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Home My WebLink AboutReferred back to staff to evaluate Sale price of Parcel - 25 1 Council/Agency Meeting Held: D 3 Deferred/Continued to: Approved ❑ Conditionally Approved 0 Denied City CIA's ftffiture Council Meeting Date: November 17, 2003 Department ID Number: ED 03-31 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTIOW -A Z SUBMITTED TO: HONORABLE MAYOR/CHAIRMAN AND CITY COUNCIL x�.: MEMBERS/REDEVELOPMENT AGENCY MEMBERS /�,�p w � SUBMITTED BY: RAY SILVER, City Administrator/Executive Director i PREPARED BY: DAVID C. BIGGS, Director of Economic Development/Deputy Executive Director CLAY MARTIN, Director of Administrative Services SUBJECT: Approve Sale of Property At 2502 Delaware Street Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: The City owns an approximately 3,750 square foot parcel which is a remnant from the recent Yorktown Street widening. The Redevelopment Agency proposes to purchase the property from the City for an additional Habitat for Humanity housing project. Funding Source: Redevelopment Agency Housing Set Aside Recommended Action: City Council: 1. Approve the sale of the parcel at 2502 Delaware Street to the Redevelopment Agency for $153,000 (appraised value less 10%) and Authorize the Mayor and City Clerk to execute the deed from the City to the Redevelopment Agency and send to the County for recordation after the Agency Clerk has affixed the acceptance Certificate of the Redevelopment Agency. Redevelopment Agency: 1. Authorize acceptance of the deed by the Redevelopment Agency. Alternative Action(s): 1. Retain the parcel for an unidentified possible future public use; or C —� REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION MEETING DATE: November 17, 2003 DEPARTMENT ID NUMBER: ED 03-31 2. Direct staff to utilize a broker to market the property for sale through the surplus property sales process. Analysis: On May 5, 2003, the City Council considered the possible sale of this parcel to the Redevelopment Agency. The Council did not take action on the proposed sale at that time and directed staff to get an updated value on the property. Staff secured some updated comparable sales in Huntington Beach and asked Lee & Associates to provide an updated value after evaluating these comparables. The updated Opinion as to Value (attachment 1) dated October 3, 2003, establishes a value range of $150,00 to $170,000. Michael Heineke, Real Property Agent in the Administrative Services Department also reviewed the updated Opinion as to Value and while he believes the initial value was appropriate, he concurs with using the higher valuation. His analysis is attached (Attachment 2). As such, it is recommended that the City Council proceed with the sale of the property to the Redevelopment Agency based on the highest value provided in the range in the updated Opinion as to Value. In August of 1998, the City sold the Redevelopment Agency three parcels that were remnants from the Yorktown Street widening (Attachment 3). This sale was made after the City had attempted to sell these parcels through the surplus sales process and did not receive an acceptable bid. These three parcels were subsequently developed with single- family homes by Habitat for Humanity. It was anticipated at the time that the subject parcel, once acquired and the street work completed, would ultimately be sold to the Redevelopment Agency for a fourth Habitat for Humanity unit. With the street work competed, it is now timely for the City to dispose of the parcel at 2502 Delaware Street. Under the Surplus Real Property provisions of the City's Municipal Code, sales, conveyances, and leases to the Redevelopment Agency are exempt from the surplus property procedures. In addition, Section 33220 of the State Health & Safety Code provides that a City may sell property to a redevelopment agency, upon the terms and with or without consideration as it determines. The parcels updated fair market value of $170,000 has been established in an Opinion As to Value obtained by the Real Estate Services Division in October 2003. In recognition of the transaction costs and sales commission avoided through a sale to the Redevelopment Agency, together with the property being sold for a deed restricted affordable housing development, the Redevelopment Agency will be paying $153,000 for the parcel. This represents the fair market value less 10%, the same terms under which the Redevelopment acquired the three previous parcels. The Redevelopment Agency's payment of $153,000 will be credited to the Measure M account, the original source for the acquisition of the property. Environmental Status: N/A G:\David\RCAS\2052de1aware2.doc -2- 111612003 2:01 PM REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION MEETING DATE: November 17, 2003 DEPARTMENT ID NUMBER: ED 03-31 Attachment(s): City Clerk's Page Number No. Description 1 Opinion as to Value dated October 3, 2003. 2 Memorandum dated October 7, 2003 3 Map of Parcel 4 Grant Deed RCA Author: D. Biggs, ext. 5909 G:\DavidiRCAS\2052de1aware2.doc -3- 11/3/2003 2:51 PM t� Attachment 1 Opinion as to Value ee & RECEIVED 1,9WAssociates OCT 7 2003 COMMERCIAL REAL ESTATE SERVICES DEPART`LENT OF October 3, 2003 ECONUMiU ?U?�gENT Mr. David Biggs City of Huntington Beach-Real Estate Services 2000 Main St. P.O. Box 190 Huntington Beach, CA 92648 Dear David: Thank you for forwarding the sales comparables for the property located at 2502 Delaware, Huntington Beach (NEC of Delaware & Yorktown). Property values have increased even since the first quarter of 2003 when the first evaluation of the subject property was completed. The property is zoned for multi family residential which adds some flexibility and may allow the site to command a higher price Today, a value of$150,000.00 - $170,000.00 can be expected. However, given the uncertainty of the market I would suggest listing the site at a higher number than shown above in order to "flush out" any buyers that might be willing to pay the higher price. As always, if you have any questions please give me a call. Sincerely, LEE & ASSOCIATES-NEWPORT BEACH, INC. c/,4�6t� Curt Stalder Senior Vice President Direct Line: 949-724-4751 Lee &Associates- Newport Beach,Inc. A Member of the Lee &Associates Group of Companies 3991 MacArthur Boulevard,Suite 100/ Newport Beach,California 92660 / Office: 949/724-1000 / Fax: 949/862-9048 Attachment 2 Memorandum dated October 7, 2003 . 4 CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICATION To: David Biggs, Director, Economic Development From: Michael L. Heineke, Real Property Agent Date: October 7, 2003 Subject: Surplus Parcel APN 025-111-40— NEC Yorktown & Delaware I have reviewed the information provided on the subject line property and submit the following analysis. The subject site was appraised in the first quarter of 1999, in anticipation of litigation. That appraisal performed by a highly qualified MAI indicated a fair market site value of$33 per square foot for a standard, conforming lot in the neighborhood. The current value is estimated to be $40 per square foot when adjusted using the published housing CPI for the region. The `Remainder' lot is a sub-standard, non-conforming site for the neighborhood. The 30 foot width is difficult to develop and will support a small single-family residence,which is the least intense of all legal potential uses. The more intense potential legal uses include duplex,triplex,townhouses, and apartments; all of which are not physically possible. Ordinarily, a sub-standard lot suffers economically due to a lack of development potential, difficulty in development, loss of privacy, and in this case increased noise being a corner lot and proximity to traffic. A reduced market value for this sub-standard lot would be expected; however,the lack of developable sites within the market area may negate any reduction in value. Competitive bidding for this developable site may fetch full market value or even a premium under the right conditions. It is estimated that the value of the subject property could reasonably range from a low of$117,000 to a high of$155,000. If you are interested in a detailed analysis of comparable properties, please let me know. c: Clay Martin,Director of Administrative Services Attachment 3 =�� Parcel Map 03/20/2003 16: 38 714-374-1743 FUM-IN' RESOURCES PAGE 03 2/13/2003 4-10:24 PM LIE .9 DAU z&"19 2620 26 7 ,26 iG-1-s 2615'4 ........... 12 2.6156 * oli It 2614 2613 2616 2925 It 2 lel I .......... 2612 2612 2609 16 260-6--- 2-611 "! 2606 2605 --2-60.9--*1 2600 5 26015 1 2606 352603 203 ............ 2604 2605 2605 j7_j 26 2604 Del— y- 2525 2520 2519 2522 2521 2517 2518 i 2515 2510 2517 2516 2511 ,3131 315 2313 2500 2512 1 2511 417 r 2506 319 2507 2505 2502 2501 2501 ............... Yorktown Ave. 6 602 20 2420 2419 C14 241.� in Ln Ln 2420 2414 2411 ........................... 2416 2409 2405 2412 2411 2404 2410 I 2407 2322 1 2323 2402 2409 i 2403 ; ............... . 2318 2319 2307 � 2320 2324 Im i J, C 11 2321 LU 2316 N W 4 me E s City of Huntington Beach Scale: 1"= 145* men., D AZ Attachment 4 � a Grant Deed Council/Agency Held: 03 Deferred tinued to: an pproved ❑ Conditionally Approved �� Denied City Clerk's Signature Council Meeting Date: May 5, 2003 Department ID Number: ED 03-09 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION o SUBMITTED TO: HONORABLE MAYOR/CHAIRMAN AND CITY COUNCIL T, MEMBERS/REDEVELOPMENT AGENCY MEMBERS �' = 1 V f^ SUBMITTED BY: RAY SILVER, City Administrator/Executive Director&24V PREPARED BY: DAVID C. BIGGS, Director of Economic Development/Deput� Executive Director CLAY MARTIN, Director of Administrative Services SUBJECT: Approve Sale Of Property At 2502 Delaware S tatement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: The City owns an approximately 3,750 square foot parcel'which is a remnant from the recent Yorktown widening. The Redevelopment Agency proposes to purchase the property from the City for an additional Habitat for Humanity housing project. Funding Source: Federal HOME Funds for the site acquisition costs by the Redevelopment Agency. Recommended Action: Motion to: City Council — 1. Approve the sale of the parcel at 2502 Delaware to the Redevelopment Agency for $112,5000 (appraised value less 10%) and Authorize the Mayor and City Clerk to execute the deed from the City to the Redevelopment Agency and send to the County for recordation after the Agency Clerk has affixed the acceptance Certificate of the Redevelopment Agency. Redevelopment Agency — 1. Authorize acceptance of the deed by the Redevelopment Agency. REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION MEETING DATE: May 5, 2003 DEPARTMENT ID NUMBER: ED 03-09 Alternative Actions : 1. Retain the parcel for an unidentified possible future public use; or 2. Direct staff to utilize a broker to market the property for sale through the surplus property sales process. Analysis: In August of 1998, the City sold the Redevelopment Agency three parcels that were remnants from the Yorktown widening (Attachment 1). This sale was made after the City had attempted to sell these parcels through the surplus sales process and did not receive an acceptable bid. These three parcels were subsequently developed with single- family homes by Habitat for Humanity. It was anticipated at the time that the subject parcel, once acquired and the street work completed, would ultimately be sold to the Redevelopment Agency for a fourth Habitat for Humanity unit. With the street work competed, it is now timely for the City to dispose of the parcel at 2502 Delaware. Under the Surplus Real Property provisions of the City's Municipal Code, sales, conveyances, and leases to the Redevelopment Agency are exempt from the surplus property procedures. In addition, Section 33220 of the State Health & Safety Code provides that a City may sell property to a redevelopment agency, upon the terms and with or without consideration as it determines. The parcels fair market value of $125,000 has been established in an Opinion As to Value obtained by the Real Estate Services Division in February 2003 (Attachment 2). In recognition of the transaction costs and sales commission avoided through a sale to the Redevelopment Agency, together with the property being sold for a deed restricted affordable housing d evelopment, t he R edevelopment Agency will b e p aying $ 112,500 for t he parcel. This represents the fair market value less 10%, the same terms under which the Redevelopment acquired the three previous parcels. The Redevelopment Agency's payment of $112,500 will be credited to the Measure M account, the original source for the acquisition of the property. Environmental Status: Not applicable. Attachment(s): City Clerk's Page Number . Description 1. Map of Parcel. 2. Opinion as to Value. 3. Grant Deed. u RCA Author: D. Biggs, ext. 5909 G:\David\RCAS\2502 Delaware.doc -2- 4/21/2003 2:09 PM Parcel Map ATTA-C�H:�M�-IEI�N.T . #-1 . TABLE OF DIMENSIONS EXHIBIT HI p � � �� p L1=SOUTH, 30.00' L X DD D L2=NORTH, 3.01' o A=89°59'00", R=27.00', LA=42.40' 0 04 00 Y cn r-� 0 1 I w I v 'n . , Im m Ln co Of �i __.. _. _._ _.�. _ NSCALE: 1"=40' cr- w I0 Lo o _~ ° l f ? nf \ I m� I wm O Y m o O V) N U)w LLI I— w rO-00' S89'59'00"E, 144.95' p I— L2 - - - - - - - - - - — — — — z (n I- 4,R192.16 S.F. IQ: 0=PRIVATE ROADWAY U) W 10.50 I ,L1 EASEMENT PER BOOK r-30.00 N8 Q I 9'59 0.096 ACRES - - � 6145/PAGE 777 O.R. I Z 117.96' �'00"W, I 50 Q Q � .00 J SOUTH BOUNDARY BLOCK 2505CD 0 S/W CORNER S/W CORNER, EAST W Y f BLOCK 2505 50.00' 1/2, BLOCK 2505 (EASEMENT POB) 3000 (N89'59'00"W PER PM 53/18) "IL YO R K TO WN AVE BASIS OF BEARINGS PORTION OF BLOCK 2505, EAST SIDE VILLA TRACT APN# 025- 1 1 1 -40 CITY OF HUNTINGTON BEACH DEPARTMENT OF PUBLIC WORKS M: DRAWINGS SURVEY REAL ESTATE EXHIBITS AP 025 111 40.DWG Opinion ATTACHMENT #2 03/20/2003 16: 38 714-374-1743 HUMAN RESOURCES PAGE 02 .4 +� City of Huntington Beach INTER-DEPARTMENT COMMMUNICATION HUNTINGTON BEACH TO: David C. Biggs, Director of Economic Development FROM: Amy Bodek, Real Estate Services Manager DATE: February 14, 2003 SUBJECT: 2502 Delaware Avenue— Potential Surplus Property As you may know, the Public Works Department acquired 2502 Delaware (see attached map) as part of the Yorktown improvement project. The parcel was originally 50' in width; its southerly 20' is now part of Yorktown Avenue. I understand that the Redevelopment Agency is interested in the potential acquisition of this property for use by Habitat for Humanity. The Public Works Department needs to sell the property for Fair Market Value in order to deposit the sale proceeds back into the Measure M account, which was the original source of funds for its acquisition. Lee & Associates has provided a letter of opinion as to the property's value, which was based on discussions the broker had with several residential developers. Please let me know if the Agency is interested in pursuing the acquisition of this property at the Fair Market price. Pease contact me at extension 5445 if you have any questions. Thank you. c: Dave Webb, City Engineer MAR-20-2003 16:40 714 374 1743 99x P.02 03/20/2003 16: 38 714-374-1743 HUMAN RESOURCES PAGE 03 2JI3120034:1024 PM 2620 26X 7 2615 ....... .... 2616 2625 2614 2613 26, --------- ---- t1609 2612 9- I2609 26 2606 2911 16 .. C 2608 ___.o 2605 2603 1 2606 : --- 'L— t_;KCL3_ .................... 2604 2605 2605 2604 ------------------------- 2525 2520 I 253.9 2522 2521 .......... ...... 2517 2518 2515 .. .. 2310 2S17 2516 2511 ..................... I3131 2313 315J, 2509 2512 I 2511 3171 4117 2506 .. .............. .319 2507 2505 2502 2501 501 ................................. .........---,........... Yorktown Ave. 602 620 ----------2420 2419 j - W %0 C3. TA 2420 2415 in 2 2416 409 ........... 2405 2412 2411 2404 1 1 - 2410 2407 .................... 2322 i 2323 2402 2409 I 2403 ........... ............ ............. -4 2319 2307 rl 2320 2324 2318 tm r 2321 2316 UJ N W E s City of Huntington Beach Scale: I"= 145' MAR-20-2003 16:40 714 374 1743 99% P.03 03/20/2003 16: 38 714-374-1743 HUMAN RESOURCES PAGE 04 Lee & Associates® COMNII-RCIAL REAL ESTATE SERVICES February 4, 2003 Ms. Amy Bodek City of Huntington Beach-Real Estate Services 2000 Main St. P.O. Box 190 Huntington Beach, CA 92648 RE: 2502 Delaware, Huntington Beach Dear Amy: Based on research I have completed, the value for the subject property today is approximately $125,000.00. Please call me if you have any further questions. Sincerely, LEE & ASSOCIATES-NEWPORT BEACH,INC. G Curt Stalder Senior Vice President Direct Line: 949-724-4751 Lee &Associates- Newport Beach.Inc. A Member of the Lee & AssoCiotes Group of Componles 3991 MacArthur Boulevoro:suite 100/ Newport Beach.colitornlo 92660 / Office: 949/724.1000 / fox: 949/862-9048 MAR-20-2003 16:41 714 374 1743 99% P.04 Grant Deed AT H� , M