CC Resolution No. 04-410
·
RESOLUTION NO. 04-410
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
DECLARING ITS INTENTION TO SELL SURPLUS REAL PROPERTY
November 16,2004
WHEREAS, the City of Cupertino, hereinafter referred to as "City" is now the owner of
that certain real property which is located at Canyon Oak Way, Hammond Way and Serra Street,
Cupertino, California, cornmonly known as the Oak Valley subdivision, and more particularly
described in Exhibit "A". attached hereto and incorporated herein; and
WHEREAS, said property is not needed for any governmental purpose and that it is the
judgment of the City Council of the City of Cupertino, for the best interests of the City, that said
property be sold to the highest responsible bidder or bidders under the authority of Section 37350
et seq. of the Government Code of the State of California; and
WHEREAS, the City has complied with all the legal requirements established for the sale
of surplus property including the requirements specified in Section 54220 et seq. of the
Government Code of the State of California,
NOW, THEREFORE, it is hereby determined and ordered that said property shall be
offered for sale under the following terms and conditions:
1. BIDDING DATE
The City of Cupertino shall offer for sale three (3) improved residential lots, The bidding
session is to be held on Tuesday, November 16, 2004, at 6:00 P.M. on the Main Level
Conference Room A of City Hall, 10300 Torre Avenue, City of Cupertino.
2. WRITTEN BIDS
Written bids shall be presented on the Bid Form as shown in Exhibit "B," Bidders can use
the attached form or obtain additional copies of the Bid Form as noted in Paragraph 14 of this
Resolution. The Bid Form must be received by the City Clerk of the City before 6:00 P.M. on the
date ofthe bidding session.
The Bid Form should be completed and placed in a sealed envelope along with the
appropriate deposit as described in Paragraph 5. The outside of the envelope should state that it
is a "SEALED BID". The bid can be mailed or hand carried to the City Clerk, City of Cupertino,
10300 Torre Avenue, Cupertino, California 95014. Mailed bids should be placed in a second
envelope and addressed accordingly.
Resolution No. 04-410
3. MINIMUM BID
The minimum acceptable written bid shall be as follows:
· Lot 13, Tract 9075 $1,200,000
· Lot 2, Tract 9075 $1,600,000
· Lot 11, tract 9054 $1,700,000
All bids submitted must be cash bids, Bids for less than the minimum bid amount will be
rej ected.
4. TERMS
Bids shall consist of an unconditional offer to purchase a lot for cash, payable in full, in
cash, cashier's or certified check at the close of escrow. A successful bidder shall be given three
(3) days after acceptance of bids to execute a purchase contract (Exhibit "C") and thirty (30) days
thereafter to close escrow unless extended by written mutual consent ofthe parties.
5. DEPOSIT
(a) Amount of Deposit
All submitted written bids must be accompanied by a certified cashier's check in
the amount of thirty-five thousand dollars ($35,000.00). The deposit should be
made payable to the City of Cupertino.
(b) Number of Deposits
An individual or entity may submit written bids for one or more lots offered at the
bidding session. The amount ofthe deposit needed to accompany a written bides)
should equal $35.000.00 per lot. An individual or entity who is an unsuccessful
bidder with respect to any given bidding round, may apply his/her deposit to any
subsequent bidding round. If any individual or entity desires to purchase more
than one lot, the submitted written bid should denote the number of lots desired to
be purchased along with a deposit amounting to $35,000.000 for each lot which
the individual or entity desires to purchase. A bidder who has submitted a deposit
for one lot and is the successful high bidder on one of the offered lots, will not be
permitted to bid on any subsequent lots offered unless the bidder has tendered
additional deposit monies prior to the commencement of the oral bidding as
defined in paragraph 5(c) of this Resolution. A bidder who has submitted a
deposit on two lots can continue to bid on lots offered until two successful bids
have been made on two lots. A bidder who has submitted a deposit of
$105,000.00 with his/her written bids can participate in the bidding for all 3 lots.
All bidders have the right to increase their deposits at the bidding session in
accordance with the terms outlined in Paragraph 5(c) of this Resolution.
Page 2 of6
Resolution No. 04-410
( c) Deposits Required of Oral Bidders
Those individuals or entities planning on participating in the oral bidding but who
have not submitted a written bid with deposit shall be required to tender prior to
the commencement ofthe oral bidding, a deposit amounting to forty-five
thousand dollars ($45,000.00), per lot to be bid upon, The deposit must be in the
form of a certified or cashiers check made payable to the City of Cupertino. If the
bidder desires to bid on two lots during the oral bidding, a deposit in the amount
of $90,000.00 is required. Three bid opportunities require a deposit of
$135,000,00,
All bidders who have submitted a $35,000.00 deposit with a written bid which
complies with the terms herein, shall not be required to submit any additional
funds to participate in the oral bidding unless that bidder desires to increase their
deposit monies in order to purchase additional lots.
(d) Forfeiture of Deposit
In the event a bid is accepted and the bidder fails, within the time allotted herein,
to execute any documents related to the sale, including the purchase contract, or
otherwise does not perform according to the terms of the bid, then said bidder will
forfeit an amount equal to $35,000.00 for the lot successfully bid upon and
subsequently not purchased. The difference, if any, remaining after subtracting
the $35,000.00 forfeiture from the original deposit will be refunded to bidder
upon the determination that bidder does not desire to consummate the sale.
(e) Return of Deposits
Deposits of unsuccessful bidders will be returned after the City's final acceptance
ofthe successful bid, but in no case, will such period extend beyond ten (10) days
after the bidding session. City shall pay no interest on any deposits,
6. TITLE
Title to the property shall be conveyed by Grant Deed subject to all liens, encumbrances,
or other cloud on title which may affect the property. A copy of the preliminary title
report is available at the City Offices, Department of Public Works, 10300 Torre Avenue,
Cupertino, CA.
7. LOT INFORMATION
An informational binder pertaining to the three lots is available for the public's review in
the public works department, Monday - Thursday 7:30 a.m. to 5:30 p.m. and Friday 7:30
a.m. to 4:30 p.m. The binder contains a tract map; street improvement plans; geological
reports; preliminary title reports and Declaration of Covenants, Conditions and
Restrictions for Oak Valley Development. Any questions regarding development
requirements may be referred to the appropriate city departments: Building (777-3228),
Planning, (777-3308), or Public Works (777-3354),
Page 3 of6
Resolution No. 04-410
8. ACCEPTANCE OF BIDS
The accepted bid, this Resolution and exhibits thereto and the executed Purchase
Contract (Exhibit "C") shall constitute the contract of purchase in accordance with the
terms outlined in these documents. The City Council of the City of Cupertino reserves the
right to accept a bid that at its sole discretion deems to be in the City's best interest. The
City Council of the City of Cupertino reserves the right to reject any and all bids, waive
any irregularities, be the sole judge ofthe responsiveness of the bids and to determine
which bid constitute the greatest return to the City.
9. CLOSE OF ESCROW
The transaction shall be consummated through an escrow to be opened by the buyer
(successful bidder) at Alliance Title Company; 901 Campisi Way, Suite 100;
Campbell, CA 95008. All escrow and other costs including title insurance, any taxes,
charges, or fees assessed by local, state, or federal govermnents as a result of the subject
property transfer, shall be borne by the buyer.
10. POSSESSION
The City shall turn over possession of the premises to the purchaser at the close of
escrow, The City shall maintain existing insurance coverage on the property prior to close
of escrow.
The successful bidder may have reasonable access to the premises for the purpose of
studies related to the development ofthe property prior to the close of escrow. The
successful bidder will hold the City harmless for any damage to, or loss of personal
property, or personal injury incurred by the successful bidder, or representatives, agents
or employees of the bidder, should such damage, loss or injury occur on the subject
property so long as the City retains ownership and occupancy ofthe property.
11. REAL ESTATE BROKERAGE COMMISSIONS
The City agrees to pay a brokerage commission to licensed real estate brokers, in an
amount not to exceed 3% ofthe purchase price, provided that such commission and the
person to whom it is payable is specified in that bid which is finally accepted by the City
as the highest responsible bid, and provided that the amount of any such bid shall be
determined net of any commission so specified. Such real estate commission shall be
payable out of escrow at close of escrow.
12. ATTORNEY FEES
In the event that any legal action or litigation is undertaken by the City to enforce the
provisions of the bid offer or any subsequent written agreement to execute such offer, the
successful bidder agrees to pay reasonable attorney fees incurred by the City,
Page 4 of6
Resolution No, 04-410
13. BIDDING PROCEDURES
The following procedure will be used in conducting the sale of the property herein.
(a) All written bids must be delivered to the City Clerk of the City, 10300 Torre Ave.,
Cupertino, no later than 6:00 p.m. on the date of the bidding session, November 16,
2004. The Clerk will open the written bids at the commencement ofthe bidding
session which shall be 6:00 p.m. The bidding session shall be held in Conference
Rooms A, main level, City Hall.
(b) The Clerk will announce the highest written bid for the first lot. The criteria used to
determine the highest responsible bidder would be the bid that generates the highest
net revenue to the City of Cupertino (net revenue is defined as that amount to be paid
to the City after subtracting the brokerage commission, if any, from the bid price).
(c) Thereafter, oral bids for the first lot will be solicited. The first oral bid shall exceed
the highest written bid by at least $5,000.00. Each subsequent oral bid must exceed
the prior oral bid by at least $1,000.00. Again, oral bids may be made by parties who
have, or who have not submitted written bids, provided, however, only those parties
who have submitted a deposit either prior to the commencement of the oral bidding or
with a written bid will be allowed to participate in the oral bidding.
(d) Upon completion ofthe oral bidding, the highest individual bidder and the second
individual bidder shall immediately cause the bid to be reduced to writing on the
appropriate form (Exhibit nBn),
(e) The Clerk will tentatively accept the high and second highest bid for all three lots,
adjourn the bidding session and deliver the two high bids to the City Council. The
City Council, at its sole discretion, will resolve both the method of sale of the lot
being offered in a given round of bidding and the respective successful bidder. The
City Council reserves the right to accept a bid which it determines to be in the City's
best interests, The City Council also reserves the right to reject any and all bids and
call for a new bidding session.
(f) Final acceptance ofthe high bid for any lot shall be made by the City Council. The
Council will determine which bid is in the best interests of the City.
(g) Upon final acceptance of the highest responsible bid for each lot by the City Council,
the Purchase Contract (Exhibit ncn) for each lot shall be executed within three days
of said acceptance and an escrow shall be established by the successful bidder at
Alliance Title Company; 901 Campisi Way, Suite 100, Campbell, CA 95008.
Escrow shall close within thirty (30) days from the date of executing the Purchase
Contract. At escrow closing, buyer shall deposit in cash with said escrow company an
amount equal to the bid less deposit plus all closing costs, loan fees, and any other
costs required to close the sale. Upon close of escrow, the City shall receive the net
cash amount as provided by the escrow officer and the buyer shall receive a grant
deed to the property as provided in Paragraph 6.
Page 5 of6
Resolution No. 04-410
14. REQUESTS FOR ADDITIONAL FORMS AND PROCEDURES
Additional Bid forms and copies of this Resolution which serve as the instructions to
bidders will be forwarded to interested parties by mail or telephone request or can be
downloaded from the city's website at http://www.cupertino,org/, Write to or call the
following:
CITY OF CUPERTINO
Public Works Department
10300 Torre Avenue
Cupertino, CA 95014
Phone: (408) 777-3354
15. PUBLICATION AND POSTING
The City Clerk is directed to cause to be published a notice of intention to sell real
property in a newspaper of general circulation within the City of Cupertino for a period
of four weeks prior to the bidding session and is also directed to post the property with a
copy of said notice at least thirty (30) days prior to the bidding session,
PASSED AND ADOPTED by the City Council of the City of Cupertino, this 20th day of
September 2004, by the following vote:
Vote:
Members ofthe City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
James, Kwok, Lowenthal, Sandoval, Wang
None
None
None
ATTEST:
APPROVED:
. ~
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Page 6 0[6
Resolution No. 04-410
EXHIBIT "B"
BID FORM - A PORTION OF OAK VALLEY SUBDNISION
TO: . CITY OF CUPERTINO
City Clerk's Department
10300 Torre Avenue
Cupertino, CA 95014
I. THE UNDERSIGNED HEREBY PROPOSES AND OFFERS TO PURCHASE
LOT(S) , IMPROVED RESIDENTIAL PROPERTY WITHIN TRACT
NO.(S) COMMONLY KNOWN AS "OAK VALLEY SUBDIVISION",
CASH BID PRICE:
Bidder hereby tenders $
purchase of lots.
representing a deposit or deposits for the
If the successful bidder fails to complete the purchase in accordance with the specified terms,
$35,000.00 ofthe deposit shall be forfeited.
2. Bidder's Name
(Principal)
Entity
Individual, Partnership, Corporation
Address
Street
City
State
Zip Code
3.
Telephone number: Day
Night
4. The undersigned bidder submits this bid subject to all the terms and conditions of the
Resolution ofIntention to Sell Surplus Real Property,
dated 2004, and agrees to bound thereby.
Signature:
If partnership and/or corporation:
Title:
State of Incorporation:
Exhibit B
Page 1 of2
Resolution No. 04-410
BROKER'S COMMISSION
The following information should be completed if a real estate commission is to be paid to a
duly licensed real estate broker in the event this offer is accepted. Such commission is to be
deducted from the stated cash bid price to determine the net bid
If this bid is finally accepted and sale of the property is consummated in accordance with the
bid as provided in the resolution, City shall pay a commission of
Dollars ($ ).
Said commission shall not exceed three percent (3%) of the cash bid price stated herein. The
commission is to be paid in accordance with the terms of Resolution dated September 20,
2004.
Real Estate Brokers Signature:
Real Estate Broker's Name:
Broker's Address:
Bidder's Signature:
Bidder's Name:
If Applicable:
Company Name:
Title:
Exhibit B
Page 2 of2
Resolution No. 04-410
EXHIBIT "C"
PURCHASE CONTRACT RECEIPT FOR DEPOSIT
AND ESCROW INSTRUCTIONS
This Agreement dated this
day of
, 2004, is made by and
between the City of Cupertino ("Seller ") and
("Buyer")
RECITALS:
I. Pursuant to the appropriate provisions of the California Government Code, Buyer has
made a bid to purchase the property described herein and Seller has accepted such bid.
2. Seller has received from Buyer the sum of
Dollars, $ ("Deposit") evidenced by a certified or cashier's check payable
to the CITY Of CUPERTINO, as a deposit on account of purchase of that certain real
property situated in the City of Cupertino, County of Santa Clara, State of California,
described as Lot(s) ("Property") of Tract No. as
shown on the map filed July 9,1998, in Map Book , Pages
NOW, THEREFORE, the parties hereto agree as follows,
1. Agreement of Purchase and Sale
Subj ect to the term and conditions as set forth herein, Seller shall sell and Buyer shall
purchase the property for a total purchase price of $
2. Payment of Purchase Price
The purchase price for the property shall be paid as follows:
2.1 Buyer has already paid Seller a deposit of $
2.2 No later than thirty days after this agreement is executed Buyer shall deposit with the
Escrow Holder for delivery to Seller at close of escrow, cash or a certified or cashier's
check made payable to Fidelity National Title Company in an amount
of$ (the full amount of the purchase price less deposit) plus closing
costs necessary to close escrow. In the event that Buyer fails to deposit the total cash
required within the time specified, Seller shall retain $35,000.00 of the previously
paid deposit. The time specified may be extended by mutual agreement between Buyer
and Seller.
Exhibit C
Page 1 of3
Resolution No, 04-410
3. The Closing of Sale Transaction Through Escrow
3.1 The purchase and sale of the property shall be completed within thirty (30) days after
executing the Purchase Contract Receipt for Deposit. The closing of the sale shall be
through an escrow to be opened at the following title company ("Escrow Holder"):
AllIiance Title Company
901 Campisi Way, Suite 100
Campbell, CA 95008
(408) 559-3424
3.2 Instruments in respect to the purchase and sale shall be deposited in escrow by Buyer and
Seller as follows:
(a) Seller shall deposit, prior to close of escrow, a grant deed duly executed by Seller
in recordable form,
(b) Buyer shall deposit cash or a certified or cashier's check for the amount required
to close escrow pursuant to Paragraph 2.2 of this agreement.
4. Notices
Any notice, request, demand, instruction or other communication to be given to any party
hereunder shall be in writing and delivered personally, or sent by registered or certified mail
as follows:
Seller; CITY OF CUPERTINO
City Clerk
10300 Torre Avenue
Cupertino, CA 95014
Buyer:
Notice shall be deemed to have been given when delivered personally or two days after
mailing to the above address if mailed. No notices shall be effective unless and until persons
entitled to notice have been notified in accordance with the foregoing. The addresses for
purposes of this paragraph may be changed by giving written notice of such change in the
manner provided herein for giving notice. Unless and until such written notice is received, the
last address and addressee as stated by written notice, or as provided herein ifno written
notice of change has been sent or received, shall be deemed to continue in effect for all
purposes hereunder.
Exhibit C
Page 2 of3
Resolution No. 04-410
5. Further Assurances
Buyer and Seller agree that at any time, or from time to time after the execution of this
Agreement and whether before or after the close of escrow they will, upon request of the
other, execute and deliver such documents and do such further acts and things as such party
may reasonably request in order to effect fully the purposes of this Agreement.
6. Survival of Covenants
Each of the covenants and agreements contained herein shall, to the extent applicable, survive
the close of escrow.
7. Successors and Assigns
This Agreement shall be binding upon and inure to the benefit of each of the parties hereto,
and to their respective successors and assigns.
8. Captions
The captions in the Agreement are inserted only as a matter of convenience and for reference
and in no way define the scope or extent of this Agreement or the construction of any
provisions herein or of any document or instrument referred to herein.
9. Time
Time is of the essence in this Agreement.
10. Entire Agreement; Amendments
This Agreement embodies the entire Agreement and understanding between the parties
relating to the subject matter hereof and may not be amended, waived or discharge except by
an instrument in writing executed by the party against which enforcement of such
amendment, waiver or discharge is sought. This Agreement supersedes all prior agreements
and memoranda. The invalidity of anyone of the covenants, agreements, conditions or
provisions ofthe Agreement, nor any portion thereof, shall not affect the remaining portions
thereof or any part hereof and this Agreement shall be construed as if such covenant,
agreement, condition or provisions had not been inserted herein,
11. Attorney's Fees
Should any suit be brought to enforce the terms of this Agreement or any obligation herein
expressed, the prevailing party shall be entitled to reasonable attorney's fees, costs and
expenses herein incurred.
Exhibit C
Page 3 of3
EXHIBIT A
PLAT MAP & DESCRIPTION
All that certain real property situated in the County of Santa Clara, State of
California, described as follows:
All ofLo~ 11, as shown on Tract No, 9054, which was filed for record in the
Office of the Recorder of the County of Santa Clara, State of California, on
July 9, 1998 in Book 705 of Maps, page 13, 14, 15, 16, 17, 18, 19,20,21
and 22.
TRACT NO. 9054
O. 917 ACRES (GROSS)
O. 784 ACRES (NET)
APN: 342-58-011
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EXHIBIT A
PLAT MAP & DESCRIPTION
All that certain real property situated in the County of Santa Clara, State of
California, described as follows:
All of Lot 13, as shown on Tract No. 9075, which was filed for record in the
Office of the Recorder of the County of Santa Clara, State of California, on
July 9, 1998 in Book 705 of Maps, page 23, 24, 25, 26, 27, 28 and 29.
TRACT NO. 9075
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O. 693 ACRES
APN: 342-59-013
1"=200'
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EXHIBIT A
PLAT MAP & DESCRIPTION
All that certain real property situated in the County of Santa Clara, State of
California, described as follows:
All ofLo~ 2, as shown on Tract No. 9075, which was filed for record in the
Office of the Recorder of the County of Santa Clara, State of California, on
July 9, 1998 in Book 705 of Maps, page 23,24,25,26,27,28 and 29.
TRACT NO. 9075
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AJP~:342-59-002