The URL can be used to link to this page

Home My WebLink About02-05-1985 Item C6 - Disposition of 1330 Buchon StreetIffitt'\.c{ty oF san t-^js oBtspo FIEPcIFIT MEETING DATE:February 5,, 1985 "wyT atl Dave Romero FROM Dave 1i Disposition of the 1330 Buchon street Property (!{ater utility yard) offered for sale O t/ SUBJECT CAO FIECOMMENDATION: By motion reject all bids; authorize staff to readvertise the saleoffering when market conditions are nore favorable, to solicit anadditional appraisal, to investlgate the use of a realtor, and to investigate a lot combination which may make the property nore salable. BACKGHOUND In Decenber the council authorized staff to advertise for bids on the saleof the water utility yard at 1330 Buchon street. on January 4 staff opened the following bids: with buildines without buildines Serene Construction $30,000 $3o, ooo $90,510 $36,000 that her bid would be Mr. and Mrs. Nisar Ahmad C. F. Hamlin $39,000 (After the bid opening, Mrs. Ahmad inforned staff $90,510 with or without buildings.) All the blds are substantially below the $130,000 appraised value which was submitted in January 1984. The city must now decide whether to negotiate a sale, reject alI bids and readvertise the offering imnediatelyor reject all bids and readvertise the offering later. ALSERNArrvEg f . Nggg,liglg"B s,aler The advantage here is that the city coutd inmediately liquidate an asset and use the cash for capital outlay or investment. The disadvantage is that the city would suffer a $40,000 lossof anticipated revenue calculated from the appraised value. 2.Reieet a ll btds and readvertise the offeri imnediatelv Particularlyif bids were hlgher, the city could realize an influx of cash for development or investnent, but a readvertisenent could result in the sane low bidding and a waste of staff time. 3. Reiect all bids and rend vertlse the offerins later.If the market forthls property is tenporarily depressed, waiting to readvertise theoffering could result in higher bids, closer to the appraised value. Another lncidental advantage would be the temporary availability of this c6-/ a- )'Wru gljiil'lXB'gfu oo Fr EPcr Frr 1330 Buchon Street property sale page 2 yard for sone corporation yard storage and operations, granting the city sone tine until plans for permanent storage and operations facilities atthe corporation yard solidify. Also, the public works fleld crews would have alternative storage if either the Nipomo Street transmisslon shopsite or the Prenier Music buirding site is sold or developed. Bothlocations are now used for material storage. The disadvantage toadvertising the offering later is that the city would not imnediatelyrealize the cash available fron the sale. F'ISCAI.IMPACT When the council considered the lease-purchase financing for the newcorporation yard, it stipulated that the existing water utility yard besold and that the revenue be lncorporated into the capital budgets fronwhich the lease-purchase installments would be paid. No time llmit forthe sale was set, although the last installnent ls payable in fiscal year 1988-89. Revenue from the sale of the water utility was not budgeted forfiscal year 19B4-85 and failure to sell the yard innediately will notaffect current capital budgets. gTAEF-REqOIFIgNDAT I 9N Staff recomnends rejecting all bids and readvertising the sale offeringIater. Before the next advertisement and with council authorization,staff wlll: -solicit an additional appralsal to ensure that the appraised value assigned to the water utility yard reflects current fair market value -investigate the use of a reaLtor -investigate a lot combination which may make the property more salable CONCURRENCES The finance dlrector agrees that postponing the sale of the water utilityyard will not adversely affect the capital budgets as long as a reasonablesale is negotiated before the final installment is paid on the corporationyard lease-purchase contract. ATTACHMENTS Serene Constructionrs bi-d Mr. & Mrs. Ahrnadrs bid C. F. Hamlinrs bid C-A-L I ) SERENE CONSTRUCTION 1148 Market St., Moqo Bay, CA934J;? (8O51772-st7s J-S4Ni*l J sopoo fh:ttu Pyrt-{ttrf\' #' l wdltc'*^;t 1f* aTtn** { T** dI ':'.*t .i ) . .-,1 '."t ' .,Y I ., u h)e, hr, *Ar, . N isA R AttrH nD 44* A 1l- r,n^*J lve-h,a*) -f""^ L,4 4 S losto '00 ) aHa.\-a[<J l,\r.til" 'lt<- hz ,x FER I NG CITY OF SAN LUIS OBISPO SURPLUS PROPERTY SALE (,u')I Lrtl*,hbo lJ t^a[^on Sf^44-f S^^ Luvr b C^-. g 3 Llo T,s b: I is a'^\3 [r,"-t .-t \^l lt^4,^l' hq'. lJ ' r^ _ a^l' bu.i l r'\ * SFavl MA N,fu, *fi,n +I*twp^r) @. oL*r-K 4 $ 9' 5l'4 n, obi h rS bid.. St-o,*L Frrr N,;n, ,{L .: LOCAT I ON : SAN 1330 BUCHON STREET LUIS OBISPO, CA o-k4 a 1 1 L767 ConQje Avenue San Luis Obispo, CA 9340f 4 January 1985 City of San Luis ObispoOffice of the City Clerk 990 Palm Street San Luis Obispo, CA 93401 Gentlemen: I bid thirty-nine thousand (39,000) dollars for the surplus BuchonStreet Property, including existing buildings. Without the build- ings rny bid is $90,000. This bid is for a cash sale. For the required deposit, attached is Bank of America Cashier's Check #573807 in the amount of $3,900.00. :r .{ (- c. F. Hamlin CFHr/sm *.ffiffi e-/-5