Loading...
HomeMy WebLinkAboutH-2a - Proposed Land Purchase Agreement for the Sale of the City-Owned Property on Bay Avenues MAR 13 1978 CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER By th• CITY COUNCIL COUNCIL AGENDA No. H-2(a) CITY OF NNWP lr MACH March 13, 1978 TO: MAYOR AND CITY COUNCIL FROM: City Manager PROPOSED LAND PURCHASE AGREEMENT FOR THE SALE OF SUBJECT: THE CITY -OWNED PROPERTY ON BAY AVENUE Background On January 23, 1978, the City Council reviewed a staff report concerning an appraisal which had been conducted on the City -owned property on Bay Avenue (Attachment 1). This property has been under lease to the adjoin- ing property owners Mrs. Josephine Fulton and Mr. and Mrs. Charles H. Straub, who had indicated an interest in purchasing their respective leased portions. In the appraisal report received by the Council, fair market value for the 2,200 square foot parcel was established at $105,000. It was indicated at the time that the lessees had both accepted the appraisal results and had agreed to purchase the property based on that figure. Staff was directed to negotiate the sale of the property to the current lessees on the basis of its fair market value as established by the appraisal. Staff was further put on notice to include in the proposed land purchase agreement, a provision which responded to the Council's concern over density in the area. Proposed Land Purchase Agreement Attached to this staff report is a proposed land purchase agreement for the Bay Avenue property. The most substantive portions of the agreement are as follows: 1. The provision that the fair market value of the property has been established at $105,000, and that the lessees agree to pay proportionate shares thereof; 2. the provision that the cost for the required survey and resubdivision shall be borne by the City and the lessees as follows: City - 50%, Fulton - 25%, Straubs - 25%; 3. the provision that the purchase price is due and payable in cash within 30 days of parcel map recordation; 4. the provision that following resubdivision there shall be no more than two residential units constructed on the combined property at any time. Note: At present, each lessee maintains two residential dwelling units each upon their respectively owned parcels. Therefore, this provision would insure that density would not be increased. Furthermore, the Coastal Commission has indicated that their regulations would limit building on a site of the size to be created by the resubdivision to two residential units, even though City codes would potentially permit three. MAYOR AND CITY COUNCIL Proposed Land Purchase Agreement for the Subj: Sale of the City -Owned Property on Bay Ave. Page 2 - 3/13/78 Acceptance By the Lessees of the Terms of the Agreement Staff has forwarded copies of the proposed agreement to the lessees and has carried on discussions with them and their representatives concerning the content of the agreement. Both lessees have agreed verablly to the terms and conditions set forth. In a related matter, staff has determined that a survey of the property will cost $3,600. The lessees have likewise agreed verbally to their splitting the cost of this survey with the City in accordance with the proposed agreement. Recommendation It is recommended that Resolution No. , authorizing the Mayor to execute the proposed land purchase agreement for the Bay Avenue property, be approved by the Council. �'Aj ROBERT L. WYNN RLW:GJB:ib Attachments 0 1 k--'- c - iz Po "X If AV6 *,Cot/, LIi S 0 IA ,aciFIC CH Y 0 N..-- W \KINII-Y M N-F., B L: NC F -i ATTACHMENT 1 v 3 t \ I Coll risk . CNO —0$111 - ,ATTACHMENT 2 LAND PURCHASE AGREEMENT THIS AGREEMENT made this day of February, 1978, by and between the CITY OF NEWPORT BEACH, a chartered municipal corporation (hereinafter "CITY") and JOSEPHINE FULTON (hereinafter "FULTON") and CHARLES and PEARL STRAUB (herein- after "STRAUBS") RECITALS WHEREAS, City is the owner of a certain parcel of real property located on Bay Avenue between 18th and 19th Streets in the City of Newport Beach, more particularly described in the attached legal description marked Exhibit "A" and made a part herein by this reference; and WHEREAS, Fulton and Straubs have for some time and are currently each leasing a separate portion of said property from the City of Newport Beach; and WHEREAS, Fulton and Straubs both own in their own right separate parcels adjoining the City -owned parcel. Said Fulton and Straub property is more particularly described in the attached legal description marked Exhibit "B" and made a part herein by this reference; and WHEREAS, Fulton and Straubs have expressed an interest in purchasing their respective portions of the City -owned property under lease; and WHEREAS, the City Council has determined that it would be in the best interest of the City to sell the City -owned �l property to Fulton and Straubs and to that end has had the property appraised by a qualified appraiser; and WHEREAS, the appraisal report set an amount of One Hundred and Five Thousand Dollars ($105,000.00) as the fair market value for said property; and WHEREAS, Section 1402(c) of the Newport Beach City Charter authorizes the sale of this parcel; NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties hereto agree as follows: 1. Fulton and Straubs shall process a resubdivision and parcel map with City, combining their lots with that portion of the City lots under lease in order to form two separate parcels. It is understood that a field survey will be required for prepara- tion of the parcel map. 2. City agrees to be a party to the resubdivision. Any costs incurred as a result of processing said resubdivision shall be born as follows: City - 50% of costs Fulton - 250 of costs Straubs - 25% of costs 3. Upon completion of the resubdivision and recordation of the parcel map, City agrees to sell to Fulton and Straubs that portion of the City resubdivided property connecting their respective parcels. 4. The total purchase price for the sale of the City property shall be One Hundred and Five Thousand Dollars ($105,000.00) with Fulton and Straubs each paying a proportionate share thereof, depending upon a pro ratio of the area of the land purchased. MM 5. Said total purchase price is due and payable in cash to be deposited with the City Finance Director within thirty (30) days of the date of recordation of the parcel map. 6. Fulton and Straubs agree to record a restriction on their respective parcels following the resubdivision, agree- ing that there shall be no more than two (2) residential units constructed thereon at any time. Said restriction shall be set forth in the grant deed conveying the City property to Fulton and Straubs. IN WITNESS WHEREOF, the parties hereto have caused this Land Purchase Agreement to be executed the day and year first above written. CITY OF NEWPORT BEACH By ATTEST: City Clerk Mayor JOSEPHINE FULTON CH ES STRAUB - PEARL STRAUB APPROVED AS TO FORM: City Attorney DDO/bc 2/13/78 MAR 13 1978 By the QfY COUNCIL CITY OP M$WPMT arm RESOLUTION NO. 9288 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE LAND PURCHASE AGREEMENT FOR THE CITY -OWNED PROPERTY AT BAY AVENUE BETWEEN 18TH AND 19TH STREETS WHEREAS, there has been presented to the City Council of the City of Newport Beach a certain Land Purchase Agreement between the City of Newport Beach and Josephine Fulton and Charles and Pearl Straub in connection with the City -owned property at Bay Avenue between 18th and 19th Streets; and WHEREAS, the City Council has reviewed the terms and conditions of said Land Purchase Agreement and finds them to be satisfactory and that it would be in the best interest of the City to authorize the Mayor and City Clerk to execute said agreement; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach that said agreement above described is approved, and the Mayor and City Clerk are hereby authorized and directed to execute the same on behalf of the City of Newport Beach. ADOPTED this 13th day of Mayor ATTEST: City Clerk March , 1978. DDO/bc 3/8/78