HomeMy WebLinkAboutR43-Economic Development Agency
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
ORIGINAL
, ~
FROM: Maggie Pacheco
Executive Director
SUBJECT:
Hearing - Resolution of Public Interest and
Necessity for Acquisition of Real Property: 495
North '~G" Street, San Bernardino, California
(APN: 0134-101-28)
DATE:
May 10, 2006
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Svnopsis of Previous Commissiop/CoupciVCommittee Action(s):
On February 7, 2005, 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 block bounded by 4th, 5th, "G" and "H"
Streets, the parcels on the north side of 5th Street between "G" and "H" Streets, the 4 parcels on the northeast comer of 5th and
"G" Streets and 6 parcels on the south side of 5th Street between "G" and "F" Streets (see Exhibit "A" - Study Area) in
accordance with the adopted Agency Owner Participation Rules for the Central City North Redevelopment Project Area. No
proposals were received.
On November 7, 2005, the Community Development Commission adopted a Resolution: I) approving the Downtown Mixed
Use Project Concept Plan ("Project") and adopting a Mitigated Negative Declaration for the Project in accordance with CEQA,
and 2) approving a Redevelopment Project Study and Exclusive right to Negotiate Agreement by and between the Agency and
Watson and Associates Development Company, Inc. ("Watson") relative to the Implementation ofthe Project.
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Recommended Motion(s):
Open/Close Hearing
(Communitv Development Commission)
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 located at 495 North "G" Street, San
Bernardino, California (APN: 0134-101-28) in the Central City North Redevelopment Project Area
..._________________~.______________.._+_____________~~___~____________~____~______________.____._.___________.~____.______________d.___________________________________.__+~.._____
Project Area(s)
Maggie Pacheco
Central City North
Redevelopment Project Area
Phone:
(909) 663-1044
Contact Person(s):
Ward(s):
Supporting Data Attached: 0 Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) Ii'l Map(s) 0 Letters
Approx.
FUNDING REQUIREMENTS Amount: $ 1,450,000 Source: Low/Mod Bond Proceeds
SIGNATURE:
Budget Authority:
I
indseth, Admin. Services Director
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P:\Agendas\Comrn Dev Commission\CDC 2006\06+05-06 ResolutKlIIofNecessity- 495 North G 51. SR.doc
COMMISSION MEETING AGENDA
Meeting Date: 06/05/2006
4847-4960-5888.1
Agenda Item Number:
R.lJ3
ECONOMIC DEVELOPMENT AGENCY
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STAFF REPORT
HEARING - RESOLUTION OF PUBLIC INTEREST AND NECESSITY FOR ACOUlSITION
OF REAL PROPERTY: 495 NORTH "G" STREET. SAN BERNARDINO. CALIFORNIA
~PN: 0134-101-28)
BACKGROUND:
On November 7, 2005, the Community Development Commission ("Commission") approved the
Central City North Downtown Mixed Use Project Concept Plan ("Plan") and the Redevelopment
Project Study and Exclusive Right to Negotiate Agreement ("Agreement") with Watson & Associates
Development Co., Inc. ("Developer"). Through the Plan, the Agency will acquire certain properties in
an effort to encourage and effectuate the redevelopment of certain real property ("Study Area")
bounded by, 5th Street to the north, "G" Street on the east, "H" Street on the west, and 4th Street on the
south, including the north side of 5th Street between "H" and "G" Streets, the four (4) parcels at the
northeast corner of 5th Street and "G" Street, and the six (6) parcels at the southeast corner of 5th and
"G" Street, excluding the new TELACU II Monte Vista Senior Housing Complex (Exhibit "A").
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The intent of the Plan is to eliminate blighted conditions, encourage economic development by
creating owner-occupied mixed use and mixed income housing (i.e., commercial on the ground floor,
residential on the upper floors) for those properties with frontage on 4th Street and 5th Street, with
townhouses located immediately south of the mixed use development on the south side of 5th Street
and on the west side of "G" Street. The Plan will also include complimentary parking and amenities,
which will include high quality architectural and urban design. Moreover, the objective of the Plan is
to act as a catalyst in the revitalizing of the downtown area and to encourage people to live and work in
downtown.
Within the Study Area, the Commission has previously authorized Agency staff to make offers to
purchase certain properties within the Study Area, and to date the Agency has acquired 6 parcels (from
3 different property owners) and 24 parcels remain to be acquired.
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On May 27, 2005, the Agency sent a purchase offer ("Offer") to Allied Capital Investments, LLC
("Property Owner") to purchase the property located at 495 North "G" Street, San Bernardino,
California (APN: 0134-101-28) ("Property"). The Agency obtained an updated appraisal of the
Property and transmitted another Offer and Summary of Valuation in conformity with Govemment
Code ~ 7267.2(b) to the owner of record on April 25, 2006 at his address on file with the office of the
County Tax Assessor as shown on the last equalized county assessment roll, and the owner of record,
Allied Capital Investments, LLC, received the updated Agency Offer. In each Offer, the Property
Owner was requested to convey free and clear title and additionally, free and clear of all leasehold
interests in the Property by tenants and any other parties occupying the Property. Although the
Agency has been in contact with the Property Owner, the Property Owner has not accepted an Agency
Offer. The Property Owner has in fact delivered a letter to the Agency dated May 15,2006, rejecting
the prior offers of the Agency and requesting a purchase price to be paid by the Agency for the
Property equal to $2,000,000 plus other statutory amounts as may be due and payable to the tenants
located on the Property. Said letter is attached to this Staff Report for your information and review
(Attachment I).
P:\Agendas\Comm Oev ComminionlCDC 2006\06-05-06 Rcsolulion orNe<<uity. 495 North G SI. SR.,doc
COMMISSION MEETING AGENDA
Meeting Date: 06/0512006
Agenda Item Number: M3-
4847-4%0-5888.1
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Economic Development Agency Staff Report
CCN Property Acquisition-APN: 0134-101-28
Page 2
Currently, the Property is occupied with two (2) tenants. The first tenant, .98ft and Up, is a market that
sells several sundry items including beer and wine. The second tenant, Laundry Mat, is a coin-
operated laundry facility that has approximately sixty (60) washers of various capacities and
approximately forty (40) industrial capacity dryers. There is also on-site management.
CURRENT ISSUES:
Consequently, in conformance with the Code of Civil Procedure Section 1245.235, on May 11,2006, a
notice of the June 5, 2006 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. Notice of the Hearing was also posted on the Property and mailed to all known tenants.
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:
1.
The public interest and necessitv requires the acquisition of the Propertv: The Agency has
an agreement for an approved Plan that includes this Property. During the past year, the
Agency has acquired six (6) parcels of land within the vicinity of the Property. The Agency
finds it appropriate to continue the program of land assembly and to acquire this additional
Property to provide sufficient contiguous land for the Plan and the contemplated 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 Central City North 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 Property 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, high crime rate, high volume of code compliance cases, absentee owners and
tenants in possession, and inadequate lot size. Redevelopment of the Property will eliminate
blight and provide needed residential and retail development in the Project Area and will assist
with the elimination of blight in other areas in proximity to the Project.
3.
The subiect Propertv is necessary for the Proiect: The Agency previously acquired six (6)
parcels of real property in the vicinity of the Property and desires to acquire this additional
Property 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
4847-4960-5888.1
COMMISSION MEETING AGENDA
Meeting Date: 06/0511006
Agenda Item Number: It. '13
P-\Agendas\Comm Dev Commission\CDC 2006I06-OS..Q6 Resolution orNecessily. 495 North G St. SR..doc
Economic Development Agency Staff Report
CCN Property Acquisition-APN: 0134-101-28
Page 3
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ownership, abandoned properties, absentee owners, high crime (91 Part I Crimes for the period
of January 11-April 11, 2006; 436 Part I Crimes for 2005 and 426 for 2004) and code
compliance cases. 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 ProDertv Owner:
On May 27, 2005 and April 25, 2006 the Agency submitted formal acquisition offers to the
Property Owner of the subject Property. The offers comply with Govemment Code ~ 7267.2.
To date, the Agency and the Property Owner have not been able to agree upon a Purchase Price
for the Property.
ENVIRONMENTAL IMP ACT:
On or about September 7, 2004, the Community Development Commission considered and certified
Environmental Impact Report SCH#2003031072 (the "EIR") in accordance with the California
Environmental Quality Act ("CEQA") for the Project Area which addresses reinstating the Agency's
power of condemnation and the acquisition of Property contemplated within the Plan and for the
Project is consistent with the EIR for the Project Area.
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On November 7, 2005, the 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 Agreement. On November 10,2005, said NOD was filed with the
County Clerk.
FISCAL IMPACT:
Based on the appraisal, the cost to acquire the subject Property is $1,390,000 plus court costs and legal
expenses normally associated with condemnation proceedings for an approximate total of $1,450,000.
RECOMMENDATION:
That the Community Development Commission adopt the attached Resolution.
rYJ?~h
Maggie Pacheco, Executive Director
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COMMISSION MEETING AGENDA
Meeting Date: 0610512006
Agenda Item Number: .&9L
4847-4960-5888.1
P\AlIendasIComm Dev Commission\COC 2006\06-0S-06 Resolution ofNe<:essity. 49S North G 51. SR.doc
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Exhibit "A"
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May IS, 2006
ATTACHMENT 1
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Maggie Pacheco
Executive Director
C/O Mike Trout
Project Manager
CITY OF SAN BERNARDINO
Economic Development Agency
20 I North E Street, Suite 30 I
San Bernardino, Ca. 92401-1507
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Re: Offer from Redevelopment Agency reg. Purchase of APN # 0134-101-28
Aka 495 North "G" Street, San Bernardino.
Dear Ms. Pacheco:
I am in receipt of your letter dated April 25, 2006.
Please be advised that on May 3, 2006, I forwarded a letter (copy of which is
attached hereto) to Phillip Gottfried ofInland Empire Consultation, Inc.. In that letter, I
asked him to take into consideration additional rent in the amount of $17,033.92 into
consideration plus certain other factors. To date, I have not heard anything from him.
Have you?
In your letter dated April 25, 2006, I cannot accept the Agency's offer to purchase
for the amount of $1.390,000.00. This amount does not represent the fair market value of
the property. My belief is that a fair market value for the subject property is about $1.7
million, which is the which someone is willing to purchase this property for.
Additionally, depending on the wording of the lease agreement, either the landlord or the
tenant is entitled to value of the leasehold interest plus any goodwill.
Additionally, under Code Civ. Proc. 1263.510, where the business good will is
caused by the condemning, and where the loss cannot reasonably be prevented by
relocating the businesses, compensation for the loss of good will is owed to the tenant, or
the property owner.
Currently, there is a mini mart with beer and wine license, a coin laundry which
has already exercised his lease option, and three public phones. Good will value for the
market and the coin laundry is estimated to be valued at approximately $300,000 to
$400,000.00.
In conclusion, it is my opinion that the just compensation for the subject property
and the two leases is estimated to be approximately $2,000,000.00 to $2.100,000.00,
which represent the amount I am willing to sell this property for to the agency. As such, I
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ATTACHMENT I
am willing to sell the property to the Agency under the following general terms, which
shall not be deemed to constitute a binding agreement:
1) Purchase Price to be $2,000,000.00.
2) Purchase price includes real property in the amount of$1.7 million, plus
$300,000 for the leasehold interest and good will for the tenant at Mini
Market (unit A), and Coin Laundry (B&C). It does not include other
statutory concessions to the tenants.
3) Sale is to be "As Is", without any warranties.
4) Property will NOT be vacated prior to close of escrow by Seller. Seller
will not take steps to vacate the property, the Agency can do that after they
acquire title through eminent domain.
The above are the general terms, and upon agreement of the above terms, I will be
willing to enter into negotiations on the type and form of purchase contract that is to be
used. I am not commendable to the form prepared by the Agency attached to the prior
letter dated April 25, 2006.
Should you have any questions, please forward all correspondences in writing to
the address below.
Sincerely,
~~
Sam Kim
Managing Member
ALLIED CAPITAL INVESTMENTS, LLC
5661 Beach Blvd. #201
Buena Park, Ca. 90621
Enclosure(s): Letter dated May 3, 2006
Page 2 of 4
ATTACHMENT I
SENT VIA F ACIMILE TO 909-984-4226 AND FIRST CLASS MAIL
Q May 3, 2006
Phillip Gottfried, MAl
Principal
INLAND EMPIRE CONSULTANTS, INC.
545 W. Sixth Street
Ontario, Ca. 91762
Re: 495 N. G. Street
San Bernardino, Ca.
I received a letter from Maggie Pacheco, Executive Director for the City of San
Bernardino Economic Development Agency. Attached to her letter, was a Statement of
Valuation from you with an effective date of March 17,2006. "
This report arrived with an estimated market value of $1.390 million, which was the
value that I purchased this property for back in May 5, 2005. I have in my possession an
appraisal for this amount performed by a MAl appraiser.
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I would like to ask you to consider two items and consider revising your current value.
Since I never gave the following updated figures to you, you could not have used any of
these in your calculations:
I) Rent for the Market went up: $100.00, to $4600, effective January I, 2006.
2) Unit A, the Market, commenced paying NNN charges in the amount of $1336.16
Monthly or $16,033.92 from November 2005.
3) Unit C, the Coin Laundry, is obligated to pay the increase in CAM and Property
Tax charges using $400,000 as base year. The property is currently valued at
$1.417 million, and as such, they are responsible for the 56.61 % of the taxes on
$1,017,000, or $6333 annually.
Thus, you need to consider the following additional annual income, which you did not
previously consider when you arrived at the $1.39 million figure: $1200, $16,033.92, and
$6333, for total of $23,566.92.
As such, this would be an additional Income Approach using the same 6.25% CAP which
you previously used, of $377,070.72. Thus, the income approach, using your figures,
and updated figures, would yield an estimated sales price of$I,370,000 +
$ 377,070.72 or $1,747,070.70.
o
Additionally, the fact that the Coin Laundry has NOT had a scheduled rental increase in
the last four years, and is scheduled for an estimated 20% increase (Five year
accumulative CPI increase), or $ 955.40 monthly increase, on June 1,2007. This fact
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ATTACHMENT I
will tend to increase the desirability and value of the property. You have to take this into
consideration. An investor and buyer surely will.
In a common sense approach, the property was purchased for $1.39 million on May 5,
2005. An MAl appraiser dated March 21, 2005, is on file for $1.39 million. Since then,
the rental income increased by $23,566.92, yet according to your appraisal report, the
value of the property has not increased one dime. Not logical. Furthermore, how do you
justify an increase in the value from May, 2005, when you estimated the value at
$1,050,000, and which was before you becoming aware that the property just closed for
$1.39 million earlier that same month, to $1.39 million in less than one year later, when
you did not take any rental increases or additional concessions into consideration. How
can you be offby $340,000. This just adds fuel to the rumors that the City is
undervaluing property values, which it is purchasing through Eminent Domain, and in
most cases, succeeding because the property owners can't afford the costly legal action. I
have been sent numerous letters from victims of this unethical tactic. Your actions are
very disturbing and suspicious.
Please be advised that there is an independent MAl appraiser working on an appraisal
report and that appraiser should be ready shortly and is expected to yield a more realistic
value, which is anticipated to be much higher than your value. That appraiser took the
additional rental income into consideration. Please likewise use the updated figures
contained in this letter and update your opinion value and forward a copy to my attention.
In my experience, in a majority of purchases and sales, the appraised value is about $50K
to $1 OOK less than the actual sales price. But, keep in mind that Fair Market Value is
not the appraised value, but the most probable price which a property should bring in a
competitive and open market, under all conditions requisite to a fair sale, the buyer and
seller, each acting prudently, knowledgeable, and assuming the price is not affected by
undue stimulus, under conditions which Buyers and Seller are motivated, well informed,
and the property is exposed to reasonable time on open market. This property, with its
current rents and other factors, will likely appreciate a sales price of at least $1.7 to 1.8
million.
Should you have any questions, please do not hesitate to write. I would prefer to
communicate in writing.
Sincerely,
~4~
----Sam Kim .
Managing Member
Allied Capital Investments, LLC
5661 Beach Blvd. #201
Buena Park, Ca. 90621
Facsimile: 714-736-9901
Page 4 of 4
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RESOLUTION NO.
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 LOCATED AT 495 NORTH "G" STREET, SAN
BERNARDINO, CALIFORNIA (APN: 0134-101-28) IN THE CENTRAL
CITY NORTH 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
Law; and
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 Central City
North Redevelopment Project Area; and
WHEREAS, the Central City North 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 Central City North
Redevelopment Project Area; and
WHEREAS, on March 14,2005, the Agency mailed a notice to the owner of record of
the real property located within the Central City North Redevelopment Project Area ("Project
Area") as described below, (the "Property") and informed such persons that the Agency
intended to appraise the Property for possible acquisition; and
WHEREAS, on October 3, 2005, the Agency mailed a notice to the owner of
record of the real property located within the Central City North Redevelopment Project Area
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4830-5504-1536.1
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("Project Area") as described below, (the "Property") and informed such persons that the
Agency intended to reappraise 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 improved Property
located at 495 North "G" Street, San Bernardino, CA 92410 (APN: 0134-101-28) (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 May 27, 2005 and April 25, 2006, the
Agency mailed a purchase offer to the owner of record of the Property based on the appraised
value of the Property described in this Resolution; and
WHEREAS, the Agency transmitted the offer to purchase the Property situated within
the Central City North Redevelopment Project Area, based on the appraised value on May 27,
2005 and April 25, 2006, to the owner of record of the Property at the address on file with the
office of the County Tax Assessor, as shown on the last equalized county assessment roll and
the owner of record, Allied Capital Investments, LLC, received the offer but did not accept the
Agency offer; and
WHEREAS, the Agency obtained an updated appraisal of the Property and transmitted
another offer and summary of valuation in conformity with Government Code ~ 7267.2(b) to
the owner of record on April 25, 2006 at the address on file with the office of the County Tax
Assessor as shown on the last equalized county assessment roll, and the owner of record, Allied
Capital Investments, LLC, received the updated Agency offer; and
WHEREAS, the Agency has not been able to satisfactorily complete a negotiated
purchase with the owner of record of the Property to acquire the Property for community
redevelopment purposes; and
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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
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Property; and
WHEREAS, on November 7, 2005, the Commission adopted Resolution No.CDC/2005-
39 approving a Redevelopment Study Agreement and Exclusive Right to Negotiate (the
"Agreement") by and between the Agency and Watson and Associates Development Company,
Inc. (the "Developer"), and adopted the Mitigated Negative Declaration for the Downtown
Mixed Use Project Plan (the "Plan") and for the Project to be built (the "Project") described in
more detail in the CEQA Initial Study dated October 1 I, 2005; and
WHEREAS, on or about September 7, 2004, the Agency considered and certified
Environmental Impact Report SCH#2003031072 (the "EIR") in accordance with the California
Environmental Quality Act ("CEQA") for the Project Area, and the acquisition of property
contemplated within the Plan and for the Project is consistent with the EIR; and
WHEREAS, Part I Crimes within the area of the Plan and the Project were reported as
91 incidents of crime for the period January 1 I through April I 1,2006; and 436 for 2005 and
426 for 2004; and
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WHEREAS, the Agreement contemplates the Agency acquiring or obtaining control of
parcels necessary for the Plan either through purchase negotiations or alternatively, by eminent
domain proceedings, if necessary; and
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WHEREAS, on May 11, 2006, notice of hearing on this Resolution was mailed to the
owner of record of the Property, Allied Capital Investments, LLC, 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 May 15,2006; and
WHEREAS, Allied Capital Investments, LLC, has delivered a letter to the Agency dated
May 15, 2006, rejecting the prior offers of the Agency and requesting a purchase price to be
paid by the Agency for the Property equal to $2,000,000 plus other statutory amounts as may be
due and payable to the tenants located on the Property; and
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WHEREAS, on June 5, 2006, 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
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 June 5,
2006, 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:
The information set forth in the above recitals of this Resolution is true
Section 1.
and correct.
Section 2. The real property to be acquired under the authority of this Resolution (th
"Property") is located in the Central City North Redevelopment Project Area in the City of S
Bernardino, California, and is also known as 495 North "G" Street, San Bernardino, Californi
92410 (San Bernardino County Assessor Parcel Number 0134-101-28). The Property is mor
particularly described in the legal description attached as Exhibit "A." The interest in th
Property to be acquired consists of all of the fee simple absolute title interest in the Property, an
all of the right, title and interest of each person and owner of the Property including th
acquisition of each and every possessory interest and all rights to terminate any and allleasehol
estates in the Property in accordance with the lease terms thereof, and pursuant to either statuto
rights or pursuant to court order to terminate all such leasehold estates or other tenancies in th
Property, and all easements and appurtenances to the Property.
Section 3. On May 11, 2006, the Agency transmitted a notice of hearing to known
owner of record (Allied Capital Investments, LLC.) at 5661 Beach Boulevard #201, Buena
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Park, California 90621, and on May 15,2006 notice was published in the Sun newspaper, and a
copy of such notice of hearing is on file with the Agency.
Section 4. The Commission acknowledges receipt of the written reports and
information relating to the Central City North Redevelopment Project Area (the "Project
Area"), including the Staff Report and Agreement between the Agency and Developer
concerning the Plan, 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 June 5,
2006.
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Section 5. The Commission on behalf of the Agency finds and determines that the
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hearing conducted by the Commission on this matter on June 5,2006, 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 Plan, and the matters described in Code of Civil
Procedure Section 1240.030, and the acquisition of the Property, and all interests in it, by the
Commission for community redevelopment purposes by the exercise of eminent domain and
other relevant matters.
Section 6. The Commission declares its intent to acquire the Property for the Plan
and community redevelopment purposes in the name of the Agency in accordance with the laws
of the State of California including the Community Redevelopment Law and Health and Safety
Code Sections 33391 and 33492.40. The Commission further finds and determines that all of
the prerequisites to the exercise of eminent domain by the Agency with respect to such
acquisition of the Property for the Plan have been met.
Section 7. The Commission has found and determined that the acquisition of the
Property for the Plan is an activity, which is covered under a Mitigated Negative Declaration
adopted by the Community Development Commission on November 7, 2005 and a Notice of
Determination was filed with the Clerk of the County on November 10,2005.
Section 8. In accordance with the provisions of Code of Civil Procedure Section
1245.230, the Commission finds, determines, and declares as follows:
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(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 Project Area, which
are documented and described in more detail in the EIR and CEQA Initial Study dated October
I I, 2005, and to provide for the orderly redevelopment of the Property and other real property
included in the Project Area. The assembly and redevelopment of the Property is necessary as
the Project Area displays a number of conditions of blight, including without limitation
prevalence of absentee owners, high volume of code compliance cases, crime statistics
substantially higher than the City rate, the presence of old structures that show signs of
dilapidation and deterioration and small or substandard lot sizes within the 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.
For the period of January II through April II, 2006, the number of Part I Crimes within the
area of the Plan and Project were 91. For the period 2005, there were 436 Part I Crimes. For
the period 2004, there were 426 Part I Crimes. For the period of January II through April II,
2006, this equates to 312.69 Part I Crimes per 1,000 people. Part I Crimes include murder,
rape, assault, robbery, burglary, grand theft auto and other theft. Crimes such as drug
use/possession/sale, panhandling, prostitution, etc. are not included in the figures. Acquisition
and assembly of the Property for community redevelopment purposes for the Plan and the
Project, together with other lands already owned by the Agency in the Project Area, will foster
the elimination of blight and assist with the redevelopment of the Project Area, and assist with
elimination of blight in other lands in proximity to the Project Area. The Plan and the Project
include without limitation mixed income and mixed commercial and residential uses.
(b) The Plan and 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 Plan
and 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
4830-5504-1536.1
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under the burdens of economic obsolescence, small lot size, diverse ownership, absentee
owners, tenant occupancy, high crime and code compliance cases, property tax liens, and
inadequate public improvements.
(c) The Property described in this Resolution is necessary for the Plan and Project,
as its acquisition and reuse for the Plan and 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 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 acquiring the Property based upon the conditions contained within the offer. The
Commission is hereby requested to approve its acquisition of the Property for assembly for the
Plan and Project.
Section 9. (a) The law firm of Lewis Brisbois Bisgaard & Smith, LLP, as legal
counsel to the Agency ("Legal Counsel"), 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, may, in the discretion of
Agency Legal Counsel, accompany the filing of the complaint and may be deposited as follows:
(i) with the State of California in the manner provided by law, or upon the recommendation of
Agency 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 Legal Counsel to the Agency.
(c) Agency Counsel is also authorized, subject to the approval of the Executive
Director, to engage in settlement negotiations and, if possible, arrange for purchase of the
Property in lieu of condemnation at the appraised price prior to or subsequent to filing a
condemnation complaint to commence acquisition of the Property by eminent domain.
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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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028
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 LOCATED AT 495 NORTH "Goo STREET, SAN
BERNARDINO, CALIFORNIA (APN: 0134-101-28) IN THE CENTRAL
CITY NORTH REDEVELOPMENT PROJECT AREA
PASSED, APPROVED AND ADOPTED this _ day of
,2006.
I CERTIFY that the foregoing Resolution was duly adopted by the Community
Development Commission of the City of San Bernardino at its
meeting
held on
, 2006 by the following vote, to wit:
Commission Members:
Navs
Abstain
Absent
Aves
ESTRADA
BAXTER
MCGINNIS
DERRY
KELLEY
JOHNSON
MC CAMMACK
19
20
Secretary
21
day of
,2006.
The foregoing resolution is hereby approved this
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Patrick J. Morris, Chairperson
Community Development Commission
of the City of San Bernardino
25
Approved as to Form and Legal Content:
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~4~L
Agency Coun el
By:
4830-5504-1536.1
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EXHIBIT "A"
Legal Description
A PORTION OF LOT 5. BWCK 27. OF THE CITY OF SAN BERNARDINO, COUNTY OF SAN.
BERNJ\lU)WO, STATE OF CALIFORNU\., AS PER MAP RECORDED IN BOOK 7 OF MAPS, PAGE
1, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS:
COMMENCING AT THE NORTHWEST CORNER OF SAID LOT;
THENCE SOUTH 150 FEET;
THENCE EAST 120 FEET;
THENCE NORTH 150 FEET;
THENCE WEST 120 FEET TO TIlE POINT OF BEGINNING.
'.
** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): ~/5 J rk,
1~-- (
Vote: Ayes,.:J)-- lJJ Nays 7
Change to motion to amend original documents t&,
~ lfJ Resolution #
Abstain --eP
Companion Resolutions
CDt- fJOOro-l4>.
Absent :3 'f '/
Item #
NullNoid After: days /
Resolution # On Attachments: 0 Note on Resolution of attachment stored separately: 0
PUBLISH 0
RECORDW/COUNTY 0
By:
POST 0
Date Sent to Mayor: ~ D(p
Date of Mayor's Signature: 6..:.7 -D~
Date of Clerk/CDC Signature: lP \ n t n 10
Date Memo/Letter Sent for Signature:
I" Reminder Letter Sent:
Date Returned:
Znd Reminder Letter Sent:
Reso. Log Updated:
~
Seal Impressed:
Reso. # on Staff Report ~
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):
Copies Distributed to:
Animal Control 0 EDA 0
City Administrator 0 Facilities 0
City Attorney 0 Finance 0
Code Compliance 0 Fire Department 0
Development Services 0 Human Resources 0
Others:
Yes No By_
Yes No By_
Yes No By_
Yes No By_
Yes No By_
Information Services 0
Parks & Recreation 0
Police Department 0
Public Services 0
Water Department 0
Notes:~ +
J- () WiuJJJ 1\,
Ready to File: _
Date:
Revised IZ/18/03