HomeMy WebLinkAboutR29-Economic Development Agency
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ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
ORIGINAL
FROM: Maggie Pacheco
Deputy Director
SUBmCT: HEARING - RESOLUTION OF PUBLIC
INTEREST AND NECESSITY FOR
ACQUISmON OF REAL PROPERTY: 1307
SPRUCE STREET (AP# 0138-115-92), SAN
BERNARDINO, CALIFORNIA
DATE: February 9,2005
SvnoDsis of Previous Commission/Council/Committee Aetion{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 corner 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 receiyed.
On November 17,2003, the Community Development Commission approved the Redevelopment Project Study Agreement for
Property Acquisition and Redevelopment Assistance with Tri Palm 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 El 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 DeveloDment 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 1307 SPRUCE
STREET, SAN BERNARDINO, CALIFORNIA (AP# 0138-115-02) IN THE MT. VERNON CORRIDOR
REDEVELOPMENT PROmCT AREA
Contact Person(s):
Gary V an Osdel/Mag~e Pacheco
Mt. Vernon Corridor Re evelopment
Project Area
Phone:
(909) 663-1044
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Project Area(s)
Ward(s):
Supporting Data Attached: It! Staff Report It! Resolution(s) 0 Agreement(s)/Contract(s) It! Map(s) 0 Letters
Approx.
FUNDING REQUIREMENTS 41,000 Source: Mt. Vernon Bond Proceeds
et AUthOrity~: ~ ~05 EDA Budget
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1, Executive Dire r M ggie Pacheco, Deputy Director
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SIGNATURE:
Commission/Counell Notes:
P:\AgendaslComm Dev CommiB.ionlCllC ZOOS\OSo02-ll 1307 Spruce St. SR.doc
COMMISSION MEETING AGENDA
Meeting Date: 02/22/2005
Agenda Item Number: n "-
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ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
HEARING - RESOLUTION OF PUBLIC INTEREST AND NECESSITY FOR
ACQUISITION OF REAL PROPERTY:
1307 SPRUCE STREET (AP# 0138-115-02), 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 Agency has previously made offers to purchase to all eight (8) property owners encompassing
nine (9) private individualized parcels. To date, the Agency has acquired by negotiations one (1)
parcel in Phase I (APN: 0138-115-03) and two (2) parcels in Phase II (APN: 0138-114-09 and 18).
The Agency has commenced eminent domain proceedings on two (2) tax defaulted parcels (APN:
0138-114-10 and 11). To the extent possible, Agency Staff and Agency Special Counsel have
continued to work with or negotiate with the remaining property owners or their legal counsel in an
effort to acquire the properties.
In the case of the property known as 1307 West Spruce Street (APN: 0138-115-02), (the "Parcel"),
the Agency has made several attempts to engage Manuel Arriola and Hilaria Arriola (the "Property
Owners") concerning the Agency's desire to acquire the Parcel. The Parcel is a vacant lot on
Spruce Street west ofMt. Vernon Avenue and is necessary for Phase I of the Project per the DDA.
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On January 16, 2004, February 9, 2004 and again on January 14,2005, the Agency sent purchase
offers to the Property Owners of the Parcel, and on the date of this writing, the Property Owners
have not responded to the Agency's offers or communicated with the Agency.
CURRENT ISSUES:
Consequently, in conformance with the Code of Civil Procedure Section 1245.235, on February 1,
2005, a notice of the February 22, 2005 hearing on adopting a Resolution of Public Interest and
Necessity was sent by certified mail to the Property Owners whose names and address appears on
the last equalized county assessment roll, in order to afford such Property Owners a reasonable
opportunity to be heard by the Commission. The Hearing by the Commission and the adoption of
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:
P,1Apodu1Conm Dov CommiuionICDC 2OOSIOS-Q2-22 1307 Spruce St, SR,doc
COMMISSION MEETING AGENDA
Meetinl Date: 0211112005
Agenda Item Number: --W.-
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Economic Development Agency Staff Report
Mt. Vernon Property Acquisition-APN: 0138-115-02
Page 2
1. The public interest and necessity reauires the acauisition 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
fmds 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 6 7267.2(a) offers have been made to the record property
owners: On January 16, 2004, February 9, 2004 and on January 14, 2005, the Agency
submitted formal acquisition offers to the Property Owners of the subject Parcel. The offers
comply with Government Code ~ 7267.2. No affirmative responses were received in
response to the statutory offers.
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.
P;lA&endulConun Dcv Collllllisoio.ICDC 2005105-02.22 1307 Spruce St, SR.dac
COMMISSION MEETING AGENDA
Meeting Date: 02/22/2005
Agenda Item Number: ~
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Economic Development Agency Staff Report
Mt. Vernon Property Acquisition-APN: 0138-115-02
Page 3
FISCAL IMPACT:
Based on the appraisal, the cost to acquire the subject Parcel is $35,000 plus court costs and legal
expenses normally associated with condemnation proceedings for an approximate total of $41,000.
RECOMMENDATION:
That the Community Development Commission adopt the attached Resolution.
'7vl2~
Maggie Pacheco, Deputy Director
P'\AplldII\CoIml1lev CommiaioaICDC 2005\OS-02.22 1307 Spruce St. Sltdoc
COMMISSION MEETING AGENDA
MeetinC Date: 01/1112005
Aaendaltem Number: ~
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RESOLUTION NO.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO DECLARING THE PUBLIC
INTEREST AND NECESSITY OF ACQUlSmON OF REAL PROPERTY
BY THE REDEVELOPMENT AGENCY. OF THE CITY OF SAN
BERNARDINO FOR COMMUNITY REDEVELOPMENT PURPOSES
OVER THE PROPERTY KNOWN AS 1307 SPRUCE STREET, SAN
BERNARDINO, CALIFORNIA (AP# 0138-115-02) IN THE MT. VERNON
COlUUDOR REDEVELOPMENT PROJECT AREA
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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
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Law; and
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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 Vemon
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Corridor (the ..Mt. Vernon Corridor Redevelopment Project Area"); and
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WHEREAS, the Mt. Vernon Corridor Redevelopment Project Area displays SUhdAfttisal
and pervasive symptoms of blight that cannot be remedied by private parties acting alone
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without community redevelopment assistance; and
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WHEREAS, the Agency has acquired other real property in the Mt. Vernon Corridor
22 Redevelopment Project Area; and
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WHEREAS, on October 7, 2003, the Agency mailed a notice to the owners of record of
24 the- real property located within the Mt. Vernon Corridor Redevelopment Project Area as
25 described below, (the ..Property") and informed such persons that the Agency intended to
26 appraise the Property for possible acquisition; and
27 WHEREAS, the Agency retained the services of an appraiser to appraise the Property
o and the appraiser has reported an opinion of the fair market value of the unimprovcclpl~di
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located at 1307 Spruce Street, San Bernardino, CA 92411 (APN: 0138-115-02) (the
"Property''); and
WHEREAS, based upon such real proPe.rty appraisal report, the Commission authorized
the Agency to send a purchase offer to the owners 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 January 14,2005, the Agency mailed purchase offers to the owners of record 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 owners
of record of the Property; and
WHEREAS, the purchase offers were mailed to the owners of record of the Property on
January 16, 2004, on February 9, 2004 and again on January 14, 2005, at the address on file
with the office oCthe County Tax Assessor, and as only the January .14, 2005 purchase offer
was returned tQ the Agency by the United States Postal Service as unclaimed, and after diligent
inquiry and reasonable research, no other current address for the owners of the Property could
be located; and
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WHEREAS, the owners of record of the Property have not accepted the purchase otJcrs
submitted by the Agency; and
WHEREAS, the Agency has not been able to satisfactorily complete a negotiated
purchase with the owners of record of the Property to assemble and acquire the Property for
community redevelopment purposes; and
WHEREAS, the CommisSion may serve as the "lead agency" as defined in CEQA for
the purpose of conducting an environmental review in connection with the acquisition of the
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 "Leasej by and between the Agency and EI Pasco Petroleum, LLC (the
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"Developer"), and adopted the Mitigated Negative Declaration for the development of an
ARCO-brand retail gasoline station, AM/PM mini-mart, and a carwash (the "Projectj; 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,
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by eminent domain proceeding, if necessary; and
WHEREAS, the owners of record of the Property have not accepted the purchase offers
submitted by the Agency; and .
WHEREAS, on February 1,2005, notice of intent to adopt this Resolution was mailed to
the owners of record of the Property, Manuel Arriola and Hilaria Arriola, at the address of
record on file at the office of the County Tax Collector and at the last known address for the
owners of the Property, and notice was also published in the Sun newspaper on February 4,
2005; and
WHEREAS, on February 22,2005, after not less than fifteen (15) days written notice to
the owners of ,the Property, the Commission conducted a hearing for the purpose of affording
the owners of the Property a. n:asonable. opportunity to appeal: aDd. be. hcaDl on the matters
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referred to in Code of Civil Procedure Section 1240.030 and whether the Agency has met all
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other prerequisites for the exercise of eminent domain to acquire the Property for community
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19 redevelopment purposes; and
WHEREAS, the Commission has determined as a result of such hearing on February 22,
21 2005, that the public health, safety and welfare require the Agency to acquire the subject
22 Property for community redevelopment purposes and to facilitate the Project.
NOW THEREFORE, BE IT RESOLVED THAT THE COMMISSION FINDS,
24 DETERMINES AND DECLARES AS FOLLOWS:
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Section 1.
The information set forth in the above recitals of this Resolution is true
26 and correct.
27 Section 2. The real property to be acquired under the authority of this Resolution
080 (tIie-"E"r.opel1}lj is. located iirthe Mt. Vernon Corridor Redevelopment Project Area in the City
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of San Bernardino, California, and is also known as 1307 Spruce Street, San Bernardino,
California 92411 (San Bernardino County Assessor Parcel Number 0138-115-02). The
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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,
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Section 3.
On February 1,2005, the Agency transmitted a notice of hearing to each
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known owners of record (Manuel Arriola and Hilaria Arriola) at 1674 North "K" Street, San
Bernardino, CA 92411, and on February 4,2005, notice was published in the Sun newspaper,
and copies of such notices of hearing are on file with the Agency.
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Section 4.
The Commission acknowledges receipt of the written reports and
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information relating to the Mt. Vernon ~orridor 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 February 22,2005.
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Section 5.
The Commission on behalf of the Agency finds and determines that the
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Ik-.~conducted by the Commission on this matter on February 22,2005, 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 all interests in it, by
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23 the Commission for community redevelopment purposes by the exercise of Eminent Domain
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and other relevant matters.
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Section 6.
The Commission declares its intent to acquire the Property for the Project
26 and community redevelopment purposes in the name of the Agency in accordance with the laws
27 of the State of California including the Community Redevelopment Law and'Health and Safety
Os. ' Code Sections. 3339l and:33"49Z.40: The Commission :fUrther finds and determines that all of
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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.
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Section 7.
The Commission has found and determined that the acquisition of the
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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 Detennination was filed with the Clerk of the County on
January 14,2005.
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In accordance with the provisions of Code of Civil Procedure Section
Section 8.
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1245.230, the Commission finds, detennines, 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 VemonCnlTi(lor
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Redevelopinem Project Area displays a number of conditions of blight, including the presence
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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 wita 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.
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(b)
The Project is planned or located in the manner that will be most compatible with
27 the greatest public good and the least private injury in light of the fact that the real property
08 included in the Mt. Vernon Corridor Redevelopment Project Area displays a munber of
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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 owners of record of the Property by the Agency, and the Agency has not been
successful in negotiating a purchase of the Property with such owners based upon such offers of
the Agency on terms that are acceptable to the owners of the Property. The Agency has asked
the Commission to approve its acquisition of the Property for assembly for the Project.
Section 9. (a) The law firm of Lewis Brisbois Bisgaard & Smith LLP as special
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 of the Property.
(b) The sum payable by the Agency as probable compensation for the acquisition of
the Property by eminent domain, as determined by the appraisal, shalf 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.
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.
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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 1307 SPRUCE STREET, SAN
BERNARDINO, CALIFORNIA (AP# 0138-11S-02) IN THE MT. VERNON
CORRIDOR REDEVELOPMENT PROJECT AREA
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PASSED, APPROVED AND ADOPTED this _ day of
,2005.
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I CERTIFY that the foregoing Resolution was duly adopted by the Community
9 Development Commission of the City of San Bernardino at its regular meeting held on
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, 2005 by the following vote, to wit:
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Commission Members:
Absent
Aves
Navs
Abstain
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ESTRADA
LONGVILLE
MCGINNIS
DERRY
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16 KELLEY
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JOHNSON
MC CAMMACK
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Secretary
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The foregoing resolution is hereby approved this
day of
,2005.
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Judith Valles, Chairperson
Community Development Commission
of the City of San Bernardino
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26 Approved as to form and Legal Content:
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By:
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STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
CITY OF SAN BERNARDINO
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I, Secretary of the Community Development Commission
of the City of San Bernardino, CERTIFY that the foregoing and attached copy of Community
Development Commission of the City of San Bernardino Resolution No. is a full,
true and correct copy of that now on file in this office.
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IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of
the Community Development Commission of the City of San Bernardino this _ day of
,2005.
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(Seal)
Attest:
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Secretary of the Community Development
Commission of the City of San Bernardino
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EXHIBIT "A"
Legal Description
THE WEST 50 FEET OF LOTS 4 AND 5, BLOCK 1, IN THE CITY OF SAN
BERNARDINO, STATE OF CALIFORNIA, THOMKINS SUBDMSION OF LOT
1, BLOCK 23, AS PER PLAT RECORDED IN BOOK 5 OF MAPS, PAGE 98,
RECORDS OF SAID COUNTY.
APN:013S.11~