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HomeMy WebLinkAboutAgenda Report - March 7, 2018 C-11TM CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: MEETING DATE: PREPARED BY: AGENDA ITEM Adopt Resolution Rejecting the Bid for the Sale of City -Owned Real Property Located at 705 East Lodi Avenue (Former Fire Station 2; APN 043-230-06) March 7, 2018 Business Development Manager RECOMMENDED ACTION: Adopt resolution rejecting the bid for the sale of city -owned real property located at 705 East Lodi Avenue (former Fire Station 2; APN 043-230-06) BACKGROUND INFORMATION: Subsequent to the Council's adoption of Resolution No. 2017-74 on April 19, 2017, declaring its findings of public interest and convenience and intention to sell City -owned real property located at 705 East Lodi Avenue and fixing the time and place of a public hearing, on June 7, 2017 the Council adopted Resolution No. 2017-108, authorizing the City Manager to proceed with the sale of the property. Following the Council's action, staff took steps to proceed with offering the property for sale through an open competitive bid process. As specified in Resolution No. 2017-74, following the bid process, the Council may reject any or all bids, or accept that bid, which will, in its opinion, best serve the public interest. A single purchase offer was received during the bid period, however, the offer is well below the undisclosed appraised value. Staff recommends rejecting the bid as it does not serve the public interest. FISCAL IMPACT: Revenue from the sale will be used to replenish funds borrowed from General Fund capital to fund construction of the replacement project until the sale could be completed. The opportunity cost is unknown and is largely dependent upon the City's need for similar property in the future. FUNDING AVAILABLE: Not applicable. Adam Bru er Business Development Manager APPROVED: er, City Manager RESOLUTION NO. 2018-32 A RESOLUTION OF THE LODI CITY COUNCIL REJECTING THE BID FOR THE SALE OF CITY -OWNED REAL PROPERTY LOCATED AT 705 EAST LODI AVENUE (FORMER FIRE STATION NO. 2; APN 043-230-06) WHEREAS, pursuant to Government Code section 37420 et seq., the Lodi City Council adopted Resolution No. 2017-74, establishing an alternative procedure for the City to sell real property located at 705 East Lodi Avenue, Lodi, California (APN 043-230-06); and WHEREAS, by adopting Resolution No. 2017-74, the City Council fixed May 17, 2017, at 7:00 p.m., or as soon thereafter as the matter may be heard, at the Council Chambers located at Carnegie Forum, 305 West Pine Street, Lodi, California, 95240, as the time and place for public hearing to receive written or oral protests to the City's proposed sale of certain City -owned real property; and WHEREAS, at the May 17, 2017 meeting, the City Council continued the hearing to June 7, 2017; and WHEREAS, at the June 7, 2017 meeting, no oral or written protests were received in opposition to the proposed sale of City -owned property located at 705 East Lodi Avenue and the City Council adopted Resolution No. 2017-108, authorizing the City Manager, or designee, to take the necessary steps to proceed with the sale of the property in the time and manner provided by law (Gov. Code §§37425 and 37426); and WHEREAS, staff took steps to proceed with offering the property for sale through an open competitive bid process; and WHEREAS, a single bid was received, as follows: Bidder Name Frank C. Alegre, Sr. Purchase Offer $321,000.00 WHEREAS, the offer is well below the undisclosed appraised property value; and WHEREAS, Resolution No. 2017-74 indicates, following the bid process, the Council may reject any or all bids, or accept that bid, which will, in its opinion, best serve the public interest; and WHEREAS, staff recommends rejecting the single bid as it does not serve the public interest. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby reject the single bid received for the sale of City -owned real property located at 705 East Lodi Avenue (former Fire Station No. 2; APN 043-230-06). Dated: March 7, 2018 I hereby certify that Resolution No. 2018-32 was passed and adopted by the City Council of the City of Lodi in a regular meeting held March 7, 2018, by the following vote: AYES: COUNCIL MEMBERS — Chandler, Johnson, Kuehne, Mounce, and Mayor Nakanishi NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None NNIFER FERRAIOLO City Clerk 2018-32