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HomeMy WebLinkAboutCC Resolution 11344 (Land Purchase Agr; 26 Acres; Gold Hill Grade)RESOLUTION NO. 11344 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL 1) APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE A LAND PURCHASE AGREEMENT FOR CITY ACQUISITION OF 26 ACRES ON GOLD HILL GRADE FOR OPEN SPACE (APN #015-250-28; #015-250-55); 2) AUTHORIZING THE MAYOR TO EXECUTE CERTIFICATES OF ACCEPTANCE OF GRANT DEEDS FOR SAID PARCELS; AND 3) AUTHORIZING THE CITY MANAGER TO EXECUTE ANY AND ALL OTHER DOCUMENTS NECESSARY TO COMPLETE SAID PURCHASE. WHEREAS, Golden Forest, LLC and Dominican Property Company, LLC ("SELLERS" herein), the owners of two parcels of land totaling 26 acres on Gold Hill Grade APN#015-250-28; #015-250-55 ("PROPERTY" herein), desire to sell PROPERTY to the City of San Rafael ("CITY" herein) to be held and used by the CITY solely for open space purposes; and WHEREAS, PROPERTY is located in a hillside area of the CITY and is surrounded on three sides by CITY's Barbier Memorial Park; and WHEREAS, the PROPERTY has been appraised in an MAI appraisal report as having a market value of over $1,400,000.00; and WHEREAS, SELLERS are ready, willing and able to grant PROPERTY to CITY for $690,000.00, free of all encumbrances except for a pipeline easement, a roadway easement and an access easement across the property benefiting adjacent privately owned parcels of land; and WHEREAS, CITY has funds available for this purchase in its 1972 Open Space Land Acquisition Bond Fund, which funds can only be expended for the purchase of open space lands within the CITY; and ORIGINAL WHEREAS, the Marin County Open Space District ("MCOSD" herein) has agreed to contribute $95,000.00 toward the purchase of PROPERTY in exchange for the CITY's grant to MCOSD of a conservation easement over PROPERTY guaranteeing that PROPERTY will remain permanently as open space; and WHEREAS, a group of San Rafael residents have formed the Save Gold Hill Committee ("SGHC" herein) and have raised over $105,000.00 to contribute to CITY toward the purchase of PROPERTY; and WHEREAS, as a result of the contributions of MCOSD and SGHC, the CITY's portion of the purchase price will not exceed $490,000.00. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES RESOLVE AS FOLLOWS: 1. The Council hereby approves a land purchase agreement, a copy of which is attached and incorporated herein, with Golden Forest LLC and Dominican Property Company, LLC, for the purchase of the PROPERTY (APN#015-250-28; #015-250-55) and authorizes the Mayor to execute said agreement. 2. The Council hereby authorizes the Mayor to execute Certificates of Acceptance of the grant deeds for the PROPERTY. 3. The Council hereby authorizes the City Manager to execute any and all other documents necessary to complete the purchase of PROPERTY. 4. The Council hereby finds that this action is a project which will not have any significant effect on the environment (CEQA Guidelines §15061(b)(3)) and is categorically exempt from review under the provisions of the California Environmental Quality Act (CEQA Guidelines §15317). 2 I, Jeanne M. Leoncini, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the San Rafael City Council held on the 16`h day of June, 2003, by the following vote to wit: AYES: Councilmembers: Heller, Miller, Phillips and Mayor Boro NOES: Councilmembers: None ABSENT: Councilmembers: Cohen JEKI�NE M. LEONCINI, City Clerk AN AGREEMENT BETWEEN THE CITY OF SAN RAFAEL AND GOLDEN FOREST, LLC AND DOMINICAN PROPERTY COMPANY, LLC FOR THE PURCHASE OF 26.102 ACRES OF LAND ON GOLD HILL GRADE. THIS AGREEMENT ("Agreement") is entered into as of this'7-/day o , 2003, by and between The City of San Rafael, a municipal corporation duly chartered and existing under the Constitution and laws of the State of California, hereinafter referred to as "City;" and Golden Forest, LLC, a California limited liability company, and Dominican Property Company, LLC, a Delaware limited liability company, hereinafter referred to as "Seller." RECITALS A. Seller owns certain real property (hereinafter referred to as "Property") in the City of San Rafael, County of Marin, State of California, consisting of approximately 26.102 acres of land located in the Gold Hill area. The Property is currently assessed by the Marin County Assessor as APN# 015-250-28 and #015-250-55 and is further described in the Preliminary Title Report issued to City by California Land Title Company dated April 22, 2003 under Order No. 248312 -SD, attached hereto as Exhibit "A" and by reference made a part hereof. B. City desires to purchase from Seller, and Seller is willing to sell to City, the Property on the terms and conditions hereinafter set forth. C. City desires to purchase the Property using City Open Space Bond funds, as well as funds contributed from the Marin County Open Space District, and from the Save Gold Hill Committee. NOW, THEREFORE, IT IS MUTUALLY UNDERSTOOD AND AGREED as follows: -1- COPY 1. TERM. The term of this Agreement shall be for sixty (60) days. Said period shall commence from the date that both City and Seller have signed this Agreement and said date shall be entered herein above as date Agreement is entered into. During said period, this instrument shall constitute an irrevocable offer by Seller to sell and convey the Property to City for the consideration and under the terms and conditions herein set forth. 2. PURCHASE PRICE. The purchase price for the Property as generally described herein, subject to Paragraph 3.1 herein, shall be Six Hundred and Ninety Thousand Dollars ($690,000) cash. In consideration for the City's grant to the Marin County Open Space District of a conservation easement over the Property, the Marin County Open Space District and the Save Gold Hill Committee shall deposit into escrow a minimum of Two Hundred Thousand Dollars $200,000.00 of the purchase price. City shall deposit into escrow the balance of the purchase price up to a maximum of Four Hundred, Ninety Thousand Dollars $490,000.00. City and Seller understand, acknowledge and agree that the failure of the Marin County Open Space District and the Save Gold Hill Committee to timely deposit a minimum of Two Hundred Thousand Dollars $200,000.00 into escrow shall automatically terminate this agreement and neither party shall have any liability or obligation to the other. Any money deposited by City into escrow shall be returned to City and the escrow shall be terminated. 3. CONDITIONS. City agrees to purchase and Seller agrees to sell Property to City upon the satisfaction of the following terms and conditions: 3.1 ESCROW. a) When this Agreement is fully executed, the purchase and sale of the Property generally described herein shall be completed, within sixty (60) days of the date first written above, through escrow No. 248312 SD at California Land Title Company of Marin, 700 Irwin At Second Street, San Rafael, CA 94901 (Title Company). "Close of Escrow" shall be -2- the time the Seller's Grant Deed (as defined below) is filed by the Title Company in the Recorder's Office of the County of Marin. following into escrow. b) Prior to the Close of Escrow, Seller and City shall deposit the 1) Seller shall deposit the Grant Deeds duly executed by the Seller in a form acceptable to City to convey the Property to City. 2) Marin County Open Space District and Save Gold Hill Committee shall deposit a minimum of Two Hundred Thousand Dollars $200,000.00 of the purchase price. 3) City shall deposit up to a maximum of Four Hundred, Ninety Thousand Dollars $490,000.00 of the purchase price for the Property together with enough additional cash to pay City's share of closing costs. 4) Seller and City shall pay expenses of escrow and closing and prorations shall be made as follows: i) City shall pay all fees for the recordation of the Grant Deeds, the premium for the policy of title insurance, documentary transfer taxes, if any, on the Grant Deeds, and all escrow fees. ii) Real Property taxes and assessments shall be prorated for the period due by Seller as of Close of Escrow. 3.2 ESCROW CLOSURE. When the foregoing have been deposited by Seller and City, the full purchase price has been received into escrow, and the Title company is prepared to issue its policy of title insurance in accordance with Paragraph 4.6 hereof, the Title Company shall be directed to: -3- a) Deliver the purchase price to or on the order of Seller. b) Record the Grant Deeds at the Recorder's Office of Marin County and instruct the County Recorder to deliver the Grant Deeds to City. C) Deliver to City the policy of title insurance and a copy of the City's and Seller's escrow closing statements. 3.3 TITLE. a) Title to the Property is to be conveyed by Seller to City through the escrow, free and clear of all liens and encumbrances, taxes and assessments, penalties and costs, leases (recorded and unrecorded), easements, rights-of-way, bonds, and any and all restrictions and reservations of record, other than exceptions to title set forth as Items Numbered 1, 2, 3, 4, 5, 6, 7, 8 and 9 in Preliminary Title Report issued to City by California Land Title Company of Marin dated April 22, 2003 under Order No. 248312 -SD, Exhibit "A", or any updates thereof and that survey prepared by Oberkamper & Associates dated December 7, 2000 and revised June 16, 2001. b) The Title Company shall issue to City a standard California Land Title Association form policy of title insurance for the Property with total liability in the amount of the purchase price, showing title to the Property vested in City of San Rafael, a municipal corporation, and such other exceptions as may be approved by City. The issuance of such title policy to City shall be in full satisfaction of Seller's obligations with respect to title. 4. POSSESSION. City shall be entitled to possession of the Property at "Close of Escrow". Seller shall be entitled to all privileges and benefits of ownership of the Property until "Close of Escrow," and nothing contained herein shall be deemed to restrict or impede Seller's full use and enjoyment of the Property before said date. -4- 5. CITY'S RIGHT OF ACCESS. From and after the execution of this agreement, City shall have the right to access and enter upon the Property for purposes of inspection in connection with this agreement. City shall defend, indemnify and hold Seller harmless from and against all claims, liabilities, actions, mechanics liens and attorneys fees and costs arising out of, or in connection with, City's entry on or inspection of the Property, excluding the discovery of pre-existing conditions. 6. NOTICES. Any notice, request, demand, instruction, or other communication to be given to any party hereunder shall be in writing and delivered as follows: If to Sellers, to: Mr. David Santistevan 4660 La Jolla Village Drive Suite 200 San Diego, CA 92122 If to City, to: The City of San Rafael City Manager P.O. Box 151560 San Rafael, CA 94915-1560 The City of San Rafael Director of Public Works 111 Morphew Street San Rafael, CA 94901 Notice shall be delivered personally, including by messenger or courier, or by certified mail, return receipt requested, postage prepaid. Notices shall be deemed to have been duly given (a) if delivered personally, on the date of delivery; (b) if transmitted by certified mail, on the earlier of (i) the second (2nd) business day after the date of such mailing, or (ii) the date of receipt. The addresses and addressees for the purposes of this paragraph may be changed by giving written notice of such change in the manner provided herein for giving notice. Unless and until such written notice is received, the last address and addressee as stated by written notice, or as -5- provided herein if no written notice or change has been sent or received, shall be deemed to continue in effect for all purposes hereunder. 7. FURTHER ASSURANCES. Seller and City agree that at any time or from time to time after the execution of this Agreement and whether before or after the Close of Escrow they will, upon request of the other, execute and deliver such further documents and do such further acts and things as such party may reasonably request in order to fulfill the purposes of this Agreement. 8. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and inure to the benefit of each of the parties hereto and to their respective successors and assigns. Neither City nor Seller shall assign this Agreement without the prior written consent of the other. Any assignment without such consent shall be null and void. 9. TIME. Time is of the essence of this Agreement and failure to comply with this provision shall be a material breach of this Agreement. Unless previously extended in writing by City and Seller, the escrow shall close on or before the expiration of this Agreement. If the escrow fails to close as provided above, City or Seller may at any time thereafter give written notice to the escrow holder to cancel the escrow and return all money and documents in escrow to their respective depositors. The escrow holder shall comply with the notice without further consent from any other party to the escrow or from the broker. Cancellation of escrow as provided herein shall be without prejudice to whatever legal rights City and Seller may have against each other. 10. COMMISSIONS. Each of the parties hereto represents and warrants that it has not dealt with any sales representative, broker, or finder with respect to this transaction. No commissions will be paid by City in the event that a claim is made by a licensed real estate professional or any other party. W 11. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 12. SELLER'S COVENANT. As a covenant that will survive the close of escrow, Seller warrants as follows: a. Seller is the sole owner of the Property, free and clear to Seller's knowledge, of all liens, claims, encumbrances, easements, licenses, encroachments or rights of way of any nature, other than those disclosed of record by Preliminary Title Report dated April 22, 2003, Order No. 248312 -SD attached as Exhibit "A." b. There are no oral or written leases on all or any portion of the Property exceeding a period of one month, and Seller agrees to hold City harmless and reimburse Seller for any and all of its losses and expenses occasioned by reason of any lease of said Property held by any tenant of Seller for a period exceeding one month. C. To Seller's knowledge, the property contains not less than 26.102 acres of land, comprised of two adjoining parcels, APN# 015-250-28 and #015-250-55. Property. d. To Seller's knowledge, there is no litigation pending respecting the e. To Seller's knowledge, there exist no land subsidence nor drainage problems on the Property. As used in this Agreement, the words "to Seller's knowledge" or words of similar import mean the current actual subjective knowledge of David Santistevan without further investigation or inquiry. 13. HAZARDOUS WASTE. Seller warrants that, during the time in which Seller owned the Property, neither Seller nor, to the best of Seller's knowledge, any third party has used, generated, manufactured, produced, stored or disposed of, on, under or about the Property -7- or transported to or from the Property any hazardous materials. "Hazardous Materials" means any substance defined as "hazardous wastes," "hazardous substances," "hazardous materials," "toxic substances" or words to that effect under any applicable current or future federal, state or local laws or regulations including, but not limited to, petroleum and asbestos. Seller knows of no proceeding or inquiry by any governmental authority (including without limitation, the California State Department of Health Services) with respect to the presence of hazardous materials on, under or about the Property or the mitigation thereof from or to other property. 14. EFFECT OF WAIVER OF PROVISION ON REMEDY. No waiver by a party of any provision of this Agreement shall be considered a waiver of any other provision or any subsequent breach of the same or any other provision, including the time for performance of any such provision. The exercise by a party of any remedy provided in this Agreement or at law shall not prevent the exercise by that party of any other remedy provided in this Agreement or at law. 15. CAPTIONS, JOINT AND SEVERAL LIABILITY, CONTROLLING LAW. The captions heading the various paragraphs of this Agreement are for convenience and shall not be considered to limit, expand, or define the contents of the respective paragraphs. Masculine, feminine, or neuter gender, and the singular and the plural number, shall each be considered to include the other whenever the context so requires. If either party consists of more than one person, each such person shall be jointly and severally liable. This agreement shall be interpreted under California law and according to its fair meaning, and not in favor of or against any party. 16. NO REPRESENTATION REGARDING LEGAL EFFECT OF DOCUMENT. No representation, warranty, or recommendation is made by City, its agents, employees, or attorneys regarding the legal sufficiency, legal effect, or tax consequences of this M Agreement or the transaction, and each signatory is advised to submit this agreement to his respective attorney before signing it. 17. PROPERTY VALUATION. The Property has been appraised in an MAI appraisal, a copy of which Seller will provide to City within fifteen (15) days of the execution of this Agreement. The Seller believes this amount to be the fair market value of the Property. Due to current budgetary constraints, City will pay that purchase price stated in Section 2., above. Accordingly, Seller is contributing to the City the difference between the fair market value and the City's payment, as a charitable contribution. City shall deliver to Seller at close of escrow a statement acknowledging that a) this difference in the fair market value as referenced in Seller's appraisal, and the purchase price is accepted by the City as a charitable contribution, b) the City is not, has not and will not provide to Seller any goods or services in consideration thereof, and c) an IRS Form 8283, "Donee Acknowledgment," executed by City. Seller understands and acknowledges that any tax determination or other consequences of this transaction are the sole responsibility and obligation of Seller; City makes no guarantee in regard thereto. 18. ENTIRE AGREEMENT; AMENDMENTS. This Agreement embodies the entire agreement and understanding between the parties relating to the subject matter hereof and may not be amended, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver, or discharge is sought. This Agreement supersedes all prior discussions, negotiations, agreements, and memoranda whether oral or written. -9- CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of Marin On Thurs. , July 17, 2001efore me, Date personally appeared Albert J. Boro .. w A NA ,�, NANCY HANND L COMM. #1248639 NOTARY PUBLIC•CA-IFORNIA O / MARIN COUNTY 1 \ My Comm. Expkes Foo. 4, 2004 I ss. Nancy Hann, Notary Public Name and Title of Officer (e.g., *Jane Doe, Notary Publicl Name(s) of Signer(s) )(X personally known to me ❑ proved to me on the basis of satisfactory evidence to be the personjW whose name(.s�'�islw subscribed to the within instrumen and acknowledged to me that 1&sWWexecuted the same in /her/ttwrr authorized 6�; capacity(isand" that by is her/thgir signature�n the instrument the person(sj; or the entity upon behalf of which the personp, -- acted, executed the instrument. WITNESS my hand an`+rldd official seal. r �'Sign t re of tJolary ublP ie OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Certificate of Accepptance of Grant of Interest in Peal Property; UN 15-250-55 (Golden Forest, LL Document Date: JU1 V 7. 2003 Number of Pages: -- Signer(s) Other Than Named Above: -- Capacity(ies) Claimed by Signer Signer's Name: Al bert J. Boro KlullT OF SIGNER ❑ Individual 51 MOMere ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Attorney -in -Fact o,l ❑ Trustee tial ❑ Guardian or Conservator ,t XX Other: Mayor Signer Is Representing: City of San Rafael �'i _ _c?_i_ __-_ 1(^: _c:''?J. .,tf. __,C;_.�.1 .__ -"i^___. �.t-. _,-�.:j, - -'T:7r'TJ"'..-.r-•-::;- __. -�•� . _ fir•— r_ �\"��_.=.>�i=i�_`•r—._.—.__•__._ �=.— —.._C; �. ;, _C:c..`�_'. _: ___.. ��•: '(: •_`-_,('t.�.�_ .-- c --i._.^__ _ T-`p:L%ii_tjg`4Cc�'-CEJ . __C^_`. _ . 0 1999 National Notary Association • 9350 De Solo Ave., P.O. Box 2402 • Chatsworth, CA 91313.2402 • www.nationalnolary.org Prod. No. 5907 Reorder. Call Toll -Free 1-90D-976-6827