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Home My WebLink About1973-05-09; City Council; 741-3; Surplus Freeway Parcels Lease or PurchaseT iI E G T: T Y O F l1genda Bill No. :Referred To: subject: ., CA.1=:.LSBiii Date: Nay 9, 19 7 3 ---- Submitted By: SURPLUS FREEWAY PARCELS:_-LEASE OR PURCHASE William C. Baldwin F.sst. to C/Mgr. statement of the Matter Approximately one year ago negotiations· were·started to acquire three (3) surplus State· freeway parcels along Pio Pico. City Council decision was to lease these ~~reels at a cost of $100.00 each per year per lot. Jhe necessary papers we~e sent to tqe California State Division of Highways and after several months the enclosed letter was received which suggests the t'urchase of these parcels on a five (5) year in~tallme~t plan (7% interest on the unpaid balance.) Exhibit Letter from Division of Highwais--4/5/73 Letter from Division of Highways--5/7/73 Copy of installment contract staff Recommendations Since the State is. insistent that these parcels be p11rchased .rather than leased, I suggest we use the installment ~ontract plan to purchase these properties. The purchase price is $6,250.00. Interest over f.ive·years will be $1,312.50 for a total cost of $7,562.50. Leasing over a 50 year perioe would amount to t1s,ooo.oo ... ... 11.B No. Date: May 9, 1973 ... . City Ma~ager's Recommendation ·concur wjth staff: re-commendation. Council.Action -5-15-73 Tpe staff was instructed to prepare an agenda bill for the purchase of the three (3) fre·ew·ay p.arcels for considerat.ion at the next. Council meeting .. -2- STATE OF CALIFORNIA-BUSINESS ANO TRANSl'ORTATION AGENCY DEPARTMENT OF PUBLIC WORl<S DIVISION OF HIGHWAYS DISTRICT 11, P.O. BOX 390, SAN DIEGO 92112 April 5, 1973 Mr. William C. Baldwin Deputy ¥.:ayor, City of Carlsbad 1200 Elm Avenue Carlsbad 1 CA. 92008 Dear Mr. Baldwin: RONALD Ri:AGAN, Govtrnor File: 11-SD-5 R/W 13763,-01-01 13768, 14540 Subject: City of Carlsbad Porter Bill Applications In connection with the proposals of the City to lease the above designed three parcels, our Headquarters Office has asked that the City be contacted again and urged to a.cqui,:e these parcels by direct sale through the use of a five-year installment con- tract. The market value of these parcels amounts to $6,250. The City's $300 per lease payments fo~ fifty years amounting to $15,000 far exceed the parcels' current value. In addition, the City would have a free hand in developing the parcels if they owned them outright. Please inform us of the City's final decision in this matter as soon as possible. Very truly yours, J. DEKEMA District Engineer B~~>-...t:-R ;lJ7lZ~ CHARLES R. MITCHELL -K Right of Way ..A.gent CRM:nc STATE OF CALIFORNIA-BUSINESS ANO TRANw, .JRTATION AGENCY DEPARTMENT OF PUBLIC WORKS DIVISION OF HlGHWA Y5 DISTRICT 11, P.O. BOX 390, SAN DIEGO 92112 Hny 7, 1973 tl~. tiilliarn C. Baldwir~ Dep1ity Mayor, City of Carlsbad 1200 Elm Avenue Carlsbad, CA. 92008 Dear Mr. Baldwin: RONALD Rl:AGAN, Cov,rnor li'ile: 11-SD-5 R/W 13763-01-01 13768, 14540 Subject: City of Carlsbad Porter Bill i1pplication In accordance with your request t~1ere are enclosed one copy of our regulations regarding sales to other governmen~al ag~ncies and one copy of the installment contract for the sale of real property. The interest rate to be used in the install- ment contract is seven percent (7%). The market value of these parcels and the purchase price is $6,250. Kindly advise if you desire me to prepare the install- ment contract for e,~ecution on behalf of tl1e City of Carlsbad. Very truly yours, J. DEKEMA District Engineer CPJ.;.: nc Enc. OTHER DIRECT C0~1VEYANCES OTHER GOVERs.'l'HENTAL AGENC!ES Section 7.571 -General A resolution, passed by the Culifornia Highway Commission on July 30, 1964, governs the conveyance of fee-owned parcels of excess lund direc'.!;ly to pttblic agencies without calling for competitive bids. The resolution reads: RESOLVED: by the California Highwuy Commission that in . the disposal of excess fee-owned parcels, not needed for highway purposes, pursuant to Section 118 of the Streets and Highways Code, the Department is authorized to sell to public agencies at their request, without calling for com- petitive bids, at a price representing the fair market value thereof, and upon a determination that such intended use shall be for public purposes; and BE IT FURTHER RESOLVED: that this policy shall also apply to Transfers of Control and Possession of such property made to other State agencies pursuant to Section 13110 of the Government Code. This resolution applies only to fee-owned parcels which do not qualify under rinding "A" and Finding 11 B '' procedures. Fee-owned p~·operty which qualifies under Finding "A" or Finding "B" shall be processed under the sections relating thereto. Sales made to other agencies for public road or street widening or extension purposes will not generalJ.y qualify as Finding "A" o.r Finding "B". In negotiating with another public agency for direct sale at fair market value of real property, it is important that the agP.ncy understand that the sale price agreed upon is subject to final approval-- 1. of the Highway commission if a Director's Deed is required; or 2. of the Director of Public Works if a Transfer of Control and Possession is required; and that the accep~ance of the purchase price prior to delivery of the conveyance is predicated on that understanding. Section 7.572 -Determination of Public Purpose ~vnere excess lands are proposed to be sold to a public agency pursuant to Section 7.571, above, the Director's Deed shall include, a condition limiting the use to public purposes with reversionary pen~lties. (See Section 8.570 for approved reversionary clauses.) ;s an alternative, a resolution attesting to the proposed public use by the city council, board of supervisors, or board of directors of the public agency to which the property is to be conveyed may be acceptable. If, in the district's judgmant, there is a question concel·ning the nature of the intended use or the length of time the ~roperty is to be used for the public purpose, Headquarters should be advised in order that a decision can be made as to the extent of documentation required, section 7.573 -Time Payment Plan to Other Public Agencies Real property or interest therein may be sold to other agencies by use of an Installment Contract for Sale of Real Property, Pl~tc 7-42. Prior to making any commitment to the public agency concerning authorization of this disposal method, Headgu.:irters Office will be informed by memorandum of all the particulars relating to the proposed sale and pa=ticularly any deviations from the standard installment contract which the distric-::: or public agency may desire. The memorandum shall addit~onally specify the interest rate to be used and shall contain documen- tation that it represents the rate the purchaser would have to pay for borrowed money in the Erivate market. Normally, install- ment contracts will be limited to a five-year term. ','l . ' I< I • Dist.-Co.-Rte.-PH INSTALLMENT CONTRl\CT FOR SALE OF REAL PROPERTY THIS AGREEMENT, made and executed in triplicate this ______ day of ---~-----' 19 __ , by and b'=tween the STATE OF CALIFORNIA, acting by and through the D,apartment of Public Works, hereinafter called "State", and the --------, hereinafter called "Purchaser". WITNESSETH: ~"HEREAS, Purchaser desires to purchase the hereinafter described real property, and WHEREAS; The Director of the Department of Public Works has heretofore found and determined, and does hereby find and detl.:!rmine, in accordance with the provisions of Section 118 of the: Streets and Highways Code, that the hereinafter described real property was acquired for State highway purposes and is no longer necessary for highway purposes and is not now being used for highway purposes, and that the disposition of said hereinafter described property is in the best interests of the State; NOW, THEREFORE, in consideration of the convenants and agreements herein contained and the pe~formance thereof, it is mutually agreed as follows: 1. The State agrees to sell to Purchaser~ and Purchaser agrees to purchase from the State that certain real property situated in the County of ________ described as: (Insert same legal description as will be used in the Director 1 s Deed, incluoing reservation of access rights.) The premises are to be conveyed subject to: {a) Special assessments, if any, restrictions, reservations, easements of record. (b) (Insert other items, such as easements yet to be conveyed out by State, reservations of mineral rights, etc.) 2. Purchaser agrees to pay for the said real property to State the principal sum of (spell out) Dollars, ($ __________ ), with interest thereon from the date Plate 7-41 Page l of 5 hereof at the rate of (spell out) percent ( %) ; ----,---· principal and interest to be due and payable in annual installments as follows: (a) On the aate hereof, the sum of (scell out) Dollars, ($ ), and on the day preceding the first ---,-----=--an n iv er s a r y 0£ the date hereof, and annually thereafter, the su..-n of Dollars, {$ _____ ___,, ____ ) to be applied on the principal and interest agreed to herein, and on the day preceding the applicable) {third, fifth, tenth, etc., anniversary of the date hereof the balance of the principal with interest thereon unless sooner paid in accordance with the provision for additional payments stated below; all installments being payable in lawful money of the United States of America and shall be delivered to the Division of Highways, State of California, at Post Office Box · · -, Cc~lifornia. (bj Each annual installment shall be credited first on interest t11en due and the remainder on principal so credited. (c) Purchaser may make additional payments on the principal at any time before final installment, and interest shall thereupon cease upon said principal so credited. (d) If Purchaser should make default in the payment of any annual installment, or any part thereof, when due as herein provided, and such default should con- tinue for thirty (30) days after notice thereof in writing to Purchaser, then the whole of said purchase price shall at the option of the State become forthwith due and payable. (e} It is understood and agreed that the term of this agreement shall not exceed ________ ( ) years and the Purchaser shall make payment in full including principal and interest within that period. 3. Purchaser agrees to pay all taxes and assessments which are and which may be levied or assessed against said premises v 4. Purchaser shall promptly pay, when due, all water, electric, gas and other utility bills and charges accruing or payable in connection with said premises during the term of this agreement, and to save State harmless therefrom. 5. Purchaser shall promptly pay all indebtedness incurred by acts of the Purchaser on the property or which may become a lien on said premises. Plate 7-41 ~age 2 of 5 ( I \ ( ( c·- ( C C ( ( ( , I, ' \ \ ( (" I \ I' I. l \ ' i ( t \ a 6. Purchase.r may occupy, or permit said prell'l..:.ses to be occupied, for the following uses and purposes only, £or a perioc of _______ ( ___ ) years from the date hereof: For use as {describe intended use such as park, parking lot, storage yard, etc.). Purchase~ shall not sell, lease, convey, assign or transfer said property for private use during sa.id period. 7. Purchaser shall not commit, suu:er or permit any waste on said premises or any acts to be done thereon in violation of any laws or ordinances, and shall not use or permit the use of said premises for any illegal or immoral purposes. 8. Purchaser agrees to keep said premises ln good order and safe condition at Purchaser's own cost and expense and the Purchaser agrees that full inspection of said described premises has been made and that State does not make any covenant respect- . ing ·the condition of any improvements on said premises or make ,. -·-··-- any agreement for alterations, improvements or repairs. 9. Purchaser agrees to indemnify and save harmless the State, its officers, agents and employees against any and all loss, damage and liability which may be suffered or incurred by the State, its officers, agents and employees and against any and all claims, demands and causes of action that may be made or brought against the State, its officers, agents and employees caused by, arising out of, or in any way connected with the condition, use or occupancy of said premises by Purchaser, its assigns, licensees, permittees or invitees. 10. This agreement is not assignable in whole or in part, either by operation of law or otherwise, without the prior written consent of State; provided that Purchaser may permit other parsons to use said premises only for the pur- pose herein above stated. 11. Purchaser may immediately enter upon said premises and remain thereon and use said premises as abov~ provided so long as Purchaser shall fulfill and perform all the agree- ments herein on its part to be fulfilled and performed, and no longer; and if Purchaser should, at any time hereafter, violate or neglect to fulfill any of said agreements or be in default herein in any respect, and such default 9hould continue for thirty (30) days after notice thereof in writing to Purchaser, state shall have the right to declare this agreement teLtt1inated and may retain whatever may have beer. paid on said contract, including principal and interest, and all improvements that may have been placed on said premises, as and fo:c rental for the use of said premises by Purchaser and State may co,sider and treat Purchaser as its tenant holding over without permission and may take i~-nediate possession of the premises and remove Purchaser and its Plate 7-41 Page 3 of 5 agents therefrom, and Purchaser shall be liable to Stat? for any damages incurred therein. In case of any such t:armination, Purchaser hereby agrees, upon deraand of State, to auietlv and peaceably surrender to State the possession of said premises and every part thereof. State, at any time following such termination, may sell and convey the premises, or any portion thereof, free and clear of any rights by Purchaser i~ and to said premises or improvements thereon. 12. All notices herein provideJ to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when made in writing and deposited in the u.~ited states mail, registered or certified and postage prepa~d, a~d addressed as follows: To Purchaser at and to State ( at The address to which the notices shall or may be mailed as aforesaid to either party, may be changed by written notice ( given by either party to the other as hereinbefore provided, but nothing herein contained shall preclude the giving of any notice by personal service. ( · 13. It is agreed and understood that this agreem(:!nt shall cancel and terminate any prior lease or rental agreement by and (. between the parties hereto covering said premises as of the date hereof. 14. This agreement is contingent on obtaining a resolution of the California state Highway Commission persuant to streets and Highways Code section 118, approving and authorizing the manner, tenns and conditions of this agreement. 15. The Purchaser agrees that upon the default of any of the conditions contained herein it will pay all costs and expenses that may arise from the enforcing of this agreew~nt - whether by suit or otherwise, including a reasonable attorney's fee. 16. The Purchaser agrees to assume all risk of damage to or las::; of any improvements on said premises; that no such damage or loss shdll constitute a failure cf. consideration. 17. After full performance by Purchaser of ~ll terms and conditions herein and upon full payment of principal and interest by Purchaser and acceptance thereof by state, State shall deliver to Purchaser a Director's Deed to the above- described premises subject to the exceptions and reservations as hereinabove set forth, and this agreement shall terminate and be of no further force and effect. It is agr~ed that the deed is to be in the form of Exhibit "A" attached to this agreement and made a part hereof. It is hereby understood that the right, title and interest in the property to be con- veyed by this agreement shall not exceed that vested in the Plate 7-41 Page 4 of 5 ( .. t ( ' State of California, and that no policy of title insurance will be furnished by the State in connection wi.th this / transaction. 18. This document contains the entire agreement of the parties hereto and no obligation other than those set forth herein will be recognized. 19. It is mutually understood that time is of the essence of each and all of the provisions of this agreement. 20. This agreement may be terminated, and the provisions thereof may be, in writing, altered, changed, modified or amended by mutual consent of the parties hereto. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed in triplicate by their respective officers._ Purchaser STATE OF CALI~OR!.~IA DEPARTMENT OF PUBLIC WORKS Director of Public Works Plate 7-41 Page 5 of 5