agreement with Bryan Henley and Sharland L. Henley for the property located at
337 & 339 West 40th Street.
Background
This project consists of the widening of West 40th Street from Johnson Street to Electric
Avenue to provide two through lanes in each direction and a two-way left-turn lane
(Attachment 2 - Location Map). The project includes right-of-way (ROW) acquisition,
undergrounding overhead utility lines, pavement widening, pavement rehabilitation,
signing and striping.
On July 19, 2017, the Mayor and City Council adopted Resolution No. 2017-131
approving an agreement with Engineering Resources of Southern California, Inc. to
provide environmental and civil engineering design for the widening of West 40th Street
from Johnson Street to Electric Avenue.
Design and right-of-way acquisition for the widening of West 40th Street from Johnson
Street to Electric Avenue was approved as part of the FY 2018/19 Capital Improvement
Program. The environmental component of the project was completed on April 24,
2018, and the Plans Specifications & Estimate (PS&E) are 95% completed. As part of
the PS&E, Engineering Resources of Southern California, Inc., was required to identify
necessary ROW, full and partial takes for this project. A total of 15 parcels were
identified to complete this project.
On March 21, 2018, the Mayor and City Council adopted Resolution No. 2018-75
adopting a Mitigated Negative Declaration (MND), approving a Mitigation Monitoring
and Reporting Program (MMRP).
On September 5, 2018, the Mayor and City Council adopted Resolution No. 2018-248
approving an agreement with Paragon Partners, Ltd to acquire the right-of-way for this
project.
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Discussion
The subject property, located at 337 & 339 West 40th Street, San Bernardino, California
(Property), consists of approximately 24,832 square feet of land and is improved with
two single-family residences and a single tenant retail tenant, 664, 520, and 875 square
feet in size, respectively. A small portion of the property is required for the construction
of the City's capital improvement project West 40th Street Widening from Johnson
Street to Electric Avenue (Project).
The Project requires acquisition of a permanent easement for roadway purposes,
approximately 2,919 square feet in size, from the subject property. Valbridge Property
Advisors completed an appraisal report dated January 31, 2019, which established the
Fair Market Value of the permanent easement at $200,250, which includes
compensation for site improvements and severance damages. On June 17, 2019, The
City of San Bernardino (City) approved the amount of just compensation and authorized
the initiation of formal negotiations to acquire the permanent easement. On June 27,
2019, a written offer to purchase in the amount of $200,250 was presented to the
property owner, Bryan Henley (Owner).
improvements, including a portion of the asphalt-paved parking lot (five parking spaces),
ion of concrete and asphalt-paved
driveways. Additionally, acquisition of the permanent roadway easement will require the
demolition of the 520 square foot single-family house located on the property in order to
allow for replacement of the five parking spaces located within the permanent easement
area. Demolition of the single-family home will result in the loss in value to the
remainder property.
The Owner reviewed the offer and appraisal and contested that the offer did not
adequately compensate for the loss of value associated with the demolition of the
single-family house located on the property. Moreover, the Owner contended that real
value. Lastly, the owner provided a lease agreement for the 520 square foot house on
the property, which illustrated an increase in the monthly rent from $800 to $1,000 since
the appraisal was completed. As expressed by the owner, the house was re-leased to a
new tenant upon expi
Based upon the change in market conditions, the owner presented staff with a counter
offer in the amount of $250,000. Staff consulted with Valbridge Property Advisors to
evaluate the effect on the just compensation amount associated with the increase in
rental income for the 520 square foot house. It was determined that the increase in the
rental income equated to an equivalent increase in valuation of $40,000; suggesting a
counter offer in the amount of $240,250. In response, staff prepared the attached
Purchase and Sale Agreement (Agreement) and presented it to the owner on December
30, 2019; which was reviewed, accepted, and signed by the owner. Additionally, the
owner is waiving his rights to reimbursement of up to $5,000 for an independent
appraisal.
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the permanent easement and believes the counter offer to be fair and reasonable, and
Staff recommends that the City of San Bernardino approve an administrative settlement
in the amount of $240,250 and proceed with consummating the Agreement attached
forward it to First American Title and Escrow Company, which will commence the
escrow period for acquisition of the property rights required for the Project.
2020-2025 Key Strategic Targets and Goals
Purchase of this property aligns with Key Target No. 1e: Create an asset management
plan as it will allow the City to acquire right-of-way needed to move forward with
-
year Capital Improvement Plan.
Fiscal Impact
This project is being reimbursed by the San Bernardino County Transportation Authority
(SBCTA) as part of the Valley Major Street Program. The West 40th Street Widening
Project is one of the four projects in the City of San Bernardino approved for
reimbursement under the Val
Needs Assessment (CPNA). The reimbursement rate is 67.6%. Regional Circulation
DIF funding in the amount of $3,122,206.09 was previously approved by the Mayor and
City Council for the West 40th Street Widening From Johnson Street to Electric Avenue
(account 264-160-7160-5504) and $2,622,340.09 remains available for this project.
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Purchase of the property located at 337 & 339 W 40 Street in the amount of $240,250
will be paid from these available budgets.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino,
California, provide direction to staff regarding the right-of-way acquisition for West 40th
-117 authorizing the City
Manager to execute a Partial Purchase and Sale Agreement with Bryan Henley and
Sharland L. Henley for the property located at 337 & 339 W. 40th Street.
Attachments
Attachment 1 Resolution 2020-- Sale Agreement
Attachment 2 Location Map
Ward: 4
Synopsis of Previous Council Actions:
July 19, 2017 Mayor and City Council adopted Resolution No. 2017-131
approving an agreement with Engineering Resources of Southern
California, Inc. to provide environmental and civil engineering
design.
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March 21, 2018 Mayor and City Council adopted Resolution No. 2018-75 approving
a Mitigated Negative Declaration (MND), adopting a Mitigation
Monitoring and Reporting Program (MMRP), and authorizing the
Director of Community Development or designee to file a Notice of
Determination (NOD) with the Clerk of the Board of Supervisors of
San Bernardino County for the widening of West 40th Street from
Johnson Street to Electric Avenue.
September 5, 2018 Mayor and City Council adopted Resolution No. 2018-248
approving an agreement with Paragon Partners, Ltd to provide
right-of-way acquisition services.
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RESOLUTION NO. 2020-117
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF
THE CITY OF SAN BERNARDINO, CALIFORNIA,
AUTHORIZING THE CITY MANAGER TO EXECUTE A
PARTIAL PURCHASE AND SALE AGREEMENT WITH
BRYAN HENLEY AND SHARLAND L. HENLEY FOR THE
PROPERTY LOCATED AT 337 & 339 WEST 40TH STREET
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WHEREAS, pursuant to the street widening project of 40 street between Johnson street
and Electric Avenue, the City of San Bernardino requires the a small portion of the property
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located at 337 & 339 W 40 Street; and
WHEREAS, the parcels to be acquired are -051-11 and
0271-051-
and
WHEREAS, on July 19, 2017, the Mayor and City Council adopted Resolution No.
2017-131 approving an agreement with Engineering Resources of Southern California, Inc. to
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provide environmental and civil engineering design for the widening of 40 Street from Johnson
Street to Electric Avenue (SS04-014); and
WHEREAS, on September 5, 2018, the Mayor and City Council adopted Resolution No.
2018-248 approving an agreement with Paragon Partners, Ltd to provide Right-of-Way
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Acquisition Services for the widening of 40 Street from Johnson Street and Electric Avenue
(SS04-014); and
WHEREAS, the City and property owner have reached an agreement on the terms and
purchase price for parcels to be.
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are incorporated herein by this
reference.
SECTION 2. The City Manager or her designee is hereby authorized on behalf of the
City of San Bernardino to execute the Partial Fee Acquisition Purchase and Sale Agreement and
Joint Escrow Instructions to conclude the purchase of said parcels for the amount of $240,250
attached hereto as Exhibit A. The City Manager is authorized to execute any additional
documents necessary to effectuate the transaction.
SECTION 3. The City Council finds that a Mitigated Negative Declaration (MND) was
adopted for this project satisfying the requirements of the California Environmental Quality Act
(CEQA), and the actions contemplated by this Resolution are within scope of the previously
adopted MND.
Resolution No. 2020-117
SECTION 4. 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 5. Effective Date. This Resolution shall become effective immediately.
APPROVED and ADOPTED by the City Council and signed by the Mayor and attested
by the Acting City Clerk this ___ day of __________, 2020.
__________________________________
John Valdivia, Mayor
City of San Bernardino
Attest:
__________________________________
Genoveva Rocha, CMC, Acting City Clerk
Approved as to form:
__________________________________
Sonia Carvalho, City Attorney
Resolution No. 2020-117
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss
CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of
Resolution No. _____, adopted at a regular meeting held at the ___ day of _______, 2020 by the
following vote:
Council Members: AYES NAYS ABSTAIN ABSENT
SANCHEZ _____ _____ _______ _______
IBARRA _____ _____ _______ _______
FIGUEROA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
WITNESS my hand and official seal of the City of San Bernardino this ___ day of
____________ 2020.
______________________________
Genoveva Rocha, CMC, Acting City Clerk
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