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HomeMy WebLinkAbout2009/01/13 Item 4c:n~v or cnct.n vis'rn~ Redevelopment MEMORANDUM Housing DATE: January 13, 2009 TO: Honorable Mayor & City Cou ci FROM: Jim Sandoval,.Ci y Manage VIA: Gary Halber~puty City Manager/Development Services Director RE: City Council Agenda Item No. 4; Revised Real Property Acquisition Agreement Please find attached for your review and consideration a revised Attachment 3 -Real Property Acquisition Agreement for Item No. 4 on the City Council Agenda for January 13, 2009. The Agreement was revised by the City Attorney's Office based upon further comments received by the Property Owner and in concurrence with staff of the Development Services Redevelopment & Housing Division. The following represents the revisions to the Agreement: • Section 2 -Hazardous Materials (Page 4-9 of the attached Agreement) has been revised to acknowledge receipt and acceptance of a Phase I environmental review of the property conducted for the property in 2007. • Section 4 -Subdivision of Property (Page 4-10 of the attached Agreement) has been revised to reflect the City's authority, as granted by the Seller, and responsibility to subdivide the property in the manner required for its sale. Should you have any questions, please contact Eric Crockett in the Development Services Redevelopment & Housing Division at 619-476-5341. Prepared by: Leilani Hines, Principal Project Coordinator 276 FOURTH AVENUE ~ CHULA VISTA ~ CA 91910 lel 619 691 ~ 504? fax G19~ 585 5698 www. chu lav istaca. gov/curb REVISED ITEM N0.4 ATTACHMENT3 Seller: Castle Park Enterprises, LP APN. 623-030-12 (por.) Title Order No. 148364 (Stewart) REAL PROPERTY ACQUISITION AGREEMENT THIS REAL PROPERTY ACQUISITION AGREEMENT ("Agreement') is entered into this day of 2009, by and between THE CITY OF CHULA V I STA, a charter City organized under the laws of the State of California ("City"), and CASTLE PARK ENTERPRISES, LP a California Limited Partnership ("Seller'), (together, the "Parties") for the acquisition of a portion of Seller's property. WHEREAS, City has offered to buy and Seller has agreed to sell a portion of Seller's real property, commonly known as 275 Orange Avenue, located in the City of Chula Vista, County of San Diego, State of California, currently identified as San Diego County Assessor's Parcel No. 623- 030-12 ("Original Property"). That portion of the Original Property to be transferred pursuant to this Agreement shall be referred to herein as "Property"; and WHEREAS. the Property is more particularly described in the Legal Description, designated as Exhibit "A" and as more particularly shown on Map thereof designated as Exhibit "B,'~ which are both attached to and incorporated in this Agreement by this reference. NOW THEREFORE, the Parties agree as follows: 1. AGREEMENT TO SELL AND PURCHASE City agrees to purchase from Seller and Seller agrees to sell to City, upon the terms and for the consideration set forth in this Real Property Acquisition Agreement, the Property. The Parties agree that the Property shall be conveyed in fee to City clear of all encumbrances except easements of record. 2. HAZARDOUS MATERIALS a.) Obligation to Conduct Environmental Review. Seller, as part of their refinancing in 2007, has conducted a Phase 1 environmental review, which indicates that there are no Hazardous Materials located, on or under the Property. The City has reviewed the information within the Phase I Report and accepts its findings that there are no Hazardous Materials on or under the Property; thus, no Phase Ii environmental review is required. b.) Hazardous Materials: The phrase Hazardous Materials for the purposes of this Agreement shall mean hazardous waste or hazardous substance as defined in any federal, state, or local statute, ordinance, rule, or regulation applicable to the Property, including, without limitation the ,LACouucil. Boards & CommissionsVCouncil & RDA Staff Reports\2009AO1-13-09APalm Park AcquisitionAPalms Real Pmpem' Acquisition Aereement RevisedFlNAL_01-12-09.doc 4-9 Real Property Acquisition Agreement APN 623-030-12 (por.) Pace 2 Comprehensive Environmental Response. Compensation, and Liability Act of 1980. as amended (Title 42 United States Code sections 9601-9675), the Resource Conservation and Recovery Act (Title 42 United States Code sections 6901-6992k), the Carpenter Presley-Tanner Hazardous Substance Account Act (Health and Safety Code sections 25300-2539.15), and the Hazardous Waste Control Law (Health and Safety Code sections 25100-25250.25). "Hazardous Materials" shall also include asbestos or asbestos containing materials, radon gas, and petroleum or petroleum fractions. whether or not defined as hazardous waste or hazardous substance in any such statute, ordinance, rule, or regulation. 3. PURCHASE PRICE The total purchase price payable on the terms set forth in this Agreement shall be the smn of ONE MILLION SEVENTY THOUSAND THREE HUNDRED DOLLARS ($1.070,300) ("Purchase Price") to be paid in the manner set forth below. 4. SUBDIVISION OF PROPERTY Prior to or concurrent with the closing of escrow and the transfer of Property. the City shall ensure that the Original Parcel is subdivided into a legal lots by recording the appropriate documents with the office of the County Recorder. The Seller shall provide the City with any and all authority necessary to act as the Seller's representative for the sole purpose of subdividing the Property in the manner required for the sale of Property under this Agreement. 5. ESCROW AND TITLE INSURANCE City agrees to open an escrow in accordance with this Agreement at Stewart Title Company, located at 7676 Hazard Center Drive, 14th Floor, San Diego, CA 92 ] 08, and deposit a ful ly executed copy of this Agreement no later than two weeks after the approval by the City Council of this Agreement. City agrees to pay all usual and reasonable fees, charges and costs that arise in the escrow upon demand of Escrow Holder. Additionally, City shall pay Seller's cost for obtaining approval from Seller s existing lender, John Hancock Life Insurance Company. for the sale in an amount not to exceed $7.500.00. Seller shall not be liable for any costs or fees in connection with this escrow. This Agreement constitutes the joint escrow instructions of the Parties and Escrow Holder to whom these instructions are delivered is empowered to act under this Agreement. The Parties agree to do all acts reasonably necessary to close escrow as soon as possible, but in all events no later than sixty (60) days after a fully executed copy of this Agreement is deposited into escrow. The terms closing and/or close of escrow as used in this Agreement shall mean the date necessary instruments of conveyance are recorded in the office of the County Recorder. Recordation of instruments delivered through this escrow is authorized if necessary or proper in the issuance of title insurance pursuant to this Agreement. 4-10 Real Propert}~ Acquisition Agreement APN 623-030-12 (por.) Page 3 Seller shall execute and deliver into escrow an executed Grant Deed conveying the Property to City insufficient time to allow for the timely close of escrow. Seller and City agree to deposit with Escrow Holder any additional instruments as may be reasonable and necessary to complete this transaction in a timely manner. All funds received in this escrow shall be deposited with other escrow funds in a general escrow account(s) and may be transferred to any other such escrow trust account in any State or National Bank doing business in the State of California. All disbursements shall be made by wire transfer from such account, unless Seller requests another form of payment. Escrow Holder shall cause to be issued and delivered to City at City's cost, as of the closing date. a CLTA standard coverage policy of title insurance ("Title Policy ~) issued by Stewart Title, with liability in the amount of the Purchase Price. and showing the Property vesting in City, free of all liens, encumbrances, leases and taxes except: (a) All non-delinquent general and special real property taxes for the current fiscal year; and (h) The standard printed exceptions and exclusions contained in the CLTA form policy; and (c) Public and quasi-public utility, public alle}', public street easements and rights of way of record. Escrow Holder is authorised to and shall pay and charge City for any title insurance premium. Escrow Holder is authorized to and shall disburse funds and record the Grant Deed when City and Seller have fulfilled all conditions of the escrow and this Real Property Acquisition Agreement. 6. RESPONSIBILITY OF ESCROW HOLDER Responsibility of Escrow Holder under this Agreement is expressly limited to Paragraph 3 of this Agreement and to its liability under any policy of title insurance issued in regard to this transaction. 7. CONVEYANCE OF INTEREST Seller agrees to convey by Grant Deed to City a fee interest in the Property as contemplated by this Agreement. 4-11 Real Property Acquisition Agreement APN 623-030-12 (por.) Page 4 8. DEPOSIT OF FUNDS City agrees to deposit the Purchase Price of the Property pursuant w Paragraph 2 of this Agreement as well as all other cost as set forth in this Agreement, upon receipt of an estimated closing cost statement. This deposit offends shall be made in sufficient time to allow for closing as set forth in Paragraph 3 of this Agreement. 9. REAL ESTATE COMMISSIONS No brokers or finders have been employed for a fee or are entitled to a commission or compensation in connection with this transaction. 10. MISCELLANEOUS (a) 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. (b) Time of Essence: Time is of the essence in the performance of this Agreement, and the Parties agree that strict compliance by both Parties is required as to any date set out in this Agreement. (c) 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: (i) if delivered by messenger, when delivered; (ii) if mailed. on the third (3`d) business day after deposit in the United States mail certified or registered, postage prepaid, return receipt requested; (iii) telexed, telegraphed or telecopied. six hours after being dispatched if such sixth hour falls on a business day within the hours of 8:00 a.m. through 6:00 p.m. ofthe 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 (iv) if delivered by reputable overnight express courier. freight prepaid, the next business day after delivery to such courier, in every case addressed to the parties to he notified as follows: Richard A. Ryals Real Property Manager City of Chula Vista 276 Fourth Avenue. MS E-100 Chula Vista. CA 91910 4-12 Real Property Acquisition Agreement APN 623-030-12 (por.) Page 5 Castle Park Enterprises. LP c/o Richard Gillett 13919 Strubels Lane Grass Valley, CA 95949 (d) 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 1 imit 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. (e) Amendments or Chances to the Agreement: The terms and provisions of this Agreement shall only be amended or changed pursuant to a written instrument signed by both Parties. (~ 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. (g) Counterparts: This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument. (h) Successors and Assiens: The provisions of this Agreement shall bind the successors and assiens of the Parties. (i) 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. (j) Severance: If any portion of this Agreement shall be declared by any court of competent jurisdiction to be invalid, illegal or unenforceable, such portion shall be deemed severed from this Agreement, and the remaining parts of this Agreement shall remain in full force and effect, as fully as though such invalid. illegal or unenforceable portion had never been part of this Agreement. 4-13 Real Property Acquisition Agreement APN 623-030-12 (por.) Page 6 (k) "1 he City understands and agrees that this Agreement must be approved by Sohn Hancock Life Insurance Company. (i) Seller understands and agrees that this Agreement must be reviewed and considered at a hearing before the Ciry Council of the City of Chula Vista. The City Council has the discretion to approve or disapprove this Agreement or any portions of this Agreement [N WITNESS WHEREOF, the duly authorized representative ofeach Party bas executed this Agreement effective upon the date first written above. Dated: City of Chula Vista ay: Cheryl Cox, Mayor Attest Donna Norris, Ciry Clerk Approved as to form: Bart C. Miesfield, Ciry Attorney Dated: Castle Park Enterprises, LP sy: !~~~~ Richazd illett, President Palms Mobile Estates, Inc. General Partner of Castle Park Enterprises, LP z•d I206-LLb-OES 4-14 94aT t?9 P~e4~?b e6b~ii 60 2T ueC FRLN1 PhgNE ND. = 2703609 Ian. 12 2009 10: 19FY`1 P1 T'd TZ06-LLb-OES 4-15 ~gai i?0 P~e4~?b Real Property Acyuisition Agreement APN 623-030-12 (por.) Pagc 7 Dated: ~ y ..~- Castle Perk Enterprises, LP By: Ed Mateer, Director Palms Mobile Estates, Inc. General painter of Castle Park Enterprises, LP e6brlT 60 2T ~eC CITY COUNCIL & _ REDEVELOPMENT AGENCY AGENDA STATEMENT ~'°'~' ~ ,,;.~, cm of ~-- - cHU~,av~srA JANUARY 13, 2009, Item ITEM TITLE: JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA [A] APPROPRIATING $1,400,000 FROM THE 2008 REDEVELOPMENT AGENCY TAX ALLOCATION REFUNDING BONDS FOR REPAYMENT TO THE CITY OF CHULA VISTA OF THE AGENCY LOAN; [B] APPROPRIATING $1,400,000 FROM THE CITY OF CHULA VISTA GENERAL FUND TO A NEW CAPITAL IMPROVEMENT PROJECT FOR THE PURCHASE OF VACANT PROPERTY LOCATED AT 275 ORANGE AVENUE AND ITS DEVELOPMENT AS A PUBLIC PARK; AND [C] APPROVING THE REAL PROPERTY ACQUISITION AGREEMENT BY AND BETWEEN THE CITY OF CHULA VISTA AND CASTLE PARK ENTERPRISES, L.P. AND ACCEPTANCE OF THE GRANT DEED FOR SAID PROPERTY SUBMITTED BY: DEPUTY CITY MANAGER / DEVELOPMENT SERVICES DIRECTOR REVIEWED BY: CITY MANAGER 4/STHS VOTE: YES ~ NO SUMMARY The City of Chula Vista currently has an opportunity to purchase 1.82 acres of vacant property currently used as open space storage for Palms Mobile Estates at 2'75 Orange Avenue for the purpose of developing an urban pazk within the Southwest community. Staff is recommending that the City purchase the vacant property for its development as a park and execute the Real Property Acquisition Agreement for the subject property. Acquisition costs aze to be financed through those available funds resulting from payment by the Agency on its City loan. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 16 categorical exemption pursuant to Section 15316 [Transfer of Ownership of Land in Order to Create Pazks] of the State CEQA Guidelines. Thus, no further environmental review is necessary. RECOMMENDATION The City Council and RDA adopt the resolution. 4-1 January 13, 2009, Item t~ . Page 2 of 4 BOARDS/COMMISSION RECOMMENDATION Not Applicable. DISCUSSION The City of Chula Vista has a demonstrated commitment to providing a quality pazks and recreation system for its residents. Through the adoption of a Parks and Recreation Master Plan and the Parklands and Public Facilities Ordinance, the City works towazds providing residents with the opportunity for a complete recreational experience and pazks that aze desirable additions to the environment and the health of the community. The Parklands and Public Facilities Ordinance requires new subdivisions to provide three acres of developed pazkland for every 1,000 residents to meet the demands created by these projects. The standard of three acres of pazkland per 1,000 residents is the adopted standazd for the entire City. The City presently enjoys a parkland ratio of over three acres per 1,000 population east of I-805. The area of the City west of I-805 is below the current standard of 3 acres per 1,000 residents. More specifically, the southwest area of the City is significantly below the pazkland ratio of three acres to 1,000 population. There aze currently seven neighborhood parks and five mini parks totaling 63.02 acres of public pazkland in this area. With a predicted 2030 population of 61,800 people (General Plan update 2005), a total of 185.4 acres of available parkland would meet the current standard. As identified during the outreach efforts of Southwest United in Action, places for recreation and the youth are considered a high priority for this community. The City faces significant challenges in developing pazkland in the West with the limited availability of vacant land and competing demands for land and financial resources. Developing creative strategies for delivering park and recreation facilities is essential to implementing the citywide standard for new park development. Proposed Property Acquisition for a Park: A strategy to deliver suitable pazkland in western Chula Vista is directing future park development to under utilized and vacant lands. The City of Chula Vista currently has an opportunity to remove a propem currently used for open storage of recreational vehicles and boats fronting Orange Avenue and providing an urban park in its place. Located in urban areas, where available and affordable land is scarce, urban pazks aze much like mini parks in that they are smaller and contain limited amenities. Urban parks may contain facilities such as public plazas, tot lots, play structures, public art features, sports courts (such as basketball or tennis), walking/jogging trails, dog walk areas, picnic or seating azeas, some grass play area, trees, and other plant materials. Urban parks, unlike mini pazks, may serve more homes because of the higher residential density within their service areas. The site itself is desirable for a park due to its location along a main thoroughfaze in the Southwest and its proximity to higher density residential developments and other supporting uses. Within a half mile radius of the site are four apartment communities totaling 482 units and 4-2 January li, 2009, Item Page 3 of 4 seven mobilehome communities with 927 units. The site is also in close proximity to key neighborhood facilities such as the Southwest Chula Vista Public Librazy (within one block) and three elementary schools (Lauderbach, Montgomery and Loma Verde). The development of a park on this property would benefit the community by meeting the recreational needs of the residents in the Southwest area, removing an existing open space storage use along Orange Avenue and bringing reinvestment back into the area. Site: The site the City wishes to acquire has a total area of approximately 2 acres, and is currently part of the Palms Mobile Estates. The City and the property owner are proposing to create a parcel for creation of a park (1.82) (see Exhibit B). This portion of the property is encumbered by an SDG&E easement with transmission towers on the site. Due to the limited ability to develop the site, the property owner uses the area to provide open space storage of recreational vehicles and boats for mobilehome park residents. The site is currently zoned mobilehome park (MHP), and has a General Plan designation of Open Space on the portion of the site proposed for acquisition. The land use designations would aptly support an urban park on the site. Financing: Staff and the property owner have reached a voluntary agreement as to the purchase price. Staff is recommending purchase of the property for $1,070,300 million plus associated costs and $300,000 to assist in the planning and design of the pazk. This represents a purchase price of approximately $li.50 a square foot. Based upon an assessment by the City's Real Property Manager the purchase price is consistent with fair market value. Currently, the Redevelopment Agency has approximately $1.4 million available from its issuance of the 2008 Tax Allocation Refunding Bonds. Staff is recommending that the Redevelopment Agency appropriate these funds towards payment of its outstanding debt to the City s General Fund. The City would then have $1.4 million available for the acquisition of the vacant property and planning and design of a park. Use of these funds for a capital expenditure will maintain the tax exempt status of the Bonds and make progress towards the park and recreational needs of the Southwest area of the City. Additionally, $375,000 is available under the Memorandum of Understanding with SDG&E dated October 12, 2004 (`MOU"). In accordance with section L12 of the MOU, these funds aze available for use in transmission rights of way as park space in western Chula Vista. Staff is recommending that the subject property and its development as a pazk is the appropriate investment of these funds from SDG&E. Adoption of the Resolution would serve as confirmation by the City Council of an identified site and use of the funds. Upon receipt of these funds from SDG&E, the City would determine that Section L12 of the MOU is satisfied. These funds would serve as seed money towards the actual design and construction of a park that exemplifies sustainable building and maintenance practices. 4-3 January 13, 2009, Item Page 4 of 4 Acquisition of land at this time for future development of a park would allow the City to purchase property while property values are lower and ready to apply for any potential funding programs available for capital projects. In 2009, funding will become available, through the Statewide Park Development and Community Revitalization Act, for the creation of new parks and facilities. 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 which is the subject of this action. FISCAL IMPACT Currently the Redevelopment Agency has approximately $1.4 million available from the issuance of the 2008 Tax Allocation Refunding Bonds. These available funds are recommended for appropriation towazds payment on the Agency`s outstanding City loan. To acquire the subject property for the creation of an urban park and for related planning and design, it is recommended that the City appropriate $1.4 million resulting from the payment towards the Agency's debt obligation for such purpose. Under the terms of the Memorandum of Understanding dated October 12, 2004 (see Section L12) between the City of Chula Vista and SDG&E, $375,000 is to be made available for pazk purposes within its transmission rights of way. Upon the receipt, these funds would serve as seed money towazds the actual design and construction of a park that exemplifies sustainable building and maintenance practices. ATTACILMENTS 1. Project Location Map 2. Legal Description & Plat Map 3. Rea] Property Acquisition Agreement Prepared by: Leilani Hines, A~incipal Project Coordinator, Redevelopment & Housing 4-4 ATTACHMENT 1 PROJECT LOCATION 4-5 ATTACHMENT 2 EXHIBIT "A" LEGAL DESCRIPTION CITY OF CHULA VISTA APN 623-D30-12 FILE NO. PALMPRK THAT PORTION OF PARCEL 3 OF PARCEL MAP N0. 16311, IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID SAN DIEGO COUNTY ON DECEMBER 4, 1990; MORE PARTICULARLY DESCRIBED AS FOLLOWS AND ILLUSTRATED ON EXHIBIT "B" ATTACHED HERETO AND MADE A PART OF THIS DOCUMENT: PARCEL °A" GRANT BEGINNING AT THE NORTHWESTERLY CORNER OF SAID PARCEL 3, BEING ALSO THE NORTHEASTERLY CORNER OF PARCEL l OF SAID MAP; THENCE ALONG THE NORTHERLY 80UNDARY OF SAID PARCEL 3, BEING ALSO THE SOUTHERLY RIGHT-OF-WAY OF ORANGE AVENUE DESCRIBED IN STREET EASEMENT PER DOCUMENT N0. 90-446610 DATED AUGUST 15, 1990, SOUTH 83°01'30" EAST 312.24 FEET; THENCE LEAVING SAID NORTHERLY BOUNDARY SOUTH 47°45'11" EAST 37.58 FEET; THENCE SOUTH 07°49'41" EAST 128.73 FEET; THENCE SOUTH 74°51'14" WEST 418.36 FEET TO THE WESTERLY BOUNDARY OF SAID PARCEL 3, BEING AL50 THE EASTERLY BOUNDARY OF PARCEL 2 OF SAID MAP; THENCE ALONG SAID WESTERLY BOUNDARY NORTH 00°40'43" EAST 78.59 FEET TO THE NORTHEASTERLY CORNER OF PARCEL 2; THENCE LEAVING SAID CORNER NORTH 89°19'17" WEST 45.00 FEET TO THE SOUTHEASTERLY CORNER OF PARCEL 1; THENCE LEAVING SAID CORNER NORTH 00°40'43" EAST 221.98 FEET ALONG THE WESTERLY BOUNDARY OF SAID PARCEL 3, TO THE POINT OF BEGINNING. CONTAINING f.82 ACRES, afORE OR LESS. Dui L.S. 7}49 EXP. 12/}1fp9 ~~Z ~LZ u:.+U' JOSE le~l GOMEZ, P. ~S. 7349 ~ DATE FILE N0. PALMPRK 0: \SOSKPROJ\Oronge Avenue Plv(B LegN (PALMPRK) 11-8-08.d+g 17/OB/ZW8 9: Sb.~09 AM PST 4-6 EXHIBIT °B'° N ~--__ c~-r~r ~r c~-~ui r~ ~>>~-rr~ P.O.B. PARCFI A - 1 - _ ~NGE NOR7HfS£SIERLY R OF PARGiZ 3 _ 1 ._~ _ q VENUE ~~ . _ ~ OR1GlNA ~_ _ _ _ _ '.. ~.- _ _ _ PARCEL ~N 83 01:70' {y 61 -~ .. ._.._. BOUNDARY (N 8376 b2,. 285J ~ ' ~_ _ ~'~-~ '_ .- _._.._ _._BASlS pF W 6!284) LI -.. .BEARINGS ~~ A SB301:70 -_ _._.._.. _ _ _ \ _ ~N~~ ~ m B ~ -~ ~ ~l nm o, I ry N N ry ry ~ 1 ~ W W W l _~ e N LLB ~ N ~ ~~ ~ ~ ~ _ :Q^ II 11 ?~ PARCEL A ~~ I< 1 C[ ~ °~ °a 18z ACRD'S /'sJ L3 \ \c~ \ ~7~ J T~ I ~ 1~ ' / _~ ,. W 41836 ~, "~ ' 7 r i / j ~ (~ j45~ 14 D , / i N S ' _ u PARCEL 3 REMAINDER i' E ~ L 1`~~-~ z3 ez aca.~s DATA TABLE (PARCEL "A J ~ ~(; ~ NO BEARING LENGTH ' " I i F E 37.58 L7 54745"11 i ~ Z Lt' N00'40"43"E 76.59' ~ _ LJ N89't9'77"W 45.00' _..~ - LEGEND ~xA~fnc scALE o ,o 0 8' STREET EASEMENT PER DOC N0. 90-446610 DATED AUGUST 15. 7990 O E E~ T N N M1 C 15 990 AUGUS7 0A ED ~ N0. 9C 4 66 FER DO SCALP' Iw = 80~ © 250' SDG&c' EASEMENT (APPROXIMATE LOCATION) RECORDED SEPTEMBER J0. 1959 IN BOOK 7910. PG 586 O~ O.R. CENTERL7Nf OF 70' SOG&E EASEMENT (APPROXIMATE LOCATION) ` N0. 38066 RECORDED MARCH 4, 1966 F7Le O 5 5' TREE PLANTING & MAINTENANCE EASEMENT 90-a46607 DATED AUGUST l5. 1990 N0 PER DOG O . . STREET EASEMENT 1990 6606 DATED AUGUST 15 R~ LANp SON S S ~ U I S UP , PER DOG. N0. 90-44 ' 5 . G C~ `" s c" 4 f © PRIVATE U71L(TIES EASEMENT 20 ~ i < i ° PER P.M NO 76311 ~ ~ N s LIMITS OF PARCEL "A" GRANT RECORD DATA PER PARCEL MAP N0. 76J77 ' ~ SURYc YED DATA P.O.B. POINT OF BEGINNING `~~(~ CITY OF CHULA VISTA DEPARTMENT OF ENGINEERING \ 276 FOURTH AVENUE ~~ CHULAVISTA,CA97916 JOS L fSGOMEZ,P.L Q~~U (619)476-2301 LIC'N EEXPIRESI2/31 Avenue Pa/cN)Orow \Oesigrt ~FinN Pfo! & Legal Z J,.t ~~ DATE FILE N0. l AAI PSl 4-7 THE ATTACHED 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 COI~NCIL~`~ ,'art C. Miesfeld City Attorney Dated: Real Property Acquisition Agreement Between The City of Chula Vista and Castle Park Enterprises for 275 Orange Avenue, Chula Vista, California Parcel No. 623-030-12 4-8 Seller: Castle Park Enterprises, LP APN. 623-030-12 (por.) Title Order No. 148364 (Stewart) REAL PROPERTY ACQUISITION AGREEMENT THIS REAL PROPERTY ACQUISITION AGREEMENT ("Agreement") is entered into this day of 2009, by and between THE CITY OF CHULA VISTA, a charter City organized under the laws of the State of California ("City"), and CASTLE PARK ENTERPRISES, LP a Califomia Limited Partnership ("Seller"), (together, the "Parties") for the acquisition of a portion of Seller's property. WHEREAS, City has offered to buy and Seller has agreed to sell a portion of Seller's real property, commonly known as 275 Orange Avenue, located in the City of Chula Vista, County of San Diego, State of Califomia, currently identified as San Diego County Assessor's Parcel No. 623- 030-12 ("Original Property"). That portion of the Original Property to be transferred pursuant to this Agreement shall be referred to herein as "Property"; and WHEREAS, the Property is more particularly described in the Legal Description, designated as Exhibit "A" and as more particularly shown on Map thereof designated as Exhibit "B," which are both attached to and incorporated in this Agreement by this reference. NOW THEREFORE, the Parties agree as follows: 1. AGREEMENT TO SELL AND PURCHASE City agrees to purchase from Seller and Seller agrees to sell to City, upon the terms and for the consideration set forth in this Real Property Acquisition Agreement, the Property. The Parties agree that the Property shall be conveyed in fee to City clear of all encumbrances except easements of record. 2. HAZARDOUS MATERIALS a.) Obligation to Conduct Environmental Review. Prior to closing of Escrow, the City shall conduct a Phase I environmental review. If the Phase I environmental review, indicates that Hazardous Materials affect or have significant potential to affect the ability to develop the Property as a park, a Phase II Report shall be prepared. The Phase II Report shall confirm whether potential Hazardous Materials exist. If such Hazardous Materials are found to exist, the City shall ascertain what types of materials are present, whether they exist in quantities that require them to be reported or remediated, and the approximate level of contamination required to be remediated or removed. Upon determining that remediation or removal is required, the C \Dommems and Servings\joycemLLocal 8enings~Temporary Internet PileA0LK12\Palms Red Pro~grry Ac9uisition Ayreemen~ PINAL_I31 ]-08.doc Real Property Acquisition Agreement APN 623-030-12 (por.) Page 2 City shall immediately notify the Seller and provide Seller with a copy of the Phase I and Phase II Report and any related documentation. b.) Hazardous Materials. The phrase Hazazdous Materials for the purposes of this Agreement shall mean hazardous waste or hazazdous substance as defined in any federal, state, or local statute, ordinance, rule, or regulation applicable to the Property, including, without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (Title 42 United States Code sections 9601-9675), the Resource Conservation and Recovery Act (Title 42 United States Code sections 6901-6992k), the Carpenter Presley-Tanner Hazardous Substance Account Act (Health and Safety Code sections 25300-25395.15), and the Hazardous Waste Control Law (Health and Safety Code sections 25100-25250.25). "Hazardous Materials" shall also include asbestos or asbestos containing materials, radon gas, and petroleum or petroleum fractions, whether or not defined as hazardous waste or hazardous substance in any such statute, ordinance, rule, or regulation. c.) Seller to Remediate "De Minimus"Contamination. If City identifies Hazazdous Materials on or under the Property as a result of the Phase II Report conducted pursuant to Section 2 prior to closing of Escrow, Seller shall be obligated, at Seller's expense, to diligently cause the remediation or removal of such Hazardous Materials before the close of escrow, as long as the remediation or removal can be completed for a cost of two hundred fifty thousand dollars ($250,000) or less. If the Seller is required to remediate or remove Hazardous Materials under this section, the close of escrow shall be extended by the amount of time reasonably necessary to complete the remediation or removal, including without limitation preparation of a work plan for the remediation or removal and obtaining all necessary governmental approvals for the work. As long as Seller completes the remediation or removal ofthe identitied Hazardous Materials under this section, City shall have no right to terminate this Agreement on account of its discovery of Hazardous Materials. (i) Remediation in Excess of $250,000. In the event that the remediation or removal of Hazardous Materials cannot be conducted for a cost of $250,000 or less, the Seller shall either (i) complete the remediation or removal of Hazazdous Materials at its own expense regardless of cost or (ii) provide an alternate equivalent, in net usable acres, site acceptable to the City, for use as the park. 3. PURCHASE PRICE The total purchase price payable on the terms set forth in this Agreement shall be the sum of ONE MILLION SEVENTY THOUSAND THREE HUNDRED DOLLARS ($1,070,300) ("Purchase Price") to be paid in the manner set forth below. 4-10 Real Property Acquisition Agreement APN 623-030-12 (por.) Page 3 4. SUBDIVISION OF PROPERTY Prior to or concurrent with the closing of escrow and the transfer of Property, the Original Parcel shall be subdivided into a legal lot by recording the appropriate documents with the office of the County Recorder. 5. ESCROW AND TITLE INSURANCE City agrees to open an escrow in accordance with this Agreement at Stewart Title Company, located at 7676 Hazard Center Drive, 14th Floor, San Diego, CA 92108, and deposit a fully executed copy of this Agreement no later than two weeks after the approval by the City Council of this Agreement. City agrees to pay all usual and reasonable fees, charges and costs that arise in the escrow upon demand of Escrow Holder. Additionally, City shall pay Seller's cost for obtaining approval from Seller's existing lender, John Hancock Life Insurance Company, for the sale in an amount not to exceed $7,500.00. Seller shall not be liable for any costs or fees in connection with this escrow. This Agreement constitutes the joint escrow instructions of the Parties and Escrow Holder to whom these instructions are delivered is empowered to act under this Agreement. The Parties agree to do all acts reasonably necessary to close escrow as soon as possible, but in all events no later than sixty (60) days after a fully executed copy of this Agreement is deposited into escrow. The terms closing and/or close of escrow as used in this Agreement shall mean the date necessary instruments of conveyance are recorded in the office of the County Recorder. Recordation of instruments delivered through this escrow is authorized if necessary or proper in the issuance of title insurance pursuant to this Agreement. Seller shall execute and deliver into escrow an executed Grant Deed conveying the Property to City in sufficient time to allow for the timely close of escrow. Seller and City agree to deposit with Escrow Holder any additional instruments as may be reasonable and necessary to complete this transaction in a timely manner. All funds received in this escrow shall be deposited with other escrow funds in a general escrow account(s) and may be transferred to any other such escrow trust account in any State or National Bank doing business in the State of California. All disbursements shall be made by wire transfer from such account, unless Seller requests another form of payment. Escrow Holder shall cause to be issued and delivered to City at City's cost, as ofthe closing date, a CLTA standard coverage policy of title insurance ("Title Policy") issued by Stewart Title, with liability in the amount of the Purchase Price, and showing the Property vesting in City, free of all liens, encumbrances, leases and taxes except: C \Documev[s and Servings\joycem\Looal Settings\Temporary Inmmel FiledOLK ¢\Palms Real Property Acquisition Agreement FIV AL_IL'1-08 da 4-11 Real Property Acquisition Agreement APN 623-030-12 (por.) Page 4 (a) All non-delinquent general and special real property taxes for the current fiscal year; and (b) The standard printed exceptions and exclusions contained in the CLTA form policy; and (c) Public and quasi-public utility, public alley, public street easements and rights of way of record. Escrow Holder is authorized to and shall pay and charge City for any title insurance premium. Escrow Holder is authorized to and shall disburse funds and record the Grant Deed when City and Seller have fulfilled all conditions of the escrow and this Real Property Acquisition Agreement. 6. RESPONSIBILITY OF ESCROW HOLDER Responsibility of Escrow Holder under this Agreement is expressly limited to Paragraph 3 of this Agreement and to its liability under any policy of title insurance issued in regard to this transaction. 7. CONVEYANCE OF INTEREST Seller agrees to convey by Grant Deed to City a fee interest in the Property as contemplated by this Agreement. 8. DEPOSIT OF FtTNDS City agrees to deposit the Purchase Price of the Property pursuant to Paragraph 2 of this Agreement as well as all other cost as set forth in this Agreement, upon receipt of an estimated closing cost statement. This deposit of funds shall be made in sufficient time to allow for closing as set forth in Paragraph 3 of this Agreement. 9. REAL ESTATE COMMISSIONS No brokers or finders have been employed for a fee or are entitled to a commission or compensation in connection with this transaction. 10. MISCELLANEOUS (a) Entire Agreement: This Agreement represents the entire agreement between the Parties for the purchase of the Property and supersedes all prior negotiations, representations or Q\DOCUments and Settings\j oycemLLoosl Settings\Temporary Internee FileSOLKl3\Palms Reil Property Acquisition Agreement FMAL_I3 V-OB doc 4-12 Real Property Acquisition Agreement APN 623-03D-12 (por.) Page 5 agreements, either oral or written. (b) Time of Essence: Time is of the essence in the performance of this Agreement, and the Parties agree that strict compliance by both Parties is required as to any date set out in this Agreement. (c) 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: (i) if delivered by messenger, when delivered; (ii) if mailed, on the third (3`d) business day after deposit in the United States mail, certified or registered, postage prepaid, return receipt requested; (iii) telexed, telegraphed or telecopied, six hours after being dispatched if such sixth hour falls on a business day within the hours of 8:00 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 (iv) if delivered by 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-100 Chula Vista, CA 91910 Castle Park Enterprises, LP c/o Richard Gillett 13919 Strubels Lane Grass Valley, CA 95949 (d) 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. (e) Amendments or Changes to the Agreement: The terms and provisions of this Agreement shall only be amended or changed pursuant to a written instrument signed by both Parties. (f) Authority to Contract: Each signatory to this Agreement represents and warrants that it has C \Documen[s and Se[ting~joycem\Local SettingsiTemporary Interne[ File90LK12\Palms Real Property Acquisition Agreement FINAL_1-37- O8.doc 4-13 Real Property Acquisition Agreement APN 623-030-12 (por.) Page 6 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. (g) Counterparts: This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument. (h) Successors and Assigns: The provisions of this Agreement shall bind the successors and assigns of the Parties. (i) 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. (j) Severance: If any portion of this Agreement shall be declared by any court of competent j urisdiction to be invalid, illegal or unenforceable, such portion shall be deemed severed from this Agreement, and the remaining parts of this Agreement shall remain in full force and effect, as fully as though such invalid, illegal or unenforceable portion had never been part of this Agreement. (k) The City understands and agrees that this Agreement must be approved by John Hancock Life Insurance Company. (i) Seller understands and agrees that this Agreement must be reviewed and considered at a hearing before the City Council of the City of Chula Vista. The City Council has the discretion to approve or disapprove this Agreement or any portions of this Agreement. IN WITNESS WHEREOF, the duly authorized representative of each Party has executed this Agreement effective upon the date first written above. Dated: City of Chula Vista By: Cheryl Cox, Mayor C:\Doc~men[s and Set[ing9joycem\Local SettingslTemporary In[emet File30LK12\Palms Real Property Acquisition Agreement FINAL_I27- 08.doc 4-14 Real Property Acquisition Agreement APN 623-030-12 (por.) Page 7 Attest: Donna Norris, City Clerk Approved as to form: Bart C. Miesfield, City Attorney Dated: Castle Pazk Enterprises, LP By: Richard Gillett, President Palms Mobile Estates, Inc. General Partner of Castle Park Enterprises, LP Dated: Castle Park Enterprises, LP By: Ed Mateer, Director Palms Mobile Estates, Inc. General Partner of Castle Park Enterprises, LP C:~Documents and Setting9joycem\Local Settingsl7emporary Interne[ FileSOLKl2\Palms Real Property Acquisition Agreement FINAL_I-27- 08.doc 4-15 Real Property Acquisition Agreement APN 623-030-12 (por.) Page 8 C:\Documents and Se[ting~joycem\LOCaI SettingslTemporary In[emet File30LK12\Palms Real Property Acquisition Agreement FINAL_I-27- 08.doc 4-16 RDA RESOLUTION NO. 2009- (COUNCIL RESOLUTION NO. 2009- ) JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA [A] APPROPRIATING $1,400,000 FROM THE 2008 REDEVELOPMENT AGENCY TAX ALLOCATION REFUNDING BONDS FOR REPAYMENT TO THE CITY OF CHULA VISTA OF THE AGENCY LOAN; [B] APPROPRIATING $1,400,000 FROM THE CITY OF CHULA VISTA GENERAL FUND TO A NEW CAPITAL IMPROVEMENT PROJECT FOR THE PURCHASE OF VACANT PROPERTY LOCATED AT 275 ORANGE AVENUE AND ITS DEVELOPMENT AS A PUBLIC PARK; AND [C] APPROVING THE REAL PROPERTY ACQUISITION AGREEMENT BY AND BETWEEN THE CITY OF CHULA VISTA AND CASTLE PARK ENTERPRISES, L.P. AND ACCEPTANCE OF THE GRANT DEED FOR SAID PROPERTY WHEREAS, the Redevelopment Agency of the City of Chula Vista (the Agency) previously issued its $24 million principal amount 2008 Tax Allocation Refunding Bonds for the Merged Chula Vista Redevelopment Project Area (the 2008 Bonds) pursuant to an Indenture of Trust by and between the Agency and U.S. Bank National Association; and WHEREAS, there is approximately $1.4 million in remaining proceeds of the 2008 Bonds available for expenditures; and WHEREAS, the Agency desires to use such remaining proceeds to repay certain loans made by the City of Chula Vista (the City) to the Agency; and WHEREAS, the City should take such actions necessary to ensure expenditure of such proceeds on capital improvement projects to maintain the tax exempt status of the 2008 Bonds; and WHEREAS, due to the limited availability of vacant land and competing demands for land in the developed area of the City west of I-80~, this area of the community is below the current standazd of 3 acres of pazk land per 1,000 residents; and WHEREAS, the City has been afforded the opportunity to purchase 1.82 acres of land currently associated with Palms Mobile Estates located at 275 Orange Avenue in Chula Vista from Castle Park Enterprises L.P. (the Property Owner) as more particularly described in the attached legal description as Exhibit A and plat map as Exhibit B for the purpose of developing a public park; and WHEREAS, the Property is located directly adjacent to the to the Merged Chula Vista Redevelopment project area; and 4-17 WHEREAS, the development of a park on this property would meet the recreational needs of the residents in the Southwest area of the City, remove an existing open space storage use along Orange Avenue and bring reinvestment back into the area to serve as a catalyst for further investment and improvements in the adjacent Project Area; and WHEREAS, the City and Property Owner have agreed to terms and conditions for the acquisition of such property as outlined within the Real Property Acquisition Agreement; and WHEREAS, additionally, under the Memorandum of Understanding executed by and between SDG&E and the City dated October 12, 2004 (the MOU), Section L 12 provides for $375,000 from SDG&E for use in transmission rights of way as park space in western Chula Vista; and WHEREAS, the City believes that the acquisition and development of the Property as a park is an appropriate investment of the available funds resulting from the repayment by the Agency of it's certain City Loan and those funds and services from SDG&E. NOW, THEREFORE, BE IT RESOLVED that the City Council and the Redevelopment Agency of the City of Chula Vista do hereby declare as follows: Section 1. The Chula Vista Redevelopment Agency hereby finds that the use of funds from the 2008 Bonds for repayment by the Agency of certain City loan and the City's use of funds for the acquisition and development of the Property for a public park will benefit the Agency's redevelopment project areas for the reasons set forth above. Section 2. The Chula Vista Redevelopment Agency does hereby amend the FY 2009 Redevelopment Agency Budget to appropriate $1,400,000 from the available fund balance of the 2008 Bonds for repayment of certain City Loan to the Agency. Section 3. The City Council does hereby: [A] Establish a new CIP project - "Palm Park Acquisition" and amend the FY 2009 CIP Budget to appropriate $1,400,000 from the available General Fund balance for acquisition of the Property for development of a public park, including associated escrow and closing costs, and [B] Approve the Real Property Acquisition Agreement by and between the City of Chula Vista and Castle Park Enterprises, L.P., and authorizes the execution of all other implementing agreements and documents, subject to such revisions as may be made reviewed and approved by the City Attorney. Section 4. The City Council does hereby identify the Property as an appropriate use of funds and services available from SDG&E as specified in Section I.12 of the MOU. 4-18 Section 5. The City Council does hereby express that Section I.12 of the MOU shall be satisfied upon receipt of these funds and services from SDG&E. BE IT FURTHER RESOLVED that the City of Chula Vista and the Chula Vista Redevelopment Agency, have made their recommendations, as herein contained, after considering all evidence and testimony presented at its public meeting, which is hereby incorporated into the record. -~ Presented by: ,~ by; Gazy Halbert )~att Miesf~ld " Deputy City Manager/ City Attorney and Agency Counsel Development Services Director 4-19