HomeMy WebLinkAboutH-12 - Sale of 40.26 Acre Surplus City Property. Request for Extension of Time for Opening EscrowCITY OF NEWPORT BEACH
OFFICE OF THE CITY MANAGER
Septe,nber 11 , 1972
Agenda Item H -12
TO: MAYOR AND CITY COUNCIL
FROM: City Manager
SUBJECT: SALE OF 40.26 ACRE SURPLUS CITY PROPERTY. REQUEST FOR EXTENSION
OF TIME FOR OPENING OF ESCROW.
RECOMMENDATION:
If desired, grant extension of time for Leadership Housing Systems,
Inc., to open escrow to purchase subject parcel until October 10, 1972.
DISCUSSION:
On March 13, 1972, the City Council adopted Resolution 7642 declaring
the subject real property to be surplus, authorizing its sale and setting out
the procedures for sale. On June 12, a $50,000 Option to Purchase was awarded
to Leadership Housing Systems for $616,010 cash as the highest and best bidder.
Section 9 of Resolution 7642 provided in part that,
"Deposit. Each bid must be accompanied by a deposit of cash
or a certified or cashier's check payable to the City of
Newport Beach equal to $50,000. This deposit is to guarantee
that within ninety (90) days from the date City accepts said
bid, said bidder will open a thirty -day escrow ."
Leadership has diligently pursued the necessary steps for a condo-
minium development on the parcel in order to enable the company to open escrow
in confidence that the project could meet the necessary legal requirements and
be profitably implemented. The City Council and Planning Commission have
approved the necessary Tentative Map and the Planning Commission has granted a
Use Permit. Substantial planning has been undertaken to resolve the utility
service needs among the various public agencies.
r
-z -
This past week it was discovered that the Santa Ana Regional
Water Quality Control Board apparently has jurisdiction over any develop-
ments on the property because of the land fill history of a substantial
portion of the parcel. It is not possible for Leadership to present its
development plans to the Board prior to the required date for escrow opening.
The company cannot open escrow with this potential cloud on the profitable
utilization of the property after purchase.
The extension period appears justified in view of the diligence
with which the company has proceeded with land use planning. The extension
should provide a reasonable period of time to properly assess the Water
Quality Control Board's requirements.
RLW /PFB:sh
ROBERT L. WYNN