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HomeMy WebLinkAboutRDA Packet 1999/02/02Tuesday, February 2, 1999 Council Chambers 4:00 p.m. Public Services Building (immediately following the City Council meeting) Regular Meetin~ of the Redevelonment A~encv of the City of Chula Vista CALL TO ORDER 1. ROLL CALL: Agency Members Davis , Moot Padilla , Salas , and Chair Horton ~NSENT ITEMS (Item2) (Will be voted on immediately following the Council Consent Calendar during the City Council meeting) The staff recommendations regarding the following item listed under the Consent Calendar will be enacted by the Agency by one motion without discussion unless an Agency member, a member of the public or City staff requests that the item be pulled for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak Form" available in the lobby and submit it to the Secretary of the Redevelopment Agency or the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed after Action Items. Items pulled by the public will be the first items of business. 2. RESOL TION 1616 ACCEPTING BIDS AND AWARDING CONTRACT FOR THE SITE CLEARING OF THE PARCEL AT 965 AND 980 LAGOON DRIVE IN THE CITY OF CHULA VISTA, CALIFORNIA (RD-229)--On 12/16/98, sealed bids were received for site clearing at 965 and 980 Lagoon Drive. The work consists of the demolition, removal, disposal, clearing, hauling, backfilling, and grading plus other miscellaneous work; and also includes all labor, material, equipment, transportation, and traffic control necessary to complete the project. Staff recommends approval of the resolution accepting the bids and awarding the contract to Med Tox, Inc. of Santa Aha, CA. (Director of Public Works) ADJOURNMENT TO CITY COUNCIL MEETING ORAL COMMUNICATIONS This is an opportunity for the general public to address the Redevelopment Agency on any subject matter within the Agency's jurisdiction that is not an item on this agenda. (State law, however, generally prohibits the Redevelopment Agency from taking action on any issues not included on the posted agenda.) If you wish to address the Agency on such a subject, please complete the "Request to Speak Under Oral Communications Form" available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to the meeting. Th~se wh~ wish t~ speak~ please give y~ur name and address f~r rec~rd purp~ses and f~ll~w up acti~n. PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES The following items have been advertised and/or posted as public hearings as required by law. If you wish to speak to any item, please fill out the "Request to Speak Form" available in the lobby and submit it to the Redevelopment Agency or the City Clerk prior to the meeting. Agenda -2- February 2, 1999 3. PUBLIC HEARING: TO CONSIDER THE SALE OF SPACE AT 154 ORANGE TREE MOBILEHOME PARK--In November 1987, Orange Tree Mobilehome Park converted to resident ownership. The Agency assisted the residents in purchasing their park with a $600,000 acquisition loan which was converted to loans for lower income residents to help them purchase their spaces. At that time, 29 residents did not wish to purchase their space, and the Agency agreed to purchase these spaces after the newly-formed homeowner's association was unable to secure financing to purchase these unsold spaces. The residents who did not purchase their space remained as renters. The Agency's desire is to sell these spaces as new home buyers move into the park. The Agency currently owns 14 spaces, having sold 15 spaces. Staff recommends approval of the resolution. (Director of Community Development) RESOLUTION 1617: AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO EXECUTE A PURCHASE CONTRACT AND RELATED DOCUMENTS FOR SPACE 154 AT ORANGE TREE MOBILEHOME PARK ACTION ITEMS The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by the Council, staff, or members of the general public. The items will be considered individually by the Council and staff recommendations may in certaln cases be presented in the alternative. Those who wish to speak, please fill out a "Request to Speak"form available in the lobby and submit it to the City Clerk prior to the meeting. 4. AGENCY APPROVING REPAYMENT OF AGENCY DEBT TO THE CITY, RESOLUTION 1618 APPROVING A FUNDING AGREEMENT FOR THE PROVISION BY COUNCIL THE CITY OF $250,000 TO THE OLYMPIC TRAINING CENTER, AND RESOLUT~ APPROPRIATING FUNDS THEREFOR--On 4/19/94, the City Council voted to support the concept of donating $1 million to the Olympic Training Center (OTC) to assist in the completion of facilities. The source of City funds was intended to be funds received through repayment to the City by the Redevelopment Agency using proceeds from the sale to the Port district of real property located at 980 Lagoon Drive, owned by the Agency. the Agency is currently in escrow for the sale of that property to the Port and $250,000 of purchase funds that the Port has deposited are immediately available. Staff has negotiated with the OTC a Funding Agreement which commits the OTC to providing and enhancing certain programs, functions and activities that benefit the local community. (Community Development Director) 4/5ths Vote Reauired ITEMS PULLED FROM THE CONSENT CALENDAR This is the time the Redevelopment Agency will discuss items which have been removed from the Consent Calendar. Agenda items pulled at the request of the public will be considered prior to those pulled by Agency Members. Agenda -3- February 2, 1999 OTHER BUSINESS 5. DIRECTOR/CITY MANAGER'S REPORT¢SI 6. CHAIR/MAYOR'S REPORT(SI 7. AGENCY/COUNCIL MEMBER COMMENTS ADJOURNMENT The meeting will adjourn to a closed session and thence to the Regular Redevelopment Agency Meeting on February 16, 1999 at 6:00 p.m., immediately following the City Council meeting, in the City Council Chambers. CLOSED SESSION Unless Agency Counsel, the Executive Director, or the Redevelopment Agency states otherwise at this time, the Agency will discuss and deliberate on the following item(s) of business which are permitted by law to be the subject of a closed session discussion, and which the Agency is advised should be discussed in closed session to best protect the interests of the City. The Agency is required by law to return to open session, issue any reports of final action taken in closed session, and the votes taken. However, due to the typical length of time taken up by closed sessions, the videotaping will be terminated at this point in order to save costs so that the Agency's return from closed session, reports of l~inal action taken, and adjournment will not be videotaped. Nevertheless, the report of final action taken will be recorded in the minutes which will be available in the Office of the Secretary to the Redevelopment Agency and the City Clerk's Office. 8. CONFERENCE WITH REAL PROPERTY NEGOTIATOR - Pursuant to Government Code Section 54956.8 a) Property: Assessor Parcel Nos. 565-310-09; 565-310-25 (approximately 6.35 acres located at the northwest corner of I-5 and E Street) Negotiating Parties: Redevelopment Agency (Chris Salomone) and City of San Diego Under Negotiations: Price and terms for disposition b) Property: Approximately 4 acres at the southeast corner of I-5 and SR-54 Negotiating Parties: City and Redevelopment Agency of Chula Vista (Chris Salomone) and CalTrans Under Negotiations: Price and terms for disposition/acquisition c) Property: Assessor Parcel No. 562-310-45 (approximately 14.56 acres at the southwest corner of National City Blvd. and C Street) Negotiating Parties: City and Redevelopment Agency of Chula Vista (Chris Salomone) and Wayne Ansley Under Negotiations: Price and terms for disposition/acquisition Agenda -4- February 2, 1999 d) Property: Assessor Parcel No. 562-321-06 (approximately 10 acres located at the northeast corner of SR-54 and National City Blvd.) Negotiating Parties: City and Redevelopment Agency of Chula Vista (Chris Salomone) and Derr Family Trust Under Negotiations: Price and terms for disposition/acquisition 9. CONFERENCE WITH LEGAL COUNSEL REGARDING ANTICIPATED LITIGATION - Pursuant to Government Code Section 54956.9(b). Contemplated use of eminent domain by the City of San Diego (Metropolitan Waste Water Department or its affiliates) to acquire Agency owned property. 10. CONFERENCE WITH REAL PROPERTY NEGOTIATOR - Pursuant to Government Code Section 54956.8 Property: 340-368 Bay Boulevard (5 parcels totaling 3.65 acres): 567-022-35 340 Bay Boulevard 1.02 acres 567-022-17 350 Bay Boulevard 0.65 acres 567-022-31 360 Bay Boulevard 0.73 acres 567-022-33 364 Bay Boulevard 0.63 acres 567-022-28 368 Bay Boulevard 0.62 acres Negotiating Parties: City/Redevelopment Agency (Chris Salomone); San Diego Unified Port District; B.F. Goodrich Under Negotiations: Purchase/lease terms and conditions REDEVELOPMENT AGENCY AGENDA STATEMENT Item ~ Meeting Date: 2~2~99 ITEM TITLE: Resolution /'~ / ~ Accepting bids and awarding contract for the "Site Clearing of the parcel at 965 & 980 Lagoon Drive in the City of Chula Vista, California {RD-229)' / SUBMITTED BY: Director of Public Works (~ _ (~ REVIEWED BY: Executive Director'~ ~(~ , (4,Sths Vote: Yes_NoW On December 16, 1998, in the Public Services Building, tlfe Director of Public Works received sealed bids for the "Site Clearing of the Parcel at 965 & 980 Lagoon Drive (Shangri-La site) in the City of Chula Vista, California (RD-229)'. The work consists of the demolition, removal, disposal, clearing, hauling, back filling, grading, and other miscellaneous work. The work also includes all labor, material, equipment, transportation, and traffic control necessary for the project. RECOMMENDATION: That Agency accept bids and award the contract for the "Site Clearing of the Parcel at 965 & 980 Lagoon Drive (Shangri-La site)in the City of Chula Vista, California (RD-229)' to Med Tox, Inc. of Santa Ana, California, for $49,500.00. BOARDSICOMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: On June 10, 1997, in a joint meeting, the Council and Agency approved Council Resolution 18690 and Agency Resolution 1543, approving an Agreement for Purchase and Sale between the City of Cbula Vista and the San Diego Unified Port District for the Sale of 980 Lagoon Drive (Shangri La site). The Sale Agreement established an acquisition price of $981,000 based on highest and best reuse (office/commercial). Escrow was opened in February 1998, at which time the Port deposited $500,000 into an interest-bearing escrow account. These funds have been made available for use by the Agency for cleanup and clearing of the site. One condition to close escrow is removal of all remaining improvements on the site. The site and the adjoining property at 965 Lagoon Drive, also owned by the Agency, currently contain concrete slabs, walls, concrete block masonry basins, and building footings. Structures were earlier removed to eliminate attractive nuisance and safety hazards. The proposed contract would result in final clearing of both sides, satisfying one remaining condition to close of escrow on the property. On June 2, 1998, the Redevelopment Agency approved a contract with an environmental consultant to remove contaminated soils from the Shangri La site. The value of that contract was 3130,000. Additionally, the Redevelopment Agency is considering appropriation and transfer of $250,000 of the $500,000 deposit from the Port to the City as a credit to outstanding debt to the General Fund. That money is to then be used by the City to fund an Agreement with the ARCO Olympic Training Center for use on capital projects. Therefore, a total of $380,000 Page 2, Item ~ Meeting Date: 212~99 of the original $500,000 deposit would be encumbered, leaving $120,000 remaining. The proposed contract is for $49,500, within the remaining balance of the escrow deposit. The entire deposit amount of $500,000 has been appropriated into account #600-6000-RD229, for purposes including the demolition and clearing work. Approval of the proposed contract would allow the demolition of the remaining building slabs, walls, footings and other miscellaneous building remains. It is anticipated that completion of this project will occur in late March 1999. Engineering staff prepared specifications, and advertised the project. Staff received and opened bids on December 16, 1998. The City received bids from nine (9) contractors as follows: CONTRACTOR BID AMOUNT 1. Med Tax, Inc., Santa Ana, California $49,500.00 2. Hance Construction, San Diego, California $49,950.00 3. Teixeira Construction, San Diego, California ~58,000.00 4. John Beck, Westminster, California $58,900.00 5. New Century Construction, San Diego, California $66,390.00 6. Foss Environmental Services Co., San Diego, California 874,500.00 7. Penhall Company, San Diego, California $77,970.00 8. Jimenez, d.b.a. MJC, Chula Vista, California $87,500.00 9. Pullman Backhoe, San Diego, California $96,100.00 The Iow bid by Med Tox, Inc. is below the Engineer's estimate of $70,000 by $20,500 or 29% of the Engineer's estimate. Engineering staff checked the references provided by the contractor and their work has been satisfactory. Staff has reviewed the Iow bid and recommends awarding the contract to Med Tox, Inc. of Santa Aha, California. Disclosure Statement Attachment "A' is a copy of the contractor's Disclosure Statement. Environmental Status The Environmental Review Coordinator has reviewed the work involved in this project and has determined that the project is exempt under Section 15301-(L) of the California Environmental Ouality Act. Page 3, Item ~ Meeting Date: 2~2~99 Prevailing Wage Statement The source of funding for this project is Redevelopment Agency Funds deposited into an interest-bearing escrow account by the San Diego Unified Port District. Contractors bidding this project were required to pay prevailing wages to persons employed by them for the work under this project. Financial Statement FUNDS REQUIRED FOR CONSTRUCTION A. Contract Amount $49,500.00 B. Contingencies ~5,000.00 C. Staff Costs (Design & Inspection) $5,000.00 TOTAL FUNDS REQUIRED FOR CONSTRUCTION $59,500.00 FUNDS AVAILABLE FOR CONSTRUCTION A. Redev. Agency Escrow Acct. 600.6000-RD22§ 859,500.00 TOTAL FUNDS AVAILABLE FOR CONSTRUCTION 859,500.00 At close of escrow, assumin0 that the entire 8500,000 deposit amount is expended, the Agency would net approximately $481,000 from the sale of the property (less normal escrow and closing costs). This is an estimate that presumes no exceptional cleanup and remedial costs. If the Agency is unable to satisfy all of the conditions of escrow identified in the original Purchase and Sale Agreement and the sale is not completed, the Agency must reimburse all of the funds, and interest, drawn down from the deposit account, to the Port. However, the Purchase and Sale Agreement provides an alternative for the repaying of the funds, in a form of a reduction in the Port CIP funds approved for the City by the amount owed. Although this would result in a reduction of Port CIP projects for the City, the Agency would retain ownership of the Shangri-La property which would be prepared for development, and have greater value for eventual resale for redevelopment purposes, should the Agency so desire. The property could also be developed for park or other public use. Attachment: A - Contractor's Disclosure Statement H:HOME\ENGINEER\DESIGN\RD229A113,WPD AGENCY RESOLUTION NO. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING CONTRACT FOR THE "SITE CLEARING OF THE PARCEL AT 965 & 980 LAGOON DRIVE IN THE CITY OF CHULA VISTA, CALIFORNIA (RD-220)" WHEREAS, on December 16, 1998, the Director of Public Works received the following nine sealed bids for the "Site Clearing of the parcel at 965 & 980 Lagoon Drive (Shangri- La site) in the City of Chula Vista: I BID AMOUNT CONTRACTOR 1. Med Tox, Inc., Santa Ana, California $49,500.00 2. Hance Construction, San Diego, California $49,950.00 3. Teixeira Construction, San Diego, California $58,000.00 4. John Beck, Westminster, California $58,900.00 5. New Century Construction, San Diego, California $66,390.00 6. Foss Environmental Services Co., San Diego, California $74,500.00 7. Penhall Company, San Diego, California $77,970.00 8. Jimenez, d.b.a. MJC, Chula Vista, California $87,500.00 9. Pullman Backhoe, San Diego, California $96,100.00 WHEREAS, the Iow bid by Med Tox, Inc. is below the Engineer's estimate of $70,000 by $20,500 or 29% of the Engineer's estimate and staff checked the references provided by the contractor and their work has been satisfactory; and WHEREAS, staff has reviewed the Iow bid and recommends awarding the contract to Med Tox, Inc. of Santa Ana, California. NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agency of the City of Chula Vista does hereby accept said nine bids and award the contract for the "Site clearing of the parcel at 965 & 980 Lagoon Drive in the city of Chula Vista" to Med Tox, Inc. of Santa Ana, California in the amount of $49,500.00. BE IT FURTHER RESOLVED that the Chair of the Redevelopment Agency is hereby authorized and directed to execute said contract on behalf of the Redevelopment Agency of the City of Chula Vista. Presented by Approved as to form by Chris Salomone Director of Community Development IH:/home\lorraine/rs/lagoon,965 (January 22, 1999 (11:03am)] THE CITY OF CHULA VISTA DISCLOSURE STATEMENT You are required to file a Statement of Disclosure of certain ownership or financial interests, payments, or campaign contributions, on all matters which will require discretionary action on the part of the City Council, Planning Commission, and all other official bodies. The following information must be disclosed: 1. List the names of all persons having a financial imerest in the property which is the subject of the application or the Contract , e.g., owner, applicant, Contractor, subcontractor, material supplier. 2. If any person* identified pursuant to (1) above is a corporation or partnership, list the names of all individuals owning more than 10% of the shares in the corporation or owning any partnership interest in the parmership. 3. If any person* identified pursuant to (1) above is non-profit organiTation or a trust, list the names of any person serving as director of the non-profit organiTsttion or as trustee or beneficiary or trustor of the trust. 4. Have you had more than $250 worth of business transacted with any member of the City staff, Boards, Commissions, Committees, and Council within the past twelve month? Yes __ No __ If yes, please indicate person(s): 5. Please identify each and every person, including any agems, employees, consultants, or independent Contractors who you have assigned to represent you before the City in this matter. 6. Have you and/or your officers or agents, in the aggregate, contributed more than $1,000 to a Council member in the current or preceding election period? Yes __ No __ If yes, state which Council members(s): * * * (NOTE: Attached additional pages ~ necgss.a, fy) * * * Date: ''. ~ S~.LL~.re;of Applicant Print or type name of Co~Ficl tor/^pplicant * Person is defined as: 'Any individual, firm, co.partnership, joint vehture, association, social club, paternal organization, corporalion, e~tate, trust, receiver, .ryndicate, this and any other county, city or country, city municipality, district, or other political subdivision, or any other group or combination acting as a unit. 13 REDEVELOPMENT AGENCY AGENDA STATEMENT Item .~ Meeting Date 02[02199 ITEM TITLE: PUBLIC HEARING: TD CONSIDER THE SALE OF SPACE 154 AT ORANGE TREE MOBILEHOME PARK RESOLUTION /'~ / '? AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO EXECUTE A PURCHASE CONTRACT AND RELATED DOCUMENTS FOR SPACE 154 AT ORANGE TREE MOBILEHOME PARK SUBMITTED BY: Community Development Director,..,(_\~,,,/-'~ · REVIEWED BY: Executive Director"¥'.~_.l(~U~/~ (4,SthsVote: Yes_ NoX_~ BACKGROUND: In November 1987, Orange Tree Mobilehome Park converted to resident ownership. The Agency assisted the residents in purchasing their park with a ~;600,000 acquisition loan which was converted to loans for lower income residents to help them purchase their spaces. At that time, 29 residents did not wish to purchase their space, and the Agency agreed to purchase these spaces after the newly-formed homeowner's association was unable to secure financing to purchase them. The residents who did not purchase their space remained as renters. The Agency's desire is to sell these spaces as new home buyers move into tho park. The Agency currently owns 14 spaces, having sold 15 spaces. On January 5, 1999, the current resident of Space 154 at Orange Tree Mobilehome Park submitted an offer to purchase that space to the Community Development Department. RECOMMENDATION: That the Redevelopment Agency conduct a public hearing, consider testimony, and adopt a resolution authorizing the Community Development Director to execute a purchase contract and related documents for Space 154 at Orange Tree Mobilehome Park. BOARDS[COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The current resident of Space 154 is interested in purchasing the property. The value of the property has been appraised at 821,000 and the buyer has offered to purchase the lot for the appraised value. Staff recommends accepting the offer. This is a request to authorize the Community Development Director to execute a purchase contract and related documents as approved by the City Attorney's office for the sale of space 154 at Orange Tree Mobilebome Park. Attached as Exhibit A is the signed Purchase Contract. Health and Safety Code § 33431 requires a public hearing to consider a sale of agency owned property without public bids. Staff believes that the proposed sale is appropriate even without public bids because the sale is to the current resident for the fair market value of the property. Page 2, Item__ Meeting Date 02102J99 FISCAL IMPACT: The Redevelopment Agency has an outstanding loan of approximately 815,262 as of December 3, 1998 from Bank of America for this space. Proceeds of the sale will be used to pay off this loan. The remaining balance, less closing costs, will be deposited into the Agency's Low and Moderate Income Housing Set-aside Fund. {LH) H:IHOMEICOMMDEVISTAFF.REPI02.02.9910RANGETREE [January 27, 1999 {l:35PM}] RESOLUTION NO. f/(~ /'? RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO EXECUTE A PURCHASE CONTRACT AND RELATED DOCUMENTS FOR SPACE 154 AT ORANGE TREE MOBILEHOME PARK WHEREAS, the Redevelopment Agency currently owns mobilehome spaces at Orange Tree Mobilehome Park located at 521 Orange Avenue, Chula Vista; and WHEREAS, an offer to purchase space 154 at Orange Tree Mobilehome Park has been received by the Community Development Department from the existing resident for the appraised value of $21,000 for such property; and WHEREAS, Article 11, Section 33431 of the California Community Redevelopment Law requires a public hearing be held for any sale of lease of Agency-owned property without public bids; and WHEREAS, said public hearing has been conducted pursuantto Section 33431 for the sale of space 154 at Orange Tree Mobilehome Park; and WHEREAS, the Redevelopment Agency has found and determined that the sale of space 154 at Orange Tree Mobilehome Park to the existing resident is in the best interest of the Redevelopment Agency and is consistent with its housing goals. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of Chula Vista as follows: 1. That based on the facts and findings set forth above, the Redevelopment Agency of the City of Chula Vista does hereby approve the sale of space 154 at Orange Tree Mobilehome Park to Natividad Buelna for the purchase price of $21,000; and 2. That the Redevelopment Agency of the City of Chula Vista does hereby authorize the Community Development Director to execute a purchase contract, in substantially the same form and filed in the Office of the Secretary to the Redevelopment Agency, and escrow instructions each in a final form approved by the Agency Attorney, and with such additional provisions as may be deemed necessary or appropriate thereby; and 3. That the Redevelopment Agency of the City of Chula Vista does hereby authorize the Community Development Director to take such other action as deemed necessary to consummate said sale of space 154 at Orange Tree Mobilehome Park. Presented by Approved as to form by Director of Community Development rney [(LH) M:~HOME~COMMDEV~RESOS\orangeIree (Janua~ 27, 1999 (1:54PM)] REAL ESTATE PURCHASE CONTRACT AND RECEIPT FOR DEPOSIT This is more than a receipt for money. It is intended to be a legally binding contract. Read it carefully. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA COMMUNITY DEVELOPMENT DEPARTMENT ***Standard Form*** Chula Vista, California k-~A'p'} · ~ , 1999 Natividad Buelna, herein called Buyer, desires to purchase Space 154 at Orange Tree Mobilehome Park, 521 Orange Avenue, Chula Vista. Received from Buyer, the sum of two hundred fifty dollars ($250.00), evidenced by: [circle oneJ Ia] Cash [b] Cashier's Check ~ Personal Check No. 1751~ [d] Other payable to the Redevelopment Agency of the City of Chula Vista as deposit on account of purchase of property. Upon acceptance of this offer, Natividad Buelna will deposit into escrow the remaining balance of the purchase price of twenty-one thousand dollars ($21,000), for the purchase of property situated in Chula Vista, County of San Diego, California, described as follows: SEE ATTACHED LEGAL DESCRIPTION (More commonly known as Space 154 at the Orange Tree Mobilehome Park, 521 Orange Avenue, Chula Vista) 1. Buyer will deposit in escrow with Spring Mountain Escrow the balance of purchase price of $20,750. 2. Redevelopment Agency of the City of Chula Vista, herein called Agency, will credit the $250 received as a deposit towards the purchase price of $21,000. 3. Buyer does intend to occupy subject property as his/her/their residence. 4. Buyer and the City of Chula Vista Redevelopment Agency, herein called Agency, shall deliver signed instructions to the escrow holder within seven (7) days from Seller's acceptance, which shall provide for closing within 30 days from Seller's acceptance. Escrow and other fees to be paid as follows: By Agency: 1. Owner's Title Insurance Policy 2. One-half of Escrow Fee 3. Document Transfer Tax 4. Document Preparation Fee. 5. IRS Tax Report 6. One-half of Transfer Fee of Homeowners Association 7. Proration of Property Taxes and Homeowners Association Fee By Buyer: 1. One-half of Escrow and Homeowners Association Fee 2. If the sale is not completed due to fault of the Buyer, Buyer shall be responsible for any escrow and related fees. 3. Approval of this sale shall be contingent upon final approval of the Redevelopment Agency of the City of Chula Vista. 4. Buyer acknowledges having received copy of the Declarations, Covenants, Conditions and Restrictions and all amendments hereto, if any, governing the described property, together with a copy of the By-laws of the Orange Tree Homeowners Association. 5. Buyer and Seller acknowledge receipt of copy of this entire document, which is comprised of three pages. 6. This agreement constitutes the entire agreement. Any amendments to this agreement shall be in writing and shall be signed by both parties. 7. If a lawsuit is filed in connection with this agreement, the prevailing party shall be entitled to be compensated for legal expenses including reasonable attorney's fee. 8. Buyer agrees and acknowledges that they may have made an independent investigation to the extent Buyer deems appropriate, concerning the physical condition (including the existence of hazardous materials), value, development, use, marketability, feasibility and suitability of the subject property, including, but not limited to, land use, zoning and other governmental restrictions and requirements. Buyer is acquiring the subject property "as is", in its present state and condition solely in reliance upon Buyer's own investigation, and no representations or warranties of any kind, express or implied, have been made by the Agency or its representatives, except as expressly set forth in this Agreement. Buyer unconditionally releases Agency from and against any and all liability, both known and unknown, present and future, for any and all damages, losses, claims and costs (including without limitation, the existence of hazardous materials), or the subject property's non- suitability for intended use. With respect to this Section, Buyer waives the provisions of California Civil Code Section 1542 which provides: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor." 8.1.Buyer will accept the subject property, and the matters relating to the subject property listed below, in the present "as is" condition. The matters are: a. Soils~ Topography~ Etc. Soils and geological condition; topography, area and configuration; archeological, prehistoric and historic artifacts, remains and relics; endangered species. b. Utilities~ Schools~ Etc. Availability of utilities, schools, public access, and fire and police protection. c. Assessment Districts. The status and assessments of any and all assessment districts. d. Planning and Zoning. Applicable planning, zoning, and subdivision statutes, ordinances, and regulations. e. Easements and Encroachments. Any easement, license, or encroachment which is not a matter of public record, whether or not visible upon inspection of the subject property; Seller warrants to Buyer that Seller knows of no such easement license or encroachment. f. Other Matters. Any other matter relating to the subject property or to the development of the subject property, including, but not limited to, value, feasibility, cost, governmental permissions, marketing and investment return, except as otherwise expressly provided in this Agreement. 8.2. Real Estate Commissions. Each party warrants to the other that no brokers or finders have been employed or are entitled to a commission or compensation in connection with this trm~saction. Each party agrees to indemnify, protect, hold harmless and defend the other party from and against any obligation or liability to pay any such commission or compensation arising from the act or agreement of the indemnifying party. Dated: ',~/~. ~-~L /9 q ~ .C)~ ,~ Dated: REDEVELOPMENT AGENCY OF T~ CI~ ~/~ ~.~ '{: ~, ~ ~, OF C~A VISTA ~atividad B~elna (~yer) Chris Salomone Community Development Director (LH) H:~Home\Commdev\Stored\OffertoPurchase.doc[12/24/98 (9:04 AM)]