HomeMy WebLinkAbout12- Development Services CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: MICHAEL E. HAYS, Director Subject: Authorization to proceed with Sale of City
Property to All Pro Broadcasting, Inc.--- North of
Dept: Development Services Mill Street, East of 1-215 Freeway and Resolution
ORIU1,01 IPM L Setting a Public Hearing.
Date: May 13, 1999 File No.: 15.05-217
Synopsis of Previous Council Action: MCC DATE: 06/07/99
07-18-73 —Resolution 11486 was adopted, accepting a Corporation Quitclaim Deed for property located
North of Mill Street, East of 1-215 Freeway and West of"G" Street from the San Bernardino
County Flood Control District.
04-05-99 —Authorization to Proceed with the sale of City property located North of Mill Street and East of
the 1-215 Freeway was continued to 05-03-99.
05-03-99 - Authorization to Proceed with the sale of City property located North of Mill Street and East of
the 1-215 Freeway was tabled and referred back to staff for alternate recommendations.
Recommended Motion:
1. That the Director of Development Services and the City Clerk be authorized to proceed with the
Sale of City owned property, located North of Mill Street, East of 1-215 Freeway and West of"G" Street.
AND
2. Adopt Resolution
Michael E. FYays
Contact Person: c "Les"F 3ASSy Phone: 5()?6
Supporting data attached: Staff Report, Maps, and Resolution Ward: 3
FUNDING REQUIREMENTS: Amount: None
Source (Acct. No.) N/A
(Acct. Description) N/A
Finance:
Council Notes:
Agenda Item No.
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
i
SUBJECT:
Authorization to proceed with Sale of City Property to All Pro Broadcasting, Inc.--- North of Mill Street, East
of I-215 Freeway and West of "G" Street and Resolution Setting a Public Hearing.
BACKGROUND:
All-Pro Broadcasting is in escrow to sell radio station KCKC and its assets. During negotiations over the sale, the
potential buyer asked for reassurance that KCKC held ownership to land on which the anchor footings for its
transmitter site were located. KCKC discovered that the footings were actually located on land owned by the City
of San Bernardino, approximately 1.09 acres.
On January 7, 1999, William McNulty, General Manager for the radio station KCKC, confirmed with the City of
San Bernardino Real Property Department that All-Pro Broadcasting was interested in obtaining an easement.
After reviewing the property file it was found that the subject property was dedicated to the Water Department by
Corporation Quitclaim Deed from the County of San Bernardino Flood Control District.
The Water Department met with Mr. McNulty to discuss the uses to which the property could be put. The Water
Department felt that with limited access to the location it would be appropriate to sell the property and obtained
Ralph Monge, a certified appraiser, to prepare an appraisal of the property. It is Mr. Monge's opinion that the
property's fair market value is $1,500.00. This opinion is based on the fact the property is a landlocked parcel
with a triangular shape. In addition, the parcel is currently occupied with the radio station's footing. The best use
for the parcel would be to combine it with the radio station's parcel.
On March 2, 1999, The Board of Water Commissioners approved and declared the subject property a surplus and
that it be sold to All-Pro Broadcasting for the fair market value of$1,500.00.
The City's Municipal Code Section 2.65 governs the sale of real property and Section 2.65.030 provides that real
property with fair market value of less than$25,000 may be sold by negotiated purchase but the sales price shall
not be less than the fair market value.
This item was continued from the April 5, 1999 Council meeting to May 3, 1999. Councilman Schnetz had
expressed concern for retaining access to the Flood Control Property adjacent and Northeasterly of the subject
property and alternatives were discussed, such as granting of an easement to All Pro Broadcasting, in lieu of a sale.
After researching the matter it was noted that the Flood Control District does in fact have access to the channel by
access roads on either side of the channel, as shown on the attached map. All Pro Broadcasting has also advised us
there lender had indicated to them that they would either need to secure an exclusive easement or but the property
in order to conclude their loan and that a lease would not be adequate. A concern about granting an easement is
that the City could still be liable for injuries occurring on the property. It appears that sale of the property would be
the most practical way to proceed.
The Resolution setting a Public Hearing at 10:00 A.M. July 6, 1999, has been attached for your action also.
FINANCIAL IMPACT:
The City will receive revenue of$1,500 from this sale.
RECOMMENDATION:
It is recommended that the Director of Development Services and the City Clerk be authorized to proceed with the
sale of this property and that the Resolution setting a Public Hearing be adopted.
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Property Proposed
to be Sold
VICINITY MAP
CITY OF SAN BERNARDINO PROPOSED SALE OF CITY PROPERTY
DEVELOPMENT SERVICES DEPARTMENT LOCATED NORTH OF MILL STREET, EAST
PUBLIC WORKS DIVISION OF THE 1-215 FREEWAY AND SOUTHWEST
indicates un—incorporated areas OF LYTLE CREEK FLOOD CONTROL
® within City's Sphere of Influence CHANNEL
D �{ 1 RESOLIQQ
2
RESOLUTION OF THE CITY OF SAN BERNARDINO ESTABLISHING AND
3 SETTING FAIR MARKET VALUE AND SALES PRICE OF $1,500.00 AND
4 DECLARING THE INTENTION OF THE CITY TO SELL PROPERTY LOCATED
NORTH OF MILL STREET, EAST OF I-215 FREEWAY AND WEST OF "G" STREET
5 IN THE CITY OF SAN BERNARDINO, TO ALL-PRO BROADCASTING,
INCORPORATED AND SETTING A PUBLIC HEARING TO CONSIDER SAID SALE.
6
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
7 SAN BERNARDINO AS FOLLOWS:
8
SECTION 1. The public interest and convenience require the sale of property,
9
10 approximately 1.09 acres, located North of Mill Street, East of I-215 Freeway and West of"G"
11 Street in the City of San Bernardino to All-Pro Broadcasting, Incorporated, owner of radio
12 station KCKC and KCXX.
13 SECTION 2. It is therefore the intention of the Mayor and Common Council of the City
14
of San Bernardino to sell said property to All-Pro Broadcasting, Incorporated.
15
16 SECTION 3. The Mayor and Common Council do hereby find and determine that the
17 Fair Market Value of the property and sales price is One Thousand Five Hundred Dollars,
18 ($1,500.00)
19 SECTION 4. The Mayor and Common Council of the City of San Bernardino do hereby
20
set public hearing to be held on Tuesday, July 6, 1999, at 10:00 a.m. or as soon thereafter as the
21
22 matter can be heard, in the Council Chambers of City Hall, 300 North "D" Street, San
23 Bernardino, relative to the proposed sale.
24 SECTION 5. Notice of the public hearing shall be published in The Sun, a newspaper of
25 general circulation, at least once prior to the public hearing and shall be posted in at least 3
26
conspicuous places on the property for at least(10) days prior to the hearing.
27
28
05/12/99 1
RESOLUTION ESTABLISHING AND SETTING FAIR MARKET VALUE AND SALES PRICE OF $1,500.00
1 AND DECLARING THE INTENTION OF THE CITY TO SELL PROPERTY LOCATED NORTH OF MILL
STREET,EAST OF I-215 FREEWAY AND WEST OF"G" STREET.
2
SECTION 6. Written and oral protest to such sale may be submitted and shall be
3
4 received at or prior to the public hearing.
5 SECTION 7. It is the intent of the Mayor and Common Council to consider and approve
6 said sale at the public hearing, said property more particularly described as follows:
7 Those portions of Lots 7, 8 and 9, Block 12, of the Rancho San Bernardino, as per map
8 recorded in Book 7 of Maps, Page 2, Records of the County Recorder of San Bernardino
County, State of California, described as follows:
9
10 Beginning at a point lying North 00° 41' 53" West, a distance of 116.32 feet from the
Southeast corner of said Lot 9, said point also being on the Southwesterly line of the San
11 Bernardino County Flood Control Channel;
12 Thence, beginning Course"A",North 37° 15' 08"West to a point lying 200 feet South
of the North line of said Lot 8 and the terminus of said Course "A";
13
14 Thence West, along a straight line to a point that is 350 West of the West line of"G"
Street, as vacated on Parcel Map 9506 as per plat recorded in Book 119 of parcel Maps,
15 Pages 31-33 and also by City of San Bernardino Resolution No. 79-150, adopted by the
16 Mayor and Common Council of the City of San Bernardino on 04/16/79;
17 Thence North and parallel with said West line of vacated"G" Street to its intersection
with the Northwesterly prolongation of said Course"A" described herein;
18
19 Thence North 37° 15; 08" West, a distance of 318.78 feet to the beginning of a tangent
curve, concave Southwesterly and having a radius of 1050 feet;
20
Thence Northwesterly, along said curve and arc length of 150.12 feet to the West line of
21 said Lot 7;
22 Thence North 00°42' 31"West,to the Southwesterly line of the 165 foot San Bernardino
23 County Flood Control right of way as recorded on 10/16/72 in Book 8041 of Official
Records,page 9072;
24
25 Thence Southerly through said Lots 7, 8 and 9 and along said 165 foot San
Bernardino County Flood Control right of way to the Point of Beginning.
26
27
28
05/12/99 2
RESOLUTION ESTABLISHING AND SETTING FAIR MARKET VALUE AND SALES PRICE OF $1,500.00
1 AND DECLARING THE INTENTION OF THE CITY TO SELL PROPERTY LOCATED NORTH OF MILL
STREET,EAST OF I-215 FREEWAY AND WEST OF"G" STREET.
2
3
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and
4
5 Common Council of the City of San Bernardino at a meeting thereof
3 6 held on the day of 19 , by the following vote, to
7 wit:
8
Council Members: AYES NAYES ABSTAIN ABSENT
9
ESTRADA
10
11
LIEN
12 MCGINNIS
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13 SCHNETZ
14
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k DEVLIN
15
ANDERSON
16
17 MILLER
18
19 City Clerk
20 The foregoing resolution is hereby approved this day of , 19
21
j 22
U
JDITH VALLES, Mayor
23 City of San Bernardino
Approved as to form
24 and legal content:
25
JAMES F. PENMAN
26 City ttorney
{
27 By:
28
05/12/99 3
EATY101'
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May 11th, 1999
Mayor Judith Valles
300 North "D" Street
San Bernardino, CA 92418
Dear Mayor Judith Valles,
I'm writing this letter to request your help, regarding our efforts to purchase or obtain-
ing an exclusive easement on a remnant land parcel owned by the City of San
Bernardino (File #15.05-217). Please review my original request dated January 7th,
1999 (enclosed.exhibit #1).
Because of time constraints on the purchase agreement for the sale of KCKC-AM to
Citicaster (the buyer), All Pro Broadcasting closed on this transaction on March 26th,
1999. $75,000 of the purchase price was withheld pending a cure of this encroach-
ment (review enclosed documents exhibit #2). No action. has been taken on the mo-
tion to sell this land locked remnant parcel, even though the sale was endorsed by the
Water Department and the City of San Bernardino Public Works — Real Property De-
partment. I believe if you study all the facts regarding this remnant parcel, you too will
endorse it's sale.
I suspect there is a mistaken belief that this parcel is immediately adjacent to the Lytle
Creek Wash, when in fact there is approximately 40 to 50 feet of service land between
the creek and the remnant parcel. Please review the enclosed pictures (exhibit #3)
detailing this point. The remnant parcel is to the left or west of the service access
land. Hopefully, with this additional information you will vote to authorize to proceed
with the sale of City property to All Pro Broadcasting Inc. Please feel free to call me at
(909) 384-1039 or visit my office at 740 W. 4th Street if I may be of any further help or
answer any questions.
Respectfully,
Bill McNulty
General Manager
All Pro Broadcasting
KCXX-FM / KATY-FM
740 W. 4th St. San Bernardino, Ca 92410 909-384-1039/909-888-7302 fax
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Exhibit #1
January 7, 1999
City of San Bernardino
Attn: Les Fogassy, Real Property Official
300 N. "D" Street
San Bernardino, CA 92418
Dear Les,
Per our discussion, I'm writing this formal request for an easement on a small parcel of
land owned by the City of San Bernardino. Let me provide you with some background
information.
I represent All Pro Broadcasting Inc., owned by Willie D. Davis, which owns KCKC and
it's transmitter site at 770 W. Mill Street. All Pro Broadcasting purchased KCKC ap-
proximately six years ago. Recently we entered into an agreement to sell KCKC to
Citicasters who ordered a survey on the Mill Street transmitter site. This survey re-
vealed one of the anchor footings for the guywires supporting our northerly tower is lo-
cated on land owned by the City of San Bernardino (parcel APN: 136-151-26). Please
review the enclosed survey map and photographs detailing this.
After this discovery I have researched the history for it and found no existing easement
for the guywire footing. The station was built in 1949 and has apparently existed in
this manner since then. The parcel this footing is located in is bounded by the Lytle
Creek Wash on the north and the east and our property on the west (approximately
55" away). The south boundary is a paved lot for the adjacent light industrial busi-
ness'. Given these conditions the land has virtually no other practical use.
Please grant our request of an easement that will legally provide KCKC and any as-
signee limited use for the manner it has been used for many years. I've included our
formal survey exhibit and easement description. Please advise me if I may provide
you with anything else to grant our request.
Respectfully,
William McNulty
General Manager
KCKC / KCXX
Exhibit #2
2. Closing of Asset Purchase Agreement. Citicasters hereby agrees to
close the transaction contemplated by the Asset Purchase Agreement in exchange for
Seller and Shareholders obligations under this Agreement. This Agreement shall satisfy
the obligations of Seller and Shareholders arising under the Asset Purchase Agreement
by reason of the breach by Seller and Shareholders of Section 2.1.19.1 thereof that arises
from the encroachments revealed by the Survey. The parties agree that at Closing
Citicasters shall withhold Seventy-Five Thousand Dollars ($75,000) from the Purchase
Price. Upon Seller and Shareholders (i) acquisition and conveyance to Citicasters of the
Additional Property pursuant to Section 3(A) of this Agreement or (ii) the cure of the
encroachments pursuant to Section 3(C) of this Agreement by June 30, 2000, Citicasters
shall pay the Seventy-Five Thousand Dollars ($75,000) to Shareholders in cash by wire
a transfer of immediately available funds. In the event that Seller and Shareholders are
unable to acquire the Additional Property pursuant to Section 3(A) of this Agreement or
cure the encroachments pursuant to Section 3(C) of this Agreement by June 30, 2000,
Citicasters shall retain the Seventy-Five Thousand Dollars as its sole remedy for the
breach by Seller and Shareholders of Section 2.1.19.1 of the Asset Purchase Agreement.
Except as expressly provided in this Section 2, nothing herein shall be deemed to
1 constitute a waiver of or impair any rights or remedies available to Citicasters under the
Asset Purchase Agreement and/or applicable law to enforce the performance or obser-
vance of the covenants and agreements of Seller and Shareholders contained in the Asset
Purchase Agreement.
s
3. Cure of Encroachments.
(A) Obligation to Obtain Easement or Fee Title to Additional
Proper Seller and Shareholders shall use commercially reasonable efforts to obtain, at
their sole expense, from the owner(s) of the Additional Property and convey to
Citicasters, a permanent, exclusive, appurtenant easement over, or fee title to (or_any
combination thereof in the event different portions of the Additional Property are owned
by different owners) the Additional Property on or before June 30, 2000. The foregoing
conveyance to Citicasters shall give Citicasters the exclusive and unrestricted right to use,
operate, maintain, repair, replace and remove all fencing and antenna components
(including guy wires and sound systems) now located on, in, under or over the Additional
Property (the "Antenna Components and Fencing") and, in the event the conveyance
shall be in the form of an appurtenant easement, Seller and Shareholders shall use
commercially reasonable efforts to obtain the agreement on the part of the grantor of the
easement to (i) promptly repair any damage to the Antenna Components and Fencing
caused by the grantor or others whom the grantor authorizes to enter onto the property
covered by such easement and (ii) indemnify Citicasters against Damages suffered or
incurred by Citicasters as a result of such damage. Seller and Shareholders, at their sole
expense, shall obtain an appurtenant easement over or fee title to (as the case may be)
the Additional Property free of all mortgages, deeds of trust and other liens and encum-
brances and which is insurable by First American Title Company under the policy issued
to Citicasters in connection with the Real Property.
(B) Payment of Costs Associated with Curing Encroachments.
Seller and Shareholders shall pay all costs associated with curing the encroachments,
including without limitation the cost of the additional survey work performed or to be
performed by Adkan Engineers and the cost of additional title work performed or to be
performed by First American Title Company and any additional title insurance premiums
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