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Home My WebLink AboutItem 8.2 SaleOfPublicProperty (2)CITY CLERK AGENDA STATEMENT CITY COUNCIL MEETING DATE: January 7, 1997 SUBJECT: Sale of Public Property - Renmant Parcels from Dublin Boulevard Extension Acquisition. Report by: Greg Reuel, Economic Development Director EXHIBITS ATTACHED: RECOMMENDATION'~ Exhibit 1: Exhibit 2: Exhibit 3: Location Map Letter Of Interest "LOI" from DCI/Main Street Properties dated December 20, 1996 Dublin Restaurant List Authorize Staff to prepare a purchase/sale agreement with Main Street Properties under the terms and conditions set forth in the attached Letter of Interest. FINANCIAL STATEMENT: The City's remnant parcels that combined equal 22,000 sq. ft., are being offered for sale at a price of $245,058 or $11.14 per sq. ft. DESCRIPTION: In the process of purchasing property for the Dublin Boulevard Extension, the City acquired two parcels which were larger than necessary for the street right-of-way. Two small parcels of land were left over as excess property on the north side of Dublin Blvd. from the purchase of right-of-way property needed for the build out of the Dublin Blvd. Extension project. The two parcels are contiguous and represent 22,000 sq. ft. Government Code requires that prior to sale of public property, the CiD; must offer the property to area recreational and housing agencies. This was done and none of the agencies were interested in purchasing the parcels. Municipal Code (2.38) also requires the City to offer the property to adjacent land owners and if not acquired by these entities, to notice the property for sealed bids. The remnant parcels were offered to the adjacent properties owners and publicly offered through a sealed bid procedure in 1995. The City did not receive any offers for the remnant parcels from the adjacent property owners or through the sealed bid process. The City has sold an access easement over a comer of the westerly remnant parcel to allow the adjacent property owner to the west to have driveway access onto Dublin Boulevard. This easement was sold for a value of $19,312. H/grcg/land doc COPIES TO: ITEM NO. The development of the northeast comer of Dublin Boulevard and Dougherty Road is an important visual area of the City. Planning and Economic Development Staff have been working with the owners of this land for a coordinated and quality development. Shell Oil Company and C & J Cox Corp. have entered into a long term lease on the property, now' occupied by Harrison Marine and will start construction on a new facility the early part of 1997. The undeveloped property wrapping around the newly proposed Shell Station is a 6 acre parcel owned by J. Patrick Land Company (JPLC). Management of JPLC has been working with City Staff on a Planned Development for their property that would work in conjunction with the City's renmant parcels. A concern was voiced by City Staff of chopping up the JPLC parcel into too many small parcels which started the idea of combining the City's remnant parcels with part of JPLC land for a sit-down restaurant site: When JPLC received a contract for a 92 unit hotel on part of their property, the idea of creating a site large enough for sit down restaurants next to the hotel seemed to compliment the planning for the area. Although the two City remnant parcels are irregular in shape and too small individually for development, when combined with part of the contiguous property owned by JPLC, a building site of approximately 42,000 sq. ft. is created which is large enough for most sit-down restaurants. Staff presented the idea of combining the two sites to a number of restaurant operators and developers and subsequently, received the attached Letter of Interest from Main Street Properties through their broker DCI. If the Council is in agreement with the price and terms of the LOI from Main Street Properties, then Staff needs to proceed with a purchase and sales agreement with Main Street Properties under the terms outlined in this letter. ANALYSIS Although Dublin has 57 restaurants, ( see Exhibit 3), the majority of eateries in the City are fast food oriented with limited sit-down service. Also, there is a lack of restaurants on the eastern side of Dublin with no restaurant establishments along Dougherty Road. The development of a sit-down restaurant on the proposed site will be able to offer dining services to the growing eastern part of Dublin, attract patronage from freeway traffic that exits at Dougherty Road, and give food and beverage service to the new proposed Fairfield Hotel. Staff is interested in attracting a restaurant that offers sit-down service with a building size ranging from 3,000 sq. ft. to 6,000 sq. ft. It is also anticipated that the selected restaurant will serve breakfast, lunch and dinner meals. PROCESS As indicated in the LOI, Main Street Properties has asked for 60 days to identify and check the feasibility of developing a restaurant on the City's property and part of the JPLC property. Main Street Properties then has 120 days to receive land use entitlements after the feasibility period and another 60 days to obtain building permits. Having these milestone dates as part of the development agreement will help ensure that the site is developed in a timely manner. The City and J. Patrick Land Company will be using similar sales and development agreements with Main Street Properties in order to keep terms of the land sales consistent. DJ +1 0 >~ I-- Z o C) EXHIBIT 1 December 20, 1996 Richard C. Ambrose City of Dublin 100 Civic Plaza Dublin, CA 94568 D.C.i. Re: LOI Dublin Boulevard Dublin, California Dear Richard: Main Street Properties has interest in purchasing the herein referenced property based on the following terms and conditions: Property: Price: Deposit: Payment: Identification Period: Feasibility Period: Approximately 22,000 useable sq. Pt. of land located one parcel east of the northeast intersection of Dublin Boulevard and Dougherty Road, Dublin, California as outlined on the attached Exhibit "A". $245,058 ($11.14 per sq. ft.). $10,000 within five (5) days form the execution of Purchase Agreement Escrow to be handled by Chicago Title Company, Pleasanton, California. Deposit is refundable during the Feasibility Period and becomes non-refundable after 60 days from the execution of the Purchase Agreement, except for permitting issues. All cash at the close of Escrow. Buyer has sixty (60) days form the date of execution of Purchase Agreement to present Seller with signed Letter of Interest identifying the Owner/Occupant ("sit-down" restaurant). Sixty (60) days from the date of execution of Purchase Agreement, Buyer shall have investigated all issues related to the development. Water and sewer connection charges will be reviewed during the feasibility period DEVELOPMENT CONSULTANTS 1630 North Main St., Ste. 167 · Walnut Creek, CA 94596 510-274-1999 · FAX 274-1998 lNG. EXHIBIT 2 Richard C. Ambrose December 20, 1996 Page 2 Permitting Period: Extensions: Close of Escrow: Title: Environmental: Exclusive Listing: Broker Commission: Buyer shall have 120 days from the expiration of Feasibility Period to obtain land use entitlements. After land use entitlements are obtained, Buyer shall have sixty (60) days to acquire building permits, None. Sixty (60) days from date of land use entitlements. Seller shall execute quitclaim of all rights, title, and interest in said property at close of escrow subject to Buyer's approval. Buyer shall accept Property in its "AS IS, WHERE IS" condition without any warranties. To the best of Seller's ~knowledge, without duty of inquiry, the Property does not contain asbestos, hazardous materials, toxic or petroleum products. This Letter of Intent does not include an exclusive listing agreement with D.C.I.. This Letter of Intent applies only to Seller, Buyer, and owner/occupant identified in Identification Period. Seller shall not be responsible for the payment of brokerage commission on the sale of the subject property. Conditions to Closing: No Representation: E Mutual execution of a Purchase Agreement. Buyer obtaining land use entitlement and building permit within sixty (60) days of obtaining land entitlements. Buyer's approval of title, environmental investigations, and all aspects of property and contemplated development, both physical and financial, during the Feasibility Period. Subject to Buyer's approval of sewer and water connection fees form DSRSD, during Feasibility Period. Subject to Buyer's ability to acquire adjacent property form J. Patrick Land Company. The City makes no representation that will grant any land use or other permits for the property or any use of it. LOIDUBLN.WPS Richard C. Ambrose December 20, 1996 Page 3 Based on the agreement to all of the above terms, Seller shall represent the terms of this agreement to the City Council for their approval. Upon approval, City Staff.will be authorized to draft a Purchase/Sales Agreement for Buyer's review. This proposal shall be valid only if executed by Buyer on or before January 7, 1997. The herein outlined proposal is for discussion purposes only. None of the parties involved shall incur any obligation or liability until and unless a Purchase/Sale Agreement is fully executed by the parties. Sincerely, ...,.. .-ffandy a-gh Agreed & Accepted ' ,treet P;,;pe ties Buyer Date Richard C. Ambrose City of Dublin Seller Date LODUBLN.WPS Alphabetical List of Restaurants in Dublin Restaurant :,~ ~;,,~. :-":,~.)~ # of employees Phone # Address Athe'~'~ Bu-rg~' ............ I ...... 5' i803-8135 Dublin BI 6999 Bagel Bakery of Dublin I 3 1829-5434 Reg onal St 7168 Baskin-Robbins I 4 1828-6033 1Regional St 7225 Burger King 15 !828-1951 16921 Regional St Cad's Junior 24 1829-0513 Dublin BI 7120 Carrow's 19 828-9725 Dublin BI 7505 Casa Orozco 4 !828-5464 Amador Valley BI 7995 Casper's Hot Dogs 5 1828-2224 Village Pkwy 6998 Celebrity's 3 1803-9855 Amador Valley BI 6694 China Village 7 1829-5292 Regional St 7200 Chuck E. Cheese 20 i803-0101 Amador Valley 7448 Coco's 22 !829-4779 Dublin BI 7944 Copper Skillet 15 i828-4731 Amador Valley BI 7265 Country Waffles I 7 !833-9077 San Ramon Rd 72 74 Dough Boy's Donuts I 2 1829-4774 Amador Valley BI 7867 Dublin Buffet 7 i828-6128 Amador Valley BI 7793 Dublin Corral 10 i828-4333 Dublin BI 11851 Dublin Fish & Chips I 828-6999 Amador Valley BI 7410B El Sombero 10 843-1311 Village Pkwy 6568 El Torito 60 i828-5412 Amador Plaza Rd 7202 Eric's Deli Cafe 5 1829-1414 Amador Valley BI 7603 Evert & Jones Barbeque !803-8568 Village Pkwy 7083 Evie's Place 2 i828-1942 Amador Valley BI 7459 Fandango's 1 !829-3234 Amador Valley BI 7485 Foster's Freeze 4 828-5455 Amador Valley BI 7989 Frankie Johnnie Luigi Too 40 828-9380 Dublin BI 11891 Gallagher's 3 828-5996 Amador Valley BI 7851 Garlex Pizza 5 828-8600 Amador Valley BI 7994 Golden Phoenix Chinese 4 1833-2613 Dublin BI 6608 Great Wall Chinese 2 i829-7161 San Ramon Rd 8925 Hana Japan Steak House 3 1829-7491 San Ramon Rd 7298 Harvey's Restaurant 828-7.750 tRegional St 6682 Hayward Fishery 25 828-8882 ISan Ramon Rd 7400 Hunan House 6 829-9720 Village Pkwy 7111 Jack-In-the-Box i 10 1828-2040 V tlage Pkwy 7265 Johnny's Donuts r 2 1828-9252 Village Pkwy 7355 Kentucky Fried Chickent 15 828~2 Village Pkwy 6797 Koto Japanese Cuisine 1 1833-1646 Amador Valley BI 7723 Los Pericos t 2 556-9127 Village Pkwy 7473 Lucky's Pizza I 3 829-6855 Amador Valley BI 7410 Lyon's Brewery 2 829-9071 San Ramon Rd 7294 Mandarin Village 2 829-0828 Village Pkwy 7150 McDonald's 25 829-0292 Dublin BI 7145 Ming's Chinese 1 829-0535 Regional St 7265 Patrick's Pub 2 828-8877 Village Pkwy 7138 Prince India 829-7944 Village Pkwy 6830 Red Lobster 75 1551-3115 Amador Plaza Rd 7300 ~,ound Table Pizza 10 t828-6680 Amador Valley BI 7841 Subway 3 !829-7827 Regional St 7160 Taco Bell 15 t833-2584 Village Pkwy 7123 Taqueria Azteca 3 833-0888 Amador Plaza Rd 7155 Thai Delight Cuisine i 2 829-1865 San Ramon Rd 8937 Togo's Eatery I 10 828-7220 Amador Plaza Rd 7147 Tomoe Sushi I 2 829-0595 IVillage Pkwy 7467 Wendy's t 20 828-2325 IDubtin B1 7143 IWillow Tree 12 828-9111 Regional 6513 Zac's Cafe 3 1829-6715 Dub n BI 6715 Total Number of Restaurants in Dublin is 57 EXHIBIT 3