REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
August 20, 2019
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
SUBJECT
Title
Appraisal and Sale of Surplus Property in Bloomington by Public Auction
End
RECOMMENDATION(S)
Recommendation
1. Approve Appraisal No. 19-19, dated May 1, 2019, prepared by Colliers International and on file with the Real Estate Services Department.
2. Adopt Resolution declaring the intention to sell property owned by the County, consisting of four parcels and approximately 3.62 acres, located along Cedar Avenue, north and south of Wrangler Drive in Bloomington [Assessor Parcel Numbers (APN) 0257-211-01, 02, 03 and 0257-221-01] and authorizing a sale by public auction to be conducted by the Real Estate Services Department to be held on October 30, 2019 for a minimum opening bid of $1,150,000, in accordance with Section 25526 of the Government Code (Four votes required).
3. Confirm a finding of exemption and direct the Clerk of the Board to post a Notice of Exemption as required under the California Environmental Quality Act.
4. Authorize the Director of the Real Estate Services Department to execute any other documents and take any actions necessary to complete this transaction.
(Presenter: Terry W. Thompson, Director, 387-5252)
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COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Ensure Development of a Well-Planned, Balanced, and Sustainable County.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The County will be relieved of any ongoing maintenance obligations associated with the fee ownership of the property. Unless the property is sold to another public agency pursuant to Government Code Section 54222, the County will receive property tax revenue from the property and will receive revenue from the sale (1161161000). The minimum bid to purchase this property by public auction will be $1,150,000.
The recommended terms and conditions for the sale of this land are detailed below:
• Minimum bid of $1,150,000.
• Buyer to provide a $115,000 deposit.
• Buyer will be required to enter into a purchase and sale agreement provided by the County to be recommended to the Board of Supervisors (Board) following the auction.
• Buyer will have a 60-day due diligence period commencing upon the approval and execution of the purchase and sale agreement by both parties.
• The deposit will become non-refundable upon expiration of the due diligence period.
• Buyer will have a maximum of a 12-month escrow/entitlement period from the day escrow is opened, unless extended by both parties.
• Buyer will have a one-time option to extend the escrow an additional six months upon payment of $300,000. This additional fee is non-refundable and shall be applied to the purchase price.
BACKGROUND INFORMATION
The recommended actions will approve an appraisal and the sale of surplus County-owned property in the unincorporated area of Bloomington by public auction (APNs 0257-211-01, 02, 03 and 0257-221-01) with a minimum bid of $1,150,000.
On January 22, 2001, the County acquired title to approximately 3.62 acres of land located along the east side of Cedar Avenue, north and south of Wrangler Drive in Bloomington and referenced as APNs 257-211-01, 02, 03 and 0257-221-01 (Property). At that time, the Property was identified as a future site of the Bloomington Branch Library (Library). The Library was subsequently built on a larger County-owned site in Bloomington.
The Property has remained undeveloped and the County determined that the Property is no longer necessary for the uses and purposes for which it was acquired and the Real Estate Services Department (RESD) was engaged to assist with the disposition of the Property by public auction.
RESD had the Property appraised. The appraisal, No. 19-19, dated May 1, 2019, was prepared by Colliers International, and is on file with RESD. The appraisal determined the Property value to be $1,150,000. RESD reviewed and concurred with the appraised value.
All appropriate local and public agencies and non-profit entities, pursuant to Government Code Section 54222, were notified of the availability of this Property. Notices were sent on July 22, 2019, initiating the required 60-day notification period in which an agency interested in purchasing the property must respond. RESD will proceed with the auction if written requests to purchase the Property from qualifying agencies meeting the minimum requirements are not received within the 60-day period. The auction will take place at the County of San Bernardino Government Center, 385 North Arrowhead Avenue - First Floor, San Bernardino, CA 92415 on October 30, 2019 at 11:00 AM.
The acquisition of this Property was reviewed pursuant to the California Environmental Quality Act (CEQA) and determined to be categorically exempt from further environmental review in accordance with Section 15312 of the CEQA guidelines.
PROCUREMENT
County Policy 12-17 - Surplus Real Property allows for property that is no longer needed and has no economic reason for retention to be declared surplus and disposable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Robert Messinger, Principal Assistant County Counsel, 387-5455) on July 24, 2019; Finance (Ginger Roosa, Principal Administrative Analyst, 387-4883) on July 30, 2019; and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on August 5, 2019.
(JG: 677-0477)