County to Put 19 Properties on the Block June 20 : Auction: Officials hope to pare bankruptcy debts with proceeds from real estate valued at $32.5 million. Success could prompt further sales.
COSTA MESA — Orange County Chief Executive Officer William J. Popejoy on Thursday specified 19 parcels of county-owned property and some secured notes that will go on the auction block June 20 as the county scrambles to raise cash to dig itself out of bankruptcy.
Other, similar sales may follow if the auction is successful.
“We’re selling everything we can,†everything that isn’t “nailed down,†Popejoy said. Officials are also considering whether other government land--including the County Hall of Administration--should be turned over to private hands for the right price and leased back for county use.
The property to be auctioned has an estimated worth of $32.5 million and includes a parking lot near The Pond and Anaheim Stadium in Anaheim and the Santa Ana land on which the Phoenix House drug rehabilitation center is located.
Bargain hunters are welcome, but beware.
The county has set minimum prices and is prepared to reject bids that do not meet these figures, which are closely held government secrets.
It won’t exactly be a fire sale, but the county is motivated to move the property, Popejoy said.
“We recognize in this real estate market, which is weak, it’s hard to expect the top price,†Popejoy said. “I suspect some people, in that process, will get what they consider a bargain. But it will be a fair bargain.â€
The selling of county property is part of the effort to help the county recover from a $1.7-billion investment pool loss that triggered the largest municipal bankruptcy in U.S. history. Other efforts to raise money include Measure R, a proposed half-cent sales tax that goes before voters June 27, and slashing the county’s budget nearly in half.
But Popejoy said Thursday that additional budget cuts are needed to help the county live within its means, even if the recovery plan succeeds on all fronts.
“Even if Measure R passes, the budget will need a trimming,†Popejoy said. “If it fails, it will require major surgery.â€
The auction is being advertised across the country and around the world, said William W. Lange, president of Newport Beach-based LFC Marketing Services, which has international contacts and has agreed to provide its services to the county for nothing.
“We’re seeing a lot of interest,†said Lange, who is overseeing the auction and reported that a few hundred contacts have been made by possible buyers. Lange declined to reveal those who may want to snap up the county goods.
But some have made no secret of their interest. Some cities--Santa Ana, for example--want to negotiate for property in exchange for funds the county owes them.
The Santa Ana council is expected to vote Monday on whether to enter into discussions to buy approximately $8.8 million worth of county property, including the site of the Phoenix House drug treatment center.
Popejoy, however, said Thursday that such a deal “will not be entertained.†He said that he chose a public auction to remove perceptions that only county “insiders†stand a chance and that he does not want to give some bankruptcy creditors an advantage over others.
“This is open to the public,†he said.
Phoenix House is part of the Fruit Street Complex, a package of five parcels that is expected to be one of the bigger moneymakers on auction day. The 12-acre complex, most of which is being used as a county maintenance yard, is valued at about $4.7 million and is also being considered by Santa Ana for possible purchase.
The county wants potential buyers to bring cashier’s checks for down payments and wants the deals sealed within 45 days. The county reserves the right to change its mind about selling property for 48 hours after the auction, Popejoy said.
Auctioneers are also looking for ways to provide financing options, and while it is unclear how many buyers will attend, there will be seating for as many as 1,600 people, Lange said.
Bids will be accepted only during the auction at the Red Lion Hotel in Costa Mesa. Information: (800) 966-0633.
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Going to the Gavel
Orange County is putting the following 19 properties and notes on the auction block June 20 in an effort to raise money for bankruptcy recovery:
* Commercial land at 3333 Coast Highway in Newport Beach.
* Unimproved land on the north side of Santa Ana Boulevard, west of Grand Avenue, Santa Ana
* Government buildings and land at 1207, 1102, 1111, 1140 and 1143-1145 E. Fruit St., Santa Ana
* Commercial buildings and land at 1000-1010 S. Harbor Blvd., Anaheim
* Vacant commercial land on 13th Street east of Beach Boulevard, Westminster
* Public building zoned residential, 521 N. Figueroa St., Santa Ana
* Government land at 751 W. Santa Ana Blvd., currently used for parking
* Unimproved land at 1600 W. Garden Grove Blvd., Santa Ana
* Library building and land at 2300 Beverly Manor Road, Seal Beach
* Unimproved land near the Riverside Freeway east of Glassell Street, Anaheim
* Orange County Housing Authority office building at 2043 N. Broadway, Santa Ana
* Parking lot at 2040 N. Broadway, Santa Ana
* Parking lot at the northwest intersection of Katella Avenue and Douglass Road, Anaheim
* First trust deed loan with principal balance of roughly $318,643, secured by eight acres of land in Anaheim located near Frontera Street and Riverside Freeway
* First trust deed loan with principal balance of roughly $1.4 million, secured by fully occupied commercial office building at 511 and 515 N. Sycamore St., Santa Ana
Times correspondent Jeff Kass contributed to this report.
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