HomeMy WebLinkAboutR31-Economic Development Agency
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
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FROM: Maggie Pa,heco
Executive Director
SUBJECT:
Hearing - Resolution oC Public Interest and
Necessi~ Cor Acquisition oC Real Property: 770
West 5' Street, San Bernardino, CaliCornia
(Najera/Cantoran)
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DATE:
August 3 , 2006
Svnonsis oC Previous Commission/Council/Committee 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 ofthe Project.
Recommended Motion(s):
Open/Close Hearing
(Communitv Development Commission)
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Resolution of the Community Development Commission of the City of San Bernardino declaring the Public
Interest and Necessity of Acquisition of Real Property by the Redevelopment Agency of the City of San
Bernardino for community redevelopment purposes over the property located at 770 West 5'" Street, San
Bernardino, California (Najera/Cantoran - APN: 0134-054-26) in the Central City North Redevelopment
__________-Yroject Ar~~______________________________._____________ ____
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Contact Person(s):
Maggie Pacheco
Central City North
Redevelopment Project Area
Phone:
(909) 663-1044
Project Area(s)
Ward(s):
Supporting Data Attached: iii Staff Report iii Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letters
Approx.
FUNDING REQUIREMENTS Amount: $ 660,000 Source: LowlMod Housing Bond Proceeds
SIGNATURE:
Budget Authority:
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2005-2006 EDA Budget
Commission/Council Notes:
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r:\Acftlda\Co.. DeY'C__iuioIIICDC 1006\08.-21-86 NoJen Raolltdo. of Neassity. 77ft Welt Stll Sttftf SR.doe
COMMISSION MEETING AGENDA
Meeting Date: 0812112006
Agenda Item Number: R.3 I
ECONOMIC DEVELOPMENT AGENCY
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STAFF REPORT
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HEARING - RESOLUTION OF PUBLIC INTEREST AND NECESSITY FOR ACQUISITION
OF REAL PROPERTY: 770 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 propert~ ("Study Area") bounded by, 5th
Street to the north, "G" Street on the east, "H" Street on the west, and 4t 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" Streets but
excluding the new TELACU II Monte Vista Senior Housing Complex.
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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 complementary parking and amenities, which will include a
unified high quality architectural and urban design. Moreover, the objective of the Project 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 9 parcels, 1
additional parcel is in escrow and 13 to 17 parcels remain to be acquired. .
On May 19,2006, the Agency sent a purchase offer ("Offer") to Raul M. Najera and Catalina A. Barrera
Cantoran ("Property Owners") to purchase the property located at 770 West 5th Street, San Bernardino,
California (APN: 0134-054-26) (the "Property"). The Offer included an Appraisal Summary Statement in
conformity with Government Code Section 7267.2(b), which was prepared by a qualified appraiser. 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. The Property Owners received the Offer.
In the Offer that was transmitted to the Property Owners, the Property Owners were 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, if applicable.
On June 14,2006, the Property Owners returned the Agency's Offer with a counter offer of $650,000 for
the purchase of the Property.
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On June 29, 2006, Agency.Staff contacted Mr. Najera and made a verbal counter offer of $585,000 for the
purchase of the Property. On July 10,2006, Mr. Najera informed Agency Staff that he would not accept
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P:\A~ndas\CoTml Dev Commis$k1n\COC 2OO6\O1l-21..()6 Najera Resohllion of Necessity - 710 West 5th Street SR_doc COMMISSION MEETING AGENDA
Meeting Date: 08/2111006
Agenda Item Number:
Economic Development Agency Staff Report
Najera/Cantoran - CCN Property Acquisition (APN: 0134-054-26)
Page 2
- the Agency's counter offer of$585,000 and reiterated that he was firm on his asking price of $650,000 for
the purchase of the Property. Consequently, on July 11,2006, Agency Staff called Mr. Najera to inform
him that the Commission accepted his counter offer of $650,000 and that the Agency would send him a
letter stating the Commission's acceptance and a new Purchase Agreement ("Agreement"), on July 14,
2006, that offer and Agreement was sent to Mr. Najera.
Thereafter, on July 26, 2006, the Agency received a letter from Louis E. Goebel of the Law Offices of
Louis E. Goebel ("Property Owners Counsel") stating I) "This law firm represents Raul M. Najera and
Catalina A. Barrero Cantoran in connection with the City's attempts to acquire the property at 770 West
5th Street, San Bernardino, California (APN: 0134-054-26)" and 2) .....the owners (our clients)
respectfully decline to enter into your "Agreement to purchase real property", dated July 10,2006." (Date
of Commission approval).
CURRENT ISSUES:
Therefore, in conformance with the Code of Civil Procedure Section 1245.235, on August 2, 2006, a
notice of the August 21, 2006 hearing on the intent of adopting.a Resolution of Public Interest and
Necessity was sent by certified mail to the Property Owners Counsel and the Property Owners whose
names and address appears on the last equalized County assessment roll, in order to afford such Property
Owners a reasonable opportunity to be heard by the Commission. The Hearing by the Commission and
the adoption of the Resolution of Public Interest and Necessity are legal preconditions to the exercise of
,- the Commission's power of eminent domain. Moreover, Code of Civil Procedure Section 1245.230
_. requires that the Commission make the following findings and that each be included in the Resolution of
Necessity.
On August 14,2006, Property Owners Counsel advised the Agency that they intend to be present at this
hearing to oppose the Resolution of Necessity action. The Property Owners asked that his letter be placed
in the record. The Property Owners objected to the Resolution of Necessity on several grounds as noted
in the attached Exhibit "A".
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. Tbe public interest and necessity require tbe acquisition of tbe Property: The Agency has
adopted a Plan tbat includes tbis 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. During the past year, the Agency has
acquired nine (9) parcels of land, I additional parcel is in escrow and 13 to 17 parcels remain to be
acquired 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.
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P:\A(Cndll\COAn. Dn COfIlIIQIssIo.ICDC 2006\08.11-06 NlJen R,e,olatloll orNecasll)' -770 Wnc 5tb Slreet SR.doc
COMMISSION MEETING AGENDA
Meeting Date: 08l2ln006
Agenda Item Number:
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Economic Development Agency Staff Report
NajeralCantoran - CCN Property Acquisition (APN: 0134-054-26)
Page 3
2. The Proiect is planned or located in a manner that will be most compatible with the l!reatest
public l!nod and the least private iniurv: The 5th Street Corridor has had years of problems 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 economica1ly 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, aosentee owners and tenants in possession, and substandard and
inadequate lot size. The Project will also facilitate land assembly and reuse of a developed urban
area that has stagnated in 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 I Crimes for this area in 2004 were 426 and 436 in 2005. The number decreased drarnatica1ly
to 91 from January II to April 11,2006. This Project will provide attractive affordable housing
similar to TELACU but for a1l citizens. 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 Inn Express in the Project Area. The Project will also
confer substantial environmental benefits upon the Project Area and the community genera1ly, 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 Environmental Impact Report SCH#2003031072 (the "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
directly in the middle of the proposed development. The Project cannot be built around the
subject Property. Failing to include the Property in the Project could create a situation where the
development of the Project is not feasible (thereby hurting the City residents). If the Commission
approves the Resolution of Necessity, the Agency is still able to negotiate with the Property
Owners. It should be noted that the Property Owners have never made a request for Owner
Participation in the Project. .
4. The Government Code & 7267.2(a) offer have been made to the record ProperlY Owners: On
May 19, 2006, the Agency submitted a formal acquisition offer to the Property Owners of the
subject Property. The Offer complied with Government Code Section 7267.2. The Property
Owners made a counter offer, which was accepted by the Commission. Afterwards, the Property
Owners changed their mind and the Owners' Counsel wrote a letter to the Agency informing the
Agency that the Property Owners declined to execute the Purchase Agreement for $650,000,
which is the amount of the Property Owners counter offer that the Commission approved and is
considered to be in excess of the fair market value.
P:\AcadQ\ColIIlII Dev Co....nlldo.\CDC l006\08-Zl-4l6 Nljml Raoludoll o'N~I)'. 770 Wac 511i1 SIred SR.dor COMMISSION MEETING AGENDA
Meeting Date: 0812112006
Agenda Uem Number:
Economic Development Agency Staff Report
NajeralCantoran - CCN Property Acquisition (APN: 0134-054-26)
Page 4
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'- 5. The Commission has not made a predetermination to proceed with the Proiect: The
Property Owners opposed the proposed Resolution on the ground that the Commission has made a
predetermination to proceed with the Project, regardless of the records. That is absolutely untrue.
The Commission has never rubber-stamped its consent on any matter brought in a hearing and this
is certainly not the case here.
6, The offer did include compensation for all property interests: The Owners claim that the
offer to acquire did not include compensation for all property rights and interests taken or
damaged. In fact, the proposed Agreement to Purchase Real Property (Escrow Instructions) states
that the offer was for "seller's fee interest in the land and any improvements located thereon,
severance damages, relocation expenses, loss of business goodwill, costs, interest, attorney's fees,
any leasehold payments of legal tenants, and any claim whatsoever of Seller..." (Agreement to
Purchase, page I, paragraph 2).
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7. The environmental processin!! was accomplished accordin!! to law: The Owners claim that the
environmental process was unlawful. The Commission considered and certified the
Environmental Impact Report SCH#2003031072 (the "EIR") in accordance with the California
Environmental QiJality Act ("CEQA") for the Project Area which addresses reinstating the
Agency's power of condemnation and the acquisition of Property .contemplate9 within the Plan
. and for the Project is consistent with the EIR for the Project Area. On November 7, 2005, the
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. 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
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. There was no CEQA challenge and the time has
expired to do so.
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8, Adequate notice was !!iven of this hearin!!: The Property Owners last claims notice was
inadequate. The Agency provided notice to the Owners on August 2, 2006 by certified mail, of
the August 21, 2006 hearing. Notice was provided to the Owners at the address in the last
equalized county assessment roll notice. Also, a copy of the letter was also mailed to Najera'
Legal Counsel advising that the hearing would be on August 21, 2006. Najera's Legal Counsel
stated in his letter dated August 14, 2006 requesting a right to appear and be heard at the August
21,2006 hearing. The Owners had actual notice of the hearing.
ENVIRONMENTAL IMP ACT:
On or about September 7, 2004, the Commission considered and certified the EIR (SCH #2003031072) in
accordance with the CaJifornia 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.
P:\Al:tJtd.~om.. De\' CO."UDO\COC lOO6\08-Z1-86 NlIjen Raolutfoa ofNecaall, -770 Wtst Sib Strut SR.doc
COMMISSION MEETING AGENDA
Meeting Date: 08/2112006
Agenda Item Number:
Economic Development Agency Staff Report
Najera/Cantoran - CCN Property Acquisition (APN: 0134-054-26)
Page 5
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'- On November 7,2005, the 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.
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 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. There was no CEQA challenge and the time has expired to challenge CEQA
compliance.
FISCAL IMPACT:
Based on the formal appraisal, the value of the subject Property is $550,000 plus court costs and legal
expenses normally associated with condemnation proceedings for an approximate total of$660,000.
RECOMMENDATION:
That the Community Development Commission adopt the attached Resolution.
M?~~
Maggie Pacheco, Executive Director
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r:\AChldu\Co... On C__iuion\CDC 1:006\01-21-06 N8jerl Resolution ofN~t)' - 170 Wat StJa S&net SR.doc
COMMISSION MEETING AGENDA
Meeting Date: 08lZln006
Agenda Item Number:
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Exhibit "A"
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Aug 14 06 11:34a
Goebel Law Offices
6192394269
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61mn-261l
LAW OFFICES OF Loms E. GOEBEL
110 West A Street, Suite 600.
San Diego, Calirornia 92101
E-mail: Ieg@goebellaw.com
. . .
FAX 619/239-<4269
VIA FAX 909/888-9413
August 14, 2006
Maggie Pacheco, Executive Director
City of San Bernardino Economic Development Agency
201 North E Street, Suite 301
San Bernardino, CA 92401-1507
Re: Objection to Resolution of Necessity to Acquire by Eminent Domain
the Real Property and hnprovements located at:
770 West 5" Street, San Bernardino CA 92410; APN: 0134-054-26
.'~ Raul M. Najera and Catalina A. Barrera Cantoran
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Hearing: August 21, 2006, 4:30 P.M.
Dear Ms. Pacheco:
This office represents Raul M. Najera and Catalina A. Barrera Cantoran, whose
property is affected by the acquisition for redevelopment pmposes. We are advised that the
Community Development Commission of the City of San Bernardino on behalf of the
Redevelopment Agency of the City of San Bernardino intends to hold a public hearing on
August 21,2006, at 4:30 P.M., to consider passage of a Resolution of Necessity to condemn
our clients' property for the above-referenced project.
Our clients object to the passage of this Resolution of Necessity. We lodge the
following objections concerning the rnattersaddressed in California Code of Civil Procedure
Sections 1240.010, ~
The requirements of California Code of Civil Procedure Section 1240.030 have not
been met, specifically:
(A) the public interest and necessity do not require the project;
(B) the project is not planned or located in a manner that will be most
compatible with the greatest public good and least private injury; and
(C) the property sought to be acquired is not necessary for the project.
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Aug 1406 11:34a
Goebel Law Offices
6192394269
p.3
Maggie Pacheco, Executive Director
San Bernardino Economic Development Agency
August 14,2006
Page 2
In addition, we object on the following grounds: prior to this scheduled hearing, the
Commission has made a predetermination to proceed with the project, regardless of the record
considered at the hearing; the offer to acquire did not include compensation for all property righrs
and in1erests taken or damaged; the environmental processing was not accomplished according
to law; and notice of this hearing was inadequate.
We request that this letter be placed in the record in colll1ection with this matter.
We intend to appear at the public hearing.
Very truly yours,
LAW OFFlCES OF LOurS E. GOEBEL
LEG/mj
cc Raul M. Najera and Catalina A. Barrera Cantoran
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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 770 WEST 5TH STREET, SAN
BERNARDINO, CALIFORNIA (NAJERA/CANTORAN - APN: 0134-054-26)
IN THE CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA
WHEREAS, the Redev~lopment 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
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North Redevelopment Project Area ("Project Area"); and
WHEREAS, the Project Area displays substantial and pervasive symptoms of blight that
cannot be remedied by private parties acting alone without community redevelopment
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assistance; and
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WHEREAS, on March 24, 2005, the Agency sent a letter via certified mail to Raul M.
Najera and Catalina A. Barrera, owners of the Property, informing them that the Agency was
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reviewing a plan for the redevelopment and reuse of certain properties in the downtown area
that included their Property and requested their submission of statement of interest to
participate; and
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WHEREAS, Raul M. Najera and Catalina A. Barrera did not respond nor return the
Statement of Interest to Participate; and
WHEREAS, the Agency has acquired other real property in the Project Area; and
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4830-5504-1536.1 I
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WHEREAS, on April 6, 2005, the Agency mailed a notice to the owners of record of the
real Property located within the Project Area as described and informed such persons that the
Agency intended to appraise the Property for possible acquisition; and
WHEREAS, the Agency retained the services of an appraiser to appraise the Property
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and the appraiser has reported an opinion of the fair market value of the improved property
located at 770 West 5th Street, San Bernardino, California 92410 (APN: 0134-054-26) (the
"Property"); and
WHEREAS, the Property is improved with a building that the Property Owners have
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advised is used as a restaurant within the Project Area; and
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WHEREAS, due to the passage of time, the Agency obtained an updated appraisal for
the Property; and
WHEREAS, based upon such updated real property appraisal report, the Commission
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authorized the Agency to send a purchase offer to the owners of record, to attempt to purchase
the ProPerty at the appraised value in lieu of condemnation, and on May 19, 2006, the Agency
mailed a purchase offer to the owners of record of the Property based on the updated appraised
value of the Property described in this Resolution; and
WHEREAS, the Agency transmitted the offer to purchase the Property situated within
the Project Area, based on the updated appraised value on May 19, 2006, to the owners 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 owners of record, Raul M. Najera
and Catalina A. Barrera Cantoran ("Property Owners"), received the offer but does not agree
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with the Agency's offer; and
WHEREAS, on June 14, 2006, the Property Owners returned the Agency Purchase
Offer and did not accept the Agency Purchase Offer based on the updated appraisal and instead
made a counter offer of $650,000; and
WHEREAS, on June 29, 2006, Agency Staff contacted the Property Owners and made a
counter offer of$585,000 for the purchase of the Property; and
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4830-5504-1536.1 2
P:\Agendu\RcsolutioDS\Jlesolutions\2006\0S-2I-OS Najera - CCN 770 West 5tb SlJeet CDC Reso.da<;
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WHEREAS, on July 1 0, 2006, the Property Owners informed Agency Staff that they
could not accept the Agency's counter offer of $585,000 and reiterated that their position was
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firm on the $650,000 for the purchase of the Property; and
WHEREAS, on July II, 2006, Agency Staff informed the Property Owners that the
Commission agreed to their counter offer in the amount of $650,000 to purchase the Property
and that the Agency would send the Property Owners a letter stating the Commission's
acceptance and a new Purchase Agreement ("Purchase Agreement") for $650,000; and
WHEREAS, on July 14, 2006, the Agency mailed a letter and Purchase Agreement to
the Property Owners to purchase the Property at the mutually agreed price of $650,000; and
WHEREAS, on July 26,2006, the Agency received a letter from Louis E. Goebel of the
Law Offices of Louis E. Goebel ("Property Owners Counsel") stating 1) "This law firm
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represents Raul M. Najera and Catalina A. Barrero Cantoran in connection with the City's
attempts to acquire the property at 770 West 5th Street, San Bernardino, California (APN: 0134-
054-26)" and 2) "...the owners (our clients) respectfully decline to enter into your "agreement
to purchase real property", dated July 10,2006."; and
WHEREAS, the Agency has not been able to satisfactorily complete a negotiated
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purchase with the Property Owners to acquire the Property for community redevelopment
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purposes; and
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WHEREAS, the Commission has served as the "lead agency" as defined in the
California Environmental Quality Act ("CEQA") for the purpose of conducting an
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environmental review in connection with the acquisition of the Property; and
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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 (the "Project") described in more detail
in the CEQA Initial Study dated October II, 2005; and
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4830-5504-1536.1 3
P:\,AgeDdas\Resolutions\ResolulionsUOO6\OS-ZI-GS Najera. CCN 770 West Stb S1Jeet CDC Reso.doc
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WHEREAS, on or about September 7, 2004, the Agency considered and certified
Environmental Impact Report SCH#2003031 072 (the "EIR") in accordance with the CEQA for
the Project Area, and the acquisition of property contemplated within the Plan and for the
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Project is consistent with the EIR; and
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WHEREAS, the Property Owners never made a CEQA challenge and the time has
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expired to do so; and
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WHEREAS, Part 1 Crimes within the area of the Plan and Project were reported as 91
incidents of crime for the period January 11 through April 11,2006,436 for 2005 and 426 for
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2004; and
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WHEREAS, the Agreement contemplates the Agency acquiring or obtaining control of
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parcels necessary for the Plan either through purchase negotiations or alternatively, by eminent
domain proceeding, if necessary; and
WHEREAS, on August 2, 2006, Notice of Intent to adopt this Resolution was mailed to
the Property Owners at the address of record on file at the office of the County Tax Collector
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and at the last known address for the owners of the Property; and
WHEREAS, on August 2, 2006, Notice of Intent to adopt this Resolution was mailed to
the Property Owners Counsel at the Law Offices of Louis E. Goebel, 110 West "A" Street,
19 Suite 600, San Diego, California 92101; and
WHEREAS, on August 14, 2006, Property Owners Counsel advised the Agency that
they intend to be present at this hearing to oppose the Resolution of Necessity action. The
Property Owners Counsel asked that his letter be placed in the record. The Property Owners
Counsel objected to the Resolution of Necessity on several grounds:
I. The public interest and necessity do not require the project.
2. The project is not planned or located in a manner that will be most
compatible with the greatest public good and least private injury.
3. The property sought to be acquired is not necessary for the project.
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4. The Commission has made a predetermination to proceed with the project
regardless of the record.
5. The offer to acquire did not include compensation for all property rights and
interest taken or damaged.
6. The environmental processing was not accomplished according to law; and
WHEREAS, on August 21, 2006, after not less than fifteen (15) days written notice to
the owners of the Property and the Property Owners Counsel, the Commission conducted a
hearing for the purpose of affording the owners of the Property and Property Owners Counsel 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 the Plan and community redevelopment
purposes; and
WHEREAS, the Commission has determined as a result of such hearing on August 21,
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:
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Section 1.
The information set forth in the above recitals of this Resolution is true
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and correct.
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Section 2.
The real Property to be acquired under the authority of this Resolution is
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located in the Project Area in the City of San Bernardino, California, and is also known as 770
West 5th Street, San Bernardino, California 92410 (San Bernardino County Assessor's Parcel
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Number 0134-054-26). The Property is more particularly described in the legal description
attached as Exhibit "A." The interest in the Property to be acquired consists of all of the fee
simple absolute title interest in the Property, and all of the right, title and interest of each person
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and owners of the Property including the acquisition of each and every possessory interest and
all easements and appurtenances to the Property.
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Section 3. On August 2, 2006, the Agency transmitted a notice of hearing to the
known owners of record (Raul M. Najera and Catalina A. Barrera Cantoran) at 770 West 5th
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Street, San Bernardino, California 92410.
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Section 4. On August 2, 2006, the Agency transmitted a notice of hearing to the
Property Owners Counsel at the Law Offices of Louis E. Goebel, 110 West "A" Street, Suite
600, San Diego, California 92101.
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Section 5.
The Commission acknowledges receipt of the written reports and
information relating to 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 August 21, 2006 or as may be on file with the Agency Secretary.
Section 6. The Commission, on behalf of the Agency, finds and determines that the
hearing conducted by the Commission on this matter on August 21, 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
19 other relevant matters.
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Section 7.
The Commission declares its intent to acquire the Property for the Plan
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and in furtherance of 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 8.
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 Commission on November 7, 2005 and a Notice of Determination was filed with
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the Clerk ofthe County on November 10, 2005.
Section 9.
The Commission has found and determined that:
I. The public interest and necessity requires the Project;
2. The Project is planned or located in a manner that will be most compatible with
the greatest public good and least private injury;
3. The Property sought to be acquired is necessary for the Project;
4. The Commissiob has not made a predetermination to proceed with the Project,
regardless of the record;
5. The offer to acquire did include compensation for all property rights and interest
taken or damaged;
6. The environmental processing was accomplished according to law;
7. Notice of this hearing was adequate.
Section 10. In accordance with the provisions of Code of Civil Procedure Section
1245.230, the Commission finds, determines, and declares as follows:
(a) The public interest, convenience and necessity require the acquisition of the
Property for the Project, as necessary to alleviate conditions of blight -in the Project Area, which
are documented and described in more detail in the 2004 EIR and CEQA Initial Study dated
October II, 2005, which Initial Study and Mitigated Negative Declaration was approved on
November 7, 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.
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For the period of January 11 through April II, 2006, the number of Part I Crimes within the
area of the Plan and Project were 91. For the 2005 period, there were 436 Part I Crimes. For
the 2004 period, there were 426 Part I Crimes. For the period of January 11 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, 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 the Project are 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
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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
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inadequate public improvements.
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(c)
The Property described in this Resolution is necessary for the Plan and the
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Project, as its acquisition and reuse for the Plan and the Project is part of a neighborhood plan to
eliminate blight and provide for the redevelopment and improvement of the other lands owned
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by the Agency within the Project Area.
(d) The purchase offer required by Government Code Section 7267.2 has been
mailed to the owners of record of the Property by the Agency, and the Agency has not been
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successful in acquiring the Property based upon the conditions contained within the offer. The
....... Commission deems it appropriate and necessary to approve the Agency acquisition of the
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Property for assembly for the Plan and the Project.
Section 11. (a)
The law firm of Lewis Brisbois Bisgaard & Smith, LLP, as legal
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counsel to the Agency ("Agency Counsel"), is authorized and directed to prepare, institute and
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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 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
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Agency 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 Agency Counsel.
(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 appraisal price prior to or subsequent to filing a
condemnation complaint to commence acquisition of the Property by eminent domain.
Section 12. The Secretary of the Commission is authorized and directed to certify the
adoption of this Resolution. This Resolution shall take affect upon adoption.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO DECLARING THE PUBLIC
INTEREST AND NECESSITY OF ACQUISITION OF REAL PROPERTY
BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO FOR COMMUNITY REDEVELOPMENT PURPOSES
OVER THE PROPERTY LOCATED AT 770 WEST 5TH STREET, SAN
BERNARDINO, CALIFORNIA (NAJERAlCANTORAN - APN: 0134-054-26)
IN THE CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA
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PASSED, APPROVED AND ADOPTED this _ day of
2006.
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I CERTIFY that the foregoing Resolution was duly adopted by the Community
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Development Commission of the City of San Bernardino at its
meeting
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held on
, 2006 by the following vote, to wit:
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Commission Members:
Absent
Abstain
Aves
Navs
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ESTRADA
BAXTER
VACANT
DERRY
KELLEY
JOHNSON
MC CAMMACK
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Secretary
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The foregoing resolution is hereby approved this
day of
,2006.
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Patrick J. Morris, Chairperson
Community Development Commission
of the City of San Bernardino
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Approved as to Form and Legal Content:
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Agency Coun I
By:
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