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HomeMy WebLinkAboutR23- Economic Development Agency ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FROM: Ann Harris,Director SUBJECT: PUBLIC HEARING-SALE OF 701 Business Recruitment,Retention&Revital. NORTH"E"STREET I DATE: February 5, 1999 ORIGINAL-_____ Synopsis of Previous Commission/Council/Committee Action(s): On August 3, 1998,the Community Development Commission authorized staff to enter into an Exclusive Right to list and sell property located at 701 North"E"Street. On December 21, 1998,the Community Development Commission authorized staff to enter into escrow,prepare necessary documents and set a public hearing for the sale of Agency property located at 701 North"E"Street. On January 25, 1999,the Community Development Commission continued the Public Hearing to February 15, 1999 to allow sufficient time for public review of documents pertaining to sale of property located at 701 North"E"Street. Recommended Motian(s): OPEN PUBLIC HEARING CLOSE PUBLIC HEARING (Community Development Commission) MOTION A: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION APPROVING THE SALE OF CERTAIN PROPERTY.(701 NORTH"E"STREET) (Mayor and Common Council) MOTION B: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING THE SALE OF CERTAIN PROPERTY.(701 NORTH"E"STREET) Contact Person(s): Gary Van Osdel/ Ann Harris Phone: 5081 Project Area(s) Central City North(CCN) Ward(s): One(1) Supporting Data Attached: ®Staff Report©Resolution(s)O Agreement(s)/Contract(s) 0 Map(s)0 Letter/Memo FUNDING REQUIREMENTS Amount: $ Source: Budget Authority: SIGNATURE: /l Gary Osdel,Executi Director nn Hams,Director Ec omic Develop me Agency Business Recruitment,Reten&Revita Commission/Council Notes: i -----—----------------------—------------------------------------------------------------------------------------------------------------- ABH:lag:99-02-15 Sale of 701 COMMISSION MEETING AGENDA Meeting Date: 02/15/1999 Agenda Item Number: ECONOMIC DEVELOPMENT AGENCY SUMMARY/STAFF REPORT --------------------------------------------------------------------------------------------------------------------- Sale of 701 North ''E" Street I. INTRODUCTION This Summary Report has been prepared by the Redevelopment Agency of the City of San Bernardino (the"Agency") pursuant to Section 33433 of the California Health and Safety Code. This Summary Report sets forth certain details of the proposed sale by the Agency of real property with an approximately 33,497 square foot building thereon located at 701 North"E" Street, San Bernardino, California(the`Building"). The Building will he sold to Hao-Shih Hsu,Yin-Pen Ko Hsu and Hsus World, Inc., a California corporation("Developers"). The Building is in poor condition,needs rehabilitation and currently requires substantial Agency funds to maintain each month. The Agency desires to convey the Building to persons who will rehabilitate it. The Developers have offered to purchase the Building and redevelop it into a commercial office building. Based upon conversations with the Developers and a review of the Developer's plans for the Building, staff believes that the Developers can rehabilitate the Building and maintain it as a viable commercial office building. IL COSTS OF THE TRANSACTION TO THE AGENCY Pursuant to the Sale Escrow Instructions,the Developers will deposit$20,000 to escrow as a down payment and on closing pay the remaining balance of$780,000. The Agency is responsible for the standard owner sale costs. Specifically,at closing of escrow the Agency shall pay: (i)County and City transfer tax, (ii) costs of an Owner's Policy of ALTA Title Insurance, (iii)one-half of escrow fees and, if necessary, (iv) costs of preparation of a zone disclosure report. Based upon the foregoing it is estimated that closing costs to the Agency will be approximately $30,500. III. THE VALUE OF THE INTEREST BEING CONVEYED BY THE AGENCY The Building was part of several parcels purchased by the Agency in 1995. The allocated cost of the Building was $1,209,592.00 On the County of San Bernardino rolls the Building has an assessed value of$936,990. The appraisal, prepared by Inland Empire Consultants Phillip Gottfried Principal MAI, values the Building at between$750,000 and $780,000. Monthly maintenance on the Building is $1,000. Recently a 30,000 square foot building three blocks away sold for$325,000. ---- ----------------------------------------------------------------------------------------------------------------------------------- ABH:1ag:99-02-15 Sale of 701 COMMISSION MEETING AGENDA Meeting Date: 02/15/1999 Agenda Item Number: X23 Economic Development Agency Staff Report Sale of 701 North"E" Street February 4, 1999 Page Number-2- --------------------------------------------------------------------------------------------------------------------- 1. Highest and Best Use. Office use represents the highest and best use of the building. 2. Use With Conditions and Development Costs. The Building is being conveyed to the Developer at the appraised value for an office use. Thus,the consideration paid for the Building is not less than the fair reuse value of the Building at the use and with the covenants and conditions and development costs required for the Building. IV. REASONS SALE WILL ASSIST IN THE ELIMINATION OF BLIGHT The rehabilitation of the Building will help eliminate blighting conditions in the Central City North Redevelopment Project Area,will increase property values and will result in the creation of additional employment opportunities. V. CONFORMANCE WITH IMPLEMENTATION PLAN The Five Year Implementation Plan adopted by the Agency contains several broad operational goals and objectives. Among these are the following: 1. Creation of incentive programs for existing property owners to reinvest in their properties, including the utilization of Disposition and Development Agreements and Owner Participation Agreements. 2. Creation of viable housing options within the Redevelopment Project that span a range of incomes, including housing for the homeless and formerly homeless. 3. Creative implementation of catalyst projects which spur reinvestment on surrounding blocks. 4. Land acquisition for the creation of public facilities,which serve both the immediate neighborhood and the community at large. 5. Enhancement of ceremonial streets, which function as the focal points in their individual neighborhoods. 6. Continued preservation of historically significant structures. 7. Improvements to existing water and sewer lines, streets, sidewalks,parkways and lighting in the public right-of-way. ------------------------------------------------------------------------------------------------------------------------------------------- ABH:lag:99-02-15 Sale of 701 COMMISSION MEETING AGENDA Meeting Date: 02/15/19999 Agenda Item Number: yC23 Economic Development Agency Staff Report Sale of 701 North"E" Street February 4, 1999 Page Number-3- --------------------------------------------------------------------------------------------------------------------- 8. Continued participation in the enhancement of the public infrastructure system. 9. Acquisition and development of property to abate nuisance uses and provide for future development. The proposed sale of the Building will assist the Agency in meeting some of the objectives and goals of its Implementation Plan in the following ways: 1. The sale encourages a reinvestment and revitalization in the geographical area encompassing the Building by the addition of a new office building. 2. The provision of the office building and its occupancy by commercial tenants will increase employment in downtown San Bernardino,providing a catalyst for additional reinvestment by private enterprise in the surrounding area. 3. The office building will help to create additional job opportunities in the Community. Ann iffarris,Director Business Recruitment, Retention & Revitalization ------------------------------------------------------------------------------------------------------------------------------------------ ABH:lag:99-02-15 Sale of 701 COMMISSION MEETING AGENDA Meeting Date: 02/15/1999 Agenda Item Number: COPY Y 1 RESOLUTION NO. 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION APPROVING SALE OF CERTAIN PROPERTY LOCATED AT 701 3 NORTH "E" STREET 4 WHEREAS, the Community Development Commission 5 ("Commission") is the governing board of the Redevelopment Agency 6 of the City of San Bernardino (the "Agency") a body duly created 7 pursuant to the provisions of Sections 33000, E.i. §.Sg. of the Health 8 and Safety Code of the State of California; and 9 10 WHEREAS, the Agency currently owns certain property (the 11 "Property") which is located at 701 North "E" Street San 12 Bernardino, California; and 13 14 WHEREAS, the Property is in poor condition, needs 15 rehabilitation and currently requires substantial Agency funds to 16 maintain each month; and 17 18 WHEREAS, the Agency desires to convey the Property to 19 persons who will develop the Property; and 20 21 WHEREAS, Hao-Shih Hsu, Yin-Pen Ko Hsu and Hsus World, 22 Inc. , a California corporation ("Developers") have offered to 23 purchase the property and redevelop it into a commercial office 24 building (the "Building") ; and 25 26 WHEREAS, the Agency believes that Developers can 27 redevelop the Property and maintain the Building; and 28 - 1 - 1 WHEREAS, the Agency deems it desirable to enter into a 2 Purchase and Sale Agreement (the "Agreement") with the Developer in 3 the form as on file with the Secretary of the Agency and 4 incorporated herein by this reference; and 5 6 WHEREAS, the Agency and the City have held a duly noticed 7 public hearing in accordance with Sections 33431 and 33433 of the 8 California Health and Safety Code and the Agency has caused the 9 preparation of, and made available for public inspection, a report 10 including a summary of the transaction; and 11 12 WHEREAS, the development of the Property will help 13 eliminate blighting conditions in the Central City North 14 JRedevelopment Project Area, will increase property values and will 15 result in the creation of additional employment opportunities; and 16 17 WHEREAS, the Agreement, and the proposed development of 18 the Building is consistent with the Agency' s redevelopment plan 19 for the Central City North Redevelopment Project Area; and 20 21 WHEREAS, based upon the evidence and testimony submitted 22 to the Agency, the consideration paid for the Property is not less 23 than the fair reuse value of the Property at the use and with the 24 covenants and conditions and development costs required for the 25 Property; and C,�„. 26 (f``,,. 27 WHEREAS, the Agency deems it reasonable and appropriate 28 to approve the Agreement at this time. - 2 - I NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION 2 ACTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN 3 BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: 4 5 sPr ; on � . The foregoing Recitals are true and 6 correct and are incorporated herein by this reference. 7 8 2ec son 2 . The Agency hereby adopts the findings and 9 determinations as set forth herein and finds that the Agreement is 10 within the redevelopment goals and objectives of the Agency. 11 12 garr; nn 3. The Agency, having held a duly noticed 13 public hearing in accordance with Health and Safety Code Sections 14 33431 and 33433, finds and determines that the disposition of the 15 Property to the Developer, pursuant to the Agreement, will be of 16 benefit to the Agency and the City and will also promote 17 redevelopment within the Central City North Redevelopment Project 18 Area of the Agency. 19 20 section 4 . The Agency hereby approves the form of the 21 Agreement on file with the Secretary of the Agency and authorizes 22 the Executive Director and Secretary to execute the Agreement with 23 such changes as may be deemed appropriate by the Executive Director 24 and Agency Counsel. The Agency further authorizes the execution 25 and delivery by the Executive Director and Secretary of any and all 26 other documents, agreements, certificates, instruments of 27 conveyance, consents and notices which they may deem necessary or 28 advisable to carry out the transactions contemplated hereby. - 3 - i 1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION APPROVING SALE OF CERTAIN PROPERTY LOCATED AT 701 NORTH "E" STREET 2 3 Section 5. This Resolution shall take effect from and 4 after its passage and adoption. 5 6 I HEREBY CERTIFY that the foregoing Resolution was duly 7 adopted by the Community Development Commission of the City of 8 San Bernardino at a meeting thereof, held on 9 the day of 1999, by the following 10 vote, to wit: 11 Commission Members: AYES NAYS ABSTAIN ABSENT 12 ESTRADA LIEN 13 McGINNIS SCHNETZ 14 DEVLIN ANDERSON 15 MILLER 16 17 Secretary 18 The foregoing Resolution is hereby approved this day of 1999 . 19 20 Judith Valles, Chairperson Community Development Commission 21 of the City of San Bernardino w 22 Approve to ',form/njd 1 Pal content: 23 By: Agency Counsel % 24 SBEO\0001\3426 25 26 27 28 4 - ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FROM: Ann Harris,Director SUBJECT: PUBLIC HEARING-SALE OF 701 Business Recruitment,Retention&Revital. NORTH"E"STREET DATE: February 5, 1999 O FIT Synopsis of Previous Commission/Council/Committee Action(s):: \U/ On August 3, 1998,the Community Development Commission authorized staff to enter into an Exclusive Right to list and sell property located at 701 North"E"Street. On December 21, 1998,the Community Development Commission authorized staff to enter into escrow,prepare necessary documents and set a public hearing for the sale of Agency property located at 701 North"E"Street. On January 25, 1999,the Community Development Commission continued the Public Hearing to February 15, 1999 to allow sufficient time for public review of documents pertaining to sate of property located at 701 North"E"Street. Recommended Motion(s): OPEN PUBLIC HEARING CLOSE PUBLIC HEARING (Community Development Commission) MOTION A: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION APPROVING THE SALE OF CERTAIN PROPERTY.(701 NORTH"E"STREET) (Mayor and Common Council MOTION B: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING THE SALE OF CERTAIN PROPERTY.(701 NORTH"E"STREET) Contact Person(s): Gary Van Osdel/ Ann Harris Phone: 5081 Project Area(s) Central City North(CCN) Ward(s): One(1) Supporting Data Attached: ® Staff Report® Resolution(s)0 Agreement(s)/Contract(s)0 Map(s)O Letter/Memo FUNDING REQUIREMENTS Amount: S Source: Budget Authority: SIGNATURE: Gary YfittOsdel,Executo Director Ann Harris, Director Ec omic Developme Agency Business Recruitment,Reten&Revim Commission/Council Notes: ABH:lag:99-02-15 Sale of 701 COMMISSION MEETING AGENDA Meeting Date: 02/15/1999 Agenda Item Number: ECONOMIC DEVELOPMENT AGENCY SUMMARY/STAFF REPORT --------------------------------------------------------------------------------------------------------------------- Sale of 701 North "E" Street I. INTRODUCTION This Summary Report has been prepared by the Redevelopment Agency of the City of San Bernardino (the "Agency")pursuant to Section 33433 of the California Health and Safety Code. This Summary Report sets forth certain details of the proposed sale by the Agency of real property with an approximately 33,497 square foot building thereon located at 701 North"E" Street, San Bernardino, California(the`Building"). The Building will be sold to Hao-Shih Hsu, Yin-Pen Ko Hsu and Hsus World, Inc., a California corporation("Developers"). The Building is in poor condition, needs rehabilitation and currently requires substantial Agency funds to maintain each month. The Agency desires to convey the Building to persons who will rehabilitate it. The Developers have offered to purchase the Building and redevelop it into a commercial office building. Based upon conversations with the Developers and a review of the Developer's plans for the Building, staff believes that the Developers can rehabilitate the Building and maintain it as a viable commercial office building. II. COSTS OF THE TRANSACTION TO THE AGENCY Pursuant to the Sale Escrow Instructions, the Developers will deposit$20,000 to escrow as a down payment and on closing pay the remaining balance of$780,000. The Agency is responsible for the standard owner sale costs. Specifically, at closing of escrow the Agency shall pay: (i)County and City transfer tax, (ii) costs of an Owner's Policy of ALTA Title Insurance, (iii) one-half of escrow fees and, if necessary, (iv) costs of preparation of a zone disclosure report. Based upon the foregoing it is estimated that closing costs to the Agency will be approximately $30,500. III. THE VALUE OF THE INTEREST BEING CONVEYED BY THE AGENCY The Building was part of several parcels purchased by the Agency in 1995. The allocated cost of the Building was $1,209,592.00 On the County of San Bernardino rolls the Building has an assessed value of$936,990. The appraisal, prepared by Inland Empire Consultants Phillip Gottfried Principal MAI,values the Building at between$750,000 and $780,000. Monthly maintenance on the Building is $1,000. Recently a 30,000 square foot building three blocks away sold for$325,000. .....------------------------—----------------------------—-------—----—---—------------------------------------------------------- ABH:lag:99-02-15 Sale of 701 COMMISSION MEETING AGENDA Meeting Date: 02/15/1999 Agenda Item Number: .23 Economic Development Agency Staff Report Sale of 701 North"E" Street February 4, 1999 Page Number-2- --------------------------------------------------------------------------------------------------------------------- 1. Highest and Best Use. Office use represents the highest and best use of the building. 2. Use With Conditions and Development Costs. The Building is being conveyed to the Developer at the appraised value for an office use. Thus,the consideration paid for the Building is not less than the fair reuse value of the Building at the use and with the covenants and conditions and development costs required for the Building. IV. REASONS SALE WILL ASSIST IN THE ELIMINATION OF BLIGHT The rehabilitation of the Building will help eliminate blighting conditions in the Central City North Redevelopment Project Area,will increase property values and will result in the creation of additional employment opportunities. V. CONFORMANCE WITH IMPLEMENTATION PLAN The Five Year Implementation Plan adopted by the Agency contains several broad operational goals and objectives. Among these are the following: 1. Creation of incentive programs for existing property owners to reinvest in their properties, including the utilization of Disposition and Development Agreements and Owner Participation Agreements. 2. Creation of viable housing options within the Redevelopment Project that span a range of incomes, including housing for the homeless and formerly homeless. 3. Creative implementation of catalyst projects which spur reinvestment on surrounding blocks. 4. Land acquisition for the creation of public facilities, which serve both the immediate neighborhood and the community at large. 5. Enhancement of ceremonial streets,which function as the focal points in their individual neighborhoods. 6. Continued preservation of historically significant structures. 7. Improvements to existing water and sewer lines, streets, sidewalks, parkways and lighting in the public right-of-way. ------------—------------------------------------------------------------------------------------------- -------------------------------- ABH:lag:99-02-15 Sale of 701 COMMISSION MEETING AGENDA Meeting Date: 02/15/1999 Agenda Item Number: 23 Economic Development Agency Staff Report Sale of 701 North`B" Street February 4, 1999 Page Number-3- ------------------------------------------------------------------------------------------------------------------- 8. Continued participation in the enhancement of the public infrastructure system. 9. Acquisition and development of property to abate nuisance uses and provide for future development. The proposed sale of the Building will assist the Agency in meeting some of the objectives and goals of its Implementation Plan in the following ways: 1. The sale encourages a reinvestment and revitalization in the geographical area encompassing the Building by the addition of a new office building. 2. The provision of the office building and its occupancy by commercial tenants will increase employment in downtown San Bernardino,providing a catalyst for additional reinvestment by private enterprise in the surrounding area. 3. The office building will help to create additional job opportunities in the Community. Ann harris, Director Business Recruitment,Retention & Revitalization ------- ---------------------------------------------------------------------------------------------------------------------------- ABH:lag:99-02-15 Sale of 701 COMMISSION MEETING AGENDA Meeting Date: 02/15/1999 Agenda Item Number: COPY 1 RESOLUTION NO. 1999-31 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING SALE OF CERTAIN 3 PROPERTY LOCATED AT 701 NORTH "E" STREET 4 5 WHEREAS, the City of San Bernardino ("City") is a 6 municipal corporation and charter city organized and existing 7 pursuant to the Constitution of the State of California;- and 8 9 WHEREAS, the Redevelopment Agency of the City of San 10 Bernardino (the "Agency") is a body duly created pursuant to the 11 provisions of Sections 33000, �Q sea. of the Health and Safety Code 12 of the State of California; and 13 14 WHEREAS, the Agency currently owns certain property (the 15 "Property") which is located at 701 North "E" Street San 16 Bernardino, California; and 17 18 WHEREAS, the Property is in poor condition, needs 19 rehabilitation and currently requires substantial Agency funds to 20 maintain each month; and 21 22 WHEREAS, the Agency desires to convey the Property to 23 persons who will develop the Property; and 24 25 WHEREAS, Hao-Shih Hsu, Yin-Pen Ko Hsu and Hsus World, 26 Inc. , a California corporation ("Developers") have offered to 27 purchase the Property and redevelop it into a commercial office 28 building (the "Building") ; and - 1 - ' 1999-31 1 WHEREAS, the Agency believes that Developers can 2 redevelop the Property and maintain the Building; and 3 4 WHEREAS, the Agency deems it desirable to enter into a 5 Purchase and Sale Agreement (the "Agreement") with the Developer in 6 the form as on file with the Secretary of the Agency and 7 incorporated herein by this reference; and 8 9 WHEREAS, the City and the Agency have held a duly noticed 10 public hearing in accordance with Sections 33431 and 33433 of the 11 California Health and Safety Code and the Agency has caused the 12 preparation of, and made available for public inspection, a report 13 including a summary of the transaction; and 14 15 WHEREAS, the rehabilitation of the Building will help 16 eliminate blighting conditions in the Central City North 17 Redevelopment Project Area, will increase property values and will 18 result in the creation of additional employment opportunities; and 19 20 WHEREAS, the Agreement, and the proposed development of 21 the Building is consistent with the Agency' s redevelopment plan 22 for the Central City North Redevelopment Project Area; and 23 24 WHEREAS, based upon the evidence and testimony submitted . 25 to the City, the consideration paid for the Property is not less 26 than the fair reuse value of the Property at the use and with the 27 covenants and conditions and development costs required for the 28 Property; and 2 - 1999-31 1 WHEREAS, the City deems it reasonable and appropriate to 2 approve the Agreement at this time . 3 4 NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY 5 OF SAN BERNARDINO, DO HEREBY RESOLVE, DETERMINE AND ORDER AS 6 FOLLOWS : 7 Section 1 . The foregoing Recitals are true and 8 correct and are incorporated herein by this reference . 9 10 Section 2 . The City hereby adopts the findings and 11 determinations as set forth herein and finds that the Agreement is 12 within the redevelopment goals and objectives of the Agency. 13 14 Section 3 . T1e City, having held a duly noticed 15 public hearing in accordance with Health and Safety Code Sections 16 33431 and 33433, finds and determines that the disposition of the 17 Property to the Developer, pursuant to the Agreement, will be of 18 benefit to the Agency and the City and will also promote 19 redevelopment within the Central City North Redevelopment Project 20 Area of the Agency. 21 22 Section 4 . The City hereby approves the form of the 23 Agreement on file with the Agency Secretary. The City further 24 authorizes the execution and delivery by the Mayor, City 25 Administrator and City Clerk of any and all other documents, 26 agreements, certificates, instruments of conveyance, consents and 27 notices which they may deem necessary or advisable to carry out the 28 transactions contemplated hereby. 3 - 1999-31 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING SALE OF CERTAIN PROPERTY LOCATED AT 701 2 NORTH "E" STREET 3 Section 5 . This Resolution shall take effect from and 4 after its passage and adoption. 5 6 I HEREBY CERTIFY that the foregoing Resolution was duly 7 adopted by the Mayor and Common Council of the City of 8 San Bernardino at a joint regular meeting thereof, 9 held on the 15th day of February 1999, by the 10 following vote, to wit : 11 Council : AYES NAYS ABSTAIN ABSENT 12 ESTRADA a LIEN s 13 McGINNIS z SCHNETZ a 14 DEVLIN a ANDERSON a 15 MILLER a 16 17 Cit Clerk 18 The foregoing resolution Ls hereby approved this day of February 1999 . 19 20 GCLy Judith Valles' Mayor 21 City of San Bernardino 22 Approved as to form and legal content : 23 ) 24 By: T ty Attorney 25 26 SBE0/0001-169/D0C/3427.WPD 1/26/99 law 27 28 - 4 -