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HomeMy WebLinkAbout03-06 RDA Resolution RESOLUTION NO. RDA 03-06 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA APPROVING THAT CERTAIN AGREEMENT ENTITLED "PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS" FOR CERTAIN REAL PROPERTY LOCATED AT 28690 MERCEDES STREET IN THE CITY OF TEMECULA THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The Board of Directors of the Redevelopment Agency of the City of Temecula hereby finds, determines and declares that: a. The Agency is currently implementing the Redevelopment Plan for Redevelopment Project No. 1--1988, originally approved by the Board of Supervisors of Riverside County on July 12, 1988 prior to incorporation of the City of Temecula and subsequently approved and transferred to the Redevelopment Agency of the City of Temecula on April 9, 1991 (the "Plan"). b. The Agency proposes to purchase the property described in the "Pumhase and Sale Agreement and Escrow Instructions" attached hereto as Exhibit A. and located at 28690 Mercedes Street in the City of Temecula (APN 922-042-004, 005,) for redevelopment purposes consistent with the Agency authority under the Plan and the Community Redevelopment Act, Health and Safety Code Section 33000 et seq. c. The Agreement is consistent with the Plan and with the Implementation Plan adopted by the Agency. d. The Agency Board has duly considered all terms and conditions of the proposed Agreement and believes that such agreement is in the best interests of the Agency and City and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable State and local law requirements. e. This action is being undertaken pursuant to the Plan for which a full and complete Environmental Impact Report was prepared and certified prior to adoption of the Plan. Moreover the acquisition of property by itself will have no impact on the environment as it is simply the change in ownership of the property without a change in the physical condition of the property. None of the conditions described in 14 Cal. Admin. Code § 15162 are found to exist. Therefore, pursuant to the provisions of CEQA and, specifically, 14 Cal. Admin. Code §§ 15162 and 15180, neither a subsequent nor a supplemental Environmental Impact Report is required for the subject agreement. Section 2. The Board of Directors of the Redevelopment Agency of the City of Temecula hereby approves that certain "Purchase and Sale Agreement and Escrow Instructions" between the Redevelopment Agency of the City of Temecula, a public body corporate and politic, and The Theater Foundation, which Purchase Agreement is dated as of March 18, 2003. The Chairperson of the Agency is hereby authorized and directed to execute the Agreement on behalf of the Agency. R:/RDA Resos 2003/RDA 03-06 I PASSED, APPROVED AND ADOPTED, by the Board of Directors of the Temecula Redevelopment Agency this 18th day of March, 2003. ATTEST: [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, CMC, Secretary of the Temecula Redevelopment Agency, do hereby certify that the foregoing Resolution No. RDA 03-06 was duly and regularly adopted by the Board of Directors of the Temecuia Redevelopment Agency at a regular meeting thereof held on the 18th day of March, 2003, by the following vote: AYES: 5 AGENCY MEMBERS: Comerchero, Naggar, Pratt, Stone, Roberts NOES: 0 AGENCY MEMBERS: None ABSENT: 0 AGENCY MEMBERS: None ABSTAIN: 0 AGENCY MEMBERS: None R:/RDA Resos 2003/RDA 03-06 2 PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS (Theater Foundation Property) THIS PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS ("Agreement") is dated and entered into as of March 18, 2003 by and between THE THEATER FOUNDATION, a Califomia non-profit corporation ("Seller"), and THE CITY OF TEMECULA, a municipal corporation ("Buyer"), and constitutes both an agreement to purchase and sell real property between the parties and the parties' escrow instructions directed to First American Title Insurance Company ("Escrow Holder"). In consideration of the mutual promises and premises herein, the parties hereto agree as follows: 1. Purchase and Sale. On the Close of Escrow (as herein defined), Seller agrees to sell the Property to Buyer, and Buyer agrees to buy the Property from Seller, on the terms and conditions hereinafter set forth. Buyer intends to use the Property for public purposes. 2. Purchase Price. The total purchase price for the Property to be paid by Buyer is the sum often dollars ($10.00) (the "Purchase Price"), which sum shall be paid in full in cash on the Close of Escrow. 3. Title and Tire Insurance. Upon the Opening of Escrow, Escrow Holder shall order from First American Title Company ("Title Company") a title commitment for the Property. Escrow Holder shall also request two copies each of all instruments identified as exceptions on said title commitment. Upon receipt of the foregoing, Escrow Holder shall deliver these instruments and the title commitment to Buyer and Seller. Buyer's fee title to the Property shall be insured at the Close of Escrow by a CLTA Owner's Standard Coverage Policy of Title Insurance in the amount of the fair market value of the Property, three hundred thousand dollars ($300,000.00) (the "Policy"). The Policy of title insurance provided for pursuant to this Section shall insure Buyer's fee interest in the Property flee and clear of all liens, encumbrances, restrictions, and fights-of-way of record, subject only to the following permitted conditions of title C'Permitted Title Exceptions"): (a) The applicable zoning, building and development regulations of any municipality, county, state or federal jurisdiction affecting the Property; and Co) Those non-monetary exceptions approved by Buyer within fifteen (15) business days after the date Buyer receives the title commitment and legible copies of all insmnnents noted as exceptions therein. If Buyer unconditionally disapproves any such exceptions, Escrow shall thereupon terminate, all funds deposited therein shall be refunded to Buyer (less Buyer's share of escrow cancellation charges), and this Agreement shall be of no further force or effect. If Buyer conditionally -1-- R:\Oldtown\OTACQ\TRDA Pur_Sal¢ Musicians Workshop. DOC disapproves any such exceptions, then Seller shall use Seller's best efforts to cause such exceptions to be removed by the Close of Escrow. If such conditionally disapproved non-monetary exceptions are not removed by the Close of Escrow, Buyer may, at Buyer's option, either accept the Property subject to such encumbrances, or terminate the Escrow and receive a refund of all funds deposited into Escrow (less Buyer's share of escrow cancellation charges), if any, and this Agreement shall thereupon be of no further force or effect. At the Close of Escrow, Buyer's fee title to the Property shall be free and clear of all monetary encumbrances. 4. Grant Deed. Seller covenants and agrees to deposit with Escrow Holder prior to the Close of Escrow a Grant Deed duly executed and acknowledged by Seller, granting and conveying to Buyer the Property. The Grant Deed shall be in a form satisfactory to Buyer and Buyer's counsel and shall be accepted by Buyer prior to recording. 5. Authorization to Record Documents and Disburse Funds. Escrow Holder is hereby authorized to record the documents and disburse the funds and documents called for hereunder upon the Close of Escrow, provided each of the following conditions has then been fulfilled: (a) Title Company can issue in favor of Buyer thc Policy, showing the Property vested in Buyer subject only to thc Permitted Title Exceptions. (b) Escrow Holder shall have received Buyer's notice of approval or satisfaction or waiver of all of the contingencies to Buyer's obligations hereunder, as provided for in Section 11; and (c) Seller shall have deposited in Escrow the Grant Deed required by Section 4. Unless otherwise instructed in writing, Escrow Holder is authorized to record at the Close of Escrow any insmunent delivered through this Escrow if necessary or proper for issuance of the Policy, including the Grant Deed. 6. Escrow. The parties hereby establish an escrow ("Escrow") to accommodate the transaction contemplated by this Agreement. For purposes of this Agreement, Opening of Escrow shall mean the date on which Escrow Holder shall have received a fully executed original of this Agreement from Buyer and Seller. Close of Escrow shall be the date upon which the Grant Deed to Buyer is delivered and recorded in the Official Records of the County of Riverside. The Close of Escrow shall be on the date which is not later than the first business day occurring sixty (60) days after the date of this Agreement, or such earlier date as the parties may agree. Before the Close of Escrow, all risk of loss and damage to the Property from any source whatsoever shall be solely that of Seller. Buyer shall pay all escrow costs. 7. Escrow Charges. Buyer shall pay for the cost of the CLTA Owner's Standard Coverage Policy of Title Insurance, the Escrow fees and Escrow -2-- R:\Oldtown\OTACQ\TRDA Pur_Sal¢ Musicians Workshop. DOC Holder's customary out-of-pocket expenses for messenger services, long distance telephone, etc. Buyer shall pay for recording the Grant Deed and any documentary or other local transfer taxes, and any other recording fees. If the Escrow shall fail to close through no fault of either party, Buyer shall pay all Escrow cancellation charges. 8. License to Enter. Seller hereby grants to Buyer and Buyer's authorized agents, contractors, consultants, assigns, attorneys, accountants and other representatives an irrevocable license to enter upon the Property for the purpose of making inspections and other examinations of the Property, including, but not limited to, the right to perform soil and geological tests of the Property and an environmental site assessment thereof. Buyer shall give Seller reasonable notice before going on the the Property. Buyer does hereby indemnify and forever save Seller, Seller's heirs, successors and assigns, and the Property, free and harmless from and against any and all liability, loss, damages and costs and expenses, demands, causes of action, claims or judgments, whether or not arising fi:om or occurring out of any damage to the Property as a result of any accident or other occurrence at the Property which is in any way connected with Buyer's inspections or non-permanent improvements involving entrance onto the Property pursuant to this Section. If Buyer fails to acquire the Property due to Buyer's default, this license shall terminate upon the termination of Buyer's right to purchase the Property. In such event, Buyer shall remove or cause to be removed all Buyer's personal property, facilities, tools and equipment from the Property. 9. Warranties and Representations of Seller. Seller hereby represents and warrants to Buyer the following, it being expressly understood and agreed that all such representations and warranties are to be true and correct as of the Close of Escrow and shall survive the Close of Escrow: (a) That (i) on the Close of Escrow the Property shall be flee and clear of any and all hazardous or toxic substances, materials, and waste, including, but not limited to, asbestos; (ii) the Property is in compliance with all applicable statutes and regulations, including environmental, health and safety requirements; (iii) all businesses on the Property have disposed of their waste in accordance with all applicable statutes, ordinances, and regulations; and (iv) Seller has no notice of any pending or threatened action or proceeding arising out of the condition of the Property or alleged violation of environmental, health or safety statutes, ordinance or regulations To this end, it is agreed that notwithstanding the conveyance of the Property to Buyer, Seller shall indemnify, protect, defend and hold ham~ess Buyer fi:om and against any and all claims, liabilities, suits, losses, costs, expenses and damages, including but not limited to attorneys' fees and costs, arising out of any claim for loss or damage to any property, including the Property, injuries to or death of persons, or for the cost of cleaning up the Property and removing hazardous or toxic substances, materials and waste therefrom, by reason of contamination or adverse effects on the environment, or by reason of any statutes, ordinances, orders, roles or regulations of any governmental entity or agency requiring the clean-up of the Property, caused by or resulting from any hazardous material, substance or waste existing on, under or about the Property on the Close of Escrow. -3- R:\Oldtown\OTACQ\TRDA Put_Sale Musicians Workshop. DOC (b) That Seller is the sole owner of the Property flee and clear of ail liens, claims, encumbrances, easements, encroachments from adjacent properties, encroachments by improvements or vegetation on the Property onto adjacent property, or rights of way of any nature, other than those that may appear on the title commitment. Seller shall not further encumber the Property or allow the Property or to be further encumbered prior to the Close of Escrow. (c) Neither this Agreement nor anything provided to be done hereunder including the transfer of the Property to Buyer, violates or shall violate any contract, agreement or instrument to which Seller is a party, or which affects the Property, and the sale of the Property herein contemplated does not require the consent of any party not a signatory hereto. (d) There are no mechanics', materialmen's or similar claims or liens presently claimed or which will be claimed against the Property for work performed or commenced prior to the date of this Agreement. Seller agrees to hold Buyer harmless from all costs, expenses, liabilities, losses, charges, fees, including attorney fees, arising from or relating to any such lien or any similar lien claimed against the Property and arising from work performed or commenced prior to the Close of Escrow. (e) There are no written or oral leases or contractual right or option to lease, purchase, or otherwise enjoy possession, rights or interest of any nature in and to the Property or any part thereof, and no persons have any right of possession to the Property or any part thereof. (f) Seller has no knowledge of any pending, threatened or potential litigation, action or proceeding against Seller or any other Party before any court or administrative tribunal which is in any way related to the Property. 10. FULL PAYMENT OF ALL OBLIGATIONS OF CITY. It is understood and agreed between Seller and Buyer that the payments made to Seller as set forth in this Agreement represent an all inclusive settlement and is full and complete payment for just compensation for the acquisition of all property interests pertaining to the Property and includes and satisfies any and all other payments, if any, which may be required by law to be paid to Seller arising out of the acquisition and displacement of the Seller and persons residing on the Property, and specifically includes, but is not limited to, claims for severance and other damages, attorney's fees, interest, expenses of litigation, expert's fees, precondemnation damages, inverse condemnation, owner participation rights under the Redevelopment Plan, relocation assistance and/or benefits under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601, et seq.), if applicable, or under Title 1, Division 7, Chapter 1 of the Government Code of the State of California (Section 7260, et seq.), and loss of business goodwill under the Eminent Domain Law, Code of Civil Procedure Section 1263.510, and all costs and expenses whatever in connection therewith. Seller hereby acknowledges that Buyer has advised Seller of the possible availability of such relocation -4- R:\Oldtown\OTACQ\TRDA Pur._Snle Musicians Workshop. DOC assistance rights to Seller and that the waiver of all rights by Seller herein set forth as free and voluntary. 11. Buyer's Contingencies. For the benefit of Buyer, the Closing of Escrow and the Buyer's obligation to consummate the purchase of the Property shall be contingent upon and subject to the occurrence of all of the following (or Buyer's written waiver thereof, it being agreed that Buyer can waive any or all such contingencies) on or before the Close of Escrow: (a) That as of the Close of Escrow the representations and warranties of Seller contained in this Agreement are all tree and correct. (b) The delivery of all documents pursuant to Section 4 hereof. (c) Title Company's commitment to issue in favor of Buyer of a CLTA Standard Coverage Owner's Policy of Title Insurance with liability equal to the Purchase Price showing Buyer's fee interest in the Property subject only to the Permitted Title Exceptions. (d) Buyer's approval prior to the Close of Escrow of any enviromental site assessment, soils or geological reports, or other physical inspections of the Property or the underlying real property that Buyer might perform prior to the Close of Escrow. 12. Certification of Non-Foreign Status. Seller covenants to deliver to Escrow a certification of Non-Foreign Status in accordance with I.R.C. Section 1445, and a similar notice pursuant to California Revenue and Taxation Code Sections 18805 and 26131, prior to the Close of Escrow. 13. Default. In the event of a breach or default under this Agreement by either Buyer or Seller, the non-defaulting party shall have, in addition to all rights available at law or equity, the right to terminate this Agreement and the Escrow for the purchase and sale of the Property, by delivering written notice thereof to the defaulting party and to Escrow Holder, and if Buyer is the non-defaulting party, Buyer shall thereupon promptly receive a refund of all prior deposits, if any. Such termination of the Escrow by a non-defaulting party shall be without prejudice to the non-defaulting party's rights and remedies at law or equity. 14. Notices. All notices and demands shall be given in writing by certified mail, postage prepaid, and return receipt requested, or by personal delivery. Notices shall be considered given upon the earlier of (a) personal delivery, (b) two (2) business days following deposit in the United States mail, postage prepaid, certified or registered, return receipt requested, or (c) one (1) business day following deposit with an overnight carder service. A copy of all notices shall be sent to Escrow Holder. Notices shall be addressed as provided below for the respective party; provided that if any party gives notice in writing of a change of name or address, notices to such party shall thereafter be given as demanded in that notice: -5- R:\Oldt own\OTACQ\TRDA Put_Sale Musicians Workshop.lX)C BUYER: City of Temecula 43200 Business Park Drive Temecula, Caiifomia 92590 Attn: City Manager COPY TO: Richards, Watson & Gershon 355 South Grand Avenue, 40th Fl. Los Angeles, California 90071 Attn: Peter M. Thorson, Esq. SELLER: The Theater Foundation ESCROW First American Title Company HOLDER 3625 Fourteenth Street Riverside, CA 92502 15. Broker's Commissions. Seller shall pay all claims of brokers, agents or finders, licensed or unlicensed, and ail claims of real estate or other consultants which exist or may arise as a result of Seller's actions with respect to the Property. Buyer shail not be liable for any such fees or claims and Seller shail indemnify Buyer, its officers, employees and agents, from any and all costs, liabilities or judgments, including attomeys' fees, incurred in defending or paying any such claims. 16. Further Instructions. Each party agrees to execute such other and further escrow instructions as may be necessary or proper in order to consummate the transaction contemplated by this Agreement. 17. Amendments. Any amendments to this Agreement shall be effective only when duly executed by Buyer and Seller and deposited with Escrow Holder. 18. Miscellaneous (a) Applicable Law. This Agreement shail be construed and interpreted under, and governed and enforced according to the laws of the State of Caiifornla. Co) Entire Agreement. This Agreement supersedes any prior agreement, oral or written, and together with the Exhibits hereto and any agreements delivered pursuant hereto, contains the entire agreement between Buyer and Seller on the subject matter hereof. No subsequent agreement, representation or promise made by either party hereto, or by or to any employee, officer, agent or representative of either party, shall be of any effect unless it is in writing and executed by the party to be bound thereby. No person is authorized to make, and by execution hereof Seller and Buyer acknowledge that no person has made, any representation, warranty, guaranty or promise -6-- R:\Oldtown\OTACQ\TRDA Put_Sale Musicians Workshop. DOC except as set forth herein; and no agreement, statement, representation or promise made by any such person which is not contained herein shall be valid or binding on Seller or Buyer. (c) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of the parties hereto. (d) Time of Essence. The parties acknowledge that time is of the essence in this Agreement, notwithstanding anything to the contrary in the Escrow company's general Escrow instructions. (e) Remedies Not Exclusive and Waivers. No remedy conferred by any of the specific provisions of this Agreement is intended to be exclusive of any other remedy and each and every remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute or otherwise. The election of any one or more remedies shall not constitute a waiver of the right to pursue other available remedies. (f) Interpretation and Construction. The parties agree that each party has reviewed and revised this Agreement and have had the opportunity to have their counsel and real estate advisors review and revise this agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendments or exhibits thereto. In this Agreement the neuter gender includes the feminine and masculine, and singular number includes the plural, and the words "person" and "party" include corporation, partnership, firm, trust, or association where ever the context so requires. The recitals and captions of the sections and subsections of this Agreement are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify or aid in the interpretation, construction or meaning of the provisions of this Agreement. (g) City Manager Authority. The City Manager is hereby directed and authorized to execute such other documents, including without limitation, escrow instructions and amendments thereto, certificates of acceptance, agreements for payments of lost rent, or certifications, as may be necessary or convenient to implement the terms of this Agreement. (h) Authority to Execute. Each of the parties represents and warrants to the other that all actions necessary for the approval of this Agreement by the parties has been duly completed and that each of the persons signing this Agreement below has been duly authorized to execute this Agreement on behalf of his or her principal. 19. Attorneys' Fees. If either party hereto incurs attorneys' fees in order to enforce, defend or interpret any of the terms, provisions or conditions of this Agreement or because of a breach of this Agreement by the other party, the -7- R:\Oldtown\OTACQ\TRDA Put_Sale Musicians Workshop. DOC prevailing party, whether by suit, negotiation, arbitration or settlement shall be entitled to recover reasonable attorneys' fees from the other party. 20. Assignment. Buyer may assign its rights under this Agreement or may designate a nominee to acquire title to the Property, provided, however, that any such assignmem or designation shall not relieve Buyer of any of its obligations under this Agreement. 21. Escrow Holder Need Not Be Concerned. Escrow Holder is not to be concerned with Section 8, 9, 10, and 15 hereof, and Buyer and Seller release Escrow Holder from liability or obligation as to Section 8, 9, 10, and 15 hereof. ///// ///// -8- R:\Oldtown\OTACQ\TRDA Put_Sale Musicians Workshop. DOC IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. SELLER THE THEATER FOUNDATION By: Name: Position: By: Name: Position: BUYER CITY OF TEMECULA, a municipal corporation: Jeff Stone, Mayor ATTEST: Susan W. Jones, CMC City Clerk/Agency Secretary APPROVED AS TO FORM: By Peter M. Thorson City Attorney -9- R:\OI dtowa~DTACQ\TRDA Put_Sale Musicians Workshop. DOC EXHIBIT "A" Legal Description of the Property -IO-- R:\Oldtown\OTACQ\TRDA Put_Sale Musicians Workshop. DOC A'I-rACHMENT NO. 3 VICINITY MAP City of Temecula Site /H~ Febma~ 4, 2003