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HomeMy WebLinkAboutR28-Economic Development Agency , ) ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ORIGINAL FROM: Maggie Pacheco Deputy Director SUBJECT: HEARING - RESOLUTION OF PUBLIC INTEREST AND NECESSITY FOR ACQUISITION OF REAL PROPERTY: 514 NORTH MT. VERNON AVENUE (AP# 0138- 115-06), SAN BERNARDINO, CALIFORNIA DATE: March 21, 2005 Svnousis of Previous Commission/Council/Committee Action!s): On August 21, 2003, the Community Development Commission ("Commission") authorized Staff to send out Owner Participation notices to the property owners who own property in the proximity to the northwest comer of 5th and Mt. Vernon (see Exhibit "c" - Study Area) in accordance with the adopted Agency Owner Participation Rules for the Mt. Vernon Corridor Redevelopment Project Area. No proposals were received. On November 17, 2003, the Community Development Commission approved the Redevelopment'Project Study Agreement for Property Acquisition and Redevelopment Assistance with Tri Pahn Development, Inc. to study the feasibility of developing an ARCO service station, AMlPM Convenience Store, and Car Wash ("Project). Subsequent to this date, the Community Development Commission authorized Staff to proceed with the acquisition of nine parcels located within the Study Area, including but not limited to the Parcel, which is the subject of this Staff Report. On January 10, 2005, the Community Development Commission and Mayor and Common Council adopted resolutions approving a Deposition and Development Agreement and Lease Agreement by and between the Redevelopment Agency of the City of San Bernardino and EI Paseo Petroleum, LLC. The resolutions also approved the Mitigated Negative Declaration for the Project thereby fulfilling CEQA requirements. On January 10, 2005, the Community Development Commission and Mayor and Common Council adopted resolutions approving a Redevelopment Cooperation and Financing Agreement by and between the Redevelopment Agency of the City of San Bernardino and the City of San Bernardino. (Community Develooment Commission) MOTION: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO DECLARING THE PUBLIC INTEREST AND NECESSITY OF ACQUISITION OF REAL PROPERTY BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FOR COMMUNITY REDEVELOPMENT PURPOSES OVER THE PROPERTY KNOWN AS 514 NORTH MT. VERNON AVENUE, SAN BERNARDINO, CALIFORNIA (AP# 0138-115-06) IN THE MT. VERNON CORRIDOR REDEVELOPMENT PROJECT AREA Contact Person(s): Gary Van OsdellMaggie Pacheco Mt. Vernon Corridor Redevelopment Project Area Phone: (909) 663-1044 I Project Area(s) Ward(s): Supporting Data Attached: 0 Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letters Approx. FUNDING REQUIREMENTS -z.'oc I'" ,,~, McV_'''''''''.,,'' / Budget uthOrit~:. . ~12005 EDA Budget SIGNATURE: (' {A 'mf r ~ Gary an Osdel, Executiv Director IJaggie Pacheco, Deputy Director Commission/Council Notes: P:\Agendas\Comm Dc\' ConunissionlCOC 2005\05-04-04 5]4 N. MI. Vc:mon Ave. SR.doc COMMISSION MEETING AGENDA Meeting Date: 04/04/2005 Agenda Item Number: R.J. g ECONOMIC DEVELOPMENT AGENCY STAFF REPORT HEARING - RESOLUTION OF PUBLIC INTEREST AND NECESSITY FOR ACQillSmON OF REAL PROPERTY: 514 NORTH MT. VERNON AVENUE (AP# 0138-115-06) SAN BERNARDINO, CALIFORNIA BACKGROUND: On January 10, 2005, the Community Development Commission approved the Redevelopment Disposition and Development Agreement (the "DDA") and the Lease Agreement (the "Lease") by and between the Agency and EI Paseo Petroleum, LLC (the "Developer"). Under the DDA, the Developer will construct an ARCO-brand retail gasoline station, an AM/PM mini-mart and a carwash (the "Project"). The Agreement further contemplated that the Agency would obtain title to the necessary parcels for the Project. The DDA Project Area includes a total often (10) parcels. Phase I is comprised of six (6) parcels and Phase II is comprised of four (4) parcels. In 1993, the Agency acquired title to one parcel (APN: 0138-114-18) which is located in Phase II of the DDA Project Area. Therefore, the Agency needed to acquire the remaining nine (9) parcels. The Agency has previously made offers to purchase to all eight (8) property owners encompassing the remaining nine (9) private individualized parcels. To date, the Agency has acquired by negotiations one (I) parcel in Phase I (APN: 0138-115-03) and one (I) parcel in Phase II (APN: 0138-114-09). The Agency is in negotiations to acquire three (3) parcels in Phase I (APN: 0138- 115-04, 05 and 07). These three (3) parcels represent two (2) different owners. Purchase and Sale Agreements have been prepared for these properties and should be executed and escrows opened within the next 30 days. The Agency has commenced eminent domain proceedings on three (3) parcels. A vacant lot in Phase I (APN: 0138-115-02) and two (2) tax defaulted parcels in Phase II (APN: 0138-114-10 and II). In the case ofa Phase I propertylmown as 514 North Mt. Vernon Avenue (APN: 0138-115-06), (the "Parcel"), the Agency has made several attempts to engage Dan Virgilio (the "Property Owner") concerning the Agency's desire to acquire the Parcel. The Parcel has a building and parking lot on it and is necessary for Phase I of the Project per the DDA. On January 16, 2004, February 9,2004 and again on February 11,2005, the Agency sent purchase offers to the Property Owner of the Parcel, and on the date of this writing, the Property Owner and the Agency have not been able to negotiate an agreeable purchase price. CURRENT ISSUES: Consequently, in conformance with the Code of Civil Procedure Section 1245.235, on March II, 2005, a notice of the April 4, 2005 hearing on adopting a Resolution of Public Interest and Necessity was sent by certified mail to the Property Owner whose name and address appears on the last equalized county assessment roll, in order to afford such Property Owner a reasonable opportunity to be heard by the Commission. The Hearing by the Commission and the adoption of P:\Agendas\CommDevConunission\CDC200S\OS..()4..()4SI4N.Mt. VemonAve. SR.doc COMMISSION MEETING AGENDA Meeting Date: 04/04/2005 Agenda Item Number: ;(~ f? Economic Development Agency Staff Report Mt. Vernon Property Acquisition-APN: 0138-115-06 Page 2 the Resolution of Public Interest and Necessity are legal preconditions to the exercise of the Commission's power of eminent domain. Moreover, Code of Civil Procedure Section 1245.230 requires that the Commission make the following findings and that each be included in the Resolution of Necessity: 1. The public interest and necessity requires the acquisition of the Parcel: The Agency has an agreement for a specific Project that includes this Parcel. During the past year, the Agency has acquired several parcels of land within the vicinity of the Parcel. The Agency finds it appropriate to continue the program of land assembly and to acquire this additional Parcel to provide sufficient contiguous land for the Project. 2. The Proiect is planned or located in a manner that will be most compatible with the I!reatest public I!ood and the least private iniurv: The Agency has increased its efforts to address conditions of blight in this sector of the Mt. Vernon Corridor Redevelopment Project Area (the "Project Area") to foster a commercially viable and economically sustainable plan of redevelopment and reuse of the properties within the Project Area and to prevent the spread of blight in the Project Area into other surrounding neighborhoods. The assembly and redevelopment of the Parcel is necessary as the Project Area displays a number of conditions of blight including the presence of old structures that show signs of dilapidation and deterioration. Small lot configurations within the Project Area, including the subject Parcel, prevent or substantially hinder the economically viable use of such real property in their present condition. Redevelopment of the Parcel will eliminate blight and provide needed commercial and retail redevelopment of the Project Area and assist with elimination of blight in other areas in proximity to the Project. 3. The subiect Parcel is necessary for the Proiect: The Agency previously acquired several parcels of real property in the vicinity of the Parcel and desires to acquire this additional Parcel to provide sufficient contiguous land for the Project. The Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury in light of the fact that the real property included in the Project Area displays a number of symptoms of blight. The Project shall also facilitate land assembly and reuse of a developed urban area that has stagnated in recent years under the burdens of small lot size, diverse ownership, abandoned properties and property tax liens. The Project will also confer substantial environmental benefits upon the Project Area and the community generally, in accordance with the General Plan of the City of San Bernardino. 4. The Government Code Ii 7267.2(a) offers have been made to the record property owner: On January 16, 2004, February 9, 2004 and on February 11, 2005, the Agency submitted formal acquisition offers to the Property Owner of the subject Parcel. The offers comply with Government Code g 7267.2. No affirmative responses were received in response to the statutory offers. P:\Agendas\Comm De\" Commission\CDC 2005\05-04-04 514 N. MI_ Vernon Ave. SR.oo<: COMMISSION MEETING AGENDA Meeting Date: 04/04/2005 Agenda Item Nnmber: ~ :J l Economic Development Agency Staff Report Mt. Vernon Property Acquisition-APN: 0138-115-06 Page 3 ENVIRONMENTAL IMPACT: On January 10, 2005, the Mayor and Common Council and Community Development Commission adopted a Mitigated Negative Declaration and authorized Staff to file a Notice of Determination (NOD) with the County Clerk for the Project pursuant to the approved DDA. On January 14, 2005, said NOD was filed with the County Clerk. FISCAL IMPACT: Based on the appraisal, the cost to acquire the subject Parcel is $155,000 plus court costs and legal expenses normally associated with condemnation proceedings for an approximate total of$209,250. RECOMMENDATION: That the Community Development Commission adopt the attached Resolution. P:\Agendas\Comm Dcv Commission\CDC 2005\oS..Q4-Q4 5]4 N. Mt. Vernon Ave. SR.OOc COMMISSION MEETING AGENDA Meeting Date: 04/04/2005 Agenda Item Number: R:2l I .. - II .1 <l:l <l:l & ::J c: ::J :::::: ~ c: ~ ~ ~ ~ r c: c: a a E --- ~ 0) .c: - .....: t:: ~ I <l:l ::r: I 8..... 'Ii' I I I -..- ,.-,-------. I I I.._______.J 6th Street Spruce Street 138-115 I I I I I I I I I I I I I I I. .. ..._. I .--------------:.1 Legend: 5th Street Mt. Vernon Corridor Project Area DDkproject Area . - Phase 1, Project Site Phase 2"Project Site . .. .... ." I I - - 0 1 2 3 4 5 6 7 8 9 JO 11 12 13 14 0 15 16 17 18 19 o 28 RESOLUTION NOt [)) IP>Y RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO DECLARING THE PUBLIC INTEREST AND NECESSITY OF ACQUISITION OF REAL PROPERTY BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FOR COMMUNITY REDEVELOPMENT PURPOSES OVER THE PROPERTY KNOWN AS 514 NORTH MT. VERNON AVENUE, SAN BERNARDINO, CALIFORNIA (AP# 0138-115-06) IN THE MT. VERNON CORRIDOR REDEVELOPMENT PROJECT AREA WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency"), a public entity created pursuant to the Community Redevelopment Law (Health and Safety Code Section 33000, et seq.), is authorized to acquire and redevelop blighted properties located in the City of San Bernardino (the "City"), in accordance with the Community Redevelopment Law; and 20 WHEREAS, the Community Development Commission of the City of San Bernardino (the "Commission"), as the governing board of the Agency, has authorized the Agency to assemble, and acquire real property for community redevelopment purposes in the Mt. Vernon Corridor (the "Mt. Vernon Corridor Redevelopment Project Area"); and WHEREAS, the Mt. Vernon Corridor Redevelopment Project Area displays substantial and pervasive symptoms of blight that cannot be remedied by private parties acting alone without community redevelopment assistance; and WHEREAS, the Agency has acquired other real property in the Mt. Vernon Corridor Redevelopment Project Area; and WHEREAS, on October 7, 2003, the Agency mailed a notice to the owner of record of the real property located within the Mt. Vernon Corridor Redevelopment Project Area as described below, (the "Property") and informed such persons that the Agency intended to appraise the Property for possible acquisition; and WHEREAS, the Agency retained the services of an appraiser to appraise the Property and the appraiser has reported an opinion of the fair market value of the unimproved property 21 22 23 24 25 26 27 1 P:\Agendas\Rcsolutions\ResoIUlions\200S\OS~ 514 N. Ml Vernon Ave. CDC Reso.doc 0 1 j 4 " 6 8 9 1C , 12 13 14 0 15 16 o 28 located at 514 North Mt. Vernon Avenue, San Bernardino, CA 92411 (APN: 0138-115-06) (the "Property"); and WHEREAS, based upon such real property appraisal report, the Commission authorized the Agency to send a purchase offer to the owner of record, to attempt to purchase the Property at the appraised value in lieu of condemnation, and on January 16,2004, on February 9, 2004, and again on February 11,2005, the Agency mailed purchase offers to the owner ofrecord of the Property based on the appraised value of the Property described in this Resolution; and WHEREAS, the Agency transmitted offers to purchase the Property situated within the Mt. Vernon Corridor Redevelopment Project Area, based on the appraised value, to the owner ofrecord of the Property; and :8 WHEREAS, the purchase offers were mailed to the owner of record of the Property on January 16, 2004, on February 9,2004 and again on February 11,2005, at the address on file with the office of the County Tax Assessor, and as none were returned to the Agency by the United States Postal Service as unclaimed, and after diligent inquiry and reasonable research, no other current address for the owner of the Property could be located; and WHEREAS, the owner of record of the Property have not accepted the purchase offers submitted by the Agency; and WHEREAS, the Agency has not been able to satisfactorily complete a negotiated purchase with the owner of record of the Property to assemble and acquire the Property for community redevelopment purposes; and 19 F' 21 22 WHEREAS, the Commission may serve as the "lead agency" as defined in CEQA for 23 the purpose of conducting an environmental review in connection with the acquisition of the 24 Property; and WHEREAS, on January 10, 2005, the Commission adopted Resolution No.CDC/2005-2 approving a Disposition and Development Agreement (the "Agreement") and the Lease Agreement (the "Lease") by and between the Agency and EI Paseo Petroleum, LLC (the 25 26 27 2 P:'Agendas'Resolutions'ResoJutions'200Y05-04.04 514 N. Mt. Vernon Ave. CDC Reso.doc C 1 2 3 4 9 10 11 12 13 14 0 15 16 17 18 19 20 21 22 23 24 25 26 27 0 28 5 "Developer"), and adopted the Mitigated Negative Declaration for the development of an ARCO-brand retail gasoline station, AMlPM mini-mart, and a carwash (the "Project"); and WHEREAS, the Agreement authorizes the Agency to continue to acquire or obtain control of parcels necessary for the Project either through purchase negotiations or alternatively, by eminent domain proceeding, if necessary; and WHEREAS, the owner of record of the Property have not accepted the purchase offers submitted by the Agency; and WHEREAS, on March 11, 2005, notice of intent to adopt this Resolution was mailed to the owner of record ofthe Property, Dan Virgilio, at the address of record on file at the office of the County Tax Collector and at the last known address for the owner of the Property, and notice was also published in the Sun newspaper on March 11,2005; and WHEREAS, on April 4, 2005, after not less than fifteen (15) days written notice to the owner of the Property, the Commission conducted a hearing for the purpose of affording the owner of the Property a reasonable opportunity to appear and be heard on the matters referred to in Code of Civil Procedure Section 1240.030 and whether the Agency has met all other 6 7 8 prerequisites for the exercise of eminent domain to acquire the Property for community redevelopment purposes; and WHEREAS, the Commission has determined as a result of such hearing on April 4, 2005, that the public health, safety and welfare require the Agency to acquire the subject Property for community redevelopment purposes and to facilitate the Project. NOW THEREFORE, BE IT RESOLVED THAT THE COMMISSION FINDS, DETERMINES AND DECLARES AS FOLLOWS: Section 1. The information set forth in the above recitals of this Resolution is true and correct. Section 2. The real property to be acquired under the authority of this Resolution (the "Property") is located in the Mt. Vernon Corridor Redevelopment Project Area in the City of San Bernardino, California, and is also known as 514 North Mt. Vernon Avenue, San 3 P:\Agendas\RcsoIUlions\Resolutions\200S\05-()4..()4 514 N. Mt Vcmon Ave. CDC Reso.doc c 7 8 9 10 11 12 13 14 0 15 16 17 18 19 20 21 22 C 28 1 Bernardino, California 92411 (San Bernardino County Assessor Parcel Number 0138-115-06). The Property is more particularly described in the legal description attached as Exhibit "A." The interest in the Property to be acquired consists of all of the fee simple absolute title interest in the Property, and all of the right, title and interest of each person and owner of the Property including the acquisition of each and every possessory interest and all easements and appurtenances to the Property. 2 3 4 5 6 Section 3. On March II, 2005, the Agency transmitted a notice of hearing to each known owner of record (Dan Virgilio) at 514 North Mt. Vernon Avenue, San Bernardino, CA 92411, and on March 11,2005, notice was published in the Sun newspaper, and copies of such notices of hearing are on file with the Agency. Section 4. The Commission acknowledges receipt of the written reports and information relating to the Mt. Vernon Corridor Redevelopment Project Area (the "Project Area"), including the report and agreement between the Agency and Developer concerning the Project, and the appraisal of the Property, staff reports, and oral reports and information submitted to the Commission during the course of the hearing conducted on April 4, 2005. Section 5. The Commission on behalf of the Agency finds and determines that the 23 hearing conducted by the Commission on this matter on April 4, 2005, was full and fair, and that each interested person has been afforded a full and fair opportunity to present evidence and testimony relating to assembly of land for the Project, and the matters described in Code of Civil Procedure Section 1240.030, and the acquisition of the Property, and aIr interests in it, by the Commission for community redevelopment purposes by the exercise of Eminent Domain and other relevant matters. 24 Section 6. The Commission declares its intent to acquire the Property for the Project 25 and community redevelopment purposes in the name of the Agency in accordance with the laws 26 of the State of California including the Community Redevelopment Law and Health and Safety 27 Code Sections 33391 and 33492.40. The Commission further fmds and determines that all of 4 P:\Agendas\Rcsoluaions\RcsoJutions\200S\0S.()4..()4 514 N. Ml Vernon Ave. COC ReIo.doc c 10 11 12 13 14 C 15 16 17 18 19 20 21 22 23 24 25 26 27 C 28 1 the prerequisites to the exercise of eminent domain by the Agency with respect to such acquisition of the Property for the Project have been met. 2 3 Section 7. The Commission has found and determined that the acquisition of the 4 Property for the Project is an activity which is covered under a Mitigated Negative Declaration adopted by the Mayor and Common Council and Community Development Commission on January 10, 2005 and a Notice of Determination was filed with the Clerk of the County on January 14,2005. 5 6 7 8 In accordance with the provisions of Code of Civil Procedure Section Section 8. 9 1245.230, the Commission finds, determines, and declares as follows: (a) The public interest, convenience and necessity require the acquisition of the Property for the Project, as necessary to alleviate conditions of blight in the Mt. Vernon Corridor Redevelopment Project Area and to provide for the orderly redevelopment of the Property and other real property included in the Mt. Vernon Corridor Redevelopment Project Area. The assembly and redevelopment of the Property is necessary as the Mt. Vernon Corridor Redevelopment Project Area displays a number of conditions of blight, including the presence of old structures that show signs of dilapidation and deterioration and small or substandard lot sizes within the Mt. Vernon Corridor Redevelopment Project Area, including the subject Property, and a diverse pattern of land ownership which prevent or substantially hinder the economically viable use of such real property in its present condition. Acquisition and assembly of the Property for community redevelopment purposes and for the Project, together with other lands already owned by the Agency in the Mt. Vernon Corridor Redevelopment Project Area, will foster the elimination of blight and assist with the redevelopment of the Mt. Vernon Corridor Redevelopment Project Area, and assist with elimination of blight in other lands in proximity to the Mt. Vernon Corridor Redevelopment Project Area. (b) The Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury in light of the fact that the real property included in the Mt. Vernon Corridor Redevelopment Project Area displays a number of 5 P:\Agendas\Resolutions\R.esolutions\200S\OS-04-04 514 N. Mt Vernon Aw. CDC Reso.doc c 5 6 7 8 9 10 11 12 13 14 0 15 16 17 C 28 1 symptoms of blight. The Project shall also facilitate the completion of a land assembly program previously initiated by the Agency and foster the reuse of a developed urban area that has stagnated in recent years under the burdens of small lot size, diverse ownership, property tax liens, and inadequate public improvements. (C) The Property described in this Resolution is necessary for Project, as its acquisition and reuse for the Project is part of a neighborhood plan to eliminate blight and provide for the redevelopment and improvement of the other lands owned by the Agency within the Mt. Vernon Corridor Redevelopment Project Area. (d) The purchase offer required by Government Code Section 7267.2 has been mailed to the owner of record of the Property by the Agency, and the Agency has not been successful in negotiating a purchase of the Property with such owner based upon such offers of the Agency on terms that are acceptable to the owner of the Property. The Agency has asked the Commission to approve its acquisition of the Property for assembly for the Project. 2 3 4 Section 9. (a) The law firm of Lewis Brisbois Bisgaard & Smith LLP as special 18 legal counsel to the Agency, is authorized and directed to prepare, institute and prosecute in the name of the Agency such proceedings in the court having jurisdiction, as may be necessary for the acquisition ofthe Property. 19 (b) The sum payable by the Agency as probable compensation for the acquisition of 20 the Property by eminent domain, as determined by the appraisal, shall accompany the filing of the complaint and shall be deposited as follows: (i) with the State of California in the manner provided by law, or upon the recommendation of Agency special legal counsel to the County Treasury; or (ii) at the election of the person(s) who may claim an interest in the Property to be acquired by such condemnation proceedings, in such other manner as such interested person(s) may request in writing, subject to the approval of the Executive Director and special legal counsel to the Agency. 21 22 23 24 25 26 27 Section 10. The Secretary of the Commission is authorized and directed to certify the adoption of this resolution. This Resolution shall take affect upon adoption. 6 P:\Agendas\Resolutions\Rcsolutions\200S\OS.()4.()4 514 N. Mt. Vernon Ave. CDC Reso.doc c 14 o 15 16 o 28 1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO DECLARING THE PUBLIC INTEREST AND NECESSITY OF ACQUISITION OF REAL PROPERTY BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FOR CO~TY REDEVELOPMENT PURPOSES OVER THE PROPERTY KNOWN AS 514 NORTH MT. VERNON A VENUE, SAN BERNARDINO, CALIFORNIA (AP# 0138-115-06) IN THE MT. VERNON CORRIDOR REDEVELOPMENT PROJECT AREA 2 3 4 5 6 PASSED, APPROVED AND ADOPTED this _ day of ,2005. 7 8 I CERTIFY that the foregoing Resolution was duly adopted by the Community Development Commission of the City of San Bernardino at its regular meeting held on , 2005 by the following vote, to wit: 9 10 11 Commission Members: Navs Abstain Absent Aves 12 ESTRADA LONGVILLE MCGINNIS DERRY KELLEY JOHNSON MC CAMMACK 13 17 18 19 20 Secretary 21 22 The foregoing resolution is hereby approved this day of ,2005. 23 24 Judith Valles, Chairperson Community Development Commission of the City of San Bernardino 25 26 Approved as to form and Legal Content: 27 .Q~~II~ By: 7 P:\Agt:ndas\Resolurions\Resoll.ltions\2005\OS~ 5 14 N. Ml Vernon Ave. CDC Reso.doc " o o c EXHIBIT" A" Legal Description APN: 0138-115-06 LOT 2, BLOCK 1 OF TOMPKIN'S SUBDIVISION, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 5 OF MAPS, PAGE 98 IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.