Title
Subject: Surplus Real Property-East 17th Street and 42nd Avenue
From: Community and Economic Development Agency
Recommendation: Approve Final Passage (Second Reading) of an Ordinance authorizing the City Manager to enter into an offer to purchase agreement with Elena Delgadillo the adjoining property owner for 2,213 square feet of surplus real property located at East 17th Street and 42nd Avenue in the amount of $2,213.00
Body
WFICE OF H-E CIT f CL ER?,,
CITY OF OAKLAND
Agenda Repor 200" JUN 1 2 Pt I 2: 32
TO: Office of the City Manager
ATTN: Robert C. Bobb
FROM: Community and Economic Development Agency
DATE: June 24, 2003
RE: ORDINANCE AUTHORIZING THE CITY MANAGER TO ENTER INTO
AN OFFER TO PURCHASE AGREEMENT WITH ELENA
DELGADILLO THE ADJOINING PROPERTY OWNER FOR 2,213
SQUARE FEET OF SURPLUS REAL PROPERTY LOCATED AT EAST
17TH STREET AND 42ND AVENUE IN THE AMOUNT OF $2,213.00.
SUMMARY
Ci@ Council approval is requested for the sale of a City-owned surplus property located at East
1 71 Street and 42 Id Avenue to the adjoining property owner at its fair market value. The Real
Estate Division is renewing its efforts to generate additional revenue and reduce the City's
maintenance expenses through the proactive identification and disposal of surplus property. The
City-owned property located at East 17 1h Street and 42 Id Avenue has been declared surplus
property and available for disposal.
Due to a variety of reasons, the City of Oakland (City) has been unable to dispose of this surplus
property. The staff reinitiated discussions with the adjoining property owner, Elena Delgadillo
for the purchase of this City-owned surplus property. A legal description was developed which
determined that the irregular surplus property strip contains 2,2 13 square feet. After further
negotiations, an agreement was reached to purchase the surplus property at its fair market value
of $2,213.
Staff recommends adoption of the Ordinance authorizing the City Manager to enter into an Offer
to Purchase Agreement with Elena Delgadillo for the surplus property located at East 17'h Street
and 42 Id Avenue at its fair market value. Adoption of this Resolution satisfies Mayor and City
Council Goals by providing opportunities to facilitate development, and by reducing blight and
nuisance.
FISCALIMPACT
The Real Estate Division will recover S 1,500 for their staff time, document preparation, appraisal
fee, and administrative costs associated with the sale of the property which shall be reimbursed
to the Surplus Property Program (Fund 1010, Org.89639, Project P47010). The remaining
S713.00 shall go to the Public Works Agency, since the Property was originally purchased as
part of a street-widening project.
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O"Council
July 15,2003 iag t ec
40 June 24, 2
Robert C. Bobb Page 2
June 24, 2003
In addition, the Oakland Redevelopment Agency will receive its share of the future property
taxes once the property has been returned to the property tax rolls and the City will save the
ongoing maintenance costs associated with the property. The purchaser will be responsible for
all escrow and closing costs and liability exposure.
BACKGROUND
The City-owned property is a vacant rectangular shaped property containing approximately
2,213 square feet. It has frontage along East 17"' Street and 42 dAvenue and is not capable of
0
independent development. The proposed sale would be conditioned upon the property being
merged with the adjoining property located at 4121 East 17'h Street. After assembling the City-
owned property with the adjoining property, the development densities beyond the existing
zoning levels would not be increased. The sale would also be conditioned upon a deed restriction
prohibiting any ingress and egress from 42'd Avenue.
The City's Real Estate Division has determined the fair market value of the surplus property to
be S2,213. The adjoining property owner has agreed to purchase the surplus property at its fair
market value of $2,213. There are no city subsidies involved in the sale of the surplus property.
KEY ISSUES AND IMPACTS
This property is presently a burden on the City because of maintenance and liability concerns.
The selling of this property will maximize the City's economic and non-economic returns by
getting the property back on the property tax rolls, eliminating the ongoing maintenance,
reducing future litigation exposure and generating additional property tax revenue to the City.
Disposition of this surplus property will be conditioned upon the property being merged with the
adjoining property at 4121 East 17th Street. In addition, Ordinance No. 5119 C.M.S. restricts the
owners of the abutting land from ingress and egress from 42nd Avenue and will be deed
restricted to reflect that situation.
SUSTAINABLE OPPORTUNITIES
Economic: The sale of this property will make blighted and underutilized sites available for
development and increase tax revenue for the City.
Environmental: This property is close to major public transportation nodes and may encourage
use of BART and AC Transit, which will case general pressure on the region's
congested transportation infrastructure.
Social Equity: The sale of this property will provide an opportunity for citizens to participate in
owning real estate in the City of Oakland and assist in promoting real estate
activity in the area, which is consistent with the environmental and recreational
goals of the City.
Item_L@-Pcjcl
ORA/Council
July 15, 2003
Robert C. Bobb Page 3
June 24, 2003
DISABILITIES AND SENIOR CITIZEN ACCESS
Adoption of this Ordinance will have no direct impact on disabled and senior citizen access.
However, any public improvements that may be required will provide appropriate access for
disabled citizens and senior citizens.
ACTION REQUESTED OF THE CITY COUNCIL
Staff recommends adoption of the Ordinance authorizing the City Manager to enter into an Offer
to Purchase Agreement with Elena Delgadillo the adjoining property owner for 2,213 square feet
of surplus real property located at East 17 1h Street and 42dAvenue in the amount of $2,213.
Respectfully submitted,
ROBERT C. BOBB
City Manager for the
Community and Economic Development Agency
APPROVED FOR FORWARDING TO THE
FINANCE AND MANAGEMENT COMMITTEE
Prepared by:
Frank Fanelli, Manager
Real Estate Services
Item 10-ti CIC/
ORA/Council
July 15,2003
Finance an
FNTRODUCED BYC0L-NC1LME%1BER APPROVEO.AS TO OPN,,@A@,_,ECALIT@
We
.')FFICE 0@ T@17 C.1T i '@ILER@
ORDINANCE NO. dMJR I/ PM 2:33
ORDINANCE AUTHORIZING THE CITY MA_NAGER TO ENTER INTO AN OFFER
TO PURCHASE AGREENIENT WITH ELENA DELGADILLO THE ADJOINING
PROPERTY OWNER FOR 2,213 SQUARE FEET OF SURPLUS REAL PROPERTY
LOCATED AT EAST 17TH STREET AND 42ND AVENUE IN THE AMOUNT OF
$2,213.00
WHEREAS, the City of Oakland ("City") owns a2,2t3 square foot, vacant parcel ofland
located at the northeast comer of East l7th Street and 42nd Avenue, adjacent to Assessor's Parcel
Number 033-2 148-003, described in Exhibit "A" attached hereto (the Property); and
WHEREAS, the Property is a remnant of the 42nd Avenue Road Widening Improvement
Project which has been completed; and
WHEREAS, a legal description has been developed that indicates that the Property is
2,213 square feet in area; and that no easements encumber the property; and
WHEREAS, there will be a deed restriction prohibiting vehicular ingress or egress from
42nd Avenue; and
WHEREAS, the Property being less than 5,000 square feet is not subject to the California
Surplus Lands Act (California Government Code 54220-5432), but is subject to City Ordinance
No. 1 1602, C.M.S., covering sales of surplus City-owned property; and
WHEREAS, the Property being less than 2,500 square feet is not subject to Planning
Commission zoning review, but is subject to all other procedures of City Ordinance No. 11602,
C.M.S., for sale of City-owned properties; and
WHEREAS, Real Estate Services market analysis of the Property indicates a market value
of S2,213.00; and
WHEREAS, (liv Property is not legally developable as a separate parcel and the sale is
conditioned upon it being merged with the adjoining property at 412 t East 17th Street; and
WHEREAS. Elena Delgadillo, the owner of the abutting property, has tendered an offer to
purchase the Property in the amount of S2,' 13, at its fair market value, and has executed a Offer to
Purchase Aareement in that amourit@ now therefore:
Itern ID-
ORATC-ouncil
July 15, 2003
THE COUNCIL OF THE CITY OF OAKLAND DOES ORDAIN AS FOLLOWS:
SECTION 1. The City Council finds and determines that the tierein-described real property is not
needed for any public purpose, is surplus to the needs of the City, and the City is
not required to put the Property out for competitive bidding, and the sale of the
Property to the adjoining or abutting owner is in the City's best interests.
SECTION 2. The City Mana.ger is authorized to execute and accept the Offer to Purchase
Agreement from Elena Delgadillo for the sum of S2,213.00. and to execute a deed
conveying the Property subject to a deed restriction prohibiting any vehicular
ingress and earess from 42nd Avenue.
SECTION 3. The City Manager or his designee is hereby authorized to take all actions as may be
I
required to carry out the intent of terms of the Option to Purchase Agreement and
this Ordinance.
SECTION 4. The Option to Purchase Agreement for this Property shall be approved as to form
and legality by the City Attorney's Office.
SECTION 5. Real Estate Division 's administrative costs associated with the sale of the property
S 1,500 shall be reimbursed to Fund 1010, Org.88639, Aect-481 I 1, Project P47010
Sur-plus Property Program and the remaining $713.00 shall go to the Public Works
Agency, since the Property was originally purchased as part of a street-widening
project.
SECTION 6. This Ordinance shall take effect immediately upon its passage.
IN COUNCIL, OAKLAND, CALIFORNIA. 2003
PASSED BY THE FOLLOWING VOTE:
AYES BROOKS, BR!,TNNEFL CHANG. NADEL. QUA_N.REID. WAN. AND
PRESIDENT DE LA FUFNTE
NOES-
ABSENT-
ABSTENTION-
ATTEST:
CFnAFLOYD
Ciw Clerk and
ofEheCirvo Item
la _- V
ORA/Council
July 15, 2003
NOTICE AND DIGEST
ORDINANCE AUTHORIZING THE CITY MANAGER TO ENTER INTO AN
OFFER TO PURCHASE AGREENIENT WITH ELENA DELGkDILLO THE
ADJOINING PROPERTY OWNER FOR 2,213 SQUARE FEET OF SURPLUS
REAL PROPERTY LOCATED AT EAST 17TH STREET AND 42ND AVENUE
IN THE AMOUNT OF $2,213.00
An Ordinance has been prepared authorizing the City Manager to sell a City-owned
surplus real property located at East 17'h Street and 42 d Avenue to the adjoining property
owner for its fair market value of S-2,213.00. The City-owned property is a vacant
rectangular shaped property containing approximately 2,2 13 square feet. It has frontage
along East 17 1h Street and 42 d Avenue and is not capable of independent development.
The proposed sale would be conditioned upon the property being merged with the
adjoining property located at 412t East 17 1h Street After assembling the City-owned
property with the adjoining property, the development densities beyond the existing
zonin- levels would not be increased. The proposed sale would also be conditioned upon
a deed restriction prohibiting -any ingress and egress from 42" Avenue.
The adjoining property owner has agreed to purchase the surplus property at its fair
market value of $2,2 13.00. There are no City subsidies involved in the safe of the surplus
property.
item 10.
ORA/@C_t'ouneil C
J111Y 15, 2003