HomeMy WebLinkAboutStaff Report 212-06City of Palo Alto
City Manager’s Report
TO:
FROM:
HONORABLE CITY COUNCIL
CITY MANAGER
9
DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:JUNE 5, 2006 CMR: 212:06
SUBJECT:REQUEST FOR BID PROPOSALS FOR SALE
PROPERTY LOCATED AT 2460 HIGH STREET
RECOMMENDATION
OF CITY-OWNED
Staff recommends that Council approve the attached Request for Bid Proposals (RFBP) for the
sale of the City-owned property located at 2460 High Street and direct staff to solicit proposals
for sale of the site.
BACKGROUND
On September 19, 2005, the Council approved the February 15, 2005 Finance Committee
recommendation (CMR 149:05, CMR 366:05) to:
1)Declare a portion of a City-owned parcel located on High Street near Oregon Expressway
to be surplus property; ~
2)Direct staff to process an application to change the zoning from Public Facility (PF) to
Two Unit Multiple Family District (RMD); and
3) Return to Council for approval of the Request for Bid Proposal (RFBP) to dispose of the
property using an open bid procedure in accordance with the City policy for sale of
surplus property;, and to use the funds from the sale of the High Street property for
proposed redevelopment of the Alma Substation property for affordable housing.
On February 8, 2006, the Planning and Transportation Commission recommended that Council
adopt the City-initiated rezoning of 2460 High Street from PF to RMD. On March 21, 2006,
Council adopted an ordinance amending the Zoning Map of the City of Palo Alto to change the
designation of a portion of 2460 High Street ~esignated Surplus Property) from PF to RMD
(CMR: 172:06).
DISCUSSION
The 5,413 square foot City-owned parcel is located at 2460 High Street adjacent to the Alma
Street-to-Oregon Expressway on-ramp, and is a remnant of land left from the development of the
Oregon!Alma Street interchange. The parcel is currently vacant; it has landscaping and is
irregular in shape. The property is bounded by multiple family residential uses. Under the RMD
CMR:212:06 Page 1 of 3
zoning, either one or two units would be permitted, provided that if two units are developed, both
are under the same ownership.
The City’s policy for selling its surplus property involves a public bid process to assure the
highest return. The first step in the process, once the Real Estate Division has identified potential
surplus property, is to notify City departments and public agencies to determine if any have need
for the property. Staff then forwards this information to the Council with a recommendation to
declare the real property surplus, transfer control of the property to one or more other City
departments, or negotiate an agreement with a public agency having need of the property.
Following Council declaration of the property as surplus, staff appraises the property to
determine a minimum bid, determines a bid opening date and returns to Council for approval of a
Request for Bid Proposal (RFBP). Upon approval of the RFBP, staff advertises the offering
including the minimum bid and bid opening date. Staff then forwards the results of the bidding
to the Council with a recommendation regarding award of bid. The City Council may reject any
or all bids and accept that bid which will, in its opinion, best serve the public interest.
The attached RFBP consists of an information flyer and Proposal Package. The information flyer
announces the offering and provides information on the location, size and zoning of the site; the
date proposals are due (July 25, 2006); the minimum bid price; and instructions on how to obtain
and submit the bid package. The bid package contains detailed information on submitting the bid
and the Offer and Agreement to Purchase. Major terms of the RFBP are:
1.Minimum bid of $450,000.
2.Sealed written bids, accompanied by a good faith deposit in the amount of $45,000, will
be accepted until 3:00 p.m. on July 25, 2006. Following opening of the written bids, oral
bids will be accepted, beginning at 5 percent above the highest written bid. Only those
submitting written bids will be allowed to participate in the oral bidding.
3. Within seven days following notification from the City that a bidder was the qualified
high bidder, the bidder is to pay the City the difference between the $45,000 good faith
deposit and 20 percent of the total bid amount.
4. Following acceptance of the bid by the City Council, escrow is to be opened, and the
buyer is to pay the balance of the purchase price, with escrow closing within 90 days
thereafter.
5. Buyer is to pay all title and escrow costs.
Following Council approval, the RFBP will be advertised in local newspapers, and the
information flyer will be sent to persons on the Real Estate Division Surplus Property Mailing
List, and others likely to be interested in the offering.
RESOURCE IMPACT
The minimum bid is set at $450,000. Oral bids will begin at 5 percent above the highest written
bid received. Proceeds from the sale will be deposited in the Residential Housing Fund to be
used to offset the costs of the development of the Alma Street Substation site for affordable
housing.
CMR:212:06 Page 2 of 3
POLICY IMPLICATIONS
Approval of the RFBP is in accordance with the City Manager’s Policies and Procedures for Sale
of Surplus Property.
ENVIRONMENTAL REVIEW
Authorization of the sale of City property is Categorically Exempt under provision 15305, Minor
Alterations in Land Use Limitation, of the California Environmental Quality Act Guidelines.
PREPARED BY:
WILLIAM W. FELLMAN
Manager, Real Property
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
Assistant City Manager
ATTACHMENTS
Attachment A: Request for Bid Proposals Package
Attachment B: Information Flyer
CMR:212:06 Page 3 of 3
ATTACHMENT A
PROPOSAL PACKAGE 2460 HIGH STREET
PROPOSAL PACKAGE
Surplus Property- 2460 Hi,qh Street
PROPOSAL REQUIREMENTS & PROCEDURES
In order to submit a proposal you must:
Complete the attached Offer and Agreement to Purchase Real Property, including your bid
amount, requested title vesting, and your signature.
Attach a $45,000 proposal deposit in the form of a Cashier’s or Certified check made payable to:
The City of Palo Alto.
Place the above into the Bid Envelope provided and seal it.
Deliver the sealed Bid Envelope to:
Manager, Purchasing & Contract Administration
City of Palo Alto
250 Hamilton Avenue - Mezzanine Floor
Palo Alto, CA 94301
BID OPENING
Sealed bids will be opened on Tuesday, July 25, 2006 at 3:00 P.M. in the City Council Conference Room
at the above address. In order to be considered, your bid must be received prior to that time. No bids
will be accepted after 3:00 P.M. on July 25, 2006.
ORAL BIDS
Once all written bids have been opened, oral bids will be accepted beginning at 5% above the highest
written bid amount. In order to participate in the oral bidding, you must submit a written bid by the
deadline stated above. Only those who have submitted written bids will be allowed to participate in the
oral bidding.
MINIMUM BID
The minimum bid has been set at $450,000.
PROPOSALS TO BE UNCONDITIONAL
The terms and conditions of the sale are fixed except for the purchase price. The intent of this proposal
format is to allow the proposers to examine in detail all the terms and conditions of the offering. Since
the purchase price is the only variable item, the amount you are willing to bid for the purchase price
should reflect your reaction to the terms and conditions set forth in the Offer and Agreement to Purchase
Real Property. Any condition or qualification attached to a proposal will be sufficient cause for the
rejection of the proposal at the discretion of the City.
INFORMATION AND QUESTIONS
If you desire further information or have questions regarding this offering, write or call: Bill
Fellman/Manager, Real Property, City of Palo Alto, 250 Hamilton Avenue, Palo Alto, CA 94303, (650)
329-2472, bill.fellman@cityofpaloalto.org.
The City of Palo Alto will not pay a sales commission on this offering. The minimum bid is set to reflect
this. Any commission must be arranged between the Buyer and his or her broker or real estate
representative.
PARCEL NO: 132-17-081
PROJECT: 2460 High Street
OFFER AND AGREEMENT TO PURCHASE REAL PROPERTY
(Full Cash Payment)
SELLER:CITY OF PALO ALTO
BIDDER:
In consideration of SELLER’S proposal to sell the real property described and shown on the form of grant
deed labeled Exhibit A, attached hereto, by competitive bids to be received July 25, 2006, BIDDER
agrees to purchase said real property for the sum of:
(Amount in words)
(Amount in numbers)
and herewith, in accordance with subparagraph 7 below, gives SELLER a good faith deposit (Proposal
Deposit) in the amount of $45,000.
This bid is conditioned upon and made with the understanding that:
Upon notice from SELLER’S Real Estate Division that BIDDER is the qualified high bidder,
BIDDER shall within 7 days after said notice pay SELLER an additional sum equal to the
difference between the good faith deposit and 20% of the total amount bid. Should
BIDDER, for any reason whatsoever, fail to pay to SELLER said additional amount, said
good faith deposit shall be retained by SELLER as set forth in subparagraph 7 below. -
Within thirty (30) days after BIDDER has paid SELLER the additional sum referred to in
Paragraph 1 above, SELLER shall consider this bid and accept or reject it.
Should this bid be rejected by SELLER or should SELLER fail to accept or reject this bid
within the time period set forth in Paragraph 2 above, BIDDER may withdraw this bid and
all money paid to SELLER by BIDDER shall be refunded to BIDDER.
o If this bid be accepted by SELLER, said good faith deposit and the additional sum paid to
SELLER as provided in Paragraph 1 above shall constitute a portion of the agreed
purchase price paid to SELLER outside of escrow, with the balance to be paid through
escrow as set forth below.
If this bid is accepted by SELLER, SELLER’S Real Estate Division shall open an escrow
with North American Title Company, 497 North Santa Cruz Avenue, Los Gatos, CA, 95030.
o
o
The opening date of escrow shall be the date upon which the escrow holder named above
receives written authorization from SELLER’S Real Estate Division to open said escrow.
The balance of the purchase price shall be paid through escrow and the escrow period
shall run for a period of ninety (90) days from the opening date of escrow.
SELLER shall deliver to said escrow a Grant Deed in the form of Exhibit A and such other
documents as are required to transfer title subject only to those exceptions shown in the
attached Preliminary Report No.56901-54990528 PRT, dated June 11, 2004, labeled
Exhibit B and made a part hereof, and any reservations, covenants and conditions, if any,
set forth in the Grant Deed referred to above.
Prior to the date set for close of escrow, BIDDER shall deposit into escrow the difference
between the total purchase price and the total sum paid to SELLER outside of escrow.
The close of escrow may occur prior to the time period set forth above if it is mutually
desirable to SELLER’S Real Estate Division and BIDDER. However, said time periods
shall not be extended unless authorized in writing by SELLER’S Real Estate Division staff.
Close of escrow shall be the date that the documents are filed for recordation with the
County Recorder.
The good faith deposit and the additional sum referred to in Paragraph 1 above shall be in
the form of a cashier’s or certified check made payable to the City of Palo Alto. The good
faith deposit must be submitt.e.d together with this Agreement. Said good faith deposit shall
be held by the SELLER as a guarantee securing the obligations BIDDER agrees to
assume in this Agreement. BIDDER agrees that in the event that this Offer and Agreement
to Purchase Real Property is accepted by SELLER and BIDDER fails to meet the terms
hereof, said good faith deposit and the additional sum referred to in Paragraph I represent
a fair and reasonable estimate of SELLER’S costs in connection with this transaction, and
BIDDER further agrees that said sum shall be retained by SELLER as compensation for
said costs.
Title insurance on the subject property shall be supplied by North American Title Compa6y
at Buyer’s expense.
Title shall be vested as specified in Paragraph 10 below and shall be subject to the
exceptions shown in Preliminary Report No. 56901-54990528 PRT, and any reservations,
conditions or covenants, if any, set forth in the Grant Deed referred to in Paragraph 6
above.
If SELLER is unable to deliver title as specified herein prior to the date set for close of
escrow, BIDDER shall have the option to:
Accept title in the condition in which it exists. Acceptance of such title by BIDDER
shall constitute full satisfaction of the terms of this Agreement as they relate to title,
and SELLER shall in no way be liable for its failure to deliver title as set forth herein,
or
2
o
10.
11.
12.
13.
B.Terminate this Agreement by delivering written notice thereof to SELLER’S
REAL ESTATE DIVISION
250 Hamilton Avenue
PO Box 10250
Palo Alto, CA 94303
and to the escrow holder. Thereupon, all monies paid by BIDDER hereunder shall
be refunded to BIDDER, and SELLER and BIDDER shall be relieved of further
obligations to one another. In the event of termination as provided in this
subparagraph, all escrow and title fees incurred shall be paid by SELLER, and
BIDDER shall not be liable therefore.
Neither Subparagraph 8A nor 8B hereinabove shall apply if SELLER delivers better title
than that set out in Paragraph 6 above.
In addition to the amount specified in Paragraph 6 above, BIDDER shall deposit into
escrow a sum sufficient to pay the total cost of title insurance, escrow fees, Real Property
Transfer Tax, and all recording fees applicable to this transaction.
Title to the real property conveyed pursuant to this Agreement shall be vested in BIDDER
as set forth below. (Please type or print clearly. An example of one of the several ways
title may be vested is: John Doe and Jane Doe, husband and wife, as joint tenants.).
This Offer and Agreement to Purchase Real Property may be withdrawn at any time prior
to the time set for opening bids except as provided under Paragraph 3 above may not be
withdrawn after the time set for such opening.
SELLER reserves the right to reject any or all bids and to accept that bid which will, in its
opinion, best serve the public interest.
All documents, correspondence, and communications concerning this transaction shall be
directed as follows:
TO: BIDDER TO: SELLER
(Name)
(Address)
CITY OF PALO ALTO
c/o Real Estate Division
250 Hamilton Avenue
P.O. Box 10250
Palo Alto, CA 94303
Attn: Bill Fellman
Telephone:
Time is of the essence of this Agreement.
BIDDER accepts property "as is". SELLER has no responsibility for the existing condition
3
of the property.
BIDDER hereby submits this offer with full cognizance of the terms and conditions contained
herein.
SIGNATURE(S) OF BIDDER(S)
SELLER has considered and accepts this offer:
SELLER:
CITY OF PALO ALTO
By
MAYOR, CITY OF PALO ALTO
Date
ATTEST:
CITY CLERK
By
APPROVED AS TO FORM:
CITY ATTORNEY
By
RECOMMENDED FOR APPROVAL:
ASSISTANT CITY MANAGER
By
MANAGER, REAL PROPERTY
By
Exhibit A
Recorded at no charge in accordance
Government Code Section 6103
at the request of, and when record-
ed return to:
City of Palo Alto/Real Estate
250 Hamilton Avenue
PO Box 10250
Palo Alto, CA 94303
SPACE ABOVE THIS LINE FOR
RECORDER’S USE ONLY
A.P. No.:132-017-081
File No.: CF 11/3-05/26
Project: 2460 High Street
IGRANT DEEDl
FOR A VALUABLE CONSIDERATION, recelpt of which is hereby
acknowledged, THE CITY OF PALO ALTO, a municipal corporation,
does hereby grant to:
The real property in the City of Palo Alto, County of Santa
Clara, State of California, described in Exhibit A and
shown in Exhibit B attached hereto and by this reference
incorporated herein.
GRANTOR:
City of Palo Alto, a
Municipal Corporation
DATED:By :
ALL-PURPOSE ACKNOWLEDGEMENT
STATE OF CALIFORNIA
COUNTY OF SANTA CLARA
On ,2006, before me
(NOTARY)
personally appeared
SIGNER (S)
personally known to me -or- proved to me on the basis of
satisfactory evidence to be the person(s) whose name is/are.
subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS my hand and official seal.
NOTARY’S SIGNATURE
Approved as to Form
St. Asst. City Attorney
Division
APPROVALS
Approved as to Content
ASD/Real Property
By:By:
A.P.NO. I32-017-081 4/2/2004 7:40 AM
Description of Parcel A
All the land situated in the City of Palo Alto, County of Sm~ta Clara, State of California
as described as follows:
Parcel "A" as delineated and desig-nated upon that certain map entitled "Record of Survey
of the Lands of the county of Santa Clara in excess of lands required for the roadway
purposes being a portion of Lots 16, 17 and 18 of Block 1 as said lots are shown on
’~Map No. 1, Map of Stanford City, Santa Clara County, California’’, filed for record on
May 3, 1910 in book "M" of maps, page 97, lying within the City of Palo Alto" as
recorded February 27, 1969 in Book 249 of Maps at page 39 in the office of the recorder
of the County of Santa Clara, State of California.
Said Parcel A shown on attached exhibit B and made a part hereof.
S aid Parcel A contains 5,414 square feet (0.124 acres) of land.
Reference Grant Deed Book 8649 Page 641.
Description based upon record documents only.
End of Description
James David Kiehl L.S. 7}~2...Zcexpires 6-30-2007
Checked by: Jay Remley ~’,¢Z.
Checked by: James Bour/-q/m//"n
Requested by: Bill Fellman
Exhibit A
1~_017081.doc
7
EXHT] IT "
#RAWN BYI JAHES D, KIEHL
CH~ ~ JA-fifi~ 2OU~NJ
CHECKEI) BY~ ~
HIGH STI~EET
PROPERTY PARCEL A
CITY OF PALO ALTO, CALIFORNIA
/
//-/
SCALE~ !"=30’ (SXII)
REVIS!FIN: (i) 3/~91~004
ATTACHMENT B
INFORMATION FLYER 2460 HIGH STREET
INFORMATION FLYER
SALE OF SURPLUS PROPERTY
2460 HIGH STREET
WHAT IS THE NATURE
OF THE PROPERTY?The subject City-owned property is remnant land left from the
development of the Oregon/Alma Street interchange. The parcel is
currently vacant with landscaping, and is irregular in shape.
WHERE IS IT?The site is located at 2460 High Street, Palo Alto. See attached map.
WHAT IS THE ZONING?Two Unit Multifamily Residential (RMD).
WHAT IS THE SIZE?The parcel is irregular in shape and consists of 5,413 square feet.
IS THE PARCEL
SUBDIVIDABLE?No. RMD requires a minimum lot size of 5,000 square feet.
IS THERE A MINIMUM BID? Yes - The minimum bid for this parcel is $450,000.
WHERE AND WHEN WILL
BIDS BE OPENED?
WILL THERE BE
ORAL BIDDING?
Sealed written bids will be opened by the Manager, Purchasing and
Contract Administration on: Tuesday, July 25, 2006, City Council
Conference Room, 250 Hamilton Avenue - Mezzanine Floor, Palo
Alto, CA. Written bids MUST be accompanied by a deposit in the
form of a Cashier’s or Certified check, made payable to the City of
Palo Alto.
Bids will not be accepted after 3:00 P.M. on July 25, 2006.
Yes - Oral bidding will begin at 5% above the highest written bid. In
order to participate in the oral bidding, you must submit awritten bid
by the deadline stated above. Only those who have submitted
written bids by the deadline date and time will be allowed to
participate in the oral bidding.
HOW DO I GET A COPY OF
THE PROPOSAL PACKAGE?Contact:Bill Fellman
Manager, Real Property
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94303
(650) 329-2472
bill.fellman@cityofpaloalto.org
No Finder’s Fees or Commissions Paid:
The City of Palo Alto does no__~t pay finder’s fees or commissions. Any such payment must be negotiated
between the proposer and his or her agent or broker, if any.
LOCATION MAP
.OS AI-TO,~
HILLS
ALTO
2747
D
2460 t-~GH STREET
2448
2437
2455 .ii i i 2460
2472
2484