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HomeMy WebLinkAboutR35-Economic Development Agency , , ECONOMIC DEVELOPMENT AGENCY ORIGINAL OF THE CITY OF SAN BERNARDINO FROM: Maggie Pacheco Executive Director SUBJECT: Hearing - Resolution of Public Interest and Necessity for Acquisition of Real Property: 696 West st. Street, San Bernardino, California DATE: July 17, 2006 .-..--------------------------------------.-------------------------------------------------------------------------------------------- Svnopsis of Previous Commission/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 4", 5", "G" and "H" Streets, the parcels on the north side of 5" Street between "G" and "H" Streets, the 4 parcels on the northeast comer of 5" and "G" Streets and 6 parcels on the south side of 5" Street between "G" and "F" Streets 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 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 of the Project. ----------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): Open/Close Hearing (Community 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 696 West 5" Street, San Bernardino, California (APN: 0134-061-21, 22, 25 and 30) in the Central City North Redevelopment Project Area. -.------------------------------------------------------------------------------------------------------------------------------------ Contact PersonCs): Maggie Pacheco Central City North Redevelopment Project Area Phone: (909) 663-1044 Project Area(s) Ward(s): 1 Supporting Data Attached: 0 Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letters Approx. FUNDING REQUIREMENTS Am t: 448,000 Source: Low/Mod Housing Bond Proceeds SIGNATURE: Budget Authority: 2005-2006 EDA Budj(et J;,~~~" ~/~/~ Bar ara Lindseth, Admin. Services Director -c~mDii;~i~_;;jc;;~~iTNot;;~---_=Ite-.:Sb-:--rT5G~(r"{;:::'2iO------------------------------------.------------- -,;-gi.7:-;9S-;:747i;----------------------------.--------------------.------------------------------------COMMISSIONMEETING-AGENDA--- P:\Aaelldu\Comm Dev Commlulon\CDC 2006\07-24-06 RelQlutloll OrNKessUy - 696 West 5tb Street FIlial SR.doe Meeting Date: 07 n4/2006 Agenda Item Number: R.35" e e e ECONOMIC DEVELOPMENT AGENCY STAFF REPORT HEARING - RESOLUTION OF PUBLIC INTEREST AND NECESSITY FOR ACQUISITION OF REAL PROPERTY: 696 West 5th Street, SAN BERNARDINO, CALIFORNIA BACKGROUND: On November 7, 2005, the Community Development Commission ("Commission") approved the Central City North Downtown Mixed Use Project Concept Plan ("Plan" or "Project") and the Redevelopment Project Study and Exclusive Right to Negotiate Agreement ("Agreement") with Watson & Associates Development Co., Inc. ("Developer"). Through the Plan and the CEQA compliance that was undertaken as part of the Plan approval on November 7, 2005, 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" Street and "G" Street, 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 but excluding the new TELACU II Monte Vista Senior Housing Complex. 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 a unified 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. 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 , 5 additional parcels are in escrow or pending escrow and 16 parcels remain to be acquired. An appraisal of the Property was obtained. On May 4, 2006 the Agency sent a purchase offer ("Offer") to to Bruce Ko, Christopher Ko and Henry Ko ("Property Owners") to purchase the property located at 696 West 5th Street, San Bernardino, California (APN: 0134-061-22,22,25 and 30) (the "Property") based on the appraisal value. . The Offer was mailed to the address on file with the office of the County Tax Assessor as shown on the last equalized county assessment roll, and the owners of record, Bruce Ko, Christopher Ko and Henry Ko, received the Offer. In the Offer, the Property Owners were requested to convey free and clear title. The Property Owners responded that they need additional time to determine if the purchase price is the fair market value and additional time to consider whether they will propose participating in the Project in lieu of condemnation. The Property Owners, through their legal counsel, have met with Agency Staff and legal counsel regarding owner participation. The Property Owners have not accepted or -';8i7~198j:7473~i---------------------------------------------------------------------------------------COMMISSION MEETING AGENDA P:\Azendls\Comm Dev Commlssloll\CDC 1:006\07-1:4.06 Resolution orNceeulty. 696 West 5th Slnel Flnll SR.doc Meeting Date: 07/24/2006 Agenda Item Nnmber: /{,3$' Economic Development Agency Staff Report Bruce Ko, et al CCN Property Acquisition-APN: 0134-061-21, 22, 25 and 30 Page 2 _ rejected the Agency Offer. If the Commission decides to go forward with the Resolution, the Owners can still continue discussing owner participation. However, if the Commission does not go forward with the Resolution of Necessity pending owner participation discussions, and the discussions fail, the Commission would be behind schedule which could delay the proposed project. The Property is improved by a masonry structure built in approximately 1956. The Property had a restaurant that has been vacant for about (10) years. The structure is dilapidated, in disrepair, boarded up and is another example of blight within the Study Area and an impediment to the economic rebirth of the Study Area. CURRENT ISSUES: Therefore, in conformance with the Code of Civil Procedure Section 1245.235, on July 5, 2006, a notice of the July 24, 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 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: _1. _ The public interest and necessity require the acquisition of the Property: The Agency has adopted a Project Plan that includes this Property together with an agreement to assemble land for eventual redevelopment in accordance with said Plan. The proposed Project is a unified mixed-use development that will include portions of the Property. The proposal is to have retail on the bottom level and owner-occupied housing on the second and third levels including some affordable housing units within the Project. During the past year, the Agency has acquired six (6) parcels of land, 5 additional parcels are in escrow or pending escrow and 16 parcels remain to be acquired within the vicinity of the Property. The Agency finds it appropriate to continue the program ofland 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: 5th Street has had a problem with crime and blight, particularly near the 1-215 freeway. 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. Redevelopment of the Property will provide needed residential and retail development and assist with elimination of blight in other areas in proximity to the Project. 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 substandard and inadequate lot size. The Project will also facilitate land assembly and reuse of 4817-1981-7473.1 COMMISSION MEETING AGENDA Meeting Date: 07/24/2006 Agenda Item Nnmber: R..J5" P:\AICRW\COn:lIU Dev Commlssion\CDC 1006\07-24-06 ResollltlOA ofNece.uity - 696 West Sth Street Final SR.doc Economic Development Agency Staff Report Bruce Ko, et al CCN Property Acquisition-APN: 0134-061-21, 22, 25 and 30 Page 3 e a developed urban area that has stagnated in recent years under the burdens of small lot size, diverse ownership, abandoned properties, absentee owners, high crime and code compliance cases. The Agency has seen some success in its increased effort to address blight in this area, although there is still much work to do. Part 1 Crimes for this area in 2004 were 426 and 436 in 2005. The number decreased dramatically to 91 from January 11 to April 11, 2006. This Project will increase attractive affordable housing. This creates a sense of pride and increases the public's effort to keep their neighborhood safe and secure. This Project will further the positive impact started by TELACU and the new Holiday hm Express in the in the Central City North Redevelopment Project Area. The Project will also confer substantial enviromnental benefits upon the Project Area and the community generally, in accordance with the General Plan of the City of San Bernardino. The Redevelopment Plan was amended on September 7, 2004 by adoption of an amendment to reinstate the power of condemnation together with an Enviromnental Impact Report ("EIR") that was duly certified at that time. 3. The subiect Property is necessary for the Proiect: The Agency previously acquired several 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. This particular Property is located within the proposed development. The Project cannot be built around the subject Property. The Property is an abandoned, boarded up, vacant building which tends to attract a criminal element. Allowing the Property to remain in its blighted condition would shortchange and tamish the proposed Project. It would also create a situation where the Developer would either abandon the proposed Project (thereby hurting the City residents) or demand increased concessions. If the Commission approves the Resolution of Necessity, the Agency is still able to work with the owner in the owner participation process if the Property Owners desire. e 4. The Government Code & 7267.2(a) offers have been made to the record Property Owner: On May 4,2006 the Agency submitted a formal acquisition offer to the Property Owners of the subject Property. The offer complies with Govermnent Code 9 7267.2. To date, the Property Owners have not accepted the Agency Offer nor provided a counter offer. ENVIRONMENTAL IMP ACT: On or about September 7, 2004, the Community Development Commission considered and certified Enviromnental Impact Report SCH#2003031072 (the "EIR") in accordance with the California Enviromnental Quality Act ("CEQA") for the Project Area which addresses reinstating the Agency's power of conderrmation and the acquisition of Property contemplated within the Plan and for the Project is consistent with the EIR for the Project Area. 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. e The statute of limitations applicable to challenges that a public entity approved a project without making a proper CEQA determination is 35 days from the date of the filing by the public agency of the 48i7-1981-7473~1------------ ---------COMMISSION MEETING AGENDA P:\Accndas\COUlm Dcv Commlssion\CDC 1006\07-1+06 ResolutlDn of Necessity _ 696 West 5th Street Flnll sadoc Meeting Date: 07/24/2006 Agenda Item Number: f(3S" Economic Development Agency Staff Report Bruce Ko, et at CCN Property Acquisition-APN: 0134-061-21, 22, 25 and 30 Page 4 e notice or if there is no notice or formal decision, 180 days from the date of the public agency's decision to carry out or approve the project. The time has expired to challenge CEQA compliance. FISCAL IMPACT: Based on the appraisal, the appraised value of the subject Property is $320,000 plus court costs and legal expenses normally associated with condemnation proceedings for an approximate total of $448,000. RECOMMENDATION: That the Community Development Commission adopt the attached Resolution. Maggie Pacheco, Ex cutive Director e e 4817-1981-7473.1 -------- --------- COMMISSION MEETING AGENDA P:\Aleadu\COllua Dn CommlsAoa\CDC 1006\07-14-06 Reaoludon of Necessity - 696 West 5th Street FInal SadIe Meeting Date: 07/24/2006 Agenda Item Number: R.JS' e: e5 .8 RESOLUTION NO. 3 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 696 WEST 5TH STREET, SAN BERNARDINO, CALIFORNIA (APN: 0134-061-21,22,25 and 30) IN THE CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA 4 5 6 7 8 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency"), public entity created pursuant to the Community Redevelopment Law (Health and Safety Cod Section 33000, et seq.), is authorized to acquire and redevelop blighted properties located in th City of San Bernardino (the "City"), in accordance with the Community Redevelopment Law' and 9 10 11 12 13 14 WHEREAS, the Community Development Commission of the City of San Bernardin (the "Commission"), as the governing board of the Agency, has authorized the Agency t assemble and acquire real property for community redevelopment purposes in the Central Cit North Redevelopment Project Area ("Project Area"); and WHEREAS, the Project Area displays substantial and pervasive symptoms of blight tha cannot be remedied by private parties acting alone without community redevelopment assistance' 16 17 18 19 20 and 21 WHEREAS, the Agency has acquired other real property in the Project Area; and WHEREAS, on March 11,2005, the Agency mailed a notice to the owners of record 0 the real property located within the Project Area as described and informed such persons that th Agency intended to appraise the property for possible acquisition; and WHEREAS, the Agency retained the services of an appraiser to appraise the property an the appraiser has reported an opinion of the fair market value of the improved property located a 22 23 24 25 26 27 696 West 5th Street, San Bernardino, CA 92410 (APN: 0134-061-21, 22, 25 and 30) (th "Property"); and 4830-5504-1536.1 1 P:\Agendas\Resolutions\Resolutions\2006\07-24-{)6 Bruce Ko, et al- CCN 696 West Sth Street CDC RclO.doc e: e5 .8 3 WHEREAS, the Property is improved with a restaurant that has been vacant for abou (10) years and is dilapidated, in disrepair and is another example of blight within the Projec Area that is an impediment to the economic rebirth of the Project Area; and WHEREAS, based upon such real property appraisal report, the Commission authorize the Agency to send a purchase offer and summary statement of valuation in conformity wit 4 5 6 Government Code Section 9 7626.2(b) to the owners of record, to attempt to purchase th Property at the appraised value in lieu of condemnation, and on May 4, 2006, the Agency maile 7 8 a purchase offer and summary statement of valuation in conformity with Government Cod 9 10 Section 9 7267 .2(b) to the owners of record of the Property based on the appraised value of th Property described in this Resolution; and WHEREAS, the Agency transmitted the offer to purchase the Property situated within th Project Area, based on the appraised value on May 4, 2006, to the owners of record of th Property at the address on file with the office of the County Tax Assessor, as shown on the las equalized county assessment roll and the owners of record, Bruce Ko, Christopher Ko and He Ko (the "Property Owners"), received the Agency's offer; and WHEREAS, the Property Owners have not accepted the Agency Offer, requeste additional time in order to accept the Agency Offer or provide a counter offer and requested t be involved in the owner participation process; and WHEREAS, the Property Owners, through their legal counsel, have been involved i discussions with the Agency and its legal counsel regarding owner participation; and WHEREAS, thirty (30) days have passed since the Property Owners request fo additional time and the Property Owners have not provided further information regarding th 11 12 13 14 16 17 18 19 20 21 22 23 24 purchase price or valuation; and 25 WHEREAS, the Agency has not been able to satisfactorily complete a negotiate purchase with the owners of record of the Property to acquire the Property for communit redevelopment purposes; and 26 27 4830-5504-1536.1 2 P:\Agendas\Re501utions\RcsolutioDs\2006\07.Z4-06 Bruu KG. cl al- CCN 696 West 5th S1Jtct CDe Rcso.doc:: e: e5 WHEREAS, the Agency has not been able to come to an agreement with the Propert Owners about owner participation; and 3 4 WHEREAS, the Commission has served as the "lead agency" as defined in the Californi Environmental Quality Act ("CEQA") for the purpose of conducting an environmental review i 5 connection with the acquisition ofthe Property; and 6 WHEREAS, on November 7, 2005, the Commission adopted Resolution No.CDC/2005 39 approving a Redevelopment Study Agreement and Exclusive Right to Negotiate (th "Agreement") by and between the Agency and Watson and Associates Development Company Inc. (the "Developer"), and adopted the Mitigated Negative Declaration for the Downto Mixed Use Project Plan (the "Plan") and for the Project (the "Project") described in more detai in the CEQA Initial Study dated October 11,2005; and 7 8 9 10 11 12 13 WHEREAS, on or about September 7, 2004, the Agency considered and certifie 14 Environmental Impact Report SCH#20030310n (the "EIR") in accordance with the CEQA fo the Project Area, and the acquisition of property contemplated within the Plan and for the Projec 16 is consistent with the EIR; and 17 WHEREAS, the Property Owners never made a CEQA challenge and the time h 18 expired to do so; and 19 WHEREAS, Part I Crimes within the area of the Plan and Project were reported as 91 incidents of crime for the period January II through April 11, 2006; and 436 for 2005 and 42 for 2004; and 20 21 22 WHEREAS, the Agreement contemplates the Agency acquiring or obtaining control 0 parcels necessary for the Plan either through purchase negotiations or alternatively, by eminen 23 24 domain proceeding, if necessary; and 25 WHEREAS, on July 5, 2006, notice of intent to adopt this Resolution was mailed to th owners of record of the Property, Bruce Ko, Christopher Ko and Henry Ko, at the address 0 record on file at the office of the County Tax Collector and at the last known address for th 26 27 ~8 _ owners of the Property; and 4830-5504-1536.1 3 P:\Ageudas\ResoluIWWI\Rcsolutions\2006\07-24-06 Bruce 1<0. et aI. CCN 696 Wesl 5th Street CDC Reso.doc e: e5 3 WHEREAS, on July 24, 2006, after not less than fifteen (15) days written notice to th Property Owners of the Property, the Commission conducted a hearing for the purpose 0 affording the owners of the Property a reasonable opportunity to appear and be heard on th matters referred to in Code of Civil Procedure Section 1240.030 and whether the Agency has me all other prerequisites for the exercise of eminent domain to acquire the Property for the Plan an community redevelopment purposes; and 4 5 6 7 WHEREAS, the Commission has determined as a result of such hearing on July 24 2006, that the public health, safety and welfare require the Agency to acquire the subjec Property for community redevelopment purposes and to facilitate the Project. 8 9 10 11 NOW THEREFORE, BE IT RESOLVED THAT THE COMMISSION FINDS DETERMINES AND DECLARES AS FOLLOWS: 12 13 Section 1. The information set forth in the above recitals of this Resolution is tru 14 and correct. Section 2. The real property to be acquired under the authority of this Resolution i 16 located in the Project Area in the City of San Bernardino, California, and is also known as 69 West 5th Street, San Bernardino, California 92410 (San Bernardino County Assessor Parce Number 0134-061-21, 22, 25 and 30). The Property is more particularly described in the lega 17 18 19 description attached as Exhibit "A." The interest in the Property to be acquired consists of all 0 the fee simple absolute title interest in the Property, and all of the right, title and interest of eac person and owners of the Property including the acquisition of each and every possessory interes and all easements and appurtenances to the Property. 20 21 22 23 On July 5,2006, the Agency transmitted a notice of hearing to the kno Section 3. 24 owners of record (Bruce Ko, Christopher Ko and Henry Ko) at 795 West 5th Street, S Bernardino, California 92410. 25 26 The Commission acknowledges receipt of the written reports an Section 4. 27 information relating to the Project Area, including the Staff Report and Agreement between th _s . Agency and Developer concerning the Plan, and the appraisal of the Property, staff reports, and 4830-5504-1536.1 4 P:\Agcndas\Resolutions\Resolulions\2006\07-24--06 Bruce KG. ctal- CCN 696 West Sth Street CDC Reso.doc e: e5 oral reports and information submitted to the Commission during the course of the hearin 3 conducted on July 24, 2006. 4 Section 5. The Commission on behalf of the Agency finds and determines that th 5 hearing conducted by the Commission on this matter on July 24, 2006, was full and fair, and tha each interested person has been afforded a full and fair opportunity to present evidence an testimony relating to assembly of land for the Plan, and the matters described in Code of Civi Procedure Section 1240.030, and the acquisition of the Property, and all interests in it, by th Commission for community redevelopment purposes by the exercise of eminent domain an other relevant matters. 6 7 8 9 10 11 12 Section 6. The Commission declares its intent to acquire the Property for the PI 13 and in furtherance of community redevelopment purposes in the name of the Agency i accordance with the laws of the State of California including the Community Redevelopmen Law and Health and Safety Code Sections 33391 and 33492.40. The Commission further find 14 16 and determines that all of the prerequisites to the exercise of eminent domain by the Agency wi respect to such acquisition of the Property for the Plan have been met. 17 18 Section 7. The Commission has found and determined that the acquisition of th 19 Property for the Plan is an activity, which is covered under a Mitigated Negative Declaratio adopted by the Commission on November 7, 2005 and a Notice of Determination was filed wi the Clerk of the County on November 10, 2005. 20 21 22 In accordance with the provisions of Code of Civil Procedure Sectio Section 8. 23 1245.230, the Commission finds, determines, and declares as follows: 24 (a) The public interest, convenience and necessity require the acquisition 25 Property for the Project, as necessary to alleviate conditions of blight in the Project Area, whic 26 are documented and described in more detail in the 2004 EIR and CEQA Initial Study date 27 October 11, 2005, which Initial Study and Mitigated Negative Declaration was approved 0 _8 ., November 7, 2005, and to provide for the orderly redevelopment of the Property and other rea 4830-5504-1536.1 5 P;\Allendas\Resolutions\Resolutions\2006\07-24-06 Bruce Ko, et al- CCN 696 Wesl 5th Street COC Reso.doc e: e5 _8 3 property included in the Project Area. The assembly and redevelopment of the Property i necessary as the Project Area displays a number of conditions of blight, including withou limitation prevalence of absentee owners, high volume of code compliance cases, crime statistic substantially higher than the City rate, the presence of old structures that show signs 0 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 0 substantially hinder the economically viable use of such real property in its present condition. For the period of January 11 through April 11, 2006, the number of Part I Crimes within the are of the Plan and Project were 91. For the period 2005, there were 436 Part I Crimes. For th period 2004, there were 426 Part I Crimes. For the period of January 11 through April 11, 2006 this equates to 312.69 Part I Crimes per 1,000 people. Part I Crimes include murder, rape 4 5 6 7 8 9 10 11 12 13 assault, robbery, burglary, grand theft auto and other theft. Crimes such as dru 14 use/possession/sale, panhandling, prostitution, etc., are not included in the figures. Acquisitio and assembly of the Property for community redevelopment purposes, the Plan and the Project together with other lands already owned by the Agency in the Project Area, will foster th elimination of blight and assist with the redevelopment of the Project Area, and assist wi elimination of blight in other lands in proximity to the Project Area. The Plan and the Projec include without limitation mixed income and mixed commercial and residential uses. 16 17 18 19 20 The Plan and the Project are planned or located in the manner that will be mos (b) 21 compatible with the greatest public good and the least private injury in light of the fact that th real property included in the Project Area displays a number of symptoms of blight. The PI and Project shall also facilitate the completion of a land assembly program previously initiate by the Agency and foster the reuse of a developed urban area that has stagnated in recent year 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 inadequat 22 23 24 25 26 27 public improvements. 4830-5504-1536.1 6 P:\Agendu\R.csolultoos\Rcsolutions\2006\07-24-06 Bruce Ko, et ai- CCN 696 Wesl 5th Street CDC Rcso.doc e: e5 3 (c) The Property described in this Resolution is necessary for the Plan and th Project, as its acquisition and reuse for the Plan and the Project is part of a neighborhood plan t eliminate blight and provide for the redevelopment and improvement of the other lands owne by the Agency within the Project Area. (d) The purchase offer required by Govemment Code Section 7267.2 has been maile to the owners of record of the Property by the Agency, and the Agency has not been successfu in acquiring the Property based upon the conditions contained within the offer. The Commissio 4 5 6 7 8 deems it appropriate and necessary to approve the Agency acquisition of the Property fo assembly for the Plan and the Project. 9 10 Section 9. (a) The law firm of Lewis Brisbois Bisgaard & Smith, LLP, as leg 11 12 counsel to the Agency ("Agency Counsel"), is authorized and directed to prepare, institute an prosecute in the name of the Agency such proceedings in the court having jurisdiction, as may b necessary for the acquisition of the Property. 13 14 (b) The sum payable by the Agency as probable compensation for the acquisition 0 16 the Property by eminent domain, as determined by the appraisal, may, in the discretion 0 Agency 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 0 Agency Counsel to the County Treasury; or (ii) at the election of the person(s) who may claim interest in the Property to be acquired by such condemnation proceedings, in such other manne as such interested person(s) may request in writing, subject to the approval of the Executiv Director and Agency Counsel. 17 18 19 20 21 22 23 Agency Counsel is also authorized, subject to the approval of the Executiv (c) 24 Director, to engage in settlement negotiations and, if possible, arrange for purchase of th Property in lieu of condemnation at the appraisal price prior to or subsequent to condemnation complaint to commence acquisition of the Property by eminent domain. Section 10. The Secretary of the Commission is authorized and directed to certify the 25 26 27 ar ., adoption of this Resolution. This Resolution shall take affect upon adoption. 4830-5504-1536.1 7 P:\Agcndas\Rcsolutions\RcsoluUons\2006\07-24-06 Bruce Ko. et a). CCN 696 West :Sib SUCCI CDC &no.doc e: e5 _8 3 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 696 WEST 5TH STREET, SAN BERNARDINO, CALIFORNIA (APN: 0134-061-21,22,25 and 30) IN THE CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA 4 5 6 ,2006. PASSED, APPROVED AND ADOPTED this _ day of 7 8 I CERTIFY that the foregoing Resolution was duly adopted by the Community 9 Development Commission of the City of San Bernardino at its meeting 10 held on , 2006 by the following vote, to wit: 11 Commission Members: Aves Navs Abstain Absent 12 ESTRADA BAXTER MCGINNIS DERRY KELLEY JOHNSON MC CAMMACK 13 14 16 17 18 19 20 Secretary 21 ,2006. day of The foregoing resolution is hereby approved this 22 23 24 Patrick J. Morris, Chairperson Community Development Commission of the City of San Bernardino 25 26 Approved as to Form and Legal Content: 27 ~~ Agency COUll el By: 4.30-5504-1536.1 8 P:\Agendas\Resolutions\R.esolmions\2006\07.24-06 Bnace KG, et II. CCN 696 WC$t Sth Street CDC Rcso.doc e e e EXHIBIT "A" THAT PORTION OF LOT 2, BLOCK 38, CITY OF SAN BERNARDINO, IN THE COUNTY OF SAN BERNARDINO, AS PER.PLAT RECORDED IN BOOK 7 OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS, PARCEL NO.1, COMMENCING AT A POINT 139 FEET WEST OF THE SOUTHEAST CORNER OF SAID LOT 2; THENCE RUNNING WEST 41 1/2 FEET; THENCE NORTH 150 FEET TO THE NORTH LINE OF SAID LOT 2; THENCE EAST 41 1/2 FEET; THENCE SOUTH 150 FEET TO THE POINT OF BEGINNING. PARCEL 2, BEGINNING 180 1/2 FEET WEST OF THE SOUTHEAST CORNER OF SAID LOT 2; THENCE NORTH TO THE NORTH LINE OF SAID LOT; THENCE WEST 39 FEET; THENCE SOUTH TO THE SOUTH LINE OF SAID LOT; THENCE EAST 39 FEET TO THE POINT OF BEGINNING. PARCEL 3, BEGINNING AT A POINT 219 1/2 FEET WEST OF THE SOUTHEAST CORNER OF SAID LOT 2; THENCE NORTH 100 FEET; THENCE WEST 39 FEET, MORE OR LESS, TO A POINT 42 FEET EAST OF THE WEST LINE OF SAID LOT; THENCE SOUTH 100 FEET TO THE SOUTH LINE OF SAID LOT; THENCE EAST 39 FEET TO THE POINT OF BEGINNING. PARCEL 4, COMMENCING AT THE SOUTHWEST CORNER OF SAID LOT 2; THENCE NORTH ALONG THE WEST LINE OF SAID LOT, 100 FEET; THENCE EAST 42 FEET; THENCE SOUTH AND PARALLEL WITH THE WEST LINE OF SAID LOT 2 A DISTANCE OF 100 FEET, TO THE SOUTH LINE OF SAID LOT; THENCE WEST ALONG THE SOUTH LINE TO THE POINT OF BEGINNING. PARCEL 5, COMMENCING AT THE NORTHWEST CORNER OF SAID LOT 2; THENCE RUNNING SOUTH ALONG "G" STREET, 50 FEET TO A POINT 100 FEET NORTH OF THE SOUTHWEST CORNER OF SAID LOT 2; THENCE EAST 81 FEET, MORE OR LESS, TO A POINT 219 1/2 FEET WEST OF THE EAST LINE OF SAID LOT; THENCE NORTH TO THE NORTH LINE OF SAID LOT; THENCE WEST ALONG THE NORTH LINE OF SAID LOT TO PLACE OF BEGINNING. " . ** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT ** RESOLUTION AGENDA ITEM TRACKING FORM MeetingDate(DateAdoPted):I\'n\\~~ Item # 'R.?>5' Resolution # CDCjC)..OD6.:.?J b \ \\ ~ {~ Vote: Ayes I",:{ )../ LL 5, "" ~ Nays ----=1.-- Abstain C':l.. Absent D... Change to motion to amend original documents 0 Companion Resolutions Null/Void After: 10 /k days/ Resolution # On Attachments: 0 Note on Resolution of attachment stored separately: 0 PUBLISH 0 POST 0 RECORD W/COUNTY 0 By: Date Sent to Mayor: Date of Mayor's Signature: Date of Clerk/CDC Signature: Reso. Log Updated: ~ Seal Impressed: 0 Reso, # on Staff Report ~ Date Memo/Letter Sent for Signature: I" Reminder Letter Sent: J/A Date Returned: Not Returned: 0 2nd Reminder Letter Sent: 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): YesL No By_ Yes No~ By_ Yes No / By_ Yes NoL By_ Yes No V By_ 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: Notes: Information Services 0 Parks & Recreation 0 Police Department 0 Public Services 0 Water Department 0 Ready to File: _ Date: Revised 12/18/03 I. _,0'"'."' Bruce Ko 795 West 5th Street San Bernardino CA 92410-3101 July 15, 2006 '" 17 '" II: -::'u" ,-,;, -- - :J Executive Director Maggie Pacheco Economic Development Agency City of San Bernardino 201 North E Street, Suite 301 San Bernardino CA 92401-1507 RE: Notice of Intention to adopt Resolution of Public Interest and Necessity for Acquisition of Real Property Property is located at the north east comer of 5th and "G" Streets, San Bernardino, CA (APN: 0134-06121,22,25 and 30) Central City North Redevelopment Project Area (the "Property") Dear Executive Director Pacheco: This letter is in response to your letter dated July 6, 2006, regarding the Agency's intention to have a hearing on July 24th to seek a Resolution of Necessity. We hereby request to appear and be heard. On March 9, 2005, we have submitted a Statement of Interest to Participate and requested more redevelopment plan information so we can maximize our efforts by working with the Agency. A copy is attached for your reference. Between March 2005 and July 2006, several phone calls and letters were directed to the Agency, expressing our interest to participate and repeatedly requesting conceptual, draft, work-in-progress or final Agency's plan for the Property. On July 10,2006, we had a conversation with Agency's Project Manager Mike Trout and Agency's legal representative, Lee Amidon of Lewis Brisbois Bisgaard & Smith LLP. On that day, we learned for the first time that Agency had approved a conceptual plan in November 2005. Not until July 12, 2006, we finally received a page of the conceptual plan that was enclosed with Lee Amidon's letter, dated July 7,2006. Upon receipt of the conceptual plan, we immediately bring an experienced planner, Rick Gomez, AICP, to our team We understand Agency and owner will enter into an Owner Participation Agreement (OPA); therefore, we also retained Joseph AkIufi of Aklufi & Wysocki to work cooperatively on the OPA with Lee Amidon. We have met with the Agency on July 14, and we are scheduled a follow up meeting on July 19 to discuss how to develop our property to be compatible with the Agency's conceptual plan. As you can see, we were and continue are very interested to participate with the Agency. Once received the requested conceptual plan, we have moved quickly; however, it may be difficult to have everything considered and discussed before July 24th. Therefore, we request postponing the hearing. If the July 24th hearing for a Resolution of Necessity to acquire our Property by eminent domain cannot be postponed, then please consider this letter as our objections to the proposed Resolution. Please consider the following: We were invited to participate. As stated in the Agency's letter, dated February 11, 2005, "The purpose of this Notice...is to invite you to participate in the redevelopment of your Property with the Agency in accordance with the Redevelopment Plan for the Project Area." We have expressed our interest to participate and request to be included in ail of your communications and meetings more than 16 months ago. However, we were never contacted while the conceptual plan being developed. Were there any workshops or solicitation of inputs from participants? Or was the conceptual plan developed without any inputs from the invited participants? 1t 15 S- 7-.}.'f -() h Our Property, a restaurant site, is consistent with the City's current land use. Same letter stated "Your Statement of Interest to Participate... will assist Agency Staff in completing a preliminary evaluation of a plan to develop a project consistent with the City's current land use designation of CR- 2.., which permits a diversity of regional serving uses, including but not limited to restaurants, entertainment, supporting retail, residential and mixed uses." There are constant interests to lease/buy our Property. However, in the past, it is difficult to fully utilize our Property because there are undesirable elements in the surrounding area. Thanks to Agency's efforts, we believe once the . redevelopment plan is fully implemented and the area has adequate community supports, the undesirable elements will be removed, and we will again fully utilize our Property, Not acquiring our Property will not be detrimental to the redevelopment plan. Our Property (an approximately 6,000 square-foot building on an approximately 24,000 square-foot lot), located on the northeast corner of 5th and G Streets, is not physicaIly connected to the rest of the project, Unlike other parcels within the project area, which are abutting each other and may require Agency to assemble them into larger parcels for master development, our Property does not have adjacent parcels that are required in the current conceptual plan; thus, there is no need for Agency to acquire and assemble our Property. Acquiring our Property is not necessary. As stated in our letters, we are very interest to participate, and we are assembling a team to work cooperatively with the Agency. As the owners, we have a lot at stakes; thus, we will work even harder to make the project a success. Therefore, there is no need to acquire our Property and prevent owners from participation. We request to postpone the hearing or permanently withdraw the Resolution. We look forward to work with the Agency on this important projecL Please contact us at (909) 885-4481 if you have any questions. Thank you in advance of your timely assistance. Sincerely yours, ~~ Owner Enclosures: Statement of Interest to Participate Economic Development Agency letter, dated February 11, 2oo? Agency's Conceptual plan received July 12, 2006 " c: Patrick J. Morris, Mayor Esther Estrada, Councilwoman Dennis J. Baxter, Councilman Gordon McGinnis, Councilman Neil Derry, Councilman Chas A. Kelley, Councilman Rikke Van Johnson, Councilman Wendy McCarnmack, Councilwoman Mike Trout, Project Manager Lee Amidon, Lewis Brisbois Bisgaard & Smith LLP Joseph AkIufi, Aklufi & Wysocki Attorneys At Law k-, rI) E> ~J ..:. !fJ~ .:,' .~ .", - G.' ~ a. - c: L&.J '.-- .c . ,..g "'- .."" w:a u= cO; Ua:l ~= ~'" ~<J) u_ ,..Q - ,.. .-- U.- U HECENED g( nEDt'JtLOPME~\1 A(;tNC'\' REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 1ffl5 tlA~<tJ2Y NORTH REDEVELOPMENT PROmer AREA ("Project Area") STATEMENT OF INTEREST TO PARTICIPATE CITY OF sm~!!~Y\~s my interest in participating in the Project Area and submit the following information: . 1. Name d3R1.<CE ko Phone ~ 00$- tl4F31 2. HomeAddress '7qt; W ~H sT ,54,,] ,R.;::;f?NA-RDlrJ~, ('--<4 92.~lol 3. Name of Business ~~GE5 3)MORGA~Ro~ 4~ Address of Business 696 W STff ST. SAAi ."R.Ef:JJI'Ji:OrtJo. 0\ q2 VI iJ 5. My present involvement in the Project Area is: I own (Xl; am a Tenant L.J; and wish to rehabilitate lc;.j; built C2CJ; sell ( X.) my present property. If Tenant, indicate: month-to-month L.J; lease L.J; expiration date of lease: . Options extend lease to' . If lease includes an option to purchase, so indicate Comments: 7/IUE ARE Io1Mr f'oTEIITr41.- IIJVESWeS wHO AU INTEE:ESTE1> TIlls "~fE,eTr. 6, I am interested in participating: As a Property Owner >< . As a Tenant 7. My present type of business is: RESTAl.IfWJ1 8. If I participate: I would like to continue at the same location X I would like to change my present location I would like to acquire real property for expansion (indicate approximate requirements) Page 1 of2 P:\Forms\Development\Statement of Interesldoc 9. Background, experience, and information concerning your proposal (you may include further information on this page or attach additional sheets if you desire to do so.): (a) Generally describe background and experience: 1'/ ~ HAVE D f'e..V,7lOp.. ~A<<AAIJ'" !=OR. '7 yeAR..:' 0"; RoUTe. bh (b) Describe the activities you propose and indicate your experience relevant to your proposal: WE PL.6JJ TO ltE/JoVAT.o THE. M411'&e.7Y 7(7 A HIIOH -ErJP ~STAURAN'r TJ-IAT IS CCMPA7il'<JF' WffH'T1IE.. IQ:~EV&LDr""A1T PlAN ANi> f4JI[T'E 156 SCEAE. (c) Enclose a business plan or construction and operating pro forma relative to your proposal which will be considered and evaluated with your statement of interest. REMARKS We Ap.,:E. VEf..Y /Al,=""<TEI> "TO ,.Tall,) THJ;; ~t11=.VcI1JPMENT ~tq.s. F'/.CA~E: /'1:oVI/>'E /oA.tJRE sf'ECtrtC I'II!IoI (#F(JN.IATf(}A/ SQ l(/I; CW MAKIMIZE OUIt iEFfCR:fs. Tflq-E.lffB? fLEA~'E 11/CB<Pi: U$ IN AI{; or t{1(/i' CPW/,IfIfNtUlTrpll/.> , ANP MiJiT/IJ6;s. TH1'rtIfcS I understand that submission of this Statement of Interest does not in any way obligate me to participate in the Project. Area. Siined: .>~~ PrintNamf: ..B~LC..i=-' ~Q - , Title (if applicable): f/Jcr rJC-f?. Date: /VIA et:H rJ. 2a?5 , Page 2 of2 p:\Forms\Development\Statement of Interestdoc City of San Bernardino ECONOMIC DEVELOPMENT AGENCY Redevelopment. Community Development. Housing. Business: Rectuitr'nent, Retention. Revitalization. MaIn Street, Inc. February 11, 2005 Christopher and Henry Ko 795 West 5th Street San Bernardino, CA 92410 RE: Notice to Property Owners, Businesses, and Tenants Requesting Submission of Statement of Interest to Participate in Redevelopment (Central City North Redevelopment Project Area of the City of San Bernardino) APN: 0134-061-21 and 0134-061-25 Site Address: 696 West 5th Streeet, San Bernardino, CA 92410 Dear Christopher and Henry Ko: I am writing to you on behalf of the Redevelopment Agency of the City of San Bernardino (the "Agency") because you own property or are a business owner or tenant (referenced by Assessor's Parcel Number 0134-061-21 and 0134-061-25) in San Bernardino, California (the "Property"). Your Property is situated within the Central City North Redevelopment Project Area (the "Project Area") established by the City of San Bernardino (the "City'') on August 6, 1973, and as subsequently amended thereafter, A vicinity map of the Project Area is enclosed. The purpose of this Notice to Property Owners, Businesses, and Tenants (the "Notice") is to invite you to participate in the redevelopment of your Property with the Agency in accordance with the Redevelopment Plan for the Project Area. The Agency is presently reviewing a plan for the redevelopment and reuse of land generally located between the 1-215 Freeway and the east side of "F" Street and 4th Street and the north side of 5th Street in Downtown San Bernardino (the "Site"), which could include the acquisition of your Property for redevelopment purposes, and for this reason this Notice is being sent to you. Please bear in mind that at the current time the Agency has no specific plan to acquire your Property or any other lands around the Site. However, a first step in the process that could result in the acquisition of your Property for the Site provides for the Agency to give you this Notice. As part of the formation of the Project Area, the Agency approved a program for guiding interested property owners, businesses, and tenants in evaluating various redevelopment opportunities. This program is described in the "Rules for Re-Entry Preferences for Owners, Businesses, and Tenants into the Central City North Redevelopment Project" (the "Rules"). A copy of the Rules is enclosed with this Notice. 201 North E Stree~ Suite 301' San Bernardino, Catl10mie 92401-1507' (909) 663.1044' Fax (909) 888-9413 www.sanbemardino-eda.org. Notice to Property Owners, Businesses and Tenants February 11,2005 Page 2 Under the Rules, Tenants of the Property are encouraged to participate in the redevelopment process. If you are interested in participating, you must file with the Agency within 30 calendar days of receiving this Notice, a "Statement of Interest to Participate" in the Project Area, specifically within the location of the Site. Your Statement of Interest to Participate (along with statements submitted by other property owners at the Site) will assist Agency Staff in completing a preliminary evaluation of a plan to develop a project consistent with the City's current land use designation of CR-2 (Commercial Regional-Downtown District) which permits a diversity of regional serving uses, including but not limited to, restaurants, entertainment, supporting retail, residential and mixed uses, A Statement of Interest to Participate form is included with this Notice for your use. If you have any questions regarding this Notice, or your completion and return of the Statement of Interest to Participate, please feel free to contact Maggie Pacheco, Deputy Director or Mike Trout, Project Manager at (909) 663-1044. Please send your completed Statement of Interest to Participate within 30 calendar days (deadline, March 9, 2005) to the following address: Economic Development Agency City of San Bernardino Attn.: Deputy Director 201 North "E" Street, Suite 301 San Bernardino, California 92401 Sincerely, /7/?~ ~ Gary Van Osdel / / Executive Director Enclosures p:'Clerica1 Services Dqrt\was:aua\Ann Hanis\AH\Fonns\C.eIIt:ral CityNorth-StB\t:IDe.D. oflntctesl Leller Property Owni::l".doc , H STREET ~ o i S ~ ~ - SoTtrnE'f G.". ~-! I ,- , l__ DD ~-~_. ~ ~ = S o ~ e ~ r.Jj ~ ~ ~ ~ \ ".....J.. ~....~ ~~.\J Rid? Game,;; AI CP 0' . 'n' C I 1. }.[!'l'J'f].'!1"}q" e" ~)e"l.!el.Oir?:;-;.er1t ' 1011.S'l,~tant . C::;) I' .\ >..!J:'~ ,""}.:' ~It:.~ L/li~. ~~~i.'.ir 1 ~ Rick Gomez, AICP City of Pomona Hogl~-Irclalld FORl\.IA City of Rancho Cucamonga City of Arcadia Owner Di~ectllr ofCommunit)' Development Senior Project Manager Senior Din::ctu!" Director cfConlmunity Development Deputy Cily Managcr and Direclor {,[ De,elopment Services Direc:or efCommuniry Development Senior Pr{)i~ct Manager CiTY of LaVcrnc Lewis Manligcment Corporation (F,'rmerl~ Lmis Homes of California) ...>.(":.;:'~lL"'.' University of LaVernc Masters of Public Administration Cui-Poly Pt'mona Bachelor ofScienceslCity Planning 1\1P A 2002 r:lSCP 1978 0;.~.:;~'.~:.~:. :;' e2.~.LL ..:-:}.....;":~~::_:('..:. :'lO.:~,~~ .t),m~ri\'an Planninl:,. Association (APA) American Institute of CCltificd Planners (AIC?) Charkr l\1cmber for past 25 years. !\lembcr since 2000. i~ ~'::~~:l~.(.~\\!{:>i:..f !~!_: LFL.'!:i:~~! {.f.} Riel, Go/nel, AIel', has over thirty yea.s (30) of eXtculive cxperiencc in both the public and private sectors of planning and real estat.. development. Rick's Resume details positions with major California Cities and City Planning and Urban Design runsu!ling firms that include large residential and commerdal developers. These executive positionv have afforded Riel, the valuable c"perienc:e in developing large, master-planned communities; Specific Plans; Downtown Specific Plans inchlding Business Improvement Disrricts (B.LD.'s), Major Arterial/Corridor Specific 1'lan5, and Ci.y General Plans. This professional and ,'alnable experience demonstrate.. Rick's leadership abilities '0 undertake projecls 'with confid.,nce and the skill t', meet pl'oject deadlines. :j.~~' Xil't'f":;,'jU ~...,,;;.t..'[, (.iF!:",''-''.', Ca/~r;')i.lIjtl 9.' 784 ;'9i.i'i) Y57-1:'15G rh'kJf~l:fJ(l"J'UI~'{;().C(},.a ..._...._._.... ....H..._......_____._._.... ......-....--.-... . . iifC8\i'E2J Hi f*OF.vrln(~ ','"'),;7 ..~rrNCl' Bruce Ko 795 West 5th Street San Bernardino CA 92410-3101 May 26, 2006 2m" fJf,.Y 30 PH!2: 38 GI1Y OF ~:I\r'J LF. ','!/ '/:t\'f'j!.....-IO .....', '.__h" '_. " .._';' '. Executive Director Maggie Pacheco Economic Development Agency City of San Bernardino 201 North E Street, Suite 301 San Bernar.dino CA 92401-1507 RE: Offer from the Redevelopment Agency of the City of San Bernardino ("Agency") to purchase property located at the north east corner of 5th and "G" Streets, San Bernardino, CA (APN: 0134-06121, 22, 25 and 30) Central City North Redevelopment Project Area (the "Property") Dear Executive Director Pacheco: This letter is in response to your letter dated May 4, 2006, received on May 6, 2006, regarding the Agency's wishes to purchase the Property. We appreciate Agency's wishes to purchase the Property. We need additional time to determine if the Purchase Price is a Fair Market Value, as defined by Code of Civil Procedure Section 1263.320. We would like to reiterate our interest to participate the redevelopment efforts, As mentioned last year in our Statement of Interest to Participate, we would like to cooperate with the Agency to develop the Property. Please provide us conceptual, draft, work-in- progress or final Agency's plan for the Property so we can work efficiently with the Agency, Sincerely yours, h fEDf r,'./ Bruce Ko 795 West 5th Street San Bernardino CA 92410-3101 July 5, 2006 / :llq __.-' ,L'U 0 PM I: 22 '{ or- '- I ~. ;,1 . ,'-~;:{\r.10 Executive Director Maggie Pacheco Economic Development Agency City of San Bernardino 201 North E Street, Suite 301 San Bernardino CA 92401-1507 RE: Offer from the Redevelopment Agency of the City of San Bernardino ("Agency") to purchase property located at the north east comer of 5th and "0" Streets, San Bernardino, CA (APN: 0134-06121,22,25 and 30) Central City North Redevelopment Project Area (the "Property") Dear Executive Director Pacheco: This letter is in response to your letter dated June 30, 2006, regarding the Agency's intention to have a hearing on July 24th to seek a Resolution of Necessity. As mentioned in our previous letter, we need additional time to determine if the Purchase Price is a Fair Market Value, as defined by Code of Civil Procedure Section 1263.320. In the past few weeks, we have been busy collecting recent property transactions data, available properties for sale and studying the surrounding market. This method of valuation will give us an idea of the Property's value based on the Market Approach. However, before a proper Fair Market Value Can be derived, a Replacement Approach is also needed. Because the Property is a commercial property in a redevelopment zone, we would need expert's opinions. We have tried to get expert's opinions; however, it appears opinions may not be available before July 24th, due to expert's availability. Therefore, we request postponing the July 24th hearing for at least six weeks. We like to inquire the status of our previous requests to receive a conceptual, draft, work- in-progress or final Agency's plan for the Property. We would like to reiterate our interest to participate the redevelopment efforts. As mentioned last year in our Statement of Interest to Participate and our previous communications, we like to cooperate with the Agency to develop the Property. Please provide us conceptual, draft, work-in-progress or final Agency's plan for the Property so we can work efficiently with the Agency. We would like to thank you in advance of your timely assistance. Sincerely yours, ~ . '. I ASI ;\~';;'!.F! ,fij ;VY~O:=^K! w 3403 TENTH STREET, SUITE 610 RIVERSIDE. CALIFORNIA 92501 JOSEPH S. AKlUFI DAVID L. WYSOCKI TELEPHONE (951) 682-5480 FACSIMILE (951) 682-2619 E-MAil AandWlaW@ao1.com July 18, 2006 Ms. Maggie Pacheco, Executive Director City of San Bernardino Economic Development Agency 201 North "E" Street, Suite 301 San Bernardino, California 9240 i -1507 VIA FAX AND MAIL 909-888-94 I3 Re: Northeast Corner of 5th and "G" Streets, San Bernardino, CA APN: 0134-061-21,22,25 and 30 ("Propeliy") Dear Ms. Pacheco: We represent Bruce Ko, Christopher Ko and Henry Ko concerning the above-referenced matter. The purpose of this letter is two-fold: (I) to relay our written request to appear and be heard, and (2) to summarize our clients'objections to the proposed taking of their Property. Our objections are: 1. The appraisal statement accompanying the offer to purchase our clients' Property (dated May 4, 2006) is legally inadequate. Although the amount of compensation is not an issue at the Resolution hearing, failure to challenge the adequacy of the appraisal statement supporting the offer required by Government Code, Section 7267.2 at the hearing waives the right of judicial review. The appraisal summary statement is deficient in several respects. First, it contains an offer that is less than our clients originally paid for the Property. While there may be isolated examples of such "upside down" investments, it is, by any measure, a distinct rarity. In Southern California, real estate prices have climbed dramatically in the last few years, eclipsing the recession of the I 990s. The area that our clients' Property is located is not so "blighted" as to justify an appraised value that is less than its original purchase price nearly two decades earlier! Secondly, the appraisal summary statement is deficient in that there is no explanation for the enonnous discrepancy in the unit price of the five land sales deemed comparable by the appraiser and the offer itself. The appraised value of our clients' Property is estimated to be less than $15.00 per square foot; however, except for one sale at $2 1.00 per foot, 4 of the 5 sales range from $28.00 to $36.00 per square fool. If the five land sales are truly "comparable", it would take tremendous mental agility on the part of any appraiser to use them to justif'y an offer that is less than half of tile average of the five sales! , .' Ms. Maggie Pacheco, Executive Director Page 2 July 18, 2006 2. Our clients were not afforded a fair opportunity to participate in the redevelopment of their Property before condemnation was commenced, as the Health and Safety Code and case law demand. In response to your letter of February II, 200~, our clients filed their written Statement ofInterest to Participate with the EDA on March 9, 200~. However, despite repeated telephone calls throughout 2005, it wasn't until a letter dated Julv 7. 2006 from the law firm of Lewis Brisbois (by Lee Amidon, Esquire) that our clients first learned of a one-page "conceptual plan" for this project area. Further investigation revealed that the significant delay between the filing of our clients' Statement of Interest and Mr, Amidon's letter was the result of a recommendation by the City Attorney "that a plan for the target parcels would be essential iftbe Agency found the need to use its powers of condemnation. ..." (EDA Staff Report dated November 2, 2005). Thus, as of this writing, there has never been a good faith effort to include our clients in the discussions concerning this proposed project. Nearly 18 months had passed since the filing of the Statement of Interest before any discussion took place between your Agency and our clients, and only because our clients persistently sought those discussions. Not only were they not contacted about their Statement of Interest, they were never even consulted while the conceptual plan was being developed. It seems as if the plan was put together without any public input. Now, we find ourselves "under the gun" to make up for 18 months of lost time by struggling to put together an or A under threat of eminent domain. The long delay between the announcement ofthe possibility of an or A in February 2005 to the July 2006 disclosure that there is, in fact, only a "conceptual plan" for this project area is not our clients' fault. They should not now be made to make up for lost time by making instantaneous decisions on the basis of a one-page "conceptual plan" or suffer the consequences of eminent domain. Their request that this hearing be delayed for a reasonable period of time is reasonable, 3. The Agency is seeking to acquire property with an existing building that confonns to the redevelopment plan. Our clients' building, and the property that it stands on, is neither blighted nor outmoded; it merely needs a remodel. As your November 2, 2005, Staff Report reveals, our clients' historical use for the Property, as a restaurant, confonns to both the zoning for this area and the conceptual plan. Since at least March 9, 2005, our clients have expressed a strong interest in reopening the restaurant. Their desire prevails as of this writing. However, through no fault of their own, there has been no opportunity to negotiate an OPA that reflects that desire. Until such negotiations fail, the Health and Safety Code prohibits the exercise of eminent domain to acquire their perfectly good Property for the same or similar uses. The fact that their restaurant is closed should not be justification for assuming that it is the cause of blight in the Downtown. Rather, the reverse is true: but for the spreading blight, the restaurant would not be closed. If the Agency chooses to take action to address the blight in the surrounding area, then our clients should be given an opportunity to salvage their investment in the Downtown. Taking away their Property by a forced sale in eminent domain and paying less than what , " Ms. Maggie Pacheco, Executive Director Page 3 July 18, 2006 they paid for the Property is no way to treat loyal citizens and business people who are heavily invested in the Downtown. 4. Acquiring our clients' Property is not necessary to the success of the Agency's project. Our clients' Property is not adjacent to the project area; it does not share a common boundary. The success (or failure) of the Agency's project does not hinge upon the acquisition of this isolated parcel. Indeed, our clients' Property represents approximately less than 10% of the project area and obviously does not suffer from the same deficiencies that the remaining project area parcels possess. Moreover, the determination of whether our clients' Property is "necessary" for the project is premature; as we have noted above, we have consistently expressed an interest in an OP A, but it has only been this month (July) that we be given an opportunity to talk to your staff about it, let alone negotiate it. TIle fact that we do not have an OP A is not our clients' fault. Finally, this closing observation: As you know, our clients own other substantial businesses in the area. They are heavily invested in the Downtown, and it is in their best interest to protect and enhance their investments, Who would be more motivated than they? Would it not be appropriate, therefore, to allow them the opp0l1unity to resurrect their own investment? Very truly yours, AKLUFI AND WYSOCKI JOSEPH S. AKLUFI JOSEPH S. AKLUFI, Attomeys for the KOFAMILY JSA:dvh cc: vClients Lee Amidon, Esq: (Via Fax and Mail 909-387-1138) , .' ( ~AKLUfl [1 WYSOCKI g ATTOll.NEYS AT lAW W 3.403 TENTH STJlEIIT. SUITE 6JO RlVfl\Sl.DE. CALIFORNIA 92501 JOSEPH ~. ^KLtJfl D^VlD L. W'rSOCKJ TELEPHONE (951) 682.-5&80 PACSIMILE C$5U &82-2619 E.MAlL AandWl.awOaaLcDID July 20, 2006 Lee Amidon, Esquire Lewis Brisbois Bisgaard & Smith LLP 650 East Hospitality Lane, Suite 600 San Bernardino, California 92408 VIA FAX ONLY 909-387-1138 Re: The Ko Familv ProDertv at 511I and "G" Streets Dear Lee: I discussed the new offer to purchase the Ko Family property with Our clients, for $384,000.00. Because our clients' very much want an Owners Participation Agreement, the offer was declined. As for the OP A, at our meeting with you and Mike Trout last Friday, July 14, we were led to believe that EDA was excited by the fact that we were bringing in a professional to assist us, Mr. Rick Gomez, and that Mr. Trout was not only willing to meet with Mr. Gomez during the week of July 17. but that he. Mr. Trout, would clear his calendar to accommodate Mr. Gomez. Mr. Gomez set up a meeting with Mr. Trout for Thun;day morning, July 20. However, a few minutes before 5:00 p.rn. on the afternoon ofJuly 19. Mr. Trout cancelled the meeting, advising that he was "leaving town" for a few days and would not be available until Tuesday, July 25, at 2 p.llL, the day after the hearing on the Resolution of Necessity. As of this writing, Mr. Gomez is instead atteropting to set up a meeting with Ms. Pacheco. These calendaring problems may well be explained as typical, but it is also perfectly nonnal for us to conclude that the initial 'imthl!8i;lllm for our participa.tion has eva.porated. at lea.st 1!IItil we get past the hearing on the Resolution of Necessity! Please make a copy of this letter for the EDA file on the hearing of the Resolution, so that it may be part of the Administrative Record. Best rega.rds. JSAdvh cc: Ko Family (Via Fall Only)