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HomeMy WebLinkAboutR13-Redevelopment Agency REDl:::VELOPMENT AGENCY -Rlr.4UEST FOR t..JMMISSION/COUNCIL AC.'ION Fr()m: GLENDA SAUL Subject: H I SPAN I C CHAMBER OF COMMERCE, I NC. (PROPOSED SALE OF PROPERTY LOCATED AT 972 NORTH MT. VERNON AVENUE.) uept: Redevelopment Agency Date: JANUARY 15. 1986 Synopsis of Previous Commission/Council action: On November 18. 1985. the Mayor and Common Council considered this item and referred it to the Council's Ways and Means Committee for review. On December 2, 1985. the Mayor and Common Council adopted a resolution authorizing the execution of a grant deed conveying certain property to the Community Development Commission and the setting of a joint public hearing to consider the proposed sale of the property. Recommended motion: (COMMUNITY DEVELOPMENT COMMISSION) OPEN PUBLIC HEARING CLOSE PUBLIC HEARING RESOLUTION OF THE CITY OF SAN BERNARDINO APPROVING THE SALE OF THAT CERTAIN PARCEL OF PROPERTY IDENTIFIED AS APN 139-17-3-15. LOCATED AT 972 N. MT. VERNON AVENUE, BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO TO THE HISPANIC CHAMBER OF COMMERCE. CONTINUED ON NEXT PAGE... ~u'~r~~/ Signature Contact person: GI FNDA SAUI/KFN HFNDFRSON Phone: 383.5081 Supporting data attached: YFS/STAFF RFPORT Ward: 3 FUNDING REQUIREMENTS: Amount: $ N/A Project: N/A No adverse I mpact on City: Date: January 21, 1936 ncil Notes: Agenda Item No.l2- J..3 . (Community Development Commission) RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING EXECUTION OF A GRANT DEED FROM THE COMMUNTIY DEVELOPMENT COMMISSION TO HISPANIC CHAMBER OF COMMERCE CONCERNING PROPERTY LOCATED AT 972 NORTH MT. VERNON AVENUE IN THE CITY OF SAN BERNARDINO. CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT Over the several months, Agency staff have met with Councilwoman Estrada and members of the Hispanic Chamber of Commerce regarding the rehabilitation of the city-owned building at 972 North Mt. Vernon Avenue the Chamber currently leases from the City. These discussions have centered around the fact that the Chamber as the lessee cannot secure financing necessary to rehabilitate the building and make its use more productive for the residents of the City. The Chamber has a forty-nine (49) year lease with the City that began February 5, 1964 and ends February 5, 2013, with an annual rental rate of one dollar ($1.00) payable on or before July 1 each and every year during the term of the lease. The Chamber may use the building only for recreational, cultural and educational purposes and to advertise and publicize the advantages and resources of the City of San Bernardino. Mter the first meeting held in August of 1985, staff (along with staff from Building and Safety Department) visited the building in question and developed a rough estimate of the cost of rehabilitation totaling approximately $40,000. The rough estimate does not include the cost of a termite report, fumigation or the cost of an engineering report that would be required by the Building and Safety Department. Nor does the estimate include the cost of repairing any structural deficiencies that might be a part of the engineering report. In addition to meeting with Building and Safety, staff also consulted with the Planning Department and the following summarizes the findings to date: a) The current zoning is C-3 (for commercial use only). b) If the size of the existing building is increased by building on new square footage, plans will have to be submitted to the Development Review Committee (DRC). Once this occurs, the project, including the existing building, could be subject to any new building codes (Le., emergency egress, new electrical wiring structural reinforcement, etc.), planning and zoning ordinances (i.e., increased sewer capacity rights), and Public Works and Engineering requirements. c) If the existing building is rehabilitated within the confines of the existing structure, submittal of plans for review (plan check) by Building and Safety or submittal to Planning for review by DRC is usually not required. However, when making a pre-inspection, if the City Building Inspector requires an engineering report, then a review of plans addressing the correction of any structural deficiencies must be completed by the Department of Building and Safety. Mterwards, the approved corrections and plans must be incorporated in the scope of rehabilitation. In order to implement any approved rehabilitation activity, a number of actions must be taken by the Mayor and Common Council. The Mayor and Common Council have previously approved the grant deed conveyance of the property from the City to the Agency. The action immediately before the Community Development Commission is approving the sale of the land and building located at 972 North Mt. Vernon Avenue to the Hispanic Chamber of Commerce, Inc., for the express purpose of enabling the Chamber to secure a rehabilitation loan from the Agency under the City's Neighborhood Rehabilitation Program (NRP). 75-0264 Adoption of the resolution by the Mayor and Common Council and Community Development Commission would authorize the sale of the property in question to the Hispanic Chamber of Commerce and direct the Chairman and Secretary to execute appropriate documents to accomplish said sale. The Agency would, in turn, convey the property to the Hispanic Chamber of Commerce which will enable the Chamber to secure a rehabilitation loan from the Agency. 564L 1/86 SUMMARY OF FINANCIAL ASPECTS OF A PROPOSED SALE OF REDEVELOPMENT AGENCY OWNED REAL PROPERTY WITHIN N/A PROJECT AREA TO HISPANIC CHAMBER OF COMMERCE, INC. It is proposed that the REDEVELOPMENT AGENCY of the CITY OF SAN BERNARDINO, hereinafter referred to as "Agency", will sell to the HISPANIC CHAMBER OF COMMERCE, hereinafter referred to as "Offerors", that certain parcel of land further identified as APN 139-17-3-15 located at 972 North Mt. Vernon Avenue, as set forth on the map attached as Exhibit "B". Offerors wish to purchase the property from the Agency for the rehabilitation of an office building in order for the Hispanic Chamber to provide economic development to hispanic and female-owned businesses. Since the real property to be sold has been acquired through the use of tax monies, the following financial summary is hereby submitted in accordance with Section 33433 of the California Health and Safety Code. 1) Cost to Agency (Exhibit "A") a. Total cost to Agency for purchase of building: b. Sales price to Offerors: c. Estimated Agency share of closing cos ts : Cost of Sale: $ N/A $ 1. 00 $ N/A $102.57 2) The estimated value of the interest to be sold is: $91,500 3) There is a net cost to the Agency of $102.57. Because Offerors are a nonprofit organization, there will be no tax increment produced by the development. 4) A copy of the form of Disposition and Joint Development Agreement is available upon request, and is referred to as Exhibit "c" to this summary. 5) A Joint Public Hearing of the City of San Bernardino and the Community Development Commission is scheduled for 11:00 a.m., January 21, 1986, in the Council Chambers, City Hall, San Bernardino, California. GLENDA SAUL EXECUTIVE DIRECTOR January 13, 1986 562L 1 RESOLUTION NO. 2 RESOLUTION OF THE CITY OF SAN BERNARDINO APPROVING THE SALE OF THAT CERTAIN PARCEL OF PROPERTY IDENTIFIED AS APN 139-17-3-15, 3 LOCATED AT 972 NORTH MT. VERNON AVENUE, BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO TO THE 4 HISPANIC CHAMBER OF COMMERCE. 5 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF 6 SAN BERNARDINO AS FOLLOWS: 7 SECTION 1. Recitals. 8 A. The Community Development Commission of the City of San 9 Bernardino ("Commission") proposes to sell to the Hispanic Chamber 10 of Commerce ("Developer"), that certain parcel of property 11 identified as APN 139-17-3-15 located at 972 North Mt. Vernon 12 Avenue, which parcel is legally described as Lot 4 of Talley 13 Subdivision, as per plat thereof recorded in the Office of the 14 County Recorder, San Bernardino County, California, for the sum of 15 $1.00 which will be paid by the Developer in cash. 16 B. Notice of the time and place of hearing has been given as 17 required by law. 18 C. The Commission has made available for public inspection 19 and copying a summary of financial aspects of the proposed sale. 20 D. The summary of financial aspects represents that the fair 21 market value of the interest to be conveyed by Commission, 22 determined at the highest use permitted for such property, is 23 $91,500.00. 24 E. All hearings have been held as required by Health and 25 Safety Code Section 33433. 26 SECTION 2. Determination. Based upon the representations of 27 Commission, it is found and declared that the consideration for 28 the real property described above, in accordance with covenants 1 and conditions governing the sale, is less than the fair market 2 value of the property determined at the highest use permittted for 3 such property. Such lesser consideration is necessary in order 4 for Developer, a nonprofit corporation, to rehabilitate an office 5 building wherein economic development to hispanic and female-owned 6 businesses will be provided. 7 SECTION 3. Approval. The Mayor and Common Council of the 8 city of San Bernardino hereby approve the sale of said property 9 upon the terms and conditions set forth in this resolution and the 10 summary of financial aspects. 11 I HEREBY CERTIFY that the foregoing resolution was duly 12 adopted by the Mayor and Common Council of the City of San 13 Bernardino at a meeting thereof, held on 14 the day of , 1986, by the following vote, 15 to wit: 16 AYES: 17 18 19 20 21 22 23 of 24 25 Approved as to form: 26 27 28 Council Members NAYS: ABSENT: City Clerk The foregoing resolution is hereby approved this , 1986. day Mayor of the City of San Bernardino -2- RESOLUTION NO. 1 2 3 4 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING EXECUTION OF A GRANT DEED FROM THE COMMUNITY DEVELOPMENT COMMISSION TO HISPANIC CHAMBER OF COMMERCE CONCERNING PROPERTY LOCATED AT 972 NORTH MT. VERNON AVENUE IN THE CITY OF SAN BERNARDINO. BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF 5 THE CITY OF SAN BERNARDINO AS FOLLOWS: 6 SECTION 1. The Chairman and Secretary of the Community 7 Development Commission are hereby authorized and directed to 8 execute a grant deed, in form approved by Agency Counsel, 9 conveying all of that property located at 972 North Mt. Vernon 10 Avenue in the City San Bernardino, legally described as Lot 4 of 11 TALLEY SUBDIVISION, as per plat thereof recorded in the office of 12 the County Recorder of the County of San Bernardino, California, 13 to the Hispanic Chamber of Commerce, a California non-profit 14 organization, for the sum of one dollar ($1.00). The Commission 15 hereby finds and determines that such property is not needed by 16 17 18 19 20 21 22 23 24 the Community Development Commission for redevelopment purposes, and that sale of this property to the Hispanic Chamber of Commerce will facilitate economic development within the City of San Bernardino, and its redevelopment project areas, through the efforts of the Hispanic Chamber of Commerce in promoting economic activities of minority-owned businesses and women-owned businesses. Dated: Approved as to form: 25 AGENCY COUNSEL 26 27 2R By 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 231 24 25 261 27 2R The foregoing resolution was duly adopted by the following 1 2 3 4 5 6 vote, to wit: AYES: NAYS: ABSENT or 7 ABSTAIN: Members 2 RECORDING REQUESTED BY AND WHIEN ItIECORDI[D MAIL TO I 'I NAME: AOORIlS& CrTV 8< STATE:L -.J SPACE ABOVE THIS LINE FOR RECORDER'S USE .....IL. TAX nAn:..II:NTa TO 'I Documenlary transfer tax .m........................................_ o --Computed on full value of property conveyed, or o Computed on full value less liens & encumbrances remaining thereon at time of sale. I N.....E AOORE:.. CITV 8< 8T"'TE: ~ L -.J .................................h__ __............. Signature of declarlnt or altent determininl! tax . firm name o Unincorporated area 0 City of ................ Corporation Grant Deed L.2 FOR A VALUABLE CONSJDERATIOr\, receipt of which is hereby acknowledged. the Community Develop- ment Commission of the City of San Bernardino, a public body corporate, Whos!; busi!l~sS alld,ugri~ SU~~'1S20, City Hall, 300 North "D" Street, i\l~pdfr,J;,\l%Fg\loit!l,g bn,*I'Mtaw, ~hli'e'5ta~e;;l California hmhy GRA!l:T,S) to the Hispanic Chamber of Commerce, formerly known as the Mexican Chamber of Commerce, whose business address is 972 North Mt. Vernon Avenue, San Bernardino, California, 92411, a California non-profit corporation. the following described real property in the City of San Bernard ino county of San Bernard lno , state of California: Lot 4, of TALLEY SUBDIVISION, as per plat thereof recorded in the office of the County Recorder of said County; Subject, however, to the terms and conditions of that certain lease and agreement entered into on the 6th day of February, 1964, by and between the CITY OF SAN BERNARDINO as Lessor and MEXICAN CHAMBER OF COMMERCE as Lessee. The Grantee herein, HISPANIC CHAMBER OF COMMERCE, is one and the same entity as that formerly known as the MEXICAN CHAMBER OF COMMERCE, which holds a lease interest in this property by virtue of the lease dated the 6th day of February, 1964. The leasehold interest is now merged hereby into the fee interest in this property, and the lease is terminated. Dated January ,1986 ~QMMUNITY DEVE~OPM]':NT _C9MMISSION (SEE REVERSE SIDE FOR ACCEPTANCE OF THE CITY OF SAN BERNARDINO-- OF GRANT DEED) STATE OF CALlFOH\'1 ". } COl':\TY OF.~San __5ernard iDQ _____ SS. On------l.anu.a.J:..Y_~--19an---btfore m~. th... undl'r ~igntd. a ;\otaq' Pu[,]ir in and for !Oaid (ounty and State. personal!) appeared E.1rLyn Wi 1 rt'lY I known 10 me to be the-GR-a-i~nsidenl, and -Gl-eada-Sa--ul -. kno""n to me to I.... ~~-e-t.--a~Secretary of the rorporation Ihat ...~('(-U\cd thr wIthin In~lrum"n'L known to me 10 il... tn... ptr~on, ",hI) ...\t','ut..d the within Instrument on behalf of Ihe rorporalion ther...;n n~n,..d. and acknowledjl:td 10 me Ihal ~urh rorporation eXt'<:"uled thf' ....ilnin inslrument pursuant to its by.la....' or resolution of ils board of director~. By: E-1lLYN l.1IT C()Y. C.p:r.i.rman. Attest: CLENDt 8~ULt~retary FOR NOTARY SEAL OR STAMP Si~nature of !'Ootar}