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HomeMy WebLinkAboutA3582 - SOUTHERN PACIFIC RAIL PLATFORM RAILWAY TRAIN RECORDING REQUESTED RY 255964 0 RECEIVED FOR RECORD r AT SIN O'CLOCK AND WHEN REC/qq,DE D/MAIL TO Name �, City/ of Palm Springs F ..dwInUNGWRmd' CP_eflema e- Demerrt/ � Slra at Addracr: i, Re-de+re-�opment-t-Department � P.O. Box 2743 Fe.af Qny L—` Palm Springs, CA 92263 State Zip \ SPACE ABOVE THIS LINE FOR RECORDER'S USE Southern Pacific Transportation Rail Passenger Platform AGREEMENT #3582 CM, 6-30-94 EASEMENT AGREEMENT -- _ - - THIS EASEMENT AGREEMENT is made this - 6 day of by and between SOUTHERN PACIFIC TRANSPORTATION COMPANY, a Delaware corporation, herein termed "Grantor" , and THE CITY OF PALM SPRINGS, a municipal corporation of the State of California, herein termed "Grantee"; WITNESSETH: 1. Grantor hereby grants to Grantee a non-exclusive Easement for the Palm Springs Passenger Terminal and other _public transportation facility purposes, including but not limited to the right to place the facilities appurtenant thereto, in, under, over, through and across the parcel of land within the City of Palm Springs, County of Riverside, State of California, containing approximately 3.135t acres, located near the corner of Indian Avenue and Garnet Station Road and more particularly described on Exhibit "A", which is attached hereto and made a part hereof. During Grantee' s period of construction, Grantee, its officers, employees, agents and persons under contract to the Grantee, shall have the right to enter upon and to pass and repass over and along said Easement and to deposit and use tools, implements and other materials thereon and therein for the initial construction and reconstruction and the maintenance, use and operation of, the above-described facilities. Following the period of construction, said Easement shall be used by general public as a public transportation facility. Grantee hereby acknowledges that Grantor will have a continued need to have access over, across and through the Easement Area for access to Grantor' s rail operations, and that the Easement granted herein is subject to said access rights. Page 1 of 4 Southern Pacific Real Estate Enterprises ��j 1200 CORPORATE CENTER DRIVE-SUITE 100 •MONTEREY PARK,CA 91754-7605 TEL(213)98"939 •FAX(213)980-6923 In reply,please refer to: Palm Springs - City of Palm Springs - SRN 3363 June 8, 1995 VIA FEDERAL EXPRESS Mr. John Tuite City of Palm Springs Economic Development/Redevelopment Dept. P.O. Box 2743 Palm Springs, CA 92263-2743 Re: Easement for the Palm Spring:; Railway Passenger Terminal at Palm Springs (Garnet) , California Dear Mr. Tuite: This to advise that I would be willing to recommend to our management that a sale be progressed under the following general terms and conditions: 1 . SELLER Seller is SOUTHERN PACIFIC TRANSPORTATION COMPANY ("Seller") , a Delaware corporation. 2. BUYER Buyer is CITY OF PALM SPRINGS ("Buyer") , a municipal corporation of the State of California. 3. PROPERTY The property is approximately 4.605± gross and net acres as shown on the attached EXHIBIT "A" ("Property") . Document 0043 Page 1 of 9 A Division of Southern Pacific Rail Corporation 4. PURCHASE PRICE 4.1 The purchase price for, the Property shall be FORTY THOUSAND ONE HUNDRED NINETEEN DOLLARS ($40,119.00) ("Purchase Price") , payable in cash at closing. 4.2 Buyer may at its option perform a survey of the Property. The performance of the survey shall be subject to the terms of Section 11 below. The survey shall be performed at Buyer' s sole cost and expense by a firm approved by Seller. Before completing the survey, Buyer shall submit the survey to Seller for review and approval . Buyer shall deliver a certified copy of the completed survey to Seller within sixty (60) days after the date that Seller's management approves this proposal pursuant to Section 14 below. 5. FORM OF CONVEYANCE Conveyance of title to the Property shall be by Easement Agreement in the form of attached EXHIBIT "B" ("Agreement"). 6. TITLE REPORT Buyer shall obtain a preliminary title report and forward a copy of that preliminary report to Seller. Buyer shall notify Seller in writing within ten (10) days following its receipt of the preliminary report if Buyer objects to any lien, encumbrance or other exception to title disclosed therein. Seller shall have ten (10) days in which to cure any such objection. If any such objection is not cured by Seller or waived by Buyer in writing within that 10-day time period, then this proposal shall automatically terminate and Buyer' s deposit shall be refunded, less escrow cancellation fees and costs and title company charges, all of which Buyer hereby agrees to pay. 7. DEPOSIT a .T On the d �ctha-t 6u-y-e.r-s-i4as-th_i-s-pr-apesa-l-.Zuyer-shal-l-deposit$- 4-O0o00 wi-ttr-tlhe-ii-t}e-C-ompan�1ef-i-ned-in--Seed on-8-be-low-)to--be-held-a-s-an e-a ..._..e;" d-posit. 1-f--Seller'-s-mwiapment approves-this-proposa-l-and �y✓!� Buyer-pet=forms its oblig,atinns-hereunder,—then-the-depos-it sha-l-l-be- �/� applied tnward-the-Pnr-chase-P-r-ice-at e}os-ing:—I-f Se-l-ler=s-management SSaRRn"ec this nrnpnca�ndi Bu-yer--de--ault-5 to its-ob-li-gations-hereunder-, 1 J then-Seller=h�� "4v-e tke-r-ght to-terni-inate-this-proposa-l-and-r-etain-the dapncit ac liquidated damages_.--I-£-Se-1-1-er's-management-rejects-this R--nasal , then the depos-i-t-sha-l-l-be-re-funded--to-Buyer;-where upon this pr&posa4---shal-a--au-amat-ic-al+f-i:er-mi hate-and-become-null--and-vo-i d--Any es-&Fe d--eai4roe-laa-tien-fees- �� nd—rt4e-c-ompan -c-harges-sha-l-l-be ber-nee by buyer. Document 0043 Page 2 of 9 8. CLOSING Closing shall occur on or before the date thirty (30) days after the date that Seller delivers notice to Buyer that Seller' s management has approved this proposal . (The actual date of closing is sometimes referred to herein as the "Closing Date"). The City of Palm Springs shall wire transfer funds into Southern Pacific' s Account Number 00331-12140, ABA 121000358, at Bank of America NT & SA Main Office, 345 Montgomery Street, San Francisco, California, 94104, immediately upon receipt of documents executed by Southern Pacific Transportation Company. The City of Palm Springs will be acting as a fiduciary by holding said documents in an internal escrow. Under no circumstances are the documents to be recorded until the City of Palm Springs has delivered to Southern Pacific funds in the amount of $40, 119.00. After transfer of funds, the City of Palm Springs shall cause the Agreement to be recorded and all recording fees and related costs shall be borne solely by the City of Palm Springs. Copy of the recorded Agreement shall be returned to Seller. Property taxes and any possessory interest taxes shall not be prorated, but shall instead be borne entirely by Seller before recording. Seller shall be responsible for obtaining reassessment of the land by the State Board of Equalization and cancellation of taxes at the earliest possible date, and shall be entitled to receive refund of taxes previously paid, if any, as provided by law. Assessments of record set forth in any title report which are not yet due shall be assumed by the Buyer. 9. REAL ESTATE COMMISSION The parties acknowledge and represent that there is no person or entity entitled to a commission, finder' s fee or other like compensation arising out of the transactions contemplated hereby. In the event any claim to a commission, finder' s fee or other like compensation is asserted by any person or entity, the party who is alleged to have created the relationship leading to the commission, finder' s fee or other like compensation shall indemnify and hold the other party harmless from such claim. 10. ENVIRONMENTAL DISCLOSURE 10.1 Buyer acknowledges that Seller has held title to the Property since March, 1871 and that the Property has been used for railroad purposes, including, without limitation, possible uses as warehouse facility, industrial site, or other purposes. For this reason, Seller believes that a release of hazardous substances or materials, including petroleum or asbestos, may have occurred on, in, beneath Document 0043 Page 3 of 9 or near the Property or in the groundwater underlying or near the Property. Seller has not undertaken a specific environmental audit of the Property or reviewed past records to determine the fact or possibility of a release of any such hazardous substance or material . Buyer is advised to undertake a thorough investigation of the Property prior to concluding the proposed purchase of the Property. If Buyer undertakes such an investigation, the investigation must be concluded within 30 days of Buyer' s execution of this proposal . Under no circumstances shall Seller be expected to cure any condition discovered or revealed by any investigation by Buyer. 10.2 Buyer represents and warrants to Seller that, as of the Closing Date, Buyer will have satisfied itself as to the physical condition of the Property. In so doing, Buyer will rely solely upon its own inspection and investigation and not upon any representation or warranty made by Seller or any of its agents or other representatives, except as expressly set forth herein. Buyer shall take title to the Property in "AS IS" condition and subject to all physical defects and all contamination (if any) of soils or groundwater by hazardous wastes or other substances. Effective as of the Closing Date, Buyer hereby releases Seller and its employees, agents and affiliates from, any claim, loss, liability, or expense, regardless of legal theory, arising out of any soil or groundwater contamination on, under or adjacent to the Property, or the storage or disposal of wastes of any kind on the Property, including without limitation costs of clean-up, civil penalties assessed for such contamination, disposal or other remedial or preventative action. 10.3 Buyer represents and warrants that, as of the Closing Date, Buyer will have satisfied itself as to the state of title to the Property and its suitability for the uses proposed by Buyer. In so doing, Buyer will rely solely upon its own inspection and investigation. Buyer acknowledges that Seller shall not be deemed to have made or given (and Seller hereby expressly disclaims) any warranty, express or implied, as to the value or fitness for use of the Property or the suitability of I'he Property for development or any other representation or warranty, express or implied, with respect to the Property, except as expressly set forth herein. 10.4 The representations, warranties and covenants set forth in this Section 10 shall survive the closing and the delivery of the Deed. 11. RIGHT-OF-ENTRY 11 .1 To the extent permitted by existing leases, upon not less than forty-eight (48) hours ' advance written notice to Seller, Buyer and Buyer' s agents may enter onto the Property at all reasonable times during the Review Period (as defined in Section 15 below) to make Document 0043 Page 4 of 9 tests, surveys, studies and inspections in connection with the purchase of the Property by Buyer, provided that prior to any exercise of said right: and continuing up to the Closing Date, Buyer shall (a) arrange for and keep and maintain in full force and effect a policy of comprehensive general liability insurance, with broad form liability endorsement, having a combined single limit of not less than TWO MILLION DOLLARS ($2,000,000) per occurrence, and (b) furnish to Seller a certificate of such insurance which names Seller as an additional insured and provides that such policy shall not be canceled or amended without thirty (30) days ' prior written notice to Seller. Seller or Seller' s agents or employees shall be entitled to accompany Buyer and Buyer's agents during any entry made by Buyer or Buyer' s agents onto the Property pursuant to this Section 10. Any entry by Buyer or Buyer' s agents pursuant to this Section 10 shall be made in a manner which results in the least interference with the use of the Property by Seller or any third party. Buyer shall indemnify and defend Seller against, and hold Seller and the Property harmless from and against, any and all costs, expenses (including, without limitation, attorneys ' fees) , damages, claims, liabilities, liens, encumbrances and charges arising out of or in any way related to any entry by Buyer or Buyer' s agents upon the Property, unless such matters arise from the negligence of Seller. The foregoing obligation of Buyer shall survive the closing or the termination of this proposal . Buyer shall repair any damage to the Property as a result of or caused by the entry by Buyer or Buyer' s agents onto the Property and restore the Property to the condition existing on the date immediately prior to Buyer' s entry onto the Property. All costs incurred in connection with tests, surveys, studies, inspections, reviews, approvals, determinations and applications made by or on behalf of Buyer under this proposal or in connection with Buyer' s proposed use of the Property shall be the sole responsibility of and be paid by Buyer. In the event of the recordation of any claim of lien against the Property for materials supplied or labor or professional services performed on behalf of Buyer, Buyer shall promptly satisfy and discharge such lien at Buyer' s sole cost and expense upon demand therefor by Seller. 11 .2 In addition to Buyer' s obligations under Section 11.3 below, Buyer shall provide to Seller a copy of each report, study, regulation or ordinance obtained by Buyer in connection with its investigation of the Property, at no cost to Seller. Document 0043 Page 5 of 9 11.3 In order to determine the existence or presence of any hazardous substances or materials in or about the Property, Buyer shall have the right, during the Review Period and at Buyer' s sole cost and expense, to conduct such studies, evaluations, audits or surveys as Buyer deems appropriate (collectively, "Environmental Surveys") , subject to Section 11.1 above and the following terms and conditions: A. Seller shall have the right to approve any and all engineers, consultants or other persons (collectively, "Consultants") Buyer intends to retain to conduct any Environmental Survey; B. Seller shall have the right to approve, review and monitor any and all physical tests, studies and procedures in or about the Property which are made or implemented in connection with any Environmental Survey, including, without limitation, the review and approval of the number, type, extent and location of any test or monitoring wells or drillings; C. Neither Buyer nor any Consultant shall make any contacts or communications to any governmental agency, department, district or board in connection with any Environmental Survey without the prior written approval of Seller, unless required by applicable law; D. All written reports, evaluations and surveys produced by any Consultant in connection with any Environmental Survey (whether preliminary, interim or final in nature) shall be submitted to Seller concurrently with the submission of such item to Buyer; E. Prior to the issuance of any final report by any Consultant which will set forth any "baseline" determination for the Property and/or any recommendation relating to the removal , monitoring, cleanup or containment of any hazardous substance or material , Seller shall be given the opportunity to make comments, pose questions and offer recommendations to the Consultant(s) preparing such report(s) ; F. Buyer and each Consultant shall maintain in confidence any and all information, reports, evaluations and surveys generated in connection with any Environmental Survey, and neither Buyer nor any Consultant shall make any disclosure of any such information, reports, evaluations and surveys to any other person or entity without the prior written consent of Seller, provided that Buyer may disclose results to its legal counsel and other consultants and, if required by applicable law, by a court or administrative order. If Buyer or its legal counsel/consultants believe in its reasonable good faith Document 0043 Page 6 of 9 judgement that it has an obligation to make any report about the environmental condition of the Property to any local , state or federal regulatory agency, Buyer shall first provide written notice to Seller and give Seller an opportunity to participate in making such report to such agency, or, at Seller' s discretion, the option of making such report itself; G. Seller will cooperate with Buyer in arranging access with lessees and Buyer agrees to make every effort not to unnecessarily interfere with any lessee' s operations; and H. Buyer agrees to provide each Consultant with copy of this Section 11 and obtain such Consultant' s agreement to abide by the terms and conditions hereof. 11 .4 No termination of this proposal shall relieve Buyer from any liability for any damages incurred by Seller by reason of a breach by Buyer of any of the terms of this Section 11 . 12. FURTHER ASSURANCES Seller and Buyer agree to perform such other acts and execute, acknowledge and deliver such other documents as may be reasonably required to effect the purpose of this proposal . 13. TIME LIMIT This proposal shall become null and void if not signed by Buyer and received by Seller by June 23, 1995. Buyer' s acceptance of the terms and conditions set forth in this proposal shall be indicated by signing, dating, and returning one original copy of this letter to Seller. 14. MANAGEMENT APPROVAL Notwithstanding the execution of this proposal by Seller or anything to the contrary herein, this proposal is subject to the review and approval by Seller' s management and Buyer acknowledges this understanding by signing in the acceptance space provided on Page 9 hereof. 15. REVIEW PERIOD 15.1 During the period commencing on the date of the approval of this proposal by Seller's management and ending 30 days later ("Review Period") , Buyer shall : A. Perform its own investigation with local agencies concerning flood control , zoning, the availability and cost of utilities, fire flow requirements and suitability of the Property for future development. Document 0043 Page 7 of 9 B. Review and approve the environmental condition of the Property. 15.2 If Buyer fails to approve the matters described herein within the applicable time period, Seller may extend the Closing Date or terminate this proposal . Should Seller elect to terminate this proposal pursuant to this Section 15, Buyer' s deposit shall be refunded, less only escrow cancellation fees and costs and title company charges, all of which Buyer hereby agrees to pay, and neither Buyer nor Seller shall have any further liability hereunder. 16. MISCELLANEOUS The contract resulting from the approval of this proposal by Seller's management contains the entire agreement of Seller and Buyer and cannot be amended or modified except by a written agreement signed by both Seller and Buyer. Buyer may not assign its rights hereunder without Seller' s prior written consent, which may be withheld at Seller' s sole discretion. Subject to the foregoing, the contract so formed shall inure to the benefit of and be binding upon the parties' respective successors and assigns. If any litigation between the parties arises out of the contract so formed, the prevailing party shall be entitled to recover from the other party the reasonable costs and attorneys' fees it incurs therein. After receiving Buyer' s signed acceptance of the terms and conditions set forth in this proposal within the time period specified in Section 13 above, this matter shall be progressed further to obtain formal approval of Seller' s management. Very truly yours, SOUTHERN PACIFIC TRANSPORTATION COMPANY Wr"(� R.L. Stacy Vice President-Regional Director, SPREE as Agent for Southern Pacific Transportation Company (213) 980-6901 MST:jd12788 Document 0043 Page 8 of 9 i ! TERMS AND CONDITIONS SET FORTH ABOVE ARE AGREED TO AND ACCEPTED THIS DAY OF 19 IT IS UNDERSTOOD THAT THIS AGREEMENT AND ITS TERMS AND CONDITIONS ARE BOTH SUBJECT TO THE REVIEW AND FINAL APPROVAL BY THE MANAGEMENT OF SOUTHERN PACIFIC TRANSPORTATION COMPANY. BUYER: CITY OF PALM SperNr,S a municipal corpoora_ t` e State of California APPROVED AS TO 63M By: Title: ill- 77e��ur_Cum Crty-A4ixm ATTEST: Gate �- la-9S f a Title: SELLER'S MANAGEMENT APPROVES THE ABOVE PROPOSAL. SOUTHERN P E IC d RA i�0 , ATION COIMPANY ad ' By: i Title:Vice P r e s id e n t -R e Director, SPREE as Agent for Southern Pacific Transportation Com any Date: Document 0043 Page 9 of 9 T.3S.,R.4E.,S.B.B.& M. GARNET SEC.22 �9y\°tip\sEC.23 11\2. - 1 c 9 O V sB ------- 41✓, t: \ 8 w.a 4 - - � -/7774° g T E I "p. 2 S A 5 •�%v q av T 7L7 EL ASo E OF MAINLINE(Y MA MAIN) / c G A. -------------- ' I I 0=5853Z. TPA � a��5 r' kOF EXISTING FIBER OPTIC CABLE FOR MCI OF EXISTING 2°'PETROLEUM PIPELINE FOR SFPPL \ N _ 9 • \E OF EXISTING 1:•PETROLEUM PIPELINE FOR SFPPL yF \ o � Q�I / e 100 0 100 200 U� SCALE IN FEET Y w a SPTCO. PROPERTY LINES Southern Pacific Lines m; cl s o� o GRANT OF EASEMENT FOR 200,594± SOFT. OR 4.605± ACS. REAL ESTATE DEPT, - WESTERN REGIONfSOUTH PASSENGER TERMINAL PURPOSES GARNET GRANT OF EASEMENT TO THE CITY OF PALM SPRINGS SC.LE ". 'AL.SEC. S.EETS.7 ORAMN BY C CHECKED BY p TE NO. N., OR..ING NO, kogLk FIBER OPTICS INVOLVED SFPPL INVOLVED DATE SHEET NO to REVISED TO FILE DR"EF EASEMENT AGREEMENT THIS EASEMENT AGREEMENT is made this day of 19_, by and between SOUTHERN PACIFIC TRANSPORTATION COMPANY, a Delaware corporation, herein termed "Grantor" , and THE CITY OF PALM SPRINGS, a municipal corporation of the State of California, herein termed "Grantee" ; WITNESSETH: 1. Grantor hereby grants to Grantee a non-exclusive Easement for the Palm Springs Passenger Terminal and other public transportation facility purposes, including but not limited to the right to place the facilities appurtenant thereto, in, under, over, through and across the parcel of land within the City of Palm Springs, County of Riverside, State of California, containing approximately 3.135± acres, located near the corner of Indian Avenue and Garnet Station Road and more particularly described on Exhibit "A" , which is attached hereto and made a part hereof. During Grantee' s period of construction, Grantee, its officers, employees, agents and persons under contract to the Grantee, shall have the right to enter upon and to pass and repass over and along said Easement and to deposit and use tools, implements and other materials thereon and therein for the initial construction and reconstruction and the maintenance, use and operation of, the above-described facilities. Following the period of construction, said Easement shall be used by general public as a public transportation facility. Grantee hereby acknowledges that Grantor will have a continued need to have access over, across and through the Easement Area for access to Grantor' s rail operations, and that the Easement granted herein is subject to said access rights. 2. This grant is made subject to all licenses, leases, easements, restrictions, conditions, covenants, encumbrances, liens and claims of title which may affect said property and the word "grant" as used herein shall not be construed as a covenant against the existence of any thereof. Notwithstanding any other provision, this grant of easement is subject to that certain communications easement agreement dated November 9, 1987 between Grantor and MCI Telecommunications. Following recordation of this easement and/or following any transfer or assignment Grantee (and/or any subsequent successor or assign) shall promptly deliver, or cause to be delivered, to MCI Telecommunications Corporation, 1801 Pennsylvania Avenue, N. W. , Washington, D. C. , 20006, Attention: Vice President, Exhibit "B" Page 1 of 4 Technical Planning, with copies to MCI Telecommunications Corporation, 1133 19th Street, N.W. , Washington, D.C. , 20036, Attention: Assistant General Counsel/Real Estate, Department 0598/003 and MCI Telecommunications Corporation, 400 International Parkway, Richardson, Texas, 75081, Attention: Director of Systems Development, the mailing address of the Grantee (and/or its successors and assigns if applicable) . Notwithstanding any other provision, this grant of easement is also subject to that certain pipeline indenture dated February 1 , 1995 between Grantor and the Santa Fe Pacific Pipe Lines, L.P. , successor in interest to Southern Pacific Pipelines. 3. Grantee shall bear the entire cost and expense of constructing and maintaining the Palm Springs Railway Passenger Terminal in said Easement Area. If reasonably required for Grantee' s proposed development, Grantor will cooperate with Grantee in attempting to arrange for the relocation of existing easements, licenses, leases or agreements now located within the Easement Area, to other locations within the Easement Area, or outside the Easement Area; and Grantor will cooperate in the granting of easements to third party public utilities inside the Easement. Grantee hereby agrees to bear all costs and expense of any such relocations or additional grants, and to make advance payment, if required, for such relocation costs. 4. Grantee shall , at its expense, comply with all applicable laws, regulations, rules and orders regardless of when they become or became effective, including, without limitation, those relating to health, safety, noise, environmental protection, waste disposal , and water and air quality. S. Grantee shall cooperate with Grantor to ensure the safety of Grantor' s adjoining track(s) during the time of construction, maintenance, repair, modification or reconstruction of the above-described facilities. Grantee shall restore and replace the surface of the ground and any improvements on the above-described Easement which are disturbed, and shall repair any and all damage to Grantor' s property above, below and adjoining said Easement, which results from or is caused by or arises out of Grantee's construction, reconstruction, maintenance, use and operations in the Easement Area or adjacent thereto. 6. Grantee agrees that no assessments will be levied against the property of Grantor to defray any part of the expense incurred in connection with any construction in the Easement Area. Grantee shall not allow any tax, mechanics, materialmen's, lender' s or any other lien to be enforced against the interest of Grantor in the real property covered by the Easement granted herein. Exhibit "B" Page 2 of 4 "Property taxes and any possessory interest taxes shall not be prorated, but shall instead be borne entirely by Grantor before recording. Grantor shall be responsible for obtaining reassessment of the land by the State Board of Equalization and cancellation of taxes at the earliest possible date, and shall be entitled to receive refund of taxes previously paid, if any, as provided by law. Assessments of record set forth in any title report which are not yet due shall be assumed by the Grantee. " 7. Insofar as it lawfully may, Grantee agrees to investigate, release, defend and indemnify Grantor, its officers, employees, agents, successors and assigns from all claims, liability, cost and expense, howsoever same may be caused, including reasonable attorney' s fees, for loss of or damage to property for injuries to or death of persons arising out of the construction, reconstruction, maintenance, presence, or use of the Easement Area by Grantee, its employees, agents, licensees, invitees, successors or assigns. 8. Grantee shall fully pay for all materials installed in the Easement Area and shall pay in full all persons who perform labor thereupon. Grantee shall not permit any mechanics' or materialmen ' s liens of any kind or nature to be enforced against the property for any work done or materials furnished thereon at Grantee' s request. 9. Grantee hereby acknowledges that Grantee is accepting this Easement in an "AS IS" condition, and that it has not relied on any warranties, promises, understandings or representations, express or implied, of Grantor or its agents or employees. Grantee shall perform and rely upon its own independent investigation of the physical condition of the property; Grantee hereby releases Grantor from all responsibility and liability regarding the condition (including, but not limited to, the condition of the soil , presence of hazardous materials or contaminants and all other physical characteristics) , valuation or utility of the Easement Area. 10. Should Grantee, its successors or assigns, at any time abandon the use of said Easement, or any part thereof, or fail at any time to use the same for the purpose contemplated herein for a continuous period of three (3) years, the right hereby given shall cease to the extent of the use so abandoned or discontinued, .and Grantor shall at once have the right to assume exclusive possession of said property or the part thereof the use of which is so discontinued or abandoned. Upon termination of the rights hereby granted, Grantee shall remove said roadways and other property of Grantee, including the paving, from said Easement premises, restore said Easement premises as nearly as practicable to the same condition and state in which it existed prior to construction of said roadways and other property of Grantee, and Grantee shall bear the expense thereof. Should Grantee fail , neglect or refuse so to remove said roadways and other property of Grantee and restore said Easement premises, such removal and restoration may be performed by Grantor at Grantee' s expense. Exhibit "B" Page 3 of 4 11. Grantee acknowledges that Grantor is operating (and will continue to operate) a railroad upon its adjoining property, and recognizes that such operation may create some noises and vibrations affecting said Easement. Grantee accepts said Easement subject to such noises and vibrations, and hereby covenants to release Grantor from all liability, cost and expense resulting therefrom. This covenant shall run with said Easement, and shall be binding upon the successors and assigns of Grantee. 12. The parties intend that the promises and obligations of this grant shall bind and inure to the benefit of their respective successors and assigns. IN WITNESS WHEREOF, the parties hereto have executed this Easement Agreement and duplicate as of the day and year first herein written. GRANTOR: SOUTHERN PACIFIC TRANSPORTATION COMPANY By: Its: GRANTEE !4 CITY OF j4Z By: Its: MST/km88G8 (Easement) Exhibit "B" Page 4 of 4