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Home My WebLink About11/06/1984 Item 5 - Consider Sale of Gudel Property 3700 S Higuera to William Kiely dba Pacific AccessClty OF San r,,r,S OBISpO CGIIJI\CIL AGiENtrIA FIEPG,FIT MEETING DATE: I 1-5-84 ITEM NUMBER: FROM: Geoffrey L. Grote, Assistant Administrative Officer SUBJECT Consideration of offer by Williarn Kiely dba Pacific Access on South Higuera Street known as the t'Gudel Property." CAO RECOMMENDATION: Adopt resolution accepting offer from William Kiely dba Pacific Access to purchase eity-owned property; and authori-ze Mayor to execute all necessary documents. BACKGFIOUND Qg*eref, D-e-se.r.]p!rsLs[*:bs*gs.sre + prsperly Size: I 7/2 acres t of wirich 1.6 acres has been leasecl as a radiotransmitter site and .6 acres of creek area at the rear of theparce1 Shape: Rectangular (see map). Topography: Relatively leve1 with rear of property adjacent toSan Luis Obispo Creek. Z9NJN9: C-S-S (C-S = service-conmercial, S = special considerations ilratrequire a Planning comnission use permit for any developnent. AL!*QWED*U9.89: c-s uses. The s-overlay zone reguires rise permit approvalfor any C-S nse. SPS.pJA_I1*A.qNSJDEFAT.I-QN"$r A use permit is required for development toensure conpatibility with surrounding uses and allow for review of access ancl circnlation. NEI.8H_9QBH8"9D: Land to the north, lumber yard and other businesses. mobilehone park. also zoned C-S, is developed with a Inmedj.ately to '[he south is a 9!sBENr*^ll$E: Month-to-nonth grazing lease and an expired lease for arad.io transnitter on a 1.6 acre site witirin the property. No other improvements are on the property. A^aAEP.S: From South Higuera Street (68 foot frontage). ITIIJIJ.E.S-: Available along existing frontage APPRAT VATUE $391,000 (April 1984) . st ,Wru Clty Ot San r.^,i OBtSpO CCIIJNCI L AGIEI\I trlA FIEPCIFTT Tlre city has owned this 9 7/Z acre parcel since 19Sb and at one tine considered it as the site for a new corporation yarcl. when a moresuitable location for the new corporation yard was deternined, the Councilauthorized staff to proceed with the sal.e of this property. on August 26, 1981 the Pranning conmission found the sate of this property to beconsis'tent with the general plan. Staff prepared advertisements for the sale of this property, which ran inthe Telegram-Tribune and the L.A. Tines in 1982. In addition, staff alsoprepared a summary of property data which was distributed to alIinterested parties. The original marketing of this property in 1982called for a relativery fornal bidding procedure, with offers to besubmitted to the city clerk by wednesday, Decenber 1, 198a. However, nobids were received at that tine. In fact, the city did not receive any bids on this property until April of1984' Since April, four offers have been received, which were summarizedin a document prepared by Anne Russell and previously distributed as partof our discussion concerning litigation with KATY. In the spring of 1gB4 KATY informed staff that they interpretecl their lease in such a way as toallow them to continue on the land for an indefinite period of tirne. Thisdispute has triggered litigation, which has previously been discussed withthe City Council. Because of the above referenced issues, staff has worked with KATY in order to structure a sale which would settle thedisPute between then and the city. The significance of this sale is thatil wirl purchase the property subject to any rease with I(ATy which nayexist, Financial Impact The offer is as follows $SS0,000 payable $5,000 upon city's acceptance of offer, adclitional $45,000 upon close of escrow (January 25, 19gS). Balance of $340,000 to be evidenced by promissory note at 13..6 secured byfirst deed of trust on property, payable monthly (interest only). Balloon due five years fron close of escrow. The sale of this parcel is consistent with previous council policy regarding sale of property as an offset to the cost of building the newcity corporation yard. It is anticipated that the proceeds of sale fromthis transaction as well as the proceeds of sale from the city's water maiutenance yard will be used to fund the lease purchase on the new citycorporation yard. Concurrences The Comnunity Developnent Department, Public Works Department and CityAttorneyrs Office concur with the reconmendation contained in this staffreport. 5L -/ .\ crty of san L*,i oBtspo ) GGIIJNCIL AGiENtrtA FIEPGIFIT QAO. Begomngrrdellg;f Because this offer is consistent with the value established by appraisaland because it will settle all issues regarding KATY's continued tenancyon this parcel, staff recommends that Council accept this offer if thefollowing conditions are satisfied: 1. That KATY agree that any lease which may presently exist expires asof close of escrow (January 2b, lgg5) 2. That easenents be granted to the approval of the public worksDirector. 3. That purchaser submit a financialto perform under the terms of the saleAttorney. statement detailing their abilityto the approval of ilre City 4 ' That KATY agrees to resolve the ongoing litigation between themselvesand the city to flre satisfaction of the City attorney. GG:np Attachments: Description map Resolution Real Estate purchase Contract Amendnent to Real Estate purchase Contract 5-3 *r c/os- lo t R-2-S R-2 UJ UA % ( o) P DRIVE crtY t5 f %s 1 P /os-2 Tttr --s %s \ ^-s PF-S C) C*oltPF -SP C- c- DOWNTOWN SLO M R-2-S ltn I RPORT City Property For Saleryro;ffiffss"pnnp"^, 990 Palm Stro€t/Posl Olllce Box 321, San Lule Oblspo, CA 93408 d4 ).i;l REAL ESTATE PURCHASE CONTRACT CaliforniaSan Luis Obispo, BIXER: SELLER: PROPERTY: PURCHASE PRICE: TERMS: BUYER'S CONDITIONS: FAILURE OF CONDITION: returned to Buyer subclosing costs incurreattributable to Buyer completed. ect to reduct osit shall be on only for October 15, 1984 WILLIAI4 KIELY dba PACIFIC ACCESS P.O. Box 1098 San Luis Obispo, California 93406 CITY OF SAN LUIS OBISPO Gudel property located on South Higuera Street, City of San Luis Obispo, California (adjacent to the City Sewer Farn) approximately 9 ll2 acres;APN: 053-051-36-940 $39o, ooo. oo $5,000.00 upon acceptance of this Contract. $45,000.00 upon close of escrow. $340,000.00 to be evidenced by a Purchase Money Promissory Note secured by Deed of Trust in favor of the City of San Luis Obispo requiring monthly installments of interest only at thirteenpercent (L3%) per annum with the entire balanceof principal and airy unpaid interest all due and payabLe five (5) years after the date of close of escrorr. CLose of escrow shaLL be conditioned upon Buyer's approval of PreLiminary Title Report within ten(10) days of receipt of a copy of such report. SeLler is to provide title insurance showingtitle to be free of liens, encumbrances, easements known to Seller other than the following:(a) current property taxes, (b) covenants,conditions, restrictions and public utility easements of record , Lf aay, provided the sarne do not adversely affect use of the property forretail and wholesale sales of lumber and other building materials, and (c) the existing lease.if any, for the radio transmitter tower to KATY. If any of Buyer's conditions are not satisfied by the date for close of escrord, Seller or Buyer may terminate this agreement and de P l_J d Possession shall be delivered co Buyer on December 3 , 1984. which would have beenif the sale had been n POSSESSION: -l-r:(HIBIT ''A g-7 AMENDMENT TO REAL ESTATE PURCHASE CONTRACT OF OCTOBER 15, 1984 IfILLIAM KIELY, dba PACIFIC ACCESS, hereby renews the Real EstatePurchase Contract dated October 15, L984 subjbct to the followingprovisions: USE PERMITS: Close of escrow shall be conditioned upon Buyer's obtaining usepermits from the- City of San Luis Obi-spo al_iowing- use of the pr6p.tryfor retail and wholesale sales of lumber and othEr buildittg r.t"iiali,and location of the existing radio transmitter tower ana afitenna -y"t"r. Buyer shal1 apply for such permits; forthwith. POSSESSION: Possession shall be delivered to Buyer on January 25, 19g5. CLOSE OF ESCROtrI: Escrow is to close on January 25, 1985. ACCEPTANCE: Acceptance must be corrnunicated to Buyer prior to 5:00 P.M. onNovember 9 , L984. All of the terms of the Real Estate Purchase Contract of October 15,1984 not specifically changed by this Amendment shal1 remain as statedin that document. DATED: October 29, l9B4 BUYER: ACCEPTANCE: DATED: October l-984 SELLER: CITY OF SAN LUIS OBISPO BY EXHIBIT IIB'' 5g