Loading...
HomeMy WebLinkAbout22- Public Works CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: MICHAEL E. HAYS, Acting Director Subject: Acceptance of Bids for Sale of City Property and Accepting Oral Bids— 10:00 AM—Northeast of Dept: Public Works/Engineering 011 'b1/1 / A t Drive.the I-215 Freeway,Northwest of Little League j L Date: May 21, 1998 File No.: 15.05-215 Synopsis of Previous Council Action: MCC Date: 06-15-98 11-03-98—Authorization granted to proceed with the sale of City property located northeast of the 1-215 Freeway, northwest of Little League Drive and authorizing the payment for appraisal services. 04-06-98—Authorization to prepare Notice Inviting Bids for sale of City property located northeast of the 1-215 Freeway, northwest of Little League Drive, excluding 5 acre parcel on the northwest corner of Little League Drive and I-215 Frontage Road(APN 0261-171-06). 05-18-98—Resolution No. 98-123 was adopted, establishing fair market value and giving Notice Inviting Bids for the sale of City property located northeast of the I-215 Freeway, northwest of Little League Drive Recommended Motion: That all written bids (if any) and oral bids (if any) be received and that the bid from in the amount of$ for the City property located Northeast of the 1-215 Freeway, Northwest of Little League Drive, per Bid Specification No. 15.05-215, be accepted and awarded, that the Mayor of the City of San Bernardino be authorized and directed to execute on behalf of said City, all documents, including Deed of Trust and other documents referenced in Bid Specification No. 15.50-215, relative to the sale of said property, and that the Acting Director of Public Works be authorized to do all things necessary to bring the sale of said property to a conclusion. Michael AJHays Contact Person: LASZLO "Les" FOGASSY Phone: 5026 Supporting data attached: Staff Report, Maps, Bid Specifications Ward: 5 FUNDING REQUIREMENTS: Amount: None Source(Acct. No.) N/A (Acct. Description) N/A Finance: Council Notes: Y- AGENDA ITEM NO: 22. CITY,OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT Subject: Acceptance of Bids for Sale of City Property and Accepting Oral Bids— 10:00 AM—northeast of the I-215 Freeway, northwest of Little League Drive. Background: The city acquired the subject property in October, 1997, through a foreclosure action, which became necessary as a result of the property owner defaulting on assessment payments for Community Facilities District No. 995 (Verdemont Infrastructure Fees). The total amount of the delinquency is approximately $2,120,000. The subject property is located in the northwest part of the City, generally northeast of the 1-215 Freeway and northwest of Little League Drive, consisting of approximately 99.5 acres of undeveloped land. The property is mostly contiguous, with the exception of a 5 acre parcel at the intersection of Little League Drive and the I-215 Freeway. On November 3, 1997, authorization was given to proceed with the sale of this property and to obtain an appraisal. Appraisal services were obtained from Leonard E. Lichter and an appraisal report was received on 2-9- 98. The appraiser's determination of fair market value is $3,250,665.00. At the April 6, 1998 Council meeting, a determination was made to retain a separate 5 acre parcel on the Northwest corner of Little League Drive and the I- 215 frontage road for a possible future fire station. The fair market value was adjusted to exclude this parcel, and several smaller parcels that were part of the appraisal but excluded from the sale. A portion of this property was subdivided in 1987 (Tract No. 12756—Cable Lake project), with 4,500— 5,000 square foot lots. As a result of the City's General plan update at that time, the minimum lot size allowed for this area was changed to 10,800 square foot lots. The owner at that time filed a lawsuit against the City and as a result of a settlement agreement, it was agreed that the area would be "remapped"to larger lot sizes. Tentative Tract maps were submitted but never recorded and the property was subsequently acquired by a new owner. Tract No. 12756 dedicated some large open areas to the City for park purposes, but ownership of these open areas remains under the previous owner(James Bice) from whom the City acquired the surrounding area through the foreclosure action. Additionally, a small .57 acre parcel (APN 261-111-37)was inadvertently excluded from the Judgement and foreclosure action and would need to be acquired under a separate action and will thus need to be excluded from this sale. Total square footage of open space areas and excluded parcel is 163,835 square feet(3.76 acres). On April 6, 1998, authorization was given to prepare Notice Inviting Bids and Bid Specifications for the Sale of this property, excluding a 5 acre parcel on the corner of Little League Drive and Frontage Road, as a possible sight for a future fire station. On May 20, 1998, Resolution No. 98-123 was adopted, establishing the fair market value, after adjustments,to be $2,964,765.75. A Notice Inviting Bids was published and posted as required. Bid opening is scheduled for June 10,1998. Oral bids may also be heard at this time. Oral bids must start at least$10,000 above the highest written bid and shall be made in $10,000 increments, as set forth in the bid specifications, a copy of which is attached. Financial Impact: Proceeds from the sale of this property will be used to pay the delinquent assessment district amounts, which are approximately $2,120,000 and delinquent property taxes in the amount of approximately $305,800. Costs relative to this sale, such as Title fees, Escrow fees, etc., which are estimated not to exceed $6,500, will be paid for by the proceeds of the sale. Recommendation: It is recommended that all written and oral bids, if any, be received and awarded to the highest bidder and that the Mayor be authorized to sign all documents, including Deed of Trust, relative to the sale of said City property and that Acting Director of Public works be authorized to do all things necessary to bring this sale to a conclusion. 3 _ - CITY PROPERTY PROPOSED TO BE SOLD PARCC-L To RS 2 EXf-L 16 - r � 1 M ~ 1 R I I•t za©rut i \� 3 j �flu !I I _ ;� t 71 K y' 5 �• t I � r.,;.0 1 I 1 � nw • < � u a�rti rit 1 1 I � o a 14 J\ rtN rn gyp' i aafae OD zu.c 1 e _ X121 1 tMVA- 2.63 Ac i •'�, ©; pbe,� ♦, O.Y.C. N.... "'.. rn V WA �(D , SITE 02 y ♦y :c sb Abe FurvR6 )eI,29 + 3 ro rid At q}', SEE CAPK 26l-i7l-o67 40 NE—XT � Vq&r - � •i mica ft t t act N( SC�i c rosl�a.ox. �� �ortar�wlsa 4�1 PLAT MAP ///,,,111' •ioP I s0/ 0 L 01 -Of d (VVI� It f / CC s.i �© i F•. �•. 0 ,ff s • x y� o/M 1p ^ / 6 i. cz cd cn cz Vim] ►"�`'� � "h �. " � r---1 c ti � r O � �'p " +Cs rZ cn n u Sf PC r 3(VV� Q, Y 40 = --13SNnS i uj l C moo d 3 �++ r ��.•' � + \ E� !�f f� � nee v`t� i � � � G ► N ° °ors+ 1 . ' , -L h �E " I U e i m W S 1 Ys y" lfl' °j c 1 � °� : '}. •m�rP r �F r..y >R ,f.,• .A.�.- ! �19e� ��F' � i � �r n I M,r f!is J.•v 5 er .e .G'. i a / i 410 4 H' •<� ' (`oy (.yc, e� Ct•' /E` �yE� ' •� ti r,.,� t rp. 6 ,q f <c 60 ���� f�, <c♦ of ei oO � 'q A'�/S Q� i � n`+ °�/<c` {p ��1 f s � S.ft Lrl i• ,a Gb es of es or i o �� •�{ I r•S ^s ss 6/ �/ ow r/ e/ �/ 1 + •• i -a cF •<• of .s of °e FyL WW2 0 0/i° I h „ y,c TRACT NO. 12756 DETAIL °'e` CITY OF SAN BERNARDINO SPECIFICATION NO. 15.05-215 NOTICE OF SALE OF REAL PROPERTY: VACANT PARCEL OF LAND GENERALLY LOCATED NORTHWEST OF LITTLE LEAGUE DRIVE,NORTHEAST OF THE I-215 FREEWAY SAN BERNARDINO, CA REQUIREMENTS OF BIDDING AND SALE NOTICE IS HEREBY GIVEN inviting sealed bids for the sale of City owned property, as authorized by action of the Mayor and Common Council of the City of San Bernardino. 1. LOCATION AND DESCRIPTION OF PROPERTY TO BE SOLD: (A) Property Location: The subject property consists of approximately 90 acres vacant land, generally located Northwest of Little League Drive and Northeast of the 1-215 Freeway, in the City of San Bernardino, California, referred to as Assessor's Parcel 0261-111-21, 23, 25, 29, 30, 33, 35 & 40; 0261-121-01, 02, 03, 13 & 14; 0261-451-01 thru 48; 0261-461-01 thru 66, and is more fully described in the Preliminary Title Report issued by First American Title, a copy of which is attached as Exhibit "A". (B)Zoning and Use: The subject property is currently zoned as RL, Residential Low as shown on the City's General Plan Map, with a minimum lot size of 10,800 square feet and a maximum density of 3.5 dwelling units per acre. The property is currently undeveloped,but a Tract Map, Tract No. 12756 has been recorded, which covers a portion of the 90 acres. Since the lot sizes within Tract No. 12756 do not conform to the City's minimum lot size requirement,the area will have to be remapped to conform prior to any development. Also note that the lettered lots A through E shown on said Tract Map, are not apart of this sale. The City has easements across these lots for park and landscaping purposes, but does not have fee title to them. The subject property is also located within a Flood Zone, designated by FEMA as AE. The subdivision of land and development of a single family residence project on this property will be subject to the City's General Plan and Development Code, as they exist at the time of development. Spec215 04/29/98 1 (C) Condition of Property: The subject property is being sold"AS IS", subject to conditions as set forth herein. 2. MINIMUM BID: The minimum acceptable bid, for said real property is$2,964,765.75,which has been determined to be to the Fair Market Value of the subject property, based on an appraisal that was prepared by Len E. Licther, General Appraiser, dated January 18, 1998. 3. INSPECTION: The subject property may be inspected by prospective bidders at will. 4. SEALED BIDS: Sealed bids, submitted on the Official Bid Form attached, will be received in the Department of Public Works, Real Property Section, Third Floor, City Hall, 300 North "D" Street, San Bernardino, California, until 2:00 p.m. June 10, 1998, at which time all bids received will be publicly opened and declared. All bids must be accompanied by a cashier's check in an amount of at least 10% (TEN PERCENT)of the amount bid. The results of said bidding shall be submitted to the Mayor and Common Council at regular Council meeting of June 15, 1998 at 10:00 a.m. All bids submitted must conform to the specifications as set forth herein. 5. ORAL BIDS: Oral bids may be made at the Council Meeting on the date and time stated above. Oral bids may be received in $10,000 increments for the outright purchase of the property, provided that the initial oral bid shall be an amount not less than the highest sealed bid plus $10,000. In the event of a successful oral bid, a cashier's check in an amount of at least 10%(TEN PERCENT)of the bid amount shall be deposited with the City Clerk prior to the end of said meeting, or as otherwise determined by the Mayor and Common Council. Spec215 04/29/98 2 6. UNSUCCESSFUL BIDS: All sealed bid deposits of unsuccessful bidders will be promptly returned, without interest, after determination of the successful bidder by the Mayor and Common Council, or upon rejection of all bids. 7. REJECTION OF BIDS: The mayor and Common Council shall have the right to reject any and all bids. 8. TERMS The City will consider terms for any portion of the total amount bid. 9. LIENS, EASEMENTS, ENCUMBRANCES & RESTRICTIONS: City assumes the bidder has inspected the Preliminary Title Report, a copy of which is attached hereto as Exhibit "A", and has full knowledge of any and all liens, easements, encumbrances and or restrictions affecting subject property as set forth in said Preliminary Title Report and is submitting his/her bid subject to those conditions except as follows: City shall pay, from cash proceeds of the sale, any delinquent taxes or assessments in the amounts due at the time of closing, or as otherwise mutually agreed, if cash proceeds are insufficient to cover such delinquencies. 10. SUCCESSFUL BIDDER: The successful bidder, as determined by the Mayor and Common Council, will be evaluated on the basis of purchase price bid and other factors including amount and length of terms, if any,interest rate, and qualifications of the bidder. In the event of two or more equal bids, the City reserves the right to select the bidder based on the most favorable terms and qualifications of the bidder. The successful bidder will be required to execute a mutually acceptable purchase agreement and to enter into escrow within 10 (TEN) days after said determination of the successful bidder. The escrow instructions shall include, but not be limited to : (A) The recording of the Grant Deed from the City, and the closing of escrow within sixty (60) Spec215 04/29/98 3 days, or as otherwise mutually agreed upon. (B) Title Policy fees shall be paid by the City. Escrow,and all other fees and closing costs,except as set forth in Paragraph D below, shall be split evenly between the City and the successful bidder. (C) In the event the purchaser retains the services of a Broker, any fees and commissions shall be paid by the purchaser, over and above the bid amount. The City does not intend to retain the services of a Broker for this transaction. (D)In the event of any failure by the successful bidder to execute and comply with the conditions as set forth herein, the deposit made by the successful bidder may be retained by the City as liquidated damages, and not as a penalty in the event of any failure on the part of the successful bidder. Spec215 04/29/98 4 OFFICIAL BID FORM SALE OF CITY-OWNED PROPERTY,CITY OF SAN BERNARDINO VACANT PARCEL OF LAND GENERALLY LOCATED NORTHWEST OF LITTLE LEAGUE DRIVE,NORTHEAST OF THE I-215 FREEWAY SAN BERNARDINO, CA PER SPECIFICATION NO. 15.05-215 In compliance with Specification No. 15.05-215,concerning the sale of the above City-owned property,the following bid is submitted: Dollars($ ), payable as follows: $ to be deposited into escrow prior to close of escrow, and the balance to be paid as follows: annual/monthly payment(s) of$ plus interest at the rate of %per annum on the unpaid balance,or as follows: Attached is a cashier's check payable to the CITY OF SAN BERNARDINO,in an amount equal to at least ten percent (10%)of the above bid,which I understand will be returned without interest if I am not the successful bidder as determined by the Mayor and Common Council of the City of San Bernardino. Submission of this bid signifies that I understand and concur with the provisions outlined in Specification No. 15.05-215 and that I understand the subject property is being sold in an"AS-IS"condition. PRINTED NAME OF BIDDER SIGNATURE U MAILING ADDRESS TELEPHONE NO. CITY, STATE,ZIP CODE Sealed bids,submitted on this official Bid Form,will be received until 2:00 p.m.,June 10, 1998,at the Department of Public Works, 3rd Floor, City Hall, 300 N. "D" Street, San Bernardino, California, 92418, at which time they will be publicly opened, examined and declared. NOTE: BIDS WILL NOT BE ACCEPTED UNLESS ALL BLANKS HAVE BEEN FILLED IN. ALL SEALED BIDS MUST HAVE THE FOLLOWING INFORMATION ON THE LOWER LEFT-HAND OF THE BID ENVELOPE: SEALED BID SALE OF CITY PROPERTY SPECIFICATION NO. 15.05-215