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HomeMy WebLinkAbout6/16/2010 - STAFF REPORTS - 2.M. iO pALM Sb iy V N k A T • C'Q4IFORIOP City Council Staff Report DATE: June 16, 2010 CONSENT CALENDAR SUBJECT: APPROVE THE SALE OF A 5,663 SQUARE FOOT PARCEL (.13 ACRE) FROM THE CITY OF PALM SPRINGS TO BASAM RAEI FOR THE SUM OF $7,650.00, LOCATED NEAR THE NORTHEAST CORNER OF MESQUITE AVENUE AND EL CIELO ROAD (APN 680-601-006) FROM: David H. Ready, City Manager BY: Community & Economic Development Department SUMMARY: The City of Palm Springs ("City") proposes to sell a 5,663 square foot parcel to Basam Raei for the amount of $7,650.00. RECOMMENDATION: 1. Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING THE SALE OF A CITY- OWNED 5,663 SQUARE FOOT PARCEL LOCATED NEAR THE NORTHEAST CORNER OF MESQUITE AVENUE AND EL CIELO ROAD WITH APN 680-601-006 TO BASAM RAEI IN THE AMOUNT OF $7,650.00, FOR THE PURPOSE OF CONSTRUCTING A SINGLE FAMILY HOME." BACKGROUND: The City of Palm Springs ("City") proposes to sell a 5,663 square foot parcel to Basam Raei ("Purchaser")for$7,650.00. The parcel is a remnant piece that was acquired by the City during the widening improvements to Mesquite Avenue Purchaser approached staff in October 2009 expressing an interest in the subject parcel in addition to the adjoining property immediately to the north of subject property for the purpose of building a single family residence. Purchaser has his principal residence on ITEM NO. South Palm Avenue in very close proximity to the subject property and wishes to build a single family residence for a family member on the subject property and the adjoining parcel to the north which Purchaser is in negotiations with to buy contingent upon his ability to purchase the City-owned subject property. By combining the two lots, Purchaser can build a larger and more desirable residence. The City parcel on its own would be very challenging for any type of development and not likely even feasible to develop, given the size, configuration and setback requirements. There would also be a need to dedicate public right of way for the street and the cul de sac at the end of the street. Purchaser has been made aware that there shall be no access permitted to the City-owned subject parcel from Mesquite Avenue. As a condition of the site development, South California Avenue would have to be extended south from its current termination point to the subject property at the expense of the Purchaser. In addition, services and utilities would also need to be extended to provide water, sewer and other services to the property at the expense of the Purchaser. Purchaser may recover some of the costs of extending the road and services upon development of the adjacent lot to the north and two lots on the east side of the extended street, however, there is a time limitation of ten years for those properties to be assessed these costs. If no development occurs within a ten year period, there will be no opportunity to recover any costs associated with extending the road and services. Purchaser is familiar with these restrictions and requirements as he recently constructed his principal residence on South Palm Avenue in 2004 and was required to extend that street and services. Purchaser has made an offer of$10,000 for the adjacent lot to the north and that offer has been accepted by the seller. Based on the size of that property, the sale price is$1.35 per square foot. The highest and best use of the subject property would be to combine the lots for a single family residence. The sale price for the City-owned lot has been established at $1.35 per square foot. Staff consulted with a real estate appraiser to determine the fair selling price for the subject property. The real estate appraiser confirmed that this price would be reasonable and representative of the fair market value of the property. FISCAL IMPACT: The approval of this sale will result in revenue of$7,650.00 to the City. Diana Shay ZL Thomas J. Wilson Redevelopment Coordinator Assistant City Manager, Development Services David H. Ready City Manager 2 Attachments: 1. Agreement for Purchase and Sale 2. Resolution RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA,APPROVING THE SALE OF A CITY-OWNED 5,663 SQUARE FOOT PARCEL LOCATED NEAR THE NORTHEAST CORNER OF MESQUITE AVENUE AND EL CIELO ROAD WITH APN 680-601-006 IN PALM SPRINGS TO BASAM RAEI, FOR THE PURPOSE OF CONSTRUCTING A SINGLE FAMILY HOME. WHEREAS, the City of Palm Springs desires to sell certain City-owned property located in the City of Palm Springs ("Sale Property"), near the northeast corner of Mesquite Avenue and El Cielo Road with APN 680-601-006; WHEREAS, the City is informed that Basam Raei ("Buyer") has applied to the City for the purchase of the Sale Property; WHEREAS, the City finds that there is no present or anticipated future use of the Sale Property for public purposes, and that the Sale Property is zoned for single family residential use; WHEREAS, the sale of the Sale Property is consistent with the City's General Plan and is for the common benefit of the City's citizens; NOW THEREFORE the City Council of the City of Palm Springs resolves: 1. The City Council hereby finds that the sale of the City-owned property located near the northeast corner of Mesquite Avenue and El Cielo Road at the west side of the extension of S. California Ave., more specifically described as Assessor's Parcel Number 680-601-006, to Basam Rae!, is in the public interest because the Sale Property is zoned for single family residential development and the Buyer proposes to construct a new home on the Sale Property. 2. The City Council hereby finds that the sale of the Sale Property for the collective amount of $7,650.00 is in the public interest for the common benefit of the City's citizens and is not below the fair market value of the Sale Property. 3. The City Council approves the sale of property with APN 680-601-006 to Basam Raei in the amount of $7,650.00 with zero sales commission and buyer to pay all escrow and closing costs. 4 4. City Manager or his designee is authorized to execute the Purchase and Sale Agreement and all other documents to effectuate the sale of the property. ADOPTED this day of 2010. City Manager CERTIFICATION: STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certifies that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council on 2010, by the following vote: AYES: NOES: ABSENT: James Thompson, City Clerk �J AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY THIS AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY ("Agreement') is made this_day of , 2010 ("Effective Date"), by and between the City of Palm Springs, a municipal corporation and charter city("City") and Basam Raef ("Purchaser"). RECITALS A. City has investigated potential public uses for that certain property owned by City and located within the City of Palm Springs and specifically described at Exhibit"A" ("Property"). B. City has informally assessed the Property which assessment reveals a valuation of Seven Thousand Six Hundred and Fifty Dollars ($7,650.00). C. On June _, 2010, City received an offer for the purchase of the Property from Purchaser for Seven Thousand Six Hundred and Fifty Dollars ($7,650.00). D. City is desirous of selling the Property to Purchaser pursuant to the terms and conditions of this Agreement. NOW, THEREFORE, in consideration of the mutual covenants and conditions contained herein and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereby agree as follows: TERMS AND CONDITIONS II. PURCHASE AND SALE OF PROPERTY. Subject to all of the terms, conditions and provisions of this Agreement, and for the consideration herein set forth, City hereby agrees to sell to Purchaser and Purchaser hereby agrees to purchase from City the Citys fee interest in the Property, as specifically described at Exhibit"A", attached hereto and made a part hereof. III. PAYMENT OF PURCHASE PRICE. A. Purchase Price. Purchaser agrees to purchase the Property from City and City agrees to sell the Property to Purchaser for the purchase price ("Purchase Price") of SEVEN THOUSAND SIX HUNDRED FIFTY AND 00/100 DOLLARS ($7,650.00), payable by Purchaser as set forth in Section IV below. "Good funds" shall mean a wire transfer of funds, cashiers or certified check drawn on or issued by the offices of a financial institution located in the State of California, or cash. B. Time of Pam. The entire Purchase Price shall be paid in good funds upon the Effective Date of this Agreement. IV. ESCROW. 6 1 A. Closing. Closing of the sale of the Property shall take place through an escrow to be established with a tide insurance company selected by the City ('Title Company" or "Escrow Holder"). The Closing Date shall be on or before , 2010; provided, however, that either party herein may, upon twenty (20) days prior written notice to the other party and receipt of such other parry's consent, elect to extend the Closing Date for a period of up to sixty (60) days. B. Prior to City's execution of this Agreement, Purchaser deposited a non-refundable deposit with the Escrow Holder in the amount of Five Hundred and 001100 Dollars ($500.00)_ Such sum shall be released by Escrow Holder to City_ Upon dose of escrow, such sum shall be applied as a credit to the purchase price. C. Payment of Balance of Purchase Price. No later than ten (10) business days prior to the Close of Escrow, Purchaser shall execute, acknowledge (if appropriate) and deposit into Escrow the balance of the Purchase Price, subtracting the Deposit made under Section 3.2 herein, of Seven Thousand One Hundred Fifty and 00/100 Dollars ($7,150.00) to Escrow, plus all additional sums necessary to dose the Escrow including, but not limited to, all dosing costs which shall be payable by Purchaser. City shall not be responsible for any costs in connection with the Escrow. D. Purchase Costs. Subject to the terms and conditions set forth herein, Purchaser hereby agrees to pay all escrow, closing and other Property acquisition-related costs in addition to the Purchase Price, incurred by the parties herein in the transfer of the Property ("Purchase Costs"). E. Conveyance of Title- At the Closing Date, City shall deliver to Title Company a Grant Deed ("Grant Deed") in the form of attached hereto as Exhibit "B", which Grant Deed shall convey all of City's interest in the fee to Purchaser. Title Company shall be instructed to record such Grant Deed in the Official Records of Riverside County, California, if and when Title Company holds instruments and funds accruing to Purchaser and City. F. Conditions Precedent to Transfer of Tide. City shall not be obligated to execute and deposit the Deed into Escrow, unless all of the following conditions are satisfied on or before the Closing Date: 1_ Purchaser has deposited into Escrow the funds described in Section IV(B) above; 2. Purchaser has deposited into Escrow the funds described in Section IV(C) above; 3. Purchaser has deposited into Escrow the funds described in Section IV(D) above; 4. All necessary funds and documentation have been deposited into Escrow pursuant to this Agreement and the Escrow Holder is irrevocably committed to close Escrow; 5. Purchaser has satisfied all other conditions set forth in this Agreement precedent to Close of Escrow; and 7 2 & The Escrow Holder has notified City in writing that Purchaser has satisfied all conditions to Close of Escrow. Any waiver of the foregoing conditions must be express and in writing. In the event that Purchaser fails to satisfy the above-referenced conditions precedent, or defaults in the performance of its obligations hereunder, City may terminate this Agreement. V. EFFECTIVE DATE. This Agreement shall take effect from and after the date (which date shall be inserted into the preamble of this Agreement) of adoption and approval by the City pursuant to official action of the City. VI. NO WARRANTIES: "AS-IS" SALE_ Except as set forth in this Agreement, Purchaser acknowledges that neither City nor any of its employees, agents or representatives has made any representations, warranties or agreements to or with Purchaser on behalf of City as to any matters concerning the Property, the physical condition, the present use thereof, the merchantability, or the suitability of Purchaser's intended use of the Property. City further acknowledges and agrees that the Property is to be purchased, conveyed and accepted by City in its present"AS-IS"condition. VII. BROKERAGE COMMISSIONS. N/A. Vill. RESPONSIBILITIES OF ESCROW HOLDER Deposit of Funds_ All funds received in Escrow shall be deposited by the Escrow Holder in an escrow account with any state or national bank doing business in the State of California and insured by the Federal Deposit Insurance Corporation. A. Notices. All communications from the Escrow Holder shall be directed to the addresses and in the manner provided in Section IX of this Agreement for notices, demands and communications between City and Purchaser. B. Sufficiency of Documents. The Escrow Holder is not to be concerned with the sufficiency, validity, correctness of form, or content of any document prepared outside of Escrow and delivered to Escrow. The sole duty of the Escrow Holder is to accept such documents and follow City's and Purchaser's instructions for their use. C. Exculpation of Escrow Holder. The Escrow Holder shall in no event be liable for the failure of any of the conditions to Closing, or for forgeries or false impersonation, unless such liability or damage is the result of negligence or willful misconduct by the Escrow Holder- D. Responsibilities in the Event of Controversies. If any controversy documented in writing arises between City and Purchaser or with any third party with respect to the subject matter of the Escrow or its terms or conditions, the Escrow Holder shall not be required to determine the same, to return any money, papers or documents, or take any action regarding the Property prior to settlement of the controversy by a final decision of a court of competent jurisdiction or written agreement of the parties to the controversy. The Escrow Holder shall be responsible for timely notifying City and Purchaser of the controversy. In the event of such a controversy, the Escrow Holder shall not be liable for interest or damage costs resulting from failure to timely close the Escrow or take any other action unless such controversy has been caused by the failure of the Escrow Holder to perform its responsibilities hereunder. 3 IX. MISCELLANEOUS. A. Successors, This Agreement shall be binding upon the parties hereto and their respective heirs, representatives, transferees, successors and assigns. The obligations of Purchaser under this Agreement shall inure to the benefit of City, any purchaser of City, and their respective heirs, representatives, transferees, successors and assigns. B. Time of Essence. Time is of the essence in this Agreement and with respect to each covenant and condition hereof. City and Purchaser each specifically agrees to strictly comply and perform its obligations herein in the time and manner specified and waives any and all rights to claim such compliance by mere substantial compliance with the terms of this Agreement. C_ Time Period Computations. All periods of time referred to in this Agreement shall include all Saturdays. Sundays and California state or national holidays unless the reference is to business days, in which event such weekends and holidays shall be excluded in the computation of time and provide that if the last date to perform any act or give any notice with respect to this Agreement shall fall on a Saturday, Sunday or Califomia state or national holiday, such act or notice shall be deemed to have been timely performed or given on the next succeeding day which is not a Saturday, Sunday or California state or national holiday. D. Interpretation: Governing,Law. This Agreement shall be construed according to its fair meaning and as if prepared by both parties hereto. This Agreement shall be construed in accordance with the laws of the State of California in effect at the time of the execution of this Agreement. Trties and captions are for convenience only and shall not constitute a portion of this Agreement. As used in this Agreement, masculine, feminine or neuter gender and the singular or plural number shall each be deemed to include the others wherever and whenever the context so dictates- E. No Waiver. No delay or omission by either party hereto in exercising any right or power accruing upon the compliance or failure of performance by the other party hereto under the provisions of this Agreement shall impair any such right or power or be construed to be a waiver thereof. A waiver by either party hereto of a breach of any of the covenants, conditions or agreements hereof to be performed by the other party shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions or conditions hereof- F. Modifications. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made by written instrument or endorsement thereon and in each such instance executed on behalf of each party hereto. G. Severability_ If any term, provision, condition or covenant of this Agreement or the application thereof to any party or circumstances shall, to any extent, be held invalid or unenforceable, the remainder of this instrument, or the application of such term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law- H. Merger of Prior Agreements and Understandings. This Agreement, and other documents incorporated herein by reference contain the entire understanding between the parties relating to the transaction contemplated hereby and all prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged herein and shall be of no further force or effect. 9 4 I. Notices. Any notice which either party may desire to give to the other party must be in writing and shall be effective (i) when personally delivered by the other party or messenger or courier thereof; (ii) three (3) business days after deposit in the United States Mail, registered or certified; or (iii) twenty-four (24) hours after deposit before the daily deadline time with a reputable overnight courier or service; in each case postage fully prepaid and addressed to the respective parties as set forth below or to such other address and to such other persons as the parties may hereafter designate by written notice to the other parties hereto: To City: City of Palm Springs 3200 East Tahquitz Canyon Way Palm Springs, CA 92262 Attn: City Manager Copy to: Woodruff, Spradlin & Smart 566 Anton Boulevard, Suite 1200 Costa Mesa, CA 92626 Attn: Douglas C. Holland, Esq. To Purchaser: Basam Raei 730 S. Palm Avenue Palm Springs, CA 92264 Either party may from time to time, by written notice to the others, designate a different address which shall be substituted for the one(s) above specified, and/or specify additional parties to be notified. I Attomeys' Fees. In the event of litigation between the parties arising out of this Agreement, the prevailing party shall be entitled to recover its reasonable attomeys' fees and other costs and expenses incurred in addition to whatever other relief to which it may be entitled. K. Execution in Counterpart. This Agreement and any modifications, amendments or supplements thereto may be executed in several counterparts, and all so executed shall constitute one agreement binding on all parties hereto, notwithstanding that all parties are not signatories to the original or the same counterpart. L. Due Execution. The person(s) executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (id) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv)the entering Into this Agreement does not violate any provision of any other Agreement to whiph said party 16 bound. 10 5 IN WITNESS WHEREOF, the parties hereto have executed this Agreement of Purchase and Sale of Property as of the date set forth above. "Clwo CITY OF PALM SPRINGS a municipal corporation and charter city By: City Manager ATTEST: City Clerk APPROVED AS TO FORM: City Attorney "PURCHASER" By: Its: 11 6 EXHIBIT"A" LEGAL DESCRIPTION OF PROPERTY The Land is that certain real property located in the City of Palm Springs, County of Riverside, State of California, more particularly described as follows' Lots 35 & 36 Block B, Map Book 0021027, Palm Springs Add 1. APN 680-60141W 12 7 Page 1 of 1 ..er ,... r : Ot rr rl■..�! 1ti� � a 1" M or 40 „k* Y j4l2264�•will z ul 7 �M J E815e f,.. PI V 6$0—UO —OOV lot n /'1 r`TI N CityGIS �., glIFOON�P Copyright®2006 Al Rights Reserved. The Hormation cortamd herein is the proprietary property of the cort*L for suppled under bcw se and may not he approved e)pCept as licensed by Noel flop PrpCWs. 13 http://mps.digitaimapcentmi-com/production/CityGIS/vO7_01_O62/index_62b.bttnl 5/13/2010 EXHIBIT'B" GRANT DEED FREE RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City Clerk, City of Palm Springs P.O. Box 2743 Palm Springs, CA 92263-2743 GRANT DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, THE CITY OF PALM SPRINGS, a municipal charter city, hereby grants to Basam Raei, the real property in the City of Palm Springs, County of Riverside, State of California, described in Exhibit "1" attached hereto and incorporated herein, by reference subject to the existing easements, restrictions and covenants of record thereon, and subject to the terms of the Agreement for the Purchase and Sale of Real Property executed concurrently herewith. "City" CITY OF PALM SPRINGS, a municipal corporation and charter city By: City Manager ATTEST: City Clerk 8 14 EXHIBIT"1" LEGAL DESCRIPTION OF PROPERTY The Property is located in the City of Palm Springs, County of Riverside, State of California, more particularly described as follows: Lots 35 & 36 Block B, Map Book 002/027 Palm Springs Add I. APN 680-601-006 l