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Home My WebLink AboutR35-Economic Development Agency " ,. ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FROM: Maggie Pacheco, Director Housing and Conununity Development SUBJECT: REQUEST APPROVAL TO PURCHASE RESIDENTIAL SURPLUS PROPERTY FROM THE CITY OF SAN BERNARDINO WATER DEPARTMENT DATE: June 25, 2001 ORrl'\"'~L "il\Ail~1-i Synopsis of Previous Commission/Coullcil/Conuuittcc Action(s): On June 21, 2001, the Redevelopment Committee reconunended that this item be sent to the Conununity Development Commission for approval. Recommended !\1otion(s): (Communih' Develooment Commission) MOTION: That the Community Development Commission authorize the Redevelopment Agency to purchase the City of San Bernardino Water Department residential surplus property located at 1108 North Arrowhead Avenue and the concurrent resale of the property to ANR Industries under the perimeters of the Acquisition, Rehabilitation and Resale (ARR) Program Agreement. Contact Person(s): Gary Van OsdellMaggie Pacheco Project Area(s) N/A Phone: Ward(s): 663-1044 Two (2) Supporting Data Attached: It! Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) It! Map(s) It! Letter/Memo FUNDING REQUIREMENTS Amount: $ 30,000 Source: ARR Partner Private Resources SIGNATURE: Maggie co, Director Housing and Conununity Development Commission/Council Notes: GVO:MP:lag:07-09-01 Water Dept Property COMMISSION MEETING AGENDA Meeting Date: 07/09/2001 B~cr Agenda Item Number: ~ . ~ ECONOMIC DEVELOPMENT AGENCY STAFF REPORT Request Approval To Purchase Residential Surplus Property From The Citv Of San Bernardino Water Department BACKGROUND In 1995, the Water Department acquired the residential property at I 108 North Arrowhead Avenue (the "Property") as one of the well sites for the Newmark Superfund Operating Unit Remedial Action Project. The Property was purchased for $77,650 using funds from the U.S. Environmental Protection Agency (EPA). However, only a portion of the Property was needed for the well site and the remaining residential structure, a triplex, remains vacant and unused ("Residential Portion") by the Water Department. Although there presently sits a triplex on the Property, the Residential Portion is zoned for single family residential purposes, is in dilapidated condition and requires a tremendous amount of rehabilitation to bring into conformance with current city housing codes and converting it into a single family unit. CURRENT ISSUE The Residential Portion of the Property has been declared by the Water Department surplus property, and Water Department and Agency Staff have been exploring the highest and best use of the property, and the most effective and expedient manner to dispose of the Residential Portion (see attached Map of the Site). Accordingly, Staff has determined that it would be in the best interest of the City to have the Water Department sell the Residential Portion to the Agency, at a price not less than fair market value. The current AS IS appraised value is $30,000. The Agency will concurrently sell the Residential Portion to a pre-approved Acquisition, Rehabilitation and Resale (ARR) Program Partner, ANR Industries, the highest acceptable bidder for the price of $30,750. The other four ARR bidders ranged from $29,000 to $18,000. The highest bidder was Alvarez & Associates, at a price of$36,000, but no longer participates in the ARR Program. ANR will be required under the ARR Agreement to buy, rehabilitate the Residential Portion to ARR Rehab Standards, convert the triplex into a single family residential home and sell it to a first time homebuyer whose income does not exceed the 120% of median income for San Bernardino County. ANR proposes to invest in excess of $65,000 in rehabilitation, financing and management costs, planning & permit fees, etc. ANR Industries has been participating in the Agency's ARR Program from June of 1999 to the present. Since June 1999 ANR has purchased 104 HUD units from the Agency, rehabilitated and sold 60 units to first time homebuyers, and presently has 29 units available for sale and 15 are pending escrow closing. GVO:MP:lag:07-09-01 Water Dept Property COMMISSION MEETING AGENDA Meeting Date: 07/0912001 Age~da Item Number, Jlj5_ Economic Development Agency Staff Report Surplus Property- Water Department June 25, 2001 Page Number -2- ANR Industries is one of the Agency's most active, qualified and reputable contractors and has expended over $2.3 million in local rehabilitation costs and has transacted $10 million in real estate sales in the City. Due to the amount of ARR Housing projects undertaken by ANR,they have opened and established a local office in San Bernardino. Because the ARR Agreement is a current approved document between the Agency and ANR Industries it will be used to effectuate and consummate the sale, rehabilitation and resale of the Residential Portion. Any additional requirements will be supplemented via escrow instructions between the three parties. ENVIRONMENTAL This project activity is exempt from CEQA. FISCAL IMP ACT Aside from administrative oversight, there is no fiscal impact or costs to the Agency because ANR Industries will use private resources to pay for the purchase and rehabilitation of the Property. RECOMMENDATION That the Community Development Commission authorize the Redevelopment Agency to purchase the City of San Bernardino Water Department residential surplus property located at 1108 North Arrowhead A venue and the concurrent resale of the property to ANR Industries under the peri fthe Acquisition, Rehabilitation and Resale (ARR) Program Agreement. Maggie P eco, Director Housing and Community Development GVO:MP:lag:07-09-01 Water Dept Property COMMISSION MEETING AGENDA Meeting Date: 07/09/2001 Agenda Item Number, A..{$ ,. .. ~~ N.T.S. ~ @ EXHIBIT "0" Property Location Plat @ @ 41.25' 41.25' 46.50' @ w > <I; Cl <l: ~I 0 ~ @ Ul 0 ,....: 0:: n 0:: - 0 0 0 PARCEL 2 0 <I; ex) @ ex) m m 13050' o n 7.00' 11 TH STREET o n @ @ /. .. .- .- o 00 Z . :J> ~ ~ o =e ::r tD DI a. ?l tD :s C tD ~'" l.. .- .- o 00 Z . )> ~ "" o :e ::r tD IV a. ~ tD :s c tD "T!;" ~, J t ; ~~ ~. "I. {~,_" t li; ...: l- . ....".< . t I ti I', I . . ". ; ~ ~"l'k r "~.~'iJ , ~.1 r ..j III ~ <l , ~ i ~"'!""''':''''''':r~ r I I 1 I ~ I t I ' , ' r'l~ ~ I . i it; '-' I 'If", c , .,"i%', -- ~~-~~\, - , '! m \ l' 7~ uN: . ~ l~' . j<? t.;}. .~ ( ~.;;. t I.....!L i: '4) j I I, -- "'1 ~ f I ; .. " j i i ;:';.~.-ir;,- I I t r 1 I ,1 I /;, I .- .- \ 0 00 1 Z ~ . \ " ):- ~ I ~ 0 <- , =e c 'i'~ ::r :z tD ...", ~ QI Q) a. f ~ N ! 0 tD (:) ;:: :s ...... c tD , !" f ~ /. \ ) "71 .-. ~.- -- ~, -! r:?~! .- .- o 00 Z . )> ~ ~ o :e ::r tD IV a. ~ tD :s c tD .. I.. CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT INTEROFFICE MEMORANDUM TO: Board of Water Commissioners FROM: Bernard C. Kersey, General Manager SUBJECT: DECLARATION OF SURPLUS PROPERTY/SALE OF PROPERTY TO CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY 1108 NORTH ARROWHEAD AVENUE DATE: June 13, 2001 COPIES: Stacey Aldstadt, W. William Bryden BACKGROUND: In 1995, the Water Department acquired the property at 1108 North Arrowhead Avenue as one of the well sites for the Newmark Superfund Operating Unit Remedial Action project for a well site. The total purchase price was $76,500 plus closing costs for a total of $77,646.06. Since the property was acquired utilizing funds from the U. S. Environmental Protection Agency (EPA) , any disposal of the property is subject to their approval. When we acquired the property, only a portion of the property was needed for the well site. The residential structure and detached garage were left intact. The Water Department has been working for some time on the best method for the disposal of the property not needed for the well site. Discussions have been held about the possibility of transferring/selling the unused portion of the property we to the Economic Development Agency (EDA). I have been working with Maggie Pacheco, Director of Housing and Community Development, and a proposed program has been developed, The EDA operates a program to acquire and rehabilitate properties in the city through pre-qualified contractors, and those properties are sold to low to moderate homeowners. The program requires that the properties sold through this program be owner occupied. EDA also can provide down payment and closing costs assistance to a qualified homebuyer. The zoning for the property is single family residential, The property, when we acquired it was a four-plex. One of the units was demolished for the well site, and since the three-plex was / , I non-conforming use and vacant for longer than six months, it cannot be permitted aga~n except as a single-family dwelling unit. Graham Enterprises appraised the property for $30,000 as a single-family residential unit, The appraisal is low because of the condition of the property and the extensive rehabilitation that will be required to make it marketable. One of the re-qualified contractors has submitted a bid on the property for the rehabilitation offering to pay $30,750 for the property and performing approximately $70,000 in improvements to the property and then marketing the property for $110,000. The Water Department needs to either invest a substantial amount of money in the property or then offer it as surplus and sell at public bid or proceed with the sale of the property to the EDA. The property is boarded up at the current time is very unattractive in the neighborhood. Owner occupancy of the unit is preferred to a sale to any buyer who might then rent the unit. To effectuate the sale of the Bernardino Economic Development double or back-to-back escrow, property to the City Agency, we would enter of San into a Any and all proceeds from the sale of the property would be remi tted back to the U. S. Environmental Protection Agency less reasonable sales transaction costs. RECOMMENDATION: That the Board declare the property located at 1108 North Arrowhead Avenue as surplus to the Department, authorize the sale of the property to the City of San Bernardino Economic Development Agency, and authorize staff to submit the necessary information to the Mayor and Common Council for approval. Respectfully submitted, Bernard C. Kersey General Manager mka /,