HomeMy WebLinkAboutS2- Public Works File No15 . 05-209';'
CITY• OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From : ROGER G. HARDGRAVE, Director Subject: Rejection of Bid for Sale of City Property and
Refund of Deposit -- Southeast corner of Olive
Dept : Public Works / Engineering Ave and Ohio Ave
Date : June 11, 1996
Synopsis of Previous Council Action:
02-19-96 --Authorization granted to proceed with the sale of certain City property located at the
Southeast corner of Ohio Avenue and Olive Avenue and payment for preparation of an
appraisal approved.
05-20-96 --Resolution No. 96-132 was adopted giving Notice Inviting Bids and Establishing Fair
Market Value for the sale of City owned property located on the Southeast corner of Ohio
Ave. and Olive Ave.
06-03-96 -- Acceptance of Oral Bid in the amount of $430,000 for the sale of City property located on
the Southeast corner of Olive and Ohio and authorizing the Director of Public Works to do
all things necessary to complete sale of property.
Recommended Motion
That oral bid made by Dave Mylnarski on 06/03/96 for the sale of City property located at the
Southeast corner of Ohio Avenue and Olive Avenue be rejected and deposit amount of$43,000 be
refunded to the bidder.
cc: Shauna Clark, City Administrator
Signature
Contact person: Les Fogassy Phone: 5026
Supporting data attached: Staff Report, Map Ward: 5
FUNDING REQUIREMENTS: Amount: $43,000 (Bid Deposit)
Source: (Acct. No.) 772-301-2302
(Acct. Description) Bid Deposits
Finance:
Council Notes:
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Agenda Item No. V O2L
,CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
The City acquired this property through a judicial foreclosure sale, due to delinquent payments for Assessment
District No. 995 (Verdemont Community Facilities District).
The property is a 10.49 acre of vacant land located at the Southeast corner of Ohio Avenue and Olive
Avenue. Tentative Tract No. 14193 has been approved for the parcel, and the one to the east. This Tract Map
will subdivide the approximately 21 acres into 76 single family lots.
On 02/19/96, authorization was given to proceed with the sale of this property. Proposals were requested from
three local appraisers, and the selection of Realco Consultants was made. The appraisal indicates the market
value of the property to be $430,000. However, there are approximately $197,427 in liens and encumbrances
on the parcel, thus reducing the net value of this property to approximately $232,573.
On May 20, 1996, Resolution No. 96-132 was adopted, giving Notice Inviting Bids and establishing the fair
market value at the appraised amount of $430,000.
No written bids were submitted by the deadline of 9:00 am, June 3, 1996. An oral bid was made by Mr.
David Mylnarski, who represents the owner of a 10 acre vacant parcel to the east of the City's parcel and
whose parcel is included in Tentative Map 14193. At the time the bid was made, Mr. Mylnarski expressed
concern regarding the deposit and indicated that the bid of $430,000 and deposit of $43,000 were being
submitted on the condition that if reasonable terms could not be negotiated with the City, the bid would be
withdrawn and deposit returned.
Staff met with Mr. Mylnarski and the buyer on June 7, 1996 and again on June 10, 1996. The main issue
discussed was the existence of a Community Facilities Assessment District (AD 995) which includes this
parcel. It was thought by the buyer that once the existing lien is paid, the parcel would be removed from
the district and not subject to future assessments. In the discussions that ensued, staff was unable to arrive
at a solution acceptable to the buyer. Staff will continue working towards a mutually acceptable solution.
We recommend the rejection of the bid and the refund of deposit be authorized.
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