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Ordinance 2879 and Staff ReportE 0 0 cn w v m 0 1• CITY OF ALAMEDA ORDINANCE NO. 2879 New Series APPROVING AND AUTHORIZING THE SALE OF CITY OWNED PROPERTY LOCATED AT 2834 ADAMS STREET, ALAMEDA, CALIFORNIA, AND WAIVING THE THIRTY (30) DAY DELAY IN EFFECTIVE DATE PURSUANT TO CHARTER SECTION 3 -12 WHEREAS, in a 1992 court approved Judgment of Distribution and pursuant to the 1990 Will of Margaret Howard- LaVoie, real property at 2834 Adams Street in Alameda, California was devised to Avis and Roger Jones in the form of a life estate; and WHEREAS, pursuant to the 1992 Judgment and the 1990 Will, upon the death of departure of Avis and Roger Jones from the residence at 2834 Adams Street, the property would be distributed to the City of Alameda to be used for a senior citizen program; and WHEREAS, Ordinance No. 2860, adopted by the City Council on July 17, 2001, authorized acquisition by Quitclaim Deed that real property located at 2834 Adams Street, Alameda, California; and WHEREAS, it is in the City's best interest that the currently vacant property, which is in need of foundation and termite repair, be sold, repaired and occupied, and that the proceeds from the sale be placed in a trust account for senior citizen programs; and WHEREAS, after listing the property and conducting two weekend open houses, the City has received a purchase offer from Anthony P. Appleby and Joseph A Landry to purchase the property located at 2834 Adams Street on an "as is" basis; and WHEREAS, the buyer's offer is contingent on their loan approval through a commercial lending institution at a certain interest rate, which loan approval shall expire within thirty days; WHEREAS, Section 3 -10 of the City Charter requires the affirmative vote of four members of the City Council and the adoption of an Ordinance in order to authorize a sale of real property; and. WHEREAS, pursuant to section 3 -12 of the City Charter, Council may, with a finding of necessity and four votes of Council, waive the thirty (30) day delay in effective date of the Ordinance; and WHEREAS, in order to close escrow on this property within 30 days and avoid triggering the contingency and loss of the loan, it is necessary to waive the thirty (30) day delay in effective date pursuant to Charter Section 3 -12. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Alameda, upon the affirmative vote of four members of the Council that: Section 1. That the City of Alameda convey unto buyers Anthony P. Appleby and Joseph A Landry, all that certain property known as 2834 Adams Street, Alameda, California. Section 2. That the proceeds from the sale of the property will be placed in a trust account established for a senior citizen program in compliance with the 1992 Court Judgment. Section 3. That the City Manager or his designee is hereby authorized and directed to execute, for and behalf of the City of Alameda, a deed conveying said real property to Anthony P. Appleby and Joseph A Landry, and the City Clerk is directed to attest to the same. Section 4. Pursuant section 3 -12 of the City Charter and the finding of necessity stated above, this ordinance shall be in full force and effect immediately following the day of its final passage. Attest: kaara W 'Sl City Clerk Pres tv Council I, the undersigned, hereby certify that the foregoing Ordinance was duly and regularly adopted and passed by the Council of the City of Alameda in a regular meeting assembled on the 2nd day of April, 2002 by the following vote to wit: AYES: Councilmembers Daysog, DeWitt, Kerr, and Mayor Appezzato - 4. NOES: None. ABSENT: Councilmember Johnson - 1. ABSTENTIONS: None. IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official seal of said City this 3rd day of April, 2002. Gck,f,r , . L ara Weisiger, City Clerk City of Alameda CITY OF ALAMEDA Memorandum Date: March 12, 2002 TO: Honorable Mayor and Councilmembers FROM: James M. Flin City Manager SUBJECT: Introduction of an Ordinance Approving and Authorizing the Sale of City Owned Property at 2834 Adams Street, Alameda, California, and Waiving the 30 Day Delay in Effective Date Pursuant to Charter Section 3 -12 (Requires 4 Affirmative Votes) BACKGROUND At its meeting of July 17, 2001, the City Council adopted an ordinance approving the acquisition a single family home located at 2834 Adams Street, Alameda, CA. This property was bequeathed to the City of Alameda by Margaret Howard -La Voie based upon a 1992 court approved Judgement of Distribution to be used for a senior citizen program. Due to the age of the building and the extensive renovation work required to bring the property to current building standards, it was recommended that the property be sold in "as is" condition and that the proceeds from the sale be placed in a trust account for senior citizen programs. Request for Proposals for the sale of the property were solicited in November 2001. Kane & Associates were selected as the real estate broker for the sale of the property based upon their business qualifications, sales commission fee and marketing plan. DISCUSSION & ANALYSIS The listing price of the property is $309,000. A property inspection was conducted by Inspection Pro's, Inc. and described property improvements at an estimated cost of more than $35,000. The primary improvements recommended include the replacement of the brick foundation for $22,500 and repairs for termite and damaged woodwork for $11,100. Two weekend open houses were held in February with a large number of people viewing the property. Four (4) offers were received to purchase the house. One offer was withdrawn after reviewing the property inspection report, and two offers were submitted at lower purchase prices. Dedicated to Excellence, Committed to Service Re: Intro of Ordinance #4 -G CC 3 -19 -02 Honorable Mayor and Councilmembers Page 2 March 12, 2002 The purchase offer for the house in "as is" condition in the amount of $285,000 has been accepted from Anthony Appleby and Joseph Landry. The buyers have been approved by the lending institution for the real estate purchase of $285,000. The completion of the sale will be effective upon the recordation of the deed of trust after the final adoption of the Ordinance approving the sale of property by the Council. It is recommended that the Council introduce the Ordinance on March 19, 2002 and adopt the Ordinance on April 2, 2002 to be effective immediately. Pursuant to Charter Sec. 3 -12, the ordinance may become effective immediately upon final passage with 4 votes so long as the ordinance is enacted in the event of great emergency or necessity because there is the imminent possibility that the interest rates will increase, the lending institution will only guarantee the current high bidder's loan for thirty (30) days, the City has received only four offers after the house was shown to a large number of prospective purchasers, and the house requires repairs estimated at more than $35,000. This will preserve the current interest rate for the financing of the loan for the property and insure the sale of the property. FISCAL IMPACT The proceeds from the sale of the property will be placed in a trust account established for a senior citizen program in compliance with the Court Judgement. There will be no cost impact to the General Fund. The estimated proceed from the sale to the City of Alameda is $267,000. RECOMMENDATION The City Manager recommends that the City Council introduce an Ordinance approving and authorizing the sale of City owned property located at 2834 Adams Street, Alameda, California, and waiving the 30 day delay in effective date pursuant to Charter Section 3 -12 (requires 4 affirmative votes). so /citycounci ladamsstsale31902 Respectfully submitted, Suza ta, Director Rec = ation and Park Department Dedicated to Excellence, Committed to Service