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ORIGINAL
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Dept: Development Services
Subject: Authorization to Proceed and Adopt
Resolution determining fair market value and
setting a public hearing for September 15,
2008 at 4:00 p.m. relative to the sale of City
owned real property located at the northwest
comer of Base Line Street and "H" Street
(APN 0145-221-09).
MCC Date: 09-02-2008
From: Valerie C. Ross, Director
Date: August 28, 2008
File No.14.05-257
Synopsis of Previous Council Action:
None
Recommended Motion:
1. That the Director of Development Services be authorized to proceed with sale of City owned
real property located at the northwest comer of Base Line Street and "H" Street (APN 0145-
221-09); AND
2. Adopt Resolution.
3. Authorize the Director of Finance to amend the FY 08-09 budget to add $630,000 into
revenue account 001-000-4926 and then to increase the General Fund reserve by $630,000.
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Valerie C. Ross
LASZLO "Les" FOGASSY
Contact person:
Staff Report, Maps,
Supporting data attached: Summary Letter, Reso.
Phone:
5026
Ward:
2
FUNDING REQUIREMENTS: Amount: None
Source: (Acct. No.) N/A
(Acct. Description)
Finance:
Council Notes:
;p 65"0 Za:::;B - .::5V~
Agenda Item No.
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
SUBJECT:
Authorization to proceed and adopt Resolution determining fair market value and setting a public
hearing for September 15, 2008, at 4:00 p.m. relative to the sale of City owned real property
located at the northwest comer of Base Line Street and "H" Street (APN 0145-221-09).
BACKGROUND:
In January, 2007, Development Services was notified by the State of California Department of
Transportation (Caltrans) of its intent to purchase City owned property located at the northwest
comer of Base Line Street and "H" Street. The property being proposed for acquisition by
Caltrans is currently the Fire Department's repair facility for its fire engines. The purpose of the
acquisition is to facilitate the widening project of the 1-215 freeway which will help reduce some
of the freeway congestion in this area.
In September 2007, Caltrans made an offer to purchase the property including all permanent
structures and improvements in the amount for $980,000. After review of the offer, staff was of
the opinion that the offer did not represent the full market value of the property, and the City
subsequently obtained its own appraisal from Smothers Appraisal Co. The $5,000 cost of the
appraisal was reimbursed to the City by Caltrans. The Smothers' appraisal made a determination
of value in the amount of $1,430,000 (summary letter is attached). A copy of the City's
appraisal was presented to Caltrans in November 2007. In response, Caltrans made an amended
offer in February 2008, in the amount of $1,338,750, without specifics as to why the offer was
less than the $1,430,000 appraisal submitted to Caltrans by the City.
Since the acquisition of this site also includes relocation of the fire repair facility, the City hired
California Properties Specialist, Inc. (CPSI), a firm that specializes in dealing with relocation
issues, to negotiate the sale and relocation issues on behalf of the City. Although Caltrans has
now agreed to the pay the full amount of the City's appraisal of $1,430,000, the relocation costs
are separately addressed in State law and Caltrans regulations. The City will be reimbursed by
Caltrans for all eligible relocation expenses that have been properly procured and documented by
the Fire Department. The initial relocation expenses will be paid directly by Caltrans on a
"claims" basis to thus eliminate the need for the City to advance relocation costs at this time.
The attached Resolution establishes the fair market value of $1,430,000 for the property, and sets
a public hearing for September 15, 2008, which must be held prior to approving the sale pursuant
to Government Code Section 37420, et seq. A Resolution approving the Right of Way Contract
will be submitted for your review for that agenda. The California Transportation Commission
adopted a Resolution of Necessity in May 2008, as the initial procedural step to acquire this
property, and based upon discussions with Caltrans staff on August 27, 2008, Caltrans has
neither filed nor served any complaint in eminent domain upon the City to proceed with the
acquisition of this property through court proceedings.
Upon approval of a Right of Way Contract, the City and Caltrans will enter into an escrow
agreement. Caltrans will pay all escrow and closing costs for this transaction and thus the City's
net revenue from the sale will be $1,430,000. Caltrans has also agreed to pay the City's
relocation costs on a "claims" basis thus eliminating the requirement for the City at this time to
advance any funds prior to the close of escrow and receipt of the purchase price proceeds by the
City from Caltrans.
FINANCIAL IMPACT:
Since all escrow and closing costs will be paid by Caltrans per the terms of the Right of Way
Contract, the City will receive the full $1,430,000 from the property sale. Since $800,00 of this
sales revenue was used to help balance the City's FY 08-09 budget, this amount has already been
factored into the final FY 08-09 budget.
The balance of the property sale revenue of $630,000 ($1,430,000 - $800,000 = $630,000) needs
to be included in the FY 08-09 budget so a budget amended is one of the recommended motions.
The $630,000 of additional revenue will be added to the $800,000 in account 001-000-4926
(Sale of Property Revenue). It is proposed that this $630,000 of added revenue be placed into
the City's budget reserve to be appropriated for a replacement fire maintenance facility when
needed.
RECOMMENDATION:
That authorization be given to proceed with the sale and adoption of the attached Resolution.
Attachments:
- Vicinity Map
- Site Map
- Appraisal Summary Letter
- Resolution
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No Scale
5th 51.
Mill 51.
LOCA TION OF
CITY PROPERTY PROPOSED
TO BE SOLD TO CAL TRANS
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VICINITY MAP
CITY OF SAN BERNARDINO
DEVELOPMENT SERVICES DEPARTMENT
REAL PROPERTY SECTION
PROPOSED SALE OF CITY PROPERTY
LOCA TED AT THE NORTHWEST CORNER
OF BASE LINE STREET AND "H" STREET
(FIRE REPAIR FACILITY) TO CALTRANS
Created by: LO:5z/o F oQO:5:5Y Date: 06-26-01
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CITY PROPERTY
PROPOSED TO BE SOLD
(35,636 sa. FT. t)
Par. LOT 8
BLK 36
R.S.B.
M.B. 7/2
(329.0")
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304.01'
BASE LINE
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CITY OF SAN BERNARDINO
DEVELOPMENT SERVICES
REAL PROPERTY SECTION
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DATE: r; 7-7 tJ
DATE:
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STREET
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SCALE: 1"= 1 00'
PROPOSED SALE OF CITY PROPERTY
LOCATED ON THE NORTHWEST CORNER
OF BASE LINE STREET AND "H"STREET
(APN 0145-221-09, FIRE REPAIR
FACILITY) TO CALTRANS.
FILE NO. : 15.05-257
SHEET 1 OF 1
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SMOTHERS APPRAISAL
J._ Smolben, MAl, ASA, SRA, SRlWA
ADDralser .. Coalllltant .. Co..emal .. RetideaUaI
1881 Commerceoler E.... Salle 106,
Sa. DemarcO.o, CA 91401
PhODe: (909) 1190-9616 r..: (909) 890-9605
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November 8, 2007
Laszlo Fogassy
City of San Bernardino Public Works Division
300 North "0" Street
San Bernardino, California 92418
RE: City of San Bernardino Public Works Division Property
(1) closed municipal fire station (2) metal repair garage,
1208 North "H" Street, San Bernardino, California 92410.
Assessor Parcel Nwnber: 0145-221-09.
Our File No.: 07082
Dear Mr. Fogassy:
Pursuant to your request, we have prepared an appraisal report of the above referenced property
for the pmpose of estimating the market value. The appraisal is according to the definitions of
market value as stated in this report, and subject to the asswnptions, limiting conditions and
certification contained within.
This is a Swnmary Appraisal Report as defined under provisions of the Appraisal Standards
Board of the Appraisal Foundation.
Market Value - Following is our opinion of the market value of the subject property, in the
condition observed and as it physically and legally existed, appraised with hypothetical condition
that there is no loss in value from soil contamination, as of July I, 2007:
51,430,000
ONE MILLION FOUR HUNDRED THIRTY THOUSAND DOLLARS
This Letter of Transmittal and Certification of Appraisal precedes the appraisal report, further
describing the subject and containing the reasoning and pertinent data leading to the estimated
value. Your attention is directed to the "General Underlying Assumptions and Limiting
Conditions" which were considCfed in this assignment and are at the end of the report. This letter
is considered an integral part of this report and the report is considered to be incomplete if viewed
separately from this letter.
Respectfully Submitted,
C__-)Mf' ~ 17~~/;>
James Smothers, MAl, ASA, SRA, SR/W A
Califomia Certified General Appraiser AGOO2102 (Expires 12/20/2008)
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RESOLUTION NO.
RESOLUTION OF THE CITY OF SAN BERNARDINO ESTABLISHING A FAIR
MARKET VALUE AND SALES PRICE OF $1,430,000 AND DECLARING THE
INTENTION OF THE CITY TO SELL CITY OWNED PROPERTY LOCATED AT THE
NORTHWEST CORNER OF BASE LINE STREET AND "H" STREET TO THE STATE
OF CALIFORNIA DEPARTMENT OF TRANSPORTATION RELATIVE TO THE
WIDENING OF THE 1-215 FREEWAY AND SETTING A PUBLIC HEARING FOR
SEPTEMBER 15, 2008 AT 4:00 P.M., TO CONSIDER SAID SALE.
WHEREAS, the City of San Bernardino, a municipal corporation, is the owner of the
hereinafter described parcel of real property, located on the northwesterly comer of Base Line
Street and "H" Street, in the City of San Bernardino, State of California, known as Assessor's
Parcel No. 0]45-221-09 and more fully described in Exhibit "A" attached hereto and made a part
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hereof;
WHEREAS, the State of California Department of Transportation ("CALTRANS")
desires to acquire said City owned parcel described herein relative to the widening of the 1-2] 5
Freeway; and
WHEREAS, the Mayor and Common Council of said City believe it is in the best
interest of the City that said parcel of real property be sold to CAL TRANS to facilitate the
widening of the 1-2]5 Freeway; and
WHEREAS, CAL TRANS has presented the City with an appraisal summary indicating
a fair market value ofNlNE HUNDRED EIGHTY THOUSAND DOLLARS ($980,000) for said
real property, including improvements and appurtenances including but not limited to two
structures, fencing, landscaping, parking and various permanent fixtures; and
WHEREAS, the City of San Bernardino hired Smothers Appraisa], a California Certified
General Appraiser, to prepare an appraisal of the City property described herein; and
08/27108
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RESOLUTION OF THE CITY OF SAN BERNARDINO ESTABLISHING A FAIR MARKET VALUE AND
1 SALES PRICE OF $1,430,000 AND DECLARING THE INTENTION OF THE CITY TO SELL CITY
2 OWNED PROPERTY LOCATED AT THE NORTHWEST CORNER OF BASE LINE STREET AND "H"
STREET TO THE STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION RELATIVE TO
3 THE WIDENING OF THE 1-215 FREEWAY AND SETTING A PUBLIC HEARING FOR SEPTEMBER
15,2008 AT 4:00 P.M., TO CONSIDER SAID SALE.
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determining the fair market value of said City property to be in the amount of ONE MILLION
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WHEREAS, Smothers Appraisal, has prepared and submitted an appraisal report
FOUR HUNDRED THIRTY THOUSAND DOLLARS ($1,430,000); and
WHEREAS, CAL TRANS has accepted the appraisal report of Smothers Appraisal as
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WHEREAS, pursuant to Section 2.65.050 of the San Bernardino Municipal Code, City
owned property may be sold to another public agency without the need for competitive bid, so
long as the sales price is not less than the fair market value of said real property.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
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18 owned real property located on the northwest comer of Base Line Street and "H" Street in the
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SECTION 1. The public interest and convenience require the sale of a portion of City
City of San Bernardino, more fully described in said Exhibit "A", and same is hereby declared as
surplus real property.
SECTION 2. It is therefore the intention of the Mayor and Common Council of the City
of San Bernardino to sell said real property to the State of California.
SECTION 3. The Mayor and Common Council do hereby find and determine that the
Fair Market Value and sales price of said real property ONE MILLION FOUR HUNDRED
THIRTY THOUSAND DOLLARS ($1,430,000) including improvements and fixtures; and
o 27 SECTION 4. The Mayor and Common Council of the City of San Bernardino do hereby set a
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08/27/08
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RESOLUTION OF THE CITY OF SAN BERNARDINO ESTABLISHING A FAIR MARKET VALUE AND
1 SALES PRICE OF $1,430,000 AND DECLARING THE INTENTION OF THE CITY TO SELL CITY
2 OWNED PROPERTY LOCATED AT THE NORTHWEST CORNER OF BASE LINE STREET AND "H"
STREET TO THE STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION RELATIVE TO
3 THE WIDENING OF THE 1-215 FREEWAY AND SETTING A PUBLIC HEARING FOR SEPTEMBER
15,2008 AT 4:00 P.M., TO CONSIDER SAID SALE.
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5 public hearing to be held on September 15, 2008, at the hour of 4:00 p.m. or as soon thereafter
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as the matter can be heard, in the Council Chambers of City Hall, 300 North "D" Street, San
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Bernardino, California, relative to the proposed sale.
SECTION S. Notice of the public hearing shall be published in The San Bernardino
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10 County Sun, a newspaper of general circulation, at least once prior to the public hearing and shall
11 be posted in at least 3 conspicuous places on the property at least (10) days prior to the hearing.
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SECTION 6. Written and oral protest to such sale may be submitted and shall be
received at or prior to the public hearing. Written protests may also be submitted to the City
15 Clerk's Office, City Hall, 300 N. "D" Street, San Bernardino, California, prior to the public.
hearing.
SECTION 7. It is the intent of the Mayor and Common Council to consider and
approve the sale of said property described herein, at said public hearing.
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08/27/08
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RESOLUTION OF THE CITY OF SAN BERNARDINO !,STABLlSHING A FAIR MARKET VALUE AND
SALES PRICE OF $1,430,000 AND DECLARING THE INTENTION OF THE CITY TO SELL CITY
OWNED PROPERTY LOCATED AT THE NORTHWEST CORNER OF BASE LINE STREET AND "H"
STREET TO THE STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION RELATIVE TO
THE WIDENING OF THE 1-215 FREEWAY AND SETTING A PUBLIC HEARING FOR SEPTEMBER
15,2008 AT 4:00 P.M., TO CONSIDER SAID SALE.
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and
Common Council of the City of San Bernardino at a
meeting thereof
held on the
day of
, 20_, by the following vote, to
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10 Council Members: AYES NAYS ABSTAIN ABSENT
11 ESTRADA
12 BAXTER
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BRINKER
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DERRY
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16 KELLEY
17 JOHNSON
18 MCCAMMACK
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City Clerk
The foregoing resolution is hereby approved this
day of
,20_.
PATRICKJ. MORRIS, Mayor
City of San Bernardino
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ES F. PENMAN, City Attorney
08/27/08
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EXHIBIT "A"
LEGAL DESCRIPTION
THOSE PORTIONS OF LOT 8 OF BLOCK 36 OF THE RANCHO SAN BERNARDINO IN
THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP
RECORDED IN BOOK 7 OF MAPS, PAGE 2, IN THE OFFICE OF THE COUNTY
RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS:
PARCEL ONE:
BEGINNING AT A POINT ON THE WEST LINE OF THE LAND DESCRIBED AS PARCEL
5 IN THE FINAL ORDER OF CONDEMNA TroN ENTERED AUGUST 22, 1958, IN THE
SUPERIOR COURT OF THE STATE OF CALIFORNIA IN AND FOR THE COUNTY OF
SAN BERNARDINO, CASE NO. 89930 (A CERTIFIED COPY THEREOF HAVING BEEN
RECORDED AUGUST 26, 1958, IN BOOK 4588, PAGE 241 OF OFFICIAL RECORDS OF
SAID COUNTY), DISTANT THEREON NORTHERLY 30.75 FEET FROM THE
SOUTHEAST CORNER THEREOF;
THENCE NORTHERLY ALONG THE WESTERLY LINE OF SAID PARCEL 5, A
DISTANCE OF 100.00 FEET; THENCE WEST, A DISTANCE OF 340.00 FEET, MORE OR
LESS, TO THE EASTERLY LINE OF THE LAND DESCRIBED AS PARCEL 3 IN THE
ABOVE REFERENCED ORDER OF CONDEMNATION;
THENCE SOUTHERLY ALONG SAID EASTERLY LINE OF PARCEL 3 TO ITS
INTERSECTION WITH THE END OF THAT CERTAIN CURVE DESCRIBED IN PARCEL
4 OF THE ABOVE REFERENCED ORDER OF CONDEMNATION DESCRI,BED THEREIN
AS "THENCE ALONG A TANGENT CURVE CONCAVE NORTHEASTERLY WITH A
RADIUS OF 35.00 FEET, THROUGH A CENTRAL ANGLE OF 880 34' 18" A DISTANCE
OF 54.10 FEET';
THENCE SOUTHEASTERLY ALONG SAID CURVE TO THE BEGINNING POINT
THEREOF AS DESCRIBED IN SAID PARCEL 4;
THENCE ALONG THE NORTHERLY LINE OF SAID PARCEL 4, SOUTH 840 08' 56"
EAST, A DISTANCE OF 304.41 FEET TO THE POINT OF BEGINNING.
PARCEL TWO:
BEGINNING AT A POINT, SAID POINT BEING THE NORTHEAST CORNER OF THAT
CERTAIN PARCEL OF LAND CONVEYED TO THE CITY OF SAN BERNARDINO, A
MUNICIPAL CORPORATION, BY DEED RECORDED JANUARY 5, 1962 IN BOOK 5625,
PAGE 356, OFFICIAL RECORDS OF SAID COUNTY, SAID POINT BEING 130.75 FEET
NORTHERL Y FROM THE SOUTHWEST CORNER OF THAT CERTAIN PARCEL OF
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LAND DESCRIBED AS PARCEL 5 IN THE FINAL ORDER OF CONDEMNATION
ENTERED AUGUST 22, 1958, IN THE SUPERIOR COURT OF THE STATE OF
CALIFORNIA, IN AND FOR THE COUNTY OF SAN BERNARDINO, CASE NO. 89930 (A
CERTIFIED COPY THEREOF HAVING BEEN RECORDED AUGUST 26, 1958, IN BOOK
4588, PAGE 241 OF OFFICIAL RECORDS OF SAID COUNTY);
THENCE NORTH ALONG THE WEST LINE OF SAID PARCEL 5, A DISTANCE OF 25.00
FEET;
THENCE WEST AND PARALLEL WITH THE NORTH LINE OF SAID CITY PROPERTY,
TO THE EAST LINE OF THE LAND DESCRIBED AS PARCEL 3 IN THE ABOVE
REFERENCED FINAL ORDER OF CONDEMNATION;
THENCE SOUTHERLY ALONG SAID EAST LINE OF PARCEL 3 TO THE NORTHWEST
CORNER OF SAID CITY PROPERTY;
THENCE EAST ALONG THE NORTH LINE OF SAID CITY PROPERTY, A DISTANCE OF
340.00 FEET, MORE OR LESS, TO THE POINT OF BEGINNING.
CITY PROPERTY
PROPOSED TO BE SOLD
(35,636 sa. FT. :1:)
Par. LOT 8
BLK 36
R.S.B.
M.B. 7/2
(329.04')
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BASE LINE
CITY OF SAN BERNARDINO
EVELOPMENT SERVICES
REAL PROPERTY SECTION
CREATED BY: I-k> fib". l' DATE:
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SCALE: 1"=100'
PROPOSED SALE OF' CITY PROPERTY
LOCATED ON THE NORTHWEST CORNER
OF BASE UNE STREET AND "H"STREET
(APN 0145-221-09. FIRE REPAIR
FACIUTY) TO CALTRANS.
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