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HomeMy WebLinkAbout31-Public Works File No.: 15.05-209 . CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: ROGER G. HARDGRAVE . Subject: Acceptance of Bids for Sale of City Property and Accepting Oral Bids - 3:00 PM - Southeast corner of Olive Avenue and Ohio Avenue Dept: Public Works I Engineering ~(Q)~W Date: September 2, 1997 Synopsis of Previous Council Action: 02-19-96 - Authorization granted to proceed with the sale of City property located at the Southeast comer of Olive Avenue and Ohio Avenue. 05-20-96 - Resolution No. 96-132 was adopted establishing fair market value of City owned property at the Southeast comer of Ohio Avenue and Olive Avenue at $430,000. 06-03-96 - Acceptance of oral Bid in the amount of $430,000 for City owned property at the Southeast comer of Ohio A venue and Olive A venue contingent upon execution of a mutually acceptable sales agreement. 06-17-97 - Reject bid and return of deposit for City owned property at the Southeast comer of Ohio Avenue and Olive Avenue 09-02-97 - Presentation of sealed bids and acceptance of any oral bids relative to Bid Specification No. 15.05-209a was continued to the Council Meeting of September 15, 1997. Recommended Motion: That the bid from in the amount of $ for the City property located at the Southeast comer of Olive Avenue and Ohio Avenue, per Bid Specification No. 15.05-209a, be accepted and awarded, that the Mayor of the City of San Bernardino be authorized and directed to execute on behalf of said City, all documents, including Deed of Trust and other documents referenced in Bid Specification No. 15.50-209a, relative to the sale of said property, and that the Director of Public Works be authorized to do all things necessary to bring the sale of said property to a conclusion. cc: Fred Wilson, City Administrator Contact Person: Les Fogassy Phone: 5026 Supporting data attached: Staff Report, Written Bid. Bid Specification Ward: 5 FUNDING REQUIREMENTS: Amount: None Source (Acct. No.) N/A (Acet. Description) N/A Finance: Council Notes: Continued to 10 JOIt/'I7 q/JsJCI7 I Agenda Item No. 31 ~J ,CIT.Y OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT The City acquired this property through a judicial foreclosure sale, due to delinquent payments for Assessment District No. 995 (Verdemont Community Facilities District). The property is a 10.49 acre of vacant land located at the Southeast comer of Ohio Avenue and Olive Avenue. City Departments were notified of the pending sale and the only response was from the Fire Department indicating possible future use for a fire station. Tentative Tract No. 14193 has been approved for the parcel, and the one to the east. This Tract Map will subdivide the approximately 21 acres into 76 single family lots. Proposals were requested from three local appraisers, and the selection of Realco Consultants was made. The appraisal indicates the market value of the property to be $430,000. However, there are approximately $197,427 in liens and encumbrances on the parcel, which the City will pay from the proceeds of this sale through escrow. On May 20, 1996, Resolution No, 96-132 was adopted, giving Notice Inviting Bids and establishing the fair market value at the appraised amount of $430,000. No written bids were submitted, however, an oral bid was presented on behalf of the property owner owning the adjacent 10 acre parcel, contingent upon the reaching of a mutually acceptable sales agreement. After several weeks of negotiations the City and the bidder were unable to reach a mutual agreement and on June 17, 1996, authorization was given to reject the bid and return the bid deposit. The adjacent property owner and the City have been in negotiations regarding the development of this site, and have recently reached an acceptable agreement and now desire to bid on the sale of the property. Notice of sale was published in the Sun Newspaper on 8/22/97, and bids were to be submitted by 9:00 am 9/2/97 and presented at the Council Meeting of 9/2/97 at the hour of 3 :00 PM. One written bid, in the amount of $430,000 from Irving M. Feldkamp III was received and declared on September 2, 1997. The bid was accompanied by the required 10% deposit. The bidder also presented an addendum. A copy of the bid and the addendum are attached for reference. A first amendment to a settlement agreement between the City and Mr. Feldkamp, who is the owner of the adjacent property which is included in Tentative Tract No. 14193 is to be presented at the Council Meeting of September 15, 1997. Since the agreement and the Tentative Tract affect the City property as well, the presenting of written bids and acceptance of oral bids was deferred from September 2, 1997 to September 15, 1997. Although only one written bid was received, oral bids may also be presented. We recommend that the highest written bid, as presented, or the highest oral bid presented, if any, be awarded. . SALE OF CITY -OWNED PROPERTY, CITY OF SAN BERNARDINO VACANT PARCEL OF LAND LOCATED AT TIiE SOUTHEAST CORNER OF omo AND OLIVE AVENUE PER SPECIFICATION NO. IS.OS-209a In compliance with Specification No. IS.OS-209a, concerning the sale of the above City-owned property, the following bid is submitted: Four hundred thirty thousand Dollan ($ 430.000 ), payable as follows: $ Forty three thousand to be deposited into escrow prior to close of escrow, and the balance to be paid as follows: annual I monthly payment(s) of $ plus interest at the rate of % per annum on the unpaid balance, or as follows: In accordance with paragraph nine and addendUDI to bid attached. Attached is a casbier's cbeck payable to the CITY OF SAN BERNARDINO, in an amount 0qua1 to at least ten pen:enl (10%) of the above bid, which 1 understand will be returned without interest ifl am not the successful bidder as determined by the Mayor and Common Council of the City of San Bernardino. Submission of this bid signifies that 1 understand and concur with the provisions outlined in Specification No. IS.OS-209a and that 1 understand the subject property is being sold in an "AS-IS" condition. Irving H. Feldkamp. III. D.D.S. PRINTED NAME OF BIDDER ~~ 6 P.O. Box 6649 MAILING ADDRESS (909 ) 888-6238 TELEPHONE NO. San Bernardino. CA 92412 CITY, STATE, ZIP CODE Sealed bids, submitted on this official Bid Form, will be received until 9:00 a.m., September 2, 1997, at the office of the Director of Public Works, 3rd Floor, City Hall, 300 N. "0" Street, San Bernardino, California. 92418, at whicb time they will be publicly opened, examined and declared. NOTE: BIDS WILL NOT BE ACCEPTED UNLESS ALL BLANKS HAVE BEEN FILLED IN. ALL SEALED BIDS MUST HAVE THE FOLLOWING INFORMATION ON THE LOWER LEFT-HAND OF THE BID ENVELOPE: SEALED BID SALE OF CITY PROPERTY SPECIFICATION NO. 15.05-209. '. ADDENDUM TO OFFICIAL BID FORM APN No. 0261-082-01 PER SPECIFICATION NO. 15.05-209a Irving M. Feldkamp, III, D.D.S. offers to purchase the property delineated as APN No. 0261-082-01 based on paragraph 9 of the Notice of Sale with the foIlowing modifications: 1. Offer subject to review and approval of a current title report within 15 days after receipt by buyer. 2. Approval and execution offirst amendment to mutual release and settlement agreement, amended stipulation for entry of judgment, purchase and sales agreement and escrow instructions. 3. Successful extension of tentative tract map 14193 to October 9, 1998. 4. Liquidated damages shaIl only apply subsequent to the parties entering into a mutually accepted purchase agreement, first amendment to mutual release and settlement agreement and judgment on stipulation for entry of judgment and breach of terms and conditions by the buyer. Deposit amount fuIly refundable on failure of sale of conditions. CITY OF SAN BERNARDINO SPECIFICATION NO. 15.05-209a NOTICE OF SALE OF REAL PROPERTY: VACANT PARCEL OF LAND LOCATED AT THE SOUTHEAST CORNER OF OHIO AVENUE AND OLIVE AVENUE SAN BERNARDINO, CA REQUIREMENTS OF BIDDING AND SALE NOTICE IS HEREBY GIVEN inviting sealed bids for the sale of City owned property, as authorized by action of the Mayor and Cornmon Council of the City of San Bernardino. 1. LOCATION AND DESCRIPTION OF PROPERTY TO BE SOLD: (A) ProDertv Location: The subject property consists ofan approximately 10.4 acre vacant parcel of land, generally located between at the Southeast comer of Ohio Avenue and Olive Avenue in the City of San Bernardino, California, referred to as Assessor's Parcel 0261-082-01 and more fully described in the Preliminary Title Report, a copy of which is attached as Exhibit "A". (8) Zoning and Use: The subject property is currently zoned as RS (Residential Suburban) as shown on the City's General Plan Map. The property is currently undeveloped, but Tentative Tract Map 14193 has been approved for this parcel, which also encompasses the 10.4 acre parcel easterly of the subject parcel. This Tract Map will subdivide the approximately 21 acres into 76 single family lots. (C) Condition ofProDertv: The subject property is being sold "AS IS", subject to conditions set forth in Paragraph 9 below. 2. MINIMUM BID: The rninimum acceptable bid, for said real property is $430,000. 3. INSPECTION: The subject property may be inspected by prospective bidders at will. 4. SEALED BIDS: Sealed bids, submitted on the Official Bid Form attached, will be received in the Office of the Spec209a 08-18-97 I Director of Public Works, Third Floor, City Hall, 300 North "0" Street, San Bernardino, California, until the hour of 9:00 a.m., September 2, 1997, at which time all bids received will be publicly opened and declared. All bids must be accompanied by a cashier's check in an amount of at least 10% (TEN PERCENT) of the amount bid. The results of said bidding shall be submitted to the Mayor and Common Council at regular Council meeting of September 2, 1997, at the hour of 3 :00 p.m. All bids submitted must conform to the specifications as set forth herein. 5. ORAL BIDS: Oral bids may be made at the Council Meeting on the date and time stated above. Oral bids may be received in $10,000 increments for the outright purchase of the property, provided that the initial oral bid shall be an amount not less than the highest sealed bid plus $10,000. In the event ofa successful oral bid, a cashier's check in an amount of at least 10% (TEN PERCENn of the bid amount shall be deposited with the City Clerk prior to the end of said meeting, or as otherwise determined by the Mayor and Common Council. 6. UNSUCCESSFUL BIDS: All sealed bid deposits of unsuccessful bidders will be promptly returned, without interest, after determination of the successful bidder by the Mayor and Common Council, or upon rejection of all bids. 7. REJECTION OF BIDS: The mayor and Common Council shall have the right to reject any and all bids. 8. TERMS The City will consider terms for a portion of the total amount bid, subject to the conditions set forth in Paragraph 9 below. 9. SUCCESSFUL BIDDER: The successful bidder, as determined by the Mayor and Common Council, will be evaluated on the basis of purchase price bid and other factors including amount and length of terms, if any, interest rate, and qualifications of the bidder. In the event of two or more equal bids, the City reserves the right to Spec209a 08-18-97 2 select the bidder based on the most favorable terms and qualifications of the bidder. The successful bidder will be required to execute a mutually acceptable purchase agreement and to enter into escrow within 10 (TEN) days after said determination of the successful bidder. The escrow instructions shall include, but not be limited to : (A) The recording of the Grant Deed from the City, and the closing of escrow within sixty (60) days, or as otherwise mutually agreed upon. (B) The Tentative Tract Map referenced in IB above, must have final approval, or extended if possible, by September 30, 1997. The purchase price is payable as follows: $197,427.15 will be paid proportionately from the development of 42 lots of the 76 lots that will result in the final recording of said Tract Map, that are within the parcel of land being sold herewith, at the rate of $4,700.65 per lot. The remainder of the minimum bid of$430,000, which is $232,572.85, will be considered to have been paid when street improvements on Olive Avenue and Ohio Avenue, adjacent to and along the Tentative Tract are completed. Any amount bid over the minimum bid of $430,000 will be deposited into escrow. The required bid deposit may be applied as credit towards the payment of back taxes as referenced in paragraph "D" below. Any remainder may be applied as credit towards a reduction of the $197,427.15. (C) Title Policy fees shall be paid by the City. Escrow, and all other fees and closing costs, except as set forth in Paragraph D below, shall be split evenly between the City and the successful bidder. (0) Back taxes of approximately $35,000 is owed as County general property taxes and override taxes, plus an additional amount of approximately $4,320 for Assessment District 987, through the end of August, 1997. The successful bidder shall pay all such taxes and assessments upon the close of escrow, which shall be credited towards a reduction of the $197,427.15. Spec209a 08-18-97 3 (E) In the event the purchaser retains the services of a Broker, any fees and commissions shall be paid by the purchaser, over and above the bid amount The City does not intend to retain the services of a Broker for this transaction. (F) In the event of any failure by the successful bidder to execute and comply with the conditions as set forth herein, the deposit made by the successful bidder may be retained by the City as liquidated damages, and not as a penalty in the event of any failure on the part of the successful bidder. Spec209a 08-18-97 4 EXHIBIT "A" 219587 THE FORM OF POLICY OF TITLE INSURANCE CONTEMPLATED BY TIllS REPORT IS: TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN: CITY OF SAN BERNARDINO THE ESTATE OR INTEREST IN THE LAND HEREINAFTER. DESCRIBED OR REFERRED TO COVERED BY TIllS REPORT IS: A FEE THE LAND REFERRED TO IN TIllS REPORT IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN BERNARDINO, AND IS DESCRIBED AS FOLLOWS: THE NORTHWESTERLY 1/4 OF BLOCK 55 OF THE LANDS OF IRVINGTON LAND AND WATER COMPANY, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 3 OF MAPS, PAGE 9, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT IN THE NORTHERLY LINE OF SAID BLOCK 55, LOCATED MIDWAY BETWEEN THE NORTHEASTERLY CORNER AND THE NORTH-WESTERLY CORNER OF SAID BLOCK; THENCE WESTERLY ALONG THE NORTHERLY LINE OF SAID BLOCK 55 TO THE NORTHWESTERLY CORNER THEREOF; THENCE SOUTHERLY ALONG THE WESTER.L Y LINE OF SAID BLOCK 55 TO A POINT MIDWAY BETWEEN THE NORTHWESTERLY CORNER AND THE SOUTHWESTERLY CORNER OF SAID BLOCK 55; THENCE AT RIGHT ANGLES EASTERLY ALONG THE EASTERLY AND WESTERLY CENTER LINES OF SAID BLOCK 55 TO A POINT MIDWAY BETWEEN THE EASTERLY AND WESTERLY LINES OF SAID BLOCK; THENCE NORTHERLY ALONG THE NORTHERLY AND SOUTHERLY CENTER LINES OF SAID BLOCK 55 TO THE POINT OF BEGINNING. SAID TRACT OF LAND CONSISTING OF LOT 2 AND PORTIONS OF LOTS 1 AND 3 OF SAID BLOCK 55. AT THE DATE HEREOF EXCEPTIONS TO COVERAGE IN ADDmON TO THE PRINTED EXCEPTIONS AND EXCLUSIONS IN SAID POLICY FORM WOULD BE AS FOLLOWS: 1. GENERAL AND SPECIAL TAXES FOR THE FISCAL YEAR 1996-97, NOW A LIEN NOT YET PAYABLE. 2. GENERAL AND SPECIAL TAXES FOR THE FISCAL YEAR 1995-96: FIRST INSTALLMENT: $8,422.27 DELINQUENT. TOTAL AMOUNT $9,264.51 SECOND INSTALL'VtENT: $8,422.24 CODE 7010. PARCEL NO. 261'{)82'{)1 TAX BILL NO. 950222336 EXEMPTION: NONE Preliminary Report PAGE 2 219587 3. TAX-DEFAULTED GENERAL AND SPECIAL TAXES FOR THE FISCAL YEAR 1990-91. AND SUBSEQUENT YEARS. AMOUNT TO REDEEM PRIOR TO MARCH 31, 1996. 5185,836.97. (APN: 261-082-01) 4. THE LIEN OF SUPPLEMENTAL TAXES, IF ANY. ASSESSED PURSUANT TO CHAPTER 3.5 COMMENCING WITH SECTION 75 OF THE CALIFORNIA REVENUE AND TAXATION CODE. 5. THE LIEN OF AN ASSESSMENT FOR IMPROVEMENTS FOR CITY OF SAN BERNARDINO DISTRICT NO. 987, EVIDENCED BY NOTICE OF ASSESSMENT RECORDED AUGUST I, 1991. IN BOOK 63, PAGES 53 TO 72. INCLUSIVE. OF ASSESSMENT MAPS. AN ACTION STARTED JANUARY 24, 1994. IN THE SUPERIOR COURT OF THE COUNTY OF SAN BERNARDINO, CASE NO. SCV 10177. PLAINTIFF: CITY OF SAN BERNARDINO, A CALIFORNIA MUNICIPAL CORPORATION VS. DEFENDANT: SAN BERNARDINO S.B. FIVE. LIMITED PARTNERSHIP. ET AL TO FORECLOSE A LIEN ON DELINQUENT SPECIAL TAXES LEVIED WITHIN THE CITY OF SAN BERNARDINO ASSESSMENT DISTRICT NO. 987. NOTICE OF PENDENCY OF SAID ACTION WAS RECORDED FEBRUARY 10,1994, INSTRUMENT NO. 94-056850, OFFICIAL RECORDS. 6. RIGHTS OF THE PUBLIC OVER ANY PORTION OF SAID LAND LYING WITHIN THE BOUNDARIES OF ANY ROAD. STREET OR HIGHWAY. 7. AN EASEMENT FOR THE HEREINAFTER SET FORTH SPECIFIC PURPOSE AND INCIDENTAL PURPOSES, RECORDED IN BOOK 34, PAGE 196, OF DEEDS. SAID EASEMENT IS FOR PIPE LINES AND CANNOT BE LOCATED FROM THE RECORD. SAID EASEMENT WAS RESERVED BY JOHN HANCOCK BY SUCH DOCUMENT. REFERENCE IS HEREBY MADE TO THE RECORD OF SAID DOCUMENT FOR FURTHER AND OTHER PARTICULARS. Preliminary Report PAGE 3 . 219587 8. NOTE 1: THIS IS A STANDARD FORM REPORT ONLY. IT WILL BE SUPPLEMENTED TO REFLECT SUCH ADDITIONAL MATTERS AS ARE DISCLOSED BY OUR FIELD INVESTIGATION AND EXTENDED COVERAGE SURVEY SUPPLIED BY THE CUSTOMER. IN ORDER TO AVOID ANY LAST MINUTE DELAY, SAID SURVEY SHOULD BE SUBMmED WELL IN ADVANCE OF THE CONTEMPLATED CLOSING DATE, BECAUSE THE FIELD INVESTIGATION IS NOT MADE UNTIL AFTER THE SURVEY IS RECEIVED AND EXAMINED. NOTE 2: THE EXTENDED COVERAGE POLICY TO BE ISSUED PURSUANT TO YOUR REQUEST WILL CONTAIN THE FOLLOWING IN SCHEDULE B, IN ADDITION TO OTHER MATTERS DISCLOSED BY SURVEY OF INVESTIGATION: WATER RIGHTS, CLAIMS OR TITLE TO WATER. GRC/SAH Preliminary Report PAGE 4 EXHIBIT "A" THE NORTHWESTERLY 1/4 OF BLOCK 55 OF THE LANDS OF IRVINGTON LAND AND WATER COMPANY. IN THE COUNTY OF SAN BERNARDINO. STATE OF CALIFORNIA. AS PER PLAT RECORDED IN BOOK 3 OF MAPS. PAGE 9. RECORDS OF SAID COUNTY. DESCRIBED AS FOLLOWS: BEGINNING AT A POINT IN THE NORTHERLY LINE OF SAID BLOCK 55. LOCATED MIDWAY BETWEEN THE NORTHEASTERLY CORNER AND THE NORTH-WESTERLY CORNER OF SAID BLOCK; THENCE WESTERLY ALONG THE NORTHERLY LINE OF SAID BLOCK 55 TO THE NORTHWESTERLY CORNER THEREOF; THENCE SOUTHERLY ALONG THE WESTERLY UNE OF SAID BLOCK 55 TO A POINT MIDWAY BETWEEN THE NORTHWESTERLY CORNER AND THE SOUTHWESTERLY CORNER OF SAID BLOCK 55; THENCE AT RIGHT ANGLES EASTERLY ALONG THE EASTERLY AND WESTERLY CENTER LINES OF SAID BLOCK 55 TO A POINT MIDWAY BETWEEN THE EASTERLY AND WESTERLY LINES OF SAID BLOCK; THENCE NORTHERLY ALONG THE NORTHERLY AND SOUTHERLY CENTER UNES OF SAID BLOCK 55 TO THE POINT OF BEGINNING. 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HARDGRAVE Subject: Acceptance of Bid for Sale of City Propmy and Accepting Oral Bids - 3:00 PM - Southeast :>ept: Public Works I Engineering comer of Olive Avenue and Ohio Avenue !late: August 29,1997 Synopsis of Previous Council Action: 02-19-96 - Authorization granted to proceed with the sale of City property located at the Southeast comer of Olive Avenue and Ohio Avenue. 05-20-96 - Resolution No. 96-132 was adopted establishing fair market value of City owned property at the Southeast comer of Ohio Avenue and Olive Avenue at $430,000. 06-03-96 - Acceptance of oral Bid in the amount of $430,000 for City owned property at the Southeast comer of Ohio Avenue and Olive Avenue contingent upon execution of a mutually acceptable sales agreement 06-17-97 - Reject bid and return of deposit for City owned property at the Southeast comer of Ohio Avenue and Olive Avenue ~ommended Motion: AUG 2 9 1997 That the presentation of sealed bids and acceptance of any oral bids relative to Bid Specification No. l5.05-209a be continued to the Council Meeting of September 15, 1997, at the hour of3:00 PM :c: Fred Wilson, City Administrator O~ :ontact Person: Les Fogassy 3upportlng data attached: Staff Report, Map Phone: 5026 Ward: 5 =UNDING REQUIREMENTS: Amount: None Source (Accl No.) N/A (Accl Description) N/A Finance: ::ouncll Notes: Previously - t,.4.5 1- tJ 'l/oz../1 7 9//5l/7 Agenda Item No. 31 --. -CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT \ The City acquired this property through a judicial foreclosure sale, due to delinquent payments for Assessment District No. 995 (Verdemont Community Facilities District). The property is a 10.49 acre of vacant land located at the Southeast comer of Ohio Avenue and Olive Avenue. City Departments were notified of the pending sale and the only response was from the Fire Department indicating possible future use for a fire station. Tentative Tract No. 14193 has been approved for the parcel, and the one to the east. This Tract Map will subdivide the approximately 21 acres into 76 single family lots. Proposals were requested from three local appraisers, and the selection of Realco Consultants was made. The appraisal indicates the market value of the property to be $430,000. However, there are approximately $197,427 in liens and encumbrances on the parcel, which the City will pay from the proceeds of this sale through escrow. On May 20, 1996, Resolution No. 96-132 was adopted, giving Notice Inviting Bids and establishing the fair market value at the appraised amount of $430,000. No written bids were submitted, however, an oral bid was presented on behalf of the property owner owning the adjacent 10 acre parcel, contingent upon the reaching of a mutually acceptable sales agreement. After several weeks of negotiations the City and the bidder were unable to reach a mutual agreement and on June 17, 1996, authorization was given to reject the bid and return the bid deposit. The adjacent property owner and the City have been in negotiations regarding the development of this site, and have recently reached an acceptable agreement and now desire to bid on the sale of the property. Notice of sale was published in the Sun Newspaper on 8/22/97, and bid were to be submitted by 9:00 am 9/2/97 and presented at the Council Meeting of 9/2/97 at the hour 00 :00 PM. The Settlement Agreement between the adjacent property owner and the City will be presented on the September 15, 1997 Council Meeting. Since this agreement affects the City property being proposed for sale, we recommend that the bid results and acceptance of oral bids be continued to the meeting of Septenlber15,1997 URGENCY: The results of bidding and acceptance of oral bids was set for 3:00 pm on 9/2/97 in the bid specifications.