HomeMy WebLinkAbout0109.092. •
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January 9, 1992
HONORABLE CITY COUNCIL
Palo Alto, California
MIDDLEFIELD WELL BIT:! -REQUEST POR BID PRO!lOS~B
Members of the council:
Report ill. Brief
This is an info~ational report on the results of the Request for
Bid Proposals (RFBP) for the sale of the Middlefield Well site~ No
council action is required4
In 1988, council approved a staff reconur.endation to abandon and
dispose of four of the city's ten well sites, including the
Middlefield Well site (CMR:267;S)~ On October 15, 1990, Council
approved an ordinance rezoning the site to Single Family Residen
tial (R-l) , and on November 16, 1990, a Certificate of Compliance
establishing t~o parcels on the site was recorded with the county
of Santa Clara.
In three staff reports (CMR 497:9, CHR:220:0, and CMR:274:0), staff
proposed developing the Middlefield site with two single family
homes and then holding them for their income stream and appreciat
ing value. The Finance Committee expressed concern over the City
makinq this type of investment, and on May 15, 1990, requested that
staff eY.plc~e this concept further and return to the committee ~ith
its findings. St3ff responded to this request 'With the October 25,
1990 staff report (CMR 545:0), in which, given the concerns of the
Finance committee and the recent dOW'J'lturn in the real estate
market, staff recommended sale of the two Middlefield parcels. On
November 26, 1990, Council directed staff to further revie ... · and
make recommendations on the Middlefield Well site parcel:; as to
City-directed and maintained development of the site~ Council also
CMR:109:92
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directed staff to e),:plore opportunities for disposition of the site
in conjunction with the neighboring properties and r~port back to
the Finance committee. In CMR:223:91 dated April 11# 1991, staff
reported on the explo~ation of possible opportunities for disposi
tion of th~ site in conjunction ...,-ith neighboring properties, ar.d in
CMR:2SS:91 dated ~ay 9, 1991, st~ft reporte~ back to the Finance
Committe.e regarding alternatives for City-directed and maintained
development of the site.
On July I, 1991, Council authorized staft to send out a RFBP for
the sale of the Middlefield Well site lots ~ith a minimum bid of
'$300,000 each.
R,,,,.9:Y.est for Bid Propo9al
In early October, information flyers were sent to SO per
sons/companies on the Surplus Prope~ty Mailing List, and adVertise
ments of the sale of the property ....-ere placed in the San Jose
Mercury News l the Peninsula Times Tribune and the Palo Alto Weekly.
In response to this advertising, staff l"eceived requests for
information flyers from 16 persons and requests for the p~oposal
package from 7 persons. As approved by Council on July 1, 1991,
the RFBP set the ~1nimum bid for the lots at $300,000 ~ach. Se~led
written bids, accompanied by a good faith deposit in the amount of
$3, UJO for each lot, 'Were to be opened on December 11, 1991. IT'.
response to the FtFBP, the City received no bids.
PitY_,to Retain the Site Vlltil H,.,~:tet ___ Improve,
The cost to maintain the Middlefield Well site is $300 per year.
It is staff's opinion that it is in the City's best interest to
hold onto the property awaiting a more favorable. real estate
m~,rket. unless otherwise directed by Council, staff intends to
leave the -For Sale~ sign posted at the site and hold the property
until the l·ea! estate market improves and/or potential bUy2rs
indicate a willingness to submit a bid on the lots for at least
$300,000. Staff will keep Council informed of any new develop
!Lents.
C'MR:l09:92 2
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Respectfully submitted,
9f;iwr~~, Jhi£T FREELMID
._---~1;;:;,:~~,S{J ~;-!lAI/RISON -,
D~JC::JJe
;rlFLEHING ' f;j( ............... (~Sist.nt City' M:n~
~lated sta~f reports~
CMR:109:92
=:267 B
CMR: 497 9
CMR,220 0
CJoffi:2i4 a
CMR: 545 a
CMR:223 91
CMR:258 91
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