HomeMy WebLinkAboutF-2 - Apprisal of the City-Owned Property on Bay Avenue Between 18th and 19th6
i
J A N 23 1978 CITY OF NEWPORT BEACH
By ** CITY COUNCIL OFFICE OF THE CITY MANAGER
CITY op "Now MO. January 23, 1978
TO: MAYOR AND CITY COUNCIL
FROM: City Manager
APPRAISAL OF THE CITY -OWNED PROPERTY ON
SUBJECT: BAY AVENUE BETWEEN 18TH AND 19TH
Background and Purpose
COUNCIL AGENDA No. F-2
The City of Newport Beach owns a parcel of land measuring 50' by 50' and
containing approximately 2,200 sq. ft., which is located on Bay Avenue
between 18th and 19th (Attachment 1). The City has been leasing a portion
of this property to Mrs. Josephine Fulton since May 1, 1953, and a portion
to Mr. and Mrs. Charles H. Straub since September 23, 1964, at the rate of
$12.50 per month, each (Attachments 2 and 3). Both of the lessees own the
property which adjoins the City -owned parcel, and according to a survey
conducted on June 17, 1977, two primary encroachments are shown to exist on
the leased parcels (Attachment 4).
Both lessees have indicated an interest in purchasing their respective leased
parcels, and the City Council, on September 12, 1977, directed that the
property be appraised and negotiated for sale to the lessees on the basis
of its fair market value. It should be noted that in the opinion of the
City Attorney, as expressed in Attachment 5, the City is under no obligation
to sell the property to the highest bidder. The only requirement in this
regard, is that the City obtain fair market value as the result of the sale.
The law requires that the State and County be notified of a city's intention
to dispose of surplus property and be offered an opportunity to purchase the
property for park and recreation purposes. The City notified the appropriate
agencies concerning the Bay Avenue property and it was indicated that no
interest existed in this regard.
On October 5, 1977, the City authorized Richard A. Fuller, M.A.I. to conduct
an appraisal of the subject property pursuant to Council direction.
The purpose of this staff report is to inform the Council of the appraisal
results, and other pertinent information relating to the status and disposition
of the property.
Appraisal Results
In an appraisal report received in the City Manager's Office on January 7,
1978, the fair market value of the subject property, as of December 27, 1977,
has been established at $105,000. Copies of the appraisal document are avail-
able in the City Manager's Office for review.
MAYOR AND CITY COUNCIL
Appraisal Update on City -owned
Subj: Property - Bet. 18th & 19th Bay Ave.
Page 2 - 1/23/78
Notification of Lessees
Pursuant to Council direction, staff has notified the current lessees of the
appraisal results to determine their willingness to purchase their respective
leased portions on the basis of the property's established fair market value.
Both lessees have indicated that they are still interested in completing this
transaction (Attachments 6 and 7).
Inquiries Regarding the Property
During the period since the Council ordered the appraisal, the City has
received a number of inquiries and expressions of interest regarding the
final disposition of the property. Staff has notified those expressing such
interest of the date and time of the meeting at which the Council would be
discussing the appraisal results so that they may offer their input.
Summary of Available Alternatives
In light of the appraisal results, the following alternatives remain available
to the Council with regard to the disposition of the Bay Avenue property:
1. Continue with the resubdivision and sale of the property
to the current lessees on the basis of its fair market
value. This would result in a sale price of approximately
$52,500 for each leased portion.
2. Take appropriate action to provide for the sale of the
property on the open market to the highest responsible
bidder.
3. Lease the property to the current lessees on the basis
of its fair market value. Current market trends indicate
that 8% of the property's fair market value, or $8,400
per year ($700 per month) would be a realistic and
reasonable lease figure. This would compute to $4,200 per
year and $350 per month for each lessee.
4. Offer the property for lease on the open market based on
its fair market value.
ROBERT L. WYNN
RLW:GJB:ib
Attachments
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ATTACHMENT 1
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CITY OF NEWPORT BEACH
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ATTACHMENT 2 w-
BAY AVENUE
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SULLN NN ' LENSE
VILELLE PLNCE
ATTACHMENT 3
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' ATTACHMENT 5
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OFFICE OF THE CITY ATTORNEY
101
September 16, 1977
Miss Sue L. Picker
1132 West Bay Avenue
Newport Beach, California 92660
Dear Miss Ficker:
This is in response to your letter of September 13, 1977,
regarding the City-o°7ned property located on the south side
of Bay Avenue between 18th and 19th Streets. I have taken
the liberty of copying Bobby Lovell, as she has raised
certain questions concerning the subject property also.
At a general municipal election held on April 14, 1964, the
voters approved of the sale of the Bay Avenue property by
adding Section 1/402 (c) to the City Charter. This constitutes
the City's.authority to sell the property.
At the present time, the City Manager's Office is arranging
to have the property appraised. Pursuant to state law, we
are giving the State Resources Agency and the County Parks
and Recreation Department notice of our intent to sell the
property and offering it to them for park, recreation, or
open space purposes. If the State or County decide not to
purchase the property, we will either offer it to the existing
lessees or sell it on the open market.
Our research of the law indicates no requirerient- that the
City Insist sell the property to the highest_ bidder. `.['he only
r_ Es c t: -l.c f:7.0I1 would be that -the City r. ecea.ve full market value
At tlI_i_:; time, the Council has :instructed the st--af:f: to I7egot_iate
Wl%1l -Lhe lessee s. `These ne�JO -:LFtt LOnS OaI"1nCYl_ "l_ahC' p1.10E' llntll
after we receivo the ap-raisal r.eporL and rc: sq-)on c� frol-.i the
N(-.t1)mt );W,wh, i',clilc>;ni`�(i(i ;
15,
Miss Sue L. Ficker
Page Two
September 16, 1977
State and County. Should it be determined at some later
elate that it would be more appropriate to offer the property
on the open market, then the staff will bring the matter back
to the Council for further direction.
Very truly yours, /
DENNIS D. O'NEII,
City Attorney
DDO/.tic
cc: Bobby Lovell
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TTACHMENT 6
Charles F Strpub
10424 70—pres Prig*e
lbntclpir Crlif. 9170
City of Nermort Reach
City I?pll
I`:envort Roulevp&
,Vn—nor` H- ,nch, Calif.
00 =ham. it V-v Concern;
1pnu^ry 10, 1978
11107
10-
Of
Am npr our connprs" ion on the tpl-enhonr ron-
crrnin„ tbp city o.,.nE>:' nrnn,rt••, t. 1RI91 n-y 7P, Yes,
♦T Prp interppt`? in nure "pFing oiar h•-1- oT 4bp nro- erty
loc-atee in front o` the nronerty ..,e now o-m.
Pler-e noti"y us of the nrocp?urn.
Th^nk You
Phones ..... ront.ri-ir (710 W_9114
;;e—nort 'leech 67F--072W,"
January 12, 1978
Mrs. Carlton J. Schroder
Route 1, Box 246-A
Corning
California 96021
Newport Beach City Council
Office of the City Manager
3300 Newport Boulevard
Newport Beach
California 92663
Reference: Council meeting, September 12, 1977
Dear Members:
In accordance with the City Council's approval to allow the undersigned the
right to purchase the abutting lot on Bay Avenue, I hereby accept the $52,500.
appraisal and agree to buy the lot for same, payable in cash.
Sincerely,
OS' �NEUL7
By: NINA F. SCHRODER, Daughter
Power of Attorney, In Fact
COPIES SENT� 0 Mayor
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