For City Council Meeting [April 24, 2018]
TO: Honorable Mayor and City Council
APPROVAL: Robb Steel, Interim City Administrator/Development Services Director
Title
Request City Council to Approve Agreement for Conveyance of Real Property for the San Bernardino Avenue, Riverside Avenue and Willow Avenue Street and Storm Drain Improvements, City Project No. 13080 from SP Assets, LLC, a California Limited Liability Corporation in the amount of $31,956.00.
Body
BACKGROUND:
On July 14, 2015, the City Council approved Agreements for the Conveyance of Real Property for various properties for the San Bernardino Avenue, Riverside Avenue and Willow Avenue Street and Storm Drain Improvements (City Project No. 130801) for $123,670.
ANALYSIS/DISCUSSION:
On September 16, 2014, the City Council in closed session established the fair market value for the required right-of-way for a portion of the vacant property located on the south side of San Bernardino Avenue, east of Lilac Avenue (APN 0254-021-34) in order to widen San Bernardino Avenue to two eastbound lanes including a curb along the property frontage.
The City negotiated with the property owner, Debt Commercial Properties ("DCP"), for the acquisition of 1,763 square feet of right of way with a total value of $11,200.00 and a Temporary Construction Easement of 5,548 square feet for a rental fee of $2,900.00. DCP accepted the City's offer and staff prepared an Agreement for Conveyance of Property.
On July 14, 2015, the City Council approved the Agreement for Conveyance of Property with DCP. However, on September 18, 2015, DCP transferred property ownership to Monte Vista Assets, Inc. ("MVA") without notifying the City. After discovering the transfer, staff redrafted the agreement in order to address this change of ownership.
On January 22, 2016, MVA transferred the property to SP Assets, LLC ("SPA") while also encumbering the property with a $310,000 debt. In June 2016, SPA, the escrow company and the Ci...
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