HomeMy WebLinkAboutAS1- Public Works FILE NO. 15.06-051
VYY, OF SAN BERT RDINO REQUEST L,414 COUNCIL ACTION
From ROGER G. HARDGRAVE, Director Subject: TWO YEAR LEASE WITH OPTION TO PURCHASE
from Ayala family - City-owned property
Dept:public Works/Engineering located at 1505 North Waterman Avenue
Date: (old Gallo's Flowers and Gifts)
January 31, 1996
Synopsis of Previous Council action:
04/17/95 --- Authorization granted to obtain an appraisal for City-owned proper-
ty located at 1505 North Waterman Avenue - in "as is" condition,
and that matter be brought back to the Mayor and Council meeting of
May 15, 1995.
05/17/95 --- Resolution No. 95-159 approved giving notice inviting competitive
bids for sale of 1505 North Waterman Avenue by 06/27/95.
06/27/95 --- No bids received.
Recommended motion:
That the lease/option to purchase proposal from the Ayala family regarding
the property at 1505 North Waterman Avenue for the sales price of $120,000,
be accepted.
AND
That Real Property Staff be directed to prepare .a lease/option to purchase
with a lease payment of $1,500.00 per month and an option to purchase within
2 years at a sales price of $120,000.
cc: Shauna Clark, City Administrator
Barbara Pachon, Finance Director Signature
James F. Penman, City Attorney
Contact person: Anne DeBolt Phone: 5328
Supporting data attached: Staff Report, Proposal and Map Ward: 2
FUNDING REQUIREMENTS: Amount:
Source: (Acct. No.)
(Acct. Description)
Finance:
Council Notes:
75-0262 A.,,,.,.J-, I+-- nl_
CITY OF SAN BERT RDINO - REQUEST POR COUNCIL ACTION
STAFF REPORT
The City-owned property at 1505 North Waterman Avenue was appraised by Edward Hill
of Hill & Associates on May 5, 1995. The valuation at that time was for the
minimum bid price of $150,000. This appraisal of the property did not take into
consideration any length of time to market the property, in fact Mr. Hill suggested
that it might take as long as 2 or 3 years to move the property at that price. Bid
proposals went out to approximately 15 individuals who had expressed interest in
the property. No bids were received at the $150,000.00 sales price.
Mr. Hill then prepared a letter of appraisal for a "quick sale" at $120,000.00. A
"quick sale" might involve anywhere from 1 to 6 months lag time, and basically
reduces the full sale price by approximately 20%. All 15 individuals were contact-
ed and told that the "new price" was $120,000 - no bids were received at the new,
lower price.
Since June 27, 1995, Real Property staff has shown the property to at least 20 new
prospects. In December, 1995, we received two potential sales offers at $120,000,
but neither was consumated.
Attached is the proposal from the Ayala family. The lease amount is $1,500.00 per
month and the offer to purchase is for $120,000. The prospective tenants are
accepting the building in an "as is" condition. The Ayala family has deposited a
cashier's check in the amount of $5,000, for lease security and as a good faith
deposit for option to purchase.
The proposed use of the building is for an insurance office/beauty salon, and for
future use as an educational facility in the evenings.
Staff recommends the acceptance of the Ayalas' proposed lease amount of $1,500 per
month and the offered sales price of $120,000, as the building is steadily deteri-
orating at an ever increasing speed.
URGENCY CLAUSE:
1. The Ayala family's proposal is good until February 15, 1996. At that time we
will have to refund their $5,000 deposit if we have not accepted their proposal.
2. The building is steadily deteriorating at an ever increasing rate.
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PROPOSAL FOR LEASE /PURCHASE
OF CITY OWNED PROPERTY
We, Salvador Ayala, Maria C. Ayala, Maria E. Ayala, Blanca O. Lopez and Salvador Ayala Jr.
would like to propose the following terms and conditions for the lease/purchase of the property
located at 1505 N. WATERMAN AVE., SAN BERNARDINO, CA.;
I. LEASE TERM:
A) Property to be leased for a two year period with the option to buy at any given time
during the term of the lease.
B) Monthly lease of$1,500. to begin on the fourth month of the lease agreement.
C) First three months to be rent free and used to repair building and parking lot to meet
city codes.
H. OPTION TO BUY:
A) The leasee could exercise the right to purchase the building at any time during the
length of the lease for the amount of$120,000.
B) If the option to buy is exercised then $500. of every monthly lease payment and any
security deposit will be applied to the purchase of the property; thus reducing the
total purchased price accordingly.
C) A $5000. deposit is being made with this proposal for the security of the lease. -if
In the event the p oposal is.not accepted
t ,e depopt is to be refunded dag-days.,C�t�
Oct? 6// �/ a
III CONDITIONS:
A) The City of San Bernardino is to arrange the cutting of trees around the property.
1) Tree on South/East and front side of the building need trimming
2) Completely remove the tree on the North/East side of the building.-C/ ff s Q r 'p sl
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B) The items left inside of the building are to bjt� ose of by the City of
SBernardino�prp'or to ouyr occupanc . l2 �� LLB'6ri� rC'�'d
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MISCELLANEOUS CASH RECEIPT No. 685665
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