;ITY OF

TONY M. ROYSTER
GENERAL CITY PURCH MANAGER

Los

ANGELL
DEPARTM EN T OF

CALIFORNIA
AND
ASl NG AG ENT CITY

GENERAL

SERVICES
SOUTH STREET

ROOM 701
HALL I 1 1 EAST FIRST

LOS ANG~LES. CA 90012 (213) 928-9555 FAX No. (2131 928-9515

ANTONIO

R. VILLARAIGOSA
MAYOR

August 6, 2012

Honorable Councilmembers City of Los Angeles C/O City Clerk Room 395, City Hall Los Angeles, CA 90012 . Attention: Erika Pulst, Legislative Assistant

PROPOSAL TO SELL 12 SURPLUS CITY-OWNED PROPERTIES AT PUBLIC AUCTION 7' VARIOUS LOCATIONS (CD 1, S, a, 11 AND is)

SUMMARY The Department of General Services (G80), Asset Management Division (AMD) proposes to sell at public auction 12 surplus City-owned properties located throughout the City. The properties are situated in Council Districts 1, 5, 8, 11 and 15. These properties are more fully described in the attached Ordinance and Notice of Sale. A Class "C" estimate for each of the property was provided by staff appraisers to determine each property's estimated fair market value. Based on this estimate of value, a minimum opening bid for each parcel was established as set forth on the attached Ordinance and Notice of Sale in order-to encourage competitive bidding.

PROPERTY DESCRIPTION Parcels 1 through 4 are vacant lots. Parcel 1 is located at 1704 W. Jefferson Blvd. level lot with an approximate lot size of 4,760 square feel. Parcel 2 is located at 11514 Willowbrook Ave., level lot with an approximate lot size of 4,930 square feet. Parcel 3 is located at 1309 Isabel Street, hillside with an approximate lot size of 5,600 square feet. Parcel 4 is located at 164th and Bonsallo Streets, level lot with an approximate lot size of 5,930 square feet.

AN EQUAL. EMPL.OYMENT

OPPORTUNITY

-- AFFmM.A"~vE

ACTION

EMPLOYER

Parcels 5 through 11 are in Pacific Palisades. Parcels 8 and 11 are residential single family homes, now vacant were previously rented on a month-to-month basis. Parcel 8, located at 15273 De Pauw Street is a three bedroom, 1.75 baths, 1,208 square foot home built in 1947 with an approximate lot size of 7,500 square feet. Parcel 11, located at 15285 De Pauw Street is a 3 bedroom, 2 baths, 2052 square feet home built in 1947 with an approximate lot size of 7,500 square feet. Parcel 7, a single family home located at 15229/15233 De Pauw, has three bedrooms, 1.75 baths, 2,172 square feet built in 1927, with an approximate lot size of 16,920 square feet. The property was included in the April 25, 2011 public auction, was withdrawn due to a lawsuit, and has been settled and now vacant. Parcels 5, 6, 9 and 10 are all vacant lots with approximate lot size that range from 7,500 to 9,154 square feet. Parcel 11 is old Fire Station 43 located at 10234 National Blvd. Palms. Lot size is approximately 11,064 square feet, improved with 4,885 square foot building built in 1942, zoned R3-1. The property was sold in a previous public auction but failed to close escrow.

BACKGROUND
The established City procedures for selling surplus property require that the property be offered to.the appropriate governmental agencies for park and recreation purposes, open space, or for low-income housing purposes. No objections were received from the notified agencies during the specified 60-day waiting period. The Bureau of Engineering (BOE), Survey Section, provided the legal descriptions of the properties and any reservation or exception of portions of the real property for easements or rights required by the City were retained. The City Planning Department was also notified of the sale and concurred with the proposal to sell the property or waived its response rights to comment on the sale. The Council members in whose districts the properties are located have been notified of the proposed sale and concur in the sale of the properties. The sale is an all cash sale with the City requiring, prior to the commencement of the bidding, a 10% deposit or $10,000.00, whichever is less, on each property based on the established minimum opening bid. The successful bidder (buyer) must deposit within 10 working days from the date of the auction an additional deposit to make the total deposit held by the City equal to 10% of the purchase price. Any property that fails to close escrow will be offered to the second, then third, and finally to the fourth highest bidder upon the same terms and conditions specified in the Ordinance and Notice of Sale. The properties are sold AS IS. The City will pay for a home warranty protection for Parcels 7, and 11 (single-family residence) for a period of one yearfrom close of escrow,

with the buyer paying any service calls. Parcel 8 is being sold for land value only, Prospective buyers will be advised that some of the properties are subject to certain governmental and/or regulatory requirements including the Hillside Ordinance in the Zoning Code of the Department of Building and Safety, the City's Coastal policies and requirements of the State Coastal Commission. They will also be provided with additional real estate disclosures as required by law. The sale will also be subject to covenants, conditions, restrictions, reservations, encroachments, easements, rights, and rights of way of record or which are apparent from a visual inspection of the properties, The prospective buyer shall pay all recording fees, documentary transfer taxes, one-half of escrow fees, policy of title insurance, messenger service fees, broker's commission, if any, other real estate transaction taxes, fees, or application, and personal property taxes where applicable. The successful bidder will also be responsible for a survey of the property at his/her expense. The buyer has three months to close the sale after the date of notification confirming the sale. However, if payment is deferred for more than two months after the notice confirming the sale, interest at one percent (1%) per month or fraction thereof shall be charged for each month or fraction thereof in excess of two months. NET PROCEEDS OF SALE The proceeds of the sale after deducting the cost of escrow and other associated sale costs will be deposited in various accounts including the Potrero Canyon Trust Fund and the General Fund, The net proceeds of the sale of the old Fire Station and the other vacant lots will be deposited to the General Fund. The net proceeds from the sale of the parcels in Pacific Palisades will go back to the Potrero Canyon Trust Fund, FISCAL IMPACT STATEMENT The sale of the properties will generate one-time gross revenue to the City of approximately $9A08,OOO.OO based on the minimum bid set for each parcel, prior to the payment of the costs of sale. The net proceeds will be deposited in the appropriate accounts as provided by law. The sale will eliminate the need for continued maintenance of the properties. In addition, it will return the properties to the County tax rolls and will generate annual revenues from the payment of property taxes. RECOMMENDATION That the City Council: 1. Determine that the real properties, as described on the enclosed draft Ordinance and Notice of Sale, are no longer required for the use of the City and that the public interest or necessity require their sale;

2.

Adopt the proposed Ordinance and Notice of Sale establishing minimum bids as set forth in said Ordinance and Notice of Sale;

the proposed

3.

Instruct the Department of General Services, Asset Management Division to complete the transaction as outlined in the Ordinance and Notice of Sale and deposit the net proceeds of the sale into the appropriate account(s) as provided by law.

Should you need additional information, please contact Gemma Lopez at (213) 922-8542.

Tony M, oyster General Manager Enclosures

ORDINANCE NO.
An Ordinance determining that certain City-owned real properties are no longer required for the use of the City, and that the public interest or necessity requires the sale thereof, and ordering the sale thereof by oral bids at public auction, pursuant to Division 7, Chapter 1, Article 4, Section 7.24 of the Los Angeles Administrative Code.

THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS:

Section 1. The City Council of the City of Los Angeles hereby finds and determines that certain real properties owned by the City of Los Angeles and located at the addresses and/or locations set forth hereinafter and more particularly described in the Notice of Sale approved by the Council and affixed to Council File No. , which descriptions are incorporated herein by reference; are no longer required for the use of the City and the public interest and necessity requires, and it is hereby ordered, that the parcels of real property be sold pursuant to the provisions of Section 385 of the City Charter, and Division 7, Chapter 1, Article 4 of the Los Angeles Administrative Code, for cash, to the highest responsible bidder at an oral bid auction to be conducted in accordance with the provisions of Section 7.24 of said Code on or after at a.m.zp.m., in Room , Los Angeles, California 90012. The minimum prices, which will be accepted for said properties are as follows:

PLEASE REFER TO ORDINANCE EXIDBIT A ~ REAL PROPERTY AUCTION PARCELS

Section 2. The sale of said parcel(s) shall except and reserve to the City of Los Angeles all oil, gas, water, and mineral rights now vested in the City of Los Angeles without, however, the right to use the surface of said land or any portion thereof to a depth of 500 feet below the surface, for the extraction of such oil, gas, water and minerals. The sale(s) will further except and reserve to the City of Los Angeles any interest in the fee of any adjacent street(s) which would otherwise pass with the conveyance and shall be subject to covenants, conditions, restrictions, reservations, easements, encroachments, rights, and rights of way of record or which are apparent from a visual inspection of the real property(ies), and subject to such other covenants, conditions, restrictions, easements, reservations, encroachments, rights, and rights-of-way which are more particularly set forth in the Notice of Sale. The property(ies) offered for sale in this Ordinance is/are offered in an "AS IS" condition, and all bidders, by bidding on the propertyiies), are, by such act, expressly agreeing to purchase the each of the property(ies) in an "AS IS" condition and without any warranty as to fitness for use, fitness for a particular use, or condition of the property(ies), and that the seller has no obligation to correct any condition of the property(ies), whether known before Or after the date of the auction.

Section 3. The City Clerk is directed to publish the Notice of Sale for three days in a newspaper of general circulation printed and published in the City of Los Angeles and also to post the Notice of Sale on said real property in a prominent and visible location, said notice to be posted not less than thirty (30) days prior to the date set for said sale,

Section 4. The General Manager of the Department of General Services of the City of Los Angeles is hereby authorized to confirm the sale(s) in an amount not less than the minimum bids herein specified, !,ubject to the right of the Ci!y Council to reject any and aU bids and to withdraw the :Qro:Qcrty(ies) from sale at any time up to, and including, the time the sale iffilre so confi~qt!f!.

Section 5. Following confirmation of the sale(s), the Mayor of the City of Los Angeles is authorized to execute a deed or deeds conveying said parcels to the respective successful bidders or assignees thereof. The City Clerk is authorized to attest thereto and to affix the City Seal.

Section 6. The Department of General Services, Asset Management Division, is authorized to open title and escrow, issue title transfer instructions/escrow, and/or deliver the grant deed, and otherwise complete the transactions, and the Chief Accounting Employee of the Department of General Services is authorized to deposit the proceeds, over and above the expenses of sale, into the proper accounts as provided by law. Expenses associated with the sale include, but are not limited to, appraisal fees, environmental reports, legal description preparation, escrow fees, preliminary title report, recording fees, documentary transfer taxes, policy of title insurance, home warranty protection coverage, if applicable, and any associated site remediation costs. The successful bidder shall pay for all recording fees, documentary transfer taxes, one-half escrow fees, policy of title insurance, messenger service fees, broker's commission, if any, other real estate transaction taxes, fees or application, and personal property taxes where applicable. Should the successful bidder desire a survey of the property, termite inspection and any other types of inspections, this may be accomplished by an independent surveyor and inspectors at the bidder's expense. The title company and escrow company selected for the sale of all these properties shall be a sole discretion of the City of Los Angeles. ' Parcels improved with a single-family home will be covered with a home warranty protection plan for one year at the City's expense from the date escrow closes with any service calls paid by the prospective buyer. Home warranty protection coverage information will be made available to the successful bidder, upon request, on or before close of escrow.

Section 7. Should no acceptable bids be received or should the sale not be completed for the property described in this Ordinance, the General Manager of the Department of General Services of the City of Los Angeles or his designee is hereby authorized to (a) re-offer said properties for sale pursuant to this Ordinance to the second highest bidder, and if second highest bidder fails to complete the sale and/or comply with the conditions of the sale, to the third then fourth highest bidders, upon the same terms and conditions specified in the Notice of Sale without further order or permission of the Council, or (b) declare the present Notice of Sale immediately invalid and, pursuant to Division 7, Chapter 1, Article 4, Section 7.32 of the Los Angeles Administrative Code, cause one or more other Notice of Sale to be published and to conduct one or more other sale auction under the tenus and conditions of the new Notice of Sale until property(ies) authorized for sale under this Ordinance is/are sold or otherwise disposed. The provisions of this section shall be effective until the expiration of this Ordinance authorization on the date that is five (5) years from the effective date of this Ordinance.

Section 8 The City Clerk shall certify to the passage of this Ordinance and have it published in accordance with Council policy, either in a daily newspaper circulated in the City of Los Angeles or by posting for ten days in three public places in the City of Los Angeles; one copy on the bulletin board located at the Main Street entrance to the Los Angeles City Hall; one copy on the bulletin board located at the Main Street entrance to Los Angeles City Hall East; and one copy on the bulletin board located at the Temple Street entrance to the Los Angeles County Hall of Records.

Ihereby certify that the foregoing Ordinance was introduced at the meeting of the Council of the City of Los Angeles , and passed at its meeting of --~-------------

Approved as to Form and Legality: Carmen A Trutanich, City Attorney

June Lagmay, City Clerk

By Name Date

./3~JC l-)j---J

ibneHt:J<

~L2~J

Name ------------------~

1- :; ~ I k dAntonio R. Villaraigosa, Mayor

Council File No, --------

ORO\~JANCE EXHIBIT A
REAL PROPERTY AUCTION PARCELS

2012
NOTE: The City of Los Angeles reserves the right to adjust the minimum bid of any property listed below at any time up to the date of the auction. Parcel Number
1

Property Address Assessor Parcel No.! Caullcil

1704 W. Jefferson Boulevard (Lot) Los Angeles, CA 90007 APN 5041-003-900 11514 Willowbrook Avenue (Lot) Los Angeles, CA 90059 APN 6067-001-900 1309 Isabel Street (Lot) Los Angeles, CA 90065 APN 5454-009-900 164th and Bonsallo Streets (Lot) Los Angeles, CA 90247 APN 6120-021-900 15221 De Pauw Street (Lot) Pacific Palisades, CA 90272 APN: 4412-028-903 15225 De Pauw Street (Lot) Pacific Palisades, CA 90272 AP N: 4412-028-904 15233 De Pauw Street (SFR) Pacific Palisades, CA 90272 APN: 4412-028-905 15273 De Pauw Street (SFR) Pacific Palisades, CA 90272 APN: 4412-028-909 15275 De Pauw Street (Lot) Pacific Palisades, CA 90272 APN: 4412-028911 15281 De Pauw Street (Lot) Pacific Palisades, CA 90272 APN: 4412~028-912 15285 De Pauw Street (SFR) Pacific Palisades, CA 90272 APN: 4412-028-913 10234 National Blvd. Palms, CA 90034 APN: 4314-023-900 (Fire Station)

District
CD8

.M1nl!J1umBid
$
60,000.00

CD15

60,000.00

CD 1

40,000.00

CD15

98,000.00

CD 11

$ 990,000.00

CD 11

$ 990,000.00

CD 11

$2,040,000.00

CD 11

$ 990,000.00

CD 11

$ 990,000.00

10

CD 11

$ 990,000.00

11

CD 11

$1,200,000.00

12

CD 5

$ 960,000.00

TOTAL

$9,408,000.00

NOTICE OF SALE OF REAL PROPERTY AT PUBLIC AUCTION

IN ACCORDANCE WITH THE PROVISIONS OF SECTION 385 OF THE CITY CHARTER, AND DIVISION 7, CHAPTER 1, ARTICLE 4, OF THE LOS ANGELES ADMINISTRATIVE CODE
NOTICE IS HEREBY GIVEN that the real property(ies) hereinafter described will be offered for sale by the City of Los Angeles to the highest responsible bidder at a public auction to be conducted by the Asset Management Division, Department of General Services of the City of Los Angeles at a.m.lp.m. on at ________________ , Los Angeles, CA 90012. The auction will be held pursuant to Ordinance No. , ordering the same, adopted by the City Council of said City on , and upon the terms and conditions therein and hereinafter specified and in conformity with Section 385 of the City Charter and Division 7, Chapter 1, Article 4, of the Los Angeles Administrative Code. The minimum price that will be accepted for the propertyties) shall be in the amount of the minimum bid for each said parcel indicated thereof in this Notice. The City of Los Angeles reserves the right to adjust the amount of the minimum bid at any time up to the date of the auction. Said real property(ies) is/are located within the City of Los Angeles, County of Los Angeles, State of California, and described as follows:

SEE ATTACHED EXHIBIT I "NOTICE OF SALE PROPERTY DESCRIPTION2012 AUCTION"

',

THE PARCEL(S) MAY BE. SUBJECT TO ONE OR MORE OF THE FOLLOWWG ITEMS WITH REGARD TO THE DEVELOPMENT OF TlIE SITEt INCLUDING BUT NOT Ji~TED TO: COAST~ COl\1J\PSSIDN2 HILLSIDE ORDINANCE (168,159), SLOPE! DENSITY ORDINANCE.l AND!OR ANY PENDING ORDINANCES AFFECTING THE DEVELOPMENT OF THE SITE. POTENTIAL BIDDERS ARE URGED TO INVESTIGATE BUILDING RESTRICTIONS AND GUIDELINES WITH THE APPROPRIATE AGENCIES PRIOR TO THE AUCTION,
W

BUYERS ARE FURTHER URGED TO INVESTIGATE DEVELOPMENT ISSUES ASSOCIATED WITH THE PROPERTY(IES), INCLUDING BUT NO'L~IMITED TO. CONDITIONS & RESTRICTIONS, GEOLOGY, SITE GRADING, STREET ACCESS2 DRAINAGE;! AVA!LABILITY OF SEWER AND OTHER PUBLIC FACILITIES. All persons interested are invited to attend said auction and bid for the property(ies) intended to be sold. Each parcel will be called by the parcel number, and bids Will be called for said parcel. All persons present who have been designated as qualified bidders may orally bid thereon. Any person wishing to be designated as a qualified bidder must place a deposit with the General Manager of the General Services Department of the City of Los Angeles or his/her representative prior to the commencement of the bidding. Said deposit must be at least ten percent (10%) of the amount specified as the minimum price for each parcel or $10,000.00 for each parcel, whichever is less, in CASIDER'S CHECK OR CERTIFIED CHECK made payable to the City of Los Angeles. In addition to the deposit noted, an additional deposit is required from the winning bidder ("Buyer") within 10 working days of the date of the auction to make the total deposit held by the City equal to ten percent (lQ.~o) of the purchase price for eactt parcel. Said depositts) shall constitute a guarantee that in the event the offer of purchase is accepted by the City of Los Angeles, the Buyer making said offer should complete the purchase according to the terms and conditions herein specified. Said deposit shall be accepted, credited, and applied to the account of the purchase price of the subject parcel. In the event said offer to purchase the subject parcel is rejected, the deposit(s) shall be returned to the Buyer. In the event said offer to purchase is accepted but not completed and failure in that regard is not caused by any act of or omission of the City or any of its representatives, said deposius) shan be retained by the City as liquidated damages for the failure to complete said purchase and for all costs and expenses incurred for the necessary proceedings incidental to acceptance of the offer. Buyer(s) who do not complete said purchase will be prohibited from bidding in future auctions for a period of one year. A supervised open house will be conducted for each of those parcels that have a residential home. The time(s) and date(s) of the open house are to be announced at a later date. Said property(ies) is/are available for inspection by bidders prior to the auction. The City urges all bidders to inspect the property(ies) before bidding. By bidding on the parcel, the bidder represents to the City that bidder has in fact inspected the property/ies) to bidder's satisfaction, knows the condition thereof, and based on that knowledge and inspection, is nevertheless ready, willing, and able to purchase the propertyties).

No warranty or representation is made by the City of Los Angeles with respect to location, size, description of improvements, or zone set out ill the notice of said property(ies) hereinbefore described; such data being set forth for information only and is not; and shall not be deemed to be a part of the description by, or conditions of, which such property(ies) will be offered for sale or sold. The City makes no representation or warranty whatsoever as to the condition or usability of the property(ies); the presence of any defects, whether apparent or hidden, or the fitness of the property/ies) for use, or its/their fitness for a particular use. Said property(ies) offered for sale is/are offered in an "AS IS" condition, and all bidders, by bidding on the property(ies), are, by such act, expressly agreeing to purchase the property(ies) in an "AS IS" condition and without any warranty as to fitness for use, fitness for a particular use, or condition of the propertyues), and that the seller has no obligation to correct any condition of the property(ies), whether known before or after the date of the aucti on. RELEASE: Effective from and after the Closing, Buyer hereby waives, releases, acquits, and forever discharges Seller, and Seller's agents, officials, officers, boards, employees, contractors, and agents to the maximum extent permitted by law, of and from any and all claims, actions, causes of action, demands, rights, liabilities, damages, losses, costs, expenses" or compensation whatsoever, direct or indirect, known or unknown, foreseen or unforeseen, that it now has or that may arise in the future because of or in any way growing out of or connected with this Agreement and the Property (including) without limitation the Condition of the Property). This release includes all liability under any federal, state, or local statute, ordinance, rule, or regulation applicable to the property, including without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (Title 42 United States Code 9601-9675), the Resource Conservation and Recovery Act of 1976 (title 42 United States Code 69016992k), the Carpenter-Presley-Tanner Hazardous Substance Account Act (Health and Safety Code 25300-25395.45), and the Hazardous Waste Control Law ( Health and Safety Code 25100-25250.28), BUYER EXPRESSLY WAIVES ITS RIGHTS GRANTED UNDER CALIFORNIA CIVIL CODE 1542 AND ANY OTHER PROVISION OF LAW THAT PROVIDES A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT BUYER DOES NOT KNOW OR SUSPECT TO EXIST IN ITS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY IT lvf()ST HAVE MATERIALLY AFFECTED ITS AGREEMENT YO RELEASE SELLER. Should no acceptable bid be received, or should the sale not be completed for any of the propertyiies) described in the Ordinance, the General Manager of the Department of General Services of the City of Los Angeles or his designee, without further order or permission of the Los Angeles City Council, is hereby authorized to a) re-offer said property/ies) for sale pursuant to the Ordinance to the second highest bidder, and if second highest bidder fails to complete the sale and/or comply with the conditions of the sale, to the third then fourth highest bidders, upon the same terms and conditions specified in the Notice of Sale, or

b) declare this Notice of Sale immediately invalid for said property(ies) and, pursuant to Division 7, Chapter 1, Article 4, Section 7.32 of the Los Angeles Administrative Code, cause one or more other Notice of Sale to be published and to conduct one or more other sale auction under the terms and conditions of the new Notice of Sale until property(ies) authorized for sale under the Ordinance is/are sold or otherwise disposed. The provisions of this section shall be effective until the expiration of the Ordinance authorization, if specified in the Ordinance, on the Ordinance expiration date. Any and all bids may be rejected or the propertyries) withdrawn from sale by the General Manager of Department of General Services or the City Council of the City of Los Angeles, or said sale(s) may be postponed or continued until such time as the sale(s) is/are confirmed by the General Manager of the Department of General Services of the City of Los Angeles. No sale shall be made or become final unless and until confirmed by the General Manager of the Department of General Services of the City of Los Angeles. The successful bidder' shall pay all escrow and incidental costs associated with the property(ies) purchase transaction(s) including, but not limited to, administration fees, auction fees, survey/environmental disclosure fees, recording fees, documentary transfer taxes, one-half of City of Los Angeles' escrow fees, policy of title insmance, messenger service fees, broker's commission, if any, other real estate transaction taxes, fees, or application, and personal property taxes where applicable. Should a successful bidder ~esire an independent survey of the property(ies), tennite inspection, and any other types of inspections, the bidder may accomplish this by an independent surveyor andlor inspectors at the bidd~r's expense. The title company and escrow company used for the sale of all these properties shall be at the sale discretion of the City of Los Angeles. Parcel(s) improved with a single-family home will be covered with a home warranty protection plan for one year at the City's expense from the date escrow closes with any service calls paid by the prospective buyer. Home warranty protection coverage information will be made available to the successful bidder, upon request, on or before close of escrow. The full balance of the parcel(s) purchase price and associated purchase costs shall be paid to the City by the successful bidder on or before a date that is three months after that successful bidder has been notified by the Asset Management Division of the Department of General Services that the sale has been confirmed. Provided that if payment is deferred for more than two months after the notice confirming the sale, interest at one percent (1 %) per month or fraction thereof shall be charged for each month or fraction thereof in excess of two months. Upon said payment, the City agrees to deliver said purchaser, his/her nominee or assignee(s), the grant deed(s) to the real propertyties) so purchased, together with a standard policy of title insurance issued by a reputable and incorporated title company, showing title to be vested in the purchaser subject to the terms, conditions, and reservations set forth above.

APPROVED AS TO FORM AND LEGALITY: CARMEN A. TRUT ANICH, City Attorney JUNE LAGMA Y, City Clerk

By

~i2.r[/

By

Name:

.4redc

/?, .i?~

Name: Deputy

Deputy City Attorney

Dated

1-:13--/2ANTONIO VILLARAIGOSA, Mayor

File No. ---------------------

EXHIBIT I

NOTICE OF SALE - PROPERTY DESCRIPTION

2012 AUCTION Property(ies) sold in this auction is subject to any exceptiones) as disclosed herein for each property. In addition, all properties offered for sale in this auction are subject to the following, including but not limited to. EXCEPTING AND RESERVING unto the City of Los Angeles all oil, gas, water, and mineral rights now vested in the City of Los Angeles without, however, the right to use the surface of said land or any portion thereof to a depth of 500 feet below the surface, for the extraction of such oil, gas, water and minerals. SUBJECT TO covenants, conditions, restrictions, reservations, easements, encroachments, rights, and rights-of-way of record or which are apparent from a visual inspection of the real property(ies) and excepting and reserving to the City of Los Angeles any interest in the fee to the adjacent street(s) which would otherwise pass with the conveyance of the above described parcel(s) of land. ALSO SUBJECT TO sale "As Is" condition, and purchaser purchasing the City owned property(ies), by such act, expressly agreeing to purchase the propertyries) in an "As Is" condition and without any warranty as to fitness for use, fitness for a particular use, or condition of the property(ies), and that the City has no obligation to correct any condition of the property/ies), whether known before or after the date of the sale. RELEASE. Effective from and after the Closing, Buyer hereby waives, releases, acquits, and forever discharges Seller, and Seller's agents, officials, officers, boards, employees, contractors, and agents to the maximum extent permitted by law, of and from any and all claims, actions, causes of action, demands, rights, liabilities, damages, losses, costs, expenses, or compensation whatsoever, direct or indirect, known or unknown, foreseen or unforeseen, that it now has or that may arise in the future because of or in any way growing out of or connected with this Agreement and the Property (including without limitation the Condition of the Property). This release includes all liability under any federal, state, or local statute, ordinance, rule, or regulation applicable to the property, including, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (Title 42 United States Code 9601-9675), the Resource Conservation and Recovery Act of 1976 (Title 42 United States Code 690 1-6992k), the Carpenter-Presley- Tanner Hazardous Substance Account Act (Health and Safety Code 25300-25395.45), and the Hazardous Waste Control Law (Health and Safety Code 25100-25250.28). BUYER EXPRESSLY WAIVES ITS RIGHTS GRANTED UNDER CALIFORNIA CIVIL CODE 1542 AND ANY OTI-IER PROVISION OF LAW THAT PROVIDES A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT BUYER DOES NOT ](}.JOW OR SUSPECT TO EXIST IN ITS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNO\VN BY IT MUST HAVE MATERIALL Y AFFECTED ITS AGREEMENT TO RELEASE SELLER.

The City of Los Angeles makes no warranty with respect to location, size, description of improvements or zone set out in the Notice of Sale of the property(ies) herein described; such data being set forth for information only and is not, and shall not be deemed to be part of the descriptionis) by, or conditions of, which such property(ies) will be offered for sale or sold. The City makes no representation or warranty whatsoever as to the condition or usability of the property(ies), the presence of any defects, whether apparent or hidden, or the fitness of the propertyries) for use, or its/their fitness for a particular use. Prospective bidders/buyers are further urged to investigate any development problems issues associated with the property/ies), including but not limited to, Building and Safety records, geology, site grading, street access, drainage, availability of sewer and other public utilities. The sale of these properties include the following: may be subject to the following statutory disclosures, which

1. Airport Influence Area Disclosure (Civil Code Section 11 02.6a) Certain parcels may be within two statutes miles of an airport, including International Airport, Santa Monica Airport, or Burbank-Glendale-Pasadena

the Los Angeles Airport.

2. Notice of Your Supplemental Propeliy Tax Bill (Civil Code Section] l02.6c) Califomia property tax law requires the Assessor to revalue real property at the time the ownership of the property changes. Because of this law, you may receive one or two supplemental tax bills, depending on when your loan closes. The supplemental tax bills are not mailed to your lender. If you have arranged for your property tax payments to be paid through an impound account, the supplemental tax bills will not be paid by your lender. It is your responsibility to pay these supplemental bills directly to the Tax Collector. If you have any question concerning Office. this matter, please call your local Tax Collector's

3. Transfer Fee Disclosure (Civil Code Section 11 02.6e) The sale and transfer of the properties is subject to a transfer fee, as defined in Section 1098. The payment of a transfer fee is required upon transfer of the property. Upon open of escrow, notice will be given to the buyer of the amount of the fee required for the asking price of the real property, the entity to which funds from the fee will be paid, if available, the purposes for which funds from the fee will be used and the date or circumstances under which the obligation to pay the transfer fee expires, if any. Real Estate Transfer Disclosure Statement: Disclosures Upon Transfer of Residential Propeliy A Real Estate Transfer Disclosure Statement (TDS) describing the condition of a property will be provided to the buyer as soon as practicable and before transfer of title and/or close of escrow.

4.

Buyer will be provided, where applicable, a copy of the following documents and/or brochures for information and/or signature: (1) Buyer's Inspection Advisory, (2) protect Your Family FromLead in Your Home, (3) A Brief Guide to Mold, Moisture, and Your Home, (4) Environmental Hazards: A Guide for Homeowners, Buyers, Landlords and Tenants (The Homeowners Guide to Earthquake Safety), (5) Commercial Property Owner's Guide to Earthquake Safety, (6) Smoke Detector Statement of Compliance, (7) Water Heater Statement a/Compliance, (8) Seller's Affidavit of Non-Foreign Status and/or California Withholding Exemption, (9) Lead-Based Paint Hazard Disclosure, and (l0) Supplemental Statutory and Contractual Disclosures.

PARCEL NO. 1 Zone Location: Minimum Bid Approximate Size RD 1.5-1 s 60,000.00 1704 W. Jefferson Blvd. 4,760+(- sq. ft. Los Angeles, CA 90007 Vacant Lot APN 5041-003-900 CD 8 LEGAL DESCRIPTION: THE WESTERLY 25.00 FEET OF LOT 8 AND THE EASTERLY 15.00 FEET OF LOT 9, BLOCK A OF THE ALDERSON AND SON'S WEST JEFFERSON STREET TRACT, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 4, PAGE 35, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

PARCELNO.2 Location:

RDl-l 11514 Willowbrook Ave. s 60,000.00 Los Angeles, CA 90059 APN 6067-001-900 LEGAL DESCRIPTION: THAT PORTION OF LOT 11 OF TRACT NO. 3053, IN THE CITY OF LOS ANGELES, IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, RECORDED IN BOOK 35, PAGE 95 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

fWproximate Size 4,930+/- sq. ft. Vacant Lot CD 15

Minimum Bid

PARCEL NO.3 Location: Zone Minimum Bid Approximate Size Rl-l 1309 Isabel Street 5,600+/- sq. ft. 40,000.00 Los Angeles, CA 90065 Vacant Lot APN 5454~009-900 CD 1 LEGAL DESCRIPTION: LOT 34, IN TRACT 4085, IN THE CITY OF LOS ANGELES, COlfl\fTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 46, PAGES 9 TO 11 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

PARCEL NO. 4 Minimum Bid Approximate Size Location: 164th & Bonsallo Streets 5,930+/- sq. ft. Los Angeles, CA 90247 Vacant Lot APN 6120-021-900 CD 15 LEGAL DESCRIPTION: THAT PORTION OF LOT 1 OF TRACT NO. 18525, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 626, PAGES 38 AND 39 OF MAPS, ThTTHE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

PARCEL NO. 5
Location: Approximate Size Minimwn Bid 15221 De Pauw Street 9,154 +/- sq. ft. Rl-l 990,000.00 Pacific Palisades, CA 90272 Vacant Lot APN: 4412-028-903 CD 11 LEGAL DESCRIPTION: LOT 9, IN BLOCK 19, TRACT NO. 9300 IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 125, PAGES 55 TO 78 INCLUSIVE, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

PARCEL NO, 6
Location: Zone Minimum Bid Approximate Size 15225 De Pauw Street RI-I" $ 990,000.00 9,121 sq. ft. Pacific Palisades, CA 90272 Vacant Lot APN 4412-028-904 CD 11 LEGAL DESCRIPTION: LOT 10, IN BLOCK 19, TRACT NO. 9300 IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 125, PAGES 55 TO 78 INCLUSIVE, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

PARCEL NO. 7
Location: 15233 De Pauw Street, Pacific Palisades CA 90272 Approximate Size 16,920+/- sq. ft. lot with a two-story 2,172 sq. ft. single- family residence built in 1927,3 BRJ1.75BA

Zone Rl-1

Minimwn Bid $ 2,040,000,00

APN 4412-028-905 CD 11 LEGAL DESCRIPTION: PARCEL A, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS SHO\VN ON PARCEL MAP L.A. NO. 970, FILED IN BOOK 8 PAGE 43 OF PARCEL MAPS, I1':r THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

PARCEL NO. 8 Location: 15273 De Pauw Street, Pacific Palisades CA,90272

Approximate Size 7,500+/- sq. ft. lot with a 1, 208 sq. ft. one story single family residence built in 1947
3 BDRMlI .75 BA. CD 11

Zone
RI-J

Minimum Bid $990,000.00

APN 4412-028-909 LEGAL DESCRIPTION: LOT 22 IN BLOCK 19, TRACT NO. 9300 IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 125, PAGES 55 TO 78 INCLUSIVE, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

PARCEL NO. 9 Location: 15275 De Pauw Street, Pacific Palisades

Approximate Size 7,500+1- sq. ft. Lot

Zone

Rl-l

Minimum Bid s 990,000.00

CA,90272 APN 4412-028-911 CD 11 LEGAL DESCRIPTION: LOT 23, IN BLOCK 19, TRACT NO. 9300 IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 125, PAGES 55 TO 78 INCLUSIVE, OF IVlA.-PS,IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

CD 11 LEGAL DESCR1PTION~ LOT 24, IN BLOCK 19, TRACT NO. 9300 IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 125, PAGES 55 TO 78 INCLUSIVE OF MAPS, IN THE OFFICE OF THE COU.NTY RECORDER OF SAID MAP.

PARCEL NO.1 0 Location: 15281 W. De Pauw Street, Pacific Palisades APN 4412-028-912

Approximate Size 7,500+/- sq. ft. lot

Minimum Bid $990,000.00

PARCEL NO, 11
Location: 15285 W. De Pauw Street, Pacific Palisades CA,90272 A12proximate Size 7,500+1 sq. ft Improved with 2,052 sq. ft. one-story single family residence built in 1947 Minimum Bid $1,440,000,00

3 BRDM/2BA
APN 4412-028-913 CD 11 LEGAL DESCRIPTION LOT 22 IN BLOCK 19, TRACT 9300 IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 125, PAGES 55 TO 78 INCLUSIVE, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

PARCEL NO. 12
Location: 10234 National Blvd., Palms, CA 90034 Size 11,064 +I-sq. ft lot Improved with 4,885 sq. ft. building built in 1942 OLD FIRE STATION 43 CD 5 Approximate Zone RI-l Minimum Bid $960,000.00

APN 4314-023-900 LEGAL DESCRIPTION LOT "0", IN BLOCK "Boo OF THE PALMS, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 21, PAGES 43 TO 45 INCLUSIVE OF MISCELLANEOUS RECORDS IN THE OFFICE OF SAID COUNTY.

GEOTECHNICAL REAL ESTATE DISCLOSU~ PROPERTIES: PARCELS 5,6,7,819,10 AND li

FQR P~CIFIC

P_ALISADE

PLEASE REFER TO GEOTECHNICAL REAL ESTATE DISCLOSURE REPORT, W.O. EI70213F, CEO FILE #05-159, NOVEMBER 4, 2009, NOVEMBER 18, 2009 AND JUNE 27, 2012. COpy OF THE REPORTS ARE AVAILABLE FOR REVIEW ON OUR WEB PAGE AND IN THE OFFICES OF THE DEPARTMENT OF GENERAL SERVICES, ASSET MANAGEMENT DIVISION, ROOM 201 CITY HALL SOUTH, 111 E. FIRST STREET, LOS ANGELES, CA 90lH2