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HomeMy WebLinkAbout23- Successor Agency Page 2 § 34131.3, the approved LRPMP shall govern, and supersede all other provisions relating to the disposition and use of all the real property assets of the former redevelopment agency. The approved LRPMP, which addresses the disposition and use of the real property assets held by the Successor Agency, includes 230 parcels of land grouped into forty- six (46) separate sites, eighteen (18) of which were designated as government use sites, seven (7) of which are designated as future development sites and twenty-one (21) of which were designated to be sold. Consistent with the foregoing, the Successor Agency is the owner of that certain real property consisting of approximately 27.20 acres of vacant land located at 280 South "E" Street, San Bernardino, California (APN 0136- 111-26) (the "Property"). Within the LRPMP, the Property is: i) identified as Site No. 6; ii) described as a baseball stadium park; iii) designated for government use; and iv) more fully described within Exhibit "A" to the attached Resolution, which is an excerpt from the LRPMP. In its December 31, 2015, letter approving the LRPMP, the California Department of Finance (the "DOF") unilaterally amended the LRPMP with respect only to the Property to require its sale. After the approval of the LRPMP, the Successor Agency appealed DOF's unilateral decision to reclassify the Property from "government use" to "for sale"; however, on June 24, 2016, the DOF denied the Successor Agency's appeal and notified the Successor Agency that the Property must be sold and that it may be sold to a third party or to a public entity, which could include the City of San Bernardino (the "City"), at any price agreed upon by the affected parties without DOF's review or approval. Notwithstanding DOF's June 24, 2016 notification, the LRPMP requires that the Successor Agency obtain Oversight Board and DOF approval of property sales. Discussion Consistent with DOF's direction, the City wishes to purchase and the Successor Agency wishes to sell the Property for a fair and reasonable price. To establish a fair and reasonable price, the Successor Agency engaged Valbridge Property Advisors (the "Valbridge") to value the Property. As more particularly described within the Valbridge Appraisal, a summary copy of which is included as Exhibit "B" to the attached Resolution, it is Valbridge's opinion that the value of the Property, as though vacant, is $4,440,000 (the "Vacant Land Value") (see paragraph 4, page 58 of the Valbridge appraisal). Given that the existing improvements on the Property are single-purpose, not readily adaptable to an alternate and highest and best use and would have to be removed to allow for a modern reuse of the property consistent with existing land-use restrictions, the Successor Agency engaged TKE Engineering, an Inland Empire-based civil engineering firm with experience with demolition projects, to conduct an engineering study for the purpose of determining the estimated cost of demolishing the existing improvements to determine a net Property value (the "TKE Engineering Study"). As more particularly described within the December 2, 2016 TKE Engineering Study, a ��IL � � I WHEREAS, consistent with the foregoing, the Successor Agency is the owner of that certain 2 real property consisting of approximately 27.20 acres of vacant land located at 280 South "E" Street, 3 San Bernardino, California (APN 0136-111-26) (the "Property"); and 4 WHEREAS, within the LRPMP, the Property is: i) identified as Site No. 6; ii) described as a 5 baseball stadium park; iii) designated for govenunent use; and iv) more fully described within Exhibit 6 "A" attached hereto, which is an excerpt from the LRPMP; and 7 WHEREAS, in its December 31, 2015 letter approving the LRPMP, the California 8 Department of Finance (the "DOF") unilaterally amended the LRPMP with respect only to the 9 Property to require its sale; and 10 WHEREAS, after the approval of the LRPMP, the Successor Agency appealed DOF's 11 unilateral decision to reclassify the Property from "govermnent use" to "for sale"; however, on June 12 24, 2016, the DOF denied the Successor Agency's appeal related to the Property and notified the 13 Successor Agency that the Property must be sold and that it may be sold to a third party or to a 14 public entity, which could include the City of San Bernardino (the "City"), at any price agreed upon 15 by the affected parties without DOF's review or approval; and 16 WHEREAS, notwithstanding DOF's June 24, 2016 notification, the LRPMP requires that 17 the Successor Agency obtain Oversight Board and DOF approval of property sales; and 18 WHEREAS, consistent with DOF's direction, the City wishes to purchase and the Successor 19 Agency wishes to sell the Property for a fair and reasonable price; and 20 WHEREAS, to establish a fair and reasonable price for the Property, the Successor Agency 21 engaged Valbridge Property Advisors ("Valbridge") to value the Property; and 22 WHEREAS, as more particularly described within the Valbridge Appraisal, a summary 23 copy of which is appended to this Resolution as Exhibit "B", it is Valbridge's opinion that the value 24 of the Property, as though vacant, is $4,440,000 (the "Vacant Land Value") (see paragraph 4, page 25 58 of the Valbridge appraisal); and 26 WHEREAS, given that the existing improvements on the Property are single-purpose, not 27 readily adaptable to an alternate and highest and best use and would have to be removed to allow 28 for a modern reuse of the property consistent with existing land-use restrictions, the Successor PURCHASE AND SALE AGREEMENT (REAL ESTATE) THIS PURCHASE AND SALE AGREEMENT (the "Agreement") made this 20"' day of March, 2017 by and between City of San Bernardino, a municipal corporation and charter city (the "City") and the Successor Agency to the Redevelopment Agency of the City of San Bernardino, a public body corporate and politic (the "Successor Agency"). Collectively, City and Successor Agency are referred to herein as the "Parties". WITNESSETH: WHEREAS, pursuant to Health and Safety Code (the "HSC") § 34172 (a) (1), the Redevelopment Agency of the City of San Bernardino was dissolved February 1, 2012; and WHEREAS, consistent with the provisions of the HSC, on January 9, 2012 the Mayor and City Council of the City elected to serve in the capacity of the Successor Agency; and WHEREAS, the Oversight Board to the Successor Agency (the "Oversight Board") has been established pursuant to HSC § 34179 to assist in the wind-down of the dissolved redevelopment agency; and WHEREAS, the Successor Agency is the owner of that certain real property consisting of approximately 27.20 acres of vacant land located at 280 South `B" Street, San Bernardino, California (APN 0136-111-26) and which is depicted in Exhibit"A" attached hereto (the 'Property"); and WHEREAS, the Property is identified as Site No. 6 within the Successor Agency's Long-Range Property Management Plan (the "LRPMP") as a baseball stadium park that was designated within the LRPMP as a government use site that would be transferred to the City at no cost; and WHEREAS, in its December 31, 2015 letter approving the LRPMP, the California Department of Finance (the"DOF")unilaterally amended the LRPMP with respect only to the Property to require its sale; and WHEREAS, after the approval of the LRPMP, the Successor Agency appealed DOF's unilateral decision to reclassify the Property from "government use"to"for sale"; and WHEREAS, on June 24, 2016, the DOF denied the Successor Agency's appeal related to the Property and notified the Successor Agency that the Property must be sold and that it may be sold to a third party or to a public entity, which could include the City of San Bernardino (the "City"), at any price agreed upon by the affected parties without DOF's review or approval; and WHEREAS, notwithstanding DOF's June 24, 2016 notification, the LRPMP requires that the Successor Agency obtain Oversight Board and DOF approval of property sales; and WHEREAS, consistent with DOF's direction, the City wishes to purchase and the Successor Agency wishes to sell the Property pursuant to the terms and conditions described herein; and WHEREAS, to establish a fair and reasonable price for the Property, the Successor Agency engaged Valbridge Property Advisors (the "Valbridge") to value the Property; and March 209 2017, Mayor and City Council Meeting Charges to Ordinances in Agenda Item E umber 26 Charter Implementation Severability and publication clauses were updated to be consistent. Ordinance Amending Chapter 1.08 386 Line 14 — changed 'items' to 'item' to agree with 'any vetoed resolution or ordinance' Line 20 — changed 'Amendment' to 'Amendments' to agree to line 22 387 Lines 16-18 — 'the date of its adoption by the City Council and approval by the Mayor' was changed to date of adoption. Ordinance Regarding the City Manager 391 Line 7 — inserted `the' before 'City Manager' Line 11 — changed 'to him' to 'to him or her' 392 Line 3 — changed 'his' to 'his or her' Line 13 — changed `municipal code' to 'San Bernardino Municipal Code' to conform to line 24 Line 14 — changed 'he' to 'he or she' Line 15 — inserted `the' before 'City Council' Lines 18, 19 — deleted `to' Lines 22, 23 — change `his' to 'his or her' 393 Line 18 — deleted 'and or further' 394 Line 5 — changed 'names and member' to 'names of the members' Ordinance Regarding the Mayor Pro Ternpore Position 397 Line 10 —`Ordinance' was capitalized Line 10-11 — 'and or further' was removed Line 11 — 'affect' was changed to 'effect' Line 25 — 'names and member' was changed to 'names of the members' Ordinance Regarding Meetings 431 Line 2 — 'Willfully' was not capitalized Lines 9-15 — 'Section' was not capitalized Line 12 — '2.58.105' was changed to '2.58.070' 432 Lines 8-9 — 'and or further' was removed; `affect' was changed to 'effect' Line 20 — 'names and member' was changed to 'names of the members' 11 1 ORDINANCE NO. 2 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN 3 BERNARDINO, CALIFORNIA, AMENDING PORTIONS OF CHAPTER 1.08 G THE +C1 04'_ - SAN BERNARDINO MUNICIPAL CODE RELATING TU, 4 RESOLUTIONS AND ORDINANCES TO IMPLEMENT THE PROVISIONS OF THE 5 NEWLY ADOPTED CHARTER 6 WHEREAS, on November 8, 2016 the Citizens of the City of San Bernardino enacted a new City Charter; and 7 WHEREAS, the City Council desires to amend the City of San Bernardino Municipal 8 Code to implement the new City Charter, which took effect on January 31, 2017. 9 NO\N, T11I:144'014E _THE MAYOR AND CITY COUNCIL OF THE CITY OF 10 SAN BERNARDINO DO ORDAIN AS FOLLOWS: 11 SECTION 1. The Mayor and City Council find that the above-stated Recitals are true 12 and hereby adopt and incorporate them herein. 13 SECTION 2. Section 1.08.010 (Purpose) of Chapter 1.08 (Resolutions and Ordinances) of the City of San Bernardino Municipal EedesCode is hereby amended to read 14 as follows: 15 1.08.010 Purpose 16 The procedures set forth in this chapter are established to implement the 17 provisions of City Charter Section 304 which provides that resolutions and ordinances shall be adopted by a simple majority vote of the quorum of the City Council present, 18 unless a specific different affirmative vote level is required by the City Charter or for 19 Charter Cities under State or Federal law. _All resolutions and ordinances must be approved by the Mayor, or alternatively, vetoed by the Mayor with written reasons 20 therefore endorsed on such resolutions or ordinances within five days after the City Clerk presents the resolutions and ordinances to the Mayor, pursuant to the requirement 21 of Section 1.08.030 (Action by Mayor) herein. 22 SECTION 3. Section 1.08.030 (Action by Mayor) of Chapter 1.08 (Resolutions and 23 Ordinances) of the City of San Bernardino Municipal CodesCode is hereby amended to read as follows: 24 25 1.08.030 Action by Mayor 26 Within five days, excluding Saturdays. Sundays and holidays, after the City Clerk has presented the resolution or ordinance to the Mayor or the empleyee7ag nt 27 City employee designated by of the Mayor, the Mayor shall approve, or if the 28 resolution or ordinance was approved by fewer than five (5)votes of the City Council, may veto, the resolution or ordinance stating the reason or reasons for the veto of the 1 SLC, 3-20- vi -- �C gvkcerne nt Mayes I resolution or ordinance cion a document physically attached thereto. Approval or veto is a duty and there shall be no right to fail to either approve or veto within the five-day 2 period. In the event the Mayor is absent or otherwise unable to approve or veto the resolution or ordinance during the five-day period, the Mayor Pro Tempore, as 3 empowered pursuant to Charter Section 302, shall approve, but may not veto, the 4 resolution or ordinance in like manner as the Mayor would have been empowered and required to do. In the event the Mayor approves or fails to approve or veto the 5 resolution or ordinance within the five-day period, or in the event the Mayor Pro Tempore acting in the place of the Mayor approves or fails to approve the resolution or 6 ordinance, the resolution or ordinance shall be deemed to be validly enacted on the date of its adoption and conclusively presumed to have been approved, provided it was 7 adopted by the requisite number of votes required pursuant to Section 1.08.010 herein, 8 and the City's Charter. 9 SECTION 4. Section 1.08.040 (Readoption) of Chapter 1.08 (Resolutions and Ordinances) of the City of San Bernardino Municipal CodesCode is hereby amended to read 10 as follows: 11 1.08.040 Readoption 12 The approved or vetoed resolution or ordinance shall be forthwith returned to 13 the City Clerk. The City Clerk shall place any vetoed resolution or ordinance which 14 was adopted by fewer than five affirmative votes as the first business items on the agenda for the next meeting of the Mayor and City Council to be considered by the 15 City Council for readoption after the resolution or ordinance is reintroduced and the reason or reasons for the veto are read by the City Clerk. In the event there are less 16 than seven council members present, or for any other reason, the resolution or 17 ordinance may be continued from time to time. A motion to readopt the resolution or ordinance shall be considered and voted upon by the City Council. Five or more 18 affirmative votes shall be necessary to validly readopt the resolution or ordinance. 19 SECTION 5. Section 1.08.060 (Charter Amendments) of Chapter 1.08 (Resolutions 20 and Ordinances) of the City of San Bernardino Municipal CedesCode is hereby rescinded in full and the following new Section 1.08.060 (Charter Amendment,) is adopted to read as 21 follows: 22 1.08.060 Charter Amendments 23 Amendments to the Charter shall be made in accordance with the procedures of 24 the State Elections Code, as applicable to charter cities. 25 SECTION 6. Section 1.08.070 (Time is not of essence) of Chapter 1.08 (Resolutions and Ordinances) of the City of San Bernardino Municipal EolesCode is hereby amended to 26 read as follows: 27 1.08.070 Time is not of essence 28 2 1 The failure of the City Clerk, Mayor or Mayor Pro Tempore to comply with any of the ministerial acts provided for in this Chapter or the periods of time for(1) 2 presenting the resolution or ordinance to the Mayor, (2) approving or vetoing the resolution or ordinance, and(3)readopting a vetoed resolution or ordinance at the next 3 meeting of the City Council shall not invalidate a resolution or ordinance which has 4 been otherwise validly adopted, readopted or enacted pursuant to this Chapter and Charter Section 304. 5 SECTION 7. Section 1.08.080 (Validity presumed) of Chapter 1.08 (Resolutions and 6 Ordinances) of the City of San Bernardino Municipal CedesCode is hereby amended to read as follows: 7 8 1.08.080 Validity Presumed 9 Any ordinance or resolution heretofore adopted by the City Council, which is vetoed or not approved by the Mayor in a manner other than as provided in this 10 chapter.,or which is_heretofore adopted and enacted pursuant to the provisions of 11 Charter Section 304 as interpreted by administrative and legislative practices.,shall be conclusively presumed to be valid and enforceable. 12 SECTION 8. Section 1.08.090 (Effective dates) of Chapter 1.08 (Resolutions and 13 Ordinances) of the City of San Bernardino Municipal CedesCode is hereby amended to read 14 as follows: 15 1.08.090 Effective dates 16 Each ordinance of the Mayor and City Council of the City shall take effect en the day armor thirty days from and after the date of its adoption by the City Council if 17 approved by the Mayor. by the Gity Gouneil and appfaval by the Mayef. Each 18 resolution shall take effect on the date of its adoption by the legislative bedy City Council if approved-anal by the Mayor. This section shall not be applicable 19 to: 20 A. Ordinances and resolutions adopted by fewer than five affirmative votes 21 and which are vetoed by the Mayor of the City within the five-day period; and 22 23 B. Ordinances which contain urgency or emergency clauses providing for immediate effective dates; and 24 C. An ordinance or resolution which contains express language providing for 25 an effective date for such ordinance or resolution; and 26 D. Ordinances and resolutions adopted by five or more affirmative votes of the 27 City Council which are not approved within the five-day period by the Mayor, which shall be deemed to take effect upon adoption by the City 28 Council; and 3 i 1 E. Ordinances and resolutions relating to Charter Amendments as provided in 2 Section 1.08.060. 3 SECTION 9. Severability: If any section, subsection, subdivision, sentence,Of-clause er1 phrase. or word in this Resolution Ordinance or any part thereof is for any reason held to 4 be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such 5 decision shall not affect the validity or effectiveness of the remaining portions of this es Ordinance or any part thereof. The Mayor and City Council hereby declares that it 6 would have adopted each section irrespective of the fact that any one or more subsections, 7 subdivisions, sentences, clauses,or-phrases, or words be declared unconstitutional, invalid, or ineffective. 8 SECTION 10. Publication. This Ordinance shall take effect and be in full force thirt 9 (30) days from and after the passage thereof, and prior to the expiration of fifteen(15)days 10 from its passage shall be published once in a newspaper of general circulation printed and published in the City of San Bernardino or, in the alternative the City Clerk may cause to be 11 published a summary of this Ordinance and a certified copy of the text of this Ordinance shall be posted in the office of the City Clerk five (5) dLaysprior to the date of adoption of this 12 Ordinance, and within fifteen (15) days after adoption the City Clerk shall cause to be published the aforementioned summary and shall post in the office of the City Clerk a 13 certified copy of this Ordinance together with the names of the members of the City Council 14 voting for and against the same 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4 1 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN 2 BERNARDINO, CALIFORNIA, AMENDING PORTIONS OF CHAPTER 1.08 OF THE CITY OF SAN BERNARDINO MUNICIPAL CODE RELATING TO 3 RESOLUTIONS AND ORDINANCES TO IMPLEMENT THE PROVISIONS OF THE NEWLY ADOPTED CHARTER 4 5 I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor 6 and City Council of the City of San Bernardino at a meeting 7 thereof, held on the day of , 2017, by the following vote, to wit: 8 Council Members: AYES NAYS ABSTAIN ABSENT 9 10 MARQUEZ 11 BARRIOS 12 VALDIVIA 13 SHORETT 14 NICKEL 15 16 RICHARD 17 MULVIHILL 18 19 Georgeann Hanna, CMC, City Clerk 20 21 The foregoing Ordinance is hereby approved this day of 52017. 22 23 R. Carey Davis, Mayor 24 City of San Bernardino Approved as to form: 25 Gary D. Saenz, City Attorney 26 27 By: 28 5 ,, � k 1. 74� a d w " � �i, r w a 11-i>4"�r- ,'V�"i```6,�'s' s r �` �a �L�a� m e�� L `t a8i, hi' su�`zy4 i i yt `"X a .' t3,t �,i1ya '�'�s. 5 l ", ` �„ n M�N -, � "- _d: . ,-", � �,� :4,"� ", - -Jllli�, 11 s : �p �. ;'TMc k a� w " 5k I 11 - est ,.mss 3`. j� S 7> Writ > ,"tea ,. C� 4y' tfw'� '?'fe" : �` a' 11 x� ai q a a S x: , P f iY- .Y -, - - w a n -.. , ,..ti �` 1+ Y' , a yk _ -4 L W - V x, sa 11 u a k 4,—� ,, 4 x X 5 �1 n! s 3 ' 4, z 1a '.s m r G t F r fi �v ; . ii),- .�.,ran; 5, �,u ._ ., :rz ..x ,,, �ei' `�r ,"'' �°� .. ,. 'Y"`Y"�ua,`�'. '' .., I ORDINANCE NO. 2 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN 3 BERNARDINO, CALIFORNIA, REPEALING AND REPLACING CHAPTER 2.02 OF THE SAN BERNARDINO MUNICIPAL CODE REGARDING THE POSITION OF 4 CITY MANAGER 5 WHEREAS, the People of the City of San Bernardino adopted a new Charter at the 6 November 8, 2016 municipal election; and 7 WHEREAS, the new Charter was filed with the California Secretary of State on 8 January 31, 2017 and became effective on that date; and 9 WHEREAS, the new Charter changes the City's form of government to a Council/Manager form of Government; and 10 WHEREAS, existing provisions of the City's Municipal Code are inconsistent with 11 the new Charter and require revision. 12 NOW, THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF 13 SAN BERNARDINO DO ORDAIN AS FOLLOWS: 14 SECTION 1. Chapter 2.02 of the San Bernardino Municipal Code is hereby repealed 15 in its entirety and replaced as follows: 16 2.02.010 Position created There is created 17 the position of City Manager as required by Article IV of the City Charter. Any and all references to the administrative officer or City Administrator in any 18 ordinances, resolutions and documents of the City shall refer to and mean the City Manager. 19 2 02.020 Selection and Appointment 20 The City Manager shall have the qualifications and shall be chosen in accordance with 21 Article IV, Section 400 of the City Charter by at least five affirmative votes of the Mayor and 22 City Councils-ager. The City Manager shall devote his or her entire time to the duties of his or her office and shall not engage in any other business or occupation. 23 24 2.02.030 Discharge 25 The City Manager may be discharged by at least five affirmative votes of the Mayor and Cites Council and-May-er-as provided in Article IV, Section 400 of the City Charter. 26 2.02.040 Salary and benefits 27 28 The salary of the City Manager shall be fixed by the Mayor and City Council and it shall be paid in the same manner and at the same time as the salaries of other City employees. 1 1 He or she is granted and is entitled to all of the benefits conferred upon City employees relating to sick leave, vacation leave, holidays, medical insurance, workers' compensation and 2 travel expense, and by the Public Employees' Retirement System, and any other salary and/or benefits that may be provided by resolution or pursuant to an employment agreement between 3 the City and the City Manager. 4 2.02.050 Assistants 5 The Mayor and City Council shall create and maintain positions within the City's 6 authorized classification and salary list for an Assistant City Manager and Department Heads 7 for each of the City's authorized departments. In order to assist the City Manager in the performance of his or her duties, the City Manager may assign the performance of any of the 8 duties prescribed in this chapter to his or her assistants or Ddepartment 11heads. The City Manager may appoint an Assistant City Manager. 9 10 2.02.060 Duties of the City Manager 11 The City Manager shall perform the duties set out in Article IV, Section 401 of the City Charter, and such other duties as may be assigned to him or her by duly adopted 12 ordinance. In addition to the authority and duties outlined in Article IV, Section 401 of the 13 City Charter, the City Manager shall: 14 A. Determine the items and order of such items on the City Council's meeting agendas, subject to direction from the City Council; and 15 B. Confer regularly with the City Attorney on legal issues; immediately notify the 16 City Attorney of any important legal issues or difficulties that arise to obtain the 17 legal advice of the City Attorney, and carefully consider such advice, understanding that recommendations of the City Attorney are advisory only. Neither the City 18 Attorney, nor employees of the Office of the City Attorney, has the authority to issue orders to the City Manager or any of his/her subordinates; it is the 19 responsibility of the City Manager to ensure that all Manager-directed departments 20 and the employees of those departments perform all of their duties legally and that those departments and their employees are faithful in the observance, adherence, 21 and enforcement of all pertinent laws, ordinances, and legal requirements in the 22 performance of their duties and in their official conduct; 23 C. Sign all contracts, deeds, and other documents on behalf of the City when authorized to do so by the Mayor and City Council; and 24 D. See that all franchises, permits and privileges granted by the City, and the 25 provisions of all contracts to which the City is a party, are faithfully observed; and 26 E. Consolidate or combine duties, offices,positions, departments or units under 27 his or_her direction within the limits established by the Charter,this Code, or the annual budget; provided, however, that nothing herein contained shall be construed to 28 2 1 supersede the authority of the Personnel Commission in the matter of disciplinary appeals; and 2 F. Control, order and give directions to all heads of departments and to 3 subordinate officers and employees of the City under his,or her jurisdiction through 4 their department heads; and 5 G. Investigate as necessary all complaints and other matters concerning the administration of the City government; and 6 7 H. Close or restrict access to any and all public property owned or controlled by the City during the pendency of any construction, repair, remedial, maintenance or 8 modification work on public property upon reasonable notice to the public posted at or near the site of the proposed work; and 9 I. Exercise general supervision over all public buildings,public parks, and other 10 public property which are under the control and jurisdiction of the City Council and 11 not specifically delegated to a particular board or officer; and 12 J. Designate City officers or employees of the City to exercise the powers authorized by Section 836.5(a) of the California Penal Code, including the issuance of 13 citations for violations of the provisions of the San Bernardino M-municipal Ceode 14 pursuant to Sections 853.5 and 853.6 of the California Penal Code. He or she is also responsible for general policy supervision of the public safety functions and primary 15 liaison between these departments and the City Council; and 16 K. Ensure the preparation, posting, and publication of City Council meeting 17 agendas and of other Commission and Committee agendas in compliance with the law, as well as maintenance of the books and records of the City; and 18 L. As provided in Charter section 401(j) and section 502 to provide support staff 19 to the Mayor and City Council and to oversee and supervise the staff providing 20 services to the Mayor and City Council,with due respect for the wishes and work related needs of the Mayor and City Council; and 21 M. Ensure that no expenditures shall be submitted or recommended to the City 22 Council except on approval of the City Manager or his or her authorized 23 representative. The City Manager or his authorized representative shall purchase or cause to be purchased all supplies for all departments of the city, consistent with the 24 terms of the City's Purchasing System set forth in Chapter 3.04 of the San Bernardino Municipal Code, and within the spending limits imposed by the City Council bX 25 resolution or as authorized by the City Council; and 26 N. Make such administrative rules and regulations as the City Manager deems 27 necessary for the orderly administration of the various departments of the City. 28 3 1 2.02.070 Authority to file and prosecute small claims 2 The City Manager or his or her designated representative is authorized to file and prosecute actions on behalf of the City in the small claims courts of the state. The City 3 Manager or his or her designated representative is authorized to reduce the claim of the City 4 by an amount not in excess of the jurisdictional maximum amount of a small claims court. 5 2.02.080 Mayor and City-Council's authority over the City Manager and other City employees 6 Neither the Mayor nor any member of the City Council,nor any other elected City 7 official, nor the City Council, nor any of its committees or members shall dictate or attempt to dictate, either directly or indirectly,the appointment of any person to office or employment by 8 the City Manager, or in any manner interfere with or prevent the City Manager from exercising judgment in the appointment of officers and employees.in the administrative 9 service. Neither the Mayor nor City Council Members shall give orders to any of the subordinates of the City Manager, either publicly or privately, provided, however,that this 10 provision is not intended to interfere with the Mayor and Council's ability to interact with and 11 direct the staff providing services directly to the Mayor and City Council under the supervision of the City.Manager. 12 13 2.02.090 Accountability_and Expectations 14 In order to most effectively ensure that the Council-Manager form of government works properly, the Mayor and City Council will jointly develop clear expectations of the City 15 Manager and hold him/her accountable by conducting performance evaluations at least once a 16 'ear. 17 SECTION 2. INCONSISTENCIES. Any provision of the San Bernardino Municipal Code or appendices thereto inconsistent with the provisions of this Oerdinance, to the extent 18 of such inconsistencies aad of f i , is hereby repealed or modified to the extent necessary to affect the provisions of this Oerdinance. 19 20 SECTION 3. SEVERABILITY. If any section, subsection subdivision sentence clause, phrase, or word in this Ordinance or any part thereof is for any reason held to be 21 unconstitutional, invalid or ineffective by any court of competent jurisdiction such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any 22 part thereof. The Mayor and City Council hereby declares that it would have adopted each 23 section irrespective of the fact that any one or more subsections subdivisions sentences clauses, phrases, or words be declared unconstitutional invalid or ineffective 24 %stanees is held to be uneensfittAienal or-other-wise invalid by any eeu14 ef eempet 25appheafiens, 26provision,lid appheation,phfase er-wer-ds; and to this end, the previsions of this efdinanee af-e deelar-ed te 27 be se o..able 28 4 1 SECTION 4. PUBLICATION. This Ordinance shall take effect and be in full force thirty(30) days from and after the passage thereof, and prior to the expiration of fifteen(15) days 2 from its passage shall be published once in a newspaper of general circulation, printed and published in the City of San Bernardino or, in the alternative, the City Clerk may cause to be 3 published a summary of this Ordinance and a certified copy of the text of this Ordinance shall be 4 posted in the office of the City Clerk five (5) days prior to the date of adoption of this Ordinance, and within fifteen (15) days after adoption, the City Clerk shall cause to be published the 5 aforementioned summary and shall post in the office of the City Clerk a certified copy of this Ordinance together with the names of the and members of the City Council voting for and 6 against the same. 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5 1 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, REPEALING AND REPLACING CHAPTER 2.02 OF 2 THE SAN BERNARDINO MUNICIPAL CODE REGARDING THE POSITION OF CITY MANAGER 3 4 I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor 5 and City Council of the City of San Bernardino at a meeting 6 thereof, held on the day of , 2017, by the following vote, to wit: 7 8 Council Members: AYES NAYS ABSTAIN ABSENT 9 MARQUEZ 10 BARRIOS 11 VALDIVIA 12 SHORETT 13 NICKEL 14 15 RICHARD 16 MULVIHILL 17 18 Georgeann Hanna, CMC, City Clerk 19 20 The foregoing Ordinance is hereby approved this day of 2017. 21 22 R. Carey Davis, Mayor 23 City of San Bernardino Approved as to form: 24 Gary D. Saenz, City Attorney 25 26 By: 27 28 6 r 7 { `I i i i e i 3 i g� i •� e 9 7 7d 7 f 1 ORDINANCE NO. 2 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN 3 BERNARDINO, CALIFORNIA, REPEALING AND REPLACING SECTION 2.01.010 OF THE SAN BERNARDINO MUNICIPAL CODE REGARDING MAYOR PRO 4 TEMPORE TO CONFORM TO THE CITY'S CHARTER 5 WHEREAS, on November 8, 2016 the Citizens of the City of San Bernardino enacted 6 a new City Charter; and 7 WHEREAS,the City Council desires to amend the City of San Bernardino Municipal 8 Code to implement the new City Charter, which took effect on January 31, 2017. 9 NOW, THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: 10 SECTION 1. Section 2.01.010 of the San Bernardino Municipal Code is hereby 11 repealed and replaced in its entirety with the following: 12 2.01.010 Mayor Pro Tempore 13 San Befn feline City C "' Section 302 of the City Charter identifies the 14 position of Mayor Pro Tempore. At the first regularly scheduled meeting of the City Council following the effective date of this Oerdinance, the City Council shall elect a 15 Council Member to serve as Mayor Pro Tempore. At the second regularly scheduled 16 meeting of the City Council in December of each year, the City Council shall elect a Council Member to serve as Mayor Pro Tempore. 17 If the Mayor Pro Tempore is absent or otherwise unavailable to serve in such 18 capacity, the Council Member present in the City with the most consecutive days of 19 service as a member of the City Council of the City of San Bernardino shall serve as the Mayor Pro Tempore for that period of absence or unavailability only. "Consecutive 20 days of service" shall be calculated by counting backward in time starting from the 21 day on which the calculation is being made. 22 In the event that there are two or more Council Members with the exact same number of consecutive days of service as a member of the City Council of the City of 23 San Bernardino,the temporary filling of the position of Mayor Pro Tempore shall be determined by lot,pursuant to the general procedure established in Section 15651 of 24 the Elections Code of the State of California, specifically by flipping a coin in the case 25 of two members with the exact same number of consecutive days of service as a member of the City Council of the City of San Bernardino, or the drawing of straws in 26 the case of three or more members with the exact same number of consecutive days of service as a member of the City Council of the City of San Bernardino. The City Clerk 27 shall be responsible for conducting the coin toss or conducting the drawing of straws 28 whenever either event is required by this Section. 1 1 The Council Member holding the position of Mayor Pro Tempore shall continue to hold said position until his/her successor is elected by the City Council or 2 until said Council Member is no longer a member of the City Council, whichever occurs first. 3 4 Pursuant to Charter Section 302, in the absence of the Mayor from any Council meeting,the Mayor Pro Tempore shall preside over that Council meeting. 5 In addition, at all other times that the Mayor is temporarily unable to perform the 6 duties of his or her office, the Mayor Pro Tempore shall have all powers and authority 7 that the Mayor would have possessed if present to perform his or her duties. However, the Mayor Pro Tempore may not cast an additional vote in the event of a tie 8 or exercise veto powers over City Council action, but may continue to exercise his or her vote as a Council Mmember. 9 SECTION 2. INCONSISTENCIES. Any provision of the San Bernardino Municipal 10 Code or appendices thereto inconsistent with the provisions of this Oerdinance, to the extent 11 of such inconsistencies and of ft fft e f, is hereby repealed or modified to the extent necessary to eaffect the provisions of this Oerdinance. 12 SECTION 3. SEVERABILITY. If any section, subsection subdivision sentence 13 clause, phrase, or word in this Ordinance or any part thereof is for any reason held to be 14 unconstitutional, invalid or ineffective by any court of competent jurisdiction such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or an_v 15 part thereof. The Mayor and City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections subdivisions sentences 16 clauses, phrases, or words be declared unconstitutional invalid or ineffective 17 18 ; 19 to this end the f this di a , a to be b 20 SECTION 4. PUBLICATION. This Ordinance shall take effect and be in full force 21 thirty (3 0) days from and after the passage thereof, and prior to the expiration of fifteen(15) days from its passage shall be published once in a newspaper of general circulation,printed 22 and published in the City of San Bernardino or, in the alternative, the City Clerk may cause to 23 be published a summary of this Ordinance and a certified copy of the text of this Ordinance shall be posted in the office of the City Clerk five (5) days prior to the date of adoption of this 24 Ordinance, and within fifteen(15) days after adoption,the City Clerk shall cause to be published the aforementioned summary and shall post in the office of the City Clerk a 25 certified copy of this Ordinance together with the names of the and members of the City 26 Council voting for and against the same. 27 28 2 •mow 1 /// 2 3 4 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN 5 BERNARDINO, CALIFORNIA, REPEALING AND REPLACING SECTION 2.01.010 OF THE SAN BERNARDINO MUNICIPAL CODE REGARDING MAYOR PRO 6 TEMPORE TO CONFORM TO THE CITY'S CHARTER 7 I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor 8 9 and City Council of the City of San Bernardino at a meeting 10 thereof, held on the day of , 2017, by the following vote, to wit: 11 Council Members: AYES NAYS ABSTAIN ABSENT 12 MARQUEZ 13 BARRIOS 14 15 VALDIVIA 16 SHORETT 17 NICKEL 18 RICHARD 19 MULVIHILL 20 21 22 Georgeann Hanna, CMC, City Clerk 23 24 The foregoing Ordinance is hereby approved this day of , 2017. 25 26 R. Carey Davis, Mayor 27 Approved as to form: City of San Bernardino 28 Gary D. Saenz, City Attorney I 3 1 By. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4 Yf 1 3� i i'. f ��', 1 ORDINANCE NO. 2 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN 3 BERNARDINO, CALIFORNIA, REPEALING AND REPLACING CHAPTER 2.58 OF THE SAN BERNARDINO MUNICIPAL CODE REGARDING MEETINGS 4 5 WHEREAS, on November 8, 2016 the Citizens of the City of San Bernardino enacted a new City Charter; and 6 WHEREAS, the City Council desires to amend the City of San Bernardino Municipal 7 Code to implement the new City Charter, which took effect on January 31, 2017. 8 NOW, THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF 9 SAN BERNARDINO DO ORDAIN AS FOLLOWS: 10 SECTION 1. Chapter 2.58 of the San Bernardino Municipal Code is hereby repealed 11 and replaced in its entirety with the following: 12 2.58.010 Mayor and City Council 13 A. Regular meetings of the Mayor and City Council of the City of San Bernardino shall be held on the second and this fourth TuesdaysMendays of each month 14 commencing at twe p.m. (2iA8 p.m.) for Closed Session and at 15 €ems p.m. (4-.-00p.m.) for Open Session at the City Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California, or such 16 other location within the City as may be properly noticed. if said fifst of thi a Monday is a legal heliday, then said r-egulaf meeting shall be held en the fellewing 17 day eemmeneing a4 two (1;00 p.m.) for-Clesed Sessien afid at fbuf p.m. (4.!00 18 p.m.) for Open Session. 19 B. Such meetings shall be adjourned, held and continued in accordance with the provisions of Government Code Sections 54954, 54955, 54955.1, 54956, 54956.5 20 and other applicable sections and any amendments thereto. Regular meetings shall be held at the City Hall of the City, or such other location within the City as may be 21 properly noticed. Adjourned meetings, special meetings and adjourned special 22 meetings may be held at any convenient location approved by the Mayor and City Council either within or without the corporate limits of the City, as may be 23 permitted by state law. 24 2.58.020 Meetings of boards, commissions and committees 25 The dates, times and places of regular meetings of all boards, commissions and 26 committees of the City shall be set forth in one or more ordinances or resolutions of the Mayor and City Council. 27 28 1 1 2.58.030 City Council Conduct- Generally 2 As provided in Section 302 of the Charter, the City Council and Mayor are required to implement a Code of Conduct to guide their interactions and create accountability. 3 In accordance with Section 302, the members of the City Council shall conform their 4 conduct to the following rules: 5 A. The role of the City Council is legislative in character, which includes the power to set policy, approve contracts and agreements not within the authority of the City 6 Manager or his subordinates, and undertake other obligations consistent with the 7 Charter and Code, while deferring to the discretion of management and staff to choose the appropriate means to achieve the Council's goals 8 B. The City Council, as the elected body serving all of the residents of the City, shall 9 perform its duties and exercise its powers in a manner that serves the best interests of 10 the entire City, rather than any particular geographic area or special interest 11 2.58.040 Mayor's Conduct- Generally 12 A. The Mayor will build consensus with the City Council to create and implement a 13 shared vision and plan of implementation to restore the City's fiscal inte rg i1y. 14 B. The Mayor will establish and maintain partnerships and regional leadership roles to advance the City's interest. 15 16 C. The Mayor will be the chief spokesperson for the City. 17 D. The Mayor will be the presiding officer at meetings of the City Council and will fully participate in discussions. 18 E. The Mayor will work with the City Council and City Manager to coordinate goal 19 setting and the performance evaluation of the Ci . Manager. 20 2.58.050 Conduct at Meetings and Relating to City Business 21 The residents and businesses of the City of San Bernardino are entitled to have fair, 22 ethical and accountable local government which has earned the public's full 23 confidence for integrity. The City will operate in an open,honest and transparent manner. To this end,the Mayor and City Council of the City of San Bernardino will 24 adhere to the following Code of Conduct to assure public confidence in the integrity of local government, its effective operations, and fair treatment of people. 25 26 A. The professional and personal conduct of the Mayor and City Council must be above reproach and avoid the appearance of impropriety. The Mayor and members 27 of the City Council shall refrain from abusive conduct, personal or verbal attacks upon the character or motives of each other, the staff or the public. 28 2 1 B. The Mayor and members of the City Council shall perform their duties in accordance with the procedural rules for meetings established by them in 2 governing the deliberation of public policy issues involvement of the public and the implementation of policy decisions of the Mayor and City Council by City 3 staff. 4 C. The Mayor and City Council shall prepare themselves for public issues; listen courteously and attentivelyto public discussions before the body' and focus on 5 the business at hand. They shall refrain from interrupting other speakers; making personal comments not germane to the business of the body; or otherwise 6 interfering with the orderly conduct of meetings 7 D. The Mayor and City Council shall base their decisions on the merits and substance of the matter at hand, rather than on unrelated considerations 8 E. The Mayor and City Council shall publicly share substantive information that is relevant to the matter under their consideration which they may have received 9 from sources outside of the public decision-making process F. _I_n order to assure their independence and impartiality on behalf of the common 10 good, the Mayor and City Council shall not use their official positions to influence 11 government decisions in which they have a material financial interest; or where they have an organizational responsibility or personal relationship which may_give 12 the appearance of a conflict of interest G. The Mayor and City Council shall not take any special advantage of services or 13 opportunities for personal gain, by virtue of their public office that is not available 14 to the public in general. They shall refrain from accepting any gifts favors or promises of future benefits which might compromise their independence of 15 judgment or action or give the appearance of being compromised H. The Mayor and City Council shall respect the confidentiality of information 16 concerning the property, personnel or affairs of the City.They shall neither 17 disclose confidential information without proper legal authorization nor use such information to advance their personal financial or other private interest 18 I. The Mayor and City Council shall not use public resources that are not available to the public in general, such as City staff time equipment supplies or facilities for 19 private gain or personal purposes. 20 J. The Mayor and Cijy Council shall refrain from using their position to unduly influence the deliberations or outcomes of commission proceedings 21 K. The Mayor and City Council will not divert management from the approved priorities with issues of personal interest or requests for information that may 22 require significant staff resources without the active approval of the majorijy of the 23 Mayor and City Council. The Council will come to consensus regarding mayor issues that need further exploration and analysis so as to judiciously give direction 24 to the City Manager and his staff. This language does not prohibit the Mayor Council Members, City Attorney, or City Clerk from bringing information 25 forward and discussing it with the City Manager and/or staff. 26 L. When the Mayor and City Council have not taken a position on an issue neither the Mayor nor any Council Member should speak on behalf of the Mayor and City 27 Council. When presenting their individual opinions and positions Council Members should explicitly state that they do not represent their body,the City of 28 San Bernardino, nor should they encourage the inference that they do After a 3 1 decision is made, the Mayor serves as the spokesperson for the City's view on policy matters; the City Council should speak with "one voice." 2 M. The Mayor and City Council shall support the maintenance of a positive and constructive work place environment for City employees and for residents and 3 businesses dealing with the City. The Mayor and City Council shall recognize their 4 special role in dealings with City employees and in no way create the perception of inappropriate direction to staff. 5 N. With respect to communications with the City Manager and staff 1. Unless it is a simple inquiry, the Mayor or members of the City Council 6 will contact the City Manager beforeoin to o Department Heads 7 2. When contacting Department Directors through e-mail the Mayor and Council Members will copy the City Manager as a courtesy. 8 3. The City Manager will ensure that the Mayor and City Council are proactively informed on major policy issues or issues that mgy attract 9 media or public attention; likewise the Mayor and City Council 10 members will give the City Manager notice if he or she learns of issues of concern. 11 4. The Mayor, City Council City Manager and staff will not blindside each other in public. 12 5. Council members are encouraged to submit questions on agenda items to the City Manager as far in advance of the meeting as possible so that 13 staff can be prepared to respond at the meeting_ 14 6. The Mayor and City Council will refer citizen complaints to staff and give them adequate time to respond Staff will report back to the 15 Council through the City Manager on the resolutions of these complaints. 16 7. The Mayor and Councilmembers will be provided with information 17 from staff and other members on an equal basis so that theequally prepared to make good decisions 18 19 20 2.58.060 Prohibiting disruptive conduct at meetings The Mayor or any member of the City Council shall not engage in disorderly 21 or disruptive conduct_in the presence of the City Council at public meetings, which conduct actually disrupts, disturbs or impedes the City Council meeting. The City 22 Council shall have power to punish the Mayor or any of its members for disorderly or 23 disruptive conduct_in its presence after first providing notice of the prohibited behavior and an opportunity to be heard. The fine shall not exceed the sum of fifty dollars. 24 25 2.58.070 Willful Disruptions of Meetings of the Mayor and 26 Common City Council 27 Understanding that the purpose of the meetings of the Mayor and City Council is to conduct the people's business for the benefit of all the people, in the event that any 28 meeting of the Mayor and City Council is willfully disrupted by a person or by a group 4 1 of persons so as to actually impair the orderly conduct of the meeting, the Mayor may proceed pursuant to Government Code §54957.9 or any applicable penal statute or 2 ordinance. For the purposes of these rules "wWillfully disrupt" includes, but is not limited to, continuing to do any of the following after being warned by the Mayor that 3 continuing to do so will be a violation of law: 4 a. Addressing the Mayor and City Council without first being recognized. b. Persisting in addressing a subject or subjects, other than that before the Mayor and 5 City Council. c. Repetitiously addressing the same subject. 6 d. Failing to relinquish the podium when directed to do so. 7 e. From the audience, interrupting or attempting to interrupt, a speaker,the Mayor, a Council member, or a staff member or shouting or attempting to shout over a 8 speaker, the Mayor, a Council member or a staff member. f. As a speaker, interrupting or attempting to interrupt the Mayor, a Council member, 9 or a staff member, or shouting over or attempting to shout over the Mayor, a Council member, or a staff member. Nothing in this section or any rules of the Council shall be 10 construed to prohibit public criticism of the policies,procedures,programs, or services 11 of the City or of the acts or omissions of the Mayor and City Council. It shall be unlawful to violate the provisions of this sSection. If any subsection, sentence, clause, 12 or phrase or word of this sSection 2.58.0704-05 is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of 13 this sSection. The Mayor and City Council hereby declare that it would have passed 14 this section and each subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more subsections, sentences, clauses,phrases or words had 15 been declared invalid or unconstitutional. 16 2.58.080 Holidays 17 In the event the date of a meeting falls on a City holiday,the next business day 18 following such holiday shall be the meeting date, at the same time and place, except as 19 determined by the City Council. 20 2.58.090 Familiarity with Ralph M. Brown Act required 21 The clerk or secretary of each board, commission and committee shall review and be familiar with the provisions of the Ralph M. Brown Act, Government Code 22 Section 54950, et seq. 23 2.58.100 Continuances; fee 24 Any person, firm, corporation or other entity having an appeal, or other item on the 25 agenda of the Mayor and City Council may request a continuance of such item by 26 submitting a request therefor to the City Clerk prior to the item being heard. Such request must be accompanied by a processing fee established by resolution of the 27 Mayor and City Council. The granting of a continuance shall be subject to the complete discretion of the Mayor and City Council taking all of the facts and 28 circumstances of the matter into consideration. If the request for continuance is 5 1 received by telephonic communication or other means where the requester is not present, the continuance may be granted subject to the receipt of the processing fee 2 prior to the new agenda date. Should the request for a continuance be denied any processing fee paid shall be returned upon application made by the payor within ninety 3 (90) days. Any subsequent request for a continuance shall require an additional fee. 4 The fee provided for by this ordinance and set by any resolution adopted pursuant thereto shall not apply to any continuance requested by the City, any department or 5 officer thereof or by any agency or other entity which is funded primarily by the City. 6 7 SECTION 2. INCONSISTENCIES. Any provision of the San Bernardino Municipal 8 Code or appendices thereto inconsistent with the provisions of this ordinance, to the extent of such inconsistencies and or-f6fti , is hereby repealed or modified to the extent necessary to 9 eaffect the provisions of this ordinance. 10 SECTION 3. SEVERABILITY. If any section, subsection, subdivision, sentence, 11 clause, phrase, or word in this Resolution Ordinance or any part thereof is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such 12 decision shall not affect the validity or effectiveness of the remaining portions of this ResolutionOrdinance or any part thereof. The Mayor and City Council hereby declares that it 13 would have adopted each section irrespective of the fact that any one or more subsections, 14 subdivisions, sentences, clauses,phrases, or words be declared unconstitutional, invalid, or ineffective. 15 16 17 SECTION 4. PUBLICATION. This Ordinance shall take effect and be in full force thirty(30)days from and after the passage thereof, and prior to the expiration of fifteen (15) 18 days from its passage shall be published once in a newspaper of general circulation,printed and published in the City of San Bernardino or, in the alternative,the City Clerk may cause to 19 be published a summary of this Ordinance and a certified copy of the text of this Ordinance 20 shall be posted in the office of the City Clerk five (5) days prior to the date of adoption of this Ordinance, and within fifteen(15) days after adoption,the City Clerk shall cause to be 21 published the aforementioned summary and shall post in the office of the City Clerk a certified copy of this Ordinance together with the names of the-and-members of the City 22 Council voting for and against the same. 23 24 25 26 27 28 6 1 2 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN 3 BERNARDINO, CALIFORNIA, REPEALING AND REPLACING CHAPTER 2.58 OF 4 THE SAN BERNARDINO MUNICIPAL CODE REGARDING MEETINGS 5 I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor 6 and City Council of the City of San Bernardino at a meeting 7 thereof, held on the day of , 2017, by the following vote, to wit: 8 9 Council Members: AYES NAYS ABSTAIN ABSENT 10 MARQUEZ 11 BARRIOS 12 VALDIVIA 13 SHORETT 14 NICKEL 15 16 RICHARD 17 MULVIHILL 18 19 20 Georgeann Hanna, CMC, City Clerk 21 The foregoing Ordinance is hereby approved this day of 2017. 22 23 R. Carey Davis, Mayor 24 City of San Bernardino 25 Approved as to form: Gary D. Saenz, City Attorney 26 27 By: 28 7 I RESOLUTION NO. 2017- 2 RESOLUTION OF THE SUCCESSOR AGENCY TO THE 3 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO APPROVING THE PURCHASE AND SALE AGREEMENT BETWEEN THE 4 CITY OF SAN BERNARDINO AND THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 5 WITH RESPECT TO THE REAL PROPERTY LOCATED AT 280 SOUTH "E" STREET, SAN BERNARDINO, CALIFORNIA (APN 0136-11-26), AND 6 APPROVING CERTAIN RELATED ACTIONS 7 WHEREAS, pursuant to Health and SafetyCod " e (the "HSC") § 34172 (a) (1), the 8 Redevelopment Agency of the City of San Bernardino was dissolved on February 1, 2012; and 9 WHEREAS, consistent with the provisions of the HSC, on January 9, 2012 the Mayor and 10 City Council of the City of San Bernardino elected to serve in the capacity of the Successor Agency 11 to the Redevelopment Agency of the City of San Bernardino(the"Successor Agency"); and 12 WHEREAS, the Oversight Board for the Successor Agency ("Oversight Board") has been 13 established pursuant to HSC § 34179 to assist in the wind-down of the dissolved redevelopment 14 agency; and 15 WHEREAS, on September 15, 2015, the Successor Agency submitted its Oversight 16 Board-approved Long-Range Property Management Plan (the "LRPMP") to the California 17 Department of Finance (the "DOF"); and 18 WHEREAS, on December 31, 2015, the DOF approved the Successor Agency's LRPMP 19 and notified the Successor Agency that pursuant to HSC § 34191.3, the approved LRPMP shall 20 govern, and supersede all other provisions relating to the disposition and use of all the real property 21 assets of the former redevelopment agency; and 22 WHEREAS, the approved LRPMP, which addresses the disposition and use of the real 23 property assets held by the Successor Agency, includes 230 parcels of land grouped into forty-six 24 (46) separate sites, eighteen (18) of which were designated as government use sites, seven (7) of 25 which are designated as future development sites and twenty-one (21) of which were designated to 26 be sold; and 27 u1OC 3-zo-1-j 23 28 1 1 WHEREAS, consistent with the foregoing,the Successor Agency is the owner of that certain 2 real property consisting of approximately 27.20 acres of vacant land located at 280 South `B" Street, 3 San Bernardino, California(APN 0136-111-26) (the "Property"); and 4 WHEREAS, within the LRPMP, the Property is: i) identified as Site No. 6; ii) described as a 5 baseball stadium park; iii) designated for government use; and iv) more fully described within Exhibit 6 "A" attached hereto, which is an excerpt from the LRPMP; and 7 WHEREAS, in its December 31, 2015 letter approving the LRPMP, the California 8 Department of Finance (the "DOF") unilaterally amended the LRPMP with respect only to the 9 Property to require its sale; and 10 WHEREAS, after the approval of the LRPMP, the Successor Agency appealed DOF's 11 unilateral decision to reclassify the Property from "government use" to "for sale"; however, on June 12 24, 2016, the DOF denied the Successor Agency's appeal related to the Property and notified the 13 Successor Agency that the Property must be sold and that it may be sold to a third party or to a 14 public entity, which could include the City of San Bernardino (the "City"), at any price agreed upon 15 by the affected parties without DOF's review or approval; and 16 WHEREAS, notwithstanding DOF's June 24, 2016 notification, the LRPMP requires that 17 the Successor Agency obtain Oversight Board and DOF approval of property sales; and 18 WHEREAS, consistent with DOF's direction, the City wishes to purchase and the Successor 19 Agency wishes to sell the Property for a fair and reasonable price;and 20 WHEREAS, to establish a fair and reasonable price for the Property, the Successor Agency 21 engaged Valbridge Property Advisors (the "Valbridge")to value the Property; and 22 WHEREAS, as more particularly described within the Valbridge Appraisal, a summary 23 copy of which is appended to this Resolution as Exhibit `B", it is Valbridge's opinion that the value 24 of the Property, as though vacant, is $4,440,000 (the "Vacant Land Value") (see paragraph 4, page 25 58 of the Valbridge appraisal); and 26 WHEREAS, given that the existing improvements on the Property are single-purpose, not 27 readily adaptable to an alternate and highest and best use and would have to be removed to allow 28 for a modern reuse of the property consistent with existing land-use restrictions, the Successor i� 2 J I Agency engaged TKE Engineering, an Inland Empire-based civil engineering firm with experience 2 with demolition projects, to conduct an engineering study for the purpose of determining the 3 estimated cost of demolishing the existing improvements to determine at a net Property value (the 4 "TKE Engineering Study"); and 5 WHEREAS, as more particularly described within the December 2, 2016 TKE 6 Engineering Study, a copy of which is appended to this Resolution as Exhibit "C", the demolition 7 costs for the existing improvements are projected to be $4,400,000 (the "Projected Demolition 8 Costs"); and 9 WHEREAS, although Valbridge attempted to arrive at a net Property value through an 10 elaborate process of economic extrapolation, the result was deemed inadequate based on an 11 apparent lack of understanding with respect to the: i) currently viable economic trends in the City 12 (i.e., Valbridge's reuse assumptions were economically unrealistic); and ii) practical site 13 preparation prerequisites that would be required for reusing the Property for modern alternate and 14 highest and best uses (i.e., Valbridge lacks civil engineering experience, did not engage a civil 15 engineer to assist them and appears to be unfamiliar with both developer and local government site 16 development requirements); and 17 WHEREAS, TKE Engineering has prepared a March 15, 2017 supplement to the TKE 18 Engineering Study that explains why the Project Demolition Costs remain valid and why the 19 theoretical demolition costs presented by Valbridge should not be considered, a copy of which is 20 included within Exhibit"C"to this Resolution; and 21 WHEREAS, in consideration of the foregoing, the Successor Agency has: i) accepted 22 Valbridge's Vacant Land Value as reasonable; ii) not accepted Valbridge's opinion regarding its 23 theoretical demolition costs as reasonable; and iii) accepted TKE's Projected Demolition Costs as 24 reasonable; and 25 WHEREAS, based on the foregoing, it is concluded that the net value of the Property is 26 $40,000, which is equal to the Vacant Land Value less the Projected Demolition Costs (i.e., 27 $4,440,000 less$4,400,000= $40,000) (the"Purchase Price"); and 28 3 I WHEREAS, this Resolution will approve the Purchase and Sale Agreement (the 2 "Agreement") between the Successor Agency and the City with respect to the Property, a copy of 3 which is attached to this Resolution as Exhibit"D", and authorize certain related actions; and I i 4 WHEREAS, consistent with the provisions of the HSC and the LRPMP with respect to 5 real property to be sold, the effectiveness of the Agreement is subject to the approval of the 6 Oversight Board and the DOF; and 7 WHEREAS, subject to the approvals of the Oversight Board and DOF, the Successor 8 Agency intends to distribute the land sale proceeds to the San Bernardino County Auditor- 9 Controller for distribution to the taxing entities; and 10 WHEREAS, all actions required by all applicable law to be taken by the Successor 11 Agency with respect to the Agreement have been taken in an appropriate and timely manner; and 12 WHEREAS, the Successor Agency has reviewed the staff report in connection with this 13 matter and has evaluated other information provided to it pertaining to the findings proposed to be 14 made hereunder; and 15 WHEREAS, this Resolution has been reviewed with respect to applicability of the 16 California Environmental Quality Act (the "CEQA"), the State CEQA Guidelines (California Code 17 of Regulations, Title 14, § 15000 et seq., hereafter the "CEQA Guidelines"), and the City's 18 environmental guidelines; and 19 WHEREAS, this Resolution does not constitute a "project" for purposes of CEQA, as that 20 term is defined by CEQA Guidelines § 15378, because this Resolution is an organizational or 21 administrative activity that will not result in a direct or indirect physical change in the environment, 22 per§ 15378 (b) (5)of the CEQA Guidelines; and 23 WHEREAS, all of the prerequisites with respect to the approval of this Resolution have 24 been met. 25 BE IT RESOLVED BY THE SUCCESSOR AGENCY TO THE REDEVELOPMENT 26 AGENCY OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 27 Section 1. The foregoing recitals are true and correct and are a substantive part of this 28 Resolution. 4 I Section 2. The Purchase Price for the Property is determined to be fair and reasonable. 2 Section 3. The Agreement for the purchase and sale of the Property, attached hereto as 3 Exhibit"D", is approved. 4 Section 4. On behalf of the Successor Agency, the City Manager, in the capacity as 5 Executive Director of the Successor Agency, is authorized and directed to: i) 6 execute the Agreement in substantially the form presented; ii) make 7 ministerial revisions to the Agreement which do not increase the Successor 8 Agency's obligations or materially reduce the consideration payable to the 9 Successor Agency; iii) sign a quitclaim deed and any other documents the 10 execution of which is necessary or appropriate to carry out and implement 11 the Agreement; iv) administer the Successor Agency's obligations under the 12 Agreement; and v) take such other actions and execute such other documents 13 as are necessary as may otherwise be required to fulfill the intent of this 14 Resolution. 15 Section 5. This Resolution is not a "project" for purposes of CEQA, as that term is 16 defined by Guidelines § 15378, because this Resolution is an organizational 17 or administrative activity that will not result in a direct or indirect physical 18 change in the environment, per § 15378 (b)(5) of the Guidelines. 19 Section 6. This Resolution shall take effect only after its adoption and execution in the 20 manner as required by the City Charter and San Bernardino Municipal Code 21 and the approval of the Agreement by the Oversight Board and the DOF. 22 23 24 25 l 26 I 27 28 /Il 5 1 RESOLUTION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 2 APPROVING THE PURCHASE AND SALE AGREEMENT BETWEEN THE 3 CITY OF SAN BERNARDINO AND THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 4 WITH RESPECT TO THE REAL PROPERTY LOCATED AT 280 SOUTH "E" STREET, SAN BERNARDINO, CALIFORNIA (APN 0136-11-26), AND 5 APPROVING CERTAIN RELATED ACTIONS 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City 7 Council of the City of San Bernardino, in its capacity as the Successor Agency to the 8 Redevelopment Agency of the City of San Bernardino at a regular meeting thereof, held on the 201h 9 day of March, 2017, by the following vote, to wit: 10 11 Council Members Ayes Navs Abstain Absent 12 MARQUEZ 13 BARRIOS 14 VALDIVIA SHORETT 15 NICKEL 16 RICHARD 17 MULVIHILL 18 19 20 Georgeann Hanna, CMC, City Clerk 21 The foregoing Resolution is hereby approved this day of March 2017. 22 23 R. Carey Davis, Mayor 24 City of San Bernardino 25 Approved as to Form: 26 Gary D. Saenz, General Counsel 27 By: 28 6 Successor Agency to the Redevelopment Agency ofthe City of San Bernardino Long-Range Property Management Plan September 201 S Amended Dea•mb l Site No. 6: Baseball Stadium Park Address: 280S "E"Street APIC• 0136-111-23 rT tL 39 111.Properly to be Transferred for Future Development Site No. 6—Baseball Stadium Park Successor Agency to the Redevelopment Agenq�ofthe Cir)-of San Bernardino Long-Range Property Management Plan September 2075 ,amended December?.01.5 Site No. b: Baseball Stadium Park A. Permissible Use(HSC.$34191.5(c)(2)): Site No. 6 is the Baseball Stadium Park(the"Baseball Park") and is proposed to be transferred to the City of San Bernardino as governmental use property subject to a determination by DOF described in Sections"G"and "J"below. B. Acquisition ofPiwPerty(HSC$34191.5(c) (1) (A) and,$34191.5(c) (1) (B)): Property records indicate that the Baseball Park was acquired by the Agency in several separate transactions and carries a total Book Value of S 18,071,278. The following table details the property records: al APNs as APN Acquisition Date 7,,v.,,7,.7 uired by Historical Background Agency March 1990 , 6-101-09 0136-101-19 0136-101-24 March 2005,Certificate of December 1991 $1,276,487 0136-101-27 Compliance,Document No. 0136-111-23 0136-111-04 2005-0502595,was December 1993 $299,019 0136-111-05 recorded in the County of 0136-1 11-17 San Bernardino,creating July 1987 $1,200,000 0136-111-21 APN 0136-111-23 October 1995 $14,995,772 0136-111-22 The Baseball Park was acquired by the Agency in order to meet the revitalization goals of the City and the Agency to alleviate the existence and spread of physical and economic blight by assembling land and preparing property for future development. The estimated current value (the "ECV")of the Baseball Park is to be determined("TBD")through an appraisal. C. Site Information (HSC 6 34191.5(c) (1) (C)): The Baseball Park consists of one(1)27.20-acre parcel (APN 0136-111-23)located at 280 S. "E" Street. The Baseball Park contains a 1,184,832 sfbaseball stadium and an adjacent parking lot that were constructed in 1997. The Baseball Park is zoned Central City South (CCS-1) in the City's General Plan. The purpose of the CCS-I zone is to permit general retail,professional office, and medical types of uses. D. Estimated Current Value(HSC S 34191.5(c) (1) (D)): There is no reasonable way to detennine an ECV for the Baseball Park without conducting an official appraisal. An appraisal shall be conducted as part of the process to develop the Baseball Stadium. Therefore,the ECV is TBD through an appraisal. E. Site Revenues(HSC.$34191.5(c) (1) (E): On June 28, 1996,the San Bernardino Stampede,Inc. (the"Team")entered into a Lease with San Bernardino to lease the then newly constructed Baseball Park. The original term of the Lease was to December 31, 2006, with 2 5-year options, terminating on December 31, 2016. The Team is responsible for routine maintenance of the playing field and dugouts at the Baseball Park. San 40 III.Property to be Transferred for Future Development Site No.6-Baseball Stadium Park Successor Agency to the Redevelopment Agenry of the City of San Bernardino Long-Range Property Management Plan September 101 S Amended December 21,1 i Site No. 6: Baseball Stadium Park Bernardino is responsible for all capital related maintenance and improvements to the Baseball Park including but not limited to plumbing, heating, air conditional, electrical, and lighting. The lease includes both a base and performance based rental structure that may be offset to the extent that San Bernardino is unable to meet its maintenance obligations for the Baseball Park. Due to the lack of available revenues, San Bernardino has not been able to fully fund its obligations and as a result the Team has offset its rental payment obligations resulting in no rental receipts for several years, include some prior to redevelopment dissolution. Therefore, no revenues are received by the Successor Agency with respect to the Baseball Park. F. History of Environmental Cott tain ination ((HSC6 34191.5(c) (1) (F)): The majority of the Baseball Park property was purchased from the Southern Pacific Railroad. Due to the Railroad's years of operations on the property,an environmental investigation was completed prior to the Agency acquiring the property. Unfortunately, Agency staff cannot located those environmental records. G. Potential for Transit Oriented Development(TM and the Advancement ofPlanttinQ Obiectivec of the Successor Axency(HSC$34191.5(c) (1) (G)): There is no potential for Transit Oriented Development (TOD), however, the Baseball Park lies within a '/-mile radius of the Downtown San Bernardino TOD Area. This TOD is centered at the 12-acre San Bernardino Intermodal Transit Center (Transit Center). The Transit Center will integrate local and regional transportation systems, including the west terminus station for the Redlands Corridor transit service, Metrolink, sbX E Street Bus Rapid Transit (BRT), and local Omnitrans buses. Bicycles and pedestrians will access the station via planned and proposed city bike and pedestrian pathways. The Transit Center will be a major regional transit hub and in the future, the Transit Center could include inter-regional transportation systems such as California High Speed Rail and transit connections to the San Bernardino International Airport. To the extent the property meets the definition of governmental use under the dissolution law,the Successor Agency desires to dispose the property by transferring the property to the City for governmental use. However,if DOF determines that the Baseball Park property does not constitute governmental use property,the Successor Agency desires to transfer the property in the following manner: Alternative 1: The Successor Agency desires to transfer the property to the City for Future Development. The City will enter into a compensation agreement with the affecting taxing entities. Alternative 2: If Alternative 1 is not approved, the Successor Agency desires to sell the property. When sold, the Successor Agency will either remit the proceeds to the County Auditor-Controller for distributions to the affecting taxing entities, or use sale proceeds to fulfill enforceable obligations. If DOF determines that the Baseball Park property does not constitute governmental use property, then the Successor Agency prefers Alternative 1 over Alternative 2. In the Alternative 1 scenario, the transfer of the Baseball Park to the City of San Bernardino for future development advances the 41 111.Property to be Transferred for Future Development Site No. 6-Baseball Stadium Park Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 .amended December 1015 Site Aro. 6: Baseball Stadium Park planning objectives of the City and the Successor Agency by creating the possibility of (i) enhancing the public recreation park use through further developing the Baseball Park site with other commercial and/or parking facilities`; (ii) continuing the operations of the Minor League Baseball team;(iii)continuing to create employment opportunities;(iv)assisting in the elimination of blight; and(v)increasing the value of adjacent properties. H. Histon,of Previous Development Proposals and Activity(HSC$34191.5(c) (1) (H)): The Baseball Park property was acquired over a ten-year period of time. The majority of the properties acquired for the Baseball Park belonged to the Southern Pacific Railroad. The other properties contained businesses that were re-located,and former structures demolished. L Disposition of Property: If DOF determines that the Baseball Park property does constitute governmental use property,then the property will be transferred to the City at no cost. However,if DOF determines that the Baseball Park property does not constitute governmental use property, then the disposition of the Baseball Park site will be governed by: i) the provisions for such included within the Compensation Agreement with the taxing entities (if held for future development); or ii) sold by the Successor Agency(if determined to be for sale). J. Implementation of the Lon-e-Range Property Management Plan: To the extent the property meets the definition of governmental use under the dissolution law,the Successor Agency desires to dispose the property by transferring the property to the City for governmental use. However,if DOF detennines that the Baseball Park property does not constitute governmental use property,the Successor Agency desires to transfer the property in the following manner: Alternative 1: The Successor Agency desires to transfer the property to the City for Future Development. The City will enter into a compensation agreement with the affecting taxing entities. Alternative 2: If Alternative 1 is not approved, the Successor Agency desires to sell the property. When sold, the Successor Agency will either remit the proceeds to the County Auditor-Controller for distributions to the affecting taxing entities, or use sale proceeds to fulfill enforceable obligations. If DOF determines that the Baseball Park property does not constitute governmental use property, then the Successor Agency prefers Alternative 1 over Alternative 2. e City of San Bernardino General Plan,November 1,2005,Appendix 10,page 49 42 111. Property to be Transferred for Fuha-e Development Site No. 6—Baseball Stadium Park Valbridge PROPERTY ADVISORS Appraisal Report San Manuel Stadium 280 S. "E"Street San Bernardino, San Bernardino County, California 92401 Report Date: March 7, 2017 FOR: Successor Agency to the City of San Bernardino Lisa Connor Project Manager 201 North 'E"Street, Suite 301 San Bernardino. CA 92401 Client Number: APN: 0136-111-23 • ' ' �' • • Valbridge File Number: • �' CA01-16-0344-000 Val bridge PROPERI Y ADVISORS 99 South Lake Avenue,Suite 21 Pasadena,CA 91101 626.744.0428 phone 626744-0922 fax valbridge.com March 7, 2017 Rob Saia, MAI 626-219-8116 rsaia@valbridge.com Lisa Connor Project Manager Successor Agency to the City of San Bernardino 201 North "E" Street, Suite 301 San Bernardino, CA 92401 RE: Fee Simple Market Value Appraisal Report 280 S. "E" Street San Bernardino, San Bernardino County, California 92401 Dear Lisa Connor: In accordance with your request, we have performed an appraisal of the above referenced property. This appraisal report sets forth the pertinent data gathered, the techniques employed, and the reasoning leading to our value opinions. This letter of transmittal is not valid if separated from the appraisal report. The subject property, as referenced above, is the San Manuel Stadium located along S. "E" Street in downtown San Bernardino and is further identified as Assessor's Parcel Number(APN) 0136-111-23- 0000. The subject is a 27.20-acre or 1,184,832-square-foot site. It is improved with the approximate 5,000-seat open-air baseball stadium. The stadium was completed in 1996 and been continuously used by Minor League Baseball's Inland Empire 66er's of San Bernardino. The City of San Bernardino and the 66ers have negotiated a new 10-year lease agreement that will only be effective if the City purchases the property. The fee simple value of the property has been valued. Since the property is appraised fee simple and there is no guarantee that the City purchases the property, our valuation does not automatically assume that this lease is in place. .r Valbridge Lisa Connor PROPERTY ADVISORS Successor Agency to the City of San Bernardino _.. Page 2 The appraisal also considers the replacement construction costs of the property, but estimates the fee simple Market Value of the real property based on the highest and best use. Based on an analysis of Minor League Baseball stadium sales developed in similar communities and within the same era as the subject, market value typically comprises substantially less than replacement or reproduction costs and oftentimes is closer to land value. We developed our analyses, opinions, and conclusions and prepared this report in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) of the Appraisal Foundation; the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute; the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA); and the requirements of our client as we understand them. The client in this assignment is the Successor Agency to the City of San Bernardino and the intended user of this report is the Successor Agency to the City of San Bernardino and no others.The intended use is for internal decision making.The value opinions reported herein are subject to the definitions, assumptions and limiting conditions,and certification contained in this report. The acceptance of this appraisal assignment and the completion of the appraisal report submitted herewith are subject to the General Assumptions and Limiting Conditions contained in the report. The findings and conclusions are further contingent upon the following extraordinary assumptions and/or hypothetical conditions which might have affected the assignment results: Extraordinary Assumptions: • None Hypothetical Conditions: • None Valbridge Lisa Connor `7 PROPERTY ADVISORS Successor Agency to the City of San Bernardino Page 3 Based on the analysis contained in the following report, our value conclusions are summarized as follows: Value Conclusions .. As Is Value Type Market Value Property Rights Appraised Fee Simple Effective Date of Value November 16, 2016 Value Conclusion $3,500,000 Respectfully submitted, Valbridge Property Advisors I Cummings Appraisal Group, Inc. Rob Saia, MAI Calvin Cummings, MAI Director Senior Managing Director California License#AG003191 California License#AG005293 License Expires 11-03-2018 License Expires 10-09-2018 Valbridge SAN MANUEL STADIUM PROPERTY ADVISORS SUMMARY OF SALIENT FACTS Summary of Salient Facts Property Identification Property Name San Manuel Stadium Property Address 280 S. E Street San Bernardino, San Bernardino County, California, 92401 Latitude & Longitude 34.097183, -117.296145 Census Tract 57.01/2 Tax Parcel Number 0136-111-23-0000 Property Owner The Successor Agency to the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic Site Zoning Central City South-1 (CCS-1) FEMA Flood Map No. 060281-06071C8681J Flood Zone X Land Area 27.200 acres Existing Improvements Property Use Sports Arena, Open-Air Baseball Stadium Occupancy Type Professional, Minor League Class A-Advanced Gross Building Area (GBA) 50,798 sf Architecture Style: Western Fixed Seat Occupancy: 5,000 Total Potential Capacity. 8,000 Year Opened 1996 Condition Average with Deferred Maintenance Primary Tenant/Occupant. Inland Empire 66er's of San Bernardino Construction Quality Average Surface Parking 1,500 spaces Valuation Opinions Highest&Best Use -As Vacant To Hold For Commercial, Mixed-Use Development Highest&Best Use -As Improved To remove/retain existing improvements depending on conditions Reasonable Exposure Time 9 to 12 months Reasonable Marketing Time 9 to 12 months ©2016 VALBRIDGE PROPERTY ADVISORS I Cummings Appraisal Group,Inc. Page ii Valbridge SAN MANUEL STADIUM PROPERTY ADVISORS SUMMARY OF SALIENT FACTS Value Indications iApproach to Value As Is Land Only-Sales Comparison $3,500,000 Cost Not Applicable Sales Comparison $3,500,000 Income Capitalization Direct Capitalization Not Applicable Value Conclusions Component Value Type Market Value Property Rights Appraised Fee Simple Effective Date of Value November 16, 2016 Value Conclusion $3,500,000 Our findings and conclusions are further contingent upon the following extraordinary assumptions and/or hypothetical conditions which might have affected the assignment results: Extraordinary Assumptions: • None Hypothetical Conditions: • None 0 2016 VALBRIDGE PROPERTY ADVISORS I Cummings Appraisal Group,Inc. Page III VaIbridge SAN MANUEL STADIUM PROPERTY ADVISORS AERIAL AND FRONT VIEWS Aerial and Front Views AERIAL VIEW is i•1 � FRONT VIEW fr' 1 ry � 0 2016 VALBRIDGE PROPERTY ADVISORS Cummings Appraisal Group,Inc. Page iv � a > Q o 2 ZO a J Q z Q J N a�rrr Are N y to � Q' • Alatarr,.5t t,atra�� c p 9 20 !Mr# C C 2 fnm 4 _O G 2 BOJ StFrL.�Aaa O LV., C) < y M.:a^lirn N IM R",.. m� 3 s W b ... ? N r., u r • F _ F y C_ 'D r SfpNiti ars 13 �VW N t.tl Vctnc.A.e 6 ' o Q U � z d s s` :3 C 3 K a ]} Q Q x z O .0 _ V O Q > w a � L > a ~ � w � n •� O (� o 4F+ m a a V � 0 0 N Valbridge SAN MANUEL STADIUM L' PROPERTY AMSOR5 INTRODUCTION Introduction Client and Intended Users of the Appraisal The client in this assignment is the Successor Agency to the City of San Bernardino and the intended user of this report is The Successor Agency to the City of San Bernardino and no others. Intended Use of the Appraisal The intended use of this report is internal decision making. Real Estate Identification The subject property is located at 280 S. "E" Street, San Bernardino, San Bernardino County, California 92401. The subject property is further identified by Assessor Parcel Number 0136-111-23- 0000. Legal Description We were not provided with a Preliminary Title Report for purposes of this appraisal. Please see the Addenda attached for a legal description of the subject property as contained in the Quitclaim Deed (Document No.463139; recorded on December 3, 2014). Use of Real Estate as of the Effective Date of Value As of the effective date of value, the subject was a baseball stadium property. San Manuel Stadium is an open-air ballpark in downtown San Bernardino. It opened in 1996, replacing Fiscalini Field as the home park of Minor League Baseball's (MiLB) Inland Empire 66ers of San Bernardino. Use of Real Estate as Reflected in this Appraisal The subject is a sports arena, open-air baseball stadium property. Ownership of the Property According to quitclaim deed, title to the subject property is vested in The Successor Agency to the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic. History of the Property Ownership of the subject property has not changed within the required reporting period of three years. Listings/Offers/Contracts The subject is not currently listed for sale or under contract for sale. Type and Definition of Value The appraisal problem (the term "Purpose of Appraisal" has been retired from appraisal terminology) is to develop an opinion of the market value of the subject property. "Market Value," as used in this appraisal, is defined as "the most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus." Implicit in this ©2016 VALBRIDGE PROPERTY ADVISORS I Cummings Appraisal Group,Inc. Page 1 Valbridge SAN MANUEL STADIUM PROPERTY ADVISORS INTRODUCTION definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: • Buyer and seller are typically motivated. • Both parties are well informed or well advised, each acting in what they consider their own best interests; • A reasonable time is allowed for exposure in the open market; • Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto;and • The price represents the normal consideration for the property sold unaffected by special or creative financing or sale concessions granted by anyone associated with the sole."7 The value conclusions apply to the value of the subject property under the market conditions presumed on the effective dates) of value. Please refer to the Glossary in the Addenda section for additional definitions of terms used in this report. Valuation Scenarios, Property Rights Appraised, and Effective Dates of Value Per the scope of our assignment we developed opinions of value for the subject property under the following scenarios of value: Valuation Scenario Effective Date of Value As Is Fee Simple Market Value November 16, 2016 We completed an appraisal inspection of the subject property on November 16, 2016. Date of Report The date of this report is March 7, 2017, which is the same as the date of the letter of transmittal. List of Items Not Available or Reviewed Architectural Plans • Annual Attendance Figures Assumptions and Conditions of the Appraisal The acceptance of this appraisal assignment and the completion of the appraisal report submitted herewith are subject to the General Assumptions and Limiting Conditions contained in the report. The findings and conclusions are further contingent upon the following extraordinary assumptions and/or hypothetical conditions which might have affected the assignment results: Extraordinary Assumptions • None Source:Code of Federal Regulations, Title 72, Banks and Banking,Part 722.2-Definitions 0 2016 VALBRIDGE PROPERTY ADVISORS I Cummings Appraisal Group,Inc. Page 2 Valbridge SAN MANUEL STADIUM PROPERTY ADVISORS INTRODUCTION Hypothetical Conditions • None 0 2016 VALBRIDGE PROPERTY ADVISORS Cummings Appraisal Group,Inc. Page 3 Valbridge SAN MANUEL STADIUM SITE DESCRIPTION PROPERTY ADVISORS Site Description The characteristics of the site are summarized as follows: Site Characteristics Location: Downtown Area Gross Land Area: 27.20 Acres or 1,184,832 SF Usable Land Area: 27.20 Acres or 1,184,832 SF Usable Land %: 100.0% Shape: Irregular Average Depth: 1,300.00 feet Topography: Level Drainage: It is assumed to be adequate Grade: At street grade Utilities: Assumed typical and adequate Off-Site Improvements: Typical, including sidewalks,street lights, and curb cuts. Interior or Corner: Interior Signalized Intersection: Yes:Traffic signal at the site that enhances access Street Frontage/Access Frontage . . Street Name: S. E Street S.G Street Street Type: Commercial Commercial Frontage (Linear Ft.): 640.00 700.00 Number of Curb Cuts: 1 2 Traffic Count(Cars/Day): 12,022 N/A(moderate flow) Additional Access Alley Access: Yes Flood Zone Data Flood Map Panel/Number: 060281-06071C8681J Flood Map Date: 09-02-2016 Flood Zone: X The subject property is out of the special flood hazard area. Site Area in Flood: 0.00% Other Site Conditions Soil Type: We were not provided with a soils report to review. This appraisal assumes the soils are adequate and have sufficient load-bearing capacity to support the highest and best use of the ©2016 VALBRIDGE PROPERTY ADVISORS I Cummings Appraisal Group,Inc. Page 18 k1% Valbridge SAN MANUEL STADIUM PROPERTY ADVISORS SITE DESCRIPTION subject site. Environmental Issues: We were not provided with a Phase I environmental site assessment. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that would render it more or less valuable. No responsibility is assumed for such conditions or for obtaining engineering studies that may be required to discover such factors. Easements/Encroachments: We were not provided with a Preliminary Title Report or a Survey (map) of the subject site. A premise of this appraisal is that no adverse title conditions exist that would affect the marketability of this property for its existing use. The client and intended users are advised to review a current Preliminary Title Report and/or Survey to determine detrimental easements or encroachments, if any. Earthquake Zone: Based on an earthquake fault zone map detailing known earthquake fault zones, the subject is not located within an Alquist-Priolo Earthquake Fault Zone. Adjacent Land Uses North: Vacant Land, Commercial South: Vacant Land, Commercial East: Commercial (automotive) West: Vacant Land, Commercial Site Ratings Access: Average Visibility: Average Zoning Designation Zoning Jurisdiction: City of San Bernardino Zoning Classification: CCS-1, Central City South-1 General Plan Designation: Commercial Permitted Uses: Retail, Office, Mixed-Use,Automotive Zoning Comments: Zoning is not anticipated to change over near-term future. Analysis/Comments on Site The site area of 27.2 acres is towards the higher end for similar size MLB stadiums throughout the nation.This suggests that the site may have additional future development potential. 0 2016 VALBRIDGE PROPERTY ADVISORS I Cummings Appraisal Group,Inc. Page 19 AAML i,.,, Val bridge SAN MANUEL STADIUM PROPERTY ADVISORS HIGHEST AND BEST USE Highest and Best Use The Highest and Best Use of a property is the use that is legally permissible, physically possible, and financially feasible which results in the highest value. An opinion of the highest and best use results from consideration of the criteria noted above under the market conditions or likely conditions as of the effective date of value. Determination of highest and best use results from the judgment and analytical skills of the appraiser. It represents an opinion, not a fact. In appraisal practice,the concept of highest and best use represents the premise upon which value is based. Analysis of Highest and Best Use As If Vacant The primary determinants of the highest and best use of the property as if vacant are the issues of (1) Legal permissibility, (2) Physical possibility, (3) Financial feasibility, and (4) Maximum productivity. Legally Permissible The subject site is zoned CCS-1, Central City South-1 which controls the general nature of permissible uses but is appropriate for the location and physical elements of the subject property, providing for a consistency of use with the general downtown neighborhood. The location of the subject property is appropriate for the uses allowed, as noted previously, and a change in zoning is unlikely over the near-term future.There are no known easements, encroachments, or covenants that would unduly limit or impede physical development. There is a proposed multi-year lease to the California League Minor League Baseball team Inland Empire 66er's of San Bernardino. Therefore, if the City purchases the property and the new lease commences, then the legal use, at minimum, will continue as a baseball stadium over the lease term or until terminated. Other legal (future) uses include retail, office and mixed-use residential, entertainment, automotive, and general commercial type development. Physically Possible The physical attributes allow for a number of potential commercial and mixed-uses. Elements such as size, shape, availability of utilities, known hazards (flood, environmental, etc.), and other potential influences are described in the Site Description and have been considered. There are no items of a physical nature that would materially limit appropriate and likely development. Financially Feasible The probable use of the site for commercial, residential or more likely mixed-use (retail, office and multifamily residential) development conforms to the future general development plan of the downtown. A review of published yield, rental and occupancy rates suggest that there is an oversupply and demand is insufficient at this time to support construction costs and ensure timely absorption of additional inventory in this market. Therefore, near-term speculative development of the subject site is not financially feasible. Maximally Productive Among the uses that may become financially feasible in the future, the use that results in the highest value (the maximally productive use) is the highest and best use. Given the current oversupply, there is no current use that is financially feasible without government subsidy. Even with governmental assistance, development feasibility of a 27.2-acre site at this location is unlikely. Considering these factors, the maximally productive use as though vacant is to hold for future commercial and/or 0 2016 VALBRIDGE PROPERTY ADVISORS I Cummings Appraisal Group,Inc. Page 36 Valbridge SAN MANUEL STADIUM PROPERTY ADVISORS HIGHEST AND BEST USE mixed-use development. As noted in this report, it will likely take 9 to 10 years or longer before demand becomes strong enough to fully develop the site. Conclusion of Highest and Best Use As If Vacant The conclusion of the highest and best use as if vacant is for future commercial or mixed-use development when conditions warrant. Analysis of Highest and Best Use as Improved In determining the highest and best use of the property as improved, the focus is on three possibilities for the property: (1) continuation of the existing use, (2) modification of the existing use, or (3) demolition and redevelopment of the land. Retaining the improvements is the most feasible option. The 20-year-old improvements are in generally good condition and have several years of remaining useful life. Alternative uses include office and retail as well as limited or special-purpose uses (e.g., religious facility). As noted later,the cost to demolish to get to a raw land state is too expensive relative to the market land value. Further, demand is currently not strong enough to warrant removing for redevelopment. In short, there is no higher and better use to warrant an expensive demolition program. Therefore, it is not feasible to redevelop the property at this time. It would make more sense to retain and modify the improvements to alternative uses if there were no primary baseball tenant. If there is a lease,then the highest and best use is to continue with a minor league baseball stadium as the primary use. The total annual economic impact to the community, which would include additional sales tax revenue from hotel rooms and local restaurants from baseball operations as well as profit-sharing from other events, may exceed operating costs.This would involve the extraordinary assumption that the City purchases the property, which is not the case in this appraisal. However, there is still the possibility of this occurring as of the valuation date. If the City does not purchase the property, then the improvements may become obsolete as a baseball stadium as there may be no lease agreement. Finding another MiLB team as a primary tenant is unlikely. Assuming this were the scenario, a buyer would be faced with the decision to remove the stadium in order to save operating costs or modify the improvements for alternative use (or a combination of the two). As explained in the Land Valuation section of the appraisal, the best course of action is to retain the improvements and make adjustments to the value for either retrofit cost or the cost to carry the property until redevelopment becomes feasible. Both options are more feasible than completely removing the improvements and bringing the site to a raw land state. Conclusion of Highest and Best Use As Improved The most probable highest and best use of the subject property, as improved, depends on whether the property continues to be leased by the 66ers. If not, then the highest and best use is to retain the improvements as an alternative use until market conditions warrant redevelopment. ®2016 VALBRIDGE PROPERTY ADVISORS I Cummings Appraisal Group,Inc. Page 37 Valbridge SAN MANUEL STADIUM PROPERTY ADVISORS HIGHEST AND BEST USE Excess/Surplus Land The improved subject property has a land-to-building ratio that is larger than generally associated with similar stadium properties. We considered whether the additional land area is excess and allows for separate development, or if it is simply surplus land that provides some additional utility for expansion, storage, parking, etc. In the first case, 'excess' land may be legally separated from the parent tract and has a distinctly separate HBU while in the second; the land is not separable from the larger tract. Our analysis has established that the differential is representative of surplus land, which cannot be developed separately at this time. The impact of this surplus land is relatively minor, and is considered in the applicable approaches, but it is not valued separately. Most Probable Buyers As of the date of value, the most probable buyers of the subject property are local governments, educational institutions or investor/developers. The Inland Empire 66ers may also be a potential buyer, but the cost may be too high based on the proposed subsidized lease arrangement. 0 2016 VALBRIDGE PROPERTY ADVISORS I Cummings Appraisal Group,Inc. Page 38 Valbridge SAN MANUEL STADIUM PROPERTY ADVISORS LAND VALUATION Land Valuation The site is an important aspect of the overall property valuation for two reasons: 1) it helps determine the highest and best use of the property as improved;2) it is not unusual for 20-year-old MLB stadiums to sell close (or at)their land value. Methodology Site Value is most often estimated using the sales comparison approach. This approach develops an indication of market value by analyzing closed sales, listings, or pending sales of properties similar to the subject, focusing on the difference between the subject and the comparables using all appropriate elements of comparison. This approach is based on the principles of supply and demand, balance, externalities, and substitution, or the premise that a buyer would pay no more for a specific property than the cost of obtaining a property with the same quality, utility, and perceived benefits of ownership. Unit of Comparison The unit of comparison depends on land use economics and how buyers and sellers use the property. The unit of comparison in this analysis is per usable sq. ft. The subject is land is appraised in fee simple as vacant. Since the sales were all vacant without any building improvements, in order to compare "apples with apples" it was necessary to adjust the subject for removal/demolition of existing improvements in order to arrive at the true fee simple market value of the land. Elements of Comparison Elements of comparison are the characteristics or attributes of properties and transactions that cause the prices of real estate to vary.The primary elements of comparison considered in sales comparison analysis are as follows: (1) property rights conveyed, (2) financing terms, (3) conditions of sale, (4) expenditures made immediately after purchase, (S) market conditions, (6) location, and (7) physical characteristics. Comparable Sales Data To obtain and verify comparable sales of vacant land properties, we conducted a search of public records, field surveys, interviews with knowledgeable real estate professionals in the area, and a review of our internal database. We included six vacant land comparables in our analysis, as these were judged to be the most comparable to develop an indication of fee simple market value for the subject land. The following is a table summarizing each sale comparable and a map illustrating the location of each in relation to the subject. Details of each comparable follow the location map. 0 2016 VALBRIDGE PROPERTY ADVISORS I Cummings Appraisal Group,Inc. Page 39 7; o o Q 0, � : < o w > 3 Z @) o p o` a p c w o a` dS a A Z Z dS p v E > v _ a O ¢ v o o o Q o V c 'u d A v `5 � > ut @ A .a in A '0. ry ry ra Z l.7 C lO w 0 > C � to Cl y U > N N J > N 'O O N co to -O (v O 0 p N W cn w O W V I u cr Q — > c A c O n U a, N @) 7 a a! C l0 A 0 > A 2 pp VO a N cu A � Q O N C A A C M O O V y H V d .0 O O 7 9 > A E c _o � o o E W rn > a V E m A m w m F- W a U H .� u > O1 a c U o n w x 'D ti ,�, w < A 3 A "> a Q c U21 aj co C J A �n — C! _ C) Ol O C C `p O N er O Q N C' E > M N 'V' \ U U m '� tD ch O 4A A y U T VI L!1 J M 'A d W l.1 M N C Cd d N' N Q N O In p 4'1 X LL N Q A V p C c w a rn M N C � p J d — N N _ a co N A O ON O O L AV O O 575 - > M c O lA \ co O n d _E n n > A Q O w `w ._ ,n 0i m x to A a v .� O V m w ami — Q m j LL to _m O m > LL < O O A n y C O Ln o v v n 1O n ° w n rn c m rn n p rn .E c a N c ri o o a E ¢ .� o o > a R m .� to J M C Z n Z C tD to J > Of m c U vNs A c tv — < A LL A N M m Q p lJ > C C Q O N ? N d C C O p O E c °� v op ? m d A ° w Q e Y, c o N ¢\ to v E i°, ¢ E a .gip rn m j m ¢ o er V m 'a M Z nM'1 M " m Z A L] Q � C W N p U m c E ami c rn y p! A O Ln .c _N y V v A U W C CD0 E y d A O y n n J d > 0 V1 m y M C N N — < A N p J ` o Z < O aC tN Q Q H W � E ti O a, 'A Q a A v w rn — .: N m K c a C w C O N '� 0 a a w c c a c 'a g ^ o a 'a cc o p L m y x �^ .� A A p c Q A O a A O > c to to O to a` U l7 a iL v a 7 LD Ln Q N z 0 O Z Z < < 0 7� L) 14 N Wale,oan AYe I It-,e. A WaiNman A, S kA­l-A�l 42 >* r: 'eV S Way S­a W.v E to m A,om_3d A'. S Atl­ll­d A- (13 13 uj UA rh CK51 %1 J 0 kA L4 tA S Mt Ve,,,ui Are IK N kit Ve,non Ave S G,ap,St L) rh el i 7 N;4.St lz _T, Is 0 -IV(14�vetj N -Fo an N 13 z 0 cr J',,1-A, 0 o l7 o cr > ma 0 C C14 Valbridge SAN MANUEL STADIUM PROPERTY ADVISORS LAND VALUATION Land Sales Comparison Analysis When necessary, adjustments were made for differences in various elements of comparison, including property rights conveyed, financing terms, conditions of sale, expenditures made immediately after purchase, market conditions, location, and other physical characteristics. If the element in comparison is considered superior to that of the subject, we applied a negative adjustment. Conversely, a positive adjustment was applied if inferior. A summary of the elements of comparison follows. Transaction Adjustments Transaction adjustments include 1) real property rights conveyed, 2) financing terms, 3) conditions of sale, and 4) expenditures made immediately after purchase. These items, which are applied prior to the market conditions and property adjustments, are discussed as follows: Real Property Rights Conveyed Real property rights conveyed influence sale prices and must be considered when analyzing a sale comparable. The subject is valued fee simple. All of the sale comparables are also fee simple interests, indicating no adjustments. Financing Terms The transaction price of one property may differ from that of an identical property due to different financial arrangements. Sales involving financing terms that are not at or near market terms require adjustments for cash equivalency to reflect typical market terms. A cash equivalency procedure discounts the atypical mortgage terms to provide an indication of value at cash equivalent terms. The entire sale comparables involved typical market terms by which the sellers received cash or its equivalent and the buyers paid cash or tendered typical down payments and obtained conventional financing at market terms for the balance.Therefore, no adjustments for this category were required. Conditions of Sale When the conditions of sale are atypical, the result may be a price that is higher or lower than that of a normal transaction. Adjustments for conditions of sale usually reflect the motivations of either a buyer or a seller who is under duress to complete the transaction. Another more typical condition of sale involves the downward adjustment required to a comparable property's for-sale listing price, which usually reflects the upper limit of value. The sale comparables do not indicate any condition of sale adjustments other than a downward adjustment for Sale 2, an active listing. We made our best estimate as to what Sale 2 may sell for based on sales of other property in the area. Expenditures Made Immediately After Purchase A knowledgeable buyer considers expenditures required upon purchase of a property, as these costs affect the price the buyer agrees to pay. Such expenditures may include: costs to demolish and remove any portion of the improvements, costs to petition for a zoning change, and/or costs to remediate environmental contamination. The relevant figure is not the actual cost incurred, but the cost anticipated by both the buyer and seller. Unless the sales involved expenditures anticipated upon the purchase date, no adjustments to the comparable sales are required for this element of comparison. ©2016 VALBRIDGE PROPERTY ADVISORS I Cummings Appraisal Group,Inc. Page 54 Valbridge SAN MANUEL STADIUM PROPERTY ADVISORS LAND VALUATION Market Conditions Adjustment Market conditions change over time because of inflation, deflation, fluctuations in supply and demand, or other factors. Changing market conditions may create a need for adjustment to comparable sale transactions completed during periods of dissimilar market conditions. Other than Sale 4, the sale comparables represent relatively recent sale transactions and current listings near the date of value with no market conditions adjustments necessary. Given the negative events that have transpired since December 2015, the most recent sales are emphasized. Sale 4, which closed in November 2015, indicates the highest sale price at $9.00 per square foot. A 5% downward adjustment was warranted. Property Adjustments Property adjustments are usually expressed quantitatively as percentages or dollar amounts that reflect the differences in value attributable to the various characteristics of the property. In some instances, however, qualitative adjustments are used. These adjustments are based on locational and physical characteristics and are applied after transaction and market conditions adjustments. Our reasoning for the property adjustments made to each sale comparable follows. The discussion analyzes each adjustment category deemed applicable to the subject property. Location Location adjustments may be required when the locational characteristics of a comparable are different from those of the subject. These characteristics can include general neighborhood characteristics, freeway accessibility, street exposure, and corner- versus interior-lot location, neighboring properties,view amenities, and other factors. The subject site is located along S. E Street with average access and average visibility.Other than Sale 6, which is in Colton, and Sale 5 (located in a superior neighborhood in San Bernardino) no adjustments were warranted. Small downward adjustments were made to Sales 5 and 6, both locations perceived as somewhat superior. Size The size adjustment addresses variance in the physical size of the comparables and that of the subject, as a larger parcel typically commands a lower price per unit than a smaller parcel. This inverse relationship is due, in part,to the principle of"economies of scale." The subject site consists of 27.20 acres of useable land. The only recent comparable in this area that is close to the subject in size is Sale 6 (21.24 acres). The other comparables are less than half the size and required large downward adjustments. Larger parcels in this area require large adjustments since they take more years to fully develop than smaller ones. Based on our best estimate, the sales require large downward adjustments of 40% to 45% for Sales 1, 2, 3, 4 and 5, depending on the size differential. Only a small 5% downward adjustment was applied to Sale 6, as this Sale is relatively similar in size to the subject. Shape/Depth The subject site consists of an irregular-shaped tract considered similar enough to the land sales to not warrant any adjustment for this category. ©2016 VALBRIDGE PROPERTY ADVISORS I Cummings Appraisal Group,Inc. Page 55 i Valbridge SAN MANUEL STADIUM PROPERTY ADVISORS LAND VALUATION Utilities The subject property does have utilities in place and are available on the date of value. Utilities are also available to the comparable sales, therefore no adjustments were applied. Topography The subject has a level topography. The comparable sales are similar enough not to warrant adjustment. Zoning The highest and best use of sale comparables should be very similar to that of the subject property. When comparables with the same zoning as the subject are lacking or scarce, parcels with slightly different zoning, but a highest and best use similar to that of the subject may be used as comparables. These comparables may require an adjustment for differences in utility if the market supports such adjustment. The subject site is zoned Central City South-1. The comparables are similar enough not to warrant adjustment. Sales 3 and 4 are industrial and the highest and best use may be to develop with warehouse or light manufacturing. We could not determine whether an adjustment would apply in the case of industrial even though this market segment is the strongest (or one of the strongest) in the region. In any case, less emphasis was given to Sales 3 and 4. Summary of Adjustments Presented on the following page is a summary of the adjustments made to the sale comparables. As noted earlier, these quantitative adjustments were based on our market research, best judgment, and experience in the appraisal of similar properties. ©2016 VALBRIDGE PROPERTY ADVISORS I Cummings Appraisal Group,Inc. Page 56 Valbridge SAN MANUEL STADIUM PROPERTY ADVISORS LAND VALUATION LAND SALES ADJUSTMENT GRID Land Sales Adjustment Grid Subject Sale�2 Sale-3 Sale#4 Sale-5 Sale-6 Sale ID 4390 4397 4398 4399 4400 4401 Date of Value&Sale November 16,2016 N/A Listing July-16 November-15 July-16 August-16 Unadjusted Sale Price $3,336,000 $2,375,762 $5,198,000 S2,054,289 $3,3911,000 54,630,000 Usable Acres 27.200 11.970 6.060 13.700 5.240 11.900 21.240 Unadjusted Sale Price per Usable Sq.ft. $6.40 $9.00 $8.71 $9.00 $6.54 $5.00 Transactional Adjustments Property Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fre Su,;ple Adjustment Adjusted Sale Price 5640 S900 $871 5900 $6.54 55_00 financing Terms Cash to Seller NIA N/A Co,h Cash Cosh Co h Adjustment Adjusted Sale Pr Ke $6.40 $900 $8.71 $900 5654 5500 Conditions of Sale Typical Pending Listing Typical Typ¢ol Assembinge Typi<al Adjustment -30.D% Adjusted Sale Price $6.40 $6.30 $8.71 $900 5654 $500 Expenditures after Sale Adjustment Adjusted Sale Price $6.40 $6.30 $8.71 $9.00 56.54 $5.00 Market Conditions Adjustments Elapsed Time from Date of Value 000 years 000 years 0.34 years 7.02 years 0.34 years 027 years Market Trend Through November 10,2016 -5096 Adjusted Sale Price $6.40 $6.30 $8.71 $8.55 $6.54 $5.00 Physical Adjustments Location 280 J E Street 237 S Waterman 325 S G St 11 I E Mill St 270 E Central Ave Waterman Ave(.) Meridian Ave(<P W C Ave Dumas Son Bernardino,Callorr. Son Bernardino, Son Bernardino, Son Bernardino, San Bernardino, San Bernardino, Colton,Coli/ornia CoNomia Cafdornio Calilo'is ColQmnio CoFfornio Adjustment - - - - -5.0% -10.0% Size 7,184,832 sl 527,413 sl 263,974 sl 596,772 sl 228,254 sl 518.367 s( 925,214 sl Adjustment -40.0% -45.0% -40.0% -45.0% -40.0% -5.0% Shape/Depth kregulor 7rregalor(Similar) krgulor(Simikiry kregular(Similar) Rectangular(Similar) Rectnngnlnn(SkndarU bregulor(similar) Adjustment - - - - - Utilities Available Available Avnikible Available Available Available Available Adjustment - - - Topography Level Level 1-1 Level Level Level Level Adjustment - - - - Zoning CCS-1 UIP CCS 7 L I PCR Mixed Use Adjustment - - - - - - NetPhysicalAdjustment -40.0% -45.0% -40.0% -45.0% -45.0% -15.0% Adjusted Sale Price per Usable Sq.Et. $3.64 $3.46 $5.23 $4.70 $3.60 $4.2S 0 2016 VALBRIDGE PROPERTY ADVISORS Cummings Appraisal Group,Inc. Page 57 ?T9 Valbridge SAN MANUEL STADIUM PROPERTY ADVISORS COST APPROACH Conclusion From the market data available, we used six land comparables that included four closed, one pending and one active listing in competitive market areas (including Downtown San Bernardino) which were adjusted based on pertinent elements of comparison. The following table summarizes the unadjusted and adjusted unit prices: Land Sale Statistics Metric Unadjusted Adjusted Minimum Sale Price per Usable Sq. Ft. $5.00 $3.46 Maximum Sale Price per Usable Sq. Ft. $9.00 $5.23 Median Sale Price per Usable Sq. Ft. $7.63 $4.05 Mean Sale Price per Usable Sq. Ft. $7.44 $4.18 The median indicator of the six comparables is $4.05 per square foot and the mean is $4.18 per square foot. The most comparable in terms of size is Sale#6. This sale is the closest in terms of size and is also the most recent closed transaction, but it was not located in the City of San Bernardino and a location adjustment was necessary. Sale 2 with an adjusted price of $3.46 per square foot is a good sale, as it has the same zoning and location as the subject. Sales 1 and 2 are in or near the downtown area of San Bernardino. Sales 3 and 4 are located at the fringe of the downtown area within industrial areas. Therefore, less weight was given to Sales 3 and 4,with adjusted prices of$5.23 and $4.70 per square foot. Based on the adjusted median and average prices and the most comparable sales, a unit value for the as-is subject land is near the lower-middle of the adjusted range, or $3.75 per square foot. This indicates a preliminary market value of $4,443,120, rounded to $4,440,000. This is the value of the land prior to any additional adjustment for the stadium improvements. Holding Cost Adjustment for Site Improvements The land sale comparables were vacant unimproved land. In cases where the improvements are no longer economic viable based on their original use and they cannot be converted to alternative use(s), the cost to demolish or remove should be considered if there is an immediate higher and better use. If not, then the cost to carry until redevelopment is warranted or the retrofit cost to modify or convert to another use should be measured. Typically, demolition occurs when the improvements are old and in poor condition and there is a higher and better use. This commonly occurs in areas where economic conditions are strong and land prices are rising.This is not the case with the subject.Therefore, it is necessary to adjust for cost to carry until redevelopment is financially feasible or the cost to modify or convert to another use. As explained in the paragraphs below, the subject's 20-year-old improvements have alternative potential use(s) and removing all of the improvements would require several assumptions in order to be consistent with the definition of market value. The cost to completely remove the stadium and related site improvements has been estimated by TKE Engineering, Incorporated (copy in Addenda) at $4,400,000. If this demolition cost total was used, then the following assumptions would be 0 2016 VALBRIDGE PROPERTY ADVISORS I Cummings Appraisal Group,Inc. Page 58 Valbridge SAN MANUEL STADIUM PROPERTY ADVISORS COST APPROACH required to meet the definition of market value ("most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus"). • Assumption that there is a higher and better use for this property at this time, and that there is an immediate need to redevelop the site (when, in fact, there is not enough demand and redevelopment is years away). • Assumption that the property is so specialized that it cannot be used for anything else other than just a MiLB stadium. Further, it assumes that the stadium has a negative value with no interim value or a contributory value or cannot be used for other purposes (e.g., college baseball, lacrosse, flea market, soccer, concerts, public gathering, office space, social gatherings,etc.). • Assumption that a seller of this property would value their property by demolishing everything on the site, including trees, curbs, gutters, utilities, lighting, pavement, fire hydrants, office space, etc. Some of these improvements (e.g., underground utilities, trees, paving,and fire hydrants)add contributory value instead of detract. • Assumption that there is no offset from salvage by from removing the improvements. • Assumption that cost and market value are synonymous, when in fact, they are often different. The TKE Engineering, Incorporated estimate is a preliminary budget that deducts the total cost to remove the stadium and all associated site improvements that bring the property to a raw land state. If this estimate was used as an adjustment, then the land value would adjust to only $40,000 ($4,440,000 - $4,400,000). At this low price, there would be plenty of buyers, but a seller would recognize that this price is unrealistically low for a 27.20-acre parcel. In other words, the cost to demolish everything on the site is simply too expensive and is not an accurate method to determine a reasonable market value for the land. If demolition were to be used as an offsetting market-based adjustment, then a more representative method would be to deduct only costs applicable to the stadium improvements rather than every improvement on the entire property. Typically, we have found that buyers are using demolition costs of approximately $9.00 to $10.00 per square foot of building area. This estimate is substantiated by the Marshall Valuation Service, a professional cost source published and updated regularly by Marshall & Swift publication company, that is used by real estate professionals. However, on a per square foot basis, the subject cost would be significantly more since there are stadium and field improvements that are not part of building area (e.g., stadium seating, signage and lighting). At double this cost or approximately $19.00/sf, for example, the building structures would have a demolition cost adjustment of $965,162 (50,798 sf x $19/sf), rounded to the nearest $50,000 or $950,000. Obviously this projection is well below the TKE preliminary budget, but it does not include estimates for everything required to bring the site to a raw land state. As noted earlier in the City and Neighborhood Analysis, the City has experienced events that have hurt its reputation. Major occupants have departed the City, and the December 2015 terrorist attack resulted in casualties stigmatizing the area. It will take years for a turnaround, especially for large ©2016 VALBRIDGE PROPERTY ADVISORS I Cummings Appraisal Group,Inc. Page 59 t .tj Val bridge SAN MANUEL STADIUM PROPERTY ADVISORS COST APPROACH sites where there is currently insufficient private demand. As a result, it will likely take nine to ten years (or more) before redevelopment may become feasible. Given this lengthy time frame, the current lack of demand to make redevelopment feasible, and the high cost to bring the site back to a raw land state, it would not be productive to remove the subject improvements. If the stadium were no longer tenanted by professional minor league baseball, it could become obsolete as a MiLB stadium, but there are alternative uses since the improvements are only 20 years old and in generally good condition. The subject improvements have years of useful physical life although remaining economic life could be less. The property characteristics include office, retail, and warehouse space as well as paved parking, all of which provide for alternative uses. Modification of the existing improvements would cost at least $10 to $20 per square foot, depending on the use and the user. In comparison, retaining the improvements over a typical holding and redevelopment period of 9 to 10 years would result in a similar cost to carry. In either case, whether it be an owner-user or developer, a buyer would adjust the price. In terms of a developer purchasing the property, an alternative interim use would require an offset in price based on the cost to carry the improvements until market conditions warrant redevelopment. Although it could be shorter or longer,a reasonable redevelopment time frame estimate is close to a decade, say 9 to 10 years. Arguments can be made that it may take longer and if that is the case, then the improvements would have a longer interim use but would still provide value as compared to the cost of demolition. The annual cost to maintain the property is estimated annually within a range of $150,000 to $200,000. This estimate is based on private ownership and includes property taxes, insurance, offsite management, utilities, maintenance and repair, and reserves for building replacement. The estimate will vary based on the use. This is particularly true with utilities. As such, expenses may vary. Our estimate of individual categories is rounded to the nearest$1,000, as follows: Real Estate Taxes (based on MV x 1.277%) $45,000 Insurance (50,798 sf bldg.x $0.50/sf) $25,000 Management(based on flat monthly rate of$1,500) $18,000 Utilities (based on flat rate of$2,500/month) $30,000 Maintenance, Repair and Reserves (50,798 x$1.00) $S1,000 Total $169,000 Rounded (to nearest$10,000) $170,000 To determine a true cost to carry, expenses are offset by potential interim revenue. This is difficult to project, as revenue will depend on use. As such, there is no one good way of estimating this offset but any estimate should be conservative given the unique qualities of the property.To help us gauge this, the average retail and office rental rates in San Bernardino has been considered. The average asking retail rent is currently $1.08 per square foot per month "triple-net." This equates to approximately $1.50 per square foot month on a full-service basis. In comparison, the average office rent is $1.49 per square foot per month full-service.The subject has more office space than retail and it is difficult to conclude the income based on these average statistics since it is not typical or traditional space. We have estimated the amount of office and retail space within the complex 0 2016 VALBRIDGE PROPERTY ADVISORS I Cummings Appraisal Group,Inc. Page 60 O,, Valbridge SAN MANUEL STADIUM PROPERTY ADVISORS COST APPROACH between 4,500 and 5,000 square feet. There are other potentially rentable areas within the complex, but we have been conservative in our estimate since a potential buyer would do the same. We have concluded that the rentable portion of the improvements could offset cost by approximately $70,000 per year based on as-is condition.This translates to approximately $5,800 per month (on average) or approximately $1.23/sf over the mid-point square footage of 4,750 square feet. This rate is somewhat lower than the average as it considers periodic vacancy and the type of space. This could be more or less, but on an average year-to-year basis we believe it to be reasonable. Again, there may be other rentable area (including parking lot storage) within the property but we believe that revenue offset should be on the conservative side. Alternatively, the property could also be rented on a special-use basis and we believe this to be similar to the same offset if the office and retail portions were leased on an annual basis (on average) over the 9 to 10 year holding period. Deducting $70,000 from the annual cost of $170,000, results in an average as-is annual offset of $100,000. A redevelopment timeframe is estimated at 9 to 10 years, say 9.5 years as a midpoint. These results in a total straight-line offset of$950,000 ($100,000 x 9.5). We have not made a present value discount since buyers would be unlikely to apply one. This translates to approximately $18.70/sf, which is very similar to our"demolition adjustment"estimate and within the typical retrofit range of$10 to $20 per square foot. Overall, it is our opinion that $950,000 is reasonable for the last adjustment to arrive at land value. Therefore,the final adjusted fee simple land value estimate is $3,500,000, as summarized below. Land Value Indication Reasonable Adjusted Comparable Range 1,184,832 square feet x $3.46 psf = $4,099,519 1,184,832 square feet x $4.25 psf = $5,035,536 Market Value Opinion (Rounded) 1,184,832 square feet x $3.75 psf = $4,443,120 Less:Adjustment for Demo/Removal -950,000 Fee Simple Market Value Land (rd) $3,500,000 ®2016 VALBRIDGE PROPERTY ADVISORS I Cummings Appraisal Group,Inc. Page 61 r ( T K E E N G I N C E R I N G I N C December 2, 2016 Lisa Connor, Project Manager Successor Agency to the Redevelopment Agency of the City of San Bernardino 201 North E Street, Suite 301 San Bernardino, CA 92401 Subject: San Manuel Baseball Stadium Demolition Budget Dear Ms. Connor, TKE Engineering, Inc. appreciates the opportunity to provide professional engineering services for the subject project. At the request of the City of San Bernardino's Successor Agency (City), TKE prepared a preliminary demolition budget for the City's San Manuel Baseball Stadium. TKE estimates the demolition budget at $4.40 million based on TKE's site inspection, review of provided public data, and knowledge of the marketplace with respect to unit prices, inclusive of the costs for prevailing wages. An itemized accounting of the budget is enclosed. If you have any questions or require additional information, please advise. Sincerely, n z� Michael P. Thornton, P.E., P.L.S., M.S. President Enclosure: Preliminary Demolition Budget cc.Steven Dukett, Managing Principal, Urban Futures 2 3 0 5 Chicago Avenue • R i v e r s i d e , C a l i f o r n i a 9 2 5 0 ( 9 5 1 ) 6 8 o - 0 4 4 0 • Fax ( 9 5 1 ) 68o - 0490 www. tkeensineerinQ . com City of San Bernardino Minor League Baseball Stadium Preliminary Demolition Budget Prepared on December 2,2016 DESCRIPTION QUANTITY UNIT U/PRICE PRICE General E Preparation,implementation and Maintenance compliance with NPDES general permit,includign SWPPP and installation of BMP's 1 LS $ 30,000 $ 30,000 Preparation/Implementation Traffic Control Plan 1 LS $ 20,000 $ 20,000 Mobilization/Demobilization 1 LS $ 200,000 $ 200,000 Protect in place overhead utilities within"E"and"G"Streets ROW 1 LS $ 20,000 $ 20,000 Subtotal: $ 270,000 Demolition of Structures Demolish Building(Wood frame) 675,000 CF $ 0.40 $ 270,000 Demolish Roofing 28,355 SF $ 0.80 $ 22,684 Demolish Seating 145,000 CF $ 0.50 $ 72,500 Remove Misc.Utilities 1 LS $ 50,000 $ 50,000 Landscaping(Clear&Grub including irrigation) 5 Ac $ 4,500 $ 20,250 Subtotal: $ 435,434 Parking Lot Remove Existing Asphalt 590,000 Sr $ 0.9D $ 531,000 Remove curb only 4,010 LF $ 4.50 $ 18,045 Remove curb and gutter 5,720 LF $ 6.60 $ 37,752 Remove Concrete V-gutter or spandrel 4,050 SF $ 4.40 $ 17,820 Remove Concrete Sidewalk 73,635 SF $ 2.75 $ 202,496 Remove Trees(less than 12"diameter) 150 EA $ 400 $ 60,000 Remove Trees(12"to 24"diameter) 76 EA $ 500 $ 38,000 Remove Trees(over 24"diameter) 20 EA $ 660 $ 13,200 Landscaping(Clear&Grub including irrigation) 2 Ac $ 5,000 $ 10,000 Remove Parking Lot Signs 1 LS $ 10,000 $ 10,000 Remove Large Stadium Signage 1 LS $ 25,000 $ 25,000 Subtotal: $ 963,313 Onsite Utilities and Misc. Remove Parking Lot Lighting 35 EA $ 1,500 $ 52,500 Remove Field Lighting 6 EA $ 10,000 $ 60,000 Remove Transformers 2 EA $ 25,000 $ 50,000 Remove Electrical Conduit 1 I LS $ 250,000 $ 250,000 Remove Gas Line 725 LF $ 9 $ 6,525 Remove Sewer(8"diameter) 725 LF $ 18 $ 13,050 Remove Water(8"diameter) 2,900 LF $ 11 $ 32,625 Remove Fire Hydrants 5 EA $ 450 $ 2,250 Remove Check Valves 2 EA $ 450 $ 900 Remove FDC 1 EA $ 230 $ 230 Remove PIV 1 EA $ 230 $ 230 Remove Storm Drain 1 LS $ 25,000 $ 25,000 Remove Manholes(SS and SD) 4 EA $ 600 $ 2,400 Remove Fencing 1 LS $ 20,000 $ 20,000 Remove Miscellaneous Appurtenances 1 LS $ 50,000 $ 50,000 Embankment 50,000 CY $ 8 $ 400,000 Subtotal: $ 965,710 Environmental Remediation Misc Environmental Remediation 1 LS $ 200,000 $ 200,000 Subtotal: $ 200,000 Site Preparation Grading and Compaction 1 L5 $ 100,000 s 100,000 Subtotal: $ 100,000 Construction Subtotal: $ 2,934,457 Constrution Contingency(@20%): $ 586,891 Construction Total: $ 3,521,349 Engineering,Administrative,Legal and Inspection(@25%): $ 880,337 Project Total:1$ 4,401,686 Rounded Project Total:1$ 4,400,000 Notes: 1.The above demolition project assumes the City will bid and award a contract for desired work and that the project will be subject to prevailing wage requirements. 2.The above demolition budget assumes all improvements on site will be removed and any necessary site remediation work will be performed including,but not limited to,environmental remediation and soil compaction.Site remediation must return the site to a condition enabling property to be readily market-supportable for private development,similar to vacant sites in the same vicinity. 3.The Preliminary Demolition Budget was developed based on TKE's inspection of the property and knowledge of the marketplace with respect to unit prices,inclusive of the cost for prevailing wages. 4.TKE believes the preliminary demolition budget is reasonably sufficient for planning purposes at this time. S.An engineer's development estimate will require review of detailed plans and prevailing market costs for materials and labor of the desired project. 17HERING TKE ENGINEERING , I N C . March 15, 2017 Ms. Lisa Connor Project Manager San Bernardino Successor Agency 201 N. "E"Street, Ste. 301 San Bernardino,CA 92401 Subject: Supplement Report Regarding TKE's December 2, 2016 Engineering Study Dear Ms. Connor, At your request, we have reviewed that portion of the March 7, 2017 appraisal prepared by Valbridge Property Advisors concerning their estimated demolition costs for improvements located at 280 S. "E" Street("Site"), as particularly described in the conclusion section of the appraisal on pages 58 through 61. As you know. TKE has experience with demolition projects within the Inland Empire and is particularly knowledgeable with respect to what is required by developers and local government entities regarding demolition projects. in that regard, we previously prepared our December 2, 2016 Engineering Study regarding projected demolition costs for the Site. This letter is intended to supplement our prior report. Although Valbridge received a copy of TKE's Engineering Study, we see that Valbridge decided not to rely on our work in the appraisal. Instead, Valbridge has attempted to arrive at a net property value (i.e., vacant land value less estimated demolition costs) through an elaborate process of economic extrapolation. From our past experience with construction demolition costs, we believe that Valbridge's conclusions regarding project demolition costs are under estimated related to practical site preparation prerequisites that would be required for reusing the Site for modern alternate and highest and best uses. It appears that Valbridge's estimate was prepared without the experience of a civil engineer or demolition professional to assist them. Accordingly, TKE is unable to use any of the data presented by Valbridge with respect to projected demolition costs at the Site. Therefore, it is our opinion that TKE's December 2, 2016 Engineering Study remains valid as presented. We are hopeful that this confirming letter will be helpful to you. If you have any questions or require additional information,please advise. Sincerely. Michael P. Thornton, P.E.,P.L.S., M.S. President cc: Steve Dukett, Managing Principal, Urban Futures 2 3 0 5 C h i c a g o A v e n u e • R i v e r s i d e , Cal i f o r n i a 9 2 5 0 7 ( 9 5 1 ) 6 8 o - 0 4 4 0 F a x ( 9 5 1 ) 6 8 o - 0 4 9 0 w w w. t k e e n g i n e e r i n g . c o m PURCHASE AND SALE AGREEMENT (REAL ESTATE) THIS PURCHASE AND SALE AGREEMENT (the "Agreement") made this 201'' day of March, 2017 by and between City of San Bernardino, a municipal corporation and charter city (the "City") and the j Successor Agency to the Redevelopment Agency of the City of San Bernardino, a public body corporate and politic (the"Successor Agency"). Collectively, City and Successor Agency are referred to herein as the "Parties". WITNESSETH: WHEREAS, pursuant to Health and Safety Code (the "HSC") § 34172 (a) (1), the Redevelopment Agency of the City of San Bernardino was dissolved February 1, 2012; and WHEREAS, consistent with the provisions of the HSC, on January 9, 2012 the Mayor and City Council of the City elected to serve in the capacity of the Successor Agency; and WHEREAS, the Oversight Board to the Successor Agency (the "Oversight Board") has been established pursuant to HSC § 34179 to assist in the wind-down of the dissolved redevelopment agency; and WHEREAS, the Successor Agency is the owner of that certain real property consisting of approximately 27.20 acres of vacant land located at 280 South "E" Street, San Bernardino, California (APN 0136-111-26)and which is depicted in Exhibit"A" attached hereto(the "Property"); and WHEREAS, the Property is identified as Site No. 6 within the Successor Agency's Long-Range Property Management Plan (the"LRPMP") as a baseball stadium park that was designated within the LRPMP as a government use site that would be transferred to the City at no cost;and WHEREAS, in its December 31, 2016 letter approving the LRPMP, the California Department of Finance(the"DOF")unilaterally amended the LRPMP with respect only to the Property to require its sale;and WHEREAS, after the approval of the LRPMP,the Successor Agency appealed DOF's unilateral decision to reclassify the Property from"government use"to"for sale";and WHEREAS, on June 24, 2016, the DOF denied the Successor Agency's appeal related to the Property and notified the Successor Agency that the Property must be sold and that it may be sold to a third party or to a public entity, which could include the City of San Bernardino (the "City"), at any price agreed upon by the affected parties without DOF's review or approval;and WHEREAS, notwithstanding DOF's June 24, 2016 notification, the LRPMP requires that the Successor Agency obtain Oversight Board and DOF approval of property sales;and WHEREAS, consistent with DOF's direction,the City wishes to purchase and the Successor Agency wishes to sell the Property pursuant to the terms and conditions described herein; and WHEREAS, to establish a fair and reasonable price for the Property, the Successor Agency engaged Valbridge Property Advisors ("Valbridge")to value the Property; and -1- I' WHEREAS, as more particularly described within the Valbridge Appraisal, it is Valbridge's opinion that the value of the Property,as though vacant, is$4,440,000("Vacant Land Value");and WHEREAS, given that the existing improvements on the Property are single-purpose, not readily adaptable to an alternate and highest and best use and would have to be removed to allow for a modern reuse of the property consistent with existing land-use restrictions, the Successor Agency engaged TKE Engineering, an Inland Empire-based civil engineering firm with experience with demolition projects, to conduct an engineering study for the purpose of determining the estimated cost of demolishing the existing improvements to determine at a net Property value(the"TKE Engineering Study"); and WHEREAS, as more particularly described within the December 2, 2016 TKE Engineering Study, the demolition costs for the existing improvements are projected to be $4,400,000 (the "Projected Demolition Costs"); and WHEREAS, although Valbridge attempted to arrive at a net Property value through an elaborate process of economic extrapolation, the result was deemed inadequate based on a lack of understanding with respect to the: i) currently viable economic trends in the City (i.e., Valbridge's reuse assumptions were economically unrealistic); and ii)practical site preparation prerequisites that would be required for reusing the Property for modern alternate and highest and best uses(i.e., Valbridge lacks civil engineering experience, did not engage a civil engineer to assist them and appears to be unfamiliar with both developer and local government site development requirements);and WHEREAS, TKE Engineering has prepared a March 15, 2017 supplement to the TKE Engineering Study that explains why the Project Demolition Costs remain valid and why the theoretical demolition costs presented by Valbridge should not be considered;and WHEREAS, in consideration of the foregoing, the Successor Agency has: i) accepted Valbridge's Vacant Land Value as reasonable; ii) not accepted Valbridge's opinion regarding its theoretical demolition costs as reasonable; and iii)accepted TKE's Projected Demolition Costs as reasonable; and WHEREAS, based on the foregoing, it is concluded that the net value of the Property is $40,000, which is equal to the Vacant Land Value less the Projected Demolition Costs(i.e.,$4,440,000 less $4,400,000 _$40,000);and WHEREAS, the effectiveness of this Agreement is subject to the approval of the sale of the Property to the City consistent with the terms of the Agreement by the Oversight Board and DOF; and NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth hereinafter, the Parties agree as follows: 1. Incorporation of Recitals: The foregoing Recitals are true and correct and are a substantive part of this Agreement. 2. Administration of Agreement: The transaction described herein shall be administered exclusively by the City and the Successor Agency. 3. Purchase Price: The purchase price for the Property shall be Forty Thousand Dollars ($40,000.00) (the 'Purchase Price"), which represents the Vacant Land Value less the Projected Demolition Costs, -2- and shall be payable upon recordation of a quitclaim deed, the form of which is attached hereto as Exhibit`B". 4. Condition of Property: Except as specifically described in this Agreement, Successor Agency hereby sells the Property to City and City hereby purchases the Property from Successor Agency in its existing "AS IS" condition. 5. Distribution of Proceeds. Pursuant to HSC § 34191.5 (B), the Successor Agency shall distribute the net proceeds from the Purchase Price to the San Bernardino County Auditor Controller (the "CAC") for CAC's subsequent distribution to the taxing entities, as defined in HSC § 34171 (k). Net proceeds shall mean the Purchase Price less any of the City's costs described in Section No. 6 of this Agreement, if any. 6. Commissions and Fees: The Parties have not engaged any real estate broker with respect to the transfer of the Property and consequently no real estate commissions or fees are applicable. In addition,there are no other fees applicable to the purchase and sale of the Property. 7. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of California. 8. Captions: The captions appearing in this Agreement are for convenience only, are not part of this Agreement and shall not be considered in interpreting this Agreement. 9. Amendments: This Agreement may not be altered, amended, or modified except by a writing executed by the Parties. 10. Effectiveness of this Agreement: The effectiveness of this Agreement is subject to the following prerequisites: i) the Parties have approved and have caused this Agreement to be executed by their designated representatives; ii) this Agreement has been approved by the Oversight Board; and iii) the Oversight Board's resolution approving this Agreement has been approved by the DOF. 11. Entire Agreement: This Agreement constitutes the entire agreement between the Parties with regard to the subject matter herein and supersedes all prior oral and written agreements and understandings between the Parties with respect to the purchase and sale of the Property. (Signatures on Following Page) -3- PURCHASE AND SALE AGREEMENT (REAL ESTATE) THIS PURCHASE AND SALE AGREEMENT (the "Agreement") made this 20`x' day of March, 2017 by and between City of San Bernardino, a municipal corporation and charter city (the "City") and the Successor Agency to the Redevelopment Agency of the City of San Bernardino, a public body corporate and politic (the"Successor Agency"). Collectively, City and Successor Agency are referred to herein as the "Parties". IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first hereinabove written. CITY: By: Mark Scott, City Manager SUCCESSOR AGENCY: By: Mark Scott,Executive Director Approved as to Form: City Attorney By: Gary D. Saenz, General Counsel -4- EXHIBIT "A" PROPERTY DEPICTION ADDRESS: 280 S. "E" Street A P N: 0136-111-26 w .=_•-•—•-•— IIS �" : ,s' .•�~ t tc r; f. Awl a S + 4 -5- EXHIBIT "B" (NOT FOR SIGNATURE) RECORDING REQUESTED BY: Successor Agency to the Redevelopment Agency of the City of San Bernardino WHEN RECORDED MAIL TO: City of San Bernardino 300 N. "D" Street, 6'h Floor San Bernardino, CA 92418 Attn: Mark Scott, City Mana er APN: 0136-111-26 (Space Above Line For Use By Recorder) This document is exempt from the payment of a recording fee pursuant to Government Code Section 27383 DOCUMENTARY TRANSFER TAX$ NONE QUITCLAIM DEED (Form Only — Not for Signature) FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the Successor Agency to the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic (the "Grantor") does hereby remise, release and quitclaim to the City of San Bernardino, a public body, corporate and politic (the "Grantee"), any interest that Grantor may have in the real property in the City of San Bernardino, County of San Bernardino, State of California, described in Attachment "A" attached hereto and incorporated herein by this reference. SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public body, corporate and politic Dated By: NOT FOR SIGNATURE Mark Scott Executive Director Successor Agency to the Redevelopment Agency of the City of San Bernardino -6- A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) ss County of San Bernardino } On before me, Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and who acknowledged to me that he/she executed the same in his/her authorized capacity, and by his/her signature on the instrument the person, or entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY of PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Signature of Notary) (This area for official notarial seal) -7- Attachment"A" LEGAL DESCRIPTION (Insert Here) -8 CERTIFICATE OF ACCEPTANCE This is to certify that the interest in real property conveyed by written deed or grant dated , 2016 from the Successor Agency to the Redevelopment Agency of the City of San Bernardino, is hereby accepted by the undersigned officer or agent on behalf of the City of San Bernardino, pursuant to authority conferred by the City of San Bernardino on March 20, 2017, pursuant to Resolution No. 2017- and the City of San Bernardino consents to recordation thereof by its duly authorized officer. Dated this day of , 2017 By: NOT FOR SIGNATURE Mark Scott City Manager City of San Bernardino Provides for: 280 South"E" Street, San Bernardino,California(APN: 0136-111-26) A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) ss County of San Bernardino } On before me, Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and who acknowledged to me that he/she executed the same in his/her authorized capacity, and by his/her signature on the instrument the person, or entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY of PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Signature of Notary) (This area for official notarial seal) -9-