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HomeMy WebLinkAbout061995 CSC AgendaAGENDA TEMECULA COMMUNITY SERVICES COMMISSION ADJOURNED REGULAR MEETING TO BE HELD AT TEMECULA CITY HALL Monday, June 19, 1995 6:30 P.M. CALL TO ORDER: Flag Salute Commissioner Nimeshein ROLL CALL: Comerchero, Nimeshein, Rund, Soltysiak, Miller PUBLIC COMMENTS: A total of 15 minutes is provided so members of the public can address the Commissioners on items that are not listed on the Agenda. Speakers are limited to three (3) minutes each. If you desire to speak to the Commissioners about an item not listed on the Agenda, a green "Request to Speak" form should be filled out and filed with the Commission Secretary. When you are called to speak, please come forward and state your name and address. For all other agenda items, a "Request to Speak" form must be filed with the Commission Secretary before the item is addressed by the Commission. There is a three (3) minute time limit for individual speakers. NOTICE TO THE PUBLIC All matters listed under Consent Calendar are considered to be routine and all will be enacted by one roll call vote. There will be no discussion of these items unless members of the Commission request specific items be removed from the Consent Calendar for separate action. COMMUNITY SERVICES COMMISSION AGENDA JUNE 19. 1995 COMMISSION BUSINESS Acouisition Of The Duck Pond Property RECOMMENDATION: 1.1 Approve the agreement between KRDC, Inc. and the City of Temecula for the acquisition of the Duck Pond property. 1.2 Approve the inclusion of the Duck Pond Rehabilitation Project into the City's Capital Improvement Program for Fiscal Year 1995-96. COMMUNITY SERVICES DIRECTOR REPORT COMMUNITY SERVICES COMMISSION REPORT ADJOURNMENT The next regular meeting of the City of Temecula Community Services Commission will be held on Monday, July 10, 1995, 7:00 P.M., at Temecula City Hall Main Conference Room, 43174 Business Park Drive, Temecula, California. ITEM NO. CITY OF TEMECULA AGENDA REPORT TO: Community Services Commission FROM: Shawn D. Nelson, Director of Community Services DATE: June 19, 1995 SUBJECT: Acquisition of the Duck Pond Property PREPARED BY: ~ ~d/Beryl Yasinosky, Management Assistant RECOMMENDATION: That the Community Services Commission: Approve the agreement between KRDC, Inc. and the City of Temecula for the acquisition of the Duck Pond property. Approve the inclusion of the Duck Pond Rehabilitation Project into the City's Capital Improvement Program for Fiscal Year 1995-96. BACKGROUND: The attached agreement has been negotiated with KRDC, Inc. to provide for the dedication of approximately seven (7) acres of park land to the City of Temecula. Located on the southeast corner of Rancho California Road and Ynez Road, the Duck Pond property has been a popular focal point for residents and visitors within the community for many years. Approval of the agreement will ensure that this site continues to be utilized as a passive, public park facility. Approximately 4.75 acres of the park property is developed with a duck pond, trees and surrounding landscaping. The remaining 2.25 acres is undeveloped. Pursuant to the results of a recently completed Phase I Environmental Site Assessment, the potential for hazardous materials or petroleum contamination on this property is low. In consideration of the park dedication, KRDC, Inc. would receive credits towards future park land fees that the City would have otherwise collected. The credits consist of 990,000 per acre for the developed 4.75 acres and 945,000 per acre for the undeveloped 2.25 acres. As a result, KRDC, inc. would receive a total credit of 9528,750towards future Quimby or Public Facilities Fees. No existing City funds would be paid to acquire this property. Upon the close of a 45 day escrow period, the developer will provide a policy of title insurance to the City to insure that the property is free and clear of any liens or encumbrances, except for A.D. 88-12. However, the City's existing sales tax reimbursement program currently covers 100% of the debt service costs for the first series of bonds that have been sold. The site will require approximately 950,000 in rehabilitation costs for the existing park area and approximately 9168,750will be required to construct a parking area on the undeveloped portion of the property. Based upon previous City park projects, staff has determined that normal acquisition costs and development costs for 4.75 acres of developed park land and 2.25 acres of undeveloped land is approximately 91.1 million dollars. Therefore, the acquisition of the property in the form of fee credits (9528,750) plus rehabilitation costs (950,000) is significantly less than normal acquisition and construction of City park facilities. FISCAL IMPACT: No City funds will be used to acquire the property. Upon acquisition of the property, KRDC, Inc. would receive fee credits totaling $528,750 to be utilized towards future Quimby or Public Facilities Fees. The approval for inclusion into the City's Capital improvement Program for Fiscal Year 1995- 96 would allow for the appropriation of $218,750 towards the rehabilitation of the existing park and construction of an adjacent parking lot. ATTACHMENTS: Location Map. Agreement for Acquisition of Real Property Between the City of Temecula and KRDC, Inc. SITE PLAN o~ 2,25 ACRES :/ ADDITIONAL CITY PARCEL O LEGEND 1) EXISTING POND 3) 36-I~CH STORM DRAIN 5) IRRIGATION CONTROL PANEL 2) GTE VAULT 4) LANDSCAPED AREAS AGREEMENT FOR ACQUISITION OF REAL PROPERTY BY AND BETWEEN THE CITY OF TEMECULA AND KRDC, INC. FOR CERTAIN REAL PROPERTY AT THE SOUTHEAST CORNER OF RANCHO CALIFORNIA ROAD AND YNEZ ROAD IN THE CITY OF TEMECULA THIS AGREEMENT is entered into as of , 1995, and between City of Temecula, a municipal corporation formed under the laws of California ("City"), and KRDC, Inc. ("Seller"). In consideration of the mutnal covenants and agreements contained herein, the parties hereto agree as follows: 1. AGREEMENT TO SELL AND PURCHASE. For valuable consideration, Seller agrees to sell to City, and City agrees to purchase from Seller, upon the terms and for the consideration set forth in this Agreement, all that certain real property, fixtures and personal property ("Property") consisting of approximately seven (7) acres located generally at the southeast comer of Rancho California Road and Ynez Road in the City of Temecula and legally described as set forth on Exhibit A, which is attached hereto and incorporated herein by this reference. a. Prior to the close of escrow, the Seller shall have caused, at its expense, a survey to be completed by a licensed surveyor, approved by the City, confirming the description of the Property. The Property shall not be less than seven (7) acres. b. The Seller shall reserve an easement for an access road from Ynez Road to and for the benefit of Seller's property, described in Exhibit B (the "Adjoining Parcel"). Said easement will be appurtenant to and transfertable with the Adjoining Parcel. City shall designate location of the access road and construct and maintain the road at City's expense. The access road shall be constructed of asphalt and shall not be less than 20' in roadway width. City shall be responsible for all costs of connecting said access road 16 Ynez Road. c. Seller shah further reserve for the benefit of the Adjoining Parcel an access and maintenance easement of approximately five feet in width for maintenance of improvements located on the Adjoining Parcel, which easement is depicted on Exhibit C hereto. d. Seller shall further reserve for the benefit of other adjacent land owned by Seller, a temporary 10-foot wide easement for the grading of said land, in the area described in Exhibit C. 2. PURCHASE PRICE. The total purchase price for the Property shall be the sum of FIVE HUNDRED TWENTY EIGHT THOUSAND SEVEN HUNDRED FIFTY DOLLARS ($528,750.00)CPurchase Price"), payable as follows: a. Seller owns other undeveloped real property within the City of Temecula which will be developed with residential units. b. The purchase price shall be paid by City in the form of credits to the Seller for required park land dedications or Public Facilities Fees, and shall be assignable by Seller and its successors and assigns. c. The credit shall be based upon FORTY FIVE THOUSAND DOLLARS ($45,000.00) per acre for 2.25 acres of the Property and NINETY THOUSAND DOLLARS ($90,000.00) per acre for the remainder of the Property, regardless of when the credit is taken. d. No interest shall be charged upon the purchase price during the period from the date of possession and the date of the last fee credit. e. If the Seller or its assignees wishes to utilize a fee credit pursuant to this section, it shall notify the City in writing at the time it submits the development application to the City for processing and shall specify the dedication or fees to which the credits shall apply. The City shall acknowledge the request for fee credit in writing. During the month of July of each year, the City shall provide Seller with a summary of the fee credits taken during the previous City fiscal year. 3. CONVEYANCE OF TITLE. Seller agrees to convey by grant deed ("Grant Deed") to City marketable fee simple title to the Property free and clear of all recorded and unrecorded liens, encumbrances, assessments, easements, leases and taxes, subject only to (1) the lien of Community Facilities District 88-12 and (2) those exceptions approved in writing by City pursuant to Paragraph 2 of this Agreement. 4. CONDITION OF TITLE: TITLE INSURANCE POLICY. Seller shall · obtain, at .its expense, concurrently with the recording of the Grant Deed to City, a standard form CLTA Owner's Policy of Title Insurance in the amount of the Purchase Price, issued by First American Title Company ("First American"), showing the title to the Property vested in City of Temecula, a municipal corporation, subject only to the exceptions approved by City pursuant to the following procedure. a. Seller shall provide City with a preliminary title report CPTR") within ten (10) working days of the date of this Agreement along with the documents described in the PTR. b. City shall, ten (10) working days from receipt of the PTR, approve, conditionally approve or disapprove the PTR, in its sole discretion, and shall specify the items which are disapproved or conditionally approved. c. If City shall disapprove or conditionally approve any item in the PTR, Seller shall, within ten (I0) working days of receipt of such disapproval or conditional approval, advise City in writing whether or not Seller shall cause to be eliminated any such disapproved item or items. d. If Seller elects not to eliminate such item or items, this Agreement may be cancelled by either party upon written notice to the other. 5. CONDITIONS PRECEDENT TO CONSUMMATION OF SALE. City's obligation to complete the purchase hereunder is conditional upon the following: a. City shall approve the Preliminary Title Report; b. City shall conduct a physical inspection of the Property, and approve of the physical condition of the Property; c. City conducts the environmental investigation and approves the environmental report on the Property described in Pamph 8 of this Agreement; d. The truth of each and every warranty and representation made by Seller in this Agreement as of the date of execution thereof and as of the Closing Date; and e. On the Closing Date, First American shall be ready, wilting and able to issue to City (or other entity selected by City at least three (3) days prior to the Closing Date) its standard form CLTA Owner's Policy of title insurance insuring City in the amount of the Purchase Price that good and marketable title to the Property is vested in City subject only to the exceptions to title set forth in the PTR and approved by City. 6. ESCROW. a. The Parties hereto shall enter into Escrow for the conveyance of the Property in accordance with this Agreement at First American Title Guaranty Company, 1850 Mr. Diablo Boulevard, Suite 300, Walnut Creek, California 94596. The parties shall execute Escrow Instructions as necessary to effectuate and implement this Agreement. b. The Closing Date shall be agreed to by the parties but shall not be later than July 31, 1995. c. Seller shall deliver or cause to be delivered to escrow the Grant Deed in proper form duly executed and in recordable form conveying to City fee title to the Property subject only to the exceptions approved by City pursuant to Paragraph 3 hereof and the lien of Community Facilities District 88-12. d. Both parties shall execute and deliver to each other any other documents or instruments which are reasonably necessary in order to consummate the purchase and sale of the Property. e. Seller shall deliver to City through escrow an affidavit executed by Seller under penalty of perjury stating Seller's United States taxpayer identification number and that Seller is not a foreign person, in/tccordance with Internal Revenue Code 1445 (2) and such other documents as are required by federal and state tax laws. f. Real property taxes and the assessments due for Community Facilities District 88-12 through fiscal year 1994-95 shall be prorated as of the Close of Escrow, based upon the latest tax bill available. The Property shall be conveyed subject to the lien of Community Facilities District 88-12. g. Seller shall pay the usual recording fees and any required documentary transfer taxes. h. The City manager of the City is hereby authorized and directed to execute such escrow instructions, certificates of acceptance (Goverument Code Section 27281), and such other documents as are necessary to complete the transaction described in this Agreement. 7. PERMISSION TO EN*rI~R ON PREMISES. Seller hereby grants to City, and its designated agents, permission to enter upon the Property at all reasonable times prior to close of escrow for the purpose of making necessary or appropriate inspections and investigations, including but not limited to, conducting a soils, geotechnical, toxic and hazardous substances investigation. City shall restore the Property to its original condition after said investigation. City hereby agrees to defend, indemnify and hold Seller free and harmless from and against all costs, expenses, damages, claims, liabilities or charges arising out of or in any way connected with entry upon the Property and/or the conducting of Said investigation or inspections by City or any party acting on City's behalf. 8. HAZARDOUS SUBSTANCES DISCLOSURE. a. Pursuant to Health and Safety Code Section 25359.7, and other laws, Seller is obligated to disclose any knowledge that Seller, or any agent, officer or employee of Seller, has regarding hazardous substances on, in or under the Property. In subparagraph 8(c) and in paragraph 11, Seller has disclosed if the Seller knows or has reasonable cause to believe there are any hazardous or toxic substances or materials located on, in, or under the Property, provided, however, Seller shall have no obligation to investigate or inquire about the condition of the Property. b. It is further understood and agreed that City shall have five (5) days from the date of this Agreement in which to complete said investigations. If the results of this investigation are not satisfactory to City, then City, in City's sole discretion, shall have the right to cancel the escrow with no obligation to Seller. c. Seller has disclosed and City is aware that the Property is located diagonally across the street from land which is the subject of (i) "Clean-Up" Order 91-94 from the Regional Water Quality Control Board for gasoline contamination, and (ii) the Property receives drainage and discharge from upstream properties. 9. JOINT ACCESS AND PARKING AGREEMENT. Seller owns the Adjoining Parcel and had developed the Property and the Adjoining Parcel as one unit. Therefore, sidewalks and other pedestrian access facilities and landscaping facilities exist connecting the Property and the Adjoining Parcel. Additionally, the Adjoining Parcel contains a driveway which has served as access for the parking for persons using the facilities on the Property. Therefore, the parties agree that prior to the close of escrow: a. City and Seller shall also enter into an access agreement with respect to the Property and the Adjoining Parcel providing for pedestrian access to the Property and vehicular access to the parking area on the Property. b. Within fifteen (15) days after the Close of EScrow, City shall remove or disconnect from the Adjoining Parcel all irrigation controls and related systems serving the Property. 10. REPRESENTATIONS AND WARRANTIES OF SELLER. Seller hereby represents and warrants as follows, based on the actual knowledge of Dennis Chiniaeff (the "Certifying Party") without duty of investigation or imputation of knowledge: a. Seller has no knowledge of any order or directive of any applicable Department of Building and Safety, Health Department or any other City, County, State or Federal authority, relating to the Property. b. Seller has complied with, and has no knowledge of any pending, threatened or potential investigation, proceeding or action (including legislative action) relating to the failure of Seller to comply with any and all statutes, laws, ordinances, regulations, rules and orders of governmental authorities having or claiming jurisdiction relating to the ownership, operation and use of the Property including, but not limited to, compliance with all zoning, health, safety, building and fee regulations and the obtaining and compliance with any and all necessary permits, licenses and certificates of authority. c. Seller has no obligations to any finder or broker in connection with the sale of the Property. d. 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. e. Them are no contracts, agreements, understandings and commitments, written or oral, with vendors, affecting any part of the Property except contracts for utilities and maintenance which will be terminated by Seller at Closing. f. As of the time of the Closing Date, if Seller has so elected pursuant to Paragraph 4(d) herein, Seller shall have paid and settled all outstanding debts, claims and other obligations owed by Seller in connection with the ownership of the Property, the construction of improvements thereon or the maintenance thereof, other than any such debts arising from or in connection with City's construction activity upon the Property ("Debts"). City is not assuming any Debts. The Property shall be conveyed subject to the lien of Community Facilities District 88-12. Seller will indemnify and defend City from all actions relating to collection of debts, excluding the lien of Community Facilities District 88-12. g. Seller is not aware of any Hazardous Materials (as def'med below) that have been used, present, released, stored, manufactured, generated or disposed of on, under or about, or transported to or from the Property. h. To the best of Seller's knowledge, the Property (including, without limitation, the soil and groundwater thereunder) is not in violation of any Environmental Laws. No above-ground or underground tanks exist on, under or about the Property. i. As among all the present employees of Seller, the Certifying Party is in the best position to have knowledge regarding the representations and warranties made by Seller under this Section. 11. COMMUNITY FACILITIES DISTRICT 88-12. City and Seller acknowledge and agree that Property has been improved with a pond and landscaping and is suitable for park and recreation purposes and that the Property is "developed land" for the purposes of Community Facilities District 88-12 and the agreements between the City and property owners within Community Facilities District 88-12. City hereby waives the statutory notice regarding the special tax of Community Facilities District 88-12. 12. A'I'I'ORNEY'S FEES. In the event of any litigation between the City and Seller, concerning this transaction, the prevailing party shall be entitled to reasonable attorneys' fees. 13. ASSIGNMENT. City may assign its fights under this Agreement or may designate a nominee to acquire title to the Property, provided, however, that any such assignment or designation shall not relieve City of any of its obligations under this Agreement. Seller may assign its fights and obligations to this Agreement at any time without the consent of City, but notice of an assignment will be given to City. 14. NOTICES. All notices called for herein shall be in writing and shall be delivered to Seller and City at the addresses set forth in this Paragraph. Notices shall be deemed delivered to (2) business days after first-class mailing, or upon receipt l~y personal service at the office of the party, delivery by ovemight courier service, or by legible and complete facsimile transmission. The foilowing addresses are to which notices shall be sent pursuant to this Paragraph, provided that either party may change its address by proper notice to the other. SELLER: KRDC, Inc. 27555 Ynez Road, Suite g200 Temecula, California 92591 Attention: Dennis Chiniaeff With a copy to: KRDC, Inc. 3697 Mt. Diablo Blvd., Suite 100 Lafayette, Califomia 94549 Attention: Kathy DeGaine CITY: City of Temecula 43174 Business Park Drive Temecula, California 92590 Attention: City Manager With a copy to: Peter M. Thorson, Esq. Burke, Williams & Sorensen 611 West Sixth Street, 251h Floor Los Angeles, California 90017 15. MISCELLANEOUS PROVISIONS. a. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. b. Both Parties are sophisticated buyers and sellers of real property and have participated in the drafting of this Agreement. 16. EARTHOUAKE FAULT DISCLOSURE. The Property is located in or adjacent to a special studies zone as designated under the Alquist-Priolo Special Studies Zone Act (Sections 2621-2630 of the California Public Resources Code), commonly known as the Wildomar Fault. IIII IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date first written above. KRDC, Inc., a California Corporation: By Name Title CITY OF TEMECULA, a municipal corporation: A'I-rEST: Jeffrey E. Stone, Mayor By June S. Greek, City Clerk APPROVED AS TO FORM: By Peter M. Thorson City Attorney