HomeMy WebLinkAbout22-Development Services
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ORIGINAL
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Dept: Development Services
Subject: Resolution Establishing Fair
Market Value and Giving Notice Inviting
Bids - City owned Parcel S/E corner of
Mac Kay Dr. and "D" Street
From: JAMES FUNK,
Director
Date: April 21, 2005
File No. 15.05-241
MCC Date: 05-16-2005
Synopsis of Previous Council Action:
Authorization to proceed was approved by the Mayor and Common Council on April 4, 2005.
Recommended Motion:
Adopt Resolution
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James Funk
Contact person: GLORIA J. PEDERSEN
Phone: 5226
Supporting data attached: Staff Report, Map, Res. Ward: 3
FUNDING REQUIREMENTS: Amount:
Closing Costs (Unknown At This Time)
001-000-4925-0000
Source: (Acct. No.) From proceeds of sale
(Acct. Description) Sale of Misc. Property
Finance:
Council Notes:
Agenda Item No.
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CITY OF SAN BERNARDINO.... REQUEST FOR COUNCIL ACTION
Staff Report
SUBJECT:
Resolution Establishing Fair Market Value and Giving Notice Inviting Bids - City owned parcel
located on the Southeast comer of MacKay Drive and "D" Street.
BACKGROUND:
On April 4, 2005 staff was authorized to proceed with the sale of this surplus Water Department
property.
The subject property consists of one parcel located at the southeast comer of MacKay Drive and
"D" Street and is 0.77=*= acres (or 33,54l:i: square feet). This parcel was acquired by the Water
Department in 1990 for the purchase price of $ 127,000, as part of the acquisition of the Blood
Bank Property, which is now the administrative building for the Water Reclamation Plant. The
Water Department reserved this parcel for a potential future well site for dewatering. However,
San Bernardino Valley Municipal Water District has drilled and developed two dewatering wells
in this area and the Department's ability to extract and use water south of Mill Street is restricted.
The Department determined that this site would not be viable as a future well site. On July 27,
2004 the Board of Water Commissioners declared this property as surplus and authorized its
sale.
The parcel was appraised for $130,000.00 or $3.90 a square foot by Tierra West Appraisal &
Land Use Dynamics, Inc. The parcel is zoned CG-l (Commercial General). Staff has reviewed
the appraisal and concurs with the determination of value by the appraiser.
Notice of sale of this surplus property was sent to all City departments and it was determined that
there are no conflicts or request for reservation of the property.
The proceeds of the sale, less any costs incurred, will be forwarded to the Water Department
upon conclusion of the sale. As stated in the City Charter Article IX, Section 164, 10% of Water
Department revenues may be transferred to the City's General Fund.
The City Charter requires that any real property sales of $25,000 or higher be sold through the
public bid process. The attached Resolution establishes the fair market value for this parcel as
set forth above, and declares this parcel as surplus property and authorizes the advertising of a
Notice Inviting Bids.
As stated in the Resolution and Bid Specifications, the bids will be opened and declared at 2:00
P.M. on June 8-,2005. The results of the bids will be submitted at the Council Meeting of July 5,
2005 for your review and action. Oral bids may also be considered at that time.
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FINANCIAL IMPACT:
All costs relative to this sale (staff time, escrow, title and closing costs, etc.) will be paid for from
the sale proceeds. Ten percent of the sale proceeds to the Water Department may be transferred
to the City.
RECOMMENDATION:
Adopt Resolution.
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SPECIFICATION NO. 15.05-241
NOTICE OF SALE OF REAL PROPERTY:
SOUTHEAST CORNER OF MAC KAY DRIVE AND SOUTH "0" STREET
REQUIREMENTS OF BIDDING AND SALE
NOTICE IS HEREBY GIVEN inviting sealed bids for the sale of City owned property, as
authorized by action of the Mayor and Common Council of the City of San Bernardino.
1. LOCATION AND DESCRIPTION OF PROPERTY TO BE SOLD:
(A) ProDertv Location: The subject property consists of 1 parcel of V ACANT land totaling
approximately 0.77 acres located on the Southeast comer of MacKay Drive and South "0" Street,
San Bernardino, California, referred to as Assessor's Parcel Number 00 141-311-21. A full legal
_ description is attached hereto, marked Exhibit "A".
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(B) Zoninll and Use: The subject property is currently zoned as CGl (Commercial General).
The property is presently vacant with no improvements existing on the site.
(C) Condition ofProDertv: The subject property is being sold "AS-IS".
2. MINIMUM BID:
The minimum acceptable bid (net of any broker fees) for said real property 5130,000.
3. INSPECTION:
The subject property may be inspected by any potential bidders at will.
4. SEALED BIDS:
Sealed bids, submitted on the Official Bid Form attached, will be received in the Real
Property Section, Development Services Department, Third Floor, City Hall, 300 North "0" Street,
Spec241
04/20/05
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o San Bernardino, California, until the hour of2:oo P.M., June 8, 2005, at which time all bids received
will be publicly opened and declared. All bids must be accompanied by a cashier's check in an
amount of at least 10% (TEN PERCENT) of the amount bid. The results of said bidding shall be
submitted to the Mayor and Common Council at their next regularly scheduled meeting on July 5,
2005 at the hour of 4:00 P.M, or as soon as possible, thereafter.
5. ORAL BIDS:
Oral bids may be made at the Council Meeting stated above. Oral bids may be received in
$100 increments for the outright purchase of the property, provided that the initial oral bid shall be
an amount not less than the highest sealed bid plus 10% (TEN PERCENT). In the event of a
successful oral bid, a cashier's check in an amount of at least 10% (TEN PERCENT) of the bid
amount shall be deposited with the City Clerk prior to the end of said meeting.
ct 6. UNSUCCESSFUL BIDS:
All sealed bid deposits of unsuccessful bidders will be promptly returned, without interest,
after determination of the successful bidder by the Mayor and Common Council, or upon rejection
of all bids.
7. REJECfION OF BIDS:
The Mayor and Common Council shall have the right to reject any and all bids.
8. SUCCESSFUL BIDDER:
The successful bidder, as determined by the Mayor and Common Council, will be required
to execute a mutually acceptable purchase agreement and to enter into escrow within 30 (THIRTY)
days after said determination of the successful bidder. The escrow instructions shall include, but not
be limited to:.
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04/21/05
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A. The recording of the Grant Deed from the City and the closing of escrow within sixty
(60) days of entering into escrow.
B. The successful bidder shall deposit the entire bid amount for the property, plus the
amounts necessary as outlined in Paragraph C and D below, less the bid deposit amount,
within said sixty (60) day escrow period. The City may consider terms for any portion
ofthe bid amount and will give consideration to all factors, including amount and length
of terms and interest rate to be paid, in determining the successful bidder. The amount
to be carried by the City and shall be secured by a Note and Deed of Trust or other
instrument acceptable to the City. In the event of two or more equal bids, the City
reserves the right to select the bidder based on the most favorable terms.
C. Escrow, title policy and all other fees and closing costs shall be split evenly between the
City and the successful bidder.
D. Broker's commission, if any, shall be paid in its entirety by the purchaser, over and above
the bid amount
E. In the event of any failure by the successful bidder to execute and complete escrow
instructions within the allotted time, the deposit made by the successful bidder shall be
retained by the City as liquidated damages and not as a penalty in the event of any failure
on the part of the successful bidder.
Spec241
04/20/05
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EXHIBIT " A"
Parcel 6 of Parcel Map No. 5333, in the County of San Bernardino, State of California, as
per plat recorded in Book 50 of Parcel Maps, Pages 96, 97 and 98, records of said
County.
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RESOLUTION NO.
t(Q)[P)Y
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2 RESOLUTION OF THE CITY OF SAN BERNARDINO GIVING NOTICE
INVITING COMPETITIVE SEALED AND ORAL BIDS FOR THE SALE OF CERTAIi'\
3 REAL PROPERTY OWNED BY THE CITY, GENERALLY LOCATED ON THE
SOUTHEAST CORNER OF MAC KAY DRIVE AND SOUTH "D" STREET IN THE CITY,
4 AND DETERMINING THE FAIR MARKET VALUE AND ESTABLISHING MINIMUM
5 SALE PRICE FOR SAID PROPERTY.
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WHEREAS, the City of San Bernardino. a municipal corporation. is the owner on behalf
of the' Water Department of the hereinafter described parcel of real property, generally located on
the Southeast comer of MacKay Drive and South "0" Street in the City of San Bernardino, State of
California; and
WHEREAS, on July 27,2004, the Board of Water Commissioners declared said property
as surplus and authorized its sale; and
WHEREAS, the Mayor and Common Council of the City of San Bernardino find and
determine that there is no necessity for the City's ownership of said property; and
WHEREAS, the Mayor and Council believe it to be in the best interest of the City that said
parcel of real property be disposed of at the highest price obtainable in the open market; and
WHEREAS, an appraisal was prepared by Tierra West Appraisal & Land Use Dynamics,
Inc., indicating a fair market value of$130,000.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. Notice is hereby given inviting competitive sealed and oral bid proposals for
the disposition of the following real property, more particularly described in and subject to the t~rl11s
of Bid Specification No. 15.05-241, on file in the office of the Director of Development Services,
Real Property Section, City Hall, Third Floor, 300 N. "0" Street, San Bernardino, California. and
generally described as follows:
Approximately 0.77 acres of vacant land located on the Southeast comer of MacKay Drive
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RESOLUTION INVITING BIDS FOR THE SALE OF CITY PROPERTY LOCATED ON THE SOUTHEAST
CORNER OF MAC KAY DRIVE AND SOUTH "0" STREET AND DETERMINING FAIR MARKET VALUE.
and South "0" Street, in the City of San Bernardino. A full legal description is attached hereto as
Exhibit "A" and made a part hereof, and also is described in said Bid Specification No. 15.05-241.
SECTION 2. The minimum acceptable bid amount for said property is $130,000 and is
hereby established as the fair market value of said property.
SECTION 3. Sealed bid proposals must be accompanied by a Cashier's check in an anlount
equal to 10% of the total amount of the purchase price bid.
SECTION 4. Sealed bids must be delivered to the Director of Development Services. Real
Property Section, City Hall, Third Floor, 300 North "0" Street, San Bernardino, California, prior to
2:00 P.M., June 8, 2005, at which time said sealed bids shaH be opened and publicly declared. The
results of said bidding shaH be submitted to the Mayor and Common Council at the hour of 4:00
P.M., July 5,2005 or as soon as possible thereafter. At that time, oral bids may be received in at
least $100 increments for the outright purchase of the property, provided that the initial oral bid shall
be an amount not less than the highest sealed bid plus 10%. The successful bidder is required to
make a non-refundable deposit with the City Clerk in the form of a Cashier's check, prior to the end
of the meeting or within 2 hours of awarding the bid, whichever shaH occur later, in an amount equal
to 10% of the bid amount.
SECTION S. Copies of Bid Specifications and Official Bid Form may be obtained from the
office of the Director of Development Services, Real Property Section, City Hall, 3rd Floor. 300 N.
"0" Street, San Bernardino, California, 92418.
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1 RESOLUTION INVITING BIDS FOR THE SALE OF CITY PROPERTY LOCATEO ON THE SO(;THEAST
CORNER OF MAC KAY ORlVE ANO SOUTH "0" STREET ANO OETERMINING FAIR MARKET V AWE.
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SECTION 6. All written bid proposals must be signed, sealed and delivered as indicated
in Section 4. No bid proposal will be considered which fails to offer a sum equal to or greater than
the minimum acceptable bid prices established herein, or which is filed at a later time or at a
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different place than as stated in Section 4, unless there is substantial compliance as determined by
the City Administrator in his sole discretion. The Mayor and Common Council reserve the right to
reject any and all bids submitted. The Mayor and Common Council also reserve the right to make,
at their sole discretion, a determination as to whether the property shall be sold.
SECTION 7. This resolution shall be posted on or near the door of the Council Chambers,
City Hall, San Bernardino, California, for at least 5 (five) consecutive days prior to the date set for
opening of bids and a Notice Inviting Bids for the disposition of said property shall be published not
less than 10 days prior to said bid opening date in the San Bernardino Sun, a newspaper of general
circulation published and circulated in said City.
4/20105
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1 RESOLUTION INVITING BIDS FOR THE SALE OF CITY PROPERTY LOCATED ON THE SOUTHEAST
CORNER OF MAC KAY DRIVE AND SOUTH "D" STREET AND DETERMINING FAIR MARKET VALUE.
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20 The foregoing resolution is hereby approved this
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I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and
Common Council of the City of San Bernardino at a
meeting thereof held
on the
day of
,20_, by the following vote, to wit:
Council Members:
AYES
NA YES
ABSTAIN
ABSENT
ESTRADA
LONGVILLE
MCGINNIS
DERRY
KELLEY
JOHNSON
MCCAMMACK
City Clerk
day of
,20_,
JUDITH VALLES, Mayor
City of San Bernardino
Approved as to fonn
and legal content:
JAMES F. PENMAN
City ttomey
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EXHIBIT" A"
Parcel 6 of Parcel Map No. 5333, in the County of San Bernardino, State of Cali fomi a, as
per plat recorded in Book 50 of Parcel Maps, Pages 96, 97 and 98, records of said
County.
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** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
M<<ting Dat< (D.t< ~, 4/1&[ p( Item ,
Vote: Ayes.J2 Nays
Change to motion to amend original documents 0
?J-
Resolution #
de tiS- !/7
Absent if ~
Abstain
Companion Resolutions
NullNoid After: days /
Resolution # On Attachments: 0 Note on Resolution of attachment stored separately: 0
PUBLISH 0 POST 0 RECORDW/COUNTY 0
Dat< Son' to May"" ~/ noS 7'
Date of Mayor's Signature: (../ ~ ' ~
Date ofClerk/CDC Signature: G )4, 05
By:
Reso. Log Updated: 6
Seal Impressed: il(' /
Reso. # on Staff Report G(
Date Memo/Letter Sent for Signature:
151 Reminder Letter Sent:
Date Returned:
2nd Reminder Letter Sent:
Not Returned: 0
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413, 6429, 6433, 10584, 10585, 12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985, 8234, 655, 92-389):
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Yes
Yes
Yes
Yes
Yes
No_ By_
No /" By_
NoL By_
No? By_
NO~BY_
Copies Distributed to:
;j Animal Control 0 EDA 0 Information Services 0
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~ City Administrator ~ Facilities ~ Parks & Recreation 0
City Attorney Finance Police Department 0
Code Compliance (-)/ ) Fire Department 0 Public Services 0
Developme Servic Human Resources 0 Water Department 0
Others:
Notes:
Ready to File:
Date:
Revised 12/18/03