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Home My WebLink AboutF-2 - Apprisal of the City-Owned Property on Bay Avenue Between 18th and 19th6 i J A N 23 1978 CITY OF NEWPORT BEACH By ** CITY COUNCIL OFFICE OF THE CITY MANAGER CITY op "Now MO. January 23, 1978 TO: MAYOR AND CITY COUNCIL FROM: City Manager APPRAISAL OF THE CITY -OWNED PROPERTY ON SUBJECT: BAY AVENUE BETWEEN 18TH AND 19TH Background and Purpose COUNCIL AGENDA No. F-2 The City of Newport Beach owns a parcel of land measuring 50' by 50' and containing approximately 2,200 sq. ft., which is located on Bay Avenue between 18th and 19th (Attachment 1). The City has been leasing a portion of this property to Mrs. Josephine Fulton since May 1, 1953, and a portion to Mr. and Mrs. Charles H. Straub since September 23, 1964, at the rate of $12.50 per month, each (Attachments 2 and 3). Both of the lessees own the property which adjoins the City -owned parcel, and according to a survey conducted on June 17, 1977, two primary encroachments are shown to exist on the leased parcels (Attachment 4). Both lessees have indicated an interest in purchasing their respective leased parcels, and the City Council, on September 12, 1977, directed that the property be appraised and negotiated for sale to the lessees on the basis of its fair market value. It should be noted that in the opinion of the City Attorney, as expressed in Attachment 5, the City is under no obligation to sell the property to the highest bidder. The only requirement in this regard, is that the City obtain fair market value as the result of the sale. The law requires that the State and County be notified of a city's intention to dispose of surplus property and be offered an opportunity to purchase the property for park and recreation purposes. The City notified the appropriate agencies concerning the Bay Avenue property and it was indicated that no interest existed in this regard. On October 5, 1977, the City authorized Richard A. Fuller, M.A.I. to conduct an appraisal of the subject property pursuant to Council direction. The purpose of this staff report is to inform the Council of the appraisal results, and other pertinent information relating to the status and disposition of the property. Appraisal Results In an appraisal report received in the City Manager's Office on January 7, 1978, the fair market value of the subject property, as of December 27, 1977, has been established at $105,000. Copies of the appraisal document are avail- able in the City Manager's Office for review. MAYOR AND CITY COUNCIL Appraisal Update on City -owned Subj: Property - Bet. 18th & 19th Bay Ave. Page 2 - 1/23/78 Notification of Lessees Pursuant to Council direction, staff has notified the current lessees of the appraisal results to determine their willingness to purchase their respective leased portions on the basis of the property's established fair market value. Both lessees have indicated that they are still interested in completing this transaction (Attachments 6 and 7). Inquiries Regarding the Property During the period since the Council ordered the appraisal, the City has received a number of inquiries and expressions of interest regarding the final disposition of the property. Staff has notified those expressing such interest of the date and time of the meeting at which the Council would be discussing the appraisal results so that they may offer their input. Summary of Available Alternatives In light of the appraisal results, the following alternatives remain available to the Council with regard to the disposition of the Bay Avenue property: 1. Continue with the resubdivision and sale of the property to the current lessees on the basis of its fair market value. This would result in a sale price of approximately $52,500 for each leased portion. 2. Take appropriate action to provide for the sale of the property on the open market to the highest responsible bidder. 3. Lease the property to the current lessees on the basis of its fair market value. Current market trends indicate that 8% of the property's fair market value, or $8,400 per year ($700 per month) would be a realistic and reasonable lease figure. This would compute to $4,200 per year and $350 per month for each lessee. 4. Offer the property for lease on the open market based on its fair market value. ROBERT L. WYNN RLW:GJB:ib Attachments It I \ too I�� Q) D �.w.s.. i• lo 1 pAC! F)G ATTACHMENT 1 �� 16 � � f''' t . Yt• �� 1C a r _ � �i `V PQ r CITY OF NEWPORT BEACH M CINITY / NP ATTACHMENT 2 w- BAY AVENUE V I EEEEE PEACE r, SULLN NN ' LENSE VILELLE PLNCE ATTACHMENT 3 41 A VE. CURB tuN6 f � •:I GARAGE J E'•��I 57RAU8 � LE Ash' 1 17T' 7-TTr�7 V � • 1, ' ATTACHMENT 5 JJ BE OFFICE OF THE CITY ATTORNEY 101 September 16, 1977 Miss Sue L. Picker 1132 West Bay Avenue Newport Beach, California 92660 Dear Miss Ficker: This is in response to your letter of September 13, 1977, regarding the City-o°7ned property located on the south side of Bay Avenue between 18th and 19th Streets. I have taken the liberty of copying Bobby Lovell, as she has raised certain questions concerning the subject property also. At a general municipal election held on April 14, 1964, the voters approved of the sale of the Bay Avenue property by adding Section 1/402 (c) to the City Charter. This constitutes the City's.authority to sell the property. At the present time, the City Manager's Office is arranging to have the property appraised. Pursuant to state law, we are giving the State Resources Agency and the County Parks and Recreation Department notice of our intent to sell the property and offering it to them for park, recreation, or open space purposes. If the State or County decide not to purchase the property, we will either offer it to the existing lessees or sell it on the open market. Our research of the law indicates no requirerient- that the City Insist sell the property to the highest_ bidder. `.['he only r_ Es c t: -l.c f:7.0I1 would be that -the City r. ecea.ve full market value At tlI_i_:; time, the Council has :instructed the st--af:f: to I7egot_iate Wl%1l -Lhe lessee s. `These ne�JO -:LFtt LOnS OaI"1nCYl_ "l_ahC' p1.10E' llntll after we receivo the ap-raisal r.eporL and rc: sq-)on c� frol-.i the N(-.t1)mt );W,wh, i',clilc>;ni`�(i(i ; 15, Miss Sue L. Ficker Page Two September 16, 1977 State and County. Should it be determined at some later elate that it would be more appropriate to offer the property on the open market, then the staff will bring the matter back to the Council for further direction. Very truly yours, / DENNIS D. O'NEII, City Attorney DDO/.tic cc: Bobby Lovell q TTACHMENT 6 Charles F Strpub 10424 70—pres Prig*e lbntclpir Crlif. 9170 City of Nermort Reach City I?pll I`:envort Roulevp& ,Vn—nor` H- ,nch, Calif. 00 =ham. it V-v Concern; 1pnu^ry 10, 1978 11107 10- Of Am npr our connprs" ion on the tpl-enhonr ron- crrnin„ tbp city o.,.nE>:' nrnn,rt••, t. 1RI91 n-y 7P, Yes, ♦T Prp interppt`? in nure "pFing oiar h•-1- oT 4bp nro- erty loc-atee in front o` the nronerty ..,e now o-m. Pler-e noti"y us of the nrocp?urn. Th^nk You Phones ..... ront.ri-ir (710 W_9114 ;;e—nort 'leech 67F--072W," January 12, 1978 Mrs. Carlton J. Schroder Route 1, Box 246-A Corning California 96021 Newport Beach City Council Office of the City Manager 3300 Newport Boulevard Newport Beach California 92663 Reference: Council meeting, September 12, 1977 Dear Members: In accordance with the City Council's approval to allow the undersigned the right to purchase the abutting lot on Bay Avenue, I hereby accept the $52,500. appraisal and agree to buy the lot for same, payable in cash. Sincerely, OS' �NEUL7 By: NINA F. SCHRODER, Daughter Power of Attorney, In Fact COPIES SENT� 0 Mayor ManaeeG A:torn,Y `i p `;�! DirectOt r"j ;rnDev VW101' . I_. -_,.Der .�;�:�ncdmeta EZ Y JAN i ? �`;}'rr( OF ok CALIF. L