HomeMy WebLinkAbout01653 - AFCOM SANTIAGO SAN RAFAEL SUNRISE LOW INCOME HOUSINGI *aFCOM Partners, Ltd - Option
Agr for 100-t ac. NW corner San
OPTION AGREEMENT Rafael/Sunrise for Housing
AGREEMENT #1653 (Orig 11-20-80)
Preamble Res. 13600 11-19-80
This Agreement made this c) day of � W)A-c•- -�, w. 1980 by and
between the City of Palm Springs, California (hereinafter referred to as
"Optionor") and AFCOM PARTNERS, LTD. (hereinafter referred to as "Optionee") ,
is based upon the following recitals of fact:
Recitals
WHEREAS Optionor is the owner of certain real property situated in the
City of Palm Springs, California (hereinafter referred to as the "Property")
and more particularly described in Exhibit "A" which is attached hereto and by
this reference made a part hereof; and
WHEREAS Optionor holds a letter offering sale of certain real property
situated in the City of Palm Springs, California, currently owned by the
Desert Water Agency, (hereinafter referred to as the "DWA Property") and more
particularly described in Exhibit "B" which is attached hereto and by this
reference made a part hereof; and
WHEREAS Optionor wishes to enter into a lease of all of said property in
the interest of furthering and carrying out its public purpose; and
WHEREAS Optionee desires to acquire the exclusive right to lease, without
becoming obligated to lease, the Property and DWA Property, and proposes to
make certain improvements on the land leased and/or demised hereunder which
improvements contemplate that the Optionee shall construct upon the leased
premises a 400 unit mobile home park and a 368 single family housing develop-
ment and related facilities and improvements and theretofore operate the
same for the benefit of low and moderate income persons ;
NOW THEREFORE, for good and valuable consideration, as herein specified,
the receipt and adequacy of which are hereby acknowledged, it is hereby agreed
between Optionor and Optionee as follows :
Option Agr.
Page 2
Grant of Initial Option
1 . Subject to the terms of this Agreement, Optionor hereby grants to
Optionee the exclusive right and option to lease the Property and, providing
that Optionor shall acquire the real property which is the subject of said Desert
Water Agency letter, Optionor further grants to Optionee the exclusive right
and option to lease the DWA Property at a price and upon the terms and conditions
set forth herein, said exclusive right and option to continue for a period of
one hundred twenty days (120), commencing upon the date hereof and ending at
11 :59 p.m. on the date which is one hundred twenty (120) days from the date
hereof.
Consideration for Initial Option
2. In consideration for the grant of the option and rights specified in
Paragraph 1 hereof, Optionee hereby agrees to pay on or before November 19 ,
1980, the sum of one dollar . If Optionee exercises its right to lease
within the original option period specified herein, said consideration (together
with the interest earned thereon) shall be credited to the ultimate lease
price of the Property and DWA Property.
Possible Further Extension of Option Period
3. In the event that Optionee is proceeding diligently with preparations
for the development of the Property and DWA Property, but has not obtained all
necessary governmental approvals required in connection therewith, then Optionor
agrees to consider granting Optionee an extension of the option period specified
herein and to act reasonably in negotiating the terms of any such extension
with the Optionee.
Covenants of Optionor
4. Optionor hereby Covenants with Optionee as follows:
(a) It will apply in conjunction with Optionee, for Federal Urban
Development Action Grant funds and sale of AB 1355 mortgage revenue bonds
under such programs that provide housing assistance to low and moderate income
households, so as to develop the Property and DWA Property with funds provided
by such program(s) , and will diligently pursue said applications in an effort
to obtain an award under said program(s) .
Option Agr.
Page 3
(b) In the event that it is successful in obtaining an award under
such program(s) as contained in Paragraph 4(a) herein, it will diligently pro-
ceed with efforts to alter the zoning in effect with respect to the Property
and DWA Property, obtain approval of all architectural review commissions and
prepare, if necessary, an Environmental Impact Report relating to the proposed
development of the Property and DWA Property.
Covenants of Optionee
5. Optionee hereby covenants with Optionor that during the option period
specified herein, or as the same may be extended:
(a) It will not cause or permit any lien, encumbrance, reservation
or other restriction (other than an involuntary restriction imposed by an
governmental authority) to be recorded with respect to the Property and DWA
Property or any portion thereof, without the prior written consent of Optionor.
(b) It will not take any action which would materially and adversely
affect the value of the Property and DWA Property.
(c) It will not take any action which will impede the abilty of the
Optionor to apply for or receive funds as referred to in Paragraph 4(a) hereof.
Exercise of Option
6. If Optionee is not in breach of this Agreement, it may exercise the
option granted herein, as may be extended, by execution and tender to Optionor
of a Lease Agreement of the Property and DWA Property, in such form as shall
therefore have been approved by Optionor. Optionor shall then immediately
execute and deliver to Optionee an executed copy of said Lease Agreement.
Automatic Termination
7. If Optionor shall be unsuccessful in obtaining the Federal Urban
Development Action Grant funds, or in selling the "AB 1355" mortgage revenue
bonds, as described in paragraph 4 (a) , or if Optionee fails to exercise this
option in accordance with its terms and within the option period, or any
extension thereof, then this option and the rights of the Optionee shall
automatically and immediately terminate without notice. Thereafter, Optionee
Option Agr.
Page 4
agrees that it will properly execute, acknowledge and deliver to Optionor
within ten (10) days after request therefore a quitclaim deed, or any other
document required by Optionor to verify the termination of this Option Agreement.
Assignment
S. Optionee shall not sell , transfer, assign or convey its interests
under this Agreement without the express written consent of the Optionor.
Such consent shall not be unreasonably withheld, provided any purchaser, assignee
or transferee assumes all of the obligations of Optionee contained herein.
Notices
9. Unless otherwise provided herein, any notice, tender, or delivery to
be given hereunder by either party to the other may be effected by personal
delivery in writing or by registered or certified mail , postage prepaid, return
receipt requested, and shall be deemed communicated as of mailing. Mailed
notices shall be addressed as set forth below, but each party may change their
address by written notice in accordance with this Paragraph.
Entire Agreement
10. This instrument contains the entire Agreement between the parties
relating to the option herein granted. Any oral representations or modifi-
cations concerning this instrument shall be of no force and effect excepting a
subsequent modification in writing, signed by all of the parties hereto.
Attorney's Fees
11 . Should legal action or arbitration become necessary to resolve any
controversy, claim or dispute between the parties hereto, arising out of or
relating to this Agreement or the breach thereof, the prevailing party shall
be entitled to recover from the losing party reasonable expenses and court
costs, including reasonable attorney's fees and those fees incurred upon any
appeals.
Option Agr.
Page 5
Binding Effect
12. This Agreement shall bind and inure to the benefit of the respective
heirs, personal representatives, successors, and assigns of the parties hereto.
Execution
IN WITNESS WHEREOF, the parties hereto have executed this Option Agree-
ment as of the day and year first above written.
AFCOM PARTNERS, LTD . ,
A California Limi "ed Partnership
OPTIONEE: BY: AFCOM INC. . General Partner
f
Address: BY: _ � .Zn --
William Dawson, President
25 Tenth Place
Long Beach California 90802
OPTIONOR: THE CITY OF PALM SPRINGS, CALIFORNIA
Address: P.O. Box 1786
Palm Sprin s Ca 92263
By
��F77
Mana9e'r
4
Attest:' ''
. ' Deputy City Clerk
REVIEWED & APPROVED:
Qity Attorney
i
STATE OF CALIFORNIA )
SS .
COUNTY OF LOS ANGELES )
On November 17 , 1980 before me, a Notary Public in and for said State,
personally appeared William T. Dawson, known to me to be the President
Of AFCOM, INC. , a California Corporation, general partner of AFCOM
PARTNERS, INC. , a California Partnership, the Partnership that executed
the Instrument, known to me to be the person who executed the within
Instrument, on behalf of the Partnership herein named, and acknowledged
to me that such Partnership executed the within Instrument.
Ip WITNESS my hand and official seal.
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WP 3248-50
EXHIBIT "A"
PROPERTY LEGAL DESCRIPTION
That portion of the southeast quarter of Section 35, Township 3 south, Range
4 east, San Bernardino Meridian, described as follows :
Beginning at the southeast corner of said Section 35 as shown
on Record of Survey recorded in Book 65, Page 33 of Maps, Records
of Riverside County;
Thence north 890 46'27.7" west, 930.00 feet along the south line
of said Section 35 to the True Point of Beginning;
Thence north 890 46'27.7" west, 1152.00 feet along said south
line;
Thence north 00' 15' 14" east, 2093.00 feet along a line parallel
to the east line of said Section 35;
Thence south 89' 46'27.7" east, 2082.00 feet along a line parallel
to the south line of said Section 35 to a point on the east line
of said Section 35;
Thence south 00' 15'14" west, 1152.00 feet along said east line
to the northeast corner of that certain parcel of land conveyed to
Desert Water Agency by deed recorded as Instrument No. 194443 on
October 3, 1977, said parcel shown on Record of Survey recorded in
Book 65, Page 33 of Maps, Records of Riverside County;
Thence north 89' 46'27.7" west, 930.00 feet along the north line
of said parcel ;
Thence south 00' 15' 14" west, 941 .00 feet along the west line of
said parcel to the True Point of Beginning.
Containing 79.947 acres more or less.
WP 3211
EXHIBIT "B"
DWA Property Legal Description
That portion of that certain parcel of land containing 20.09 acres , as shown
and delineated on Record of Survey recorded in Book 65, Page 33 of Records of
Survey, Records of Riverside County, California, being a survey of a portion
of Section 35, Township 3 south, Range 4 east, San Bernardino Base and
Meridian, in the City of Palm Springs, County of Riverside, State of California,
described as follows:
Beginning at the northwest corner of said 20.09 acre parcel ;
thence south 89' 46' 27.7" east, along the northerly line of
said 20.09 acre parcel , a distance of 200.00 feet; thence
south 00 15' 14" west, a distance of 370.00 feet; thence
south 89' 46' 27.7" east, a distance of 370.00 feet; thence
north 00 15' 14" east, a distance of 355.00 feet to a line
that is parallel with and 15.00 feet southerly of the
northerly line of said 20.09 acre parcel ; thence south
89' 46' 27.7" east along said parallel line, a distance of
185.00 feet; thence south 0° 15' 14" west, a distance of
125.00 feet; thence south 89' 46' 27.7 " east, a distance
of 175.00 feet to the easterly line of said Section 35;
thence south 0° 15' 29.3" west, along said easterly line,
a distance of 676.00 feet to a point on a line that is
parallel with and 169.00 feet northerly of the southerly
line of said Section 35; thence north 89' 46' 27.7" west,
along said parallel line, a distance of 175.00 feet;
thence south 0° 15' 29.3" west, a distance of 169.00 feet
to the southerly line of said Section 35; thence north
89' 46' 27.7" west, along said southerly line, a distance
of 630.00 feet to a point on a line that is parallel with
and 125.00 feet easterly of the westerly line of said
20.09 acre parcel ; thence north 00 15' 29.3" east, along
said parallel line, a distance of 169.00 feet; thence north
89' 46' 27.7" west, parallel with the southerly line of said
Section 35, a distance of 125.00 feet to said westerly line
of the 20.09 acre parcel ; thence north 0° 15' 14" east, along
said westerly line, a distance of 772.00 feet to the Point of
Beginning.
WP 3212