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HomeMy WebLinkAbout18-03 CC Resolution RESOLUTION NO. 18-03 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA CONSENTING TO THE SALE OF RORIPAUGH VALLEY RESTORATION'S INTERESTS IN THE RORIPAUGH RANCH DEVELOPMENT AGREEMENT TO WOODSIDE HOMES (WOODSIDE 05S, LP) THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Recitals. The City Council of the City of Temecula does hereby find, determine and declare that: (a) On December 17, 2002, the City Council approved the "Preannexation and Development Agreement by and between the City of Temecula and Ashby USA, LLC," recorded in the Official Records of Riverside County on January 3, 2003 as Document No. 2003-018567. The Development Agreement has been amended three times: (1)the First Amendment to the Development Agreement Between the City of Temecula and Ashby USA, LLC, dated February 14, 2006 and recorded on March 7, 2006 in the Official Records of Riverside County as Document No. 2006-0162268; (2) the Second Amendment to the Development Agreement Between the City of Temecula and Ashby USA, LLC, dated April 23, 2013 and recorded on July 3, 2013 in the Official Records of Riverside County as Document No. 2013-0324057; and (3) the third Amendment to the Development Agreement between the City of Temecula and Ashby USA, LLC, dated March 8, 2016 and recorded on April, 20, 2016 in the Official Records of Riverside County as Document No. 2016-0156276. The December 17, 2002 development agreement, as amended, shall be referred to as the "Development Agreement." (b) Phase II of the Roripaugh Ranch Project(generally east of Butterfield Stage Road) is owned by Roripaugh Valley Restoration, LLC. ("RVR") and Wingsweep Corporation. RVR owns a large portion of Phase II. RVR acquired its interests in Phase II from the Federal Deposit Insurance Corporation ("FDIC") following the failure of AmTrust Bank which had taken over the project from the original developer, Ashby USA, LLC. Under the Development Agreement, RVR is responsible for the payment of 90% of the costs of the public improvements beyond those costs paid with the proceeds of Community Facilities District Bonds and Wingsweep Corporation is responsible for 10% of such costs. (c) RVR proposes to sell its interest in the Roripaugh Ranch Project to Woodside Homes and assign both its rights and obligations in the Development Agreement to Woodside Homes. This means that Woodside Homes will take over the design, property acquisition and construction of the public improvements to the same extent as RVR, share the costs not paid for with the CFD Bonds with Wingsweep in addition to developing homes within the project area. Resos 18-03 1 (d) Section 2.5.3 of the Development Agreement requires the City Council to consent to the assignment of the Development Agreement to Woodside Home because the public improvements have not been completed. The proposed Assignment Agreement between RVR and Woodside Homes specifically provides that Woodside Homes"expressly and unconditionally agrees to assume all duties and obligations of RVR under the DA remaining to be performed." Section 2. Consent to Assignment. In accordance with the provisions of Section 2.5.3 of the Development Agreement, the City Council of the City of Temecula hereby consents to the assignment of RVR's rights and obligations in the Development Agreement to Woodside 05S, LP, a California limited partnership ("Woodside Homes") and hereby authorizes the Mayor to execute the "Consent to Sale" in substantially the form attached hereto as Attachment A with such non-substantive changes as may be approved by the City Attorney as necessary and convenient to implement the purposes of the Agreement. The City Manager is authorized and directed to take all actions necessary and convenient to implement the assignment described in this resolution and to enter into such additional agreements as may be necessary and convenient to implement the assignment, including but not limited to, executing estoppel certificates, operating memoranda and agreements, certifications, escrow, and similar agreements and actions. Section 3. Certification. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 9th day of January, 2018. Matt RahrT, Mayor ATT sir Ran. City Clerk [SEAL] 1 Resos 18-03 2 STATE OF CALIFORNIA ) 111 COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA I, Randi Johl, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 18-03 was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 9th day of January, 2018, by the following vote: AYES: 4 COUNCIL MEMBERS: Comerchero, Edwards, Stewart, Rahn NOES: 0 COUNCIL MEMBERS: None ABSTAIN: 0 COUNCIL MEMBERS: None ABSENT: 1 COUNCIL MEMBERS: Naggar /,t Vim/ Randi Johl, City Clerk 1 1 Resos 18-03 3 111 CITY CONSENT Recording requested by and when recorded mail to Woodside 05S, LP 460 West 50 North, Suite 205 Salt Lake City. UT 84101 Attention: Wayne Farnsworth APN: Space Above Line for Recorder's Use Only CONSENT TO SALE This Consent to Sale of Property (the "Consent") is granted by the City of Temecula (the "City") as of , 2018, pursuant to the terms of the "Preannexation and Development Agreement between the City of Temecula and Ashby USA, LLC" (the "Development Agreement") initially approved by the City on December 17, 2002, and recorded on January 9, 2003, as Document No. 2003-018567 in the Official Records of the County of Riverside. RECITALS A. The Development Agreement pertains to property commonly known as the "Roripaugh Ranch" and has been amended three times, most recently on March 8, 2016 (the "Third Amendment"). The Third Amendment was recorded on April 20, 2016. Within this Consent, the term "Development Agreement" refers to the Development Agreement as amended through the Third Amendment. B. Roripaugh Valley Restoration, LLC, a Delaware limited liability company ("RVR") has succeeded to the interest of Ashby with respect to the RVR Property. RVR currently owns that portion of the Roripaugh Ranch described on Exhibit A to this Consent (the "RVR Property"). The RVR Property consists of a portion of what is generally known as "Phase II" of the development of the Roripaugh Ranch. C. RVR and Woodside 05S, LP, a California limited partnership ("Woodside") have entered into an agreement for Woodside to acquire the RVR Property from RVR (the "Sale"). This Consent is granted with respect to the Sale and the concurrent assignment of RVR's rights and obligations under the Development Agreement (the "DA Assignment"). Pursuant to the Development Agreement, RVR and Woodside have entered into an "Assignment and Assumption Agreement" under which (1) RVR has agreed to convey to Woodside its rights under the Development Agreement and (2) Woodside has agreed to assume RVR's obligations under the 1167795.01/0C 11086-0097/12-20-17/nnj/sdb Development Agreement. The Assignment and Assumption Agreement is attached to this Consent as Exhibit B. D. This Agreement is intended to fulfill the requirements of Section 2.5.3 of the Development Agreement and to serve as the City's consent to the Sale and the Assignment and Assumption Agreement. [Remainder of page intentionally left blank] 1 1167795.0110€ 11086-0097/12-20-17/rmj/sdb 'Z' CITY'S CONSENT By signing this Consent, the City grants its consent to the Sale. In addition, in granting this Consent, the City acknowledges and consents to the terms of the Assignment and Assumption Agreement. "CITY" City of Temecula, a municipal corporation Matt Rahn Mayor Date: ATTEST: Randi Johl City Clerk APPROVED AS TO FORM: Peter M. Thorson City Attorney 1167795 01/0C 11086-0097/12-20-17/nnj/sdb "3' ACKNOWLEDGEMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ss COUNTY OF RIVERSIDE On , before me, ,Notary Public, personally appeared ,who proved to me on the basis of satisfactory evidence to be the person(s)whose name(s) is/are subscribed to the within instrument,and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s)on the instrument the person(s),or the entity upon behalf of which the person(s)acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. 1 (Seal) Notary Public 1167795 01/0C 110860097/11-10-17/,mj/sdb '�' ASSIGNMENT OF DEVELOPMENT AGREEMENT Recording requested by and when recorded mail to Woodside 05S, LP 460 West 50 North, Suite 205 Salt Lake City, UT 84101 Attention: Wayne Farnsworth APN: Space Above Line for Recorder's Use Only AGREEMENT FOR THE ASSIGNMENT AND ASSUMPTION OF RIGHTS AND OBLIGATIONS UNDER THE PREANNEXATION AND DEVELOPMENT AGREEMENT BETWEEN THE CITY OF TEMECULA AND ASHBY USA, LLC This Agreement for the Assignment and Assumption of Rights and Obligations under the Preannexation and Development Agreement between the City of Temecula and Ashby USA,LLC (the "Agreement") is entered into as of , 2018 (the "Effective Date") by Roripaugh Valley Restoration, LLC, a Delaware limited liability company ("RVR") and Woodside 05S, LP, a California limited partnership ("Woodside"). RVR and Woodside shall be referred to within this Agreement as the "Parties." RECITALS A. A Preannexation and Development Agreement between the City of Temecula (the "City") and Ashby USA, LLC ("Ashby") was initially approved by the City on December 17, 2002, and recorded on January 9, 2003, as Document No. 2003-018567 in the Official Records of the County of Riverside (the "DA"). The DA pertains to property commonly known as the "Roripaugh Ranch" and has been amended three times, most recently on March 8, 2016 (the "Third Amendment"). The Third Amendment was recorded on April 20, 2016. Within this Agreement, the term "DA" refers to the DA as amended through the Third Amendment. B. RVR has succeeded to the interest of Ashby with respect to that portion of the Roripaugh Ranch described on Exhibit A to this Agreement (the "RVR Property"). The RVR Property consists of a portion of what is generally known as "Phase II" of the development of the Roripaugh Ranch. C. RVR has agreed to convey to Woodside its interest in the RVR Property (the "Assignment of Property"). D. In connection with the Assignment of Property, RVR has agreed to convey to Woodside those rights under the DA which are set forth in Paragraph 2 below (the `Transfer of Rights"). E. In connection with the Assignment of Property, Woodside has agreed to assume 1169515.01/00 372235-00013/12-26-17/rmj/sdb -1- those obligations of RVR under the DA which are set forth in Paragraph 3 below) (the "Transfer of Obligations"). F. This Agreement is intended to fulfill the requirements of Section 2.5.3 of the DA and to serve as notice to the City of the Assignment of Property, the Transfer of Rights, and the Transfer of Obligations. G. As of the Effective Date of this Agreement, RVR is not in default under the DA. AGREEMENT RVR and Woodside agree as follows: 1. Assignment of Property. The Assignment of Property pertains to and is limited to that portion of the Roripaugh Ranch described on Exhibit A (the "Transferred Property"). 2. Transfer of Rights. In connection with the conveyance of the Transferred Property, RVR has assigned to Woodside all of its rights under the DA with respect to the Transferred Property, including, but not limited to, the vested right to complete development of the Transferred Property pursuant to the DA. 3. Transfer of Obligations. RVR has delegated to Woodside and Woodside expressly and unconditionally agrees to assume all duties and obligations of RVR under the IDA remaining to be performed with respect to the Transferred Property as of the Effective Date. RVR retains no obligations under the DA. RVR has delegated to Woodside and Woodside expressly and unconditionally agrees to assume all duties and obligations of RVR under that certain Joint Development Agreement between RVR and Wingsweep Corporation, a California corporation, recorded on July 21, 2017 in the Riverside County Recorder's Office as Instrument No. 2017-0299518, as amended by that certain First Amendment to Joint Development Agreement recorded on July 21, 2017 in the Riverside County Recorder's Office as Instrument No. 2017-0299519 pertaining to the allocation of costs for the design, acquisition of property and construction of Public Improvements for Phase II of Roripaugh Ranch as described in the DA. [Remainder of page intentionally left blank] 1169515.01/00 372235-00013/12-26-17/rmj/sdb "z' 4. Execution. RVR and the Woodside have signed this Agreement on the dates indicated below next to their respective signatures. "RVR" Roripaugh Valley Restoration, LLC, a Delaware limited liability company By: Name. Its: Date: "Woodside" Woodside 05S, LP, a California limited partnership By: ' Name. Its: Date: 1167794 01/0C 11086-0097112.20471mg/sdb '3' Exhibit A Legal Description of Property See attached • 1167794 01/0C 11086-0097/12-20-17/mij/sdb 4- ACKNOWLEDGEMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness. accuracy.or validity of that document. STATE OF CALIFORNIA ) ss COUNTY OF RIVERSIDE Oil ,before me, ,Notary Public, personally appeared ,who proved to me on the basis of satisfactory evidence to be the person(s)whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s)on the instrument the person(s), or the entity upon behalf of which the person(s)acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. 111 WITNESS my hand and official seal. (Seal) Notary Public 1167794 0110C 11086-0097/12-20-17/mij/sdb '�' F-a k'x s`+fir `-W -3. i^- .s"i 3. 5'r y Xy r +q f+ 7+ t : k 1? l ' EXHIBIT"A" LEGAL DESCRIPTION • THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF TEMECULA,IN COUNTY OF RIVERSIDE,SPATE OF CALIFORNIA,ANDS DESCRIBED AS FOLLOWS: THE PARCEL A: LOTS 7 THROUGH 11 AND LETTERED LOTS"P","J"AND"L"OF TRACT 29353-2,IN THE CITY OF TEMECULA,COUNTY 01?RIVERSIDE,STATE OF CALIFORNIA,AS PER PLAT RECORDED IN BOOK 342 OF MAPS,PAGES 73 THROUGH 85,INCLUSIVE,RECORDS OF SAID COUNTY. PARCEL B: LOTS 1 THROUGH 15 AND LETTER LOT"A"OF TRACT 29353,TN THE CITY OF TEMECULA, COUNTY OF RIVERSIDE,STATE OF CALIFORNIA,AS PER MAP RECORDED IN BOOK 401 OF MAPS PAGES 89 THROUGH 96 INCLUSIVE,RECORDS OF SAID COUNTY. 111 APNS: 9fi4-180.004.6(Lot 7 of Parcel A) 964-180.005-7(Lot B of Parcel A) 964-180.007-9(Lot 10 of Parcel A) 964-180-008-0(Lot 11 of Parcel A) 1 964-180-017-8(Lot I of Parcel B) 964-180-018-9(Lot 2 of Parcel B) 964-180-019-0(Lot 3 of Parcel B) 964-1804020-0(Lot 4 of Parcel B) 964-180421-1(Lot 5 of Parcel 13-Common Area) 964-180-022.2(Lot 6 of Parcel B) 964-180-023-3(Lot 7 of Parcel B) 964-180-024.4(Lot 8 of Parcel B) 964-180-025-5(Lot 9 of Parcel B) 964-180426-6(Lot 10 of Parcel B) 964-180-027-7(Lot 11 of Parcel B) 964-180-028-8(Lot 12 of Parcel B-Common Area) 964-180-029-9(Lot 13 of Parcel B-Common Area) 964-180-030.9(Lot 14 of Parcel B-Common Area) 964-180-031-0(Lot 15 of Parcel B-Common Area) 964-180-032-1(Lot A of Parcel B Compton Area) I 964-180.033-2(Lot 9 of Parcel A) 964-180-034-3(Lot J of Parcel A-Common Area) 964-180-036-5(Lot L of Parcel A Common Area 964-180-037-6(Lot I of Parcel A-Common Area) I 07834919001741x6 Exhibit"A"-I