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HomeMy WebLinkAbout2007/08/14 Item 3 CITY COUNCIL AGENDA STATEMENT ~\f? CITY OF _& CHULA VISTA 08/14/07 Item~ ITEM TITLE: A. RESOLUTION ORDERING THE SUMMARY VACATION OF A PORTION OF L STREET OBTAINED BY THE CITY THROUGH RELINQUISHMENT OF HIGHWAY RIGHT-OF-WAY PER DOCUMENT NO. 74-202931, RECORDED JULY 29, 1974 B. RESOLUTION DECLARING A PORTION OF CITY-OWNED L STREET LYING ADJACENT TO THE PROPERTY LOCATED AT 910 INDUSTRIAL BOULE V ARD AS EXEMPT SURPLUS LAND PURSUANT TO GOVERNMENT CODE SECTION 54221(e)(2)(C) C. RESOLUTION AUTHORIZING THE SALE OF A PORTION OF CITY- OWNED L STREET TO THE OWNER OF THE ADJACENT PROPERTY LOCATED AT 910 INDUSTRIAL BOULEVARD AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE ALL DOCUMENTS NECESSARY TO COMPLETE THE SALE. SUBMITTED BY: REVIEWED BY: CITY ENGINEER CITY MANAGER ,~ 4/5THS VOTE: YES D NO 0 BACKGROUND The owner of property located at 910 Industrial Boulevard has requested to purchase a portion of City-owned slope lying between his property, Interstate 5 to the west, L Street to the north and Industrial Boulevard to the East. A map of the site in question is attached (see Attachment I). This area is a slope and a part of the L Street right-of-way that was acquired by relinquishment from the California Department of Transportation. It currently serves as lateral support for L Street as it rises going west to cross the freeway. In order to sell this land, City Council must first vacate the public access rights and declare the vacated portion as exempt surplus land. 3-1 08/14/07, Item~ Page 2 of 5 ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed actIvIty for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because at this time the action only involves declaring the property as excess land; therefore, pursuant to Section 15060 (c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Although environmental review is not necessary at this time, once a project has been specifically defined, environmental review will be required and a CEQA determination completed prior to commencing any development activities on the subject property. RECOMMENDATION That Council adopt the Resolutions vacating the subject portion of L Street, declaring said portion exempt surplus land, approving its sale, and authorizing the execution of all necessary documents to complete the transaction. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION The portion of L Street that is the subject of this action was originally a part of the adjacent parcel located at 910 Industrial. It was acquired from the Carlins, who still own that parcel, by the California Department of Transportation (CAL TRANS) in 1972 for the construction ofInterstate 5. In 1974, CALTRANS relinquished the subject section of L Street, including the slope areas, in fee to the City. The area that the Carlins (Applicant) now wish to purchase is the slope area, which serves as the lateral support for the street section of L Street. The Applicant's intention is to re-grade the slope and, using terraced retaining walls, generate approximately 2,400 square feet of flat usable area. This area would be used for the development of their property. The total area of the slope they wish to purchase is 7,623 square feet. The only improvement currently on site is a small drainage pipe and culvert. This area is un-landscaped, heavily weeded and not currently maintained by the City. Staff has determined that, in its current condition, the parcel has nominal value because it has no economic use. Additionally, it is currently generating no property tax revenue because it is City-owned. The sale of this parcel would be contingent upon the Applicant meeting a number of conditions. He would be responsible for maintaining the lateral support for L Street and indemnifying the City for any liability. All grading, retaining wall and drainage work would be subject to City approval and would have to be properly permitted, inspected, maintained and landscaped. Finally, if the specified work is not completed or is not completed in full accordance with the conditions of the sale within five years, the property would revert to the ownership of the City and the purchase price would be forfeited. S/d- 08/14/07, Item --=: Page 3 of5 Summary Vacation As stated above, in order to sell this parcel, the City must first vacate the public access rights. Chapter 4, Section 8334(a) of the California Streets and Highways Code states that the legislative body of a local agency may summarily vacate excess right-of-way if it is no longer needed for public street purposes. This is the area that is not needed for right-of-way purposes and staff is requesting that Council vacate it at this time. Pursuant to Section 8346 of the Streets and Highways Code, all potentially affected Utilities have been notified and an Easement for Public Utility Purposes will be reserved across the vacated area. Declarinl! Exempt Surplus Land Once vacated, the parcel needs to be declared exempt surplus land before it can be sold. In order to declare property as exempt surplus land, a finding must be made that it qualifies. Only exempt surplus land may be offered to the adjacent owner without benefit of a public auction. Per Government Code Section 54221 (e) (2) "exempt surplus land" is land that is either: A. Less than 5,000 square feet in area; or B. Less than the minimum legal residential building lot size for the existing or most probable zoning classification, or 5,000 square feet in area, whichever is less; or C. Has no record access and is less than 10,000 square feet in area, is not contiguous to land owned by a state or local agency which is used for park, recreational, open space, or low and moderate income housing purposes and is not located within an enterprise zone pursuant to Section 7073 of the Government Code nor a designated program as defined in Section 7082. The subject parcel falls under Section C and as such qualifies as exempt surplus land. Prior to sale, a second consideration is the sales price. The sale of exempt surplus land can only be made to an adjoining landowner. Prior to commencement of negotiations, the City must establish a Pre-Sale Estimate (PSE) of the fair market value of the exempt surplus land. The PSE forms the basis for negotiating the sale of the subject property, and also serves as an internal control to ensure that the City receives an adequate return. The PSE must take into account the following factors: 1. The original purchase price paid by the City for the subject parcel. 2. The date the City acquired the property. 3. Restrictions and requirements of any source that provided procuring funds. 9/2 08/14/07, Item '3- Page 4 0[5 4, Current market conditions that may affect the fair market value of the property, 5, Current, future and potential holding cost incurred by the City that may include, among other things: a, Maintenance b, Nuisance abatement/removal c, Liability risk/cost Exempt surplus land need not be appraised prior to being offered for sale unless aPSE cannot be readily determined, As detailed above, the property was originally purchased by the State and relinquished to the City at no cost in 1974 in fee, Currently the property generates no revenue for the City and is not being maintained. It has no economic use and will require considerable expense to become viable. Staff has determined that this parcel has a nominal value and that an appropriate purchase price would be $1,00 per square foot or $7,623,00, The Applicant has agreed and offered to purchase the property for this price. The benefit of this sale is that a non-productive piece of property with maintenance issues can be brought back on to the tax rolls, improved, landscaped and maintained at no City cost Additionally, the sale could also playa part in the development of the Applicant's property into a more economically productive site than currently exists. There is a risk that the Applicant could choose not to improve the property. While we do not believe that to be the case, we have protected the City's interest with a reversionary clause that allows us to take the property back in five years if our conditions are not met A Real Estate Purchase and Sale Agreement has been prepared detailing all the terms and conditions of this proposed sale, A copy of this agreement is attached to this report as Attachment 2, Should Council choose to vacate this land, declare it exempt surplus, and accept the Applicant's offer to purchase, this Agreement and a deed would need to be executed to complete the sale. A copy of the deed is attached to this report as Attachment 3, DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property that is the subject of this action. FISCAL IMPACT Funds received from the sale of this land will benefit the City's General Fund in the amount of$7,623, Staff time costs related to the processing of this sale will be borne by the Applicant 3-1 A TT ACHMENTS 1. Site Map 2. Real Estate Purchase and Sale Agreement 3. Grant Deed Prepared b)/: Rick Ryals, Real Property Manager. Engineering Department J :\Engineer\AGENDA \CAS2007\08-14-07\1 industrial excess.doc 3-S --, 08/14/07, Item -= Page 5 of 5 c----' Z ---\ [Il :::u VI ---\ J::> ---\ \N [Il \ 0 lJl 13">' \gO. >V" CO....f\} "e '40 c. Nlr )) >c-....:_ 0,'".-- "'Jio '\:r:'o 'T ;"<-- -< cn\ 0' lJ1: l.JJ; -'\LD ~\:n --J --J , <:P 1'1 .. 'It\t-t- \1.g~i"'6 II S \ ''' \13 '0 11\ ,,:':"'ll 0 \-- -, \ .J " ,,; \ \ ",CrV'S 12 CJ ,,>' ../\ ~\92' :J::::,. U. !ir: :~.o \!\)\- / o \ '0 0 .' .'12 -' : (Xl \" LD \ - b ," , ,CJ 200,' P.O.B. "'ll , \' 00\\ S<;:/o @ IJ ~ ~ (Q)1J (Q) ~ ~ illi ~ (Q)(Q) ~ INDICATES AREA TO BE AREA = 0.175 ACRES CONVEYED DATE: JULY 24. 2007 DRAWN BY: GREG HOPKINS.PLS CITY OF LAND CHULA SALE PLAT GJ , ---:-- ATTACHMENT S52050'30"E 7.07 ' S17052'15"E 21.89' , O 00 II . ,..---' '8 QJC \0' L..----\ cJ-:;D . ,..---' ~ 1"= 50' GREGORY P HOPKINS P.L.S. 7730 VISTA W.O.# RP CCS83: 1804 001 - 5301 RESOLUTION NO. RESOLUTION ORDERING THE SUMMARY VACATION OF A PORTION OF L STREET OBTAINED BY THE CITY THROUGH RELINQUISHMENT OF HIGHWAY RIGHT-OF- WAY PER DOCUMENT NO. 74-202931, RECORDED JULY 29,1974 WHEREAS, in 1972, the California Department of Transportation (CAL TRANS) acquired a portion of the property located at 910 Industrial Boulevard in the City of Chula Vista for the construction of Interstate 5; and WHEREAS, CAL TRANS relinquished this property, now a portion of L Street, as excess right-of-way in fee to the City at no cost, pursuant to Document No. 74-202931, recorded July 29,1974;and WHEREAS, this portion of L Street is adjacent to the property located at 910 Industrial Boulevard; and WH EREAS, this portion of L Strcct is currently slope and is not needed as right-of-way; and WHEREAS, pursuant to Chapter 4, Section 8334(a) of the California Streets and Highways Code, the legislative body of a local agency may, by resolution, summarily vacate cxccss right-of-way ifit is no longer needed for public street purposes. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista as follows: I. That, after considering the facts, it finds that the subject portion of L Street, as more particularly described in a legal description designated as Exhibit '"A" and shown on a plat designated as Exhibit '"B", which are attached to and incorporated into this Resolution, is excess right-of-way and is not required for street or highway purposes. 2. That it orders the summary vacation of the subject portion of L Street as described in Exhibits '"A" and '"B". 3. That it directs the City Clerk to cause a certified copy of this Resolution of vacation, attested by the Clerk under seal, to be recorded without acknowledgement, certificate of acknowledgement, or further proof in the Office of the San Diego County Recorder. 4. That it declares that, upon recordation of this Resolution, the portion of L Street as described in Exhibits '"A" and '"B" is no longer a street or highway. ':)-1 Presented by Scott Tulloch City Engineer Attachments: 1. Exhibit "A", Legal Description 2. Exhihit "B", Plat 1l:I:N( ilN EER\RL:SOS\Rcsos20()7\{)~-14-()7\1. Street vaL (pm) revised by ec.doc '-1:/ ' ,~'--' Ann Moore City Attorney /) .' '8 .:./ . 1 ""-- v~.~,;t~.~ EXHIBIT "A" LEGAL DESCRIPTION "L" Street and Industrial Blvd. Excess Land Being a portion of the West half of the West half of Quarter Section 165 of Rancho de la Nacion, in the City of Chula Vista, County of San Diego, State of California, according to Map No. 166, filed May 11, 1869 in the office of the County Recorder of said County, more particularly described as follows: Beginning at the Southeast corner of Parcel 9 as described on Relinquishment Map No. 21797, filed for record as State Highway Map No. 140 on June 11, 1974, as file number 74-154774 in the Office of the County recorder of said County, said point also being on the Westerly right-of-way line of Industrial Boulevard 80.00 feet wide; thence leaving said Westerly line and along the southerly line of Parcel 1 B as described in that certain Final Order of Condemnation under Superior Court Case No. 308614, recorded May 25, 1970, South 66008'17" West 209.79 feet to the Northwest corner of land as described in a Director's Deed recorded on April 14, 1972 as File No. 92998 of Official Records, said point also being the Southwest corner of said Parcel 9; thence along the Westerly line of said Parcel 9, North 05031'47" West to a point that is 4600 feet distant from and at right angles to the centerline of "L" Street, 80.00 feet wide, as dedicated per document recorded on May 11, 1925 in Book 1073, Page 468 of Official Records; thence along a line parallel to said "L" Street, North 72011'13" East, a distance of 1 92.93 feet; thence leaving said parallel line, South 62050'30" East 7.07 feet to the westerly line of said Industrial Boulevard; thence along said Westerly line, South 17'52'15 East 21.89 feet to the Point of Beginning. Containing 0.175 Acres more or less Reserving unto the grantor and their assigns, an easement for general utility and access purposes over the above described land. The bearings and distances used in the above description are on the California Coordinate System, Zone 6. Multiply all distances used in the above description by 0.9999645 to obtain ground level distances. -:J, 0 :;;-/ c:~~ /? 7""/~ Gregory P. Hopkins, P.L.S. 7730 License expires 12/31/07 $-7-07 Date f----1 Z --I rn -:::0 Vi , --j J:> ---\ ~ rn \ ---- C) Ul EXHIBIT II B II L.J..j ') , ---" 1~"'r ______' ;0 ,"v I'r)....O '\T,:O :- \r \'111"33' AO"l - <: , '. _.e_ ---_:.---- S62" 50' 30"E ( 7.07' o o lf1:, o Ljl: 0, VJ, --->:lD -:Cf1 L:. -J ':-J :::;': cp [T1:; - . / '~'" J> 6" " .L ':,--.1 "'II , \'1 " 0'0 c}o'O S17"52'15"E 21.89 ' '00.00' v---' -Z- o cPC (1)1 L----\ O)J . v---' Y \ 1//= 50 I i1 = {;~2 ~~ INDICATES AREA TO BE CONVEYED ~ AREA = 0.175 ACRES CITY OF LAND GREGORY P HOPKINS P.L.S. 7730 W.O.# DATE: JULY 24. 2007 DRAWN BY: GREG HOPKINS.PLS CHULA SALE VISTA PLAT RP CCS83: 1804 001 5301 RESOLUTION NO. RESOLUTION DECLARING A PORTION OF CITY-OWNED L STREET LYING ADJACENT TO THE PROPERTY LOCATED AT 910 INDUSTRIAL BOULEV ARD AS EXEMPT SURPLUS LAND PURSUANT TO GOVERNMENT CODE SECTION 54221 (e)(2)(C) WHEREAS, the City of Chula Vista is the fee owner of a portion L Street, between Industrial Boulevard and Interstate 5, in the City of Chula Vista, more particularly described in a legal description designated as Exhibit "A" and depicted on a plat designated as Exhibit "B", which are attached to and incorporated into this Resolution (the Property); and WHEREAS, the Property, which is adjacent to the parcel located at 910 Industrial Boulevard (APN 6 I 7-01 0-28), is currently un-usable slope with minor drainage improvements; and WHEREAS, the Property is not needed for the right-of-way for L Street and is no longer necessary for the City's use; and WHEREAS, the City has received an offer to purchase the Property from the owner of the adjacent parcel at 910 Industrial Boulevard; and WHEREAS, any local agency disposing of surplus land shall, prior to disposing of that property, send a written offer to sell or lease the property to various public agencies, pursuant to Government Code section 54222; and WHEREAS, pursuant to Government Code section 54222.3, section 54222 does not apply to the disposal of exempt surplus land by a local agency; and WHEREAS, the Property is exempt surplus land pursuant to Government Code section 54221(e)(2)(C) because it has no record access, is less than 10,000 square feet in area, is not contiguous to land owned by a state or local agency which is used for park, recreational, open- space, or low- and moderate-income housing purposes, is not located within an enterprise zone or a dcsignated program area, and will be sold to an owncr of contiguous land. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of ("hula Vista that it declares that portion of L Street described in Exhibits "A" and "B" and adjacent to the property located at 910 Industrial Boulevard, as exempt surplus land pursuant to Govcrnment Codc Section 54221 (e)(2)(C). .1 3~lI Presented by Scott Tulloch City Engineer Attach ments: I. Exhibit "A". Legal Description 2. Exhibit "B". Plat Approved as to fonn by c-I; , . . I /l.lo~ Ann Moore City Attomey .2 /,i _ .I {). ./ '1 ~_ v I C;','-<ChvL7 EXHIBIT "A" LEGAL DESCRIPTION "L" Street and Industrial Blvd. Excess Land Being a portion of the West half of the West half of Quarter Section 165 of Rancho de la Nacion, in the City of Chula Vista, County of San Diego, State of California, according to Map No. 166, filed May 11, 1869 in the office of the County Recorder of said County, more particularly described as follows: Beginning at the Southeast corner of Parcel 9 as described on Relinquishment Map No. 21797, filed for record as State Highway Map No. 140 on June 11, 1974, as file number 74-154774 in the Office of the County recorder of said County, said point also being on the Westerly right-of-way line of Industrial Boulevard 80.00 feet wide; thence leaving said Westerly line and along the southerly line of Parcel 1 B as described in that certain Final Order of Condemnation under Superior Court Case No. 308614, recorded May 25, 1970, South 66008'17" West 209.79 feet to the Northwest corner of land as described in a Director's Deed recorded on April 14, 1972 as File No. 92998 of Official Records, said point also being the Southwest corner of said Parcel 9; thence along the Westerly line of said Parcel 9, North 05031'47" West to a point that is 46.00 feet distant from and at right angles to the centerline of "L" Street, 80.00 feet wide, as dedicated per document recorded on May 11, 1925 in Book 1073, Page 468 of Official Records; thence along a line parallel to said "L" Street, North 72011 '13" East, a distance of 192.93 feet; thence leaving said parallel line, South 62050'30" East 7.07 feet to the westerly line of said Industrial Boulevard; thence along said Westerly line, South 1 r52'15 East 21.89 feet to the Point of Beginning. Containing 0.175 Acres more or less Reserving unto the grantor and their assigns, an easement for general utility and access purposes over the above described land. The bearings and distances used in the above description are on the California Coordinate System, Zone 6. Multiply all distances used in the above description by 0.9999645 to obtain ground level distances. '3- / '3 ~~~/ 7~/~ Gregory P. Hopkins, P.L.S. 7730 License expires 12/31/07 8- 7-07 Date \,\11" 3'3' 40"[ ~ Z ---1 111 -::0 VI ---1 }::> ---1 ~~ iTl ---- -f::- Ul V1 o lY' " uJ ': ~:l.D -:,CJI b -J~---l ~::CO_ EXHIBIT \'30.5",' (p, ~l i"l2) U -::::L.0 " ,:'\:r :::.:',0v ",,'- '\:r:'oo ....'" - <: => C~I) ~ ~_ INDICATES ARE AREA A TD BE C DA TI, o. nc '"'' em"",, JULY 24 DRAWN BY' . 2007 GREG HO~KINS.PLS CITY OF LAND CHULA SALE II B 1/ ----.-.- ...--- 562'50'30"E 7.07' 517'52'15"E 21.89 ' 50.00' ,..---' -Z cJ CPC IU' L ----\ cJ-)J . ,..---' y I 1 "- 50' GREGORY P.L.S. 7~3~OPKINS VISTA W.Q.# PLAT RP 001 CCS83: 1804 6301 RESOLUTION NO. RESOLUTION AUTHORIZING THE SALE OF A PORTION OF CITY- OWNED L STREET TO THE OWNER OF THE ADJACENT PROPERTY LOCATED AT 910 INDUSTRIAL BOULEY ARD AND AUTHORIZING THE MA YOR AND CITY CLERK TO EXECUTE ALL DOCUMENTS NECESSARY TO COMPLETE THE SALE. WHEREAS, the City of Chula Vista is the fee owner of that certain real property more particularly described as L Street, between Industrial Boulevard and Interstate 5, in the City of Chula Vista, County of San Diego, State of Califomia, according to Relinquishment of Highway Right-of-Way, filed in the Office of the San Diego County Recorder, July 29, 1974 as File Page No. 74-202931; and WHEREAS, a portion of the L Street Relinquishment, adjacent to the property located at 910 Industrial Boulevard (APN 617-010-28) (the Property), is currently un-usable slope with minor drainage improvements and is not needed for the right-of-way for L Street; and WHEREAS, City Council of the City of Chula Vista (City Council) has ordered the summary vacation of the Properly; and WHEREAS, the City Council has declared the Property as exempt surplus land, pursuant to Govemment Code Section 54221(e)(2)(C); and; WHEREAS, the owner of the adjacent parcel has offered to purchase the Property from City; NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it authorizes the sale of a portion of City-owned L Street to the owner of the adjacent property located at 910 Industrial Boulevard and authorizes the Mayor and City Clerk to execute all documents necessary to complete the sale. Presented by Approved as to form by . 1 a. /1 1 ., . ,----((( ./.., . L,,~ Ann Moore City Attomey Scott Tulloch City Engineer Attachments: I. Exhibit "A", Real Estate Sale and Purchase Agreement 2. Exhibit "B", Grant Deed 11:\I:N(j[NFFK.,RES()S\lh:sos2007\OX-14-0T.,L industrial sale revised by ee.doe "6 ---IS THE A TT ACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL ~~ {L /~ Ann Moore City Attorney Dated: & Ii 0 I 0 1 Real Estate Purchase and Sales Agreement Between City of Chula Vista And the Carlin Family Trust Dated May 2, 1983 3~'fc REAL ESTATE PURCHASE AND SALES AGREEMENT This real estate sales agreement [Agreement] is made by and between the City of Chula Vista, a California municipal corporation [Seller], and the Carlin Family Trust dated May 2,1983 [Purchaser]. RECITALS In 1972, the California Department of Transportation [CAL TRANS] acquired the Property from Robert and Esther Carlin [the Carlins] for the construction ofInterstate 5. At that time, the Property was a portion of the parcel located at 910 Industrial Boulevard. The Carlins transferred the parcel located at 910 Industrial Boulevard to Purchaser in 1983. CALTRANS relinquished the Property as excess right-of-way in fee to the City at no cost in 1974. The Property consists of a slope with a culvert and drainage pipe. Purchaser wishes to purchase the Property from Seller for development of the parcel located at 910 Industrial Boulevard. AGREEMENT I. Property Description: Seller agrees to sell and convey to Purchaser, and Purchaser agrees to purchase from Seller, pursuant to the terms and conditions contained in this Agreement, approximately 0.175 acres of property generally consisting of a slope which is bounded by L Street, Industrial Boulevard, Interstate 5, and property owned by the Purchaser, more specifically described in Exhibit "A" and shown on a plat designated as Exhibit "B", which are attached to and incorporated into this Agreement by this reference[the Property]. 2. Effective Date: This Agreement shall be effective on the date which is the later of the two dates on which this Agreement is signed by the Seller and the Purchaser [Effective Date]. 3. Purchase Price: The Purchase Price for the fee simple interest in the Property shall be seven thousand six hundred twenty three dollars ($7,623). Purchaser shall deposit a Page I of8 3-/1 Cashier's Check for the amount of $7,623 made payable to the City ofChula Vista with the City within ten (10) days of the Effective Date of this Agreement. 4. Title: Seller shall convey fee simple title to the Property to Purchaser by Grant Deed in the form attached to this Agreement as Exhibit C [Deed] subject to a non-exclusive drainage easement, existing utility easements, zoning and building laws and ordinances, and acts done or suffered by Purchaser or claims made by, through, or under Purchaser. The Grant Deed shall contain language stating that Purchaser and his/her successors and assigns shall maintain the slope, or any remaining portion of the slope, including any remaining City interest, and the lateral support for L Street to the satisfaction of the City Engineer in perpetuity. The deed shall be delivered to Purchaser fully executed and ready for recordation [Delivery]. 5. Conditions Precedent to Sale of Property: Prior to the conveyance oftitle to the Property the following must occur: a. The excess right-of-way across the Property shall be vacated, reserving an easement for public utility purposes. b. The City Council of the City ofChula Vista shall declare, by Resolution, the Property "Exempt Surplus Land". 6. Environmental Review: Purchaser understands and agrees that the grading permit required for the Improvements, defined in Section 16 of this Agreement, is subject to environmental review pursuant to the California Environmental Quality Act [CEQA]. 7. Title Insurance: If desired, Purchaser may obtain Title insurance for the Property. Purchaser shall pay the standard premium for said Title Insurance. 8. Representations and Warranties: Purchaser acknowledges that Purchaser is purchasing the Property on an as-is basis with no representations or warranties of any kind, expressed or implied, either oral or written, made by Seller or any agent or representative of Seller with respect to any structural or physical condition of the Property, or with respect to the existence or absence of toxic or hazardous materials, substances or wastes in, on, under or affecting the Property. Seller has made and makes no warranty or representation regarding the fitness of the Property, or any portion of the Property, for any particular purpose, quality or merchantability. To the best of its actual knowledge, without any duty of inquiry or investigation, Seller shall disclose to Purchaser in writing any findings of the Property and its operations. Seller is not liable or bound in any manner by any warranties, either expressed or implied, guarantees, promises, statements, representations or information pertaining to the Property made or furnished by any real estate agent, broker, employee, servant or other person representing or purporting to represent Seller. 9. Indemnity: Purchaser releases and agrees to protect, defend, hold harmless and indemnifY Seller and its elected officials, officers, employees, contractors and agents from and against all demands, claims, injury, liability, loss, damage, cost and expense, however same may be caused, including all costs and reasonable attorney's fees in providing the defense to any claim arising therefrom, for any loss of, or damage to property (real and/or personal), for Page 2 of8 ?v/2 personal injury to or death of any person or persons arising out of or occurring by reason of, or any way connected with the purchase or use of the Property from and after the date of Delivery. 10. Indemnity for Lateral Support of L Street: Purchaser releases and agrees to protect, defend, hold harmless and indemnify Seller and its elected officials, officers, employees, contractors and agents from and against all demands, claims, injury, liability, loss, damage, cost and expense, however same may be caused, including all costs and reasonable attorney's fees in providing the defense to any claim arising therefrom, for any loss of, or damage to property (real and/or personal), for personal injury to or death of any person or persons arising out of or occurring by reason of, or any way connected with Purchaser's use or improvement of the Property which in any way affects or impacts the lateral support on L Street. II. Indemnity for Drainage: Purchaser releases and agrees to protect, defend, hold harmless and indemnify Seller and its elected officials, officers, employees, contractors and agents from and against all demands, claims, injury, liability, loss, damage, cost and expense, however same may be caused, including all costs and reasonable attorney's fees in providing the defense to any claim arising therefrom, for any loss of, or damage to property (real and/or personal), for personal injury to or death of any person or persons arising out of or occurring by reason of, or any way connected with Purchaser's use or improvement of the Property which in any way affects or impacts the drainage on or across the Property. 12. Environmental Indemnity: Purchaser shall indemnify, protect, defend and hold the Seller and its elected officials, officers, employees, contractors and agents [Indemnified Parties] harmless from and against any and all damages, losses, liabilities, obligations, penalties, claims, litigation, demands, defenses, judgments, suits, proceedings, costs, disbursements, or expenses (including, without limitation, attorneys' and experts' fees and disbursements) of any kind or of any nature whatsoever [Obligations] which may at any time be imposed upon, incurred by or asserted or awarded against the Seller, effective upon Delivery, as to the Property or any portions of the Property, arising from or out of: the existence, release, presence or disposal on, in, under, about or adjacent of any hazardous materials, hazardous substances, hazardous waste or toxic substances, as defined in all applicable local, state and federal laws and regulations [Hazardous Materials]. (a) Purchaser shall comply with any and all laws, regulations, and/or orders which may be promulgated with respect to the discharge and/or removal of any Hazardous Materials, to payor cause other parties to pay immediately when due the costs of the removal of, or any other action required by law with respect to, any Hazardous Materials, and to keep or cause other parties to keep the Property free of any lien imposed pursuant to any laws, regulations or orders. (b) While Purchaser is the owner of the Property, Purchaser will not use the Property or allow the Property to be used for any activities involving, directly or indirectly, the use, generation, treatment, storage, release or disposal of any Hazardous Materials, except in accordance with law. Page30f8 ?v10 (c) Purchaser shall not install or permit to be installed on the Property friable asbestos or lead-based paint or any substance containing asbestos or lead-based paint and deemed hazardous by federal or state regulations. Purchaser shall be responsible at its expense for compliance with all applicable governmental requirements in the removal of any asbestos and lead-based paint, to the extent that these costs are not paid by the Federal Government. Purchaser agrees to and shall defend, indemnify and hold harmless Seller and its elected officials, officers, employees, contractors and agents from and against all claims, liability, loss, damage, costs or expenses (including reasonable attorney fees and court costs) arising from or as a result of Purchaser's removal or remediation of any asbestos or lead-based paint from the Property, or Purchaser's failure to remove or remediate any asbestos or lead-based paint from the Property. (d) Notwithstanding the payment and performance in full of all of the Obligations, this Indemnity shall not terminate to the extent an environmental claim arises from or relates to any of the following contingencies or events: (i) the Seller has at any time or in any manner participated in the management or control of, taken possession of (whether personally, by agent or by appointment of a receiver), or taken title to the Property or any portion of the Property; (ii) there has been a change, between the date of this Agreement and the date on which all of the Obligations are paid and performed in full, in any Hazardous Materials laws, the effect of which may be to make a lender or mortgagee liable in respect to any of the Obligations, notwithstanding the fact that no event, circumstance, or condition of the nature described in paragraph (i) above ever occurred. (e) This Indemnity shall be binding upon Purchaser, and its successors and assigns, and inure, together with all rights and remedies of Seller pursuant to this Agreement, to the benefit of Seller, its respective elected officials, officers, employees, and agents and any successor to Seller's powers and interests in the Property. None of the rights or obligations of Purchaser pursuant to this Agreement may be assigned or otherwise transferred without the prior written consent of Seller. 13. Release: Effective from and after the Delivery, Purchaser waives, releases, acquits, and forever discharges Seller, its elected officials, officers, employees, and agents to the maximum extent permitted by law, of and from any and all claims, actions, causes of action, demands, rights, liabilities, damages, losses, costs, expenses, or compensation whatsoever, direct or indirect, known or unknown, foreseen or unforeseen, that it now has or that may arise in the future because of or in any way growing out of or connected with this Agreement and the Property (including without limitation the condition of the Property), except matters arising from Seller's fraud or intentional misrepresentation. BUYER EXPRESSL Y WAIVES ITS RIGHTS GRANTED UNDER CALIFORNIA CIVIL CODE SECTION 1542 AND ANY OTHER PROVISION OF LAW THAT PROVIDES A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT BUYER DOES NOT KNOW OR SUSPECT TO EXIST IN ITS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY IT MUST HAVE MATERIALLY AFFECTED ITS AGREEMENT TO RELEASE SELLER. Seller's Initials: Buyer's Initials: Page 4 of 8 3-20 14. Real Estate Commission: Purchaser and Seller represent, warrant and agree that no real estate commissions, finder's fees or broker's fees have been or will be incurred in connection with the sale of the Property. The rights and obligations of Purchaser and Seller pursuant to this section shall survive the Delivery or termination of this Agreement. 15. Default and Remedies: (a) Seller's Default - Purchaser's Remedies: In the event that Seller defaults on its obligations under this Agreement, Purchaser may, at its sole option and as its exclusive remedies for such default either (i) terminate this Agreement by written notice to Seller and the Title Company, if any, or (ii) if Seller's default results from its failure to transfer possession and title to the Property to Purchaser at Delivery, enforce specific performance. (b) Purchaser's Default - Seller's Remedies: In the event Purchaser defaults on its obligations under this Agreement, Seller may, as Seller's sole and exclusive remedy for such default, terminate this Agreement by written notice delivered to Purchaser. 16. Reversion: Purchaser is purchasing the Property for the purpose of grading a . portion of the Property to expand the usable area of the adjacent property, currently identified as San Diego Assessor's Parcel No. 647-010-28 ("Improvements"). If after five years from Delivery, Purchaser or its successor in interest has failed to obtain approval by the City of Chula Vista for the Improvements, or if Purchaser or its successor in interest grades or begins Improvements without the appropriate permits required by the City, the City shall have the right to enter the Property and terminate the grant. In this instance, title to the Property shall revert to the City and all Purchaser's, or its successor's, interest in the Property shall cease. Purchaser or its successor in interest shall not be entitled to the return of any portion ofthe Purchase Price. Purchaser or its successor in interest shall bear any and all costs of completing the reversion of title to the Property to the City. 17. Limited Liability: Any obligations or liabilities of Seller arising by virtue of this Agreement shall be limited to the Property and resort shall not be had to any other assets of Seller. 18. Time of Essence: Time is of the essence to both Seller and Purchaser in the performance of this Agreement, and they agree that strict compliance by both parties is required as to any date set out herein. 19. Notices: All notices, waivers, demands, requests or other communications required or permitted by this Agreement shall, unless otherwise expressly provided, be in writing and be deemed to have been properly given, served and received (a) if delivered by messenger, when delivered; (b) if mailed, on the third (3rd) business day after deposit in the United States mail, certified or registered, postage prepaid, return receipt requested; (c) telexed, tclegraphed or telecopied, six hours after being dispatched if such sixth hour falls on a business day within the hours of8:00 a.m. through 6:00 p.m. of the time in effect at the place of receipt, or at 8:00 a.m. on the next business day thereafter if such sixth hour is later than 6:00 p.m. or (d) if delivered by Page 5 of 8 3-21 reputable overnight express courier, freight prepaid, the next business day after delivery to such courier, in every case addressed to the parties to be notified as follows: Richard A. Ryals Real Property Manager City of Chula Vista 276 Fourth Avenue, MS E-IOO Chula Vista, CA 91910 Bruce M. Carlin, Trustee Carlin Family Trust 957 Tingley Lane San Diego, CA, 92106 With a copy to: Ann Moore City Attorney City ofChula Vista 276 Fourth Avenue Chula Vista, CA 91910 Glen R. Googins Attorney at Law 344 F Street, Suite 100 Chula Vista, CA 91910 20. Interpretation: This Agreement shall be governed by the laws of the state of California. The section headings are for convenience only and are in no way intended to interpret, define or limit the scope or content of this Agreement. If any party is made up of more than one person or entity, then all are identified in the singular in this Agreement. If any right of approval or consent by a party is provided for in this Agreement, the party shall exercise the right promptly, in good faith and reasonably, unless this Agreement expressly gives such party the right to use its sole discretion. The term Business Day shall mean Monday through Friday excluding holidays recognized by the state of California. 21. Entire Agreement: This Agreement represents the entire agreement between the parties for the purchase of the Property and supersedes all prior negotiations, representations or agreements, either oral or written. 22. Amendments or Changes to the Agreement: The terms and provisions ofthis Agreement shall only be amended or changes pursuant to a written instrument signed by both the Seller and the Purchaser. Page 60f8 3-22- 23. Authority to Contract: Each signatory to this Agreement represents and warrants that it has the authority to enter into this Agreement and that this Agreement shall be binding upon and inure to each party, their officers, directors, trustees and representatives upon ratification and/or approval by their respective governing bodies. 24. Successors and Assigns: The provisions of this Agreement shall bind the successors and assigns of the parties, except for a bona fide purchaser for value, not affiliated in any way with the Purchaser. 25. Assignment: This Agreement may not be assigned whole or in part by Purchaser without the prior written consent of Seller, provided, however, this Agreement may be assigned, upon written notice to the City, to one or more affiliates of Purchaser so long as the parties responsible for the management and control of the Purchaser and such affiliate(s) are identical or substantially the same. 26. Attorney Fees: In the event of any action or proceeding to enforce a term or condition of this Agreement, any alleged disputes, breaches, defaults, or misrepresentations in connection with any provision of this Agreement or any action or proceeding in any way arising from this Agreement, the prevailing party in such action, shall be entitled to recover its reasonable costs and expenses, including without limitation reasonable attorney fees and costs of defense paid or incurred in good faith. The "prevailing party" for the purposes of this Agreement, is that party who obtains substantially the result sought, whether by settlement, dismissal, or judgment. 27. City Council Approval Required: Purchaser understands and agrees that this Agreement must be reviewed and considered at a hearing before the City Council. Purchaser also understands that prior to the execution of this Agreement by Seller, the City Council must approve the vacation of public access rights across the Property pursuant to the California Streets and Highways Code and must determine and declare the Property as exempt surplus land as provided for in California Government Code. The City Council has the discretion to approve or disapprove the vacation, the surplus land finding and/or this Agreement or any sections thereof. This Agreement is executed by the Seller, pursuant to City Council Resolution No. , and by Purchaser, acting by and through its lawfully authorized officer. SELLER: THE CITY OF CHULA VISTA Date: By Cheryl Cox Mayor Page70f8 3~23 PURCHASER: CARLIN FAMILY TRUST dated May 2, 1983 Date: Bruce M. Carlin, Managing Trustee APPROVED as to form: By Ann Moore City Attorney Exhibit A: Legal description of the Property Exhibit B: Plat Map of the Property Exhibit C: Form of Grant Deed J:\Attomey\ELISA\AGREEMENTS\Carlin Industrial~L Real Estate Purchase and Sale Agreement FINAL FINAL 8-9-08.doc Page 8 of 8 3-24 08/09/2007 14:26 F,~, 6194251357 MMS Design Assoc. PURCHASER: CARLIN FAMILY TRUST dated May 2, 1983 Date:~~ 101 =~'- ~. Co- iL. '" - -......... Bruce M. Carlin. Managing Trustee APPROVED as to form: By Ann Moore City Attomey Exhibit A: Legal description of the Property Exhibit B: Plat Map of the Property Exhibit C: Form of Grant Deed Page8of8 3-ZS ~002 EXHIBIT "A" LEGAL DESCRIPTION "L" Street and Industrial Blvd. Excess Land Being a portion of the West half of the West half of Quarter Section 165 of Rancho de la Nacion, in the City of Chula Vista, County of San Diego, State of California, according to Map No. 166, filed May 11, 1869 in the office of the County Recorder of said County, more particularly described as follows: Beginning at the Southeast corner of Parcel 9 as described on Relinquishment Map No. 21797, filed for record as State Highway Map No. 140 on June 11, 1974, as file number 74-154774 in the Office of the County recorder of said County, said point also being on the Westerly right-of-way line of Industrial Boulevard 80.00 feet wide; thence leaving said Westerly line and along the southerly line of Parcel 1 B as described in that certain Final Order of Condemnation under Superior Court Case No. 308614, recorded May 25, 1970, South 66008'17" West 209.79 feet to the Northwest corner of land as described in a Director's Deed recorded on April 14, 1972 as File No. 92998 of Official Records, said point also being the Southwest corner of said Parcel 9; thence along the Westerly line of said Parcel 9, North 05031'47" West to a point that is 46.00 feet distant from and at right angles to the centerline of "L" Street, 80.00 feet wide, as dedicated per document recorded on May 11, 1925 in Book 1073, Page 468 of Official Records; thence along a line parallel to said "L" Street, North 72011' 13" East, a distance of 192.93 feet; thence leaving said parallel line, South 62050'30" East 7.07 feet to the westerly line of said Industrial Boulevard; thence along said Westerly line, South 1 r52'15 East 21.89 feet to the Point of Beginning. Containing 0.175 Acres more or less Reserving unto the grantor and their assigns, an easement for general utility and access purposes over the above described land. The bearings and distances used in the above description are on the California Coordinate System, Zone 6. Multiply all distances used in the above description by 0.9999645 to obtain ground level distances. ~~~ / 7,,4./~ Gregory P. Hopkins, P.L.S. 7730 License expires 12/31/07 $- 7-<77 Date 3-2b \)J \ N -.J EXHIBIT 1'30.6') LD ---::: " :''\j CQ.:'ev , AO"[ \'\1 r Yo fY");'0 '<:;ria ,''\j ,:t-- <: r--' (J); 0: LJl' " Z --\ [Il ~ cJ! --\ J:> --\ [Il ~\LD -\Ol b:. -j'-J :::: CO {T1\ - -f B l ~~/l:~~;' ,..~ . \.. II S \ /..... \\1 0 ". II \ _//~.---- II 'N 0 \..- ...... ,\ 0 __.'/'--0,\'\ ....GI-l.Sl7- \00.'30'/ . ..' .~ "C j~ ;;'6017."\\' \O,,,c.,, 1'3,:f!: cD" ~0'3' ~' 7- P.O.B. o '0' -:0 Ul ,,'\\ , ,1 :0 \I ' "0 scc/a V' @ 1] ~ ~ @1] (Ei) ~ ~ ~j ~ @((;J) ~~~ INDICATES AREA TO BE CONVEYED ~~ AREA = 0.175 ACRES DATE: JULY 2'1. 2007 DRAWN BY: GREG HOPKINS,PLS CITY OF LAND CHULA SALE PLAT ......-. II B II S62"50'30"E 7.07' S17"52'15"E 21.89' \10.00' ,..--' ~ cPC:::- \<J'> L.......\ cJ")J . ,..--' ~ 1 1/= 50 I GREGORY P HOPKINS P.L.S. 7730 VI S T A W.O.# RP 001 CCS83: 180L! - 6301 Recording requested by and please return to: Carlin Family Trust dated May 2, 1983 957 Tingley Lane San Diego, CA 92106 D D Assessor's Parcel Number Chula Vista CIP File No: RP-001 GRANT DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the City 'of Chula Vista, a municipal Corporation, grants to the Carlin Family Trust dated May 2, 1983, that certain real property located in the City of Chula Vista, County of San Diego, State of California, more particularly described as follows: See Legal Description designated as Exhibit" A" attached to and incorporated into this Grant Deed. As more particularly shown on a Map designated as Exhibit "B" attached to and incorporated into this Grant Deed. RESERVING therefrom to Grantor of the parcel ofland described in this Grant Deed, their successors or assigns, a non-exclusive easement for drainage purposes (Drainage Easement) on, over, under, across and through (a) that portion of the property described in this Grant Deed upon which a concrete drainage culvert (Drainage Improvement) has been constructed; (b) two feet on either side of the Drainage Improvement for maintenance and repair purposes; and (c) over such area as is necessary and appropriate for reasonable access to the Drainage Easement for maintenance and repair purposes. Upon written approval of the City Engineer, this Drainage Easement may be relocated or modified in order to accommodate a reconstruction or redesign of the Drainage Improvement. The Drainage Easement may be vacated upon a Resolution by the City Council of the City of Chula Vista fmding that the Drainage Improvement is no longer necessary at this location. Grantee and Grantee's successors and assigns shall maintain in perpetuity the slope, or any remaining portion of the slope, including any remaining interest of the Grantor, and the lateral support for L Street to the satisfaction of the City Engineer of the City ofChula Vista. 3~22 Signed this day of , 2007 (Notary Acknowledgment required for each signatory.) J:\Attomey\ELISA\L Industrial Grant Deed FINAL 8~9.07.doc ~~ZC,