RES-8905 Authorizing Sale of Certain Surplus Real Property 429 S. Orange StreetRESOLUTION NO. 8905
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ORANGE MAKING CERTAIN FINDINGS, INCLUDING THAT
CERTAIN CITY-OWNED REAL PROPERTY
COMMONLY KNOWN AS 492 S. ORANGE STREET IS SURPLUS TO
THE CITY'S NEEDS, AND AUTHORIZING THE SALE
THEREOF THROUGH A PUBLICLY-NOTICED,
COMPETITNE
BID PROCESS.WHEREAS, the City of Orange (the "City") is a municipal corporation
which exercises governmental functions and powers, and is organized and existing under the laws of the
State of
California; and WHEREAS, as authorized by Section 37350 of the Government Code of the
State of California, the City Council desires to find and determine that certain City-
owned real property commonly known as 492 S. Orange Street (the "Property") is not needed for the
purpose for which it was acquired or for any other public purpose and is, therefore, surplus real
property and should now be sold for the cornmon benefit of
the City; and WHEREAS, the Property consists of a remainder of a larger parcel which
was acquired by the City and used in part for street purposes and, as such, is exempt from the
requirement of Section 65402 of the Government Code of the State of California requiring the
Planning Cornmission to prepare a report indicating that disposition of the Property conforms with the City'
s
General Plan;and WHEREAS, this City Council, as the "lead agency" under
the California Environmental Quality Act ("CEQA"), finds and determines that the sale of the Property
is categorically exempt from the provisions ofCEQA under Section 15312 ofthe State
CEQA Guidelines; and WHEREAS, pursuant to the terms and provisions of Sections
54220-54232 of the Government Code of the State of California, the City has heretofore sent a written
offer to sell the Property for the purpose of developing low and moderate income housing
to certain local public entities, including the Orange Redevelopment Agency; however, none of
those local public entities indicated a desire to
acquire the Property; and WHEREAS, the City Council desires to sell the Property
through a publicly noticed,competitive bid process in accordance with the terms and conditions set forth
in a Notice Inviting Bids, attached hereto as Exhibit "A" and incorporated
herein by this reference.NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City
of Orange, as follows:1. The City Council finds and determines that the foregoing
recitals
2. The City Council finds and determines that the sale of the Property is categorically
exempt from the provisions of CEQA under Section 15312 of the State CEQA Guidelines and,
accordingly, hereby authorizes and directs the City Clerk to file a Notice of Exemption with the
Orange County Clerk.
3. The City Council hereby fmds and determines that the Property is not needed for the
purpose for which it was acquired or for any other public purpose and is, therefore, surplus real
proP()rty, the sale of which is for the common benefit of the City.
4. This City Council hereby authorizes and directs that the Property be sold through a
publicly noticed, competitive bid process pursuant to the terms and conditions of the Notice
Inviting Bids in the form attached hereto as Exhibit "A", and hereby authorizes and directs the
Mayor to execute and deliver all documents and take all other actions necessary and appropriate to
carry out, implement and administer the Notice Inviting Bids relative to the sale ofthe Property.
ADOPTED this 14th day of April, 1998.
Attest:
UMA'R1!d (!., #-C-<<47':
Cassandra J. carl, City Clerk
I hereby certify that the foregoing Resolution was duly and regularly adopted by the City
Council of the City of Orange at a regular meeting thereof held on the 14th day of April, 1998,
by the following vote:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
MURPHY, SLATER, COONTZ, SPURGEON, ALVAREZAYES:
NOES:NONE
NONE
NONE
Cassandra J. Ca carl, City Clerk
Reso No.8905 dg
2
EXHIBIT 'A'
BlD PACKAGE
City of Orange Surplus Property
Located at:
492 South Orange Street, Orange, California
CITY OF ORANGE
NOTICE INVITING BIDS
FOR THE SALE OF SURPLUS CITY-OWNED REAL
PROPERTY The City of Orange is currently soliciting sealed bids for the sale of surplus
City-owned, improved real property located at 492 South Orange Street,
Orange,California (hereinafter referred to as "subject
property").SITE
DATA:
LOCATION:
ZONING:LEGAL
DESCRIPTION:CONDITION
OF SUBJECT
PROPERTY:MINIMUM
BID:Site is irregular in shape, having a net land area
of approximately 4,701 square feet more or less which
is a substandard legal, nonconforming lot. A
2-bedroom, 1-bath single family house is
situated on the subject property and contains
approximately 941 square feet, more or less. Please refer to
Exhibit "A"for
additional information.492 South Orange Street, City of Orange,
State of California being the northwest corner of
La Veta Avenue and
Orange Street.R-3 (Residential/
Multiple Family District).Please refer to Preliminary Title Report,
a copy of which is attached hereto as Exhibit "B", for
a
full legal description.The City makes no representations
or warranties as to the physical condition of the subject
property or in connection with any matter relating
to its condition,value, fitness, use or zoning
which the successful bidder may rely upon, either directly
or indirectly. The bidder acknowledges that the purchase
of the subject property will be on the basis of the
bidder's own investigation of the physical condition
of
the subject property.All rights, title and interest sold will be
conveyed in an AS IS" condition by Grant Deed in
escrow holder's standard form subject to all matters
of record and special
assessments, if any.
DELIVER BIDS:
BID OPENING:
FOR FURTHER
INFORMATION
CONTACT:
VIEWING OF
I:lREMISES:
CONDITION OF TITLE
AND TERMS:
On or before 2:00 pm, date To Be Announced
To: City Clerk, Room A
300 East Chapman Avenue
Orange, California 92866
2:05 pm, date To Be Announced
Location: Same as above
Robert Stolhand
Real Property Representative
300 E. Chapman Avenue
Orange, California 92866
714) 744-
5557 The subject house will be open for inspection
the following dates and times
only:To Be
Announced Attached hereto as Exhibit "B" is a Preliminary
Title Report reflecting the condition of title. The City
shall not be responsible for the removal of any
exceptions to title identified in said
report.Copies of all documents referred to in the
Preliminary Title Report may be reviewed by making
an appointment with Mr. Robert Stolhand at
the telephone number set forth
hereinbelow.The subject property will be offered for sale to
the person making the highest sealed bid that equals
or exceeds the minimum bid upon the following
terms,covenants and
conditions:1. The City, in its sole and absolute discretion,
may reject any and all
bids.2. There will be no oral bidding except in
the following
situation:Immediately following the bid opening and
in the event that more than one bidder
has submitted the highest bid, the City will
receive oral bids on the subject property from
bidders (and only those bidders). The City will
receive oral bids starting at $500 higher than
the highest bid submitted and all additional
overbids shall be in increments of not less than
500 above the last bid acknowledged by the
City's designated representative. The
successful overbidder shall immediately fill out,
complete, sign and deliver to the City's
designated representative a new Bid Form
setting forth the final bid amount and purchase
price.
3. The acceptance of a bid is conditioned upon the
bidder depositing with the City at the time of bid
opening a cashier's check in the amount of
10,000.00 (the "Deposit") made payable to the
City of Orange.
4. The successful bidder shall not later than 65 days
from the date of the City's acceptance of the bid,
pay the balance due in cash (total bid, less
Deposit), plus all escrow fees and closing costs.
However, an owner's policy of title insurance, in
the amount of the purchase price, will be provided
to the purchaser by the City of Orange.
5. If the bidder fails to pay the balance due plus any
document recording fees and all documentary
transfer taxes within 65 days from the date of
acceptance of the bid, or such longer period of
time as may be agreed to by the parties, the City,
at its option, may terminate and cancel the sale by
notifying the bidder in writing of the default under
the terms, covenants and conditions of the sale.
Any such termination and cancellation shall be
effective 15 days from the date of bidder's receipt
of said written notification, subject to the right of
bidder to comply with the terms, covenants and
conditions of the sale and by completing the
transaction during said 15 day period.
6. IN THE EVENT OF THE TERMINATION AND
CANCELLATION OF THE SALE AS ABOVE
PROVIDED, THE CITY MAY, AT ITS SOLE
ELECTION, RETAIN THE DEPOSIT AS
LIQUIDATED DAMAGES AND EXPENSES
INCURRED (INCLUDING ANY COSTS
ASSOCIATED WITH THE CANCELLATION OF
ESCROW) AND THE CITY SHALL BE
RELEASED FROM ANY OBLIGATION TO SELL
THE PROPERTY TO THE BIDDER AND SHALL
HAVE NO FURTHER OBLIGATIONS TO THE
BIDDER. THE SUCCESSFUL BIDDER
FURTHER AGREES THAT THE AMOUNT OF
LIQUIDATED DAMAGES ESTABLISHED BY
THIS PROVISION IS A REASONABLE
ESTIMATE, UNDER THE CIRCUMSTANCES
EXISTING ON THE DATE OF THE CITY'S
ACCEPTANCE OF THIS BID, OF WHAT THE
CITY'S DAMAGES WOULD BE IN THE EVENT
OF A DEFAULT BY THE SUCCESSFUL
BIDDER.
7. Time is of the essence and no time may be
extended, except by mutual written agreement of
the parties.
8. Delivery of all documents for execution or Notice
of Default and Termination and Cancellation by
the City may be in person or by depositing same
in United States mail with sufficient postage and
properly addressed to the bidder at an address
provided on the Bid Form at the time of bid
opening.
9. The description and location of the subject
property are believed to be correct. However, any
error or omission in the description shall not
constitute grounds for non-performance of
the terms, covenants and conditions of the sale
nor constitute a claim by the purchaser for
an allowance, refund or deduction from the
purchase
price.10. The City and the successful bidder shall
promptly cause the opening of Escrow with First
American Title Insurance Company of Santa Ana or
a mutually acceptable escrow holder. This
Escrow shall be opened within five (5) City business
days after the City's acceptance of the successful
The City and the successful bidder shall execute
and deliver to the Escrow Agent any additional or
supplementary instructions as may be necessary
or convenient to implement and close the
transaction contemplated hereby.
CONFLICT OF
INTEREST:
Members of the Orange Redevelopment Agency and
the Planning Commission of the City of Orange, and
other public officials and employees who participate in
the formulation of, or approve plans or policies for, the
redevelopment of a redevelopment project area, are
generally disqualified from acquiring any interest in
real property included within a redevelopment proejct
area. (See Section 33130 of the Health and Safety
Code.) The subject property is located within the
boundaries of the Southwest Redevelopment Project.
However, said officers or employees are allowed to
purchase property for personal residential use under
certain circumstances. Any of such officers or
employees who are interested in submitting a bid to
purchase the subject property should consult with
their own legal counsel to ensure that no conflict of
interest will occur.
BI.D
Bidder Name:
Address:
Telephone:
The undersigned, hereinafter referred to as "Bidder", hereby submits a bid to the
City of Orange, hereinafter referred to as "City", in accordance with the terms,
covenants and conditions as outlined in the Notice Inviting Bids, the terms and
provisions of which are hereby incorporated herein by this reference as though
fully set forth.
This is a bid to purchase surplus City-owned property and improvements
located
at:492 South Orange Street, Orange,
California.In the amount
of :Amount in
Words)Amount in
Numbers)Bidder understands, agrees and
1. Bidder has carefully read and fully understands the information presented in
the bid package including the Notice Inviting Bids, this Bid Form and all
exhibits attached thereto and, by its signature hereinbelow and the delivery of
the Bid to the City hereby agrees to be bound by the terms and conditions
thereof.
2. Bidder specifically agrees as follows:
IN THE EVENT OF THE TERMINATION AND CANCELLATION OF THE
SALE AS ABOVE PROVIDED, THE CITY MAY, AT ITS SOLE ELECTION,
RETAIN THE DEPOSIT AS LIQUIDATED DAMAGES AND EXPENSES
INCURRED (INCLUDING ANY COSTS ASSOCIATED WITH THE
CANCELLATION OF ESCROW) AND THE CITY SHALL BE RELEASED
FROM ANY OBLIGATION TO SELL THE PROPERTY TO THE BIDDER
AND SHALL HAVE NO FURTHER OBLIGATIONS TO THE BIDDER. THE
SUCCESSFUL BIDDER FURTHER AGREES THAT THE AMOUNT OF
LIQUIDATED DAMAGES ESTABLISHED BY THIS PROVISION IS A
REASONABLE ESTIMATE, UNDER THE CIRCUMSTANCES EXISTING
ON THE DATE OF THE CITY'S ACCEPTANCE OF THIS BID, OF WHAT
THE CITY'S DAMAGES WOULD BE IN THE EVENT OF A DEFAULT BY
THE SUCCESSFUL BIDDER.
Bidder's initials here
3. The Bidder shall accompany its bid with a deposit of $10.000. The deposit
shall be made by cashier's check payable to City of Orange. The bid may be
withdrawn in writing prior to bid opening; in such a case, the deposit shall be
refunded in full to Bidder.
After bidding is closed, the deposit of the successful bidder will be retained by
the City and applied to the purchase price. All others will be returned.
Bidder Signature:
Name typed or printed)
Dated: