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HomeMy WebLinkAboutAgenda Packet - March 26, 2007 - CCAGENDA ADJOURNED REGULAR MEETING OF THE REDEVELOPMENT AGENCY AZUSA LIGHT AND WATER MONDAY, MARCH 26, 2007 729 NORTH AZUSA AVENUE 6:30 P.M. or immediately following the Utility Board Meeting PRELIMINARY BUSINESS • Call to Order • Roll Call PUBLIC PARTICIPATION - Please note that public comments are welcomed by recognition of the Mayor. A. REDEVELOPMENT AGENCY AGENDA ITEM PURCHASE AGREEMENT FOR THE ACQUISITION OF THE REAL PROPERTY LOCATED AT 805 NORTH DALTON AVENUE. RECOMMENDED ACTION: Adopt a Resolution No. 07-1110, approving the Purchase and Sale Agreement for the acquisition of the property located at 805 North Dalton Avenue, commonly known as Los Angeles County Assessor's Parcel No. 8608- 027-009. It is further requested that the Agency Board approve an appropriation for this property acquisition. B. CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Gov. Code Sec. 54946 (ah Case name: City of Azusa Redevelopment Agency v. Hagopkarakin Kouyoumdjian, Christiane Mary Kouyoumdjian, Lyle A. Moritz and Mary A. Moritz - Los Angeles Superior Court Case No. BC362770 C. ADIOURNMENT 1. Adjourn to the Adjourned Regular Meeting of the City Council at the Azusa Auditorium. "M comp/lance with the Americans with Disabilities Act, ifyou need special assistance to participate in a city meeting, please contact the City Clerk at 616-812-5229. Notification three (3) working days prior to the meeting or time when special services are needed will assist staff in assuring that reasonable arrangements can be made to provide access to the meeting. " 9 TO: FROM: VIA: DATE: AGENCY AGENDA ITEM HONORABLE CHAIRPERSON AND MEMBERS OF THE AGENCY BOARD BRUCE COLEMAN, ECONOMIC/COMMUNITY DEVELOPMENT DIRECTOR F. M. DELACH, EXECUTIVE DIRECTOR MARCH 19, 2007 o F' SUBJECT: PURCHASE AGREEMENT FOR THE ACQUISITION OF THE REAL PROPERTY LOCATED AT 805 NORTH DALTON AVENUE RECOMMENDATION It is recommended that the Agency Board adopt a resolution approving the Purchase and Sale Agreement for the acquisition of the property located at 805 North Dalton Avenue, commonly known as Los Angeles County Assessor's Parcel No. 8608-027-009. It is further requested that the Agency Board approve an appropriation for this property acquisition. BACKGROUND The Redevelopment Agency of the City of Azusa ("Agency") entered into a Memorandum Of Understanding ("MOU") with Watt Genton Associates, LP ("WGA" or "developer") for the development of a master planned civic and transit center oriented development entitled "Downtown North." The proposed acquisition is within the Downtown North Project boundaries. The Downtown North development site includes an area east of Azusa Avenue, north of Foothill Boulevard, south of 9`h Street and the east side of Dalton Avenue. The site currently includes a variety of preexisting nonconforming uses and older buildings in need of reinvestment. The Site consists of Agency -owned land, light industrial, and underutilized commercial properties. Redevelopment of these properties for a mixed use project will assist the Agency in its goal to revitalize the Merged Central Business District and West End Redevelopment Projects ("Project Area"), improve the housing supply in the Project Area and assist the City in revitalizing the downtown to be a transit village that is more prosperous, walkable, healthy and economically viable. The objective of the Agency is to redevelop Downtown North into a mixed use development comprised of retail, entertainment, outdoor dining, residential, office, a new public library and public space within a transit village design concept. �l of real property located at 805 North Dalton Avenue in Azusa is situated within the Central District Redevelopment Area. Assemblage of this parcel with adjoining parcels could produce cel available for the proposed Downtown Northproje t. The Honorable Chairman and Members of the Agency Board Subject: Acquisition of 805 North Dalton Avenue March 19, 2007 Page 2 of 2 At the request of the Agency, Boznanski &Company appraised the property on February 13, 2007, and the appraised value was determined to be $700,000. Agency staff made the formal Offer to Purchase for the appraised value of the property: The property owners, Lyle A. & Mary A. Moritz, Trustees ('Seller") of the subject property, have accepted, subject to Agency Board approval, for a purchase price of $700,000 (Exhibit A - Purchase Agreement). The purchase price includes, without limitation, full payment of just compensation and any relocation benefits, leasehold interest, goodwill, furniture, fixtures and equipment, attorneys' fees, costs, interest, and damages in complete settlement of all claims (known and unknown), causes of action and demands of Seller against the Buyer because of Buyer's purchase of the Property, and for any and all claims in complete settlement of all claims (known and unknown) arising from or relating to the purchase and sale of the property. The property owner also operates the business, Moritz Construction, which occupies the site. The Agency is presently negotiating the lease of the site by Moritz Construction. Agency staff believes that acquisition by the Agency of the property located at 805 North Dalton Avenue for assemblage and redevelopment is a public use, that the property located at 805 North Dalton Avenue is necessary for such redevelopment and/or assemblage and that the assemblage project is designed in a manner consistent with the greatest public good and least private injury. The rights and interest of the purchase agreement is assigned to the Redevelopment Agency of the City of Azusa ("Buyer"). Therefore, the Agency will take the lead on the acquisition of the property: On January 16, 2007 the Agency Board entered into a Reimbursement Agreement with WGA. The Reimbursement Agreement identified that with regard to the any Agency costs relative to legal services and consultants engaged by the Agency for WGA project related acquisition, relocation, appraisals will be reimbursed by WGA. The Agency must make a demand for said reimbursement at the time the costs are incurred. FISCAL IMPACT The cost for this acquisition is $700,000 excluding escrow costs (title report, etc). The source of funding for the acquisition will ultimately be provided by WGA as per the Reimbursement Agreement. The Agency will submit a demand to WGA for reimbursement at the time the funds are expended. The Agency has sufficient revenue to proceed with the acquisition, subject to Agency Board approval. J EXHIBIT B RESOLUTION NO. A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA APPROVING A PURCHASE AGREEMENT FOR THE PURCHASE OF CERTAIN REAL PROPERTY GENERALLY LOCATED AT 805 NORTH DALTON AVNUE WITHIN THE MERGED CENTRAL BUSINESS DISTRICT AND WEST END REDEVELOPMENT PROJECT AREA THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA DOES RESOLVE AS FOLLOWS: SECTION 1. The Redevelopment Agency ("Agency") of the City of Azusa does hereby find, determine and declare as follows: A. The Agency has received an offer to purchase certain improved real property generally located at 805 North Dalton Avenue ("Property"); B. The Property is located in the Agency's Merged Central Business District and West End Redevelopment Project Area (the "Project Area") under the Redevelopment Plan of the City of Azusa; C. The Agency desires to purchase the Property on the terms and conditions set forth in the Purchase Agreement; D. The Agency is authorized to.acquire the Property for purposes of redevelopment pursuant to Section 33391 of the Community Redevelopment law (Health &Safety Code §33000, et seq); E. The acquisition of the Property will further the health, safety and general welfare of the residents of Azusa; F. This agreement pertains to and affects the ability of the Agency to finance its activities and carry out its statutory obligations and the goals of the Redevelopment Plan. It is intended to be a contract within the meaning of Government Code §53511; and G. In taldng this action, the Agency has determined that the acquisition of the property is not a "project" under the provisions of the California Environmental Quality Act, the California Environmental Quality Act Guidelines (Title 14 C.C.R. § 15004) and the City of Azusa's environmental procedures. SECTION 2. Based on all of the foregoing, the Redevelopment Agency of the City of Azusa hereby approves that certain Purchase Agreement for the purchase of property generally located at 805 North Dalton Avenue in substantially the same form as the agreement attached hereto as Exhibit "A" and incorporated herein by reference. The Agency further authorizes the Chairperson of the Agency to execute said agreement in substantially the same form as depicted on Exhibit "A". SECTION 3. A copy of the Purchase Agreement, executed by the Chairperson and the Seller of the Property shall be kept on file at City Hall. Staff is directed to do all that is necessary to effectuate the intent of the Agreement and consummate the purchase of the Property. SECTION 4. The Agency Secretary shall certify the adoption of this Resolution. EXHIBIT B PASSED AND APPROVED this day of 2007. Chairman 1 HEREBY CERTIFY that the foregoing Resolution was duly passed, approved, and adopted by the Board of Directors of the Redevelopment Agency of the City of Azusa, at a regular meeting of said Board held on the _ day of , 2007, by the following vote of the Board: AYES: BOARDMEMBERS: NOES: BOARDMEMBERS: ABSTAIN: BOARDMEMBERS: ABSENT: BOARDMEMBERS: Secretary AGREEMENT FOR PURCHASE AND SALE AND JOINT ESCROW INSTRUCTIONS This AGREEMENT FOR PURCHASE AND SALE AND JOINT ESCROW INSTRUCTIONS ("Agreement") is entered into by and between THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA, a public body, corporate and politic ("Buyer"), and LYLE A. & MARY A. MORITZ, TRUSTEES OF THE MORITZ REVOCABLE MARITAL TRUST NO. 1, UNDER AGREEMENT DATED JUNE 29, 1989, ("Seller"). Buyer and Seller are sometimes individually referred to herein as "Party" and collectively as "Parties." The Parties hereto have executed this Agreement on the dates set forth below next to their respective signatures. This Agreement shall be effective as of the date, following all legally required notices and hearings, this Agreement has been approved by Buyer's governing board or its delegated representative and signed by all Parties ("Effective Date"). RECITALS A. Seller hereby represents and warrants to Buyer that Seller holds fee title to that certain real property located at 805 North Dalton Avenue, Azusa, California, commonly known as, Los Angeles County Assessor's Parcel Number 8608-027-009 and more fully described in EXHIBIT A attached hereto and incorporated herein by reference (the "Property"). B. Buyer desires to purchase the Property from Seller and Seller desires to sell the Property to Buyer upon the terms and provisions set forth herein. The term "Property" as used herein shall include all of Seller's right, title and interest in and to any and all improvements, fixtures, rights-of-way, utility rights, entitlements, claims or other benefits in any way connected with the Property. C. The sale of the Property as provided in this Agreement is being conducted under the threat of condemnation. As a California redevelopment agency, the Agency is authorized by statute and its redevelopment plan to acquire real and personal property needed for its redevelopment purposes by condemnation, subject to the Agency's compliance with all substantive and procedural prerequisites thereto, including the provisions of California Code of Civil Procedure Section 1230.010, et seq. (the "Eminent Domain Law"). D. The Property is currently occupied by the Seller. As more specifically hereinafter described, Buyer and Seller shall enter into the Lease described in Section 5.3, effective upon the Close of Escrow, providing for Seller's continued use and occupancy of the Property for a term not to extend beyond December 31, 2007. NOW, THEREFORE, in consideration of the above facts and for the covenants and agreements contained herein, the Parties hereto agree as follows: RVPWKRAND0LPM728895.1 1 TERMS PURCHASE AND SALE. 1.1. Property. Seller agrees to sell the Property to Buyer, and Buyer agrees to purchase the Property from Seller, upon the terms and conditions set forth herein. 1.2. Purchase Price. The total purchase price for the Property is Seven Hundred Thousand and No/100 Dollars ($700,000) ("Purchase Price"), which includes just compensation for the Property and payment for, without limitation, any relocation benefits, goodwill, furniture, fixtures and equipment, attorneys' fees, costs, interest, and damages in complete settlement of all claims (known and unknown), causes of action and demands of Seller against the Buyer because of Buyer's purchase of the Property, and for any and all claims (known and unknown) arising from or relating to the purchase and sale which is the subject of this Agreement. 1.3. Payment of Purchase Price. At Close of Escrow (defined below), Buyer shall pay to Seller through escrow the Purchase Price, payable in cash, by cashier's or certified check or by wire transfer. 1.4. Withholding Requirements per R&T 18662 and 18668. The Parties acknowledge that pursuant to California Revenue and Taxation Code Sections 18662 and 18668, Buyer is required to withhold from funds otherwise payable to Seller at Close of Escrow an amount equal to 3 1/3% of the portion of the Purchase Price allocated to just compensation for the Property, or, if applicable, the appropriate amount of capital gain, and submit such amount to the California Franchise Tax Board, unless Buyer is relieved of such withholding requirements or a different withholding requirement applies under the provisions of said Sections 18662 and 18668. 2. ESCROW. 2.1. Opening of Escrow. Within five (5) business days following the Effective Date, Seller and Buyer shall open an escrow ("Escrow") for the conveyance of the Property with Land America Southland Title ("Escrow Holder"). For purposes of this Agreement, Escrow shall be deemed open on the date Escrow Holder receives either an original or a copy, at Escrow Holder's discretion, of this Agreement, fully executed by the Parties ("Opening of Escrow"). Escrow Holder shall notify Buyer and Seller, in writing, of the date Escrow is opened. 2.2. Escrow Instructions. This Agreement constitutes the joint basic escrow instructions of Buyer and Seller for conveyance of the Property. Buyer and Seller shall execute, deliver and be bound by any reasonable or customary supplemental or additional escrow instructions ("Additional Instructions") of Escrow Holder or other instruments as may be reasonably required by Escrow Holder in order to consummate the transaction contemplated by this Agreement. Any such Additional Instructions shall not conflict with, amend or supersede any portions of this Agreement unless expressly consented or agreed to in writing by Seller and Buyer. In the event of any conflict or any inconsistency between this Agreement and such Additional Instructions, this Agreement shall govern unless otherwise specifically agreed to in writing by the Parties. RVPUBUCRANDOLPH\728895.1 2 2.3. Close of Escrow. For purposes of this Agreement, "Close of Escrow" or "Closing" means the recordation of the grant deed conveying the Property to Buyer ("Grant Deed") in the Official Records of Los Angeles County, California, and the disbursement of funds and distribution of any other documents by Escrow Holder, all as described herein. Close of Escrow shall occur when all conditions precedent thereto as set forth in this Agreement have been satisfied or waived in writing by the Parry for whose benefit they exist, but no later than May 15, 2007 ("Closing Date"), provided that Seller and Buyer may, but shall not be obligated to, close Escrow upon such earlier date as the Seller and Buyer mutually agree to in writing. Buyer and Seller may mutually agree to change the Closing Date by joint written notice to Escrow Holder. The Closing shall be conditioned upon satisfaction, or waiver by the Party for whose benefit the condition exists, of all conditions precedent thereto. In the event Escrow is not in a condition to close by the Closing Date for any reason other than the uncured breach of either Buyer or Seller, then any Party who is not then in default of the terms of this Agreement may terminate this Agreement as provided in Section 6.1. If no notice of termination as provided in Article 6 is received by Escrow Holder, Escrow Holder is instructed to proceed with Close of Escrow as soon as possible. 2.4. Costs of Escrow. Because of Buyer's status as a public entity, pursuant to California Revenue and Taxation Code Section 11922, no documentary transfer tax will be payable with respect to the conveyance contemplated by this Agreement. Similarly, pursuant to California Government Code Section 27383, no recording fees will be payable with respect to the recording of the Grant Deed. Buyer shall pay all Escrow fees, recording fees and notary fees attributable to the conveyance of the Property and all other costs of processing Escrow. Buyer shall pay the costs of the Title Policy (defined below). Escrow Holder shall provide an estimated closing costs statement to Buyer and Seller at least three (3) days prior to the Closing Date. 2.5. Property Taxes and Assessments. All property taxes and assessments levied and assessed against the Property shall have been paid by Seller before delinquency and shall be current as of Close of Escrow. All property taxes and assessments shall be prorated as of Close of Escrow. 2.6. Supplemental Taxes and Assessments. In the event Seller receives a statement requesting payment of supplemental property taxes and assessments with respect to the Property and applicable to any period of time following Close of Escrow ("Supplemental Tax Statement"), Seller shall, within fifteen (15) business days following receipt of such Supplemental Tax Statement, deliver same to Buyer. Upon receipt by Buyer of such Supplemental Tax Statement, Buyer shall promptly pay all appropriate sums due thereunder directly to the taxing authority to whom such payments are payable. Notwithstanding the foregoing, Buyer may, at its sole discretion, take action to cancel or reduce the sums claimed to be due and payable pursuant to such Supplemental Tax Statement; however, such action shall not diminish Buyer's obligation hereunder to pay the sums claimed to be due and payable pursuant to such Supplemental Tax Statement. 2.7. Buyer's Conditions Precedent to Close of Escrow. The Close of Escrow and Buyer's obligation to accept title to the Property and pay the Purchase Price are subject to the satisfaction of the following conditions for Buyer's benefit (or Buyer's waiver thereof, it being agreed that Buyer may waive any or all of such conditions) on or prior to the Closing Date: RVPUB\KRAND0LPH\728895.1 3 2.7.1. Seller has fee title to the Property. 2.7.2. Seller shall have tendered into Escrow all payments and documents required of it pursuant to this Agreement. 2.7.3. Seller shall have completed in a timely fashion all of its obligations which are to be completed prior to the Close of Escrow as provided in this Agreement. 2.7.4. Escrow Holder shall have received an irrevocable commitment from the Title Company to issue the Title Policy required pursuant to this Agreement, subject only to the Permitted Exceptions, as set forth in more detail in Section 3.2. 2.7.5. All representations and warranties of the Seller hereunder shall be true as of the Effective Date and as of the Close of Escrow and shall continue thereafter for the full statutory period. 2.7.6. All property taxes and assessments attributable to the Property shall have been paid by Seller before delinquency and shall be current as of Close of Escrow. 2.7.7. Buyer shall have approved Escrow Holder's estimated closing costs statement. 2.7.8. Buyer shall have determined the Property is suitable for Buyer's intended use and development, as set forth in more detail in Section 4. 2.7.9. Buyer shall have determined and approved, in its sole and absolute discretion, the results of such soils, geological, toxic waste, hazardous substance, and/or any other kind of contamination tests or analyses, as the Buyer or its representatives may perform prior to the Opening of Escrow, or, in Buyer's sole and absolute discretion, after the Opening of Escrow. Buyer reserves the right to deduct the cost of any required remediation from the Purchase Price. 2.7.10. Buyer shall have satisfactorily completed any environmental review necessary to comply with the California Environmental Quality Act ("CEQA") with respect to its acquisition of the Property. 2.7.11. Buyer and Seller shall enter into the Lease for the Property, as provided in Section 5.3 2.8. Seller's Conditions Precedent to Close of Escrow. The Close of Escrow and Seller's obligation to convey the Property are subject to the satisfaction of the following conditions for Seller's benefit (or Seller's waiver thereof, it being agreed that Seller may waive any or all of such conditions) on or prior to the Closing Date: 2.8.1. Buyer shall have tendered into Escrow all payments and documents required of it pursuant to this Agreement. RVPUMKRAND0LPH1728895.I 4 2.8.2. Buyer shall have completed in a timely fashion all of its obligations which are to be completed prior to the Close of Escrow as provided in this Agreement. 2.8.3. All representations and warranties of the Buyer hereunder shall be true as of the Effective Date and as of the Close of Escrow and shall continue for the full statutory period. 2.8.4. Seller shall have approved Escrow Holder's estimated closing costs statement. 2.8.5. Buyer and Seller shall enter into the Lease for the Property, as provided in Section 5.3. 2.9. Buyer's Payments and Documents. No less than one (1) day prior to Closing, Buyer shall pay or tender (as applicable) to the Escrow Holder the following -described funds and documents (in recordable form, as necessary): 2.9.1. The Purchase Price. 2.9.2. Funds required to pay the entirety of the costs and fees attributable to the Escrow and issuance of the Title Policy, as provided in Section 2.4 of this Agreement. 2.9.3. Certificate accepting the Grant Deed and consenting to recording of same. 2.9.4. Preliminary Change of Ownership form. 2.9.5. Such other documents and funds required of Buyer under this Agreement and by Escrow Holder in the performance of its contractual or statutory obligations. 2.10. Seller's Payments and Documents. No less than one (1) day prior to Closing, Seller shall pay or tender (as applicable) to the Escrow Holder the following -described funds and documents (in recordable form, as necessary): 2.10.1. Funds required to pay the prorated amount of ad valorem taxes, if applicable, upon -the Property with respect to the period prior to Close of Escrow. 2.10.2. A fully -executed and acknowledged Grant Deed .commonly used by Escrow Holder and in a form acceptable to Buyer in its reasonable discretion. 2.10.3. FIRPTA Certificate and appropriate California Form 593-C. 2.10.4. Such other documents and funds required of Seller under this Agreement and by Escrow Holder in the performance of its contractual or statutory obligations. 2.11. Escrow Holder Responsibilities. Upon the Closing, Escrow Holder is authorized and instructed to: 2.11.1. Cause the satisfaction and removal of all exceptions to title to the Property representing monetary liens or encumbrances from funds otherwise payable to Seller at Close of R VPUBU:RANDOLPH\728895.1 Escrow, including, without limitation, all unpaid taxes and assessments respecting the Property which became due and payable prior to Close of Escrow and all penalties and interest, if any, thereon. Before such payments or charges are made, Escrow Holder shall notify Seller of the sums necessary to satisfy and remove such monetary liens or encumbrances. 2.11.2. Pay, and charge Buyer and Seller, respectively, for any fees, charges and costs payable under this Agreement, including, but not limited to, Sections 2.9 and 2.10. Before such payments or charges are made, Escrow Holder shall notify Buyer and Seller of the fees, charges and costs necessary to clear title and close the Escrow. 2.11.3. Credit Buyer and debit Seller for, Seller's prorata amount of all unpaid ad valorem taxes, if applicable, upon the Property with respect to the period prior to Close of Escrow. Before such charges and credits are made, Escrow Holder shall notify Buyer and Seller of the sums necessary therefor. 2.11.4. Record the Grant Deed, and any other instruments as appropriate, delivered through Escrow. 2.11.5. Withhold from funds otherwise payable to Seller at Close of Escrow such amount as Buyer is required to withhold therefrom pursuant to California Revenue and Taxation Code Sections 18662 and 18668 (i.e., 3 1/3% of the total sales price or the applicable amount of capital gain) and timely submit such sums to the California Franchise Tax Board, unless Buyer is relieved of such withholding requirements or a different withholding requirement applies under the provisions of said Sections 18662 and 18668. Further, deliver to each Party copies of all such withholding form(s). 2.11.6. Disburse such other funds and deliver such other documents to the Parties entitled thereto. 2.11.7. Cause the Title Policy to be issued. 2.11.8. Timely file such report(s) and form(s) as may be required to be filed by Escrow Holder with California Franchise Tax Board and/or Internal Revenue Service and provide copies of same to each Party. 2.12. Notices. All communications from Escrow Holder to either Buyer or Seller shall be directed to the addresses and in the manner established in Section 8.1 for notices, demands and communications between the Buyer and Seller. 2.13. Facsimile/Counterpart Documents. In the event Buyer or Seller utilizes "facsimile" transmitted signed documents, the Parties hereby agree to accept and instruct Escrow Holder to rely upon such documents as if they bore original signatures. Buyer and Seller hereby acknowledge and agree to provide to Escrow Holder, within seventy-two (72) hours after transmission, such documents bearing the original signatures. Buyer and Seller further acknowledge and agree that facsimile documents bearing non -original signatures will not be accepted for recording and that the Parties will provide originally executed documents to Escrow Holder for such purpose. Escrow Holder is authorized to utilize documents which have been signed by Buyer and Seller in counterparts. R V PUB\KRANDOLPH\728895.1 3. TITLE. 3.1. Condition of Title, Title Policy. It is a condition to the Close of Escrow for Buyer's benefit that fee title to the Property and the right to possession to any portion of the Property conveyed to Buyer pursuant to this Agreement shall be subject only to the Permitted Exceptions (defined below), as evidenced by the receipt by Escrow Holder of an irrevocable commitment from LandAmerica Southland Title Company ("Title Company") to issue to Buyer upon Close of Escrow its Standard Owner's Form Policy of Title Insurance ("Title Policy") in an amount equal to the Purchase Price showing title to the Property vested in Buyer, subject only to the Permitted Exceptions. Buyer may, at its option, and at its sole cost and expense, request any title endorsements, provided that the issuance of such endorsements does not delay the Close of Escrow. Seller shall request Title Company to issue to Buyer such Title Policy upon Close of Escrow. 3.2. Permitted Exceptions. The term "Permitted Exceptions" as used herein shall mean the following -described conditions and exceptions to title or possession: 3.2.1. A lien to secure payment of unpaid general and special real property taxes and assessments, not delinquent, prorated as provided in Section 2.10.3 herein. 3.2.2. A lien of supplemental taxes assessed pursuant to Chapter 3.5 of Part 0.5 of Division 1 of the California Revenue and Taxation Code (commencing with Section 75) accruing on or after the Close of Escrow. 3.2.3. Matters affecting the condition of title created by or with the consent of Buyer. 3.2.4. Other exceptions to title disclosed by the Title Report (defined below) that have been approved in writing by Buyer in its sole, arbitrary and absolute discretion prior to the Close of Escrow. Notwithstanding any other provision(s) in this Agreement, any exceptions to title to the Property representing monetary liens or encumbrances are hereby disapproved and Escrow Holder is hereby authorized and instructed to cause at Close of Escrow the satisfaction and removal of any such monetary exceptions from funds otherwise payable to Seller at Close of Escrow. 3.3. Title Report. Within fifteen (15) calendar days following the Opening of Escrow, Seller shall obtain, and provide a copy to Buyer, a standard preliminary report from the Title Company, together with the underlying documents relating to the Schedule B exceptions set forth in such report (collectively, the "Title Report"). 4. SUITABILITY AND CONDITION OF PROPERTY 4.1. Determination of Suitability and Approval of Environmental and Other Conditions. It is a condition precedent to the Close of Escrow for Buyer's benefit that Buyer has provided notice in writing as provided in this Section 4.1 that it has determined the Property is suitable for Buyer's intended use and development. It is understood and agreed that the obligation of Buyer to purchase the Property is subject to and conditioned upon the Property R V PUB\KRANDOLPH\729995.1 being suitable for Buyer's intended use and development, as determined by Buyer in its sole discretion. Prior to the Closing Date, Buyer shall determine whether the Property is so suitable and shall provide to Seller and Escrow Holder its written notice of such determination. In the event Buyer determines that the Property is so suitable, such determination by Buyer shall not alter or diminish Seller's representations and warranties made herein or under law, unless a representation or warranty is specifically waived in whole or in part by Buyer. In the event Buyer determines the Property is not so suitable, then Buyer may terminate this Agreement as provided in Section 6.1 herein. 4.2. Inspections and Right of Ent y. Prior to Close of Escrow, Buyer may conduct, at Buyer's sole expense, such inspections of the Property as Buyer may desire or deem appropriate, in Buyer's sole discretion, to determine the suitability of the Property for Buyer's intended use and development. Seller hereby grants to Buyer and its authorized employees, representatives, agents and contractors, permission and a license to enter upon the Property at all reasonable times prior to the Closing Date for the purpose of conducting such inspections. 5. SELLER'S ACKNOWLEDGMENT. 5.1. Full Satisfaction. Seller acknowledges that, in accordance with applicable provisions of California law, Seller may be entitled to the payment of relocation expenses, payments for loss of goodwill, just compensation, inverse condemnation, unlawful pre -condemnation conduct, and other benefits and reimbursements other than those expressly provided for in the Agreement (collectively, "Benefits") in connection with Buyer's acquisition of the Property. Seller, on behalf of itself and its heirs, executors, administrators, successors and assigns, acknowledges that Buyer's performance under this Agreement constitutes full and complete satisfaction of Buyer's obligations to provide the Benefits to the Seller. 5.2. Waivers and Releases. Seller hereby waives, to the maximum legal extent, any and all claims, remedies and causes of action for damages, liabilities, losses or injuries related to the Benefits arising from Buyer's acquisition of the Property. The Parties hereto agree that this Agreement shall not, in any manner be construed as an admission of the fair market value of the Property, or of any liability by any party to this Agreement. Seller on behalf of himself and his heirs, executors, administrators, successors and assigns, hereby fully releases Buyer, its successors, agents, representatives and assigns, from all claims and causes of action arising from any claims relating to the Benefits. In connection with the paragraph above and limited to the matters therein discussed, Buyer expressly waives the benefits of Section 1542 of the California Civil Code, which provides as follows: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR." RVI'LIMRANDOLPH\728895.1 8 BUYER'S INITIALS: 5.3. Lease Following Close of Escrow. As additional consideration to Seller for Seller's waivers and releases as provided in this Article 5, Seller and Buyer shall enter into a standard form lease agreement ("Lease") reasonably acceptable to both of them. The Lease shall be for a term not to extend beyond December 31, 2007. The Lease shall be at a rental rate of One Dollar ($1.00) for the entire term. The Seller shall be wholly responsible for the payment of all taxes, insurance, maintenance of all types, utilities, and the like, it being the intent of the Parties that Buyer shall be put at no risk, liability, or expense in connection with Seller's occupancy of the Property pursuant to the Lease. Without limiting the generality of the foregoing, Seller acknowledges that the Lease will be subject to the payment of possessory interest taxes and that Seller will be solely responsible for the payment thereof. The Lease shall be negotiated by the Parties diligently and in good faith following the Opening of Escrow and a fully executed copy of the Lease shall be delivered to Escrow Holder prior and as a condition to the Close of Escrow. 6. TERMINATION, DEFAULTS AND REMEDIES. 6.1. Exercise of Rights to Terminate. In the event Buyer elects to exercise its rights to terminate this Agreement and the Escrow as provided in Sections 2.3, 4.1 or 8.3, then Buyer may so terminate by giving notice, in writing, of such termination to Seller and Escrow Holder. In the event Seller elects to exercise its rights to terminate this Agreement and the Escrow as provided in Sections 2.3 or 8.3, then Seller may so terminate by giving notice, in writing, of such termination to Buyer and Escrow Holder. In such event, the Party so terminating shall pay all Escrow Holder and Title Company termination fees and charges (collectively, "Termination Costs"). Upon such termination, all obligations and liabilities of the Parties under this Agreement, excepting for the obligation of Party so terminating to pay Termination Costs as provided herein, shall cease and terminate. 6.2. Buyer's Breach. In the event Buyer breaches any obligation hereunder which Buyer is to perform prior to the Close of Escrow, and fails to cure such breach within a reasonable period of time determined at the sole discretion of Seller, then Seller, as its sole and exclusive remedy, may terminate this Agreement and the Escrow by giving notice, in writing, of such termination to Buyer and Escrow Holder. In such event, Buyer shall pay all Termination Costs. Upon such termination, all obligations and liabilities of the Parties under this Agreement, excepting for Buyer's obligation to pay Termination Costs as provided herein, shall cease and terminate. 6.3. Seller's Breach. In the event Seller breaches any obligation hereunder which Seller is to perform prior to the Close of Escrow, and fails to cure such breach within a reasonable period of time determined at the sole discretion of Buyer, then, in addition to pursuing any other rights or remedies which Buyer may have at law or in equity, Buyer may, at Buyer's option, (i) terminate this Agreement and the Escrow by giving notice, in writing, of such termination to Seller and Escrow Holder, or (ii) initiate an action for specific performance of this Agreement. Should Buyer elect to terminate this Agreement and the Escrow as provided herein, then Seller shall pay all Termination Costs, and upon such termination, all obligations RVPUBNCRANDOLPHV28895.1 9 and liabilities of the Parties under this Agreement, excepting for Seller's obligation to pay Termination Costs as provided herein, shall cease and terminate. 6.4. Return of Funds and Documents; Release of Liability as to Escrow Holder. In the event Escrow Holder terminates this Escrow as a result of having received notice, in writing, from Buyer or Seller of its election to terminate Escrow as provided in Article 6, then Escrow Holder shall terminate the Escrow and return all funds, less Termination Costs, as appropriate, and documents to the Party depositing the same. Further, the Parties hereby release Escrow Holder, and shall hold Escrow Holder free and harmless, from all liabilities associated with such termination excepting for Escrow Holder's obligations to return funds and documents as provided herein. 7. REPRESENTATIONS AND WARRANTIES. 7.1. Seller's Representations and Warranties. Seller hereby represents and warrants to Buyer that the following statements are true and correct as of the Effective Date, and shall be true and correct as of Close of Escrow, and the truth and accuracy of such statements shall constitute a condition precedent to all of Buyer's obligations under this Agreement: 7.1.1. Authority. Seller has full power and authority to own, sell and convey the Property to Buyer and to perform its obligations pursuant to this Agreement. This Agreement and all other documents delivered by Seller to Buyer now or at Close of Escrow have been or will be duly executed and delivered by Seller and are or will be legal, valid and binding obligations of Seller, and are enforceable in accordance with their respective terms. 7.1.2. No Unrecorded Possessory Interests; No Agreements or Undertakings. To Seller's actual knowledge, there are no agreements for occupancy in effect for the Property and no unrecorded possessory interests or unrecorded agreements that would adversely affect Buyer's title to or use of the Property. Seller will not enter into any agreements or undertake any obligations prior to Close of Escrow which will in any way burden, encumber or otherwise affect the Property without the prior written consent of Buyer, including, without limitation, any agreements for occupancy for the Property. The term "Seller's actual knowledge" means the actual knowledge of Lyle A. Moritz and Mary A. Moritz., with no duty of investigation into the matter so qualified. 7.1.3. Hazardous Materials. Seller is aware of its obligation under California Health and Safety Code Section 25359.7 to disclose information to Buyer regarding the environmental status of the Property. Seller warrants to Buyer that to the best of Seller's actual conscious knowledge the Property and any contiguous real property owned by Seller: (i) is not in violation of any federal, state or local statute, regulation or ordinance relating to environmental conditions on, under or about the Property, including, without limitation, soil and groundwater conditions underlying the Property which could affect the Property or its use or development; and (ii) neither Seller nor any other person or predecessor in interest has used, generated, manufactured, stored or disposed of on, under or about the Property or transported to or from the Property any "Hazardous Materials" as defined in any state, federal or local statute, ordinances, rules or regulation applicable to the Property, including without limitation RVPUBUCRANDOLPH\728895.1 10 any flammable materials, explosives, radioactive materials, hazardous or contaminated materials or substances, toxic or noxious materials, substances or related materials or substances. 7.1.4. Litigation. To the best of Seller's actual knowledge, there are no claims, actions, suits or proceedings continuing, pending or threatened against or affecting Seller or the Property, or involving the validity or enforceability of this Agreement or of any other documents or instruments to be delivered by Seller at Close of Escrow, at law or in equity, or before or by any federal, state, municipal or other governmental department, board, commission, bureau, Buyer or instrumentality. Seller is not subject to or in default under any notice, order, writ, injunction, decree or demand of any court or any governmental department, board, commission, bureau, Buyer or instrumentality. 7.1.5. No Breach. To the best of Seller's actual knowledge, the execution and delivery of this Agreement and the consummation of the transaction contemplated hereby will not violate or result in any breach of or constitute a default under or conflict with or cause any acceleration of any obligation with respect to any provision or restriction of any lien, lease, agreement, contract, instrument, or, according to Seller's knowledge, any order, judgment, award, decree, statute, regulation or ordinance, or any other restriction of any kind or character.to which Seller is a party or by which Seller or the Property are bound. 7.1.6. No Condemnation or Other Proceedings. To the best of Seller's actual knowledge, other than actions undertaken by the Buyer, Seller is unaware of any contemplated condemnation of the Property or any portion thereof by any public entity other than the Agency. 7.2. Survival of Representations and Warranties. The covenants, representations and warranties of Seller under this Agreement shall be true on and as of the Close of Escrow and shall survive the recordation of the Grant Deed and the Close of Escrow. Seller shall defend, indemnify and hold Buyer harmless from and against any and all claims, liabilities, obligations, losses, damages, costs and expenses, including, without limitation, reasonable attorney's fees, court costs and litigation expenses, which Buyer may reasonably incur or sustain by reason of or in connection with any misrepresentation made by . Seller pursuant to this Section 7. 7.3. Buyer's Representations and Warranties. Buyer hereby represents and warrants to Seller, for the benefit of Seller and Seller's successors and assigns, that the following facts are true as of the Effective Date, and shall be true as of the Closing Date: 7.3.1. Authority. Buyer has the legal capacity, power and authority to, and has duly authorized, pursuant to the Brown Act, the persons signing this Agreement on its behalf to, enter into and perform under the terms of this Agreement. 7.3.2. No Conflicts. Neither this Agreement, nor anything provided to be done hereunder, knowingly violates any contract, instrument, document, understanding or agreement to which Buyer is a party, or by which Buyer may be bound. 7.3.3. Reliance of Buyer's Warranties and Representations. Buyer acknowledges that as of the Effective Date and the Closing Date, Seller shall be relying on all representations or warranties of Buyer that are contained or referred to in this Agreement. RVPWKRANDOLPH\728895.1 11 7.3.4. Legal Action Against Buyer. To the best of Buyer's knowledge, there are no pending or threatened legal proceedings against Buyer that would adversely effect, restrict or prohibit Buyer's performance of this Agreement. Buyer's execution, delivery and performance of this Agreement will not conflict with, or with or without notice or the passage of time, or both, result in a breach of any of the terms and provisions of or constitute a default under any legal requirement, indenture, mortgage, loan agreement or instrument to which Buyer is a party or by which Buy is bound. 7.3.5. "As Is" Purchase. Buyer specifically acknowledges and agrees that Seller is selling and Buyer is purchasing the Property on an "As Is, With All Faults" basis and that Buyer is not relying on any representations or warranties of any kind whatsoever, express (other than as otherwise expressly provided in this Agreement) or implied, from Seller, its agents, or employees as to any matters concerning the Property, including without limitation: (i) the quality, nature, adequacy and physical condition of the Property (including topography, climate, air, and water rights); (ii) the quality, nature, adequacy, and physical condition of soils, geology and any groundwater; (iii) the presence or absence of Hazardous Materials on, under or about the Property or the adjoining or neighboring property, (iv) -the status of entitlements, permits and approvals with respect to the Property and (v) the development potential of the Property, and/or the Property's use, habitability, merchantability, fitness, suitability, value or adequacy for any particular purpose. 7.3.6. Release. Except as to matters and liabilities attributable to the negligence or intentional tortious acts of Seller or its agents, employees, affiliates, members, partners, officers, directors and shareholders, Buyer waives, effective as of the Close of Escrow hereunder, on behalf of itself and its agents, employees, affiliates, members, partners, officers, directors, shareholders, successors and assigns, any and all right to recover from Seller, and from Seller's respective members, shareholders, directors, officers, .partners, parent company, affiliates, employees and agents (collectively, the "Seller Related Parties"), and forever releases and discharges Seller and the Seller Related Parties, from any and all damages, claims, losses, liabilities, penalties, fines, liens, judgments, costs or expenses whatsoever (including, without limitation, attorney's fees and costs), whether direct or indirect, known or unknown, foreseen or unforeseen, that may arise on account of or in any way be connected with the Property, including without limitation title to the Property, the physical and environmental condition of the Property or any law or regulation applicable thereto (including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. Sections 9601 et seq.), the Resource Conservation Recovery Act of 1976 (42 U.S.C. Sections 6901 et seq.), the Federal Water Pollution Control Act (33 U.S.C. Sections 1251 et seq.), the Toxic Substance Control Act (15 U.S.C. Sections 2601 et seq.), the California Hazardous Waste Control Law (California Health and Safety Code Sections 25100 et seq.), the Porter -Cologne Water Quality Control Act (California Water Code Sections 13000 et seq.), and the Safe Drinking Water and Toxic Enforcement Act (California Health and Safety Code Section 25249.5 et seq.). The provisions of this Paragraph 7.3.6 shall survive the Close of. Escrow under this Agreement. In connection with the paragraph above and limited to the matters therein discussed, Buyer expressly waives the benefits of Section 1542 of the California Civil Code, which provides as follows: RVPUBTRANDOLPH\728895.1 12 "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR." BUYER'S INITIALS: 8. OTHER. 8.1. Notices and Demands. All notices or other communications required or permitted between the Parties hereunder shall be in writing, and shall be (i) personally delivered,. (ii) sent by United States registered or certified mail, postage prepaid, return receipt requested, (iii) sent by facsimile transmission with confirmation of receipt, or (iv) sent by nationally recognized overnight courier service (e.g., Federal Express or United Parcel Service), addressed to the Party to whom the notice is given at the addresses provided below, subject to the right of any Party to designate a different address for itself by notice similarly given. Any notice so given by registered or certified United States mail shall be deemed to have been given on the third business day after the same is deposited in the United States mail. Any notice not so given by registered or certified mail, such as notices delivered by personal delivery, facsimile transmission or courier service, shall be deemed given upon receipt, rejection or refusal of the same by the Party to whom the notice is given. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to constitute receipt of the notice or other communication sent. To Buyer: The Redevelopment Agency of the City of Azusa Attn: Bruce Coleman, Economic and Community Development Director 213 E. Foothill Blvd. Azusa, CA 91702 Facsimile: (626) 334-5464 Telephone: (626) 812-5236 With Copy to: Best Best & Krieger LLP Attn: Kevin K. Randolph 3750 University Avenue Suite 400 Riverside, CA 92501 Facsimile: (951) 686-3083 Telephone: (951) 686-1450 RVPUMKRAND0LPM728895.1 13 To Seller: Lyle A. & Mary A. Moritz, Trustees 1028 North Soldano Avenue Azusa, CA 91702 Telephone: (626) 834-8173 To Escrow Holder: LandAmerica Southland Title Attn: Judy Arrington 7530 N. Glenoaks Boulevard Burbank, CA 91504 Telephone: (949) 453-9000 x314 8.2: Risk of Loss. All risk of loss or damage to the Property will pass from the Seller to the Buyer at the Close of Escrow. In the event that material loss or damage occurs to the Property prior to the Close of Escrow, either Party may terminate this Agreement as provided in Section 6.1. 8.3. Brokers and Sales Commissions. Seller and Buyer each represent and warrant to the other that no broker, agent or finder has been engaged by them in connection with the transaction described in this Agreement. Each of the parties shall indemnify and defend the other party and hold it harmless from any and all loss, damage, liability or expense, including costs and reasonable attorneys' fees, which the other party may incur or sustain by reason of or in connection with any misrepresentation or breach of warranty by the indemnifying party with respect to the foregoing. 9. MISCELLANEOUS. 9.1. Survival of Covenants. The covenants, representations and warranties of both Buyer and Seller set forth in this Agreement shall survive the recordation of the Grant Deed and the Close of Escrow. 9.2. Required Actions of Buyer and Seller. Buyer and Seller agree to execute such instruments and documents and to diligently undertake such actions as may be required in order to consummate the purchase and sale herein contemplated and shall use their best efforts to accomplish the Close of Escrow in accordance with the provisions hereof. 9.3. Time of Essence. Time is of the essence of each and every term, condition, obligation and provision hereof. 9.4. Counter -parts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument. 9.5. Captions. Any captions to, or headings of, the paragraphs or subparagraphs of this Agreement are solely for the convenience of the Parties, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof. RVPUB%KRANDOLPHV28895.1 14 9.6. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, nor obligate any of the Parties to, any person or entity other than the Parties. 9.7.. Exhibit. The Exhibit attached hereto is hereby incorporated herein by this reference. 9.8. Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof. 9.9. Applicable Law. All questions with respect to this Agreement, and the rights and liabilities of the Parties and venue hereto, shall be governed by the laws of the State of California. Any and all legal actions sought to enforce the terms and provisions of the Agreement shall be brought in the courts of the County of Los Angeles. 9.10. Assignment. Buyer shall have the absolute right to assign this Agreement, and any right or obligation herein, to any party of its choice. Seller shall not assign this Agreement, or any right or obligation herein, to any party without the prior written consent of Buyer. 9.11. Successors and Assijzns. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the Parties hereto. 9.12. Ratification. This Agreement is subject to the approval and ratification by the Buyer's governing body or its delegated representative. 9.13. Severability. If any term or provision of this Agreement shall be held invalid or unenforceable, the remainder of this Agreement shall not be affected. 9.14. Construction. This Agreement will be liberally construed to effectuate the intention of the Parties with respect to the transaction described herein. In determining the meaning of, or resolving any ambiguity with respect to, any word, phrase or provision of this Agreement, neither this Agreement nor any uncertainty or ambiguity herein will be construed or resolved against either Party (including the Party primarily responsible for drafting and preparation of this Agreement), under any rule of construction or otherwise, it being expressly understood and agreed that the Parties have participated equally or have had equal opportunity to participate in the drafting thereof. 9.15. Legal Fees. Each Party shall be responsible for payment of its own attorney's fees with respect to negotiation and preparation of this Agreement and processing of the Escrow. In the event of the bringing of any action or proceeding to enforce or construe any of the provisions of this Agreement, the prevailing Party in such action or proceeding, whether by final judgment or out of court settlement, shall be entitled to have and recover of and from the other Party all costs and expenses of suit, including actual attorney's fees and expert witness fees. 9.16. Fees and Other Expenses. Except as otherwise provided herein, each of the Parties shall pay its own fees and expenses in connection with this Agreement. RVPUB\KRANDOLPH\728895.1 15 9.17. Entire Agreement. This Agreement supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between Buyer and Seller as to the subject matter hereof. No subsequent agreement, representation, or promise made by either Party hereto, or by or to an employee, officer, agent or representative of either Party, shall be of any effect unless it is in writing and executed by the Party to be bound thereby. 9.18. Amendment to this Agreement. The terms of this Agreement may not be modified or amended except by an instrument in writing executed by each of the Parties hereto. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date(s) set forth below next to their respective signatures. [Signatures on following pages] RVPUBUCRANDOLPH\728895.1 16 SIGNATURE PAGE TO AGREEMENT FOR PURCHASE AND SALE AND JOINT ESCROW INSTRUCTIONS Date: BUYER: THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA a public body, corporate and politic LE F. M. Delach Executive Director ATTEST: Agency Secretary APPROVED AS TO FORM: BEST BEST & KRIEGER LLP Agency Counsel RVPUBW ANDOLPH\728895.1 17 SIGNATURE PAGE TO AGREEMENT FOR PURCHASE AND SALE AND JOINT ESCROW INSTRUCTIONS Date: SELLER: LYLE A. & MARY A. MORITZ TRUSTEES OF THE MORITZ REVOCABLE MARITAL TRUST NO. 1, UNDER AGREEMENT DATED JUNE 29, 1989 10 RVPUBTRANDOLM728895.1 18 Lyle A. Moritz Mary A. Moritz EXHIBIT A TO AGREEMENT FOR PURCHASE AND SALE AND JOINT ESCROW INSTRUCTIONS Legal Description of Property Assessor's Parcel Number: 8608-027-009 Lot(s) 4 in Block 19 of Azusa, in the City of Azusa, County of Los Angeles, State of California, as per map recorded in Book 15 Page(s) 93 to 96 inclusive of Maps, in the Office of the County Recorder of said County. Together with that portion of that certain North/ South Alley, 20 feet wide, as shown on Map of Azusa, in the City of Azusa, County of Los Angeles, State of California, as per map recorded in Book 15 Page(s) 93 et seq. of Miscellaneous Records, in the Office of the County Recorder of said County, included within Block 19 of said Map of Azusa, shown as Parcel "A" on Exhibit "B" of that certain Resolution to Vacate No. 94-C34, recorded July 19, 1994 as Instrument No. 94-1339841, Official Records. EXHIBIT A R V PUBUCRANDOLPH\728895.1