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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: February 21, 2024
To: Honorable Mayor and City Council Members
From: Charles A. Montoya, City Manager;
Mary E. Lanier, Interim Director of Community Development and Housing
Department: Community Development and Housing
Subject: Quitclaim Deed with Arrowhead Credit Union
Regarding APN 0136-171-44 (Ward 3)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, acting as the Successor Agency to the Redevelopment Agency for the City of San Bernardino, authorize the City Manager to execute a Quitclaim Deed with Arrowhead Credit Union, terminating the City’s interest in the Real Property located at 580 W Mill Street, also known as APN: 0136-171-44, in the City of San Bernardino, California.
Executive Summary
The recommended action will authorize the City Manager to execute a Quitclaim Deed, thereby releasing the City of San Bernardino’s interest in the real property owned by Arrowhead Credit Union, also known as APN 0136-171-44. This action is necessary to remediate a cloud on the Title of the Property. The cloud on Title resulted when the City of San Bernardino filed a Quitclaim Deed, transferring ownership, while the City did not maintain ownership or interest in the Property.
Background
On December 5, 2005, the Community Development Commission of the City of San Bernardino adopted Resolution No. CDC/2005-45, approving a 2005 Disposition and Development Agreement (“DDA”) between the Redevelopment Agency of the City of San Bernardino, a public body, corporate, and politic (“the Agency”), and the Arrowhead Central Credit Union, a California Corporation (“the Developer”). A companion Resolution, Resolution No. 2005-414, by the Mayor and City Council of the City of San Bernardino, also approved the DDA with Arrowhead Credit Union. 1 8
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The DDA provided for the sale of 8.2 acres of vacant Agency-owned land, south of the Baseball Stadium on “E” Street, to the Developer for the purpose of constructing a new, campus-style headquarters. In September of 2006, the Developer acquired ownership of the Agency-owned land, otherwise known as (“the Property”) APN 0136-171-44, in accordance with the terms of the DDA, consisting of approximately 3.61 acres, and proceeded with the typical development process.
Subsequent to acquiring the Property, the Agency and the Developer experienced numerous challenges with regard to fulfilling the terms of the DDA. Ultimately, the Developer was unable to develop the Property in accordance with the DDA.
Discussion
Arrowhead Credit Union acquired the Property on September 14, 2006, in accordance with the terms of the DDA. The sale and transfer of ownership from the Agency to Arrowhead Credit Union established Arrowhead Credit Union as the sole owner of the Property.
On March 18, 2011, for reasons unknown to current City staff or Arrowhead Credit Union Management, a Quitclaim Deed was recorded against the Property, whereby the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic, conveyed right, title, and interest to the San Bernardino Economic Development Corporation, a California non-profit corporation. This conveyance has since clouded the Title of the property and is preventing the future disposition and development of the property.
Arrowhead Credit Union has requested that the City of San Bernardino execute a Quitclaim Deed to correct the Deed recorded on March 18, 2011. Staff has reviewed a Preliminary Title Report for the Property and has confirmed that, as of March 18, 2011, the City did have a recorded interest in the property. The City’s interest in the Property terminated on September 14, 2006.
Staff is recommending that the Mayor and City Council of the City of San Bernardino authorize the City Manager to execute a Quitclaim Deed to release the recorded interest in the Property that resulted from the Quitclaim Deed recorded on March 18, 2011, as the City of San Bernardino did not have ownership interest in the Property at the time.
2021-2025 Strategic Targets and Goals
This project is consistent with Goal No 1(e). Minimize risk and litigation exposure.
Executing the Quitclaim Deed will restore the Property to sellable condition, thus minimizing future litigation exposure.
Fiscal Impact
There is no fiscal impact on the City.
Conclusion
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It is recommended that the Mayor and City Council of the City of San Bernardino, California, acting as the Successor Agency to the Redevelopment Agency for the City of San Bernardino, authorize the City Manager to execute a Quitclaim Deed with Arrowhead Credit Union, terminating the City’s interest in the Real Property located at 580 W Mill Street, also known as APN: 0136-171-44, in the City of San Bernardino, California.
Attachments
Attachment 1 – Quitclaim Deed with Arrowhead Credit Union Attachment 2 - Resolution No. 2005-414
Attachment 3 – Grant Deed, Document No. 2006-0629470
Attachment 4 - Quitclaim Deed, Document No. 2011-0112192 Attachment 5 - Preliminary Title Report - APN 0136-171-44 Ward:
Third Ward
Synopsis of Previous Council Actions:
December 5, 2005 The Mayor and City Council approved Resolution No. 2005- 414, approving the Disposition and Development Agreement with Arrowhead Credit Union.