HomeMy WebLinkAboutR43-Economic Development Agency
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM: Maggie Pacheco
Executive Director
SUBJECT:
Hearing - Resolution of Public loterest and
Necessity for Acquisition of Real Property:
lIOS West 2"" Street, San Bernardino,
California (Belichefsky)
DATE:
August 25, 2006
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SvnoDsis of Previous Commission/Council/Committee Action(s):
On November 18, 2002, the Community Development Commission ("Commission") adopted a resolution authorizing the
execution of an agreement for professional services for the preparation of a Program Environmental Impact report ("EIR").
On August 16, 2004, the Commission adopted a resolution certifying the EIR for the Uptown Redevelopment Project Area (the
"Project Area") and reinstated the use of eminent domain in the Project Area.
On March 20, 2006, the Commission authorized Staff to obtain an appraisal of the subject Property. On July 24, 2006, the
Commission authorized Staff to make an offer to purchase the subject Property to the Property Owner.
Recommended Motion(s):
Open/Close Hearing
(Communitv DeveloDment 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 1108 West 2"' Street, San
Bernardino, California (Belichefsky - APN: 0138-301-07) in the Uptown Redevelopment Project Area
Contact Person(s):
Maggie Pacheco
Phone:
(909) 663-1044
Project Area(s)
Uptown Redevelopment Project Area
Ward(s):
Supporting Data Attached: 0;'1 Staff Report 0;'1 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letters
Approx.
FUNDING REQUIREMENTS Amount: $ 300,000 Source: Low/Mod Housing Bond Proceeds
n Budget Authority:
SIGNATURE:~ ~~ ~e_________
M ggre Pacheco, Executive Director
2005-2006 EDA Budget
~<U ~ <uc. ~ c!<<-/I/
-Barbara Lindseth. Admin. Services Director
Commission/Council Notes:
4817-1981-7473.t COMMISSION MEETING AGENDA
P:\Agrndu\Comm Dev Commission\CDC l006\09-0S-0fi Belichersky Resolution or Necruily - 1101 Wnt 2nd Sll'ftt SR.doe Meeting Date: 09/0512006
Agenda Item Number: ~
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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HEARING - RESOLUTION OF PUBLIC INTEREST AND NECESSITY FOR ACQUISITION
OF REAL PROPERTY: 1108 WEST 2nd STREET, SAN BERNARDINO, CALIFORNIA
(BELICHEFSKY)
BACKGROUND:
On August 16, 2004, the Commission, as a responsible agency under the California Environmental
Quality Act ("CEQA") adopted a resolution certifying a Program Environmental Impact Report
("EIR") for the Uptown Redevelopment Project Area ("Project Area"). Part of the purpose of the EIR
was to evaluate the potential environmental effects of a proposed retail and commercial development
located west of "K" Street, south of 3rd Street, and north of 2nd Street ("Site") in Subarea B of the
Project Area. The Site is approximately 9.2 acres in size. For the purpose of CEQA analysis, the
proposed retail and commercial development ("Project") assumed approximately 96,241 square feet.
The Site consists of nine (9) parcels, three (3) of which the Agency owns.
On July 24, 2006 the Agency sent a purchase offer ("Offer") to the Belichefsky Children Family Trust
("Property Owner") to purchase the property located at 1108 West 2nd Street, San Bernardino,
California (APN: 0138-301-07) (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 owner of record, Belichefsky Children Family Trust,
received the Offer. In the Offer, the Property Owner was requested to convey free and clear title. To
date, the Property Owner has not responded by either accepting the Agency Offer or rejecting the
Offer. The Property is improved with a Class C, built in 1940, Block and Plaster structure of average
quality, 1,160 square feet in size and is occupied by the Video Mart business. The estimated year of
construction is 1940.
CURRENT ISSUES:
Therefore, in conformance with the Code of Civil Procedure Section 1245.235, on Au!NS~ 17,2006, a
notice of the September 5, 2006 hearing on the intention of adopting a Resolution of Public Interest
and Necessity was sent by certified mail to the Property Owner whose name and address appears on
the last equalized County assessment roll, in order to afford such Property Owner a reasonable
opportunity to be heard by the Commission. The Hearing by the Commission and the adoption of the
Resolution of Public Interest and Necessity are legal preconditions to the exercise of the Commission's
power of eminent domain. Moreover, Code of Civil Procedure Section 1245.230 requires that the
Commission make the following findings and that each be included in the Resolution of Necessity:
1. The public interest and necessitv reauire the acauisition of the Propertv: The Commission
certified an EIR that studied the Project on the Site, which Site includes the Property. The
development of the Site is in conformity with the Redevelopment Plan for the Uptown
Redevelopment Project Area ("Plan"). Since the certification of the EIR, the Agency has
acquired three (3) parcels. The Agency finds it appropriate to continue the program of land
4817-1981-7473.1 COMMISSION MEETING AGENDA
P;\Apnd.,IComm De" Commission\CDC 2006\09.05-06 Eklidl~r,ky Rrsolutioa or Ncocessity. 1101 Wesl 2nd Street SR.doc Meeting Date: 09/0512006
Agenda Item Number: ~
Economic Development Agency Staff Report
Belichefsky, Uptown Property Acquisition-APN: 0138-301-07
Page 2
assembly and to acquire this additional Property to provide sufficient contiguous land for the
Project.
2. The Proiect is planned or located in a manner that will be most compatible with the
ereatest public eood and the least private iniurv: The Agency has increased its efforts to
address conditions of blight in this sector of 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 retail/commercial
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 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 Project will provide a positive impact in
the Project Area and can be used as a springboard for further redevelopment in the Project
Area. The Project will also confer substantial environmental benefits upon the Project Area
and the community generally, in accordance with the General Plan of the City of San
Bernardino. The Plan was amended on August 16, 2004 by adoption of an amendment to
reinstate the power of condemnation together with an 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 contiguous to the Project Site and the Project cannot be built around the subject
Property. If the Commission approves the Resolution of Necessity, the Agency is still able to
negotiate with the Property Owner to avoid condemnation.
4. The Government Code Ii 7267.2(a) offers have been made to the record Property Owner:
On July 24, 2006 the Agency submitted a formal acquisition offer to the Property Owner of the
subject Property. The offer complies with Government Code S 7267.2. To date, the Property
Owner has not accepted the Agency Offer nor provided a counter offer.
ENVIRONMENTAL IMPACT:
On or about August 16, 2004, the Community Development Commission considered and certified
Environmental Impact Report SCH#2003031072 (the "EIR") in accordance with the California
Environmental Quality Act ("CEQA") for the Project Area which addresses reinstating the Agency's
power of condemnation and the acquisition of Property contemplated within the Plan and for the
Project is consistent with the EIR for the Project Area.
4817-1981-7473.1 COMMISSION MEETING AGENDA
P:\Altndas\Comm Dtv Commillion\CDC 2006\09-05-06 Belichellky Rnolulion or NKeniry. 1101 Wat 2nd Street SR.doc Meeting Date: 0910512006
Agenda Item Number: ~l.J3
Economic Development Agency Staff Report
Belicheftky, Uptown Property Acquisition-APN: 0138-301-07
Page 3
,
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. The time has expired to challenge CEQA compliance.
FISCAL IMPACT:
Based on the appraisal, the appraised value of the subject Property is $205,000 plus court costs and
legal expenses normally associated with condemnation proceedings for an approximate total of
$300,000.
RECOMMENDATION:
That the Community Development Commission adopt the attached Resolution.
r7"i
4817-1981.7473.1 COMMISSION MEETING AGENDA
P;\AgendlsIComm On COlllllliuion\CDC l006\O'-O~ Iklichtf.ky Resolution ofNruslity -1101 Wnll.d Street SR.doe Meeting Date: 09/0512006
Agenda Item Number: ..&93-
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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 1108 WEST 2ND STREET, SAN
BERNARDINO, CALIFORNIA (BELICHEFSKY - APN: 0138-301-07) IN
THE UPTOWN REDEVELOPMENT PROJECT AREA
WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency"), a
9 public entity created pursuant to the Community Redevelopment Law (Health and Safety Code
10 Section 33000, et seq.), is authorized to acquire and redevelop blighted properties located in the City
11 of San Bernardino (the "City"), in accordance with the Community Redevelopment Law; and
12 WHEREAS, the Community Development Commission of the City of San Bernardino (the
13 "Commission"), as the governing board of the Agency, has authorized the Agency to assemble and
14 acquire real property for community redevelopment purposes in the Uptown Redevelopment Project
15 Area ("Project Area") and in accordance with the Redevelopment Plan for the Uptown
16 Redevelopment Project Area ("Plan"); and
17 WHEREAS, the Project Area displays substantial and pervasive symptoms of blight that
18 cannot be remedied by private parties acting alone without community redevelopment assistance;
19 and
20 WHEREAS, the Agency has acquired other real property in the Project Area; and
21 WHEREAS, on March 20, 2006, the Agency mailed a notice to the owner of record of the
22 real property located within the Project Area as described and informed such persons that the
23 Agency intended to appraise the property for possible acquisition; and
24 WHEREAS, the Agency retained the services of an appraiser to appraise the property and
25 the appraiser has reported an opinion of the fair market value of the improved property located at
26 1108 West 2nd Street, San Bernardino, CA 92410 (APN: 0138-301-07) (the "Property"); and
27
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1 WHEREAS, the Property is improved with a video store business and the improvements are
2 dilapidated, in disrepair and is another example of blight within the Project that is an impediment to
3 the revitalization of the Project Area; and
4 WHEREAS, based upon such real property appraisal report, the Commission authorized the
5 Agency to send a purchase offer and summary statement of valuation in conformity with
6 Government Code Section S 7626.2(b) to the owner of record, to attempt to purchase the Property at
7 the appraised value in lieu of condemnation, and on July 24, 2006, the Agency mailed a purchase
8 offer and summary statement efvaluation in conformity with Govemment Code Section S 7267.2(b)
9 to the owner of record of the Property based on the appraised value of the Property described in this
10 Resolution; and
11 WHEREAS, the Agency transmitted the offer to purchase the Property situated within the
12 Project Area, based on the appraised value on July 24, 2006, to the owner ofrecord of the Property
13 at the address on file with the office of the County Tax Assessor, as shown on the last equalized
14 county assessment roll and the owner of record, Belichefsky Children Family Trust (the "Property
15 Owner"), received the Agency's offer; and
16 WHEREAS, on or about August 16, 2004, the Agency considered and certified
17 Environmental Impact Report SCH#200303l072 (the "EIR") in llccordance with the California
18 Environmental Quality Act ("CEQA") for the Project Area, and the acquisition of Property
19 contemplated within the Plan and for the Project is consistent with the EIR; and
20 WHEREAS, the Agency has been in contact with the Property Owner since March 2001 to
21 August 2006 concerning the amendment to the RedevelopmeRt Plan for the Project Area, the Initial
22 Study, the EIR, participation in the Project Area, purchasing the Property, and participation in the
23 Project Area Committee ("PAC"); and
24 WHEREAS, the Property Owner never made a CEQA challenge and the time has expired to
25 do so; and
26 WHEREAS, the Property Owner has neither accepted the Agency Offer, or provided a
27 Counter Offer; and
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p-v,gendl5\Resoluticlns\Resolutions\2006\09.05'06 Belicliefsky - Uptown 110B West 2nd 5treec CDC Reso_doc
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1 WHEREAS, the Agency has not been able to satisfactorily complete a negotiated purchase
2 with the Property Owner to acquire the Property for community redevelopment purposes; and
3 WHEREAS, on August 17, 2006, a notice of intent to adopt this Resolution was mailed to
4 the Property Owner, Belichefsky Children Family Trust, at the address of record on file at the office
5 of the County Tax Collector and at the last known address for the Property Owner of the Property;
6 and
7 WHEREAS, on September 5, 2006, after not less than fifteen (15) days written notice to the
8 Property Owner of the Property, the Commission conducted a hearing for the purpose of affording
9 the Property Owner a reasonable opportunity to appear and be heard on the matters referred to in
10 Code of Civil Procedure Section 1240.030 and whether the Agency has met all other prerequisites
11 for the exercise of eminent domain to acquire the Property for the Project and community
12 redevelopment purposes; and
13 WHEREAS, the Commission has determined as a result of such hearing on September 5,
14 2006, that the public health, safety and welfare require the Agency to acquire the subject Property
15 for community redevelopment purposes and to facilitate.the Project.
16 NOW THEREFORE, BE IT RESOLVED THAT THE COMMISSION FINDS,
17 DETERMINES AND DECLARES AS FOLLOWS:
18
Section 1.
The information set forth in the above recitals of this Resolution is true and
19 correct.
20
Section 2.
The real property to be acquired under the authority of this Resolution is
21 located in the Project Area in the City of San Bernardino, California, and is also known as 1108
22 West 2nd Street, San Bernardino, California 92410 (San Bernardino County Assessor Parcel Number
23 0138-301-07). The Property is more particularly described in the legal description attached as
24 Exhibit "A." The interest in the Property to be acquired consists of all of the fee simple absolute
25 title interest in the. Property, and all of the right, title and interest of each person and the Property
26 Owner including the acquisition of each and every possessory interest and all easements and
27 appurtenances to the Property.
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P:\Agendas\Resolutions\Resolutions\2006\09-QS.Q6 Belichefsky. Uptown 110& Wesl 2nd Slreel CDC Reso,doc
On August 17, 2006, the Agency transmitted a notice of the hearing to the
1
Section 3.
2 known owner of record (Belichefsky Children Family Trust) at 914 North Beechwood Avenue,
3 Rialto, California 92376.
4
Section 4.
The Commission acknowledges receipt of the written reports and information
5 relating to the Project Area, including the Staff Report, and the appraisal of the Property, and oral
6 reports and information submitted to the Commission during the course of the hearing conducted on
7 September 5, 2006.
8
Section S.
The Commission on behalf of the Agency finds and determines that the
9 hearing conducted by the Commission on this matter on September 5, 2006, was full and fair, and
10 that each interested person has been afforded a full and fair opportunity to present evidence and
11 testimony relating to assembly of land for the Project, and the matters described in Code of Civil
12 Procedure Section i240.030, and the acquisition of the Property, and all interests in it, by the
13 Commission for community redevelopment purposes by the exercise of eminent domain and other
14 relevant matters.
The Commission declares its intent to acquire the Property for the Project and
15
Section 6.
,
16 in furtherance of community redevelopment purposes in the name of the Agency in accordance with
17 the laws of the State of California including the Community Redevelopment Law and Health and
18 Safety Code Sections 33391 and 33492.40. The Commission further finds and determines that all 0
19 the prerequisites to the exercise of eminent domain by the Agency with respect to such acquisition
20 of the Property for the Project have been met.
21
Section 7.
In accordance with the provisions of Code of Civil Procedure Section
22 1245.230, the Commission finds, determines, and declares as follows:
23
(a)
The public interest, convenience and necessity require the acquisition of the Property
24 for the Project, as necessary to alleviate conditions of blight in the Project Area, which are
25 documented and described in more detail in the EIR, and to provide for the orderly redevelopment
26 of the Property and other real property included in the Project Area. The assembly and
27 redevelopment of the Property is necessary as the Project Area displays a number of conditions of
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P\Agendas\ResoJutiollJ\Resoknions\2006\09-OS-06 Bellchefsky. Uptown IIOS West 2nd Screet COC Resodot
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1 blight, including without limitation prevalence of absentee owner, high volume of code compliance
2 cases, crime statistics substantially higher than the City rate, the presence of old structures that show
3 signs of dilapidation and deterioration and small or substandard lot sizes within the Project Area,
4 including the subject Property, and a diverse pattern of land ownership which prevent or
5 substantially hinder the economically viable use of such real property in its present condition.
6 Acquisition and assembly of the Property for community redevelopment purposes, the Plan and the
7 Project, together with other lands already owned by the Agency in the Project Area, will foster the
8 elimination of blight and assist with the redevelopment of the Project Area, and assist with
9 elimination of blight in other lands in proximity to the Project Area.
10
(b)
The Project is planned or located in the manner that will be most compatible with the
11 greatest public good and the least private injury in light of the fact that the real property included in
12 the Project Area displays a number of symptoms of blight. The Project shall also facilitate the
13 completion of a land assembly program previously initiated by the Agency and foster the reuse of a
14 developed urban area that has stagnated in recent years under the burdens of economic
15 obsolescence, small lot size, diverse ownership, absentee owner, code compliance cases, and
16 inadequate public improvements.
17
(c)
The Property described in this Resolution is necessary for the Plan and the Project, as
18 its acquisition and reuse for the Plan and the Project is part of a neighborhood plan to eliminate
19 blight aRd provide for the redevelopment and improvement of the other lands owned by the Agency
20 within the Project Area.
21
(d)
The purchase offer required by Government Code Section 7267.2 has been mailed to
22 the owner of record of the Property by the Agency, and the Agency has not been successful in
23 acquiring the Property based upon the conditions contained within the offer. The Commission
24 deems it appropriate and necessary to approve the Agency acquisition of the Property for assembly
25 for the Project.
26
Section 8.
(a)
The law firm of Lewis Brisbois Bisgaard & Smith, LLP, as legal
27 counsel to the Agency ("Agency Counsel"), is authorized and directed to prepare, institute and
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PlAgendas\Resolutions\ResoIUlions\2006\09-OS-06 Belichefsky. Uptown 1108 West 2nd Sum CDC Reso.doc
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1 prosecute in the name of the Agency such proceedings in the court having jurisdiction, as may be
2 necessary for the acquisition of the Property.
3
(b)
The sum payable by the Agency as probable compensation for the acquisition of the
4 Property by eminent domain, as determined by the appraisal, may, in the discretion of Agency
5 Counsel, accompany the filing of the complaint and may be deposited as follows: (i) with the State
6 of California in the manner provided by law, or upon the recommendation of Agency Counsel to the
7 County Treasury; or (ii) at the election of the person(s) who may claim an interest in the Property to
8 be acquired by such condemnation proceedings, in such other manner as such interested person(s)
9 may request in writing, subject to the approval of the Executive Director and Agency Counsel.
10
(c)
Agency Counsel is also authorized, subject to the approval ofthe Executive Director,
11 to engage in settlement negotiations and, if possible, arrange for purchase of the Property in lieu of
12 condemnation at the appraisal price prior to or subsequent to filing a condemnation. complaint to
13 commence acquisition of the Property by eminent domain.
14
Section 9.
The Secretary of the Commission is authorized and directed to certify the
P\A~endas\Rewlulions\Resolulionsl1006\09-05-06 8elichefsky - UplOwn I ]08 West 2nd Slreet CDC Reso,doc
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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 1108 WEST 2ND STREET, SAN
BERNARDINO, CALIFORNIA (BELICHEFSKY - APN: 0138-301-07) IN
THE UPTOWN REDEVELOPMENT PROJECT AREA
PASSED, APPROVED AND ADOPTED this _ day of
,2006.
I CERTIFY that the foregoing Resolution was duly adopted by the Community
8
Development Commission of the City of San Bernardino at its
9 held on
10
11 Commission Members:
12 ESTRADA
13 BAXTER
14 VACANT
15 DERRY
16 KELLEY
17 JOHNSON
18 MC CAMMACK
19
20
meeting
, 2006 by the following vote, to wit:
Aves
Navs
Abstain
Absent
Secretary
21 The foregoing resolution is hereby approved this
day of
,2006.
22
23
24
25 Approved as to Form and Legal Content:
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27
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Patrick J. Morris, Chairperson
Community Development Commission
of the City of San Bernardino
By:
V~dJ!=
Agency Coun el
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