24-0111_R&H LAND PARTNERS_Purchase and Sale AgreementPURCHASE AND SALE AGREEMENT
between
THE CITY OF SAN JUAN CAPISTRANO
a California municipal corporation
and
R&H LAND PARTNERS, LLC
a California limited liability company
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1'' This PURCHASE AND SALE AGREEMENT ("Agreement") is dated as of,
20--1("Date of Agreement"), for reference purposes only, and is entered into by and between the
City of San Juan Capistrano, a California municipal corporation ("City") and R&H Land Partners,
LLC, a California limited liability company ("Purchaser"). The City and the Purchaser are
sometimes referred to in this Agreement, each individually, as a "Party," or collectively, as the
"Parties.
RECITALS
This Agreement is entered into with reference to the following recitals of fact ("Recitals")
that City and Purchaser believe to be true as of the Effective Date of this Agreement:
A. The City is the owner of that certain real property located at Calle Arroyo (APN
666-232-08), in San Juan Capistrano, more specifically described in Exhibit A attached hereto and
incorporated herein by this reference ("Property").
B. The City and Purchaser are not parties to an exclusive right to negotiate agreement
for potential development of the Property, and the Purchaser has not proposed any particular
project for redevelopment of the Property upon acquisition. The Parties understand and are in
agreement that any future development of the Property by Purchaser or otherwise would require
its own review process.
C. Notwithstanding the lack of specific development project, the Purchaser's proposed
acquisition of the Property is in the best interest of the City and the health, safety and welfare of
the City's taxpayers and residents and is in accordance with the public purposes set forth in
applicable law. Implementation of this Agreement will further the goals and objectives of the
City's general plan by: (i) strengthening the City's land use and social structure and (ii) alleviating
economic and physical blight on the Property.
D. The City desires to sell the Property to the Purchaser, and the Purchaser desires to
purchase the Property from the City.
NOW, THEREFORE, in consideration of the mutual promises set forth in this Agreement
and other good and valuable consideration, the receipt and sufficiency of which is acknowledged
by City and Purchaser, the Parties agree as follows:
I: u 0II I ►11 Y I
ARTICLE I
DEFINITIONS: REPRESENTATIONS AND WARRANTIES.
EFFECTIVE DATE
1.1 Definitions. All initially capitalized terms not otherwise defrred in this Agreement
shall have the following meanings:
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1.1.1 "Affiliate" means and refers to any person or entity, directly or
indirectly, Controlling or Controlled by or under common Control with the Purchaser, whether by
direct or indirect ownership of equity interests, by contract or otherwise.
1.1.2 "CEQA" means the California Environmental Quality Act, Public
Resources Code Sections 21000, et sec.
1.1.3 "City" means the City of San Juan Capistrano, California, a California
municipal corporation.
1.1.4 "City Manager" means the City Manager of the City or his or her
designee or successor in function.
1.1.5 "City's Title Notice Response" means the written response of the City
to the Purchaser's Title Notice, in which the City either (i) elects to cause the removal from the
Preliminary Report of any matters shown in Schedule B of the Preliminary Report as exceptions
to coverage under the proposed Title Policy that were objected to in the Purchaser's Title Notice,
or (ii) elects not to cause the removal from the Preliminary Report of any matters shown in
Schedule B of the Preliminary Report as exceptions to coverage under the proposed Title Policy
that were objected to in the Purchaser's Title Notice.
1.1.6 "Close of Escrow" or "Closing" means the recording of the Grant Deed
for the Property in the Official Records of the Recorder of the County, and completion of each of
the actions set forth in ARTICLE III by the Escrow Holder for the City to sell the Property to the
Purchaser and the Purchaser to purchase the Property from the City.
1.1.7 "Control" means and refers to possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of a person or entity, whether
by ownership of equity interests, by contract or otherwise.
1.1.8 "Controlling" and "Controlled" mean and refer to exercising or
having Control.
1.1.9 "County" means the County of Orange, California.
1.1.10 "Purchaser's Title Notice" means a written notice from the Purchaser
to the City indicating the Purchaser's acceptance of the state of the title to the Property, as
described in the Preliminary Report, or the Purchaser's objection to specific matters shown in
Schedule B of the Preliminary Report as exceptions to coverage under the proposed Title Policy
for the Property, describing in suitable detail the actions that the Purchaser reasonably believes are
indicated to cure or correct each of the Purchaser's objections.
1.1.11 "Purchaser's Title Notice Waiver" means a written notice from the
Purchaser to the City waiving the Purchaser's previous objection in the Purchaser's Title Notice
to specific matters shown in Schedule B of the Preliminary Report as exceptions to coverage under
the proposed Title Policy for the Property.
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1.1.12 "Due Diligence Investigations" means the Purchaser's due diligence
investigations of the Property, including, without limitation, investigations of the environmental
and geotechnical suitability of the Property, as deemed appropriate in the reasonable discretion of
the Purchaser, all at the sole cost and expense of the Purchaser.
1.1.13 "Due Diligence Investigation Conclusion Notice" means a written
notice of the Purchaser delivered to the City and the Escrow Holder, prior to the end of the Due
Diligence Period, indicating the Purchaser's acceptance of the condition of the Property or
indicating the Purchaser's rejection of the condition of the Property and refusal to accept a
conveyance of fee title to the Property, describing in reasonable detail the actions that the Purchaser
reasonably believes are indicated to allow the Purchaser to accept the condition of the Property.
1.1.14 "Due Diligence Period" means the date commencing on the Effective
Date and ending at 5:00 p.m. on the ninetieth (901) day following the Effective Date.
1.1.15 "Earnest Money Deposit" means Twenty -Five Thousand Dollars
($25,000.00) payable in cash or other immediately available funds.
1.1.16 "Effective Date" has the meaning ascribed to the term in Section 1.3.
1.1.17 "Environmental Claims" has the meaning ascribed to the term in
Section 5.10.
1.1.18 "Environmental Laws" means all federal, state, local, or municipal
laws, rules, orders, regulations, statutes, ordinances, codes, decrees, or requirements of any
government authority regulating, relating to, or imposing liability of standards of conduct
concerning any hazardous substance (as later defined), or pertaining to occupational health or
industrial hygiene (and only to the extent that the occupational health or industrial hygiene laws,
ordinances, or regulations relate to hazardous substances on, under, or about the Property,
occupational or environmental conditions on, under, or about the Property, as now or may at any
later time be in effect, including without limitation, the Comprehensive Environmental Response,
Compensation and Liability Act of 1980 ("CERCLA") [42 USC Section 9601 et sec.]; the
Resource Conservation and Recovery Act of 1976 ("RCRA") [42 USC Section 6901 et seq.]; the
Clean Water Act, also known as the Federal Water Pollution Control Act ("FWPCA") [33 USC
Section 1251 et seq.]; the Toxic Substances Control Act ("TSCA") [15 USC Section 2601 et seg.];
the Hazardous Materials Transportation Act ("HMTA") [49 USC Section 1801 et sec .]; the
Insecticide, Fungicide, Rodenticide Act [7 USC Section 6901 et seg.] the Clean Air Act [42 USC
Section 7401 et sem.]; the Safe Drinking Water Act [42 USC Section 300f et seq.]; the Solid Waste
Disposal Act [42 USC Section 6901 et M.]; the Surface Mining Control and Reclamation Act [30
USC Section 101 et seq.] the Emergency Planning and Community Right to Know Act [42 USC
Section 11001 et sem.]; the Occupational Safety and Health Act [29 USC Section 655 and 657];
the California Underground Storage of Hazardous Substances Act [California Health & Safety
Code Section 25288 et sem.]; the California Hazardous Substances Account Act [California Health
& Safety Code Section 25300 et seq.]; the California Safe Drinking Water and Toxic Enforcement
Act [California Health & Safety Code Section 24249.5 et ss.] the Porter -Cologne Water Quality
Act [California Water Code Section 13000 et seg.] together with any amendments of or regulations
promulgated under the statutes cited above and any other federal, state, or local law, statute,
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ordinance, or regulation now in effect or later enacted that pertains to occupational health or
industrial hygiene, and only to the extent the occupational health or industrial hygiene laws,
ordinances, or regulations relate to hazardous substances on, under, or about the Property, or the
regulation or protection of the environment, including ambient air, soil, soil vapor, groundwater,
surface water, or land use.
1.1.19 "Environmental Matters" has the meaning ascribed to the term in
Section 5.10.
1.1.20 "Escrow" has the meaning ascribed to the term in Section 2.1.
1.1.21 "Escrow Closing Date" has the meaning ascribed to the term in Section
3.6.
1.1.22 "Escrow Holder" means Fidelity National Title Insurance Company.
1.1.23 "Escrow Opening Date" has the meaning ascribed to the term in
Section 3.1.
1.1.24 "Event of Default" has the meaning ascribed to the term in Section
7.1.1
1.1.25 "FIRPTA Affidavit" means an affidavit complying with Section 1445
of the United States Internal Revenue Code.
1.1.26 "Grant Deed" means a deed in the form of Exhibit D to this Agreement,
conveying all of the City's interest in the Property to the Purchaser, excepting therefrom a
permanent easement for trail purposes over, across and through a portion of the Property
specifically described in Exhibit `B" attached to the Grant Deed.
1.1.27 "Governmental Agency" means any and all courts, boards, agencies,
commissions, offices, or authorities of any nature whatsoever for any governmental unit (federal,
state, county, district, municipal, city, or otherwise) whether now or later in existence.
1.1.28 "Governmental Requirements" means all codes, statutes, ordinances,
laws, permits, orders, and any rules and regulations promulgated thereunder of any Governmental
Agency.
1.1.29 "Hazardous Substances" means, without implied limitation,
substances defined as "hazardous substances," "hazardous material," "toxic substance," "solid
waste," or "pollutant or contaminate" in the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended, 42 U.S.C. Sections 9601, et seMc .; the Toxic
Substances Control Act ("TSCA") [15 U.S.C. Sections 2601, et sec.]; the Hazardous Materials
Transportation Act, 49 U.S.C. Sections 1801, et seg.; the Resource Conservation and Recovery
Act, 42 U.S.C. Sections 6901, et sem.; those substances listed in the United States Department of
Transportation (DOT) Table [49 CFR 172.101], or by the EPA, or any successor authority, as
hazardous substances [40 CFR Part 302]; and those substances defined as "hazardous waste" in
Section 25117 of the California Health and Safety Code or, as "hazardous substances" in Section
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25316 of the California Health and Safety Code; other substances, materials, and wastes that are,
or become, regulated or classified as hazardous or toxic under federal, state, or local laws or
regulations and in the regulations adopted pursuant to said laws, and shall also include manure,
asbestos, polychlorinated biphenyl, flammable explosives, radioactive material, petroleum
products, and substances designated as a hazardous substance pursuant to 33 USC Section 1321
or listed pursuant to 33 USC Section 1317.
1.1.30 "Indemnified Parties" has the meaning ascribed to the term in Section
5.10.
1.1.31 "Normal Business Hours" means the normal business hours of the
City. As of the Effective Date, the City's normal business hours are Monday through Thursday,
between the hours of 7:30 a.m. and 5:30 p.m. Pacific Time.
1.1.32 "Notice of Agreement" means the notice in the form of Exhibit E to
this Agreement to be recorded against the Property at the opening of Escrow to provide
constructive record notice of the existence and application of this Agreement to the Property.
1.1.33 "Party" means, individually, the City or the Purchaser, as applicable.
1.1.34 "Parties" means, collectively, the City and the Purchaser.
1.1.35 "PCO Statement" means a preliminary change of ownership statement
provided for in California Revenue and Taxation Code Section 480.3.
1.1.36 "Permitted Exceptions" means (i) any and all items shown in Schedule
B of the Preliminary Report as exceptions to coverage under the proposed Title Policy that the
Purchaser accepts, pursuant to Section 2.4; (ii) any exceptions from coverage under the proposed
Title Policy resulting from the Purchaser's activities on the Property; (iii) non -delinquent property
taxes and assessments; (iv) this Agreement; or (v) the Grant Deed.
1.1.37 "Preliminary Report" means a preliminary report issued by the Title
Company in contemplation of the issuance of the Title Policy, accompanied by legible copies of
all documents listed in Schedule B of the report as exceptions to coverage under the proposed Title
Policy. The Parties acknowledge that they may prepare one (1) or more Preliminary Reports for
each parcel, or group of parcels, comprising the Property. In such case, all reports, notices, and
objection letters which pertain to the Preliminary Report for the entirety of the Property shall apply
separately to each Preliminary Report associated with a parcel or a group of parcels.
1.1.38 "Property" means that real property, and all current and future
improvements thereon, legally described in Exhibit A.
1.1.39 "Property Transfer" means and refers to any "change in ownership,"
as defined in Revenue and Taxation Code Sections 60, et seq., of all or any portion of the Property.
1.1.40 "Purchase Price" means the amount of One Hundred Fifty Thousand
Dollars ($150,000.00), in cash or immediately available funds.
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1.1.41 "Record", "recorded", "recording" or "recordation" each mean and
refer to recordation of the referenced document in the official records of the Recorder of the County
of Orange, California.
1.1.42 "SLA" means the Surplus Land Act, Government Code Sections 54220,
et seq.
1.1.43 "SLA Restrictive Covenant" means the restrictive covenant, a form of
which is attached to this Agreement as Exhibit C, required to be recorded under Section 54233 of
the SLA at or before the Close of Escrow, as described in Section 5.1.
1.1.44 "Title Company" means Ticor Title Company.
1.1.45 "Title Policy" means a standard CLTA owners' policy of title insurance
issued by the Title Company, with coverage in the full amount of the Purchase Price and insuring
fee title to the Property, subject only to the Permitted Exceptions. However, at Purchaser's option,
Purchaser may acquire an ALTA extended coverage policy. City shall pay for the standard CLTA
policy. Purchaser shall pay for any additional or ALTA extended coverage policy.
1.1.46 "Unavoidable Delay" means any delay that is caused by the exclusively
by the other party or that is beyond the control of the City or the Purchaser, including delay caused
by strikes, acts of God, weather, inability to obtain labor or materials, inability to obtain
governmental permits or approvals, governmental restrictions, civil commotion, fire or similar
causes, but excluding circumstances subject to Section 8.7.2.
1.2 Representations and Warranties.
1.2.1 City Representations and Warranties. The representations and
warranties of City contained in this Section 1.2.1 shall be based upon the actual knowledge of the
City Manager as of the Effective Date. All representations and warranties contained in this Section
1.2.1 are true and correct as of the Effective Date. City's liability for misrepresentation or breach
of warranty, representation or covenant, wherever contained in this Agreement, shall survive the
execution and delivery of this Agreement and the Closing. City hereby makes the following
representations, covenants and warranties and acknowledges that the execution of this Agreement
by Purchaser has been made in material reliance by Purchaser on such covenants, representations
and warranties:
1.2.1.1 City is a California municipal corporation, duly formed and
operating under the laws of the State of California. City has the legal power, right and authority to
enter into this Agreement and to execute the instruments and documents referenced herein, and to
consummate the transactions contemplated hereby.
1.2.1.2 The persons executing any instruments for or on behalf of City
have been authorized to act on behalf of City and this Agreement is valid and enforceable against
City in accordance with its terms and each instrument to be executed by City pursuant hereto or in
connection therewith will, when executed, shall be valid and enforceable against City in
accordance with its terms. No approval, consent, order or authorization of, or designation or
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declaration of any other person, is required in connection with the valid execution and delivery of
and compliance with this Agreement by City.
1.2.1.3 City has taken all requisite action and obtained all requisite
consents for agreements or matters to which City is a party in connection with entering into this
Agreement and the instruments and documents referenced herein and in connection with the
consummation of the transactions contemplated hereby.
1.2.1.4 If the City becomes aware of any act or circumstance that would
change or render incorrect, in whole or in part, any representation or warranty made by the City
under this Agreement, whether as of the date given or any time thereafter, whether or not such
representation or warranty was based upon the City's knowledge and/or belief as of a certain date,
the City will give immediate written notice of such changed fact or circumstance to the Purchaser.
1.2.2 Purchaser Representations and Warranties. The representations and
warranties of Purchaser contained in this Section 1.2.2 shall be based upon the actual knowledge
of Robert J. Socci as of the Effective Date. All representations and warranties contained in this
Section 1.2.2 are true and correct as of the Effective Date. Purchaser's liability for
misrepresentation or breach of warranty, representation or covenant, wherever contained in this
Agreement, shall survive the execution and delivery of this Agreement and the Closing. Purchaser
hereby makes the following representations, covenants and warranties and acknowledges that the
execution of this Agreement by City has been made in material reliance by City on such covenants,
representations and warranties:
1.2.2.1 Purchaser is a California limited liability company, lawfully
entitled to do business in the State of California and the City. Purchaser has the legal right, power
and authority to enter into this Agreement and the instruments and documents referenced herein
and to consummate the transactions contemplated hereby. The persons executing this Agreement
and the instruments referenced herein on behalf of Purchaser hereby represent and warrant that
such persons have the power, right and authority to bind Purchaser.
1.2.2.2 Purchaser has taken all requisite action and obtained all requisite
consents in connection with entering into this Agreement and the instruments and documents
referenced herein and the consummation of the transactions contemplated hereby, and no consent
of any other parry is required for Purchaser's authorization to enter into Agreement.
1.2.2.3 Neither the execution of this Agreement nor the consummation
of the transactions contemplated hereby shall result in a breach of or constitute a default under any
other agreement, document, instrument or other obligation to which Purchaser is a party or by
which Purchaser may be bound, or under law, statute, ordinance, rule, governmental regulation or
any writ, injunction, order or decree of any court or governmental body applicable to Purchaser or
to the Property.
1.2.2.4 This Agreement is, and all agreements, instruments and
documents to be executed by Purchaser pursuant to this Agreement shall be, duly executed by and
shall be valid and legally binding upon Purchaser and enforceable in accordance with their
respective terms. No approval, consent, order or authorization of, or designation or declaration of
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any other person, is required in connection with the valid execution and delivery of in compliance
with this Agreement by Purchaser.
1.2.2.5 If the Purchaser becomes aware of any act or circumstance that
would change or render incorrect, in whole or in part, any representation or warranty made by the
Purchaser under this Agreement, whether as of the date given or any time thereafter, whether or
not such representation or warranty was based upon the Purchaser's knowledge and/or belief as of
a certain date, the Purchaser will give immediate written notice of such changed fact or
circumstance to the City.
1.3 Effective Date. This Agreement is dated )t�, 20A for reference purposes
only. This Agreement shall not become effective until the date on which all of the following are
true ("Effective Date"): (i) this Agreement is approved and executed by the appropriate authorities
of Purchaser and delivered to City; (ii) Purchaser has delivered to City a certified copy of the
official action taken by all of the members of the Purchaser approving this Agreement, in the form
attached to this Agreement as Exhibit F; (iii) following all legally required notices and hearings,
this Agreement is approved by the City Council; and (iv) this Agreement is executed by the
authorized representatives of City.
1.4 Exhibit List. The following is a list of the Exhibits attached to this Agreement.
Each of the Exhibits is incorporated by this reference into the text of this Agreement.
Exhibit A
Legal Description of Property
Exhibit B
Reserved
Exhibit C
Form of SLA Restrictive Covenant
Exhibit D
Form of Grant Deed
Exhibit E
Form of SWMD Easement
Exhibit F
Form of Official Action of Purchaser
ARTICLE Il
2.1 Purchase and Sale. In exchange for the Purchase Price and the Purchaser's other
covenants and undertakings set forth in this Agreement, the City shall sell the Property to the
Purchaser and the Purchaser shall purchase the Property from the City pursuant to the terms and
conditions of this Agreement. For the purposes of exchanging funds and documents to complete
the sale from the City to the Purchaser and the purchase by the Purchaser from the City of the
Property pursuant to the terms of this Agreement, the City and the Purchaser agree to open an
escrow ("Escrow") with the Escrow Holder. ARTICLE III of this Agreement constitutes the joint
escrow instructions of the Parties to the Escrow Holder for completion of the Escrow for the sale
of the Property, as contemplated by this Agreement. The Purchaser and the City shall execute such
further escrow instructions, consistent with the provisions of this Agreement, as may be reasonably
requested by the Escrow Holder. In the event of any conflict between the provisions of this
Agreement and any other escrow instructions requested by the Escrow Holder, the provisions of
this Agreement shall control.
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2.2 Payment of Purchase Price. The Purchaser shall deposit the Purchase Price into
Escrow, subject to credit to the Purchaser for the Earnest Money Deposit.
2.3 Earnest Money Deposit. Concurrent with its opening of the Escrow, the Purchaser
shall deposit into Escrow the Earnest Money Deposit. The Escrow Holder shall deposit the Earnest
Money Deposit into an interest bearing account. All interest earned on such funds shall be added
to the original principal amount of the Earnest Money Deposit and be considered part of the same.
The Earnest Money Deposit shall be nonrefundable upon the conclusion of the Due Diligence
Period. Upon the Close of Escrow, the Earnest Money Deposit shall be credited to the Purchaser
toward the Purchase Price and paid to the City as part of the Purchase Price. Should Escrow fail to
close as a result of a default by Purchaser, the Earnest Money Deposit shall be forfeited by
Purchaser and shall be paid to the City upon the cancelation of Escrow in accordance with Section
3.10.
2.4 Title Approval. As soon as practicable following the opening of the Escrow, the
City shall obtain from Title Company the Preliminary Report and deliver a copy of the Preliminary
Report to the Purchaser. Within thirty (3 0) days following the Purchaser's receipt of a Preliminary
Report for the entire Property, the Purchaser shall deliver the Purchaser's Title Notice to the City.
If the Purchaser fails to deliver the Purchaser's Title Notice to the City within thirty (30) days
following the Purchaser's receipt of the Preliminary Report, the Purchaser will be deemed to
disapprove the status of title to the Property and refuse to accept title to the Property, in which case
the City shall have the right, subject to Section 2.4.2, to cancel the Escrow and terminate this
Agreement, in the City's sole discretion, without liability to the Purchaser or any other person, by
delivery of a written notice of termination to the Purchaser and Escrow Holder. Within twenty (20)
days following receipt by the City of Purchaser's Title Notice, if any, the City shall serve City's
Title Notice Response. If Purchaser's Title Notice does not object to any matter in the Preliminary
Report, the City shall not be required to serve City's Title Notice Response. If the City does not
serve City's Title Notice Response, if necessary, within twenty (20) days following its receipt of
Purchaser's Title Notice, the City shall be deemed to elect not to remove any matter objected to in
Purchaser's Title Notice, if any, from the Preliminary Report. If the City elects in City's Title
Notice Response to cause the removal of any matter objected to in Purchaser's Title Notice from
the Preliminary Report, the City shall cause the removal of each such objectionable matter from
the Preliminary Report within sixty (60) days following receipt by the Purchaser of City's Title
Notice Response or such other period of time that may be agreed to in writing by both the City and
the Purchaser. If the City is unwilling or unable to cause the removal of any matter objected to in
Purchaser's Title Notice from the Preliminary Report, then, within ten (10) days following the
Purchaser's receipt of City's Title Notice Response stating that the City is unwilling to remove or
cause the removal of any matter objected to in Purchaser's Title Notice or upon the expiration of
the above sixty (60) day time period during which the City elected to remove such objectionable
matters from the Preliminary Report and was unable to do so, the Purchaser may either (1) refuse
to accept the title to and conveyance of the Property, in which case the Parties shall have the right,
subject to Section 2.4.2, to cancel the Escrow and terminate this Agreement without liability to
either Party or any other person, by delivery of a written notice of termination to the Escrow
Holder, or (2) waive its objection to any items set forth in Purchaser's Title Notice by delivering
Purchaser's Title Notice Waiver to the City. Failure by the Purchaser to deliver Purchaser's Title
Notice Waiver, where City's Title Notice Response or the City's failure to serve City's Title Notice
Response indicates the City's election not to cause the removal of any matter objected to in
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Purchaser's Title Notice from the Preliminary Report, for the City to deliver City's Title Notice
Response under this Agreement, will be deemed the Purchaser's continued refusal to accept the
title to and conveyance of the Property, in which case the City shall have the right, subject to
Section 2.4.2, to cancel the Escrow and terminate this Agreement, in the City's sole discretion,
without liability to the Purchaser or any other person, by delivery of a written notice of termination
to the Purchaser and Escrow Holder.
2.4.1 If at any time prior to the Close of Escrow the Title Company issues an
updated Preliminary Report containing any previously undisclosed matter affecting title to the
Property, or the City becomes aware of any previously undisclosed matter affecting title to the
Property, following the delivery of the Purchaser's Title Notice, the City shall provide written
notice to the Purchaser of such matter, together with any updated Preliminary Report related to
such matter. The City and the Purchaser shall have such rights and obligations with respect to such
previously undisclosed title matters as they did with respect to any title matters set forth in the
original Preliminary Report as set forth in this Section 2.4.
2.4.2 Before exercising any right a Party may have under this Section 2.4 to
cancel the Escrow and terminate this Agreement, such Party shall notify the non -terminating
Parties in writing of its election to terminate and shall, upon a non -terminating Party's request,
which must be delivered, if at all, within three (3) days following its receipt of the terminating
Party's notice of election to terminate, meet and confer with the non -terminating Parties for a
period of thirty (30) days. During such time, the Parties shall meet as often as reasonably requested
by any Party to negotiate, in good faith, methods and means by which the objectionable title matter
may be eliminated or mitigated. Nothing herein shall constitute an agreement, representation, or
warranty by any Party that an acceptable resolution of the objectionable title matter will be
achieved, nor shall any Party be obligated to expend any funds or undertake any other action
whatsoever with respect to such title matter unless such agreement is reduced to a writing which
is approved by all Parties, in their sole and absolute discretion. If, at the end of such thirty (30) day
period, the Parties have not been able to agree on a mutually acceptable method of resolving such
title matter, or if any proposed agreement is disapproved by the City Council, the Escrow shall be
cancelled, this Agreement shall be terminated without liability to any Party, and the Parties shall
proceed pursuant to Section 3.9.
2.5 Purchaser Investigations.
2.5.1 The Purchaser shall have until the expiration of the Due Diligence
Period to complete all of its Due Diligence Investigations with respect to the entirety of the
Property. The Purchaser shall complete all of its Due Diligence Investigations within the Due
Diligence Period and shall conduct all of its Due Diligence Investigations at its sole cost and
expense. The Purchaser shall rely solely and exclusively upon the results of its Due Diligence
Investigations of the Property, including, without limitation, investigations regarding geotechnical
soil conditions, compliance with applicable laws pertaining to the use of the Property by the
Purchaser and any other matters relevant to the condition or suitability of the Property for any
particular project or development, as the Purchaser may deem necessary or appropriate. City makes
no representation or warranty to the Purchaser relating to the condition of the Property or suitability
of the Property for any intended use or development by the Purchaser. The Purchaser shall deliver
a Due Diligence Investigation Conclusion Notice to the City and the Escrow Holder prior to the
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end of the Due Diligence Period. If the Purchaser does not unconditionally accept the condition of
the Property by delivery of its Due Diligence Investigation Conclusion Notice indicating such
acceptance prior to the end of the Due Diligence Period, the Purchaser shall be deemed to have
rejected the condition of the Property and refused to accept conveyance of title to the Property. If
the condition of the Property is rejected or deemed rejected by the Purchaser, then the City shall
have the right, subject to Section 2.4.2, to cancel the Escrow and terminate this Agreement, in the
City's sole discretion, without liability to the Purchaser or any other person, by delivery of a written
notice of termination to the Purchaser and Escrow Holder. The Purchaser shall accept all
conditions of the Property, without any liability of the City whatsoever, upon the Purchaser's
acceptance of the condition of the Property indicated in its Due Diligence Investigation Conclusion
Notice. The Purchaser's delivery of its Due Diligence Investigation Conclusion Notice indicating
the Purchaser's unconditional acceptance of the condition of the Property shall evidence the
acceptance of the condition of the Property by the Purchaser in its existing "AS IS," "WHERE IS
and "SUBJECT TO ALL FAULTS" condition, as of the last day of the Due Diligence Period. In
its sole discretion, the Purchaser may accept the Property in its "AS IS," "WHERE IS" and
"SUBJECT TO ALL FAULTS" condition at any time before the end of the Due Diligence Period.
The Purchaser shall conduct during the Due Diligence Period such environmental assessment(s)
of the Property as the Purchaser deems appropriate. If such assessment(s) do reveal the presence
of any Hazardous Substances on the Property in levels that exceed applicable Governmental
Requirements, then the City and the Purchaser shall negotiate in good faith in an effort to reach
agreement as to the allocation of responsibility and cost of remediation thereof.
2.5.2 Any Due Diligence Investigations of the Property by the Purchaser shall
not unreasonably disrupt any then -existing use or occupancy of the Property or the operations of
the City. The Purchaser shall be liable for any damage or injury to any person or property arising
from the acts of the Purchaser, its employees, agents or representatives during the course of any
Due Diligence Investigations on the Property and the Purchaser shall indemnify, defend with
counsel reasonably acceptable to the City and hold harmless the City and its elected officials,
officers, directors, attorneys, contractors, agents and employees from any and all actual or alleged
liens, claims, demands or liability arising from any Due Diligence Investigations by the Purchaser
on the Property. Prior to commencing any Due Diligence Investigations on the Property, the
Purchaser shall deliver copies of policies or certificates of insurance to the City evidencing
compliance by the Purchaser with the insurance requirements of Section 5.11.
2.5.3 Before exercising any right a Party may have under this Section 2.5 to
cancel the Escrow and terminate this Agreement, such Party shall notify the non -terminating
Parties in writing of its election to terminate and shall, upon a non -terminating Party's request,
which must be delivered, if at all, within three (3) days following its receipt of the terminating
Party's notice of election to terminate, meet and confer with the non -terminating Parties for a
period of thirty (30) days. During such time, the Parties shall meet as often as reasonably requested
by any Party to negotiate, in good faith, methods and means by which the objectionable Due
Diligence matter may be eliminated or mitigated. Nothing herein shall constitute an agreement,
representation, or warranty by any Party that an acceptable resolution of the objectionable Due
Diligence matter will be achieved, nor shall any Party be obligated to expend any funds or
undertake any other action whatsoever with respect to such Due Diligence matter unless such
obligation is reduced to a writing which is approved by all Parties, in their sole and absolute
discretion. If, at the end of such thirty (30) day period, the Parties have not been able to agree on
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a mutually acceptable method of resolving the objectionable Due Diligence matter, or if any
proposed agreement is disapproved by the City Council, the Escrow shall be cancelled, this
Agreement shall be terminated without liability to any Party, and the Parties shall proceed pursuant
to Section 3.10.
ARTICLE III
3.1 Opening of Escrow. For purposes of this Agreement, the opening of Escrow shall
be the first date on which a fully executed copy of this Agreement and Earnest Money Deposit are
deposited with Escrow Holder ("Escrow Opening Date"). The Purchaser shall cause the Escrow
to be opened within five (5) days following the Effective Date. Escrow Holder shall promptly
confirm in writing to each of the Parties the date of the Escrow Opening Date. This ARTICLE III
shall constitute the joint escrow instructions of the City and the Purchaser to Escrow Holder for
conduct of the Escrow to complete the purchase and sale of the Property between them, as
contemplated in this Agreement.
3.2 Conditions to Close of Escrow. The conditions set forth below shall be satisfied
or waived in writing by the respective benefited Party on or before the Escrow Closing Date or the
Party benefited by any unsatisfied condition shall not be required to proceed to close Escrow.
3.2.1 Purchaser's Conditions to Close of Escrow. The Purchaser's
obligation to purchase the Property from the City on the Escrow Closing Date shall be subject to
the satisfaction of the following conditions precedent, each of which can only be waived in writing
by the Purchaser:
3.2.1.1 The Purchaser agrees to accept the title to and conveyance of the
Property, pursuant to Section 2.4;
3.2.1.2 The Purchaser delivers its Due Diligence Investigation
Conclusion Notice to both the City and Escrow Holder indicating the Purchaser's unconditional
acceptance of the condition of the Property, prior to the expiration of the Due Diligence Period;
3.2.1.3 The City's Planning Commission finds, pursuant to Government
Code Section 65402, that the sale of the Property is consistent with the City's General Plan;
3.2.1.4 The Title Company is unconditionally committed to issue the
Title Policy for the Property, subject to any Permitted Exceptions, to the Purchaser;
3.2.1.5 The City deposits the items into the Escrow required by Section
3.4;
3.2.1.6 The representations, warranties and covenants of the City set
forth in Section 1.2.1 are true and correct in all material respects on the Effective Date and on the
Escrow Closing Date;
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3.2.1.7 The City has completed all of its material obligations required by
this Agreement to be completed prior to the Close of Escrow.
3.2.2 City's Conditions to Close of Escrow. The City's obligation to sell the
Property to the Purchaser on or before the Escrow Closing Date shall be subject to the satisfaction
of the following conditions precedent, which can only be waived in writing by the City:
3.2.2.1 The Purchaser has deposited the Purchase Price less the Earnest
Money Deposit into Escrow;
3.2.2.2 The Purchaser agrees to accept the title to and conveyance of the
Property, pursuant to Section 2.4;
3.2.2.3 The Purchaser delivers its Due Diligence Investigation
Conclusion Notice to both the City and Escrow Holder indicating the Purchaser's unconditional
acceptance of the physical condition of the Property, prior to the expiration of the Due Diligence
Period;
3.2.2.4 The City's Planning Commission finds, pursuant to Government
Code Section 65402, that the sale of the Property is consistent with the City's General Plan;
3.2.2.5 The Title Company is unconditionally committed to issue the
Title Policy for the Property, subject to any Permitted Exceptions, to the Purchaser;
3.2.2.6 The Purchaser has completed all of its material obligations
required by this Agreement to be completed prior to the Close of Escrow;
3.2.2.7 The representations, warranties and covenants of the Purchaser
set forth in Section 1.2.2 are true and correct in all material respects on the Effective Date and on
the Escrow Closing Date; and
3.2.2.8 The Purchaser deposits the funds and items into the Escrow
required by Section 3.3 for the Escrow.
3.3 Purchaser's Escrow Deposits. Following satisfaction or waiver of each of the
Purchaser's conditions to Close of Escrow set forth in Sections 3.2.1, as applicable, the Purchaser
shall deposit the following funds and documents into Escrow at least two (2) business days prior
to the Escrow Closing Date in a writing delivered to the Parties:
3.3.1 Purchase Price and Other Funds. Purchase Price, less the amount of
the Earnest Money Deposit, plus any additional funds required to be deposited into Escrow by the
Purchaser under the terms of this Agreement to close the Escrow, all in immediately available
funds.
3.3.2 PCO Statement. A PCO Statement executed by the authorized
representative(s) of the Purchaser.
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3.3.3 Acceptance of Grant Deed. The Certificate of Acceptance of the Deed,
in the form attached to the Grant Deed, executed by the authorized representative(s) of the
Purchaser in recordable form.
3.3.4 Notice of Agreement. The Notice of Agreement executed by the
authorized representative(s) of the Purchaser in recordable form.
3.4 City's Escrow Deposits. Following satisfaction or waiver of each of the City's
conditions to Close of Escrow set forth in Sections 3.2.2, as applicable, the City shall deposit the
following documents into Escrow at least two (2) business days prior to the Escrow Closing Date:
3.4.1 Grant Deed. The Grant Deed executed by the authorized
representative(s) of the City in recordable form.
3.4.2 SLA Restrictive Covenant. The SLA Restrictive Covenant executed
by the authorized representative(s) of the City in recordable form.
3.4.3 FIRPTA Affidavit (City). The FIRPTA Affidavit completed and
executed by the authorized representative(s) of the City.
3.4.4 Notice of Agreement. The Notice of Agreement executed by the
authorized representative(s) of the City in recordable form.
3.5 Closing Procedure. When each of the Purchaser's Escrow required deposits, as set
forth in Section 3.3, and each of the City's Escrow required deposits, as set forth in Section 3.4,
are deposited into Escrow, Escrow Holder shall request confirmation in writing from both the City
and the Purchaser that each of their respective conditions to the Close of Escrow, as set forth in
Section 3.2, are satisfied or waived. Upon Escrow Holder's receipt of written confirmation from
both the City and the Purchaser that each of their respective conditions to the Close of Escrow are
either satisfied or waived, Escrow Holder shall close the Escrow for the Property by doing all of
the following:
3.5.1 Recordation of Documents. File the following with the Office of the
Recorder of the County, for recordation in the order set forth in Section 3.7, (i) the Grant Deed,
with the Purchaser's certificate of acceptance attached, (ii) the Notice of Agreement, and (iii) the
SLA Restrictive Covenant.
3.5.2 Distribution of Recorded Documents. Distribute each recorded
document to the Party or person designated for such distribution in Section 3.7.
3.5.3 PCO Statement. File the PCO Statement with the Office of the
Recorder of the County.
3.5.4 FIRPTA Affidavit. File the FIRPTA Affidavit with the United States
Internal Revenue Service.
3.5.5 Title Policy. Obtain and deliver the Title Policy to the Purchaser.
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3.5.6 Purchase Price. Deliver the Purchase Price to the City, less the City's
share of Escrow closing costs, and less any other charges to the account of the City, and return any
remaining funds held by Escrow Holder for the account of the Purchaser to the Purchaser, less the
Purchaser's share of Escrow closing costs, and less any other charges to the account of the
Purchaser.
3.6 Close of Escrow. Close of Escrow shall occur no later than the earlier of: (1) the
tenth (10th) business day following Escrow Holder's receipt of written confirmation from both the
City and the Purchaser of the satisfaction or waiver of all conditions precedent to the Close of
Escrow for the Property, or (2) thirty (30) days from the end of the Due Diligence Period (the
"Escrow Closing Date"). If for any reason the Close of Escrow has not occurred by the Escrow
Closing Date, then any Party not then in default of this Agreement may cancel the Escrow and
terminate this Agreement, subject to the notice and cure provisions of Section 7.1 (to the extent
applicable), without liability to any other Party or any other person for such termination and
cancellation, by delivering written notice of termination to the other Party(ies) and Escrow Holder
and, thereafter, the Parties shall proceed pursuant to Section 3.10 if the non -terminating Party is
not in default or pursuant to Section 7.2 or 7.3 (as applicable) if the non -terminating Party is in
default. Without limiting the right of any Party to terminate this Agreement, pursuant to the
preceding sentence, if Escrow does not close on or before the Escrow Closing Date, and no Party
has exercised its contractual right to cancel Escrow and terminate this Agreement before such time,
then Escrow shall close as soon as reasonably possible following the first date on which Escrow
Holder is in a position to close the Escrow pursuant to the terms and conditions of this Agreement.
3.7 Recordation and Distribution of Documents. As applicable, Escrow Holder shall
cause the following documents to be recorded in the official records of the Recorder of the County
in the following order of priority at the Close of Escrow: (i) the Grant Deed, with the Purchaser's
certificate of acceptance attached, (ii) the Notice of Agreement, and (iii) the SLA Restrictive
Covenant, and (iv) any other documents to be recorded through Escrow upon the joint instructions
of the Parties. All recorded documents shall provide that they are to be returned to Escrow Holder
after recordation. When originals of such recorded documents are returned to Escrow Holder,
Escrow Holder shall deliver: (i) the original Grant Deed, with the Purchaser's original certificate
of acceptance attached, to the Purchaser and copies to the City, each showing all recording
information, (ii) the original of the Notice of Agreement to the City, with copies to the Purchaser,
each showing all recording information, (iii) the SLA Restrictive Covenant to the City, with copies
to the Purchaser , each showing all recording information, and (iv) the original of any other
document recorded at the close of Escrow to the Party or other person designated in the joint
escrow instructions of the Parties for such recordation and a copy of each such document to the
other Party or Parties, each showing all recording information.
3.8 Escrow Closing Costs, Taxes and Title Policy Premium. The City and the
Purchaser shall each pay one-half (1/2) of the Escrow fees and such other costs as Escrow Holder
may charge for the conduct of the Escrow. Escrow Holder shall notify the Purchaser and the City
of the costs to be home by each of them at the Close of Escrow by delivering the Escrow Holder's
estimated closing/settlement statement to both the City and the Purchaser at least four (4) business
days prior to the Escrow Closing Date. The City shall pay the premium charged by the Title
Company for the standard Title Policy for the Property, exclusive of any endorsements or other
supplements to the coverage of such Title Policy that may be requested by the Purchaser, as well
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as documentary transfer taxes and any and all other charges, fees and taxes levied by a
Governmental Authority relative to the conveyance of any portion of the Property through the
Escrow transaction contemplated in this Agreement. The Purchaser shall pay any and all recording
fees relative to the conveyance of any portion of the Property through the Escrow transaction
contemplated in this Agreement.
3.9 Escrow Cancellation Charges. If the Escrow fails to close due to the City's
material default under this Agreement and the Escrow is cancelled and this Agreement is
terminated, the City shall pay all ordinary and reasonable Escrow and title order cancellation
charges. If the Escrow fails to close due to the Purchaser's material default under this Agreement
and the Escrow is cancelled and this Agreement is terminated, the Purchaser shall pay all ordinary
and reasonable Escrow and title order cancellation charges. If the Escrow fails to close for any
reason other than the material default of either the Purchaser or the City and the Escrow is
cancelled and this Agreement is terminated, the Purchaser and the City shall each pay one-half
(1/2) of any ordinary and reasonable Escrow and title order cancellation charges.
3.10 Escrow Cancellation. If this Agreement is terminated and the Escrow cancelled
pursuant to a contractual right granted to a Party in this Agreement to terminate this Agreement
and cancel the Escrow, other than due to the material default of another Parry, the Parties shall do
each of the following:
3.10.1 Cancellation Instructions. The Parties shall, within three (3) business
days of receipt of Escrow Holder's written request, execute any reasonable Escrow cancellation
instructions requested by Escrow Holder.
3.10.2 Return of Funds and Documents. Within ten (10) days of receipt by
the Parties of a settlement statement of Escrow and title order cancellation charges from Escrow
Holder: (i) the Purchaser or Escrow Holder shall return to the City any documents previously
delivered by the City to the Purchaser or Escrow Holder, (ii) the City or Escrow Holder shall return
to the Purchaser all documents previously delivered by the Purchaser to the City or Escrow Holder;
(iii) Escrow Holder shall return to the Purchaser any funds deposited by Purchaser into Escrow,
including the Earnest Money Deposit, less the Purchaser's share of customary and reasonable
Escrow and title order cancellation charges, if any; and (iv) Escrow Holder shall return to the City
any funds deposited by City into Escrow if it has already been deposited, less the City's share of
customary and reasonable Escrow and title order cancellation charges, if any.
3.11 Report to IRS. Following the Close of Escrow and prior to the last date on which
such report is required to be filed with the Internal Revenue Service, if such report is required
pursuant to Section 6045(e) of the Internal Revenue Code, Escrow Holder shall report the gross
proceeds of the purchase and sale of the Property to the Internal Revenue Service on Form 1099-
B, W-9 or such other form(s) as may be specified by the Internal Revenue Service pursuant to
Section 6045(e). Upon the filing of such reporting form with the Internal Revenue Service, Escrow
Holder shall deliver a copy of the filed form to the City and the Purchaser.
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ARTICLE IV
IINTENTIONALLY DELETED]
ARTICLE V
PURCHASER COVENANTS
5.1 Surplus Land Act Affordable Housing Inclusionary Covenant. Pursuant to
Section 54233 of the SLA, the parties agree that a restrictive covenant substantially in the form of
Exhibit C shall be recorded in the Official Records of the Recorder of the County at or before the
Close of Escrow
5.2 No Conveyance to Tax Exempt Entity. The Purchaser for itself, its successors
and assigns to all or any part or portion of the Property, covenants and agrees that:
5.2.1 Notwithstanding anything in this Agreement to the contrary, the
Purchaser shall not use or otherwise sell, transfer, convey, assign, lease, leaseback or hypothecate
the Property or any portion of any of the foregoing to any entity or person, or for any use of the
Property or any portion of any of the foregoing, that is partially or wholly exempt from the payment
of real or personal property taxes or that would cause the exemption of the payment of all or any
portion of real or personal property taxes otherwise assessable regarding the Property, or any
portion of any of the foregoing, without the prior written consent of the City, which may be
withheld in the City's sole and absolute discretion.
5.2.2 If the Property, or any portion of the Property, shall be conveyed,
transferred or sold to any entity or person that is partially or wholly exempt from the payment of
real or personal property taxes otherwise assessable against the Property, or any portion thereof,
without the prior written consent of the City, then, at the City's election and in addition to all other
remedies available to the City under this Agreement or at law or in equity, the Purchaser shall pay
to the City a fee in lieu of payment of such taxes each year in an amount determined by the City
to be one percent (1%) of the "full cash value" of the Property, or portion thereof, as may be
subject to such exemption from payment of real or personal property taxes. The City's
determination of "full cash value" for in -lieu payment purposes under this Section 5.2.2 shall be
established by the City each year, if necessary, by reference to the real or personal property tax
valuation principles and practices generally applicable to a county property tax assessor under
Section 1 of Article XIIIA of the California Constitution. The City's determination of "full cash
value" and that an in -lieu payment is due shall be conclusive on such matters. If the City
determines that an amount is payable as an in -lieu payment under this Section 5.2.2 in any tax
year, then such amount shall be paid to the City for that tax year within forty-five (45) days
following transmittal by the City to the Purchaser of an invoice for payment of the in -lieu amount.
5.2.3 The covenants of this Section 5.2 shall run with the land of the Property,
shall be enforceable against the Purchaser and its successors and assigns, and shall be covenants
set forth in the Grant Deed.
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5.3 Grant of Easement to SMWD. Immediately following the Closing, and in no
event later than five (5) business days following recordation of the Grant Deed Purchaser shall
grant and cause to be recorded, an easement for water, recycled water and sewer pipeline purposes,
substantially in the form of Exhibit E, attached hereto.
5.4 [intentionally deleted]
5.5 Obligation to Refrain from Discrimination. The Purchaser for itself, its
successors and assigns to all or any part or portion of the Property, covenants and agrees that:
5.5.1 There shall be no discrimination against or segregation of any person,
or group of persons, on account of sex, marital status, race, color, religion, creed, national origin
or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the
Property nor shall the Purchaser, itself or any person claiming under or through it, establish or
permit any such practice or practices of discrimination or segregation with reference to the
selection, location, number, use or occupancy of tenants, lessees, sub -tenants, sub -lessees or
vendees of the Property. The covenant of this Section 5.5 shall run with the land of the Property
and shall be enforceable against the Purchaser and its successors and assigns in perpetuity and be
a covenant in the Grant Deed and the Notice of Agreement.
5.5.2 The covenant of this Section 5.5 shall run with the land of the Property
in perpetuity, shall be enforceable against the Purchaser and its successors and assigns, and shall
be covenants set forth in the Grant Deed.
5.6 Form of Non -Discrimination and Non -Segregation Clauses. The Purchaser for
itself, its successors and assigns to all or any part or portion of the Property, covenants and agrees
that:
5.6.1 The Purchaser, such successors and such assigns shall refrain from
restricting the sale, lease, sublease, rental, transfer, use, occupancy, tenure or enjoyment of the
Property (or any portion thereof) on the basis of sex, marital status, race, color, religion, creed,
ancestry or national origin of any person. All deeds, leases or contracts pertaining to the Property
shall contain or be subject to substantially the following non-discrimination or non -segregation
covenants:
5.6.1.1 In deeds: "The grantee herein covenants by and for itself, its
successors and assigns, and all persons claiming under or through them, that there shall be no
discrimination against or segregation of, any person or group of persons on account of race, color,
creed, religion, sex, marital status, national origin, or ancestry in the sale, lease, sublease, transfer,
use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any
person claiming under or through it, establish or permit any such practice or practices of
discrimination or segregation with reference to the selection, location, number, use or occupancy
of tenants, lessees, sub -tenants, sub -lessee, or vendees in the premises herein conveyed. The
foregoing covenants shall run with the land."
5.6.1.2 In leases: "The Lessee herein covenants by and for itself, its
successors and assigns, and all persons claiming under or through them, and this lease is made and
accepted upon and subject to the following conditions: That there shall be no discrimination
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against or segregation of any person or group of persons, on account of race, color, creed, religion,
sex, marital status, national origin, or ancestry, in the leasing, subleasing, transferring, use,
occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee itself, or any
person claiming under or through it, establish or permit any such practice or practices of
discrimination or segregation with reference to the selection, location, number, use, or occupancy,
of tenants lessees, sub -lessee, sub -tenants, or vendees in the premises herein leased."
5.6.1.3 In contracts: "There shall be no discrimination against or
segregation of any person or group ofpersons on account of race, color, creed, religion, sex, marital
status, national origin, or ancestry, in the sale, lease, sublease, transfer, use, occupancy, tenure, or
enjoyment of the premises herein conveyed or leased, nor shall the transferee or any person
claiming under or through it, establish or permit any such practice or practices of discrimination
or segregation with reference to the selection, location, number, use, or occupancy, of tenants,
lessees, sub -lessees, sub -tenants, or vendees of the premises herein transferred." The foregoing
provision shall be binding upon and shall obligate the contracting party or parties and any
subcontracting party or parties, or other transferees under the instrument.
5.6.2 The covenant of this Section 5.6 shall run with the land of the Property
in perpetuity, shall be enforceable against the Purchaser and its successors and assigns, and shall
be covenants set forth in the Grant Deed.
5.7 Prohibited Uses. No portion of the Property shall be used for a junkyard, adult
entertainment, adult movie theater, adult bookstore, massage parlor, pawn shop, dollar store, check
cashing center (the foregoing shall in no event prohibit banking facilities within a grocery store or
a walk up ATM), payday loan or other similar business, laundromat (not including full service dry
cleaners), business engaged in any commercial cannabis activity, tattoo parlor or fortuneteller, or
for the sale of narcotics paraphernalia, or for the long term treatment, storage or disposal of
Hazardous Materials.
5.8 Survival of Special Development Covenants. All of the covenants set forth in
ARTICLE V, inclusive, shall be a covenant running with the land of the Property and each such
special development covenant shall survive the Close of Escrow, execution and recordation of the
Grant Deed. The Parties acknowledge that although the special development covenants apply to
the entirety of the Property, portions of the Property may, in accordance with the Permitted
Transfer requirements, be sold or otherwise transferred to various successors and assigns of the
Purchaser. Accordingly, the City agrees that with respect to enforcement of any of the special
development covenants, it is understood and agreed that, in the event of a breach of any of the
special development covenants, the City will seek to enforce those covenants only against the then -
current owner(s) of that portion of the Property which is not in compliance with any one or more
the special development covenants. No owner of any portion of the Property which is in
compliance with the special development covenants shall be liable for the breach of any of the
special development covenants by any other owner of any other portion of the Property; provided,
however, that the foregoing shall not preclude City from seeking damages against any prior owner
of any portion of the Property if, during the tenure of such owner's ownership, such owner's
portion of the Property was not in compliance with any one or more of the special development
covenants.
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5.9 Purchaser Covenant to Defend this Agreement. The Purchaser acknowledges
that the City is a "public entity" and/or "public agency" as defined under applicable California
law. Therefore, the City must satisfy the requirements of certain California statutes relating to the
actions of public entities and public agencies including, without limitation, CEQA and SLA. Also,
as a public body, the City's action in approving this Agreement may be subject to proceedings to
invalidate this Agreement or mandamus. The Purchaser assumes the risk of delays and damages
that may result to the Purchaser from any third -party legal actions related to the City's approval of
this Agreement or the pursuit of the activities contemplated by this Agreement, even in the event
that an error, omission or abuse of discretion by the City is determined to have occurred. If a third -
party files a legal action regarding the City's approval of this Agreement or the pursuit of the
activities contemplated by this Agreement, either the City may terminate this Agreement on thirty
(30) days written notice to the Purchaser of the City's intent to terminate this Agreement,
referencing this Section 5.9, without any further obligation to perform the terms of this Agreement
and without any liability to the Purchaser resulting from such termination, unless the Purchaser
unconditionally agrees to indemnify and defend the City, with legal counsel acceptable to the City,
against such third -party legal action, as provided in the next sentence. Within thirty (30) days of
receipt of the City's notice of intent to terminate this Agreement, as provided in the preceding
sentence, the Purchaser may offer to defend the City, with legal counsel reasonably acceptable to
the City, in the third -party legal action and pay all of the court costs, attorney fees, monetary
awards, sanctions, attorney fee awards, expert witness and consulting fees, and the expenses of
any and all financial or performance obligations resulting from the disposition of the legal action.
Any such offer from the Purchaser must be in writing and reasonably acceptable to the City in both
form and substance. Nothing contained in this Section 5.9 shall be deemed or construed to be an
express or implied admission that the City is liable to the Purchaser or any other person or entity
for damages alleged from any alleged or established failure of the City to comply with any statute,
including, without limitation, CEQA or SLA. The Purchaser's defense of such third party actions
as described in this Section 5.9 shall constitute an Unavoidable Delay.
5.10 Environmental Indemnity of the City by the Purchaser. The Purchaser agrees,
at its sole cost and expense, to fully indemnify, protect, hold harmless, and defend (with counsel
selected by the Purchaser and approved by the City) the City and its commissions, agents,
attorneys, officers, employees, and authorized representatives (collectively, the "Indemnified
Parties"), from and against any and all claims, demands, damages, losses, liabilities, obligations,
penalties, fines, actions, causes of action, judgments, suits, proceedings, costs, disbursements and
expenses, including, without limitation, attorney fees, disbursements and costs of attorneys,
environmental consultants and other experts, and all foreseeable and unforeseeable damages or
costs of any kind or of any nature whatsoever (collectively, "Environmental Claims") that may,
at any time, be imposed upon, incurred or suffered by, or claimed, asserted or awarded against, the
Indemnified Parties, directly or indirectly relating to or arising from any of the following
"Environmental Matters" occurring during or arising from the Purchaser's ownership of the
Property or construction or operation of any particular project or development:
5.10.1 The presence of Hazardous Materials on, in, under, from or affecting all
or any portion of the Property.
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5.10.2 The storage, holding, handling, release, threatened release, discharge,
generation, leak, abatement, removal or transportation of any Hazardous Materials on, in, under,
from or affecting the Property.
5.10.3 The violation of any law, rule, regulation, judgment, order, permit,
license, agreement, covenant, restriction, requirement or the like by the Purchaser, its agents or
contractors, relating to or governing in any way Hazardous Materials on, in, under, from or
affecting the Property.
5.10.4 The implementation and enforcement by the Purchaser, its agents or
contractors of any monitoring, notification or other precautionary measures that may, at any time,
become necessary to protect against the release, potential release or discharge of Hazardous
Materials on, in, under, from or affecting the Property.
5.10.5 The failure of the Purchaser, its agents or contractors, in compliance
with all applicable Environmental Laws, to lawfully remove, contain, transport or dispose of any
Hazardous Materials existing, stored or generated on, in, under or from the Property.
5.10.6 Any investigation, inquiry, order, hearing, action or other proceeding by
or before any governmental agency in connection with any Hazardous Materials on, in, under,
from or affecting the Property or the violation of any Environmental Law relating to the Property.
5.10.7 The Purchaser shall pay to the Indemnified Parties all costs and
expenses including, without limitation, reasonable attorneys' fees and costs, incurred by the
Indemnified Parties in connection with enforcement of the aforementioned environmental
indemnity.
ARTICLE VI
[INTENTIONALLY DELETED]
ARTICLE VII
DEFAULTS, REMEDIES AND TERMINATION
7.1 Defaults - General.
7.1.1 Subject to any extensions of time provided for in this Agreement, failure
or delay by any Party to perform any term or provision of this Agreement shall constitute an "Event
of Default" under this Agreement; provided, however, that if a Party otherwise in default
commences to cure, correct or remedy such default, within thirty (30) calendar days after receipt
of written notice from the injured Party specifying such default, and shall diligently and
continuously prosecute such cure, correction or remedy to completion (and where any time limits
for the completion of such cure, correction or remedy are specifically set forth in this Agreement,
-21-
61147.2001N 1844380.1
then within said time limits), such Party shall not be deemed to be in default under this Agreement
and no Event of Default shall be deemed to have occurred.
7.1.2 The injured Party shall give written notice of default to the Party in
default, specifying the default complained of by the non -defaulting Party. Delay in giving such
notice shall not constitute a waiver of any default nor shall it change the time of default.
7.1.3 Any failure or delays by any Party in asserting any of their rights and/or
remedies as to any default shall not operate as a waiver of any default or of any such rights or
remedies. Delays by any Party in asserting any of its rights and/or remedies shall not deprive that
Party of its right to institute and maintain any actions or proceedings that it may deem necessary
to protect, assert or enforce any such rights or remedies.
7.1.4 In addition to other acts or omissions of the Purchaser that may legally
or equitably constitute a default or breach of this Agreement, the occurrence of any of the following
specific events shall constitute an "Event of Default" under this Agreement and shall not be subject
to the notice and cure provisions of Section 7.1.1:
7.1.4.1 Any material default by the Purchaser under any Loan
Documents for any purpose or reason that remains uncured following any applicable notice and
expiration of any applicable cure period under such Loan Documents.
7.1.4.2 Any representation, warranty or disclosure made to the City by
the Purchaser in this Agreement is materially false or misleading.
7.1.4.3 The Purchaser fails to make any payment or deposit of funds
required under this Agreement or to pay any other charge set forth in this Agreement, following
seven (7) days' written notice to the Purchaser from the City of such failure.
7.1.4.4 [intentionally deleted].
7.1.4.5 There occurs any event of dissolution, reorganization or
termination of the Purchaser that adversely and materially affects the operation or value of the
Property, and such event is not corrected within five (5) days following written notice of such
event from the City to the Purchaser.
7.1.4.6 The Purchaser Transfers its interest in this Agreement or the
Property, or any portion thereof, whether voluntarily or involuntarily or by operation of law, in
violation of the terms and conditions of this Agreement and such action is not cured within the
period prescribed in Section 7.1.1.
7.1.4.7 The Purchaser becomes insolvent or a receiver is appointed to
conduct the affairs of the Purchaser under state or federal law.
7.1.4.8 The Purchaser's legal status as a California limited liability
company authorized by the Secretary of State of the State of California to transact business in
California is suspended or terminated.
-22-
61147.20018\41844380.1
7.2 LIQUIDATED DAMAGES TO THE CITY. UPON THE OCCURRENCE OF
AN EVENT OF DEFAULT BY THE PURCHASER UNDER THIS AGREEMENT WHICH IS
NOT CURED WITHIN FIVE (5) DAYS AFTER WRITTEN NOTICE PRIOR TO THE CLOSE
OF ESCROW, THE CITY MAY CANCEL THE ESCROW PURSUANT TO SECTION 3. 10,
AND UPON CANCELLATION OF THE ESCROW, THE CITY SHALL BE RELIEVED OF
ANY OBLIGATION UNDER THIS AGREEMENT TO SELL OR CONVEY THE PROPERTY
OR ANY PORTION THEREOF AND ANY SUCH ESCROW CANCELLATION SHALL BE
WITHOUT ANY LIABILITY OF THE CITY TO THE PURCHASER OR ANY OTHER
PERSON ARISING FROM SUCH ACTIONS. THE CITY AND THE PURCHASER
ACKNOWLEDGE THAT IT IS EXTREMELY DIFFICULT AND IMPRACTICAL, IF NOT
IMPOSSIBLE, TO ASCERTAIN THE AMOUNT OF DAMAGES THAT WOULD BE
SUFFERED BY THE CITY IN THE EVENT OF A CANCELLATION OF THE ESCROW DUE
TO THE OCCURRENCE OF AN EVENT OF DEFAULT BY THE PURCHASER UNDER THIS
AGREEMENT PRIOR TO THE CLOSE OF ESCROW. HAVING MADE DILIGENT BUT
UNSUCCESSFUL ATTEMPTS TO ASCERTAIN THE ACTUAL DAMAGES THE CITY
WOULD SUFFER IN THE EVENT OF A CANCELLATION OF THE ESCROW DUE TO THE
OCCURRENCE OF AN EVENT OF DEFAULT BY THE PURCHASER UNDER THIS
AGREEMENT PRIOR TO THE CLOSE OF ESCROW, THE CITY AND THE PURCHASER
AGREE THAT A REASONABLE ESTIMATE OF THE CITY'S DAMAGES IN SUCH EVENT
IS THE TOTAL SUM OF TWENTY-FIVE THOUSAND DOLLARS ($25,000) (THE
"LIQUIDATED DAMAGES AMOUNT"). THEREFORE, UPON THE CANCELLATION OF
THE ESCROW BY THE CITY DUE TO THE OCCURRENCE OF AN EVENT OF DEFAULT
BY THE PURCHASER UNDER THIS AGREEMENT PRIOR TO THE CLOSE OF THE
ESCROW, ESCROW HOLDER SHALL IMMEDIATELY CANCEL THE ESCROW AND PAY
THE LIQUIDATED DAMAGES AMOUNT TO THE CITY, IN PART, FROM THE EARNEST
MONEY DEPOSIT WITHIN FIVE (5) DAYS OF ESCROW CANCELLATION. RECEIPT OF
THE LIQUIDATED DAMAGES AMOUNT SHALL BE THE CITY'S SOLE AND
EXCLUSIVE REMEDY UPON THE CANCELLATION OF THE ESCROW DUE TO THE
OCCURRENCE OF AN EVENT OF DEFAULT BY THE PURCHASER UNDER THIS
AGREEMENT PRIOR TO THE CLOSE OF ESCROW.
CITY'S INITIALS:
PURCHASER'S INITIAL PURCHASER'S INITIALS:
7.3 PURCHASER'S ELECTION RE: SPECIFIC ENFORCEMENT OF
AGREEMENT OR WAIVER OF RIGHT TO SPECIFIC PERFORMANCE AND
LIMITATION ON RECOVERY OF DAMAGES PRIOR TO CLOSE OF ESCROW. UPON
THE OCCURRENCE OF AN EVENT OF DEFAULT PERTAINING TO THE CONVEYANCE
OF THE PROPERTY BY THE CITY UNDER THIS AGREEMENT PRIOR TO CLOSE OF
ESCROW, THE PURCHASER SHALL, AS ITS SOLE AND EXCLUSIVE REMEDY, HAVE
THE RIGHT TO EXERCISE ONE OF THE ALTERNATIVE REMEDIES DESCRIBED IN
SECTIONS 7.3.1 AND 7.3.2. THE PURCHASER'S ELECTION, ONCE MADE, SHALL BE
IRREVOCABLE.
7.3.1 WAIVER OF RIGHT TO SPECIFIC PERFORMANCE AND
LIMITATION ON RECOVERY OF DAMAGES. THE PURCHASER MAY WAIVE THE
-23-
61147.20018411844380.1
REMEDIES SET FORTH IN SECTION 7.3.2 AND MAY CANCEL THE ESCROW
PURSUANT TO SECTION 3.10, AND UPON CANCELLATION OF THE ESCROW, THE
PURCHASER SHALL BE RELIEVED OF ANY OBLIGATION UNDER THIS AGREEMENT
TO PURCHASE OR ACCEPT TITLE TO THE PROPERTY AND ANY SUCH ESCROW
CANCELLATION SHALL BE WITHOUT ANY LIABILITY OF THE PURCHASER TO THE
CITY OR ANY OTHER PERSON ARISING FROM SUCH ACTIONS. THE PURCHASER
SHALL BE LIMITED TO RECOVERING ANY AMOUNTS ACTUALLY EXPENDED BY
THE PURCHASER IN REASONABLE RELIANCE ON THIS AGREEMENT PRIOR TO THE
DATE OF THE OCCURRENCE OF THE EVENT OF DEFAULT BY THE CITY, NOT TO
EXCEED TEN THOUSAND DOLLARS ($10,000). THE PURCHASER WAIVES ANY RIGHT
TO RECOVER ANY OTHER SUMS FROM THE CITY ARISING FROM AN EVENT OF
DEFAULT BY THE CITY PRIOR TO THE CLOSE OF ESCROW. THE PURCHASER
ACKNOWLEDGES THE PROTECTIONS OF CIVIL CODE SECTION 1542 RELATIVE TO
THE WAIVER AND RELEASE CONTAINED IN THIS SECTION 7.3.1, WHICH CIVIL CODE
SECTION READS AS FOLLOWS:
"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
WHICH THE CREDITOR OR RELEASING PARTY DOES NOT
KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT
THE TIME OF EXECUTING THE RELEASE, AND THAT, IF
KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY
AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR
OR RELEASING PARTY."
BY INITIALING BELOW, THE PURCHASER KNOWINGLY AND VOLUNTARILY
WAIVES THE PROVISIONS OF SECTION 1542 SOLELY IN CONNECTION WITH THE
WAIVERS AND RELEASES OF T ECTION 7.3.1.
PURCHASER'S INITIA PURCHASER'S INITIALS:
Ab -
IN CONNECTION WITH THE WAIVERS OF THIS SECTION 7.3.1, THE
PURCHASER FURTHER WAIVES THE RIGHT TO RECORD A NOTICE OF PENDENCY
OF ACTION AGAINST ALL OR ANY PORTION OF THE PROPERTY EXCEPT
PURCHASER MAY RECORD SUCH A NOTICE IN CONNECTION WITH ANY SUIT FOR
SPECIFIC PERFORMANCE PERMITTED HEREUNDER IN THE EVENT PURCHASER
ELECTS NOT TO WAIVE ITS RIGHT TO SEEK SPECIFIC PERFORMANCE UNDER
SECTION 7.3.2.
7.3.2 SPECIFIC PERFORMANCE. THE PURCHASER MAY WAIVE
THE REMEDIES SET FORTH IN SECTION 7.3.1 AND, IN ACCORDANCE WITH CIVIL
CODE SECTION 3384, ET SEQ., INSTITUTE AN ACTION AGAINST THE CITY FOR
SPECIFIC PERFORMANCE OF THE TERMS OR PROVISIONS OF THIS AGREEMENT
WHICH WERE TO HAVE BEEN COMPLETED BY THE CITY PRIOR TO THE CLOSE OF
ESCROW.
-24-
61147.20018\41844380.1
7.4 Legal Actions.
7.4.1 Except as otherwise provided by Section 7.3, any Party may institute
legal action to cure, correct or remedy any default, to recover damages for any default, or to obtain
any other remedy available to that Party under this Agreement or at law or in equity. Such legal
actions must be instituted in the Superior Court of the State of California in and for the County of
Orange, California, in any other appropriate court within the County of Orange, California.
7.4.2 The procedural and substantive laws of the State of California shall
govern the interpretation and enforcement of this Agreement, without regard to conflicts of laws
principles. The Parties acknowledge and agree that this Agreement is entered into, is to be fully
performed in and relates to real property located in the City of San Juan Capistrano, County of
Orange, California.
7.5 Rights and Remedies are Cumulative. Except as otherwise expressly stated in
this Agreement, the rights and remedies of the Parties set forth in this ARTICLE VII are non-
exclusive and cumulative, and the exercise by any Party of one or more of such rights or remedies
shall not preclude the exercise by it, at the same or different times, of any other rights or remedies
for the same default or any other default by the other Party(ies).
7.6 [intentionally deleted]
7.7 Purchaser Indemnification of the City. In addition to any other specific
indemnification or defense obligations of the Purchaser set forth in this Agreement, the Purchaser
agrees to indemnify, defend (upon written request by the City and with counsel reasonably
acceptable to the City) and hold harmless the Indemnified Parties, from any and all losses,
liabilities, charges, damages, claims, liens, causes of action, awards, judgments, costs and
expenses, including, but not limited to reasonable attorney's fees of counsel retained by the
Indemnified Parties, expert fees, costs of staff time, and investigation costs, of whatever kind or
nature, that are in any manner directly or indirectly caused, occasioned or contributed to in whole
or in part, through any act, omission, fault or negligence, whether active or passive, of the
Purchaser or the Purchaser's officers, agents, employees, independent contractors or
subcontractors of any tier, relating in any manner to this Agreement, any work to be performed by
the Purchaser related to this Agreement, the Property, or any authority or obligation exercised or
undertaken by the Purchaser under this Agreement. Without limiting the generality of the
foregoing, the Purchaser's obligation to indemnify the Indemnified Parties shall include injury or
death to any person or persons, damage to any property, regardless of where located, including the
property of the Indemnified Parties, any workers' compensation or prevailing wage determination,
claim or suit or any other matter arising from or connected with any goods or materials provided
or services or labor performed regarding the Property on behalf of the Purchaser by any person or
entity.
-25-
61147.2001821844380.1
ARTICLE VIII
GENERAL PROVISIONS.
8.1 Incorporation of Recitals. The Recitals of fact set forth preceding this Agreement
are true and correct and are incorporated into this Agreement in their entirety by this reference.
8.2 Reserved.
8.3 Notices. Demands and Communications Between the Parties.
8.3.1 Any and all notices, demands or communications submitted by any
Party to another Party pursuant to or as required by this Agreement shall be proper, if in writing
and dispatched by messenger for immediate personal delivery, by a nationally recognized
overnight courier service or by registered or certified United States Mail, postage prepaid, return
receipt requested, to the principal office of the City or the Purchaser, as applicable, as designated
in Section 8.3.2. Such written notices, demands or communications may be sent in the same
manner to such other addresses as either Party may from time to time designate. Any such notice,
demand or communication shall be deemed to be received by the addressee, regardless of whether
or when any return receipt is received by the sender or the date set forth on such return receipt, on
the day that it is delivered by personal delivery, on the date of delivery by a nationally recognized
overnight courier service or three (3) calendar days after it is placed in the United States Mail, as
provided in this Section 8.3.
8.3.2 The following are the authorized addresses for the submission of
notices, demands or communications to the Parties:
TO PURCHASER: R & H LAND PARTNERS, LLC
c/o Robert J. Socci and Holly H. Socci
30591 Steeplechase Drive
San Juan Capistrano, CA 92675
rsocci@voitco.com
COPY TO: Law Office of CJ Farley, Inc.
917 Glenneyre Street
Suite B
Laguna Beach CA 92651
cj@farleys-law.com
-26-
61147.20018 W 1844380.1
TO CITY: City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, California 92675
Attention: City Manager
(T) 949-493-1171
COPY TO: Best Best & Krieger, LLP
18101 Von Karman Ave, Suite 1000
Irvine, CA 92614
Attention: Elizabeth Wagner Hull
(T) 949-263-2600
(F) 949-260-0972
8.4 Conflict of Interest. No member, official or employee of the City, having any
conflict of interest, direct or indirect, related to this Agreement or the Property shall participate in
any decision relating to this Agreement. The Parties represent and warrant that they do not have
knowledge of any such conflict of interest.
8.5 Warranty Against Payment of Consideration for Agreement. The Purchaser
warrants that it has not paid or given, and will not pay or give, any third party any money or other
consideration for obtaining this Agreement. Third parties, for the purposes of this Section 8.5, shall
not include persons to whom fees are paid for professional services, if rendered by attorneys,
financial consultants, accountants, engineers, architects and the like when such fees are considered
necessary by the Purchaser.
8.6 Non -liability of City, Officials and Employees. No member, official or employee
of the City shall be personally liable to the Purchaser, or any successor in interest of the Purchaser,
in the event of any default or breach by the City under this Agreement or for any amount that may
become due to the Purchaser or to its successor, or on any obligations under the terms of this
Agreement, except as may arise from the gross negligence or willful acts of such member, official
or employee.
8.7 Unavoidable Delay, Extension of Time of Performance.
8.7.1 Subject to specific provisions of this Agreement, performance by any
Party under this Agreement shall not be deemed, or considered to be, in default where any such
default is due to an Unavoidable Delay that is not attributable to the fault of the Party claiming an
extension of time to perform. An extension of time for any Unavoidable Delay shall be for the
period of the Unavoidable Delay and shall commence to run from the date of occurrence of the
Unavoidable Delay, if the Party asserting the existence of the Unavoidable Delay provides the
other Parties with written notice of the occurrence of the Unavoidable Delay, within ten (10) days
of the commencement of such asserted Unavoidable Delay. Otherwise, the extension of time for
an Unavoidable Delay shall commence on the date of receipt of written notice of the occurrence
of the Unavoidable Delay by the Parties not requesting an extension of time to perform due to such
-27-
61147.20018\41844380.1
Unavoidable Delay.
8.7.2 The Parties expressly acknowledge and agree that changes in either
general economic conditions or changes in the economic assumptions of either of them that may
have provided a basis for entering into this Agreement and that occur at any time after the
execution of this Agreement, do not constitute an Unavoidable Delay and do not provide any Party
with grounds for asserting the existence of an Unavoidable Delay in the performance of any
covenant or undertaking arising under this Agreement. Each Party expressly assumes the risk that
changes in general economic conditions or changes in such economic assumptions relating to the
terms and covenants of this Agreement could impose an inconvenience or hardship on the
continued performance of such Party under this Agreement.
8.8 [intentionally deleted]
8.9 Real Estate Commissions. The City shall not be liable for any real estate
commissions, brokerage fees or finder fees that may arise from or be related to this Agreement.
The Purchaser shall pay any fees or commissions or other expenses related to its retention or
employment of real estate brokers, agents or other professionals.
8.10 Binding on Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the Parties and their respective heirs, executors, administrators, legal
representatives, successors, and assigns.
8.11 Entire Agreement.
8.11.1 This Agreement shall be executed in three (3) duplicate originals, each
of which shall be deemed to be an original, but all of which together shall constitute one and the
same instrument. All pages of this Agreement (exclusive of signature pages) and all exhibits
constitute the entire understanding and agreement of the Parties regarding the Property and the
other subjects addressed in this Agreement.
8.11.2 This Agreement integrates all of the terms and conditions mentioned in
this Agreement or incidental to this Agreement, and supersedes all negotiations or previous
agreements between the Parties with respect to the Property and the other subjects addressed in
this Agreement.
8.11.3 None of the terms, covenants, agreements or conditions set forth in this
Agreement shall be deemed to be merged with any deed conveying title to the Property and this
Agreement shall continue in full force and effect before and after such conveyances.
8.11.4 All waivers of the provisions of this Agreement and all amendments to
this Agreement must be in writing and signed by the authorized representative(s) of all Parties.
8.12 Execution of this Agreement. Following execution of three (3) originals of this
Agreement by the authorized representative(s) of the Purchaser and prompt delivery of such
originals, thereafter, to the City, accompanied by an official action of the governing body of the
Purchaser authorizing the individuals executing this Agreement on behalf of the Purchaser to
execute and perform this Agreement, in form and substance acceptable to the City, this Agreement
-28-
61147.20018W
28_61147.20018W 1844380.1
shall be subject to the review and approval by the City Council, in their sole and absolute
discretion, no later than forty-five (45) calendar days after such date of delivery to the City. If the
City have not approved, executed, and delivered an original of this Agreement to the Purchaser
within the foregoing time period, then no provision of this Agreement shall be of any force or
effect for any purpose.
8.13 Survival of Indemnity Obligations. All general and specific indemnity and
defense obligations of the Parties set forth in this Agreement shall survive the expiration or
termination of this Agreement, the execution or recordation of the Grant Deed, and/or the issuance
and recordation of any Certificate of Completion.
8.14 Time Declared to be of the Essence. As to the performance of any obligation
hereunder as to which time is a component thereof, the performance of such obligation within the
time provided is of the essence.
[Signatures on Following Pages]
-29-
61147.200 WA 1844380.1
SIGNATURE PAGE
TO
PURCHASE AND SALE AGREEMENT
Dated: 2%A
ATTEST:
0 �� �w fa tUoly6*kAwv'( 6
Monis, Ci Clerk
BEST BEST & KRIEGER LLP
CITY:
THE CTI'Y OF SAN JUAN CAPISTRANO
a California municipal corporation
By: -7�F� <;��/
Benj i iegel, ty Manager
By. �l0.
1'�`/
Jeffrey Ballinger, City Attorney
.61147.20018A 1844380.1
SIGNATURE PAGE
TO
PURCHASE AND SALE AGREEMENT
PURCHASER:
R&H LAND PARTNERS, LLC a California limited
liability company
Dated: By:
'Robmll SoZtk Manager
M I
w 11
I _
Holly H. Socci, Manager
61147.20018`41844380.1
EXHIBIT A
TO
PURCHASE AND SALE AGREEMENT
Legal Description of the Property
PARCF LI
In the City of San Ju an Capistrano; County of Orange, State of California, being that portion of
Lott of Amended Map of Parol Map 79.856, filed in book 176, Pages I through $inclusive,
of Parcel hfaps in the Office of lite County Recorder of said County, lying souttncesterly of the
soultiftsterlyline of that certain storm drain easement shown as `S 39°0''46' E 327.13' and
S9'02'46"1154.67' "on Said Parcel Map, further described as follows:
beginnink at the -most xcsterlycorner of said Lot G; thence along the northwesterly lineof said
Lot G the rollmwi ng two (2) courses:
1) Korth 42°3719' Easl269.69 feel and
2) North 57.47ST East 52.22 feet to a paint in said soutlnwesterly line;
thence along said southwtcstetly line the following hip (2) courscs:
South 38°17'05' East 109.89 feet and
South 8°18'30' East 54.71 feel to the southeasterly line of said Cul G, said point being on a non-
tangenbcurve concave southeasterly having a radius of 11625.00 feet, a radial line to the
beginning of said curve bears North 37'21'25' West: thence along said southeasterly line and the
soutIn esterly line of said Lot.0 the foll6wing two (2) courses:
southwesterly 271.88 feet along said curve through a centrad angle of 1"20'24' and
hon tangent from said curve North 47'227W West 120A0 reello.the Point of Beginning.
Con twining an area of 1.007 acres, more or les.
All -as shown on Exit ihit "b" and by this reference made a part hereof.
1
Jasoxt. Kinnie, LS. No. 7090
Dater 04/04/2023
EXHIBIT A
61147.20018441844380.1
jie
April 7.20'3 W0 Na 1100.7
rage 1 of 1
HRA Legal Na 10742
By.K.Kouehi
llxd'cd By. J. Kira ie
EXHIBIT A
TO
PURCHASE AND SALE AGREEMENT
Legal Depiction
Sketch to Aecampany Legal Description /
KANCHC1 VIEJO ISD.
j`3
�01, 3
„lam 42
6
1 �
3"7 Y
AMEN\DED. MAP OF
' 58 >/
PARCEL MAP NO 79-856`,�'s
POR. LOT G
9�v PARCEL 1
a°J A., 1.007 A.C.
rz�
,Oy
(J INDICATES RECDRD DATA PER
AMENDED MAP OF PARCEL MAP
79-856, P.M.B. 176/1—B.
[ ] INDICATES RECORD AND
MEASURED DATA PER AMENDED
MAP OF PARCEL NAP 79-856.
P.M.B. 176/1-8
EXHIBIT A
61147.20018\41844380.1
o
RAD
04/07/2023
,A; R. IONIZE, PLS 7090 DATED
EXHIBIT B
TO
PURCHASE AND SALE AGREEMENT
[Intentionally Deleted]
EXHIBIT B
61147.20018\41844380.1
EXHIBIT C
TO
PURCHASE AND SALE AGREEMENT
SLA Restrictive Covenant
[Attached Behind This Page]
EXHIBIT C
61147.2001 8\41844380.1
RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Attn: City Clerk
EXEMPT FROM RECORDING FEES
(Government Code §§6103 & 27383)
Space Above Line for Recorder's Use Only
APN: 666-232-08
The undersigned grantor(s) declare(s) documentary transfer tax is $0.00.
DECLARATION OF RESTRICTIVE COVENANTS
THIS DECLARATION OF RESTRICTIVE COVENANTS ("Restrictive Covenant") is
made this _ day of 20_ by the CITY OF SAN JUAN CAPISTRANO, a California
municipal corporation (hereinafter "Declarant"), with reference to the following facts:
RECITALS
A. Declarant is the sole owner in fee simple of that certain parcel consisting of
approximately 1 acre located at Calle Arroyo and Rancho Viejo Road, in the City of San Juan
Capistrano, County of Orange, State of California, commonly referred to as Assessor's Parcel
Number 666-232-08 as more fully described in Exhibit A and depicted in Exhibit B (the
"Parcel").
B. In anticipation of the sale of the Parcel, Declarant complied with the terms of the
Surplus Land Act (Government Code § 54220 et seq.) (the "Act").
C. On June 15, 2021, Declarant's City Council adopted Resolution No. 21-06-15-06,
which, among other things, declared the Parcel as non-exempt surplus land pursuant to Section
54221(b)(1) of the Act.
D. Subsequently, Declarant issued a Notice of Availability of the Parcel to all
statutorily entitled entities, and Declarant received no Notices of Interest within the statutory
period of availability.
COVENANTS, TERMS, CONDITIONS AND RESTRICTIONS
In consideration of the above recitals, Declarant hereby declares the Parcel shall be held,
transferred, conveyed, leased, occupied or otherwise disposed of, and used subject to the following
restrictive covenants:
If ten (10) or more residential units are developed on the Parcel, not less than 15 percent
of the total number of residential units developed on the Parcel shall be sold or rented at affordable
EXHIBIT C
61147.20018\41844380.1
housing cost, as defined in Section 50052.5 of the California Health and Safety Code, or affordable
rent, as defined in Section 50053 of the California Health and Safety Code, to lower income
households, as defined in Section 50079.5 of the California Health and Safety Code. Rental units
shall remain affordable to and occupied by lower income households for a period of 55 years for
rental housing and 45 years for ownership housing from the date of recordation of this Restrictive
Covenant. The initial occupants of all ownership units shall be lower income households, and the
units shall be subject to an equity sharing agreement consistent with the provisions of paragraph
(2) of subdivision (c) of Section 65915 of the California Government Code. These requirements
shall be covenants or restrictions running with the land and shall be enforceable against any owner
who violates a covenant or restriction and each successor -in -interest who continues the violation
by any of the entities described in subdivisions (a) to (f), inclusive, of Section 54222.5 of the
California Government Code.
IN WITNESS WHEREOF Declarant has executed this Restrictive Covenant the day and
year first above written and agrees to be bound by the terms and provisions hereof.
DECLARANT:
3O.Y1 JVWWrr a"0
CITY OF a California municipal
corporation
Date: 1-11-24
By:
Benjam' , City anager
EXHIBIT C
61147.20018441844380.1
ACKNOWLEDGMENT
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
County of Orange
On January 11, 2024
before me,
personally appeared Benjamin Siegel
Christy A. Jakl, Notary Public
(insert name and title of the officer)
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. CHRISTY A. JAKE
Notary Public - California
Orange County
Commission k 7446640
My Comm. Expires May 11, 2027
Signature VIE (Seal)
Exhibit A
Legal Description
PARCEL 1
In We City of San Juan Capistrano, County Oro range, State of California. being lliul portion of
Lot G of Amended Map of Parcel Mop 79-856; filed in Book 176, Pages i through S, inclusive,
of Parcel Maps, in the Office of the County Recotder.af said County; lyingsouthwesterly of 01e
southwesterly line of that certain storm drain easement shown as."S 39'(1246' E 327.13' and
MX46"E54.67 "on said Parcel Map, further described as follows:
Beonning at the most desterly corner of said Lot G; thence along the northwesterly line of said
lot G the following two (2) courses:
1) North 42'3719'East269.69feet and
2) North 5704ZST East 52.22 feet to a point in said southwesterly line;
then&along said southwesterly line the following neo (2)courscs:
South WITOS'East 109.89 fcet and
South &"1830' East 54.71 feet to the soullieasicily line of said Wt G; said point being an a non -
tangent curve concave southeasterly having a radius of 1162UO feel, a radial line to the
beginning of said curve bears North 3702125 West; thence along said southeasterly line and the
soutlnsesterly lino of said Lot G the folimving two (2) courses:
southwesterly 271.88 feel along said curve through a moral angle of 1420'24' and
nun -tangent from suid curve North 47M 24'.Nest MAO feet to the Polot of Beginning.
Containing an area of 1.007 acres, more or less.
All asshmsn on E•xhbil"B" and by this reference made apart Hereof.
Jaso. Kinnie, L.S. No. 7090
iADate. 04/04/2023
61147.20018141844380.1
,Apiif 7,20P
%VONa 1100.7
Pije I of -I
H&A tergal Na 10442
01t IC. Kaww
Chrcled By: J. Kimilc
Exhibit B
Legal Depiction
Sketch k doeompmy Legal Deseviptitm /
RANCHO VIEJO RD.
43
3'5 ' \
36\N\\, /
i� AMENDED. MAP OF
>i
40
PARCEL MAP NO. 79-856
r,►y. �
() PMICATES RECORD DATA PER
ANERDEO MAP OF PARCEL MAP
79-856, P.U.B. 176/18.
[ ] IOICATES RECORO ARD
MEASURED DATA PER AUEt.T)ED
MAP OF PARCEL NAP 79-M.
/>4
^C / 42
POR. LOT 0
PARCEL 1
1.007 A.C.
P.M.B. 176/1-8
EXHIBIT C
61147.20018\41844380.1
04/07/2023
JPM R. ION 1E, PLS 7090 DATED
EXHIBIT D
TO PURCHASE AND SALE AGREEMENT
Form of Grant Deed
[Attached Behind This Page]
EXHIBIT D
61147.20018141844380.1
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Attn: City Clerk
EXEMPT FROM RECORDING FEES
(Government Code § 27383)
APN: 666-232-08
(Space above for Recorder's Use Only)
THE CITY OF SAN JUAN CAPISTRANO
GRANT DEED
PART ONE
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
THE CITY OF SAN JUAN CAPISTRANO, a California municipal corporation
("Grantor"), hereby grants to R&H Land Partners, LLC a California limited liability company
("Grantee"), that certain real property located in the City of San Juan Capistrano, County of
Orange, State of California, specifically described in Exhibit "A" attached to this Grant Deed
("Property") and made a part of this Grant Deed by this reference, excepting therefrom a
permanent easement for trail purposes over, across and through a portion of the Property
specifically described in Exhibit `B" attached to this Grant Deed ("Trail Easement").
PART TWO
The conveyance of the Property by the Grantor to the Grantee in Part One is subject to the
following community development terms, conditions, covenants and restrictions:
Section 1. Condition of Property. The Grantee acknowledges and agrees that the
Property is conveyed by the Grantor to the Grantee in its "AS IS," "WHERE IS" and "SUBJECT
TO ALL FAULTS CONDITION," as of the date of recordation of this Grant Deed, with no
warranties, expressed or implied, as to the environmental or other physical condition of the
Property, the presence or absence of any patent or latent environmental or other physical condition
on or in the Property, or any other matters affecting the Property.
Section 2. Oblieation to Refrain from Discrimination. The Grantee for itself, its
successors and assigns to all or any part or portion of the Property, covenants and agrees that:
2.1 There shall be no discrimination against or segregation of any person, or
group of persons, on account of sex, marital status, race, color, religion, creed, national origin or
ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property
EXHIBIT D
61147.20018\41844380.1
nor shall the Grantee, itself or any person claiming under or through it, establish or permit any
such practice or practices of discrimination or segregation with reference to the selection, location,
number, use or occupancy of tenants, lessees, sub -tenants, sub -lessees or vendees of the Property.
The covenant of this Section 3 shall run with the land of the Property and shall be enforceable
against the Grantee and its successors and assigns in perpetuity and be a covenant in the Grant
Deed and the Notice of Agreement.
2.2 The covenant of this Section 5 shall run with the land of the Property in
perpetuity, shall be enforceable against the Grantee and its successors and assigns, and shall be
covenants set forth in the Grant Deed.
Section 3. Form of Non -Discrimination and Non -Segregation Clauses. The Grantee
for itself, its successors and assigns to all or any part or portion of the Property, covenants and
agrees that:
3.1 The Grantee, such successors and such assigns shall refrain from restricting
the sale, lease, sublease, rental, transfer, use, occupancy, tenure or enjoyment of the Property (or
any portion thereof) on the basis of sex, marital status, race, color, religion, creed, ancestry or
national origin of any person. All deeds, leases or contracts pertaining to the Property shall contain
or be subject to substantially the following non-discrimination or non -segregation covenants:
(a) In deeds: "The grantee herein covenants by and for itself, its
successors and assigns, and all persons claiming under or through them, that there shall be no
discrimination against or segregation of, any person or group of persons on account of race, color,
creed, religion, sex, marital status, national origin, or ancestry in the sale, lease, sublease, transfer,
use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any
person claiming under or through it, establish or permit any such practice or practices of
discrimination or segregation with reference to the selection, location, number, use or occupancy
of tenants, lessees, sub -tenants, sub -lessee, or vendees in the premises herein conveyed. The
foregoing covenants shall run with the land."
(b) In leases: "The Lessee herein covenants by and for itself, its
successors and assigns, and all persons claiming under or through them, and this lease is made and
accepted upon and subject to the following conditions: That there shall be no discrimination
against or segregation of any person or group of persons, on account of race, color, creed, religion,
sex, marital status, national origin, or ancestry, in the leasing, subleasing, transferring, use,
occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee itself, or any
person claiming under or through it, establish or permit any such practice or practices of
discrimination or segregation with reference to the selection, location, number, use, or occupancy,
of tenants lessees, sub -lessee, sub -tenants, or vendees in the premises herein leased."
(c) In contracts: "There shall be no discrimination against or
segregation of any person or group of persons on account of race, color, creed, religion, sex, marital
status, national origin, or ancestry, in the sale, lease, sublease, transfer, use, occupancy, tenure, or
enjoyment of the premises herein conveyed or leased, nor shall the transferee or any person
claiming under or through it, establish or permit any such practice or practices of discrimination
or segregation with reference to the selection, location, number, use, or occupancy, of tenants,
EXHIBIT D
61147.20018\41844380.1
lessees, sub -lessees, sub -tenants, or vendees of the premises herein transferred." The foregoing
provision shall be binding upon and shall obligate the contracting party or parties and any
subcontracting party or parties, or other transferees under the instrument.
3.2 The covenants of this Section 5 shall run with the land of the Property in
perpetuity
Section 4. No Conveyance to Tax Exempt Entity. The Grantee for itself, its successors
and assigns to all or any part or portion of the Property, covenants and agrees that:
4.1 The Grantee shall not use or otherwise sell, transfer, convey, assign, lease,
leaseback or hypothecate the Property, or any portion of any of the foregoing to any entity or
person, or for any use of the Property, or any portion of any of the foregoing, that is partially or
wholly exempt from the payment of real or personal property taxes or that would cause the
exemption of the payment of all or any portion of real or personal property taxes otherwise
assessable regarding the Property, or any portion of any of the foregoing, without the prior written
consent of the Grantor, which may be withheld in the Grantor's sole and absolute discretion.
4.2 If the Property, or any portion of the Property, shall be conveyed, transferred
or sold to any entity or person that is partially or wholly exempt from the payment of real or
personal property taxes otherwise assessable against the Property, or any portion thereof, without
the prior written consent of the Grantor, then the Grantee shall pay to the Grantor a fee in lieu of
payment of such taxes each year in an amount determined by the Grantor to be one percent (1 %)
of the "full cash value" of the Property, or portion thereof, as may be subject to such exemption
from payment of real or personal property taxes. The Grantor's determination of"full cash value"
for in -lieu payment purposes under this Section 6 shall be established by the Grantor each year, if
necessary, by reference to the real or personal property tax valuation principles and practices
generally applicable to a county property tax assessor under Section 1 of Article XIIIA of the
California Constitution. The Grantor's determination of "full cash value" and that an in -lieu
payment is due shall be conclusive on such matters. If the Grantor determines that an amount is
payable as an in -lieu payment under this Section 6 in any tax year, then such amount shall be paid
to the Grantor for that tax year within forty-five (45) days following transmittal by the Grantor to
the Grantee of an invoice for payment of the in -lieu amount.
4.3 The covenants of this Section 6 shall run with the land of the Property, shall
be enforceable against the Grantee and its successors and assigns of the Property.
Section 5. Covenants Run with the Land. Each of the covenants and agreements
contained in this Grant Deed touch and concern the Property and each of them is expressly declared
to be a community development covenant that runs with the land for the benefit of the Grantor or
the City of San Juan Capistrano, as the successor public agency to the Grantor, and such covenants
run with the land in favor of the Grantor for the entire period that such covenants are in full force
and effect, regardless of whether the Grantor is or remains an owner of any land or interest in land
to which such covenants relate. The Grantor, in the event of any breach of any such covenants, has
the right to exercise all of the rights and remedies, and to maintain any actions at law or suits in
equity or other proper proceedings, to enforce the curing of such breach, as provided in the
Agreement or by law. The covenants contained in this Grant Deed are for the benefit of and are
EXHIBIT D
61147.20018w1844380.1
enforceable only by the Grantor or the City of San Juan Capistrano, as the successor public agency
to the Grantor, and shall survive the execution and recordation of this Grantor Deed and the
issuance and recordation of each and every Certificate of Completion, for the time period set forth
above for each covenant.
Section 6. Costs and Attorneys' Fees for Enforcement Proceeding. If legal proceedings
are initiated to enforce the rights, duties or obligations of any of the covenants set forth in this
Grant Deed, then the prevailing party in such proceeding shall be entitled to collect its reasonable
attorney fees and costs from the other party in addition to any other damages or relief obtained in
such proceedings.
Section 7. Effect of Unlawful Provision; Severability. In the event that any provision
of this Grant Deed is held to be invalid or unlawful by a final judgment of a court of competent
jurisdiction, such invalidity shall not affect the validity of any other provision of this Grant Deed.
EXHIBIT D
61147.20018\41844380.1
IN WITNESS WHEREOF, the Grantor has caused this Grant Deed to be executed by its
authorized representative(s) on this I t day of JWLIaW 202
GRANTOR:
THE CITY OF SAN JUAN CAPISTRANO
a California municipal corporation
By:
jagri �' gel, C Manager
[ALL SIGNATURES MUST BE NOTARY ACKNOWLEDGED]
EXHIBIT D
61147.20018451844380.1
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
County of Orange )
On
January 11, 2024
before me, Christy A. Jakl, Notary Public
(insert name and title of the officer)
personally appeared Benjamin Siegel
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.
n
Signature
CHRISTYA. JAIL
Rotary Public -California
Orange County
ComIWI.n # 244.640
My Comm. Expires May 11, 2027
(Seal)
EXHIBIT A
TO
GRANT DEED
Property Legal Description
The land situated in the City of San Juan Capistrano, County of Orange, State of California, described as
follows:
P,�CEL 1
In the City of San Juan Capistrano, County of Orange, Slate of.(oliforeia, being [hat portion of
1.ul G of Amended Mapof Pared Map 79.546, Blvd in nook 176, Pages 1 through ti, inclusive,
of Parcel Maps, in the Office of the Comity Recorder of said County, lying southwesterly of We
soutlmrsterly line of that certain storm drain casement sh(nvn as "S 39*DT46' G _L -7:I3' and
59°02'46"1154.67' on slid Parcel Map, further ,iesen'bed as follow
Beginning at Oil: most westerly turner ofslid Lot G; Otcnce along thenorthwesterly line of said
Lot G the fo11m3ng Bvo (2) courses:
1) North 42°371T East 269.69 feet and
2) North 57°42STGast$2= feel tonpointinsaid southtresterlyline;
thence along said wutinvesterly line the follwving bio (2) courses;
South 3S°17'05' East- 109.89 feel and
South ir1930' Gast 54.71 feet to the southeasterly line of said Lot G, said poi in being on;a non.
tangent curve concave southeasterly having a radius of 11625.00 feet, a radial line to the
beginning of said curve hears Nonh 37020-51 West; thence along said soulheasterly line and the
soullnsesterly line of said lit G the following Iqo (2) courses
soulhtvcsterly 271.88 feel along said curve lhrougit a central angle of 1'2024' and
non•tange ll fmmsaihlcurvc North 4722'24' Wesl 120A0 feet to the Palo[ol Beginuing.
Containing an area of 1.007 acres, more or Ips&
All as shmvhon Exhibit "B" and by -this reference made apart hereof.
1
Jasoi. Kinnio, LS. No. 7090
Dalin. 04/04/2023
EXHIBIT D
61147.20018471844380.1
Apd17,2023
WO No. 11007
Page left
H&A Lcpl No: 10142
Bl: K.Kowld
CNded lap J. Kiiude
EXHIBIT B
TO
GRANT DEED — TRAIL EASEMENT
LEGAL DESCRIPTION
A strip of land 10 feet in width in the City of San Juan Capistrano, County of Orange, State of
California, being that portion of Lot G of Amended Map of Parcel Map 79.856, filed in Book 176,
Pages 1 through 8, inclusive, of Parcel Maps, in the Office of the County Recorder of said County,
the northwesterly line of said strip described as follows:
PARCEL I
Commencing at the most westerly corner of said Lot G; thence along the southwesterly line of
said Lot G, South 47022'24" East 94.64 feet to the True Point of Beginning: thence North
70923'19" East 3.04 feet; thence North 5198'10" East 20.05 feet; thence North 47°05'38" East
31.64feet thence North 66957'52" East 8.96 feet; thence North43926'07" East 10.05 feet; thence
North 41029'07" East 25.08 feet; thence North 46°42' 17" East 10.13 feet; thence North 47°42'30"
East 15.98 feet; thence North 37043'23" East 7.48 feet; thence North 50'55'15" East 20.14 feet;
thence North 56904'42" East 20.03 feet; thence North 47'20'16" East 24.39 feet; thence North
53015153" East 23.93 feet; thence North 54021'56" East 23.87 feet, thence North 52016'32" East
29.53 feet; thence North 50'13'34" East 16.22 feet; thence North 55043'30" East 6.72 feet to a
point in that certain course ofthe westerly line of a storm drain easement shown as"N9°02'46"E
S4.67'0 onsaid Parcel Map and the terminus ofthis description.
The southeasterly sideline of said strip to be lengthened or shortened so as to originate in said
southwesterly line and to terminate in said westerly line.
Containing an area oF2,935 square feet, more or less.
All as shown on Exhibit "B" and by this reference made a part hereof.
J819A. Kinnie, L.S. No. 7090
Date: 04/07/2023
EXHIBIT D
61147.2001 8\41844380.1
Apr117, 2023
WO No. 1300-7
Page 1 of 1
H&A Legal Na 10443
By: K gouchl
Checked By: J. gimde
EXHIBIT B
TO
GRANT DEED — TRAIL EASEMENT
EXHIBIT 'B"
Sketch to Accompany Legal Description
�y0
RANCHO VIEJO RD.INDICATES
RECORDATA PER
(] AMENDED MAP OP PARCEL MAP
79-656, PAB. 176/1-6. O
[ ] INDICATES RECORD AND �O� 35
MEASURED DATA PER AMENDED 4Z
MAP OF PARCEL MAP 79-656. �.�
36
'
37
/041
0 MPP
0
/ 38
ppr
40 �8 \�`:��
a.4
+I F
y G
?� PARCEL 1
�j 2.935 SF.
�l �ery� ry5 11�a
I�6
rya `bM1�'
39 P.O.C. �,'Aa®' Napo
N.A.P.
L1 MCI: LP.O.B. '
INDICATES SHEET NUMBER - 04/D7/2023
JA R. KI IE, PLS 7090 DATED
®HIINBAI
ASSOCIATEI&V.
EXHIBIT Off"
" r
IMANNINCI m. x aee� ass • ne �ecMs
ran oFaW u1M olRa1H1M4 oan1Y aF gWgE aTxiEOF OKl✓ONN
4/07/23 w: - k K. KWCHI
o J. KINNIE SCALE 1'= 60' WA IND -7
"'E I: PW Calle Arroyo\LD\16443—Trii'il\SHM1.dwg
H&A LEGPL Na 104431 SHEET 1 OF S
EXHIBIT D
61147.20018\41844380.1
EXHIBTI' B
TO
GRANT DEED — TRAIL EASEMENT
EXHIBIT 'B'
Sketch to Accompany Legal Description
EEAFIAG
lENC1H
L1
�
3A4'
40
IL51'19'1d'E
20A5'
W
E
11.64'
L4
N86'57.52'E
696'
LS
H43'28T)TE
q
L6
N41'29T1YE
25.09'
F
rq
H46.42'17E
1
LINE TABLE
N4Y42'J(rE
1598'
LINE
NJY4J'2SE
7.46'
L10
�`^�
20.14'
AMENDED MAP OF
�•
r`h
I
`
9
PARCEL MAP
NO. 79-856
'
PARCEL
1
G 2.935 S.F.
PA.C.
/ �
l
P.M.B.
176/1-8
i{y
�
39
s
N.A.P.
O INDICATES RECORD DATA PER
b�
AMENDED MAP OF PARCEL MAP TAO.B.
79-656, P.M.B. 176/1 -EL
y \
[ ] INDICATES RECORD AND
'
MEASURED DATA PER AMENDED
t N?8-VIE41EPI
MAP OF PARCEL ►IAP 79-656.
RAIZ-•_.
E& A6SOCIATEB
EXHIBIT NB°
® I a v I
I l V l n[ I N C
K
FXVRW
rm "wo - am G%uz -110® M �momm m
CM OFaUIJMN a6P161FM1q 000KfV OF ORMW UMTEOF CUSOlUM
4/07/23 = — -jrK. KOUCHI
os J. KINNIE SCALE:
1`= 30'
WA iso -7
"'c I: PW Calle Arro LD\10443—Trail SHT02.dw
H&A LEGAL N4 10443 SHEET S OF S
147.20018\41844380.1
EXHIBIT D
61
EEAFIAG
lENC1H
L1
H70'21'19'E
3A4'
L2
IL51'19'1d'E
20A5'
W
N47T15'38'E
11.64'
L4
N86'57.52'E
696'
LS
H43'28T)TE
10A5' -
L6
N41'29T1YE
25.09'
L7
H46.42'17E
10.13'
L8
N4Y42'J(rE
1598'
19
NJY4J'2SE
7.46'
L10
N50'S5'15E
20.14'
C
f/
EXHIBIT B
TO
GRANT DEED - TRAIL EASEMENT
EXHIBIT V
Sketch to Accompany Legal Description
AMENDED MAP OF
y PARCEL MAP NO. 79-856
P.M.B. 176/1-8
G
PARCEL 1-� y
2,935 S.F. �C
20.00' STORM DRAIN ESMT. DEDICATED
TO THE CITY OF SAN JUAN CAPISTAND
PER AMENDED MAP OF PARCEL MAP
79-856.
N.A.P.
() INDICATES RECORD DATA PER
rys {5RR AMENDED MAP OF PARCEL MAP
\.o 79-B56, P.M.B. 176/1-8.
[ ] INDICATES RECORD AND
MEASURED DATA PER AMENDED
MAP OF PARCEL MAP 79-856.
®HUNSA EIR&ASSOCIATES
I K Y I N E, : N C. EXHIBIT4B
n
tisN pffit:11[�q '9YUEI. tb 0�L1o39 tIY OF WI AMOAVORUR OOUM OF CRUM, OrATE OF"iOWCA
4Po7/23 I "... - - - ..'K. KOIICHI a. J. KINNIE I SCALE: 1'= 30' 1 w.Q 100.7
EXHIBIT D
61147.20018411844380.1
UNE TABLE
UNE
BEARING
LF20M
L10
N50'55'15E
20.14'
L11
N55'04.427E20.03'
L12
N47'20'16E
24.39'
L13
- N53'15'S3'E
23.93'
L14
N54.21'56 E
23.87'
L15
N52'I6'3TE
29.53'
L16
NSO'13'34'E
16.22'
L17
N55'43'ArE
6,72'
AMENDED MAP OF
y PARCEL MAP NO. 79-856
P.M.B. 176/1-8
G
PARCEL 1-� y
2,935 S.F. �C
20.00' STORM DRAIN ESMT. DEDICATED
TO THE CITY OF SAN JUAN CAPISTAND
PER AMENDED MAP OF PARCEL MAP
79-856.
N.A.P.
() INDICATES RECORD DATA PER
rys {5RR AMENDED MAP OF PARCEL MAP
\.o 79-B56, P.M.B. 176/1-8.
[ ] INDICATES RECORD AND
MEASURED DATA PER AMENDED
MAP OF PARCEL MAP 79-856.
®HUNSA EIR&ASSOCIATES
I K Y I N E, : N C. EXHIBIT4B
n
tisN pffit:11[�q '9YUEI. tb 0�L1o39 tIY OF WI AMOAVORUR OOUM OF CRUM, OrATE OF"iOWCA
4Po7/23 I "... - - - ..'K. KOIICHI a. J. KINNIE I SCALE: 1'= 30' 1 w.Q 100.7
EXHIBIT D
61147.20018411844380.1
v IRIMORRIMIJI
[To be Attached]
EXHIBrF E
61147.20018\41844380.1
RECORDING REQUESTED BY:
WHEN RECORDED MAIL TO:
Santa Margarita Water District
26111 Antonio Parkway
Rancho Santa Margarita, CA 92688
Affects APN 666-232-08
Mail Tax Statements to:
Santa Margarita Water District
26111 Antonio Parkway
Rancho Santa Margarita, CA 92688
[Space above this line is for Recorder's use only]
This document is recorded for the benefit of SANTA MARGARITA
WATER DISTRICT. The recording fee is exempt under Sections 6103
and 27383 of the Government code.
DOCUMENTARY TRANSFER TAX: $0.00 (Less than $100/ Rev. &
Tax Code Section 11911)
(Signature) Kelly Radvansky
Secretary to the Board of Directors
GRANT OF EASEMENT
TO
SANTA MARGARITA WATER DISTRICT
FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, R&H
Land Partners, LLC, a California limited liability company ("Grantor"), hereby grants and conveys
to SANTA MARGARITA WATER DISTRICT, a California water district formed and existing
pursuant to Section 34000, et. seg., of the Water Code of the State of California ("Grantee"), a
perpetual non-exclusive easement and right-of-way for water, recycled water, and sewer pipelines,
together with incidental appurtenances, connections, and structures in, over, under, upon, along,
through, and across the respective portions of the real property described in the attached Exhibit
"A" and generally depicted in the attached Exhibit `B," said Exhibits incorporated herein by this
reference (the "Easement Area"). The easement and right-of-way granted herein is in gross and is
limited to the purposes expressly described herein.
The easement and right-of-way granted herein includes the incidental rights to enter upon
and pass and repass over and along the Easement Area for the construction (including, without
limitation, grading, excavation, and compaction of the Easement Area), reconstruction,
enlargement, improvement, repair, operation, and maintenance of Grantee's facilities or facilities
to be constructed by Grantee, and for ingress and egress to Grantee's Easement Area. After
completion of any work performed by Grantee or its agents, contractors, or employees which
disturbs the surface of Grantor's property, Grantee shall, at its own expense, restore the surface of
such area as close as reasonably possible to its original character after completion of such work,
EXHIBIT E
61147.20018\41844380.1
but such restoration shall not include any replacement of decorative materials, concrete, or paver
surfaces.
The easement and right-of-way acquired herein are acquired subject to the right of
Grantors, their successors and assigns to use the surface and subsurface of the land within the
Easement Area to the extent that such use is compatible with the full and free exercise of the
easement and right-of-way by Grantee; provided, however, that no fences, block walls, or other
structures or other improvements shall be constructed upon, over or along the Easement Area
without the prior written consent of Grantee, which consent shall not be unreasonably withheld or
delayed.
No fill or paving of any nature shall be placed or maintained on the surface of the ground
within the Easement Area, nor shall any earth be removed from the cover of the pipeline after
construction, without prior written consent of Grantee, which consent shall not be unreasonably
withheld or delayed.
Grantee shall have the right to use gates in all of Grantors' fences which presently or
hereafter cross the Easement Area, and to remove, trim, cut, and clear away any trees and brush
whenever in Grantee's reasonable judgment the same shall be necessary for the convenient and
safe exercise of the rights granted hereby, but Grantor shall have no obligation to install any gates
or fences.
IN WITNESS WHEREOF, this instrument has been executed this day of
2023.
R&H Land Partners, LLC
a California limited liability company
0
Lo
Robert J. Socci, Manager
EMNEE
Holly H. Socci, Manager
EXHIBIT E
61147.2001841844380.1
ACKNOWLEDGMENT
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 no the
truthfulness, accuracy, or validity of that
document.
State of California)
County of
On
personally appeared
before me,
MOO,
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.
Signature
(Seal)
EXHIBIT E
61147.20018\41844380.1
CERTIFICATE OF ACCEPTANCE
The undersigned, being the duly appointed agent of SANTA MARGARITA WATER
DISTRICT, a public corporation ("District'), Orange County, California, pursuant to its
Resolution No. 88-10-2, does hereby accept on behalf of District, the grant of all interests in real
estate for public purposes as described in the attached Grant of Easement dated the day
of , 2023, and does hereby certify District consents to the recordation
of the attached Grant of Easement.
DATED:
SANTA MARGARITA WATER DISTRICT
0
Secretary
(SEAL)
EXHIBIT E
61147.20018\4 1844380.1
EXHIBIT A
TO
FORM OF SMWD EASEMENT
Property Legal Description
EXHIBIT"A"
LEGAL DESCRIPTION
WATERLINE EASEMENT AREA:
A strip of land 20 feet in width in the City of San Juan Capistrano, County of Orange. State of
California, being That portion of Lot G of Amended Map of Parcel Map 79-856, filed in Book 176,
Pages 1 through B, inclusive, of Parcel Maps. in the Office of the County Recorder of said County,
the centerline of said strip described as follows:
Commencing at the most westerly corner of said Lot G: thence along the northwesterly line of
said Lot G North 42°37'19" East 10.00 feet to a line parallel with and distant 10.00 feet
northeasterly of the southwesterly line of said Lot G and the True Point of Beginning;: thence
along said parallel line South 47°22'24" East 29.70 feet; thence North 42056'08" East 73.82 feet;
thence North 49°35'41" East 43.24 feet; thence North 519613" East 48.44 feet; thence North
47056'59" East 139.37 feet to a point in that certain course of the southwesterly line of a storm
drain easement shown as " S 39°02'46" E 327.13'" on said Parcel Map and the terminus of this
description.
The sidelines of said strip to be lengthened or shortened southwesterly in the southwesterly and
northwesterly line of said Lot G, and northeasterly in said southwesterly line of the storm drain
easement
Containing an area of 6,690 square feet, more or less
All as shown on Exhibit "B" and by this reference made a part hereot
. N
la . Kinnie, L.S. No. 7090
Date: 06/06/2023
61147.20018\41844380.1
EXHIBIT E
Revised: May 30. 2023
April 7, 2023
WO, No. 1100-7
Past 1 of 1
H&A Legal No. 10463
By. K. Kouchi
checked By: 1. lannie
EXHIBIT B
TO
FORM OF SMWD EASEMENT
EXHIBIT ®B°
Sketch to Accompany Legal Description
y
RANCHO VIEJO RD.
LEOENQ
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35
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39 P.o.c.
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N0.7080
() INDICATES RECORD DATA PER
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•9I��
AMENDED MAP OF PARCEL MAP
79-856, PAR. 176/1-8.
`. ��
-[ ] INDICATES RECORD AND
MEASURED DATA PER AMENDEO
�' 06/06/2023
MAP OF PARCEL MAP 79-656,
13�. R. KI IE PLS 7090 DATED
®HUNSA CEE. &L ASSOCIATES
9
EXHIBIT B
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COV OF M ■TIN O"6ERAN0. O OF Q AHWm MAO? OF 04FORNIA
04/06/23 o+ie 06/06/23 1 er°K. KOUCHI
ey° J. KINRIE BCALE:1•_ 80' w.a 1100-7
I: P15' Cdi Arrnvo LD\ 10453 -WT SHTO1 H&ALEOALN0.10453 .SHEETIOFS
EXHIBIT E
61147.20018441844380.1
EXHIBIT B
TO
FORM OF SMWD EASEMENT
EXHIBIT E
61147.20018 W 1844380.1
EXHIBIT °B°
Sketch to Accompany Legal Dexcription
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AMENDED MAP OF
AS -BUILT LOCAIDN
rya!
AS'
PARCEL MAP N0. 79-856
WATERLINE EASEMENT AREA
6,690 S.F.
y"a
39 �4 AS=WLT LOCATION
�Q
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.
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() INDICATES RECORD DATA PER
H
AMENDED MAA OF PARCEL MAP
�`tioti'�{3�ry1
79-855, P.I.B. 176/1-6.'•�,
'•�
[ ] INDICATES RECORD AND
MEASURED DATA PER AMENDED
1�N78•gI•gn•w
'"
UAP OF PARCEL MAP 79-856.
pAb•--
®HUNSA&EEL & ASSOCIATES
o n
EXHIBIT B
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GUY OF MI AEAN OAFARrNANO, OOIINEY OF OFUUM R7AIM OF CALIFORNIA
04/06/23 n"re 06/06/23 1 V, K. KOUCHI
en J. KINNIE 1 8CALE 1'=$0' 4 1 W.0. lDO-7
m•l:. PW Calle Amo o LD 10453-VJT SHT02.dwa I HAA LEGAL Na 104WI SHEETY OF
EXHIBIT E
61147.20018 W 1844380.1
EXHIBIT B
TO
FORM OF SMWD EASEMENT
EXHIBIT °B°
Sketch to Areompany Legal Defcripiiun
AMENDED MAP OF
\ 20.00' STORM DRAIN ESMT. DEDICATED
TO THE CITY OF SAN JUAN CAPISTANO
E ��6'� ? PER AMENDED MAP OF PARCEL MAP
'12• 79-656.
a.
\
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AS -BUILT LOCATION
F
/
y PARCEL MAP NO. 79-856
y 1 p o5 •
WATERLINE EASEMENT AREA 1 ��; •`
6,690 S.F. 1 ,
fay��
G
I P.M.B. 1761-8
tis
() INDICATES RECORD DATA PER
� AMENDED MAP 0 ,UrtP
79-856, 176/1-8.
I tt H [ ] -INDICATES RECORD AND
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f r MAP OF PARCEL MAP 79-856.
& ASSOCIATES
,N
n
HIBIT B
®HUNSAKMIL
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CRY OF FM MM COMIRMO, C01MfY OF OfLIM WAIF OF CAI Kmm
°"e D4/Ofi/23 o a 06/06/23 e�`K. KOUCHIer
J. KINNIE SCALE: 1"= 30' w.a roo-�
Eu, I: PW CdIe Arno o LD 10453—VVT SHTC3.dw HM LEGAL. No. 10453 -SHEET 8 OF S
EXHIBIT E
61147.20018\4 1844380.1
EXHIBIT F
TO
PURCHASE AND SALE AGREEMENT
Form of Official Action of Purchaser
CERTIFICATION OF LLC AUTHORITY
The undersigned members of R&H Land Partners, LLC, a California limited liability
company (the "LLC"), do certify that we are all of the members of the LLC and that there are no
other members.
We further certify that both of the following named persons, individually:
Robert J. Socci
Holly H. Socci
be, and they are, authorized and empowered for and on behalf of and in the name of the
LLC to execute and deliver that certain Purchase and Sale Agreement, dated W It , 200;
between the City of San Juan Capistrano, a California municipal corporation, ("City") and the
LLC (the "Agreement"), to purchase certain real property located in the City of San Juan
Capistrano, California, as specifically described in the Agreement, and all other documents to be
executed by the LLC in connection with the transactions contemplated in the Agreement, and to
take all actions that may be considered necessary to conclude the transactions contemplated in the
Agreement and perform the other obligations of the LLC pursuant to the Agreement.
The authority conferred shall be considered retroactive, and any and all acts authorized in
this document that were performed before the execution of this Certificate are approved and
ratified. The authority conferred shall continue in full force and effect until the City of San Juan
Capistrano, a California municipal corporation shall have received notice in writing from the LLC
of the revocation of this Certificate.
We further certify that the activities covered by the foregoing certifications constitute duly
authorized activities of the LLC; that these certifications are now in full force and effect; and that
there is no provision in any document under which the LLC is organized and/or that governs the
LLC's continued existence, limiting the power of the undersigned to make the certifications set
forth in this certificate, and that such certifications are in conformity with the provisions of all such
documents.
LLC Member: Socci Living Trust, Sole Member
Robert J. Socci, Manager
Holly H. Socci, Manager
EXHIBIT F
61147.20018\41844380.1
MEMBER:
SCOCCI LIVING TRUST
Y�
Robert J. rustee
Holly H. Socci, Tnistee
EXHIBIT F
61147.20018\41844380.1