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HomeMy WebLinkAboutAgenda Statement 1984/03/13 Item 12 COUNCIL AGENDA STATEMENT Item 12 Meeting Date 3/13/84 ITEM TITLE: Resolution ? Entering into a contract with Gerald S. Kibbey & Associates, Inc. for appraisal of the City-owned parcel located on Bonita Road adjacent to the Chula Vista Municipal Golf Course SUBMITTED BY: Community Development Directo 4 the Vote: Yes No X ) REVIEWED BY: City Manage rte. The Department of Community Development has been requested to prepare an RFP for proposals for the development of the City-owned parcel of land located on Bonita Road adjacent to the Chula Vista Municipal Golf Course. This parcel comprises approximately 3.13 acres and is to be developed as a visitor- commercial land use. The RFP will be sent out to the San Diego real estate development community. Concurrently, staff is requesting that the City enter into a contract with Gerald S. Kibbey & Associates, Inc. , for the appraisal of the subject property in order to establish a fair market leasing value. RECOMMENDATION: That the Agency approve the resolution and enter into a contract with Gerald S. Kibbey & Associates, Inc. , for appraisal of the subject property. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: Staff contacted three MAI appraisers who submitted proposals for appraising the subject property. The proposals received were as follows: Gerald S. Kibbey & Associates, Inc. $1 ,500.00 Hilliard Lipman & Associates $1 ,700.00 Lee C. Johnson Company $3,500.00 The submittals by Messrs. Lipman and Kibbey include a narrative report and fair market valuation based upon comparable sales and any mitigation measures which may be necessary to develop the site. Mr. Johnson's price includes a developmental residual study on the site in addition to the normal use of comparables which he believes is necessary in order to provide proper evaluation. Mr. Johnson indicated that he would not undertake the appraisal without a developmental residual study which represents 40% of his fee. Neither Mr. Lipman nor Mr. Kibbey felt that a developmental residual study was necessary to provide an adequate valuation of the site. Page 2, Item 12 Meeting Date 3/13/84 It is the intention of the City to lease rather than to sell the subject parcel. Since the City already owns the parcel and does not anticipate litigation, it is staff's determination that an appraisal based upon comparable values will suffice. It is therefore recommended that Gerald S. Kibbey & Associates, Inc. , be awarded the contract for appraisal of the subject property. FISCAL IMPACT: Since this parcel is not located within a redevelopment project area, redevelopment funds may not be used to pay for the appraisal . However, this project falls under the purview of the City's general economic development program, and construction of a tourist-oriented facility on this site, including a restaurant and/or a motel , will provide jobs to low and moderate-income persons. This is, therefore, a Block Grant eligible expense which may be funded under our economic development revolving fund with the understanding that the cost of the appraisal will be reimbursed to this account once the property is developed and the City is receiving lease revenues. Funds are available in account no. 631-6310-BG122. WPC 1000H by the :t Ch-/L!E Dated 3--"43_ sramarcatil Form No. F-229 12/73 CERTIFICATE OF CITY/DIRECTOR OF FINANCE Certification of Unappropriated Balance I HEREBY CERTIFY that the money required for the appropriation of funds for the purpose set forth in the attached resolution is available in the Treasury, or is anticipated to come into the Treasury, and is otherwise unappropriated. Amount $ Fund Purpose Bidder Director of Finance The City of Chula Vista Date By Certification of Unencumbered Balance I HEREBY CERTIFY that the indebtedness and obligation to be incurred by the contract or agreement authorized by the attached resolution can be incurred without the violation of any of the provisions of the Charter of the City of Chula Vista, or the Constitution or the laws of the State of California, that sufficient monies have been appropriated for the purpose of said contract, that sufficient monies to meet the obligations of the contract are actually in the Treasury, or are anticipated to come into the Treasury to the credit of the appropriation from which the same are to be drawn, and that said monies now actually in the Treasury, together with the monies anticipated to come into the Treasury, to the credit of said appropriation are otherwise unencumbered. Amount Not to Exceed $ 1 .500.00 RESOLUTION NO. 11560 �J Acting Director of Finance The City of Chula Vista Date 3/13/84 By Fund 631-6310-BG122 Dept./Activity Community Development Purpose Contract for appraisal of City-owned parcel located on Bonita Road adjacent to the Chula Vista Municipal Golf Course Bidder Gerald S. Kibbey & Associates, Inc. Certificate No. 59 /? //f 0