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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: