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Home My WebLink About2006-10-17; City Council; 18761; Sale of 4120 Skykline DrCITY OF CARLSBAD - AGENDA BILL AB# 18,761 MTG. 10-17-06 DEPT. ED Authorization of the Sale of 4120 Skyline Drive, Carlsbad California DEPT. HEAD (^fff^ CITY ATTY. /^ CITY MGR. \jJ^- RECOMMENDED ACTION: Adopt Resolution No. 2006-298 approving the sale of 4120 Skyline Drive (APN 207-083- 17), authorizing the City Manager or his designee to provide and execute all documents necessary to accomplish the sale, and authorizing the Mayor to execute the Grant Deed transferring ownership of APN 207-083-17 to SW Management Inc., Richard Stearns, Lance Nowak or Assignees. ITEM EXPLANATION: On December 4, 2001, the City of Carlsbad City Council accepted a Testamentary Devise from Margaret M. Brownley, whereby she would leave her residence to the City upon her death. Mrs. Brownley structured the bequest to include reservation of a life estate to Ms. Barbara Mailman. Mrs. Brownley passed away in October 2003 and Ms. Hallrnan continued to reside in, and maintain the home. In 2005, the attorney for Mrs. Brownley's estate contacted the City Attorney's office to inform the City that Ms. Mailman would be making alternate living arrangements and that she would be relinquishing her rights to the home. In 2006, fee title to the property was transferred to the City of Carlsbad. Since the property is a single family residence located in a residential neighborhood, no appropriate public use of the property has been identified. In addition, numerous inquiries from the public were made as to whether or not the City would consider selling the property to private individuals, if it did not intend to occupy or use the property. In July an appraisal was conducted to determine the market value of the home. In August 2006, the City Council directed staff to prepare the home for a negotiated sale and refer the item to the Planning Commission for a determination of General Plan consistency. On September 6, 2006, the Carlsbad Planning Commission approved a resolution determining that disposition of the property is consistent with the General Plan. On September 12, 2006 the property was listed in the Multiple Listing Service and posted for sale to the public. Within one week of listing the property, multiple offers were received. The City Council met on September 26, 2006 with its negotiator and evaluated all offers, selecting the highest from SW Management Inc. and Assignees Richard Stearns and Lance Nowak. FISCAL IMPACT: After the payment of all escrow fees, brokerage commissions and other costs associated with the sale of this property, the net proceeds are estimated at approximately $1,370,000. After costs are deducted, all remaining monies, will be deposited into the City's General Fund until such time as use of the funds is established by the City Council. Page 2 ENVIRONMENTAL IMPACT: The Planning Director has determined that the project is exempt from the California Environmental Quality Act, pursuant to Section 15301 of the CEQA Guidelines. Section 15301 exempts projects or activities that consist of sale of real property involving no change or expansion of use. Sale of a single family residence, with existing use as a single family residence, and no other plan for development of that property, is such an activity. Should the new owners decide to pursue a change in the property through development of the site at a future date, additional environmental review will be conducted. EXHIBITS: Resolution No. 2006-298 DEPARTMENT CONTACT: Cynthia Haas 760-434-2732 chaas(5?.ci.carlsbad.ca.us FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED D D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES D D D D 1 RESOLUTION NO. 2006-298 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE SALE OF 3 4120 SKYLINE DRIVE, AUTHORIZING THE CITY . MANAGER OR HIS DESIGNEE TO PROVIDE AND EXECUTE ALL DOCUMENTS NECESSARY TO 5 ACCOMPLISH THE SALE, AND AUTHORIZING THE MAYOR TO EXECUTE THE GRANT DEED TRANSFERING 6 OWNERSHIP OF THE PROPERTY TO SW MANAGEMENT INC., RICHARD STEARNS, LANCE NOWAK OR 7 ASSIGNEES. 8 WHEREAS, On December 4, 2001 the City Council accepted a Testamentary Devise from Margaret M. Brownley; and 11 WHEREAS, The Testamentary Devise provided for the City to assume 12 ownership of her residence upon her death, with a life estate reserved for her friend Ms. 13 Barbara Hallman; and 14 WHEREAS, Mrs. Brownley passed away on October 21 , 2003, with Ms. Hallman 15 maintaining possession of the home through her life estate; and 16 WHEREAS, Due to personal reasons, Ms. Hallman elected to terminate her life 17 estate in favor of the City of Carlsbad; and18 WHEREAS, the City has been unable to identify an appropriate public use of the 2Q property; and 21 WHEREAS, the City Council determined that the City would be best served if the 22 property were offered to the public through a negotiated sale; and 23 WHEREAS, the Carlsbad Planning Commission determined that disposition of 24 the property is consistent with the General Plan; and 25 WHEREAS, the City authorized the property to be publicly posted and listed for 26 sale in the San Diego Multiple Listing Service; and 27 3 1 WHEREAS, multiple offers were received on the property with the highest offer 2 from SW Management Inc., Richard Stearns, Lance Nowak, and Assignees. 3 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 4 Carlsbad, California, as follows: 5 1. That the above recitations are true and correct. 6 2. That sale of the property at 4120 Skyline Drive is approved. g 3. That the City Manager or his designee is authorized to provide and 9 execute all documents necessary to accomplish the sale. 10 4. That the Mayor is authorized to execute the Grant Deed transferring ownership to SW Management Inc. Richard Stearns, Lance Nowak, or 12 A -Assignees. 13 5. That the net proceeds from the sale of the property will be deposited into 14 the General Fund. 16 " 17 // 18 // 19 // 20 „ 21 // 22 // 23 // 24 //25 26 " 27 " q 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 17th day of October, 2006, by the following vote: AYES: Council Members Lewis, Hall, Kulchin, Packard, Sigafoose NOES: None ABSENT: None ATTEST: LORRAINE M. WOOD, City ClenV (SEAL)