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HomeMy WebLinkAbout14-Development Services ORIGINAL CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: JAMES FUNK, Director Subject: Resolution Authorizing Execution of an Agreement and Grant Deed -- Sale of City Water Department Property located at the Southeast comer of Mac Kay Drive and "D" Street. Dept: Development Services Date: August 24, 2005 File No.15.05-241 MCC Date: 09/19/2005 Synopsis of Previous Council Action: 04-04-2005 - Authorization to Proceed with the sale of City Water Department property was approved. 05-16-2005 - Resolution No. 2005-117 was adopted establishing the fair market value at $130,000.00 and Notice Inviting Bids for the parcel located on the Southeast comer of Mac Kay Drive and "D" Street was approved. _ 06-08-2005 - One written bid received for $160,000.00, all CASH terms, from David E. Mlynarski / Mapco for the sale of City property located on the Southeast comer of Mac Kay Drive and "D" Street. 07-05-2005 - Bid awarded to David E. Mlynarski / Mapco in the amount of$160,000.00 for the sale of City property located at the Southeast comer of Mac Kay Drive and "D" Street. Recommended Motion: ~~. Adopt Resolution James Funk Contact person: GLORIA J. PEDERSEN Staff Report, Map, Supporting data attached: Resolution Phone: 5226 Ward: 3 FUNDING REQUIREMENTS: Amount: Closing Costs To Be Paid From Proceeds Of Sale (amount to be determined) Source: (Acct. No.) 001-000-4925-0000 (Acct. Description) Sale of Misc. Property Finance: Council Notes: &~. ~OOS-::5;q 'I /iI1D5 Agenda Item No. / LJ CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report SUBJECT: Resolution authorizing execution of an Agreement and Grant Deed - Sale of City Water Department property located at the Southeast corner of Mac Kay Drive and "D" Street. BACKGROUND: The subject property consists of one parcel located at the Southeast corner of Mac Kay Drive and "D" Street and is 0.77::1 acres (or 33,541::1 square feet). This Parcel was acquired by the Water Department in 1990 for the purchase price of$I27,OO.OO (One Hundred Twenty Seven Thousand Dollars). 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 (One Hundred Thirty Thousand Dollars) or $3.90 per square foot. It is zoned CG-1 (Commercial General). On April 4, 2005 authorization to proceed with the sale of City Water Department property was given by the Mayor and Common Council. On April 5, 2005 notice was sent to all City Departments that this City-owned property had been declared surplus. No conflicts or objections to the proposed sale were made known by any City Department. On May 16,2005, Resolution No. 2005-117 was adopted, establishing the fair market value of this property at $130,000.00 (One Hundred Thirty Thousand Dollars) and also authorized the advertising of a Notice Inviting Bids in the Sun newspaper. On June 8, 2005 one written bid was received from David Mlynarski / Mapco in the amount of $160,000.00 (One Hundred Sixty Thousand Dollars) and was accompanied by the required 10% bid deposit of$16,000.00 (Sixteen Thousand Dollars). It was an all cash offer payable 60 days after the close of escrow. On July 5, 2005, with the absence of oral bids, the bid of$160,000.00 (One Hundred Sixty Thousand Dollars) was awarded to David Mlynarski / Mapco. The attached Resolution authorizes the execution of a Sales and Purchase Agreement and Grant Deed relative to the sale of this property. Upon approval and execution, the documents will be placed into escrow. The closing costs will be split between the City and the Buyer, as is customary. Since this property is owned by the City of San Bernardino on behalf of the Water Department, all sales proceeds will be transferred to the Water Department, less costs. The City will receive 10% (ten percent) of the sales proceeds pursuant to the City Charter. FINANCIAL IMPACT: Sale proceeds of$160,000.00 (One Hundred Sixty Thousand Dollars), less closing costs, to be transferred to the Water Department. The City will receive 10% of the proceeds through normal revenue transfer from the Water Department per the City Charter. RECOMMENDATION: Adopt Resolution. ) AC 2 v ~ '\\~ , I ~..4-,5) I 50 SO - t-: U) = UJ - - ~ :x: .. ~ , ~ III , 0 Ul ......., ., o 8- - -- ~ '\ - - ;; :1) '- I I I i 90 i I !'.. () ....: In \t\ . .r\ :' , .I'D" UJ " ~--~ .. -....:.,.... ~ ~ . ... /P(:J t.' //J.,,? U) ~_ '. ~ ... Par. 33 ~ @ 2.~J' /7$ >- ~ :::c (9 - J: ., ~D:>O ~~.-S) I " I . -Par. 1- - - ,~ II (2.75 AC.) ~~ ~ r6Q) 9\ 4.8)j'C.~~ 13 <(. .3,1. t~ Por.28 @ ~ .C'\ Par.27 fij\ "C:..) ~ 0 ,~ , , ~ "- " ~ o /6Z.CI -S-~8~6- {2.06 AC.J Par. 23 ,I ~ @ ~ '10 ~ 598. Zf4 r. . ," @ 2.91 AC. /;3 s ~ 8 . -z...t::; ~ ' " p' ~, ~.6 ~. " ~ Par. 22 ~@ Q Por. 6 ~ ~ ~ ~ - ~' Po r. 2. @ 6.40 AC. Por.5 '- ~.@; /;J 6b~&" Par. B :: ~ @ ~ () \5 ~ Par. 40 ...~ @~~ I Q /413 Property To Be Sold ,"'" "I ....por. 7 ... ~ @ ~ zs ------- 3t)1.5~ . ~ 1 RESOLUTION NO.-k u --if 2 RESOLUTION OF THE CITY OF SAN BERNARDINO DIRECTING AND 3 AUTHORIZING THE EXECUTION OF A SALES AND PURCHASE AGREEMENT WITH DAVID E. ML YNARSKI AND THE EXECUTION OF A GRANT DEED FOR 4 THE SALE OF CITY PROPERTY GENERALLY LOCATED ON THE SOUTHEAST CORNER OF MAC KAY DRIVE AND "D" STREET IN THE CITY OF SAN 5 BERNARDINO. 6 7 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 8 SECTION 1. That the Mayor of the City of San Bernardino is hereby directed 9 and authorized to execute on behalf of said City, a Sales and Purchase Agreement with 10 11 David E. Mylnarski, a copy of which is attached hereto as Exhibit "A" and a Grant Deed, a copy of which is attached hereto as Exhibit "BOO, for the sale of certain City property 12 13 located on the Southeast comer of Mac Kay Drive and "D" Street, in said City and more 14 fully described in detail in said Exhibit "A" and said Exhibit "BOO. 15 SECTION 2. That the amount of $160,000.00 (One Hundred Sixty Thousand 1,6 Dollars), from the sale proceeds of less closing costs, be transferred to the Water 17 Department upon the close of escrow. 18 19 SECTION 3. Said Agreement shall be null and void if either party fails to 20 execute the Agreement within sixty (60) days of the date of adoption of this Resolution. 21 22 23 24 25 II I III III 26 27 28 09/14/05 lei D ' j c; q /)9 )D) 1 RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT AND GRANT DEED FOR SALE OF CITY PROPERTY LOCATED AT THE SOUTHEASTCORNER OF MAC KAY DRIVE AND "D" 2 STREET. 3 4: 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 The foregoing resolution is hereby approved this 20 21 22 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 Council Members: AYES ESTRADA LONGVILLE MCGINNIS DERRY KELLEY JOHNSON MCCAMMACK , 20_, by the following vote, to wit: NA YES ABSTAIN ABSENT City Clerk day of ,20_. JUDITH V ALLES, Mayor City of San Bernardino 23 Approved as to form and legal content: 24 25 JAMES F. PENMAN City 1;torney 26 By: W~? o 27 28 ? J~_;_, 08/24/05 2 EXHIBIT "A" SALES AND PURCHASE AGREEMENT This Agreement ("AGREEMENT") is made and entered into this day of 2005, by and between the CITY OF SAN BERNARDINO, a municipal corporation ("SELLER") and DAVID E. ML YNARSKI ("BUYER") for the sale of City owned property ("PROPERTY"). PROPERTY to be sold is generally located at the Southeast comer of Mac Kay Drive and "D" Street, in the City of San Bernardino, State of California and is more fully described as follows: 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 In consideration of which and for the other considerations hereinafter set forth, it is mutually agreed as follows: 1. The parties have herein set forth the whole of their negotiations. The performance of this offer constitutes the entire consideration for said document and shall relieve the parties hereto of all further obligations or claims on this account. 2. PROPERTY consists of approximately 0.77:l: acres of vacant land and is designated "CG" (Commercial General). 3. Parties shall enter into Escrow with First American Title Insurance Company, 323 West Court Street, San Bernardino, California, for a period not to exceed sixty (60) days, unless mutually agreed upon by both parties. Parties authorize said Title Company to disburse funds accordingly. 4. The purchase price of PROPERTY shall be $160,000.00 (One Hundred Sixty Thousand Dollars). SELLER hereby acknowledges that BUYER has deposited with SELLER, the amount of$16,000.00 (Sixteen Thousand Dollars) which SELLER'shall deposit into Escrow toward said purchase price. 5. SELLER SHALL: A. Pay one-half of all Escrow fees, recording fees and any closing costs incurred in this transaction. B. Deliver an executed Grant Deed to Escrow #2006690 at First American Title Insurance Company, 323 West Court Street, San Bernardino, California. C. Provide an owner's title policy naming the BUYER as the insured in the amount of the purchase price, insuring that the BUYER owns fee title to PROPERTY, subject to the permitted exceptions. SELLER shall pay the premium for and charges related to the issuance of the owner's title policy. Title shall be vested as "3rd Street Development, LLC", as requested by BUYER. 1 SALES AND PURCHASE AGREEMENT - Southeast corner of Mac Kay Drive and "D" Street. 6. BUYER SHALL: A. Pay the SELLER the sum of $ 160,000.00 (One Hundred Sixty Thousand Dollars) cash, to be deposited into Escrow, less said deposit of$16,000.00 (Sixteen Thousand Dollars), for the property. B. PROPERTY interest will be conveyed when title to PROPERTY vests in the name of BUYER and is free and clear of all liens, encumbrances and assessments except as follows: 1) Covenants, conditions, restrictions and reservations of record. 2) Easements and/or rights of way over said land for public or quasi-public utility or public street purposes. C. BUYER shall have the right to review the condition of title in Escrow and its obligations shall be subject to its approval of the condition of title as provided therein. D. Pay one-half of all Escrow, recording and any closing costs incurred in this transaction. E.' BUYER accepts the PROPERTY in an "as-is" condition. 7. BUYER'S DEFAULT AND FORFEITURE OF DEPOSIT. If the BUYER refuses or fails to consummate the purchase of PROPERTY pursuant to this AGREEMENT for any reason other than termination hereofpursuant to a right granted hereunder to do so, or breach by SELLER of its agreements hereunder, then SELLER as its sole and exclusive remedy shall have a right to terminate this AGREEMENT by giving BUYER written notice thereof, in which event BUYER shall forfeit said deposit as liquidated damages and neither party hereto shall have any further rights or obligations hereunder. 8. SELLER'S DEFAULT AND RETURN OF DEPOSIT. If SELLER fails to perform any if its obligations hereunder, either prior to or at the closing of Escrow, the BUYER may terminate this AGREEMENT by notifying SELLER thereof, at which time said deposit, together with any interest earned thereon, shall be returned to BUYER and neither party hereto shall have any further rights or obligations hereunder. III III 2 SALES AND PURCHASE AGREEMENT - Southeast corner of Mac Kay Drive and "D" Street. IN WITNESS WHEREOF, the parties have executed this Agreement the day and year as firstWrltten above. NO OBLIGA nON OTHER THAN THOSE SET FORTH HEREIN WILL BE RECOGNIZED. BUYER: SELLER: CITY OF SAN BERNARDINO By: By: DAVID E. ML YNARSKI JUDITH V ALLES, Mayor Approved as to form and legal content: ATTEST: JAMES F. PENMAN, City Attorney RACHEL CLARK, City Clerk By: 3 RECORDING REQUESTED BY: ,....... WHEN RECORDED MAIL THIS DEED AND. 5S OTHERWISE SHOWN. MAIL TAX ~ . EMENTS TO: David E. Mlynarski, Principal 3rd Street Development, LLC 413 Mac Kay Drive P.O. Box 5822 San Bernardino, CA 92412 Escrow No.: 2006690 APN: 0141-311-21 SPACE ABOVE FQR RECORDER'S USE GRANT DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, The CITY OF SAN BERNARDINO, a municipal corporation, hereby grants to 3rd Street Development, LLC, the real property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: 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 CITY OF SAN BERNARDINO, a municipal corporation Dated: By: JUDITH V ALLES, Mayor ACKNOWLEDGEMENT OF GRANTOR(S): STATE OF CALIFORNIA COUNTY OF } S.S. On before me, , personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in hislher/their authorized capacity(ies), and that by hislher/their signature(s) on the instrument the person(s), or the entity on behalf of which person(s) acted, executed the instrument. . WITNESS my hand and official seal. ::'tgnature EXHIBIT "B"