Loading...
HomeMy WebLinkAbout18 - Sale of Property at 412 Carnation AvenueCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 18 August 11, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Public Works Department Rodi Almendralo, Associate Civil Engineer 949 -644 -3334, ralmendralo @newportbeachca.gov SUBJECT: SALE OF CITY -OWNED PROPERTY IN FRONT OF 412 CARNATION AVENUE RECOMMENDATION: Approve the sale of City -owned property in front of 412 Carnation Avenue to Mr. Kurt Christiansen for $7,900 and authorize the Mayor and City Clerk to execute a grant deed transferring the property to Mr. Christiansen when conditions have been met. DISCUSSION: Mr. Kurt Christiansen, property owner of 412 Carnation Avenue, approached the City about purchasing City-owned property on the easterly side of Carnation Avenue in front of his property. The City acquired the property in 1929 as a result of a vacation of street right -of -way. The 1904 Corona Del Mar Tract Map, that dedicated streets to the City, showed that Carnation Avenue would be a straight street from Coast Highway to Bayside Drive. When the street was actually constructed, the slopes in the area forced the street to be curved into the Begonia Park area, leaving the remaining right -of -way as surplus. Per State Streets and Highways Code for right -of -way vacation, 50% of the vacated right -of- way goes to the respective adjacent property owners. The westerly 25 -feet of the vacated portion of Carnation Avenue went to the City-owned Begonia Park which retained the slope, portion of the vacated easement. The easterly 25 -feet of the vacated portion of Carnation Avenue went to the adjoining property owners. The City -owned parcel between Mr. Christiansen's property and the Carnation Avenue right -of -way contains a total of 1,009 square feet, which is all slope area. The parcel is not a buildable lot, and its only value is to the adjacent property owner, Mr. Christiansen. The parcel is currently landscaped and is used by Mr. Christiansen as yard area. Mr. Christiansen has obtained an Encroachment Agreement in 1997 to install private non - standard improvements on this parcel. These improvements consist SALE OF CITY -OWNED PROPERTY IN FRONT OF 412 CARNATION AVENUE August 11, 2009 Page 2 of an entrance stairway /walkway, a 3 -foot high retaining wall, raised concrete block planter walls, landscaping and irrigation. Mr. Christopher Speare, State Licensed Real Estate Appraiser, was retained by the City to appraise the property and he determined the market value to be $7,900. Since the property has no other potential buyers because of its size and location, and the slope represents some potential liability to the City, staff agreed to recommend a purchase price of $7,900 to the City Council. A former City -owned parcel with a size of 8,181 square feet located south of this parcel was sold in 1998 to the adjacent property owner for $48,000. The property owner constructed a retaining wall and sidewalk on the Carnation Avenue right -of -way reducing the price paid for the parcel to $31,000. Staff also recommends that the following deed restrictions and conditions be included as part of the property sale: 1. That the existing non - standard private improvements permitted through an Encroachment Agreement in 1997 be allowed to remain in place and will continue to be owned and maintained by the buyer. No habitable structures shall be constructed on the parcel. 2. That square footage of this parcel cannot be used to increase the buildable area allowed on the adjacent parcel. 3. That the City makes no guarantees or warrantee related to the stability of the slope on the parcel. 4. That the buyer pay all costs including escrow and title fees, related to the property transfer. Environmental Review Pursuant to Section 15312, Surplus Government Property Sales — Class 12 of CEQA Guidelines, the sale of surplus City -owned property is categorically exempt from environmental review. Submitted by: Submitted by: Rodi Almendralo Associate Civil Engineer Attachments: Real Estate Existing Site Plan of Parcel CHRISTOPHER SPEARE REAL ESTATE APPRAISER Fie No. 412CARNATION -LANE APPRAISAL OF Cog ABANDONED LAND LOCATED AT: A VACANT PARCEL ADJOINING TO 412 CARNATION NEWPORT BEACH, CA 92625 CLIENT: KURT CHRISTIANSEN 412 CARNATION AVE. NEWPORT BEACH, CA 92625 AS OF: APRIL 30, 2009 BY: CHRISTOPHER SPEARE AR001953 32 AVENIDA FORTUNA, SAN CLEMENTE. CA. 92673 I CM: NEWPORT BEACH Slate: CA Zlp: 92525 1 Executive Summary Client Mr. Kurt Christiansen Property Identification: An abandoned parcel immediately west of the condominium project located at 412 Carnation Ave. Newport Beach, CA. Owner: City of Newport Beach Assessor's Parcel #: Not assigned. Effective Valuation Date: April 30, 2009 Purpose: The purpose of this appraisal is to estimate the current Single -User Value of the subject property as of the effective dale of valuation with the hypothetical assumption that the subject will be encumbered with certain deed restrictions. Intended Use: The intended use of the report pertains to the sale of the subject parcel to Mr. Kurt Christiansen. This report is intended as assistance in the negotiations for the sale. It is not for lending purposes. Type of Value determined A hypothetical Single -User Value. Property Overview: An abandoned vacant parcel situated immediately west of the condominium project at 412 Carnation Ave, Newport Beach, CA. The parcel makes up the lower 30 ft of APN: 459 - 114 -25. The parcel extends westward approximately 28.50 ft from the northern lot line of APN: 459 - 114 -23 to the curb of Carnation Avenue, and westward approximately 38.75 ft. from the southern lot line of the above APN. The parcel has a gentle upstape from Camation Avenue. Single -User Value Conclusion: $7,900 As of April 30, 2009. Comments The above estimated value takes into consideration several deed restrictions relating to the use of the parcel. These restrictions make the property have the most value to the ownership of the 2 Condo units at 412 Carnation Ave., and little value to anyone else. The value determined is a hypothetical value "as if" certain deed restrictions were in place. Scope of Work: This report is prepared in a summary format. The subject property was inspected on April 30, 2009. Information on the subject was researched in public records and the kcal MIS. A search was made for other small abandoned parcels, to determine a market -based discount factor, and this formed the basis for the analysis of value. Subject's Sales History: The subject has not sold or transferred in the last 10 years. PtmMm P� 1 d♦ Neighborhood Description sue.: The subject property is located in the incorporated city of Newport Beach, in the western portion of Orange County. The city is bound to the south by the Pacific Ocean. Employment centers, shopping, public transportation, municipal services, cultural amenities and recreational attractions are in convenient proximity, or accessible via the extensive regional freeway system. "Corona Del Mar: The subject property is located in the neighborhood just east of Avocado Avenue and south of Coast Highway. The area is a mix of mostly single family residences, some commercial uses, and a few condo projects. The overall area does experience some tourist traffic and congestion mostly in the summer. The commercial uses in the area are concentrated primarily along Coast Highway [1). The residential properties range in age from new custom homes to older cottages built during the 1920's. There is an ongoing trend to remodel and update the older homes, or demolish them to construct new, good to excellent quality, custom single family residences. Residential properties range from average to excellent quality homes reflecting average to excellent condition. Site Comments: The subject site is approximately 1,009 sf in size and is rectangular in shape. There is a gentle upslope from the Carnation Avenue street curb to the eastern lot line. It is sided by Carnation Avenue to the west and by a 2 -unit condominium project on the east. Carnation Avenue is a public street which runs north and south. There is no driveway off of Carnation Avenue providing access to the subject site. There is a 3 ft. stuccoed retaining wall and a Concrete sidewalk that run alongside Carnation Avenue just inside the western border. The parcel is currently landscaped and is used by Mr. Christiansen as a yard area. No adverse easements or encroachments were apparent. Market Methodology The abandoned vacant parcel immediately south of the subject was sold by the City to Mr. Ed Foster (the adjacent property owner) in Feb. 1999 for $31,000. This sale was made under similar deed restrictions to those that are being applied to the subject, and is used to establish a discount factor that can be applied to the valuation of the subject. Ed Foster bought his parcel of 8,1,81 sf. from the City on Feb. 19, 1999 for $31,000. This sale reflects a $ /sf indicator of $3.79 psf. The subject is located in a neighborhood known as "Corona Del Mar South" (CDMS) and sales of propeNes situated within CDMS which occurred during the 6 months leading up to the Foster Feb. 19, 1999 sale date were researched in the local MLS. Sales were selected that were north of Bayside Drive and south of Coast Highway, this is the subject's immediate neighborhood. Prices were gently trending upward in the last half of 1998 and into 1999, and a time adjustment of +1.0% per month was applied to their date of sale up thru 02 -19 -1999. These sales had an average sale price was $626,610 and their average lot size was 3,493 sf. This results in an indicator of: Nghd sales (8 -20 -98 to 2- 19 -99) Avg Sale Price per SF. = $179.39 When compared to the Ed Foster sale ($3.79 psf), this indicates a discount factor of 97.9% due to the Single -User deed restricted parcel, However, Mr. Fosters parcel is more private as it is accessible only by himself. In the subject's case. the adjoining parcel is a 2 -unit condominium and the City has indicated that access across the subject parcel is to be available to both condo owners. This reduces the privacy of the subject parcel and a further discount factor is warranted. The appraiser has estimated a further discount of 0.5 %, resulting in a total discount factor of 98.4 %. sae,a P� 2ar 62625 The same sale parameters were then applied to sales in the subject's immediate neighborhood for the 6 months leading up to the current date of value, April 30, 2009. Again, sales were selected that were north of Bayside Drive and south of Coast Highway. Prices have been trending downward over this time period and a time adjustment was applied of -1.5% per month from the dale of sale up thru April 30, 2009. These sales had an average sale price was $1,677,015 and their average lot size was 3,417 St. This results in an indicator of: Nghd sales (10 -30-08 to 4- 29-09) Avg Sale Price per SF. = $490.78 Applying the discount factor of - 98.4 %, the associated Single -User indicator is ......... $7.65 psf. When this $7.85 psf indicator is applied to the Subject's lot size of 1,009 sf, the hypothetical deed restricted Stnale -User Value as of April 30, 2009 is estimated to be $7,920, rounded to: "' $7,900 " - " • • (As of April 30, 2009) MARKET DATA RECONCILIATION- There were few properties that were considered to be relevant to the subject. The prior sale to Mr. Ed Foster of the parcel immediately south of the subject was used to develop a market discount factor, relating to the difference between residential land that is able to be developed vs. abandoned deed - restricted land. Current neighborhood sales were researched and analysed on a $/sf of lot area basis. The average $/sf of the current sales was adjusted by the discount factor, and the discounted $fsf indicator was then applied to the subject's lot Sim to estimate a current Single -User Value for the subject. The Income approach to value and the Cost Approach to value were not considered relevant to the subject and were not developed. Subject's Use Restrictions Per Mr. Christiansen, no official deed restrictions have been formally agreed to between himself and the City, However, he Indicated that the following restrictions or similar ones should be assumed as to what he and the City will agree to: 1. That no habitable structures are to be constructed on the parcel. Landscape features such as fences, garden walls, and planters will be allowed. 2. The square footage of the Subject parcel can not be used to increase the buildable area allowed on the adjacent parcel. 3. That the City makes no guarantees related to the stability of the slope of the parcel. 4. That any hardscape on the parcel be awned and maintained by the purchaser of the property or his successors. 5. That the owner of the rear unit at 412 Carnation have access across the subject parcel. C. Spears Appraiser AR001953 05 -07 -2009 ldrH;y,Ia!r1J, ROrIn AWroo6'. A VACANT PARCEL ADJOINING TO 412 CARNATION Cam N Appraiser Certifications: 1. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting Conditions and are the appraiser's unbiased professional Conclusions. 2. The appraiser has no present or prospective interest in the property that is the subject of this report and has no personal interest with respect to the parties involved. 3. The appraiser has no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 4. The appraisers engagement in this assignment was not contingent upon developing or reporting predetermined results. 5. The appraiser's Compensation is not contingent upon the development of a predetermined value or direction in value that favors the Client. 8. The appraiser has made a personal inspection of the property that is the subject of this report. 7. No on provided significant real property appraisal assistance to the appraiser. 8. This is a Restricted Use Report for use only by the client and the City of Newport Beach, both of whom are familiar with the subject property. 9. This report is not for lending purposes. 10. This is a summary format with additional information maintained in the appraisers work file. smewoPap4d4 File NO 412CMNATION -LAN Scope of work, Assumptions and Limiting Conditions Scopeof work isdWiinedin fhe Uniform Samdards W Professional Appraisal Practiceas "lhatypeand uwmofreseetch end analyses inan assignment' to short. scope of work is simply what the appraisei did and did not do during the courseof the assignment. Il irclutles, but is not limitedto: Meexfemtowhichthepropeyisiden tifiedandinspected the type and extent ofdata researched thelypeandexam ofanalysesapplied ro attire al op'hniore a torch unions. The scopeof Ulisappraisal and ensualgldiscussion in this Mean are specifcto theneedeof dleclienf, other identified incenced users and to the Intendeduseoftherepert. This report Was prepared for she sole and exclusive useof the clientam other identified intended users Who identified intended useand itsusebyany other parties is prohibited. Theappraiser is net responsible forunauthoriaed used the report. Theappmierscertific ationappuringin thisappaisffimponis SubjeatiothefollO iNcondilionsand WsuchMhNSPKiftCCOndiliWSasare SeV faUh by naappaiser inlherepart. Allexnaordiaryassumptions and hypothetical conditions aresated in the report and mighthaveaffecto d the designmenlresNtS. t. Theappaisaaswnres mnesp rsbifdyld enters at a legal nature affeclilg the prapeny apprased Or idle 1Aerew. na does the appraiser bander any apiece as to IM We. which is assametl tohegood and marketaN¢. ThegopenyisapMr WasdaughunderrespnrUeownership. 2. My skddhinNisrepon maysinw approamae dimemimsant ¢ irdutl¢tl mlyto assiv Nereada in wwalizing 0e popery. Tie appasa has made m survey dNe property. 3. The appmisaisrolrequimdm gve Iesda any or appear in coudbeczuse of having made the appraisal with reference N the property in gaesbal, UrIass aaanya bees have been prewwslymade eea. a. Nedaral,roranypmcg Ne commol" srepwLcopyaamamedlatwred (mlWingca uswsaswthepmpertywaWe, Neidemlyol Neapprasa.pfdessbndde gnatoha, at the fee with AM tie appraiser N cartl stag be used to any purposes by anyone but the client and aher intended users as identified in Its report nor shall t be cotweyed by anyone an de public through advenidhg, puhlicrdadans. news. sales, an Other media. WfIrw ft %raw<onwa of to app asa. 5. The appraiser wil act dsdow the cannabis of Ns appraisal report unless required by applicable law or as spacifed in the Uniform Stardards of Pmfessiond Appraisal Pamuce. 6. Irtamadm,eatlmelea, ardupnions funishedto Ne appraiser. and conUned in the wpm were obtained haw sources crosidaW rehabte and believed to be We and cane. Nowmf. mrespamblhy la atenacyof such tams luthlished N Ne appasa is assumed by Ne appraiser. T. The appaiseraswmes tatthere are m hiMet a ohappahea conNtms dtte property. sdudt a sUucWres. whidhwmld rends tmx¢ ales valuable. The appraser essanes m respasibilhy lawUwntlidan, a fa0lglreedrg a lesfrlg, wfikh migltl W requtrro N tlsceref such laCWa. Th'a appaisal is nor an erniraunaval assessmenlof Ne Property aM sMdd rot be mhsdnetl as sucM1 B. TKS appasalrepM sMdd not be usW NdisUOSe NemtWiton a(Neproperty as h relMes a tw presence/abwme d tldxts. The cliem is hwted ant emoumgM N empty gwhfied ekpalaN inspect antl atldressareas demon. Ifmgawwe conditions are dscwered, the opinion of yAe maybe affedea 9. Atpraisels iwh ypaJadcal<m6dahaedatedW complelionof tsex[ arsthucdon, repaksaaka a9on arebasedon Neassumptim NN. wdh mmpletion, altehakonarepaes'agl W rempetenNy pNamearmatl. Additional Comments Related To Scope Of Work. Assumptions and Limiting Conditions rarNMr,. File Na. 412CARMATI0N -LAK Apprai ser'S Certification The appraiser(s)cendIms thattothe Destofthe appraisers knowledge and beliek 1. Thestatemervsoihf Canmiddmtlti5 repot areweantl mrteG. 2. the mponed aralyses options. and ardusdns are looped a* by Ue rammed assumptions and loading OvIdons and ereme appraisers pmsomt impartial, and undased professional analyses apiniam, and confusions. 3. UHessaNtlnise stated, it* apiamserhaIsm preXnat plospectmeinetesth the PWerly that is Be, whlef of INS raped and has no pewmi interest wail respell to he paNM yoked. 4. Theoplvaiserhas mbgswidttespearadv: Papery tho is the sGlefm tpisrap°f a to the games hlYaked aah "s assignment. S. The appfeisefnengagmtem in tHsassigtmeplwes micondngab upon developing ar repaalrg pfedclemimd iewas. 6. me appaisev s woBx xsadm la compkln Nis assignwa is oat mnlirgM upon the devemprearA or reporting of a laedelermbmtl value or directionh value that favors ft ause of He caem. the amount of ft value apron. the aaalnmed of a slpulamd mW1. a he ocamence of a sue,,ame even) directly related N the weeded use of this appmkai T. The gJrmsers amtyses. op'vlas. and caAUSiam was developed, and this repro has bens prepared, h conformity md, ft Unfam SWMards of Professional Appraisal Rectum. B. Uriess allorwise noted. da appraiser has made a pamul mspedion dthe Papery Nm is the sutjert of this mint. 9. Wass Based! Waw,marm pmided sigiificanl real Property appraisal eaeoutme to the appraiser signing His cemlixalon. Sigifieent mat Popery appraisal assistance provided Dy: Additional CirliNCaUOns: Definitionofvafue: QWFWValae ©OthwVatae: Single -User Value Soumeoi Oe.6.m Use Value: Use value is the value a specific property has for a Soeoific use. AUDRESSOF THE PROPERTY APPRAISED: A VACANT PARCEL ADJOINING T0412 CARNATION NEWPORT BEACH. CA 92625 EFFECTIVE DATE OF THE APPRAISAL APRIL 30, 2009 APPRAISEO VALUE OF THE SUBJECT PROPERTY It 7.900 APPPNSER SUPERVISORY APPRAISER / //•� Silmwre: l i . �,s �a A/L/�IeIL/�� SigwWte: Name: CHRISTOPHE S RE Name: StateCmifxxtitna AR001953 Slate Cemficalma at Licence r a license e or ONO idesa@e): State h. CA. State: Slate: CA Erpwation Date ofCadreatian of Liconse: Espumbo Date wCefd5ca6onm License: 06 -28 -2010 Date of Signature: Oalem 59nemreaM Regan: 05107/2009 Dafaol Ampery Vleaing: Date of Property Vieeng: APRIL 30 2009 of property vewitg: Degree of property viewing: r^DDeetgree V Did pemamtly view QDid mlpmwmlly v¢w QX Ud pmsan6ly view ©Lied not Perwmliy dery /^ /u{,•,�{/pu��/.pp�� �! nmwm ayaa a..eem.xvmn......ro.m.. m. mm< wMf'awsmwu,eeua.»a..es.aps..m. wam:xa..w. v.gexaE Nvnmlfcma PUnmea MwP� °iiw�8ry Jas•- ..- ••r- ...... -.. .,.. Laser Faros SUBJECT PROPERTY PHOTOADDENDUM FRONT VIEW OF SUBJECT PROPERTY Appraised Date: APRIL 30, 2009 REAR VIEW OF SUBJECTPROPERTY STREETSCENE v 3 D 10 0 CARNAT /pay z y 30TH AVE. Ma� A` M T TO A � oS• � ISO, b z i ' t ��msmD CO O`m W _ N ALLEY a V to W rn DAHL I A n •A. 1M • f tl • `. v 3 D LOCATION MAP P apa b/ Lp ftm949-0924M