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HomeMy WebLinkAboutResolution No. 7852• a RESOLUTION NO. 7852 RESOLUTION OF THE AZUSA CITY COUNCIL ESTABLISHING THE AMOUNT OF JUST COMPENSATION AND AUTHORIZING MAYOR TO EXECUTE AN OPTION TO PURCHASE AGREEMENT CONCERNING THE PURCHASE OF AN 1887 QUEEN ANNE VICTORIAN HOME, KNOWN AS THE GLADSTONE HOUSE (LOCATED AT 960 E. GAILLARD STREET). WHEREAS, the City of Azusa is committed to Historic Preservation and is searching for a facility to be used as its Heritage House and Museum; and WHEREAS, the Gladstone House is the last historic victorian structure left in Azusa and could be used as a Heritage House and Museum; and WHEREAS, the acquisition and relocation of this structure to City Park is not only consistent with the historic preservation element of the City's General Plan; and WHEREAS, the California Administrative Code, Title 25, Chapter 6, requires that a Fair Market Value be established by a competent and independent appraiser which serves as the basis for the amount of Just Compensation; and WHEREAS, the Gladstone House structure, owned by Mr. Dennis King, has been appraised by one independent appraiser in a competent manner in accordance with the Act and other applicable regulations; and WHEREAS, the Fair Market Value for the structure has been established at $190,000; and WHEREAS, Mr. King has offered to sell the structure at $100,000 according to an Option to Purchase Agreement here to referenced in exhibit A; and NOW, THEREFORE BE IT RESOLVED, that the Azusa City Council determines that the amount of just compensation to be $100,000 for the Gladstone House (960 E. Gaillard Street) and authorizes the Mayor to execute the Option to Purchase Agreement hereto referred in exhibit A effective December 17, 1985. APPROVED AND ADOPTED THIS 6TH DAY OF JANUARY, 1986. EUGENE F. MOSES MAYOR OF CITY OF AZUSA I hereby certify that the foregoing resolution was duly adopted by the City of Azusa at a regular meeting thereof held on the 6th day of January, 1986 by the following vote of the Council: AYES: COUNCILMEMBERS: CRUZ, NOES: COUNCILMEMBERS: NONE ABSEN O N ILMEMBERS. NONE AD PH SOTAS CITY CLERK COOK, CAMARENA, LATTA, MOSES • STATEMENT OF THE BASIS FOR THE DETERMINATION OF JUST COMPENSATION The Determination of Just Compensation is based upon the Fair Market Value established by two qualified independent appraisers. The generally recognized definition of Fair Market Value in California is: "the highest price on the date of valuation that would be agreed by a seller, being willing to sell but under no particular or urgent necessity for so doing and a buyer, being ready, willing and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available" (See California Code of Civil Procedure 1263.320) Property Description: The subject property is identified as Lot 1, Tract No. 27825 as recorded in Map Book 698, Pages 43 and 44 of the Official Records of the Courts of Los Angeles, State of California. Improvements Covered by the Offer: Buildings: (As per attached Description of Improvements) Land and above mentioned improvements ......... $100,000.00 Based upon the Fair Market Value established by two independent appraisals and the City's inspection of the subject parcel, the above mentioned amount is believed to be just compensation for the subject property. Therefore, the City of Azusa's determination of just compensation is not less than its approved appraisal of the Fair Market Value of the property. The Market Data and Value Approaches were the basic methods of estimating value. The Offer of Just Compensation disregards any decrease or increase in the Fair Market Value of the subject property caused by the projects of the City of Azusa or the Community Development Block Grant Program, or by the likelihood that the property would be acquired for such projects, other than that due to physical deterioration within the reasonable control of the owners. Further, the appraisals and determination of just compensation do not reflect any consideration of, or allowances for, any relocation assistance and payments under Title I of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, Chapter 6, Title 25 of the California Administration Code, Section 7262 of the California Government Code, Section 1263.010 of the California Code of Civil Procedures or the City of Azusa's agreement to pay certain settlement costs. The City recognizes that, under certain circumstances, special interests in the real property it proposes to buy, e.g. easements, leaseholds, tenant -owned improvements, life estates and water, gas, oil or mineral rights, may belong to parties other than the recorded title holder. In such cases, the City, after appropriate investigation of the various interests, may apportion its offer of just compensation in accordance with the respective interests of each of the parties involved. The owner, tenant and any other party, or parties with interests, must be in full agreement about any apportionment before the City can conclude an acquisition. • 0 Accordingly, the basis for the determination of just compensation does not include any apportionment for any un -disclosed interest(s) of the type described but rather, reflects a determination based on the City of Azusa's review of independent appraisals made on the subject parcels. • EANIIW7- A • JOHN CUTLER & ASSOCIATES ACQUISITION AGENT'S REPORT DATE: IZ-V744 ' PROJECT: rlodlE CCAS,&6 ) /� PARCEL NO: /C!+✓G NEGOTIATOR (9//%4! ENCLOSED: Agreement of Purchase Grant Deed Rent Statement Receipted Copy of Offer Letter Statement of Identity Quitclaim Deed From Quitclaim Deed From Tenant to Seller's F & E Quitclaim Deed From Seller to Tenant's F & E Demand/No Demand Letter SD77" iD Property Address: /r%O 6,1/1/G/°l Seller's Name: odfuW.c `W kw. Seller's Address: fgy /V G!/ErreiD4E /{r/6 Phone No. Date Owner Signed /�—/7—cS'J Date Escrow to Close ;at Mail check to: BENFFTCTARY - TRUST DEED FIRST Name • /V 41 Address: Loan No PROPERTY DATA SECOND Name: Address: Loan No. Improvements: ( ) Unimproved (V) Improved - No. Units SF/e Manager's Name: �L `/dY Phone No Address: Furniture owned by: Tenancy Information (Leases - Month to Month) Utilities paid by Disposition Remarks: Aff.,12rI7- gs-bo-d�o ro ,B� ns.�D� cvar i.✓ 30 o.�t. REAL ESTATE OPTION This Agreement, made and entered into this 17th day of December 1985 by and between DENNIS W. KING hereinafter called Optionor and CITY OF AZUSA, CALIFORNIA, hereinafter called Optionee. WITNESSETH: In consideration of the payment by Optionee of the sum of TWO THOUSAND FIVE HUNDRED (52,500.00) DOLLARS, lawful money of the United States, receipt whereof is acknowledged by Optionor, Optionor hereby gives to Optionee the EXCLUSIVE RIGHT OR OPTION for a period to and including 5 P.M. of the 1st day of July, 1986 (time being of the essence of this option) to purchase that certain residential structure hereinafter described, and Optionor agrees to sell and convey to Optionee that certain residential structure in the City of Azusa, County of Los Angeles, State of California, located on the following described real property, commonly known as: 960 East Gaillard Street, Azusa, California, upon the following terms and conditions: (Legal description attached as Exhibit "A") (1) The purchase price thereof shall be the sum of ONE HUNDRED THOUSAND ($100,000.00) Dollars, which shall be payable as follows: (a) The sum of ONE HUNDRED THOUSAND ($100,000.00) Dollars shall be in cash. If the option to purchase said real property is exercised by Optionee in accordance with the terms and provisions hereinabove contained, the sum of $2,500.00 paid as consideration for this option shall be considered as payment on account of the cash portion of the purchase price. (2) If Optionee wishes to exercise this option he shall, at his election, either give written notice thereof to Optionor by depositing in the United States N mail, postage prepaid, on or before 5 P.M. of July 1, 1986, a written notice addressed to the Optionor at 739 N. WESTRIDGE AVENUE, GLENDORA, CALIFORNIA 91740, and stating his intention to exercise this option, or he shall, on or before 5 P.M. of July 1, 1986, serve upon Optionor a written notice of his intention to exercise his option. (3) It is hereby agreed that within Thirty (30) days after the date of this agreement, the Optionee will deposit the $2,500.00 referred to hereinabove with the escrow department of Bank of America, Azusa Branch. Upon the Optionee exercising this option escrow instructions incorporating the terms and conditions of the sale shall be developed and executed by both parties. Said escrow shall be for the term of 30 days or until such time that the California State Legislature adopts the budget for fiscal year 1986-1987. (4) In addition to the purchase price referred to hereinabove, the Optionee agrees to complete the following additional items as part of the purchase agreement: 1. The Optionee will fill in the 8 foot cellar at 960 E. Gaillard after the structure is removed. 2. The Optionee will return the stained glass windows to the Optionor after they are replaced. 3. The Optionee will offset the Optionor's building fees to the maximum amount of $3,500.00. 4. The Optionee will acknowledge the Optionor for selling the structure to the Optionee for historic preservation purposes. (5) This agreement shall be binding upon and inure to the benefit of the heirs, executors, administrators and assigns of the Optionor and of the Optionee, respectively. (6) If Optionee shall fail to notify Optionor within the life of this option, of his election to purchase hereunder or if, after giving such notice, Optionee shall either fail to execute the escrow instructions within the time herein limited or shall fail to make the deposit of the purchase price in escrow with said escrow holder within the time limit therein provided, this option shall be thereafter null and void, Optionor shall no longer be bound thereby, and the amount paid as consideration for this option ($2,500.00) shall be retained by Optionor as full consideration for granting this option and for holding the hereinabove described real property for the hereinabove mentioned time. However, if Optionee shall duly elect to exercise his option in accordance with the terms thereof and shall comply with all of the terms and provisions of this option agreement on his part to be performed, then said sum of $2,500.00 paid as consideration for this option shall be credited upon the cash portion of the purchase price. DAE; / 1�S/ W, D IS W. KING CITY OF AZUSA BY: 0 LEGAL DESCRIPTION Lot 1 of Tract 27825, in the city of Azusa, as per map recorded in Book 698 Pages 43 and 44 of Maps, in the office of the county recorder of said county. Exhibit "A" Mr. Lloyd Wood -5- August 15, 1985 Utilities and Services: All normal public utilities and public services are available to the site in the adjacent public street and are apparently connected to the property. Access and Offsites: Access is provided via a public street which is fully asphalt paved with concrete curbs, gutters and sidewalks in place. A concrete driveway apron leads to the subject 31 site. Street lights are in place here. Improvements (6laCLS--,,e F}suse) The subject property is improved with a three story, plus basement, single family residence reported to be built in 1887. The home has a living area of approximately 3_L250± sf. There is no garage or carport on property. This data is based on information supplied us by the Los Angeles County Assessor's Office, from City of Azusa records, and by our physical inspection. The home is of wood frame and clapboard siding construction. It sits on a raised perimeter stone and concrete wall. The multi-facaded roof lines are covered with asbestos shingles. The layout of each of the three floors in this building are shown on the sketches which follow. These sketches, while not to scale, do accurately depict the room configuration and layout. In the mid -1940's this home apparently underwent extensive renovation including new electrical and plumbing systems as well as a hot water system and a furnace. Since that time the subject property has had an apparent normal level of maintenance. The raised first floor has a covered porch which extends around the front of the building. An enclosed spa is located in an alcove off of the porch. The room count here includes a living room, library, dining room, kitchen, a bath and one-half, and a utility porch. There are three fireplaces here. A central hallway which leads to the internal wood staircase leading to the second floor. Reached from the first floor is a basement which encompasses some 400+ sf. The basement has stone walls and a finished 31 concrete floor and exposed. wood beam rafters. It houses a heating unit. I Mr. Lloyd Wood -5- August 15, 1985 The second floor has four bedrooms, two with fireplaces, a central hallway a bathroom and several closets, including a walk in closet. The third floor, which is connected to the second floor by a narrow wooden staircase is divided into two bedroom areas and a small central hallway. In addition, there is a walkin attic area here as well as two closets. The attic houses a heating unit. The subject home has its back to Gaillard Street. This is so because when it was constructed in the late 1800's the land then under the subject ownership apparently extended south to Gladstone Street and consequently the home was oriented to the south. Gaillard Street did not exist at that time. Basic floor covering throughout the home is of finished hardwood. The bathrooms have linoleum floor covering as does the porch. Most of the walls and ceilings are of painted plaster. Some of the ceilings such as in the living room, are of finished wood as well. Most of the windows are of the double hung wood sash type. Several of the exterior windows as well as the window glass frames in the interior of the home have been inserted with contemporary stained glass. Heating is by forced air units. Each room has ceiling chandeliers. A 75 gallon hot water heater serves the home. Each room also has heavy wood molding which in many cases extends around the doors and around the ceiling perimeter, as well as the floor perimeter. The site has an asphalt paved driveway which leads from Gaillard Street adjacent to the home. The front yard is enclosed with a chain link fence with a top rail. The interior perimeters of the site are developed with concrete block as well as wood fencing all of which is apparently located on the adjacent properties. A concrete walk extends around the front of the home. There is a grassed area both in front and in back of the home as well as on its western perimeter. There is no covered parking on the site. The overall quality of the subject improvements is 24 considered to be quite good. The home has existed for more than 100 years and still appears to be of sound quality. F1 E *� If Mr. Lloyd Wood -6- August 15, 1985 r � The home appears to be in average condition considering its advanced age. It has an attractive exterior elevation and the floor plan appears to be functional. The structure has been situated on the site in such a manner that it provides for adequate utilization of the land. However, as has been previously noted, it is unusal in that the front of the home faces the rear of the lot. Zoning: R -1C (Single Family Residential) as per City of Azusa Zoning Ordinance. This zone is the most dense of all of the single family residential zones in the City of Azusa. It allows for a single family residence on each 6,000 sf of land. Uses here are restricted to residences. Highest and Best Use: Highest and best use is defined as that reasonable and probable use that will support the highest present value, as defined, as of the date of the appraisal. Alternately, it is that use, from among reasonably and probable legal alternate uses found to be physically possible, appropriately supportive, finanacially feasible and which results in highest land value. In our opinion, the existing single family residential use 3� on this site represents the subject property's highest and best utilization. This use is consistent with current economic demand in the area, compatible with neighboring environs and is in conformance with local land use policy. Present Use and Occupancy: The subject property has been utilized since its construction as a single family residence. At the present time the subject property is rented out to tenants. VALUATION Approach to Value: Considering that the single family residential use of the subject site represents its highest and best utilization, we believe that both the Market Data Approach has meaning in the valuation of this property. EJ