BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Approve the Sale of Santa Clara Valley Water District Surplus Property Located at 110 South Sunset Avenue, San Jose, APN 481-21-055, File No. 4026-131.1 (District 6) (San Jose).
End
RECOMMENDATION:
Recommendation
A. Approve the sale of surplus property located at 110 South Sunset Avenue, San Jose, APN 481-21-055, File No. 4026-131.1, to Hien Thi Nguyen and Charles Huu Nguyen, the bidder submitting the high bid in the amount of $573,000; and
B. Authorize the Chief Executive Officer, or her designee to execute the Real Property Purchase and Sale Agreement with Quitclaim Deed to Hien Thi Nguyen and Charles Huu Nguyen.
Body
SUMMARY:
The surplus property is located at 110 South Sunset Avenue (subject property), San Jose, and consists of a 1,456-square foot, 4-bedroom, 2 bath residential single-family home. The lot is 5,058 square feet in size. (Attachment 1). On September 27, 2016, the Valley Water Board adopted Resolution No.16-71 declaring several Valley Water parcels, including the subject property, as surplus land and no longer required for Valley Water purposes. After making the property available for purchase for the requisite time period and for affordable housing, open space, or recreational uses, Valley Water pursued sale of this property through the public auction process outlined in the Government Code. (Attachment 2).
Staff proceeded with the following outreach efforts for the public auction of the subject property:
A. Secured a fair market appraisal (Attachment 3).
B. Placed two large for sale signs on the house for public exposure.
C. Advertised the public auction in the San Jose Mercury News, San Jose Metro, El Observador and Vietnamese Daily News.
D. Listed the subject property in the Multiple Listing Service (MLS) that is used by real estate brokers.
E. Conducted two open houses on September 10, 2019 and September 18, 2019. There were approximately 60 attendees at the open houses.
F. Posted the public auction information on Valley Water website.
G. E-mailed public auction information packets to San Jose City Clerk’s office and surrounding public libraries and Valley Water Clerk of the Board for posting.
On October 15, 2019, the subject property was successfully auctioned off at Valley Water Headquarters. There were seven (7) registered bidders. The highest bid was $573,000, which is $108,000 more than the initial asking price of $465,000. Valley Water is holding a non-refundable deposit of $46,000 from the successful bidder.
The list of the bidders and their highest bids are as follows:
|
Bidder #1 |
Hien Nguyen |
$573,000.00 |
|
Bidder #2 |
Mario Quinonez |
$0 |
|
Bidder #3 |
Mahmood Toofan |
$0 |
|
Bidder #4 |
Jian Zhang |
$0 |
|
Bidder #5 |
Jun Kim |
$572,000.00 |
|
Bidder #6 |
Jaswant Nahal |
$557,000.00 |
|
Bidder #7 |
Basil Yaqub |
$569,000.00 |
NEXT STEPS:
Upon Board approval of the recommendation, the Chief Executive Officer will execute the Purchase and Sale Agreement (Attachment 4) and Quitclaim Deed (Attachment 5) for the sale of the subject property to Hien Thi Nguyen and Charles Huu Nguyen, the successful high bidder.
FINANCIAL IMPACT:
Proceeds from the sale of the subject property will be deposited to the Watershed and Stream Stewardship Fund (Fund 12).
CEQA:
The Sale of Surplus Government property is Categorically Exempt under California Environmental Quality Act (CEQA) Guidelines Section 15312.
ATTACHMENTS:
Attachment 1: Map
Attachment 2: SCVWD Resolution No. 16-71
Attachment 3: Fair Market Appraisal
Attachment 4: Purchase and Sale Agreement
Attachment 5: Quitclaim Deed
UNCLASSIFIED MANAGER:
Manager
Ngoc Nguyen, 408-630-2632