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HomeMy WebLinkAboutR17 -Community Development cn . OF SAN BERNARDI .0 - REQUE T FOR COUNCIL AC'. DN From: Kenneth J. Henderson, DirecR:!iC'O.-ADMtH:>eIlfi<t: MILES VICTORIAN HOUSE L Community Development I9B8 SEP I S AM ~ I G Date: September 15, 1988 Synopsis of Previous Council action: None. Recommended motion: That the Director of Community Development be authorized and directed to informally solicit bids from professional structural engineers in order to determine the feasibility of moving the Miles Victorian House to another suitable location. Further, that the Director of Community Development be authorized to explore the possibility of the City purchasing Heritage House parking lot from the Economic Development Council and report back to Council at a later date. Contact panon: Ken Henderson/Nestor Nazario Phone: 5065 Supporting data attached: Staff Report Ward: 1 FUNDING REQUIREMENTS: Amount: N/A Sou rca: ( ACCT. (ACCT. NO.) N/A DESCRIPTION) N/A Finance: C :11 Notes: 75.0262 Agenda Item No. (/7./) CI1''' OF SAN BERNARDI"~O - REQUI'-T FOR COUNCIL AC: ~N STAFF REPORT Recently, there has been significant publicity regarding the possible demolition of a residential structure, more popularly known as the Miles victorian House, located at 439 8th street. The Community College District purchased the land on which the House sits with the intention of developing the lot for District parking. As a result of it being reported that the Community College District was intent on demolishing the Miles Victorian House, a considerable number of events have occurred which have had the effect of confusing most, if not all, interested parties. The purposes of this report are to clarify the issue at hand, provide certain cost information and make a recommenda- tion which, hopefully, will allow the City and the District to successfully resolve this issue. As noted earlier, the popular perception is that Miles Victorian House is scheduled for demolition in the near future. In point of fact, the Community College District solicitation is for the sale and removal of the House from its current site, the intent being to have the House restored at another suitable location. The District has already received inquiries from parties interested in the purchase, moving and rehabilitation of the House. It is expected these parties will respond to the District's advertisement for bids for sale of the property. The second area of confusion concerns the legal owner of record of the property in question. Although the Mayor and Common Council have received correspondence to the contrary, our records (First American Title Property Profile) indicate that De Anza National Bank is the legal owner of record. De Anza loaned the District money to purchase the site and has an agreement with the District securing the loan. A third area of confusion is the perception that swapping land or parking lots with the Community College District would keep the House at its current site and solve related problems. The District has recently spent approximately $150,000 to renovate office space which, when finished, will open directly on the site where the House presently stands. By not being able to use the Miles House site for parking, the District encounters certain problems which are detailed later in this report. staff has collected certain preliminary cost information relating to alternatives the Mayor and Common Council will wish to consider (these alternatives assume City will bear all costs with one exception). This information is set forth below: 9/15/88 75.0264 staff Report - Miles Victorian House Cont. Page -2- Alternative Number 1: Restore House at present site. Estimated cost of rehabilitation: $200,000. Compensating Community Coilege District for land not used for parking: $60,000. Purchase of additional land for District parking and parking needed for Miles Victorian House when restored: unknown, but estimated at $150,000. Purchase Heritage House parking lot from Economic Development Council in order to retain lot for current use: $80,000. Estimated total for alternative number 1: $496,000. Alternative Number 2: Move House and restore at alternate site. Estimated cost of demolition (assumes structural engineer's report is negative and rejection of alternatives numbered 1, 2 and 5): $8,000. Purchase of Heritage House parking lot in order to retain for current use: $80.000. *Community College District cost. Estimated total of alternative number 4: $88,000. Alternative Number 5: Eminent Domain. Estimated cost of initiating eminent domain proceedings to acquire Mile Victorian House site: unknown, in-kind by city. Purchase of Heritage House parking lot in order to retain for current use: $80,000. Estimated total of alternative number 5: $80,000 plus unknown administrative expenses. In addition to the above information, the Mayor and Common Council should be aware that moving the Miles Victorian House virtually precludes official historical designation, notwith- 9/15/88 staff Report -- Miles Victorian House Page -3- standing the fact that rehabilitation of the home at its present site generates additional parking problems. Moreover, the parking lots for sale by Pacific Savings Bank (a total 60,000 square feet) are currently on the market for $10.00 per square foot, making the purchase of additional parking lots expensive at best. It is for these reasons and the cost of certain alternatives listed above that I recommend the approval of alternative number 3. Until specific data is obtained from a professional structural engineer regarding the feasibility of moving the Miles Victorian House, any other action by the Mayor and Common Council could be counter-productive. Inasmuch as the Community College District will be receiving bids on September 26, 1988 in connection with the purchase and removal of the Miles Victorian House, the information provided by a structural engineer, in conjunction with the District bid process might provide important information that will lead to the successful resolution of this issue. In addition, a separate, but related, recommendation is submitted requesting authorization to explore the possibility of the City purchasing the Heritage House parking lot to prevent the loss of fifty-four (54) parking spaces in the event the Economic Development Council sells the parking lot. If the Heritage lot was to be sold, the community will be faced with Heritage House becoming an existing non- conforming use. This prospect, coupled with the possibility of the Miles Victorian House remaining at its present site, will require a significant cash outlay to purchase the necessary parking. The reasons for this item being placed on the supplemental agenda of the Mayor and Common Council are that the request for Council consideration was made subsequent to the reqular agenda deadline and the Community College District bid opening is scheduled for September 26, 1988. In order for the City and the District to better coordinate a plan of action, the City must consider this matter on September 19, 1988. I recommend adoption of the form motion. Development KJH/lab/1137 9/15/88 ~~ ATTORNEY AT L-'CENED-Cn'l CU~Rl< f72A: ~~siP \2 p,:t2 .Yan- ~~, ~~ .92.(/(J/ ' Y4t- ;h~ JJ#-lJ/JJ September 9, 1988 Mayor and Council City of San Bernardino 300 North D Street San Bernardino, CA 92401 I ; I , Dear Ladies and Gentlemen: Almost three weeks ago I met with Mr. Maudsley and Mrs. Miller for a discussion regarding the house formerly owned by my parents at 439-8th Street. They told me that the city would like to restore the house and make it into a museum, open to the public. A room would beset aside, with some of my mother's personal belonging, copies of books she had written, etc. But to do this the city would have to persuade the college district, who bought the property for a parking lot, to trade lots and use a lot fac- ing D Street, with a walkway across the back of 439-8th Street, perhaps a little park with picnic tables. (I was also told that the whole plan would be imptractical if the house had to be moved because of the cost of removal). The whole idea sounded good to me, but' it would be contingent on obtaining the college district's approval, which I did not think would be easy to obtain. I was willing, if an agreement could be reached with the college dis- trict, to cooperate and donate any interest I had in the house. (I explained that the agreement of sale stated that, since the houses(s) were to be demolished, seller retained tthe right to remove any portions prior to close of escrow; that Dr. Roemmick had orally agreed to extend the period for removal beyond the close of escrow so as not to disturb the tenants). But I said I didn't want to lose the "salvage rights" and have the house destroyed because of inaction. The college district planned to demolish the house as soon as the tenants were out, presumably around the first of October. I thought the city would quickly find out whether the district would approve of the trade and whether the establishment of a museum was feasible within a week or so, although it would take longer than that to do everything. I made several calls to find out how things were progressing. I was also getting nervous since Dr. Roemick would be very cooper- ative one time (he arranged for me to meet Carl Viers) and talk the next time as though the house belonged to the district. Then I discovered that the college district was publishing a legal advertisement to get bids on buying or removing the house. So I made an agreement with Carl Diers, a cooy of which,is enclosed. 12-/ / ~~ ATTORNEY AT LAW As you can see, it allowed the city until September 23rd to make its deal, in which case Mr. Viers promised to return everything. That is the main reason for writing you--to giv~ you a definite date to do something. Incidentally, the college district now refuses to honor the oral agreement. Among other things it claims that DeAnza Bank is the owner, and the district has no authority (despite the legal adver- tisement) to allow anyone to take anything. Monday I plan to file an action against the college district (also naming the bank as a party, although I doubt that it cares one way or another), requesting declaratory relief and an injunction. Perhaps my law suit will make the college district more willing to cooperate with your plan of trading lots. However, I urge you to do whatever is necessary to reach an agreement with the college district--and anyone else involved in making the museum feasible. Please excuse any typing errors. I typed this myself in my secre- tary's absence. Very truly yours, ~~ Marshall Miles AGREEMENT This agreement 1S made on September 8, 1988 between Marshall Miles and Carl Viers with reference to the following facts: Marshall Miles sold the real property at 439-8th Street, San Bernardino, to San Bernardino Community College (hereafter referred to as the college) by agreement dated May 17, 1988. The ?greement provided, among other things, as follows: "Seller may remove portions of residences prior to close of escrow, since buyer intends to remove and destroy premises. Escrow shall close no later than August 1, 1988 .. Tenants will have a right to remain in prem1ses until October 1,1988." Although the right to remove portions of the residences was to be until close of escrow, Marshall Miles and the college, through Otto Roemmick, chancellor, orally agreed that the right would be extended beyond close of escrow until removal or destruction of the house so as not to interfere with the tenants, who were remaining after close of escrow. Car Viers wishes to purchase and remove the house. The college claims that it has a right to the house itself, while agreeing to honor the verbal agreement to extend the time for "stripping" the house beyond close of escrow; its primary concern is to get the house removed promptly so as to ;use the lot for parking. The City of San Bernardino has expressed a strong interest in restoring the house and making it into a museum open to the public, at least if it can persuade the college to let the house remain where it is and exchange lots. Marshall Miles would be willing to donate his interest in the house and fixtures if the city reaches an agreement with the college. However no agreement has been reached; the time for removal is drawing close, and the college has announced that it will advertise the house for sale. To avoid theft of the contents of the house or the destruction of the contents, along with the house, Marshall Miles and Carl Viers agree as follows: 1. At his own expense, Carl Viers may remove doors, hinges and easily accessible fixtures and furniture from the portions of thehouse not occupied presently by tenants, and to store them. 2. At his own expense, Carl Viers will return all items removed from the house if an agreemnt is reached by the city within 15 days to convert the house into a museum. f)r1 7""' ( tJ 3. Otherwise Marshall Miles will sell, and Carl Viers will buy, said fixtures and contents for $3000, or,if the house will go with it (and subject to obtaining a release from the college) for $10,000. &)fzf1hrUt 7lttt;, Marshall Miles Cad Ib/w Carl Viers