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HomeMy WebLinkAbout02/17/2004, C7 - DECLARATION OF SURPLUS PROPERTY AT 3265 ROCKVIEW PLACE AND AUTHORIZATION TO SEEK PURCHASE PROPOSALS counat a t j acEnaa nEpoat C I TY OF SAN LU IS O B I S P O FROM: Wendy George,Assistant City Administrative Officer k; Prepared by: Neil HavW Natural Resources Manager SUBJECT: DECLARATION OF SURPLUS PROPERTY AT 3265 ROCKVIEW PLACE AND AUTHORIZATION TO SEEK PURCHASE PROPOSALS CAO RECOMMENDATION Approve a resolution declaring the City-owned lot at 3265 Rockview Place to be surplus and authorize staff to seek proposals from parties interested in purchase of property. DISCUSSION Last summer, City staff were approached by several different parties interested in possibly purchasing the vacant City-owned lot at 3265 Rockview Place,presumably to combine that purchase with adjacent land to create a unified ownership capable of supporting a condominium or apartment development of some size. About half of the property is zoned R-2-S; the remainder is zoned C/OS-40. The property was purchased by the City in 1970, for widening of Rockview Place, and has remained on the City's property inventory ever since. In September 2003, in response to these inquiries, the Council authorized staff to begin a process that could lead to the sale of the property. Since that time staff has obtained an appraisal of the property, contacted the School District and Housing Authority regarding their potential interest in the property (there was none), obtained the necessary consistency finding from the Planning Commission on January 28, 2004, and prepared the attached Request for Proposals. We are now ready to seek proposals from qualified buyers, but City policies require the Council to formally declare the property surplus and to authorize its being offered for sale. It is assumed that there will be a somewhat restricted audience interested in a sale, and therefore staff has prepared the Request for Proposals. This document will be sent directly to those individuals who have expressed interest in the property, and other potentially interested parties would be notified through a newspaper advertisement. The Request for Proposals will allow staff to screen the proposals for price, contingencies, creditworthiness of the proposer-, and other criteria. The City will retain the right to entertain or to reject any or all proposals. Upon selection of a successful proposal, staff will return to the Council to authorize the transaction. The matter will not be considered final until such action by the Council in open session. Several Council members have mentioned that the purchase of this property in 1970 involved a drainage issue. Staff did not investigate current soil or drainage conditions in detail; however, the Request for Proposals discloses this history and invites interested parties to investigate further. Rockview property sale open session all Council Agenda Report—Declaration of Surplus Property at 3265 Rockview Place Page2 FISCAL IMPACT This transaction, if successfully concluded, may generate as much as $400,000 or more to the City. Councilmembers will recall that during the budget process the Council conceptually approved the use of proceeds from the sale of surplus City property to augment the Open Space Fund. While staff would anticipate spending the majority of the proceeds of this sale in that manner, we are also investigating the possibility of using some of the money to purchase a used "brush truck"—a lighter, more maneuverable piece of fire equipment designed for open space areas. As the Bishop's Peak fire of August 2003 graphically demonstrated, as we acquire more open space we increase the possibility of a fire occurring in one of these areas. Fire Chief Wolfgang Knabe has expressed concern that existing fire apparatus is not appropriate for firefighting in open space terrain. Final disposition of the funds, however, will be made at such time as the transaction is finalized, with Council approval as appropriate. ALTERNATIVE Council could decide not to proceed with the transaction. This is not recommended as the property has clear value for development or redevelopment of the area, it only functions as visual open space because of its small size, and the majority of the property will be retained as open space in any case. In addition, Council's action at this time is not final. It is possible that no potential buyers will step forward, or that proposals may entail contingencies that the City finds unacceptable. Therefore, "testing the waters" for this possible transaction holds no down side other than minor commitments of staff time. Attachments: 1. Map 2. Planning Commission Minutes 3. Resolution 4. Request for Proposals 3265 ROCKVIEW ATTACK "NT 1 004-691-010 lap.- c-s-p -N-S R"2 -s-s 3 60 p . .......... ....."Ilk Io .2-PD c CITY OF SAN LUIS OBISPO GEODATA SERVICES 955 MORRO STREET SAN LUIS OBISPO,CA 93401 (805)781-7197 01/21/04 16:55 Draft ACHMEK2 SAN LUIS OBISPO PLANNING COMMISSION MINUTES -Excerpt — Item 4 January 28, 2004 CALL TO ORDER/PLEDGE OF ALLEGIANCE: The San Luis Obispo Planning Commission was called to order at 7:00 p.m. on Wednesday, January 14, 2004, in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo. ROLL CALL: Present: Commissioners Allan Cooper, Alice Loh. James Caruso, Michael Boswell, Carlyn Christianson, and Chairperson Orval Osborne Absent: Commr. Jim Aiken Staff: Associate Planner Pam Ricci, Deputy Community Development Directors Ron Whisenand and Michael Draze, Community Development Director John Mandeville, Assistant City Attorney Gil Trujillo, and Recording Secretary Irene Pierce 4. 3265 Rocivkew Place. GPC 188-03; General Plan Conformity Report regarding the proposed sale of surplus City property; R-2 zone; City of San Luis Obispo, applicant. (Neil Havlil) Neil Havlik, Natural Resources Manager, presented the staff report, recommending the Commission determine and report to the City Council that the proposed property sale conforms with the General Plan. He explained that the City Council has directed staff to proceed with the sale, but State Law mandates that prior to offering the property for sale to the public, general plan conformity must be determined by the Planning Commission. In addition, the property must first be offered to the school district and the local Housing Authority; however, no responses to those offers have yet been received. He noted the earth movement in 1970 would be disclosed, although property management records show no evidence of any Land movement since that time, and it would be the responsibility of potential purchasers to further investigate. He felt that the R-2 zoning implies the likelihood of considerable grading in conjunction with development of this site and adjacent properties, and given that, stabilization activities would not be a major cost consideration. PUBLIC COMMENTS: Mary Beth Schroeder, 2085 Wilding Lane, felt the subject property should remain open space and opposed the sale of the property. I COMMISSION.COMMENTS: Commr. Cooper moved the staff recommendation. Seconded by Commr. Loh. Commr. Loh asked that the motion be amended to include three findings: 1) the request addresses the need for additional housing, consistent with the City's Housing Element policies: 2) The proposed sale .would be consistent with the neighborhood. and surrounding _land _uses: and 3) 50% of the lot will be preserved as open space. The motion maker agreed to the amendment. AYES: Commrs. Christianson, Cooper, Caruso, Loh, Boswell and Osbome NOES: None ABSENT: Commr. Aiken ABSTAIN: None The motion carried on a 6:0 vote. AT'ACHMEW3 RESOLUTION NO. (2004 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO DECLARING THE PROPERTY LOCATED AT 3265 ROCKVIEW PLACE, SAN LUIS OBISPO, CA AS SURPLUS PROPERTY AND AUTHORIZING THE CITY ADMINISTRATIVE OFFICE TO TAKE ACTIONS LEADING TO ITS SALE WHEREAS, the City owns vacant property located at 2365 Rockview Place, San Luis Obispo, CA that was originally purchased as part of a road widening project on Rockview Place; and WHEREAS, the City no longer has the need for this property; and WHEREAS, as part of the. 2003-05 Financial Plan the Council approved researching the sale of surplus property to continue funding for open space purchases; and WHEREAS, several private parties have expressed an interest in purchasing the property; and WHEREAS, in accordance with the City's property management policies, the City has notified government agencies operating in San Luis Obispo of the availability of the property and has received no interested responses; and WHEREAS, on January 28, the Planning Commission determined that disposition of this property is consistent with the policies of the Land Use Element of the General Plan; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Effective immediately, the property at 2365 Rockview Place, San Luis Obispo,CA is declared surplus. SECTION 2. The City Administrative Officer, or his designee, is authorized to seek proposals from private parties interested in purchase of this property. SECTION 3. The Council will be advised on the progress of any purchase offers, and will approve any sales agreement. Upon the motion of seconded by , and on the following roll call vote: AYES: 1 Resolution No. (2004 Series) Page 2 NOES: ABSENT: The foregoing resolution was adopted this day of , 2004. ATTEST: Lee Price, City Clerk David F. Romero, Mayor APPROVED AS TO FORM: ona Lowell, City Attorney illll���l�ll I,II IIIIII ATTACHMENT 4 ���III IIIIIIIII�II�I III .. C, o San WIS OBIS 990 Palm Street, San Luis Obispo, CA 93401-3249 REQUEST FOR PROPOSALS Purchase of Real Property at 3265 Rockview Place San Luis Obispo, CA. 93401 February 4, 2004 TO: ALL INTERESTED PARTIES FROM: NEIL HAVLIK, NATURAL RESOURCES MANAGER, CITY OF SAN LUIS OBISPO SUBJECT: SALE OF SURPLUS CITY-OWNED PROPERTY AT 3265 ROCKVIEW PLACE NOTICE IS HEREBY GIVEN to all interested parties that the City of San Luis Obispo will accept and consider bona fide proposals for the purchase of surplus City-owned property at 3265 Rockview Place, San Luis Obispo. Pertinent facts about the property are as follows: APN: 004-591-010 Size: 22,000 square feet Zoning: R-2-S (10,000 square feet approx.); C-OS-40 (12,000 square feet approx.) Minimum bid for the property is FOUR HUNDRED THOUSAND DOLLARS ($400,000.00). Sale will be "as is"; entail no warranties of any kind; and be in cash at close of escrow. Escrow is expected to close within 75 days from close of the proposal period. Disclosure: The City of San Luis Obispo purchased this property in 1970 as part of a road widening project on Rockview Place. It is reported that there was some soil movement associated with the widening, which led to the purchase of the property and demolition of a single-family home that existed there. However, since that time, there is no record of any soil movement or damage to the roadway from this property. Other than "minor" soil drainage work done in 2000 to protect the sidewalk, there is no record of any soil remediation work having been done on the property since 1970. Interested parties may wish to investigate this potential condition further. �� The City of San Luis Obispo is committed to include the disabled in all of its services,programs and activities. O Telecommunications Device for the Deaf(805)781-7410. Proposals must be received by the City of San Luis Obispo, Administration Department, in a sealed envelope no later than 5:00 pm, Friday, March 19, 2004. Proposals received after that time will not be opened and will be returned to the proposer. Proposals may be in any written form, but must include the following information: • Name, address, and telephone number of the proposer; • A statement that it is the wish of the party to purchase the property at 3265 Rockview Place, at a stated purchase price, cash at close of escrow, and that the party understands that the purchase is "as is", with no warranties; • A statement of any special conditions or considerations(contingencies)that the proposing party may wish the City to consider; • Information that will help the City to initially evaluate the creditworthiness of the proposing party; and • A check in amount of$1,000 made out to the City of San Luis Obispo, which shall represent a deposit (or earnest money) for the sale. Said check will be cashed by the City. The funds will be applied to the agreed purchase price if the transaction is completed, and will be retained as liquidated damages if the successful proposer withdraws from the transaction prior to close of escrow. Funds from unsuccessful proposers will be refunded. The City of San Luis Obispo will review the proposals and will accept what, in the City's sole discretion, it considers the most favorable responsible proposal for detailed discussions. If detailed discussions with that proposer are unsuccessful, the City may contact the next most favorable proposer, etc. However, the City of San Luis Obispo retains the right to reject any and all proposals in the City's sole discretion. No action is considered final until acted upon by the City Council of the City of San Luis Obispo in public session. This is expected to occur within 45 days of completion of the proposal closing date, and escrow would close as soon as possible after that time. Address proposals in a sealed envelope to: Dr. Neil Havlik, Natural Resources Manager City of San Luis Obispo 990 Palm Street San Luis Obispo, CA. 93401 Clearly identify the document as "Proposal for Purchase of Real Property at 3265 Rockview Place, San Luis Obispo, CA." For further information, please contact Dr. Havlik at 781-7211 or by e-mail at nhavlik(a)-slocity.org