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HomeMy WebLinkAbout00383C - PLAZA MERCADO PARKING LOT WESSMAN PROPERTY PURCHASE SALE CRA Hsg Fund Sale to City Parking Parcel - Plaza Mercado 0 AGREEMENT #383C (R19241) R1039, 5-6-98 AGREEMENT FOR PURCHASE AND SALE -- - -- —OF REAL PROPERTY THIS AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY ("Agreement") is made this ,!i1L day of May, 1998 ("Effective Date") , by and between the City of Palm Springs, a California municipal corporation ("City") and the Palm Springs Housing Fund, by and through the Community Redevelopment Agency of the City of Palm Springs, a public body, corporate and politic (collectively referred to as the "Agency") . R E C I T A L S: A. The Housing Fund of the Community Redevelopment Agency of the City of Palm Springs ("Housing Fund") is the owner of that certain real property and improvements and easements thereon consisting of approximately seventy two thousand (72 , 000) square feet located at 151 South Palm Canyon Drive in the City of Palm Springs ("Property") . B. Agency and John Wessman dba Wessman Development Company ("Wessman") entered into that certain Disposition and Development Agreement dated July 7, 1992 , as modified by that certain letter agreement dated January 21, 1993 (collectively the "Original DDA") pursuant to which Wessman acquired the Property and transferred that portion of the Property, together with all easements therewith, referred to in the Original DDA as the "Parking Parcel, " to the Housing Fund for two million eight hundred thousand dollars ($2 , 800, 000) , while Wessman retained title to the remaining portion of the Property. C. Under the Original DDA, the Agency was to develop a residential condominium development above a multi-level parking structure on the Parking Parcel portion of the Property (the "Residential Project") , in accordance with the Declaration of Covenants, Conditions and Restrictions and Grant of Easements, executed by and between Wessman and the Agency on October 30, 1992 and recorded as Instrument No. 413900 in the Official Records of Riverside County ("CC&Rs") . D. In 1993 and 1994 and prior to construction of the Residential Project, the Agency, through its contractor, undertook financial feasibility and architectural design analyses (Feasibility Studies) of the proposed Residential Project, from which the Agency discovered that the Project would not be feasible within the foreseeable future because the costs necessary to prepare the Parking Parcel for, and construct, the Residential Project were prohibitive. E. As a result of the Feasibility Studies, on June 18, 1997, Agency and Wessman executed a First Amended Disposition and 627/014084-0006/315857.5.1 a05/01/98 CI r&,,.-AL Development Agreement ("Amended DDA") to cancel that portion of the Original DDA regarding the construction of the Residential Project, and revise the Parking Parcel size, configuration and easements, as required by design refinements to Plaza Mercado ("Revised Parking Parcel") , thereby reducing the total square feet of the Parking Parcel to approximately fifty seven thousand nine hundred thirty four (57,934) square feet to accommodate offsetting benefits to the Parking Parcel and provide public open space along the Palm Canyon frontage of Plaza Mercado. The Revised Parking Parcel is more particularly described in Exhibit "A" attached hereto and incorporated herein. F. As a result of the elimination of the Residential Project from the Original DDA, the parties herein acknowledge that they have realized the following benefits: • Accommodation of a more efficient and cost- effective parking facility layout on the Parking Parcel after the deletion of the housing component; • Creation of public open space easements for outdoor activities and special events which would benefit the economic revitalization of downtown and help mitigate the loss of the economic impact of the housing component; • Removal of a driveway access to the Parking Parcel from Palm Canyon Drive to enhance the pedestrian orientation of that corridor; • Creation of easements for improved service, maintenance and emergency access to the Parking Parcel in lieu of the Agency's fee simple ownership of property for these features; and • Decrease of the City's maintenance cost exposure for the Parking Parcel, increase of the property tax revenue potential of the over-all project, and the direct savings by the Agency of an estimated $165, 000 in the event that a parking structure is built on the Revised Parking Parcel. G. Agency now wishes to sell the Parking Parcel to City and City wishes to purchase the Revised Parking Parcel pursuant to the terms and conditions of this Agreement. H. Agency wishes to partially reimburse the Housing Fund for the Housing Fund's participation in the Residential Project by securing a Note payable to the Housing Fund for a total of $546, 970, representing $79, 500 for one third (1/3) of the total building and site demolition costs, $181, 575 for one half (1/2) of the acquisition of housing/air rights, $107, 685 for one half (1/2) of the housing/structural upgrade costs, and $178, 210 for one third (1/3) of the acquisition of added setbacks/easements for the Residential Project; and the Housing Fund wishes to write off $546, 970, representing the balance of its investment of $2 , 800, 000 in the Residential Project, after the payment by the City of the Purchase Price of $1, 706, 060, and the promissory note by the Agency of 546, 970. 627/014084-0006/3158575.1 a05101/98 2 I. City and Agency are desirous of authorizing Wessman to construct a 146 space public surface parking lot on the Revised Parking Parcel, including landscaping and lighting to current City standards, for costs to be paid by the City to Wessman, as provided in the Amended DDA. NOW, THEREFORE, in consideration of the mutual covenants and conditions contained herein and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereby agree as follows: TERMS AND CONDITIONS 1. PURCHASE AND SALE OF PROPERTY. Subject to all of the terms, conditions and provisions of this Agreement, and for the consideration herein set forth, Agency hereby agrees to sell to City and City hereby agrees to purchase from Agency the Agency's fee interest in and that certain real property know as the Revised Parking Parcel, as more specifically described at Exhibit "A" , attached hereto and made a part hereof. 2 . PAYMENT OF PURCHASE PRICE. 2 . 1 Purchase Price. City agrees to purchase the Revised Parking Parcel from Agency and Agency agrees to sell the Revised Parking Parcel to City for the purchase price ("Purchase Price") of ONE MILLION SEVEN HUNDRED SIX THOUSAND SIXTY DOLLARS ($1, 706, 060) , payable from the City's Parking Fund to the Agency's Housing Fund. Total payments to the Housing Fund shall be $1, 706, 060 by the City in good funds, representing $1,448 , 350 for the appraised value of the Revised Parking Parcel land, $79, 500 for one third (1/3) of the total building and site demolition costs, and $178,210 for one third (1/3) of the acquisition of added setbacks/easements for the Residential Project; also payable to the Housing Fund is $546, 970 by Agency in the form of that certain promissory note described at Section 3 . 1 below. "Good funds" shall mean a wire transfer of funds', cashier's or certified check drawn on or issued by the offices of a financial institution located in the State of California, or cash. 2 .2 Time of Payment. The entire Purchase Price shall be paid in good funds upon the Effective Date of this Agreement. ILL 627/014084-0006/3158575.1 a05/01/98 3 0 • 0. � . 3 . BALANCE PAYABLE TO HOUSING FUND. 3 . 1 Agency Indebtedness. The Agency agrees to execute a Promissory Note ("Agency Note") in the amount of FIVE HUNDRED FORTY SIX THOUSAND, NINE HUNDRED SEVENTY DOLLARS ($546, 970) , at the annual interest rate of 6%, for the benefit of the Agency's Housing Fund, representing partial reimbursement to the Agency's Housing Fund for its initial participation in the Project, including $79, 500 for one third (1/3) of the total building and site demolition costs, $181, 575 for one half (1/2) of the acquisition of housing/air rights, $107 , 685 for one half (1/2) of the housing/structural upgrade costs, and $178, 210 for one third (1/3) of the acquisition of added setbacks/easements for the Residential Project. A copy of the Agency Note is attached hereto and incorporated herein as Exhibit "B" . A copy of the Grant Deed transferring the Revised Parking Parcel from Agency to City is attached hereto and incorporated herein as Exhibit "C" . 3 . 2 Balance of Housing Fund's Investment. The remaining balance of the payments and outlays made by the Housing Fund in its participation in the Residential Project of FIVE HUNDRED FORTY SIX THOUSAND NINE HUNDRED SEVENTY DOLLARS ($546, 970) ("Housing Fund Balance") shall be borne solely, by the Housing Fund. The Agency hereby agrees that its Housing Fund shall not be entitled to any payment of the Housing Fund Balance from the City. The Housing Fund Balance represents $2 , 800, 000 for the Housing Fund's original purchase price for the Parking Parcel, minus the Purchase Price payable by City of $1,706. 060, minus the Agency Note of $546, 970. The allocation of the Housing Fund Balance to the Housing Fund is done due to the fact that at the time the Housing Fund was undertaking the Residential Project, it benefitted from the demolition work, the structural upgrades needed to make the building suitable for retail units and the additional easements secured for the Parking Parcel. 4 . PARKING FACILITY. 4 . 1 Costs of Improvements. City agrees to pay Wessman or any other contractor duly selected by the Agency ("Contractor") the actual costs to such Contractor, not to exceed three hundred seventy one four hundred ten dollars ($371, 410) to construct one hundred forty six (146) space public surface parking lot on the Parking Parcel, including landscaping and lighting, as designed by Agency or with Agency's approval and to current City standards, as provided in the Amended DDA and as may be further defined or amended in any subsequent agreement between the Agency and Contractor ("Parking Facility") . The total costs payable to Contractor, as provided in this Section 4 . 1 includes eight percent (8%) for the "overhead and fee" and five percent (5%) contingency allowance, both pursuant to the terms of the Amended DDA. 6271014094-000613158575.1 05/01/98 4 4 . 2 Maintenance and Operation of Parking Facility. City, through its employees, agents or contractors, agrees to operate and maintain the Parking Facility upon the completion of construction of the Parking Facility in accordance with City operation and maintenance standards. 4 . 3 Liability and Indemnification. In contemplation of Government Code Section 895. 2 imposing certain tort liability jointly upon public entities solely by reason of such entities being a party to an agreement defined by Government Code Section 895, the parties hereto, as between themselves, pursuant to the authorization contained in Government Code Sections 895. 4 and 895. 6, shall each assume full liability imposed upon it, or any of its officers, agents, or employees, by law for injury caused by negligent or wrongful acts or omissions occurring in the performance of this Agreement to the same extent that such liability would be imposed in the absence of Section 895. 2 . To achieve the above-stated purpose, each party indemnifies and holds harmless the other party for any loss, costs, or expenses that may be imposed upon such party solely by virtue of Section 895 . 2 . The provisions of California Civil Code Section 2778 shall be applicable to this Agreement. 4 . 4 Effective Date. This Agreement shall take effect from and after the date (which date shall be inserted into the preamble of this Agreement) of adoption and approval by the City and Agency pursuant to official action of the governing bodies thereof. 5. NO WARRANTIES. 5. 1 "AS-IS" Sale. Except as set forth in this Agreement, City acknowledges that neither Agency nor any of its employees, agents or representatives has made any representations, warranties or agreements to or with City on behalf of Agency as to any matters concerning the Revised Parking Parcel, the physical condition, the present use thereof, the merchantability, or the suitability of City's intended use of the Revised Parking Parcel. City further acknowledges and agrees that (with the exception of the representations and warranties by Agency herein) the Revised Parking Parcel is to be purchased, conveyed and accepted by City in its present "AS-IS" condition. 5. 2 Changed Circumstances. If Agency becomes aware of any fact or circumstance which would change or render incorrect, in whole or in part, any representation or warranty made by Agency under this Agreement, whether as of the date given or within four (4) months thereafter and whether or not such representation or warranty was based upon Agency's knowledge and/or belief as of a certain date, Agency will give immediate written notice of such changed fact or circumstance to City. City shall have ten (10) days from the receipt of any notice by Agency of the material change of any representation or warranty made by Agency hereunder to terminate this Agreement by providing written notice to Agency, 627/014084-0006/3158575.1 a05/01/98 51 N" " and receive return of its Purchase Price and any other sums paid to Agency under this Agreement. 6. BROKERAGE COMMISSIONS. City and Agency each agree to indemnify and hold the other parties harmless from and against all liabilities, costs, damages and expenses, including, without limitation, attorneys' fees, resulting from any claims or fees or commissions, based upon agreements by it, if any, to pay a broker's commission and/or finder's fee. 7. MISCELLANEOUS. 7 . 1 Successors. This Agreement shall be binding upon the parties hereto and their respective heirs, representatives, transferees, successors and assigns. The obligations of Agency under this Agreement shall inure to the benefit of City, any purchaser of City, and their respective heirs, representatives, transferees, successors and assigns. 7 . 2 Time of Essence. Time is of the essence in this Agreement and with respect to each covenant and condition hereof. City and Agency each specifically agrees to strictly comply and perform its obligations herein in the time and manner specified and waives any and all rights to claim such compliance by mere substantial compliance with the terms of this Agreement. 7. 3 Time Period Computations. All periods of time referred to in this Agreement shall include all Saturdays, Sundays and California state or national holidays unless the reference is to business days, in which event such weekends and holidays shall be excluded in the computation of time and provide that if the last date to perform any act or give any notice with respect to this Agreement shall fall on a Saturday, Sunday or California state or national holiday, such act or notice shall be deemed to have been timely performed or given on the next succeeding day which is not a Saturday, Sunday or California state or national holiday. 7 . 4 Interpretation; Governing Law. This Agreement shall be construed according to its fair meaning and as if prepared by both parties hereto. This Agreement shall be construed in accordance with the laws of the State of California in effect at the time of the execution of this Agreement. Titles and captions are for convenience only and shall not constitute a portion of this Agreement. As used in this Agreement, masculine, feminine or neuter gender and the singular or plural number shall each be deemed to include the others wherever and whenever the context so dictates. 7.5 No Waiver. No delay or omission by either party hereto in exercising any right or power accruing upon the compliance or failure of performance by the other party hereto under the provisions of this Agreement shall impair any such right or power 627/014084-0006/3158575.1 .05/01/98 6 or be construed to be a waiver thereof. A waiver by either party hereto of a breach of any of the covenants, conditions or agreements hereof to be performed by the other party shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions or conditions hereof. 7 . 6 Modifications. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made by written instrument or endorsement thereon and in each such instance executed on behalf of each party hereto. 7 . 7 Severability. If any term, provision, condition or covenant of this Agreement or the application thereof to any party or circumstances shall, to any extent, be held invalid or unenforceable, the remainder of this instrument, or the application of such term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 7 . 8 Merger of Prior Agreements and Understandings. This Agreement, and other documents incorporated herein by reference contain the entire understanding between the parties relating to the transaction contemplated hereby and all prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged herein and shall be of no further force or effect. 7 . 9 Execution in Counterpart. This Agreement and any modifications, amendments or supplements thereto may be executed in several counterparts, and all so executed shall constitute one agreement binding on all parties hereto, notwithstanding that all parties are not signatories to the original or the same counterpart. 627/014084-0006/3158575.1 a05/01/98 7 IN WITNESS WHEREOF, the parties hereto have executed this Agreement of Purchase and Sale of Property as of the date set forth above. "AGENCY" COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a public body, corporate and politic By: ` Chairman ATTEST: MV Agdncy/ Secretary ,: fT a . . . .. -- r ,pp1ra.,t`;°�d APPROVED AS TO FORM: BY J67 Agenc unsel "CITY" CITY,,.O-F` PALM^SPRI a m nicipal corpor on By: Ci y Manager ATTEST: Cite Clerk APPROVED AS TO FORM: City (Arney 627/014084-0006/3158575.1 a05/01/98 8 ® i EXHIBIT "A" LEGAL DESCRIPTION OF REVISED PARKING PARCEL The Land is that certain real property located in the City of Palm Springs, County of Riverside, State of California, more particularly described as follows: a EXHIBIT "A" TO AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY 627/014084-0006/3158575.1 a05/01198 1 EXHIBIT "A" .00� LEGAL DESCRIPTION OF REVISED PARKING PARCEL The Land is that certain real property located in the City of Palm Springs, County of Riverside, State of California, more particularly described as follows: fir,{' EXHIBIT "A" TO AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY 627/014084-0006/3159575.1 .04/28/98 1 • • PROMISSORY NOTE ("AGENCY NOTE") Palm Springs, California FOR VALUE RECEIVED, the undersigned, the Community Redevelopment Agency Central Business District Fund ("Maker") hereby promises to pay to the CRA Low & Moderate Income Housing Fund ("Holder") , the principal sum of Five Hundred Forty Six Thousand Nine Hundred Seventy dollars ($546,970) , together with interest thereon at six percent (6%) per annum commencing May 6, 1998 ("Interest Accrual Commencement Date") . 1. Repayment by Maker. Maker shall pay annually for the first five years interest only in the amount of Thirty Two Thousand Eight Hundred Eighteen dollars and Twenty Cents ($32,818.20) to Holder in lawful money of the United States, commencing on May 6, 1999. If not sooner paid, the unpaid principal balance and accrued interest hereunder shall be due and payable over the last ten years of this note. The repayment of the principal shall commence with the May 6, 2004 payment, in equal annual installments over the succeeding 10 years in the amount of Seventy Four Thousand Three Hundred Fifteen Dollars and Seventy Cents ($74,315.70) . Last payment date is scheduled for May 6, 2013. Any payments made by Maker in payment of this Note shall be applied first to the interest then accrued and due on the unpaid principal balance under this Note, and the remainder of each payment shall be applied to the reduction of the unpaid principal. 2. Repayment. This Note may be prepaid in whole or in part at any time without penalty. 3. Promissory Note. This Note is an unsecured Agency Note to formally acknowledge the indebtedness of the Central Business District Fund to the Low & Moderate Income Housing Fund. 4. Late Charge. Maker agrees that if Maker fails to make any payment provided for herein more than ten (10) days after the due date thereof, it would be impracticable or extremely difficult to fix the actual damages resulting therefrom to Holder, and, therefore, Maker hereby agrees to pay to Holder a late charge equal to five percent (5%) of any payment which is not made within ten (10) days after the due date thereof, not as a penalty, but for the purpose of defraying the expenses incident to handling such delinquent payment. Such late charge represents the reasonable estimate of a fair average compensation for the loss that may be sustained by Holder due to the failure of Maker to make timely payments. Such late charge shall be paid without prejudice to the right of Holder to collect any other amount provided to be paid or to declare a default under this Note or the Deed of Trust securing same. Such late charge shall be payable not later than thirty (30) days after the due date or the delinquent payment and shall be secured by the Deed of Trust. 5. Acceleration of Obligation. Upon the failure to make payment of any installment due under this Note as and when the same become due and payable (whether by extension, acceleration or otherwise) , or in the event of default under the Deed of Trust, or any breach of any other promise or obligation in this Note or in any other instrument now or hereafter securing the indebtedness evidenced hereby, then, and in any such events, Holder may, at its option, declare this Note and the entire indebtedness hereby evidenced, including, without limitation, all accrued interest, to be immediately due and payable and collectible then or thereafter as Holder may elect, regardless of the date of maturity, and notice of the exercise of said option is hereby expressly waived by Maker. 6. Collection Costs; Attorneys' Fees. If this Note is not paid when due, whether at maturity or by acceleration, Maker promises to pay all costs of payment hereof or enforcement of any guarantee, incurred by Holder on account of such collection, whether or not suit is filed hereon. 7. Waivers by Maker. Maker and all endorsers, guarantors and persons liable or to become liable on this Note waive presentment, protest and demand, notice of protest, demand and dishonor and nonpayment of this note and consent to any and all renewals and extensions near the time of payment hereof and agree further that at any time and from time to time without notice, the terms of payments herein may be modified or the security described in any documents securing this Note released in whole or in part, or increased, changed or exchanged by agreement between Holder and any owner of the premises by agreement between Holder and any owner of the premises affected by said documents securing this Note, without in any way affecting the liability of any party to this Note or any persons liable or to become liable with respect to any indebtedness evidenced hereby. 17 i S. Severability. The unenforceability of invalidity of any provision or provisions of this Note as to any persons or circumstances shall not render that provision or those provisions unenforceable or invalid as to any other provisions or circumstances, and all provisions hereof, in all other respects, shall remain valid and enforceable. 9. Modifications. Neither this Note nor any term hereof may be waived, amended, discharged, modified, changed or terminated orally; not shall any waiver of any provision hereof be effective except by an instrument in writing signed by Maker and Holder. No delay or omission on the part of the Holder in exercising any right hereunder shall operate as a waiver of such right or any other right under this Note. 10. No Waiver by Holder. No waiver of any breach, defaults or failure of condition under the terms of this Note shall be implied from any failure of the Holder of this Note to take, or any delay be implied from any failure by the Holder in taking action with respect to such breach, default or failure. 11. usury. Notwithstanding any provision in this Note, Deed of Trust or other document securing same, the total liability for payment in the nature of interest shall not exceed the limit now imposed by applicable laws of the State of California. 12. Governing Law. This Note has been executed and delivered by Maker in the State of California securing same, the total liability for payment in the nature of interest shall not exceed the limit now imposed by applicable laws of the State of California. IN WITNESS WHEREOF, Maker has executed this Note as of the date and year first above written. Palm Springs Community Redevelopment Agency By: Executive Director ATTEST: Secretary APPROVED AS TO FORM: City Attorney EXHIBIT "C" GRANT DEED FREE RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: CITY OF PALM SPRINGS, CALIFORNIA 3200 East Tahquitz Canyon Way Palm Springs, California 92263 Attn: David J. Aleshire Order No. GRANT DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a public body, corporate and politic hereby grants to the CITY OF PALM SPRINGS, a California municipal corporation, the real property in the City of Palm Springs, County of Riverside, State of California, described in Exhibit 11111 attached hereto and incorporated herein, by reference subject to the existing easements, restrictions and covenants of record thereon (the "Property") . Dated: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a public body, corporate and politic By: Chairman ATTEST: Agency Secretary EXHIBIT "C" TO AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY 627/014084-0006/3158575.1 a05/01/98 1 EXHIBIT "1" LEGAL DESCRIPTION OF REVISED PARKING PARCEL The Revised Parking Parcel is located in the City of Palm Springs, County of Riverside, State of California, more particularly described as follows: 627/014084-0006/3158575.1 n05/01/98 -2- G.Y. 315127 - RECEIVED FOR RECORD AT 8:00 AID GRANT DEED JUL 3 0 1998 FREE RECORDING REQUESTED BY PAWdd In O&W Remrth AND WHEN RECORDED RETURN TO: dffiv"CoAlcw-i° Recorder Fees i �. CITY OF PALM SPRINGS, CALIFORNIA �UQ 3200 East Tahquitz Canyon Way a 7�3 Palm Springs, California 92263 Attn: �—J�' es ' ' l M . Order No. GRANT DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a public body, corporate and politic hereby grants to the CITY OF PALM SPRINGS, a California municipal corporation, the real property in the City of Palm Springs, County of Riverside, State of California, described in Exhibit "1" attached hereto and incorporated herein, by reference subject to the existing ,easements, restrictions and covenants of record thereon (the "Property" ) . Dated: /COMMUNITY. REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, , a public body, corporate and politic By: Chairman ATTEST: / g ncy Secretary 627/014084 WW3158575.1 A5/01/98 1 315127 EXIBIT "1" GR. DEED AGENCY TO CITY PAGE 1 of 2 R-92-014 LEGAL DESCRIPTION OF REVISED PARKING PARCEL The Revised Parking Parcel is located in the City of Palm Springs, County of Riverside, State of California, more particularly described as follows: PARCEL 1 OF PARCEL MAP NO. 27774 AS RECORDED IN PARCEL MAP BOOK 190 AT PAGES 57 AND 58, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. EXHIBIT " 1 " EXIBIT "It' 4kR.SEC 15 T . 4S . I R . 4E GR. DEED `315�Z'f AGENCY To CITY CITY OF PALM SPRINGS PAGE 2 of 2 R-92-014 56 --T- H N09-17-� D_— A 1 r � f1 Il � u 1 � 1i'�— — I I a5 E5 16 fi0 5 1 7 1 6 1 9 116 11 12 1 3 1 4 1 5 1 6 1 7 1 8 1 9 110 �e ie OEl I I I I I I I I i l l l l l m 6 I I I I cb 1 Southern California Edison m 2 Easement I I I I 1 E. 18FT of the N.20ft & E. 12ft of the N. 60ft of m L L -L Parcel 1, of M.P. 27774. e 11 1 I � N o m 57.0 • m 11/.79 4 1. 0 12 m n 2� Ph 190157 13 Par 1 '-m m I Par 2 I 2 < 1, m �m I i m l5 m 1.33 AC ML m m � 16 I l9 18 17 ` I I q 21.93 \ 25 26 4e I I LVhJ 49 E5 t5 a 190/57 144.6\ 2 I EXHIBIT " 1 if 0 0 315127 State of California SS. County of Riverside G On - �j / before me, ELAINE L. WEDEKIND, Notary Pub ic, personally appeared *** WILLIAM G. KLEINDIENST & JUDITH SUMICH ***, personally known to me to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the persona, or the entity upon behalf of which the persons acted, executed the instrument. WITN S my hand and offici, al . Notary Public ELAINC L.WEDEKND r COMM.4�1063357 z ,`n'>l;.r t: Notary Public—California Z ry \t7.'�ti8,1 fi RIVERSIDC COUNTY ' My Comm E:,-:m3 f-EB 3,1999 it • • 315127 CERTIFICATE OF ACCEPTANCE THIS IS TO CERTIFY that the interest in real property conveyed by GRANT DEED dated: June 11, 1998 from, COMMUNITY REDEVELOPMENT AGENCY, a public body corporate and politic Grantor, to the CITY OF PALM SPRINGS, a municipal corporation, Grantee is hereby accepted by the City Clerk of said City of Palm Springs, on this 28th day of July, 1998, pursuant to authority granted by the City Council of said City, by Resolution No. 19241 made on the 6th day of May, 1998, and the Grantee consents to ecordation thereof by the City Clerk, its duly authorized officer. Dated at Palm Springs, California, this 28th day of July, 1998.8. JUDITH SUMICH City Clerk Rev. 3/98 DO NOT DESTROY THIS NOTE: When paid, this Note, with the Deed of Trust securing same, must be surrendered to Trustee for cancella- tion before reconveyance will be made. PROMISSORY NOTE SECURED BY DEED OF TRUST 1 $546, 970. 00 May �.L) , 1998 Palm Springs, California FOR VALUE RECEIVED, the undersigned ("Maker") hereby promises to pay to the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a public body, corporate and politic ("Holder") , at a place designated by Holder, the principal sum of FIVE HUNDRED FORTY SIX THOUSAND NINE HUNDRED SEVENTY DOLLARS ($546,970) , together with interest thereon at six percent (6%) per annum commencing on May 1998 ("Interest Accrual Commencement Date") . 1. Repayment by Maker. Maker shall pay monthly installments of principal and interest in the amount of NINE THOUSAND SIX HUNDRED SIXTY THREE DOLLARS AND FOURTEEN CENTS ($9663 . 14) each to Holder in lawful money of the United States, commencing on the first day of the first full calendar month following the calendar month during which the Interest Accrual Commencement Date occurs and continuing on the first day of each calendar month thereafter until principal and interest has been fully paid; provided that the payment due on the first day of the first full calendar month following the calendar month during which the Interest Accrual Commencement Date occurs shall be prorated based on a thirty (30) day month. If not sooner paid, the unpaid principal balance and accrued interest hereunder shall be due and payable five years from the Interest Accrual Commencement Date. Any payments made by Maker in payment of this Note shall be applied first to the interest then accrued and due on the unpaid principal balance under this Note, and the remainder of each payment shall be applied to the reduction of the unpaid principal. 2 . Prepayment. This Note may be prepaid in whole or in part at any time without penalty. 3 . Note Secured by Deed of Trust. This Note is secured by a Grant Deed and Assignment of Rents of even date herewith, encumbering certain real property located in the County of Riverside, State of California, more particularly described therein, and any other instruments, now or hereafter executed by Maker in favor of Holder, which in any manner constitute additional security for this Note ("Grant Deed") . 4 . Late Charge. Maker agrees that if Maker fails to make any payment provided for herein more than ten (10) days after the due date thereof, it would be impracticable or extremely difficult to fix the actual damages resulting therefrom to Holder, and, therefore, Maker hereby agrees to pay to Holder a late charge equal 627/014084-0006/3158575,1 n05/01/98 1 to five percent (5%) of any payment which is not made within ten (10) days after the due date thereof, not as a penalty, but for the purpose of defraying the expenses incident to handling such delinquent payment. Such late charge represents the reasonable estimate of a fair average compensation for the loss that may be sustained by Holder due to the failure of Maker to make timely payments. Such late charge shall be paid without prejudice to the right of Holder to collect any other amount provided to be paid or to declare a default under this Note or the Grant Deed securing same. Such late charge shall be payable not later than thirty (30) days after the due date of the delinquent payment and shall be secured by the Grant Deed. 5. Acceleration of obligation. Upon the failure to make payment of any installment due under this Note as and when the same becomes due and payable (whether by extension, acceleration or otherwise) , or in the event of default under the Grant Deed, or any breach of any other promise or obligation in this Note or in any other instrument now or hereafter securing the indebtedness evidenced hereby, then, and in any of such events, Holder may, at its option, declare this Note and the entire indebtedness hereby evidenced, including, without limitation, all accrued interest, to be immediately due and payable and collectible then or thereafter as Holder may elect, regardless of the date of maturity, and notice of the exercise of said option is hereby expressly waived by Maker. 6. Collection Costs; Attorneys' Fees. If this Note is not paid when due, whether at maturity or by acceleration, Maker promises to pay all costs of collection, including, but not limited to, attorneys' fees and all expenses incurred in connection with the protection or realization of the collateral securing the payment hereof or enforcement of any guarantee, incurred by Holder on account of such collection, whether or not suit is filed hereon. 7. Waivers by Maker. Maker and all endorsers, guarantors and persons liable or to become liable on this Note waive presentment, protest and demand, notice of protest, demand and dishonor and nonpayment of this Note and any and all other notices or matters of a like nature, and consent to any and all renewals and extensions near the time of payment hereof and agree further that at any time and from time to time without notice, the terms of payment herein may be modified or the security described in any documents securing this Note released in whole or in party or increased, changed or exchanged by agreement between Holder and any owner of the premises affected by said documents securing this Note, without in any way affecting the liability of any party to this Note or any persons liable or to become liable with respect to any indebtedness evidenced hereby. 8 . Due on Sale; Due on Encumbrance. In the event Maker shall, directly or indirectly, voluntarily or involuntarily, sell, enter into a contract of sale, assign, transfer, dispose of, alienate or further encumber or agree to sell, enter into a contract of sale, alienate, assign, transfer or dispose of all or 627/014084-0006/3158575.1 a05/01/98 2 o any portion of any interest in the property which is the subject of the Grant Deed without obtaining Holder's prior written approval, then, or at any time thereafter, Holder, at its option, may declare the entire indebtedness evidenced hereby immediately due and payable. 9. Severability. The unenforceability or invalidity of any provision or provisions of this Note as to any persons or circumstances shall not render that provision or those provisions unenforceable or invalid as to any other provisions or circumstances, and all provisions hereof, in all other respects, shall remain valid and enforceable. 10. Modifications. Neither this Note nor any term hereof may be waived, amended, discharged, modified, changed or terminated orally; nor shall any waiver of any provision hereof be effective except by an instrument in writing signed by Maker and Holder. No delay or omission on the part of Holder in exercising any right hereunder shall operate as a waiver of such right or of any other right under this Note. 11. No Waiver by Holder. No waiver of any breach, default or failure of condition under the terms of this Note or the Grant Deed or the obligation secured thereby shall be implied from any failure of the Holder of this Note to take, or any delay be implied from any failure by the Holder in taking action with respect to such breach, default or failure from any prior waiver of any similar or unrelated breach, default or failure. 12 . Usurv. Notwithstanding any provision in this Note, Grant Deed or other document securing same, the total liability for payment in the nature of interest shall not exceed the limit now imposed by applicable laws of the State of California. 13 . Governing Law. This Note has been executed and delivered by Maker in the State of California and is to be governed and construed in accordance with the laws thereof. 627/014084-0006/3158575.1 a05/01/98 3 IN WITNESS WHEREOF, Maker has executed this Note as of the date and year first above written. "Maker" CITY OF PALM- SPRI Si a mu- ' cipal corpo9- gn By: City (Ma—nager ATTEST: 1p Sl— C,L City lerk APPROVED AS TO FORM: 'E�lty' AtW6ey' B y laq 627/014084-0006/3158575.1 a05/01/98 4