Loading...
HomeMy WebLinkAboutRes OB-095 (2)OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ECONOMIC DEVELOPMENT DEPARTMENT STAFF REPORT REQUEST: SUBMITTED BY: PROPERTY BUYER: DATE: CONTENT: Recommendation AUTHORIZATION TO EXECUTE A PURCHASE AND SALE AGREEMENT FOR THE PROPERTY LOCATED ON SAN BENITO CIRCLE KNOWN AS APN 627-092-043, PROPERTY 1(g) OF THE LONG RANGE PROPERTY MANAGEMENT PLAN Martin Alvarez, Director of Economic Development Stephen E. Drammer and Janis F. Drammer 44825 San Benito Circle Palm Desert, CA 92260 October 14, 2014 Resolution No. OB- 095 Purchase and Sale Agreement Appraisal / Location Map Waive further reading and adopt Resolution No. OB - 095 1. Authorize the Executive Director to execute a purchase and sale agreement to sell the Successor Agency owned property located on San Benito Circle known as APN 627-092-043 in the amount of $65,000.00; 2. Authorize the Executive Director to execute said agreement after approval is received from the Oversight Board and State Department of Finance. Executive Summary Approval of staffs recommendation will authorize the Executive Director to finalize and execute a purchase and sale agreement for the sale of a Successor Agency owned parcel located on the south side of San Benito Circle, in the amount of $65,000.00. This parcel is identified to be sold in the approved Long Range Property Management Plan. The purchase and sale agreement will require approval by the Oversight Board and the State Department of Finance, prior to execution. Background Prior to the dissolution of the Redevelopment Agency, staff acquired various parcels located on San Antonio, San Clemente and San Benito Circles, adjacent to Alessandro Alley. The properties were acquired to facilitate the future widening of the alley with use of portions of the G \Econ Development\Martin Alvarez\SA Property Sales\Alessandro Alley\San Benito Circle\Oversight Board San Benito land sale 10-14-14 doc Staff Report — Oversight Board Sale of Property- San Benito Circle (1g) October 14, 2014 Page 2 of 2 property's rear yards. The portions of the rear properties were transferred to the City prior to the dissolution of the Redevelopment Agency. On June 2, 2014 the Successor Agency's Long Range Property Management Plan (LRPMP) was approved by the State Department of Finance. The subject parcel is identified on the LRPMP and requires disposition at or above fair market value. The vacant parcel is located on the south side of San Benito Circle, totals 10,890 square feet and is zoned single-family residential (see location map). Discussion Staff received an offer letter to purchase the vacant parcel for $65,000.00. On July 8, 2014, staff secured a fair market appraisal by a certified appraiser. Using comparable market sales, the appraisal valued the parcel at $45,000.00. The appraiser did significantly adjust the value of the site downward due to the south property line abutting the Alessandro Alley. Staff has shared the appraisal results with the buyer and they are still willing to proceed with the purchase for $65,000.00. Staff recommends that the Executive Director be authorized to execute the attached purchase and sale agreement to sell the site for $65,000.00, pending approval from the Oversight Board and the State Department of Finance. Fiscal Analysis Since the property is owned by the Successor Agency, all income received from the sale of the property will distributed to the taxing entities. Submitted By. �' Department Head: martin Alvarez Rudy Acosta, Assistant City Manager Director of Economic Development Paul S. Gibson, Director of Finance Approval: M. Wohlmuth, Executive Director CF' i+nnamor� A6SC-�Il'J (� BY OVERSIGHT BOARD ON — 2rbiLi., VERIFIED BY Original on file with City Clerk's Office \\srv-fi12k3\groups\Eton Development \Martin Alvarez\SA Property Sales\Alessandro Alley\San Benito Circle\Oversight Board San Benito land sale 10-14-14.doc NOTICE OF ADJOURNED REGULAR MEETING OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY Proposed Adoption of: A Resolution Directing the Execution of a Purchase and Sale Agreement with Stephen E. Drammer and Janis F. Drammer for Property Located on San Benito Circle known as APN: 627-092-043, Property 1(g) Pursuant to the Long Range Property Management Plan Date: October 14, 2014 Time: 1:30 P.M. or as soon thereafter as the matter may be heard Place: Administrative Conference Room, located at Palm Desert City Hall, 73-510 Fred Waring Drive, Palm Desert, California NOTICE IS HEREBY GIVEN that at the meeting of the Oversight Board (the "Oversight Board") of the Successor Agency to the Palm Desert Redevelopment Agency (the "Successor Agency") to be held on October 14, 2014, at 1:30 P.M., or as soon thereafter as possible, the Oversight Board will consider the adoption of a resolution directing the execution of a Purchase and Sale Agreement with Stephen E. Drammer and Janis F. Drammer for Property Located on San Benito Circle known as APN: 627-092-043, Property 1(g) pursuant to the Successor Agency's Long Range Property Management Plan. Such Long Range Property Management Plan has been approved previously by the Oversight Board and the California State Department of Finance. Interested persons are invited to attend this meeting and be heard regarding this matter. An individual who challenges any decision regarding the proposed action in court may be limited to raising only those issues such individual or someone else raised at the meeting described in this notice or in written correspondence delivered to the Oversight Board at, or prior to, the meeting. Due to the time constraints and the number of persons wishing to give oral testimony, time restrictions may be placed on oral testimony at the meeting regarding the proposal. Any interested person may wish to make comments in writing to assure that the relevant views are expressed adequately. Written comments may be submitted to the Oversight Board prior to the time set for the meeting, to the attention of the Secretary of the Oversight Board at 73-510 Fred Waring Drive, Palm Desert. Further information may be obtained by contacting Martin Alvarez, Dir. of Economic Development, at 73-510 Fred Waring Drive, Palm Desert, or by telephone at (760) 346-0611, Ext 467 or by email at malvarez@cityofpalmdesert.org. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in an Oversight Board meeting, please contact the Office of the City Clerk of the City of Palm desert at (760) 346- 0611. Notification at least 48 hours prior to the meeting or time when services are needed will assist the Oversight Board staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. Assisted hearing devices will be available at this hearing without prior notification Dated this3p days , 2014 Racelle D. Klassen, ) Secretary to the Successor Agency to the Palm Desert Redevelopment Agency RESOLUTION NO. OB- 095 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AUTHORIZING THE EXECUTION OF A PURCHASE AND SALE AGREEMENT FOR PROPERTY LOCATED ON SAN BENITO CIRCLE KNOWN AS APN 627-092-043, PROPERTY 1(g) OF THE LONG RANGE PROPERTY MANAGEMENT PLAN RECITALS: A. Pursuant to AB X1 26 (enacted in June 2011), as modified by the California Supreme Court's decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal. 4th 231 (2011), the Palm Desert Redevelopment Agency (the "Former Agency") was dissolved as of February 1, 2012 and the Successor Agency was established, and the Oversight Board to the Successor Agency (the "Oversight Board") was constituted. B. AB 1484 (enacted June 2012) amended and supplemented AB X1 26 (AB X1 26 and AB 1484, together, being referred to below as the "Dissolution Act"). C. Pursuant to the Dissolution Act, the Successor Agency is tasked with winding down the affairs of the Former Agency. D. Pursuant to Section 34175(b) of the California Health and Safety Code ("HSC"), all real properties of the Former Agency transferred to the control of the Successor Agency by operation of law. E. On May 5, 2014, the Oversight Board adopted Resolution No. OB-073, approving a long-range property management plan (the "LRPMP") which addresses the disposition of the real properties owned by the Successor Agency. F. As indicated in the DOF's letter dated June 2, 2014, the DOF has approved the LRPMP. G. Pursuant to HSC Section 34191.3, the DOF-approved LRPMP shall govern, and supersede all other provisions of the Dissolution Act relating to, the disposition and use of the real property assets of the Former Agency. H. Pursuant to the approved LRPMP, the Oversight Board authorizes the execution of a Purchase and Sale Agreement (see Exhibit A) with Stephen E. Drammer and Janis F. Drammer for property located on San Benito Circle known as APN 627-092-043, Property 1(g) of the LRPMP in the amount of $65,000.00 (fair market value). In accordance with the terms of California Health and Safety Code Section 34191.5(c)(2)(B), the proceeds of this property sale will distributed as property taxes to the affected taxing entities. -1- RESOLUTION NO. OB - 095 J. The Oversight Board is adopting this Resolution to direct the execution of the Purchase and Sale Agreement (see Exhibit A) with Stephen E. Drammer and Janis F. Drammer for $65,000.00 as directed by the approved LRPMP. K. Notice of the proposed action presented in this Resolution was posted on the Successor Agency's website (being a page on the City's website) and at three public places: beginning on September 30 , 2014. NOW, THEREFORE, THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The above recitals, and each of them, are true and correct. Section 2. The Oversight Board hereby authorizes and directs the Successor Agency to complete the execution of the Purchase and Sale Agreement (see Exhibit A) with Stephen E. Drammer and Janis F. Drammer for $65,000.00 as directed by the approved LRPMP. The Chair (or in the Chair's absence, the Vice Chair) of the Board of Directors of the Successor Agency hereby authorize the Executive Director to execute the Purchase and Sale Agreement to complete the disposition of the properties. Section 3. The members of the Oversight Board and officers and staff of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Resolution. Section 4. This Resolution shall become effective in accordance with HSC Section 34181(f). APPROVED and ADOPTED this day of , 2014. AYES: NOES: ABSENT: ABSTAIN: ROBERT A. SPIEGEL, CHAIR ATTEST: RACHELLE D. KLASSEN, SECRETARY OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY RESOLUTION NO. OB - 095 EXHIBIT A OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY PURCHASE AND SALE AGREEMENT FOR PROPERTY LOCATED ON SAN BENITO CIRCLE KNOWN AS APN 627-092-043, PROPERTY 1(g) OF THE LONG RANGE PROPERTY MANAGEMENT PLAN) WITH THE CITY OF PALM DESERT -3- RESOLUTION NO. OB - 095 AGREEMENT OF PURCHASE AND SALE AND ESCROW INSTRUCTIONS Foresite Escrow ("Escrow") 41-995 Boardwalk, Ste G-2 Palm Desert, CA 92211 Attention: Esther Lopez, Escrow Officer ("Escrow Holder") Escrow No: THIS AGREEMENT OF PURCHASE AND SALE AND ESCROW INSTRUCTIONS ("Agreement") is dated for reference purposes as of this day of , 2014 (the "Effective Date"), by and between the SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, a public entity ("Seller"), and STEPHEN E. DRAMMER AND JANIS F. DRAMMER, TRUSTEES OF THE STEPHEN AND JANIS DRAMMER FAMILY TRUST DATED APRIL 9, 1998 ("Buyer"). This Agreement is made with reference to the following facts: RECITALS A. Seller is the owner of certain real property located in the City of Palm Desert, Riverside County, California, commonly known as APN 627-092-043 and more particularly described in Exhibit A attached hereto ("Property"). Reference herein to the Property includes 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. B. Buyer desires to purchase the Property from Seller and Seller desires to sell the Property to Buyer pursuant to the terms and conditions set forth in this Agreement. THE PARTIES AGREE AS FOLLOWS: 1. Purchase and Sale of Property. Upon the terms and conditions described below, Buyer agrees to purchase and Seller agrees to sell and convey the Property to Buyer. 2. Purchase Price. The purchase price for the Property will be an amount equal to Sixty Five Thousand Dollars ($65,000.00) ("Purchase Price"). The purchase price shall be paid in cash, and this Agreement is not subject to any financing contingency. 3. Payment of Purchase Price. Buyer will pay the Purchase Price to Seller through Escrow as follows: ( Econ Des clopment' Martin Als are/ SA Proper) Salec,Ale+.+andrn Alley\San Benito ('ircle.PU - SARI)A - Purcha,e and Sale Agreement (Sat) Ben itu).dea; RESOLUTION NO. OB - 095 3.1 Deposit. Within three (3) days following the Effective Date of this Agreement, Buyer will deposit with Escrow Holder the sum of Three Thousand Dollars ($3,000.00) ("Deposit") in immediately available funds. Escrow Holder will place the Deposit in an interest bearing account, with interest to accrue for the benefit of Buyer. All references herein to the "Deposit" will include interest accrued thereon. In the event the Buyer fails to deliver the Deposit to the Escrow Holder within the time period specified herein, this Agreement will be null and void. 3.2 Balance of Purchase Price. Not later than two (2) business day prior to Closing, Buyer shall deposit with Escrow Holder in immediately available funds the balance of the Purchase Price, together with such other amounts as may be required in order to pay Buyer's share of closing costs and prorations. 3.3 Application of Deposit. If Buyer does not terminate this Agreement prior to the expiration of the Due Diligence Period (defined below), the Deposit will become nonrefundable except as otherwise expressly provided in this Agreement. Upon Close of Escrow (defined below), the Deposit will be credited against the Purchase Price. If Buyer terminates this Agreement prior to the expiration of the Due Diligence Period, the Deposit will be returned to Buyer, subject to the terms of Section 5.5 below. If, following Buyer's election to proceed with this transaction beyond the expiration of the Due Diligence Period, Seller will retain the Deposit as liquidated damages pursuant to Section 8.2 below. 4. Title. 4.1 Preliminary Title Report. Upon execution of this Agreement by both parties, Seller will order from Fidelity Title Company (through its Newport Beach, California office — "Title Company") a preliminary title report, together with legible copies of all title exception documents described therein (collectively the "Report"). Within five (5) business days after Buyer's receipt of the Report, Buyer may object, by written notice to Seller, to any title exceptions which Buyer determines are unacceptable, in Buyer's sole discretion. Seller may thereafter elect, at its option and at its sole cost and expense, either to eliminate such title objections prior to or at the Close of Escrow, or not to do so. If Seller is unable or unwilling to eliminate any such title objections, Buyer may elect to terminate this Agreement, in which case the Deposit will be returned to Buyer. Alternatively, Buyer may elect to waive any such title objections and accept title to the Property subject to such matters. 4.2 Title Policy. At Close of Escrow, Seller will convey good and marketable title to the Property to Buyer as evidenced by a CLTA Standard Form Owners Policy of Title Insurance, or at Buyer's election and expense, an ALTA Extended Owner's Policy of Title Insurance, issued by the Title Company in an amount equal to the Purchase Price, and containing such endorsements (the "Endorsements") as Buyer may, at Buyer's expense, reasonably require ("Title Policy"). 2 G• Scon I)evelopment'hlartin Alvare✓SA Propert) Sales;Alesvmdro Allec San Benito Circle'd'l) - SARI)A - Purchase and Sale .Agreement (San Renifo).doc RESOLUTION NO. OB - 095 5. Due Diligence Inspections. 5.1 Due Diligence Period. As used in this Agreement, the term "Due Diligence Period" means the period commencing on the Effective Date and expiring fifteen (15) days thereafter. 5.2 Property Information. Upon Buyer's written request, Seller will make available to Buyer for copying copies of any information in Seller's possession regarding the condition of the Property ("Property Information"). The Property Information will be made available to Buyer without warranty from Seller regarding the accuracy or completeness of the information contained therein. Buyer will maintain the confidentiality of the Property Information and return the same to Seller in the event this Agreement is terminated. 5.3 Inspections. During the Due Diligence Period, with reasonable advance written notice (no less than forty-eight (48) hours) to Seller, which written notice shall describe in reasonable detail the nature and scope of Buyer's proposed inspections, Buyer, its agents, representatives and consultants may enter onto the Property during reasonable business hours to perform inspections and tests of the Property. All such tests and inspections will be at Buyer's sole cost. Prior to entering the Property, or causing its agents to enter the Property, Buyer shall provide Seller with a certificate of insurance issued in favor of Buyer, or the Buyer's agents entering the Property, and naming Seller as an additional insured, evidencing commercial general liability coverage by companies reasonably approved by Seller with a minimum of $1,000,000 per incident covering the activities of Buyer and the Buyer's agents while attending the Property. 5.4 Restoration. After performing such tests and inspections under Section 5.3, Buyer shall promptly restore the Property to the condition that existed prior to such tests and inspections (which obligation will survive the the Close of Escrow or any termination of this Agreement). Buyer shall keep the Property free from all liens, and shall indemnify, defend, and hold harmless Seller and its officers, employees, and agents (collectively, the "Seller Parties"), from and against all claims, actions, losses, liabilities, damages, costs and expenses (including attorneys' fees and costs) incurred, suffered by, or claimed against Seller Parties, or any of them, by reason of any damage to the Property or injury to persons caused by Buyer and/or its agents, representatives or consultants in exercising its rights under this Section 5. The foregoing provisions will survive the Close of Escrow or any termination of this Agreement. 5.5 Buyer's Right to Terminate During Due Diligence Period. At any time prior to the expiration of the Due Diligence Period, Buyer may terminate this Agreement in its sole and absolute discretion by delivering to Seller and Escrow Holder written notice of such termination. If Buyer terminates this Agreement in accordance with this Section, Escrow Holder shall return the Deposit to Buyer, less Buyer's share of any title and escrow cancellation fees as set forth in Section 7.9 below. If Buyer fails to terminate this Agreement prior to the expiration of the Due Diligence Period in 3 (r'Fcon Development \Martin Alta reLSA Property Sales\ Alessandro Alle)'San Benito Circic'Ptl - SARDA - Purchase and Sale Agreement (San Benito).doe RESOLUTION NO. OB - 095 accordance with the provisions of this Section 5.5, Buyer will be deemed to have approved the Property. 6. As Is Acceptance of Property. Buyer acknowledges that prior to Close of Escrow, it will have had the opportunity to conduct such tests and evaluations as it deems reasonably necessary in order to investigate the condition of the Property, including its environmental status. Buyer acknowledges that it is acquiring the Property in its "as is" condition with no warranty or representation from Seller regarding the physical condition of the Property, its environmental condition or its suitability for Buyer's intended purposes. Buyer acknowledges that it is acquiring the Property based solely in reliance on its own inspections and examination and its own evaluation of the Property. Buyer agrees that no representations, statements or warranties have at any time been made by Seller or its agents regarding the physical condition of the Property except as may be contained in this Agreement. Buyer acknowledges that there may be conditions affecting the Property unknown to Buyer that may adversely affect its value or use for Buyer's intended purposes. Buyer nevertheless waives any rights or recourse it may have with respect to such unknown conditions and any damage, loss, costs or expense related thereto, including rights accruing under California Civil Code § 1542, which provides: "A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor." Buyer acknowledges that it has either consulted with or had an opportunity to consult with legal counsel regarding the above waiver. The provisions of this Section 6 will survive Close of Escrow. Buyer Initials 7. Escrow. 7.1 Escrow Instructions. This Agreement shall constitute instructions of Buyer and Seller to Escrow Holder. The parties agree to execute such additional pro forma instructions as Escrow Holder may reasonably require, however, in the event of a conflict, the terms and provisions of this Agreement shall govern. 7.2 Opening of Escrow. Upon execution of this Agreement, Buyer and Seller shall cause an escrow to be opened with Escrow Holder by depositing with Escrow Holder a fully executed copy of this Agreement. Escrow shall be deemed opened as of the date this Agreement is deposited with Escrow Holder ("Escrow Opening"). 4 G: hsun Des.elopmenLMartin AIs are, SA Property Sales.Alcssandro AIIe)'San Benito C ircic`PD - SARDA - Purchase and Sale Agreement (San Bcruto).doc RESOLUTION NO. OB - 095 7.3 Close of Escrow; Closing Date. "Close of Escrow" shall mean the date on which the Grant Deed conveying title from Seller to Buyer is recorded in the Official Records of the County Recorder of Riverside County, California. The form of the Grant Deed will be as set forth in Exhibit B attached hereto. Provided that this Agreement is not earlier terminated pursuant to the terms and provisions hereof, and provided that all of the conditions precedent to the Close of Escrow set forth in this Agreement have been approved or waived as herein provided, Escrow shall close on or before fifteen (15) days following expiration of the Due Diligence Period ("Closing Date"). Seller may terminate this Agreement if Seller has performed its obligations hereunder, and failure to close Escrow results from a material default by Buyer. Buyer may terminate this Agreement if Buyer has performed its obligations hereunder, and failure to close Escrow results from a material default by Seller. By causing the Close of Escrow to occur, Escrow Holder shall be deemed to have irrevocably committed to cause the Title Company to issue the Title Policy to Buyer. If the County Recorder of Riverside County, California is closed on the last day for closing Escrow, then the parties agree that Escrow Holder shall have until the next day the Recorder is open to record the Grant Deed and close Escrow. 7.4 Documents and Funds from Buyer. Not later than two (2) business days prior to the Closing Date, Buyer will deliver or will assure that the following documents and funds have been delivered to Escrow Holder: (a) Purchase Price. The Purchase Price, as described in Section 2 above. (b) Preliminary Change of Ownership Statement. A Preliminary Change of Ownership Statement or in lieu thereof, the appropriate fee, to be provided to the Recorder's office at Close of Escrow. (c) Other Sums and Documents. All other sums and documents required by Escrow Holder according to this Agreement to carry out and close the Escrow. 7.5 Documents and Funds from Seller. Not later than two (2) business day prior to the Closing Date, Seller will deliver or will assure that the following documents and funds have been delivered to Escrow Holder: (a) Grant Deed. A fully executed and acknowledged Grant Deed conveying the Property to Buyer, or Buyer's nominees or assigns, in fee simple. (b) FIRPTA Affidavit. An original affidavit, using Escrow Holder's standard forms, certifying that Seller and this transaction are not subject to the withholding requirements of the Foreign Investment in Real Property Tax Act and equivalent California legislation. (c) Other Sums and Documents. All other documents and sums required by Escrow Holder according to this Agreement to carry out the Escrow and to issue the Title Policy to Buyer in the form required by Buyer. 5 Ulf -con UciielopmenP.Vartm Als are/ASA Property Sales \Alessandro .Alle)`San Benito Circle Pt) - SARDA - Purchase and Sale Agreement (San Benito) doc RESOLUTION NO. OB - 095 7.6 Conditions to the Close of Escrow. Close of Escrow shall not take place unless and until: (a) Seller's Obligation. Seller's obligation to sell the Property to Buyer is contingent on the following: (i) Buyer shall have delivered the Purchase Price, Tess any credits described in this Agreement, for the Property. (ii) Buyer shall have timely performed all other obligations of Buyer under this Agreement. In the event that any of the foregoing conditions have not occurred or been satisfied or waived by the Closing Date, Seller shall be entitled to terminate this Agreement and, subject to the provisions of Section 7.9 below, any funds deposited by Buyer and any interest thereon will be returned to Buyer. (b) Buyer's Obligation. Buyer's obligation to purchase the Property is contingent on the following: (i) Buyer shall have approved or shall be deemed to have approved the Report for the Property pursuant to Section 4.1. (ii) Seller shall have delivered insured title to the Property on the terms required by Section 4. (iii) No loss or damage to the Property shall have occurred which would permit Buyer to terminate this Agreement pursuant to the provisions herein below. (iv) Seller shall have performed all of its other obligations under this Agreement. In the event that any of the foregoing conditions have not occurred or been satisfied or waived by the date(s) specified, Buyer shall be entitled to terminate this Agreement and, subject to the provisions of Section 7.9 below, any funds deposited by Buyer, including the Deposit, and any interest thereon will be returned to Buyer. (c) Delivery of Sums and Documents. Both parties have deposited with Escrow Holder all sums and documents required by this Agreement. (d) Title Policy. The Title Company is prepared to issue the Title Policy to Buyer with title as described in Section 4 above. 6 (,:'.Icon Uctelupmcnt Iartin Al‘are,'S,\ I'ropert) Salesv\lessandro Alley \San Benito Circle\PD - SARDA - Purchase and Sale Agreement (San Benito).doc RESOLUTION NO. OB - 095 7.7 Closing Procedure. Upon receipt of all funds and instruments described in this Section 7, and upon satisfaction or waiver of all contingencies and conditions set forth in this Agreement, Escrow Holder shall: (a) Record the Grant Deed. Record the Grant Deed in the Official Records of Riverside County, California. (b) Title Policy. Cause the Title Policy to be issued. (c) Purchase Price. Deliver the Purchase Price to Seller, less any costs and expenses shown on the closing statements approved by Seller and Buyer, which costs and expenses shall be disbursed as instructed by Seller and Buyer in escrow instructions delivered to Escrow Agent prior to the Closing Date. 7.8 Electronic/Counterpart Documents. In the event Buyer or Seller utilizes "facsimile" or other electronically 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 agree, if requested by Escrow Holder, 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 electronically transmitted 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. 7.9 Costs of Escrow. Buyer will pay one-half of Escrow Holder's fee, and any additional costs and charges customarily charged to buyers in accordance with common escrow practices in Riverside County. Seller shall pay one-half of Escrow Holder's fee, the costs and expenses associated with the Title Policy as described in Section 4, and any additional costs and charges customarily charged to sellers in accordance with common escrow practices in Riverside County. 7.10 Property Taxes and Assessments. Under Seller's ownership, the Property has not been subject to real property taxes or assessments. At the Close of Escrow, Buyer will become liable for all real property taxes and assessments (including any supplemental assessments) allocable to the Property after the Close of Escrow. 7.11 Brokers' Commissions. Neither party has had any contact or dealings regarding the Property, or any communication in connection with the subject matter of this transaction, through any real estate broker or other person who can claim a right to a commission or finder's fee in connection with the sale contemplated herein, except for Desert Palms Realty through Brady Sigurdson, whose commission in an amount not to exceed three percent (3%) of the Purchase Price shall be paid entirely by Seller at the Close of Escrow. If any other broker or finder perfects a claim for a commission or finder's fee based upon any such contact, dealings or communication, then the party through whom such person makes its claim shall indemnify, hold harmless and defend the other party (the "Indemnified Party") from any and all costs, 7 (El.con Dewlopmendhlartin AlcareYSA Proper) Sales Alessandro Alley,San Benito Circle'PU - SARDA - Purchase and Sale Agreement (San Ucnito).doc RESOLUTION NO. OB - 095 damages, claims, liabilities, losses, or expenses, (including without limitation, reasonable attorneys' fees and disbursements) incurred by the Indemnified Party in defending against the claim. The provisions of this Section shall survive termination of this Agreement and the Close of Escrow. 7.12 Possession. Possession of the Property shall be surrendered to Buyer at the Close of Escrow. 7.13 Report to IRS. After Close of Escrow and prior to the last date on which such report is required to be filed with Internal Revenue Service ("IRS"), and if such report is required pursuant to Section 6045(e) of the Internal Revenue Code, Escrow Holder shall report the gross proceeds of the purchase and sale of the Property to the IRS on Form 1099-B, W-9 or such other form(s) as may be specified by the IRS pursuant to said Section 6045(e). Concurrently with such filing, Escrow Holder shall deliver a copy thereof to Buyer and Seller. 8. Remedies for Default. 8.1 Seller Default. If Seller defaults under this Agreement, Buyer may, at its option, terminate this Agreement (in which case the Deposit will be returned by Escrow Holder to Seller) or initiate an action for specific performance of this Agreement. 8.2 Buyer Default. IF BUYER DEFAULTS IN ITS OBLIGATION TO CLOSE THE PURCHASE OF THE PROPERTY, SELLER SHALL RETAIN THE DEPOSIT AS FULL, AGREED AND LIQUIDATED DAMAGES, AND SELLER'S RETENTION OF THE DEPOSIT IS SELLER'S SOLE AND EXCLUSIVE REMEDY WITH RESPECT TO SUCH BUYER DEFAULT. THE PARTIES HERETO EXPRESSLY AGREE AND ACKNOWLEDGE THAT IN THE EVENT OF A DEFAULT BY BUYER IN ITS OBLIGATION TO CLOSE THE PURCHASE OF THE PROPERTY, SELLER'S ACTUAL DAMAGES WOULD BE EXTREMELY DIFFICULT OR IMPRACTICABLE TO ASCERTAIN, THAT THE AMOUNT OF THE DEPOSIT REPRESENTS THE PARTIES' REASONABLE ESTIMATE OF SUCH DAMAGES, AND THAT SUCH AMOUNT IS NOT UNREASONABLE UNDER THE CIRCUMSTANCES EXISTING AT THE TIME THIS AGREEMENT WAS MADE. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING: (1) SELLER WILL INCUR ADMINISTRATIVE COSTS IN THE NEGOTIATION AND REVIEW OF THIS AGREEMENT AND OTHER DOCUMENTS RELATING TO THIS TRANSACTION, AND WILL INCUR DAMAGES BY WITHDRAWING THE PROPERTY FROM THE OPEN MARKET; (2) CERTAIN COSTS AND OTHER DAMAGES IN AN AMOUNT SUBSTANTIALLY IN EXCESS OF THE DEPOSIT MAY BE INCURRED BY SELLER IF THE SALE OF THE PROPERTY CONTEMPLATED HEREBY IS NOT COMPLETED; AND (3) SELLER IS ENTERING INTO THIS AGREEMENT WITH BUYER IN RELIANCE UPON BUYER'S COMMITMENT TO PURCHASE THE PROPERTY FROM SELLER. THE PAYMENT OF SUCH AMOUNT AS LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTIONS 3275 OR 3369, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER PURSUANT TO CALIFORNIA CIVIL CODE SECTIONS 1671, 8 (i.'Pcon Dcnclopment\N1urtm Alrare/\SA Proper() Sales`Alessandro Alley \San I3cnao Circle'd'D - SARDA - Purchase and Sale Agreement (San Benitu)dnc RESOLUTION NO. OB - 095 1676 AND 1677. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS SECTION 8.2, THIS LIQUIDATED DAMAGES PROVISION IS NOT INTENDED AND SHALL NOT BE DEEMED OR CONSTRUED TO LIMIT IN ANY WAY BUYER'S INDEMNITY, RESTORATION OR CONFIDENTIALITY OBLIGATIONS UNDER THIS AGREEMENT. SELLER'S INITIALS: BUYER'S INITIALS: 9. Notices. Any and all notices required or permitted to be given hereunder shall be in writing and shall be (i) personally delivered, or (ii) sent by recognized overnight delivery service, mailed by certified or registered mail, return receipt requested, postage prepaid. Any such notice or communication shall be effective when received by the addressee or upon refusal of such delivery to the parties at the addresses indicated below: Agency To Seller: Successor Agency of the Palm Desert Redevelopment To Buyer: c/o City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Attn: City Manager Stephen E. Drammer and Janis F. Drammer, Trustees 44825 San Benito Circle Palm Desert, CA 92260 Any party may change its address by a notice given to the other party in the manner set forth above. 10. Miscellaneous. 10.1 Integration. This Agreement supersedes all prior agreements and understandings between the parties relating to the subject matter hereof. Neither of the parties has relied upon any oral or written representation or oral or written information given to it by any representative of the other party. 10.2 Binding Effect. This Agreement shall bind and inure to the benefit of the parties, their respective heirs, successors and assigns. 10.3 Amendment/Modification. No change or modification of the terms or provisions of this Agreement shall be deemed valid unless in writing and signed by both parties. 10.4 Governing LawNenue. This Agreement shall be construed, interpreted and applied in accordance with the laws of the State of California. Any litigation or arbitration regarding the Property or this Agreement will be brought in Riverside County Superior Court or conducted in Riverside County. 9 G:.I.con DevelopmcntSlartin AI arciSA Property Salcs.Alessandro Aller'San Benito Circic`I'D - SMRD.\ - Purchase and Sale Agreement (San Ilemto).doc RESOLUTION NO. OB - 095 10.5 Business Days. Reference herein to "business days" means any day excluding Saturday, Sunday and any day which is a legal holiday under the laws of the State of California or in the City of Shafter. 10.6 Waiver. No waiver of any breach or default shall be construed as a continuing waiver of any provision or as a waiver of any other or subsequent breach of any provision contained in this Agreement. 10.7 Attorneys' Fees. In the event of any action or proceeding to enforce or construe any of the provisions of this Agreement, the prevailing party in any such action or proceeding shall be entitled to reasonable attorneys' fees and costs. 10.8 Assignability. Any assignment of Buyer's rights under this Agreement shall require the prior written consent of Seller, which Seller may grant or withhold in its sole discretion. 10.9 Time of the Essence. Time is of the essence of this Agreement. 10.10 Escrow Agent. Escrow Agent shall conduct the Close of Escrow in accordance with the terms and provisions of the escrow instructions to be given to Escrow Agent by the parties in a form consistent with this Agreement. To the extent of any conflict or inconsistency between the terms and provisions of this Agreement and the escrow instructions, the terms of this Agreement shall control. 10.11 Exhibits. All Exhibits which are referred to herein and which are attached hereto or bound separately and initialed by the parties are expressly made and constitute a part of this Agreement. 10.12 Counterparts. This Agreement may be executed in counterparts and when so executed by the parties, shall become binding upon them and each such counterpart will be an original document. REMAINDER OF PAGE INTENTIONALLY LEFT BLANK SIGNATURE PAGE FOLLOWS 10 (i:.I con I)c%e(optncnl Martin Alvarez' SA Property Sales,Alessandro Alley San Benito Circle'.I'I) - SARDA - Purchase and Sale Agreement (San Bcmto).doe RESOLUTION NO. OB - 095 SELLER: SUCCESSOR AGENCY OF THE PALM DESERT REDEVELOPMENT AGENCY By: Name: Its: BUYER: Stephen E. Drammer, Trustee of the Stephen and Janis Drammer Family Trust Dated April 9, 1998 Janis F. Drammer, Trustee of the Stephen and Janis Drammer Family Trust Dated April 9, 1998 11 C;.,L con Development Martin Akarez,ti•\ Propert) Sales Alessandro AllcySan Benito (1rckc,PD - SARI)A - Purchase and Sale Agreement (San L3enito( doe RESOLUTION NO. OB - 095 CONSENT AND ACKNOWLEDGMENT OF ESCROW HOLDER Escrow Holder hereby agrees to (i) accept the foregoing Agreement, (ii) act as the Escrow Holder under said Agreement and (iii) be bound by said Agreement in the performance of its duties as Escrow Holder. Escrow Holder acknowledges receipt on the date hereof of originals or counterparts of the foregoing Agreement fully executed by Seller and Buyer. Dated: Escrow Holder advises the parties that the date of the Opening of Escrow is , 2014. , 2014 FORESITE ESCROW By: Its: Escrow Officer 12 G.'I.con DeNelopmenl'\ tartin Akan,/.SA Property Sales',.lessandro Alley San Benito Circle `PI) - SAKI)A - Purchase and Sale Agreement (San Benito Ldoc RESOLUTION NO. OB - 095 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: LOT 89 OF PALMA VILLAGE UNIT NO. 7, IN THE CITY OF PALM DESERT, AS PER MAP RECORDED IN BOOK 21, PAGES 16, 17 AND 18 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM THE SOUTHERLY 27.00 FEET. APN: 627-092-43 Exhibit A 72500.00000\9218084.2 RESOLUTION NO. OB - 095 EXHIBIT B GRANT DEED [See Attached] Exhibit 1 to Grant Deed 72500.00000\92I8084.2 EXHIBIT "B" Form of Grant Deed RECORDING REQUESTED BY: SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY c/o CITY OF PALM DESERT 73-510 Fred Waring Drive Palm Desert, California 92260 Attn: City Clerk WHEN RECORDED RETURN TO: Stephen E. Drammer and Janis F. Drammer, Trustees 44825 San Benito Circle Palm Desert, CA 92260 APN: 627-092-043 Above Space for Recorder's Use GRANT DEED Documentary transfer tax is $0.00 Exempt from Documentary Transfer Taxes Pursuant to R & T Code Section 11922 FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, a public entity ("Grantor"), hereby grants to STEPHEN E. DRAMMER AND JANIS F. DRAMMER, TRUSTEES OF THE STEPHEN AND JANIS DRAMMER FAMILY TRUST DATED APRIL 9, 1998 ("Grantee"), the following described real property (the "Property") situated in the City of Palm Desert, County of Riverside, State of California: See Exhibit A attached hereto and made a part hereof. AND excepting therefrom any public rights of way or easements. IN WITNESS WHEREOF, Grantor has caused its name to be affixed hereto and this instrument to be executed by its duly authorized officer. DATED: , 2014 GRANTOR: SUCCESSOR AGENCY OF THE PALM DESERT REDEVELOPMENT AGENCY By: Name: Its: STATE OF CALIFORNIA EXHIBIT "B" Form of Grant Deed ACKNOWLEDGEMENT ) COUNTY OF ) On before me, Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) EXHIBIT "B" Form of Grant Deed EXHIBIT A LEGAL DESCRIPTION OF PROPERTY THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: LOT 89 OF PALMA VILLAGE UNIT NO. 7, IN THE CITY OF PALM DESERT, AS PER MAP RECORDED IN BOOK 21, PAGES 16, 17 AND 18 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM THE SOUTHERLY 27.00 FEET. APN: 627-092-43 July 8, 2014 City of Palm Desert Attn: Mr. Martin Alvarez 73-510 Fred Waring Drive Palm Desert, CA. 92260 CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS ♦ ADVISORS 78-015 MAIN STREET, SUITE 207 LA QUINTA, CA 92253-8962 C?4 r? ed!yilthebrJ/.:'Jl/l RE: .25-Acres of Vacant Land, Located Along the South Side of San Benito Circle, South of San Gorgonio Way, Palm Desert, CA., Otherwise Known As APN: 627-092-043; Riverside County, CA. Dear Mr. Alvarez: At your request and authorization, I have completed this restricted appraisal report, setting forth my opinion of the market value of the fee simple estate in the subject property as of July 1, 2014. Per your request, the following market value estimates are reported for the subject property: - Market Value "As Is" The subject property includes .25-acres of vacant land, located along San Benito Circle in Palm Desert, CA. The property is in the General Plan as Medium Density residential. The south line of the subject parcel abuts the Alessandro Alley. Neighboring uses are single-family residential. Because the format of this report is restricted, some or all information that support the analysis, conclusions and opinions in the report are retained in my files. This report may not be properly understood without the additional information contained within my files. The following guidelines apply to this report: 4- The property rights being appraised are the fee simple estate. - The purpose of the appraisal is to estimate the market value of the fee simple estate in the subject property "As Is". Definition of Market Value The definition of market value for this appraisal is as follows: "The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: Phone: (760) 564-6222 Fax: (888) 985-9994 Email: mike(a realtyadvisor.com July 8, 2014 Capital Realty Analysts / Mr. Martin Alvarez Page 3 Definition of Market Value 1. Buyer and seller are typically motivated. 2. Both parties are well informed or well advised, and acting in what they consider their best interests; 3. A reasonable time is allowed for exposure on the open market; 4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 4- Assumptions and limiting conditions are attached. d The intended use and sole purpose of this value estimate is for internal use. 4- The required certifications are attached. 4- Effective Date of Value: July 1, 2014 1 Highest and Best Use "As Vacant": Hold for investment 4- Highest and Best Use "As Improved": N/A, the subject property is vacant History of the Subject Property The subject parcel was acquired by the City of Palm Desert on 2/10/98 for an unknown sale price. The property was acquired in order to add to the assemblage of parcels located along the north side of the Alessandro Alley in order to facilitate a future expansion of the street. The property transferred on 12 / 11 / 12 via quit claim deed in a non-arm's-length transaction. According to the Desert Area MLS, the property is not currently listed for sale. An Assessor's Plat Map for the subject property is included in the Addendum. The Client's need for a current market value estimate generated the requirement for this analysis. July 8, 2014 Capital Realty Analysts / Mr. Martin Alvarez Page 4 Appraisal Process A direct Sales Comparison Approach is applied to estimate the market value of the fee simple estate in the subject property. Lacking improvements with an associated cost or income earning ability, the Cost Approach and the Income Approach are not considered relevant. Sales Comparison Approach The following table shows the data applied to estimate the market value of the subject property: Sale Location Sale Size Size Sale Sale Price Date (Acres) (SF) Price Per SF 1 S Side of Florida Avenue, W of Tennessee Avenue Palm Desert, CA. 8/29/13 0.15 6,460 $51,500 $7.97 2 E side of San Pascual Ave. N of Fred Waring Drive Palm Desert, CA. 7/30/13 0.17 7,566 $51,000 $6.74 3 E side of Mountain View Dr., N of Fairway Drive Palm Desert, CA. 9/ 18/ 13 0.20 8,581 $75,000 $8.74 Sub. S Side of San Benito Cl. 0.25 10,890 S of San Gorgonio Way; Palm Desert, CA Sale 1 is located east of the subject in an area that will support a similarly priced home. Additionally, the property backs to Fred Waring Drive. Sale 2 is located in close proximity to the subject. This lot would also support a home similar in retail price potential as compared with the subject. Sale 3 is located in a superior area and a downward adjustment for location is required. Conclusion Although Sales 1 and 2 would both support homes similar in retail price potential as compared to the subject, the subject lot is significantly impaired due to the south line of the property abutting the Alessandro Alley. After applying downward adjustments for this feature, the subject property would be expected to command a market value estimate at the lower end of the adjusted value range. July 8, 2014 Capital Realty Analysts / Mr. Martin Alvarez Page 5 Conclusion (cont'd) Based upon the available data, I conclude that the market value of the fee simple estate in the subject property "As Is", as of July 1, 2014 is as follows: $45,000 (Forty Five Thousand Dollars) The undersigned have no personal interest either present or contemplated in the subject property and certify that my employment was not dependent upon producing a specific value, or a value within a given range. No fee, received or to be received for the employment of my services is in any way contingent on the opinions reported herein. I hope you find the details of this appraisal report relevant to your decisions. Thank you for the opportunity to be of service. Respectfully submitted, CAPITAL REALTY ANALYSTS Michael A. Scarcelia, MAI State Certification No.: AGO19463 Expiration Date: October 24, 2015 Certification I certify that, to the best of my knowledge and belief... The statements of fact contained in this Report are true and correct. The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and is my personal, unbiased professional analyses, opinions and conclusions. I have no present or prospective interest in the property that is the subject of this Report, and I have no personal interest or bias with respect to the parties involved. My engagement in this assignment was not contingent upon developing or reporting predetermined results. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. My analysis, opinions and conclusions were developed, and this Report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) adopted by the Appraisal Standards Board of the Appraisal Foundation, except that the Departure Provision of the USPAP shall not apply to federally related transactions. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. I certify that the use of this Report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this Report, I have completed the requirements of the continuing education program of the Appraisal Institute. I have made a personal inspection of the property that is the subject of this Report. No other person provided significant professional assistance to the person(s) signing this Report. Cq© 2014 CAPITAL REALTY ANALYSTS Page 6 Certification (cont'd) This Appraisal assignment was not based on a requested minimum valuation, a specific valuation or the approval of a loan. I certify that, to the best of my knowledge and belief, the reported analyses, opinions and conclusions were developed, and this Report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. I have not previously appraised the property that is the subject of this report. Michael A. Scarcella, MAI State Certification No.: AG019463 Expiration Date: October 24, 2015 Cad 2014 CAPITAL. REALTY ANALYSTS Page 7 Addendum Cad © 2014 CAPITAL REALTY ANALYSTS Page 8 Assumptions and Limiting Conditions This appraisal report has been made with the following general assumptions and limiting conditions: 1. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 2. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed. 4. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. The appraiser reserves the right to make adjustments to the analyses, opinions and conclusions in this report, as may be required by consideration of additional or revised data that may become available. 5. All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for obtaining the engineering studies that may be required to discover them. 7. It is assumed that the property is in full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. 8. It is assumed that the property conforms to all applicable zoning and use regulations and restrictions unless nonconformity has been identified, described and considered in the appraisal report. 9. It is assumed that all required licenses, certificates of occupancy, consents, and other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. Cad © 2014 CAPITAL REALTY ANALYSTS Page 9 Assumptions and Limiting Conditions 10. It is assumed that the utilization of the land and improvements is confined within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. 11. Unless otherwise stated in this report, the existence of hazardous materials, which may or may not be present on the subject property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea -formaldehyde foam insulation and other potentially hazardous materials may affect the value of the property. The value estimated is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for such conditions or for any expertise or engineering knowledge required to discover them. The intended user is urged to retain an expert in this field, if desired. 12. Any allocation of the total value estimated in this report between the land and the improvements applies only under the stated program of utilization. The separate allocations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. 13. Except for use in the Official Statement as required for bond issuance, possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event only with properly written qualification and only it its entirety. 14. The appraiser herein by reason of this appraisal is not required to give further consultation, testimony, or be in attendance in court with reference to the property in question unless arrangements have been previously made. 15. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser. © 2014 CAPITAL REALTY ANALYSTS Page 10 Assumptions and Limiting Conditions 16. Improved Properties - The Americans with Disabilities Act ("ADA") became effective January 26, 1992. I (we) have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since I (we) have no direct evidence relating to this issue, I (we) did not consider possible non-compliance with the requirements of ADA in estimating the value of the property. 17. Improvements, Proposed Improvements - The value estimates in this report are subject to the improvements being completed in the manner represented to the Appraiser(s), and described in the Improvement Description section of this report. 18. The legal descriptions, site sizes, dimensions and/or other surveys provided to the appraiser, including County Tax Plats, are assumed to be accurate. Should a survey prove these characteristics inaccurate, it may be necessary for the appraisal to be adjusted. 19. The forecasts, projections, or operation estimates contained herein are based upon current market conditions, anticipated short-term supply and demand factors, and a continued state economy. These forecasts are therefore, subject to change in the future. 20. The appraiser undertaking this assignment warrants that he is competent in properly identifying the appraisal problem and has the necessary knowledge and experience to complete the assignment. 21. Provision of an insurable value by the appraiser does not change the intended user or intended purpose of the appraisal. The appraiser assumes no liability for, and does not guarantee that any estimate or opinion will result in the subject property being fully insured for any possible loss that may be sustained. The appraiser recommends that an insurance professional be consulted. CCLI © 2014 CAPITAL REALTY ANALYSTS Page 11 Assumptions and Limiting Conditions 22. Copyright of this material belongs exclusively to Michael A. Scarcella, Inc., and/or Capital Realty Analysts, Inc. This copy is intended for private use as defined in the body of the report for the designated client only. No person or entity is permitted to reproduce this material, in whole or in part, for distribution either free of charge or for 'commercial purposes', unless that person or entity has a signed license agreement with Michael A. Scarcella, Inc. and/or Capital Realty Analysts, Inc. Reproduction for commercial purposes is reproduction for the purposes of sale, rent, trade or distribution, or posting it on the Internet or on electronic bulletin boards. Cad 2014 CAPI1 AL REALTY ANALYSTS Page 12 MICHAEI, A. SCARCELI,A, MAI Education 1982 B.S., Business, University of Nevada, Las Vegas All required Appraisal Institute sponsored courses required to attain the MAI designation, along with Appraisal Institute sponsored courses, seminars and on-line forums required for continuing education. Professional Organizations/ Licensing Member of the Appraisal Institute - MAI Member Number 11072 Licensed by the State of California as a "Certified General Real Estate Appraiser". Office of Real Estate Appraisers, Appraiser Identification Number AG 019463. Appraisal Institute - So. Ca1. Chapter, 1997, 1998, 2001 Experience Review Committee; 1999, 2000, 2005 So. Ca1. Chapter Ethics Committee General Experience 1997 to Current Capital Realty Analysts - President 1991 to 1996 - MacKenzie and Associates - Staff Appraiser 1982 to 1991 - Hotel, Construction / Development Controller Qualified as an expert real estate witness, United States Bankruptcy Court Qualified as an expert real estate witness, Riverside County Superior Court Representative List of Clients Public Sector United States Of America RTC/FDIC Bureau of Indian Affairs BLM State of California State of Arizona Riverside County City of Palm Springs City of Coachella City of Desert Hot Springs City of Cathedral City City of Rancho Mirage City of Palm Desert City of Indian Wells City of Indio City of La Quinta Palm Springs Unified SD Desert Sands Unified SD Coachella Valley Unified SD Southern California Edison Coachella Valley Water Dist. Mojave Water Agency Eisenhower Memorial Hsp. Desert Hospital Private Sector Price Waterhouse Merrill Lynch CB Commercial Textron Bechtel Corporation KSL Recreation Corp. United States Filter Sunrise Company Trust for Public Land Mojave Desert Land Trust Canyon Development Lennar Homes Temple Construction Santa Fe Pacific Takenaka Corporation Betty Ford Center Heart Inst. of the Desert Basic Capital Management Estate of Walter Annenberg Estate of Frank Sinatra Wessman Development Attorneys Developers Accountants Cad © 2014 CAPITAL REALTY ANALYSTS Institutional Lenders Bank of America Rabobank N.A. Wells Fargo Bank Pacific Western Bank Washington Mutual Bank Bank Midwest Pacific National Bank Pacific Premier Bank Desert Commercial Bank Pacific Mercantile Bank Banc One Fidelity Federal Bank Bankers Trust Company Sunrise Community Bank Union Bank Commerce Federal Svgs Great American Bank Mitsubishi Bank Indymac Bank Foothill Independent Bank El Paseo Bank Palm Desert National Bank Bank Six First Bank 1 Page 13 Cad r i,I ry;iJ// 'w ''irr Prepared For: City of Palm Desert Attn: Mr. Martin Alvarez 73-510 Fred Waring Drive Palm Desert, CA. 92260 Date of Report: July 8, 2014 A Restricted Appraisal Report Of .25-Acres of Vacant Land Location: South Side of San Benito Circle, South of San Gorgonio Way, Palm Desert, CA., Otherwise Known As APN: 627- 092-043; Riverside County, CA. Date of Value: July 1, 2014 Capital Realty Analysts File No.: 14-4001 CAPITAL REALTY ANALYSTS MICHAEL A. SCARCELLA, MAI 78015 MAIN STREET, SUITE 207 LA QUINTA, CA 92253 PHONE: (760) 564-6222 FAx: (888) 985-9994 EMAIL: MIKE( ,,REALTYADVISOR.COM 136. sm. gag 222•23.221.1210.22.23,13223K-14 .• IMMO, OP Y. 22.2.4.1, Of 1.32 .321344-412 21212.1.211.12,3 11221132. 2203132.1113,11,22262 322 .11324 .033 6324. Vlt. 601232.3.2 ,AS ISMS" 5k A 316002 016038 616110 3'6.132 03401 016Q6 01340 011V12 916/69 CI6213 01609 0111,(0 016110 016,93 016234 r 1.415155 tow 01042.1 (02 KM Ida ."‘ • v. r 3 • "" mg . 49 ,53 • - - ALESSANDRO SAN 202 It 1141...2442 5.14.1.1.15.611 *wan • " BENITO POR. S 112. NW 114, SEC 20. T0SREE VT,' OF kW, OESET ;4 GORGONIO or. 5155.115554. tn 166616106 r "NS (16 912) "" nu olio 41 ALLEY . • II .x 111 12 12 1,2 .55,5 01540. - • - •• • PALM 455151‘551,550 4.555. Ar 5 AM.. IRA 012421 324 0I. 2S3 CgAll 2014 CAPITAL REALTY ANALYSTS DESERT 3' . I TRA 016236 016325 '316338 016366 G16314 0.6138 016343 Myr •14451. ....-1 _,.,,, ...'17t, , . 1 I MAI, Anti- 1 — 2 • 1 a a , -,.J ... ........1 ... :.-1.1... DR Mr I 1 627-09 I 2,15.1 A:417 'ore- E.: 05411..1,10 Vt.'4•1. Page 14 APN 627-092-043 7/2014 VICINITY MAP OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ECONOMIC DEVELOPMENT DEPARTMENT STAFF REPORT REQUEST: AUTHORIZATION TO EXECUTE A PURCHASE AND SALE AGREEMENT WITH THE CITY OF PALM DESERT FOR THE PROPERTY LOCATED AT 44-889 SAN CLEMENTE CIRCLE, KNOWN AS APN 627-071-071, PROPERTY 1(e) OF THE LONG RANGE PROPERTY MANAGEMENT PLAN SUBMITTED BY: Martin Alvarez, Director of Economic Development PROPERTY City of Palm Desert BUYER: 73510 Fred Waring Drive Palm Desert, CA 92260 DATE: November 2, 2015 CONTENT: Resolution No. OB- 135 Purchase and Sale Agreement (CONTRACT NO. SA34770) Appraisal / Vicinity Map Recommendation Waive further reading and adopt Resolution No. OB-135: 1. Authorize the Executive Director to execute a Purchase and Sale Agreement with the City of Palm Desert to sell the Successor Agency owned property located at 44- 889 San Clemente Circle (APN 627-071-071). 2. Authorize the Executive Director to execute said agreement after approval is received from the State Department of Finance. Executive Summary Approval of staff's recommendation will authorize the Executive Director to execute a Purchase and Sale Agreement (PSA) with the City of Palm Desert for the sale of a Successor Agency owned parcel located at 44-889 San Clemente Circle (see vicinity map). This parcel consists of a 6,098 square foot vacant parcel identified to be sold in the approved Long Range Property Management Plan. The PSA is in the amount of the appraised value ($45,000.00) and will require approval by the Oversight Board and the State Department of Finance, prior to execution. Background On June 2, 2014 the Successor Agency's Long Range Property Management Plan (LRPMP) was approved by the State Department of Finance (DOF). The subject parcel is identified as Site 1(e) on the LRPMP and requires disposition at fair market value. The site is vacant and totals 6,098 square feet and is located adjacent to the Alessandro West Corridor. Staff discussed with the City G \Econ Development\Martin Alvarez\SA Property Sales\Alessandro Alley\44-889 San Clemente \Oversight BoardSR 44889 PSA 11-2-15.doc Staff Report — Oversight Board Sale of Property- Site 1(e) APN 627-071-071 November 2, 2015 Page 2 of 2 Council the opportunity to acquire this site with City funds in order to facilitate the construction of the Alessandro West Improvement Project. Specifically, this parcel along with the vacant lot on the east side of San Marcos will be utilized to construct future parking improvements as part of the Alessandro West project. Discussion With the dissolution of the Redevelopment Agency and the recent approval of the Long Range Property Management Plan, the Successor Agency is tasked with selling this site. In anticipation of the sale of the property, the Successor Agency contracted with Capital Realty Analysts (CRA) to conduct a fair market appraisal. CRA's appraised value for the site is $45,000.00 (see attached appraisal). CRA's appraisal complies with the reporting requirements set forth in the Uniform Standards of Professional Appraisal Practice, under Standard Rule 2-2(a). Staff has prepared the attached Purchase and Sale Agreement, selling the site to the City of Palm Desert for the appraised value. Funding for the construction of the Alessandro West Improvement Project is available from the Successor Agency bond proceeds. The Oversight Board and DOF have approved the Alessandro Alley Bond Proceeds Funding Agreement. Staff recommends that the Oversight Board authorize the Executive Director to execute the Purchase and Sale Agreement with the City of Palm Desert for the appraised value of $45,000.00., pending approval from the DOF. Fiscal Analysis The property is listed on the LRPMP to be sold for fair market value. The LRPMP requires that all proceeds of the sale be distributed as property taxes to the affected taxing entities, in accordance with the terms of the California Health and Safety Code, Section 34191.5 (c)(2)(B). Each taxing entity including the City will receive a portion of the proceeds based on their respective tax rate. Submitted By: Martin Alvarez Director of Economic Development Reviewed: Department Head: Rudy Acosta, Assistant City Manager Lt.. 7 kc vvwwlcDr ) BY OVERSIGHT BOARD AQSGiJTi Paul S. Gibson, Director of Finance ON ` (r am royal: / „ VERIFIED B Original on file with City Clerk's Office M. Wohlmuth, Executive Director G:\Econ Development\Martin Alvarez\SA Property Sales\Alessandro Alley\44-889 San Clemente\Oversight BoardSR 44889 PSA 11-2-15 doc NOTICE OF REGULAR MEETING OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY Proposed Adoption of: A Resolution Directing the Execution of a Purchase and Sale Agreement with the City of Palm Desert for Property Located at 44-889 San Clemente Circle known as APN: 627-071-071, Property 1(e), Pursuant to the Long Range Property Management Plan Date: November 2, 2015 Time: 1:30 P.M. or as soon thereafter as the matter may be heard Place: Administrative Conference Room, located at Palm Desert City Hall, 73-510 Fred Waring Drive, Palm Desert, California NOTICE IS HEREBY GIVEN that at the meeting of the Oversight Board (the "Oversight Board") of the Successor Agency to the Palm Desert Redevelopment Agency (the "Successor Agency") to be held on November 2, 2015, at 1:30 P.M., or as soon thereafter as possible, the Oversight Board will consider the adoption of a resolution directing the execution of a Purchase and Sale Agreement with the City of Palm Desert for Property located at 44- 889 San Clemente Circle known as APN: 627-071-071, Property 1(e), pursuant to the Successor Agency's Long Range Property Management Plan. Such Long Range Property Management Plan has been approved previously by the Oversight Board and the California State Department of Finance. Interested persons are invited to attend this meeting and be heard regarding this matter. An individual who challenges any decision regarding the proposed action in court may be limited to raising only those issues such individual or someone else raised at the meeting described in this notice or in written correspondence delivered to the Oversight Board at, or prior to, the meeting. Due to the time constraints and the number of persons wishing to give oral testimony, time restrictions may be placed on oral testimony at the meeting regarding the proposal. Any interested person may wish to make comments in writing to assure that the relevant views are expressed adequately. Written comments may be submitted to the Oversight Board prior to the time set for the meeting, to the attention of the Secretary of the Oversight Board at 73-510 Fred Waring Drive, Palm Desert. Further information may be obtained by contacting Martin Alvarez, Dir. of Economic Development, at 73-510 Fred Waring Drive, Palm Desert, or by telephone at (760) 346-0611, Ext 467 or by email at malvarez@c ityofpalmdesert.org. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in an Oversight Board meeting, please contact the Office of the City Clerk of the City of Palm desert at (760) 346-0611. Notification at least 48 hours prior to the meeting or time when services are needed will assist the Oversight Board staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. Assisted hearing devices will be available at this hearing without prior notification Dated this �.� "day , 2015 RacKelle D. Klassen, Secretary to the Successor Agency to the Palm Desert Redevelopment Agency RESOLUTION NO. OB- 135 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AUTHORIZING THE EXECUTION OF A PURCHASE AND SALE AGREEMENT WITH THE CITY OF PALM DESERT FOR PROPERTY LOCATED AT 44-889 SAN CLEMENTE CIRCLE, PALM DESERT, CA (APN 627-071-071), PROPERTY NO. 1(e) OF THE LONG RANGE PROPERTY MANAGEMENT PLAN RECITALS: A. Pursuant to AB X1 26 (enacted in June 2011), as modified by the California Supreme Court's decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal. 4th 231 (2011), the Palm Desert Redevelopment Agency (the "Former Agency") was dissolved as of February 1, 2012 and the Successor Agency was established, and the Oversight Board to the Successor Agency (the "Oversight Board") was constituted. B. AB 1484 (enacted June 2012) amended and supplemented AB X1 26 (AB X1 26 and AB 1484, together, being referred to below as the "Dissolution Act"). C. Pursuant to the Dissolution Act, the Successor Agency is tasked with winding down the affairs of the Former Agency. D. Pursuant to Section 34175(b) of the California Health and Safety Code ("HSC"), all real properties of the Former Agency transferred to the control of the Successor Agency by operation of law. E. On May 5, 2014, the Oversight Board adopted Resolution No. OB-073, approving a long-range property management plan (the "LRPMP") which addresses the disposition of the real properties owned by the Successor Agency. F. As indicated in the DOF's letter dated June 2, 2014, the DOF has approved the LRPMP. G. Pursuant to HSC Section 34191.3, the DOF-approved LRPMP shall govern, and supersede all other provisions of the Dissolution Act relating to, the disposition and use of the real property assets of the Former Agency. H. Pursuant to the approved LRPMP, the Oversight Board authorizes the execution of a Purchase and Sale Agreement (see Exhibit A) with The City of Palm Desert for Property No. 1(e) of the LRPMP (APN 627-071-071) in the amount of $45,000.00 (fair market value). I. In accordance with the terms of California Health and Safety Code Section 34191.5(c)(2)(B), the proceeds of this property sale will be distributed as property taxes to the affected taxing entities. -1- RESOLUTION NO. OB-135 J. The Oversight Board is adopting this Resolution to direct the execution of the Purchase and Sale Agreement (see Exhibit A) with The City of Palm Desert for fair market value as directed by the approved LRPMP. K. Notice of the proposed action presented in this Resolution was posted on the Successor Agency's website (being a page on the City's website) and at three public places: beginning on October 21 , 2015. NOW, THEREFORE, THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The above recitals, and each of them, are true and correct. Section 2. The Oversight Board hereby authorizes and directs the Successor Agency to complete the execution of the Purchase and Sale Agreement (see Exhibit A) with The City of Palm Desert for fair market value as directed by the approved LRPMP. The Executive Director of the Successor Agency is hereby authorized to execute the Purchase and Sale Agreement to complete the disposition of the properties. Section 3. The members of the Oversight Board and officers and staff of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Resolution. Section 4. This Resolution shall become effective in accordance with HSC Section 34181(f). APPROVED and ADOPTED this day of , 2015. AYES: NOES: ABSENT: ABSTAIN: ROBERT A. SPIEGEL, CHAIR ATTEST: RACHELLE D. KLASSEN, SECRETARY OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY RESOLUTION NO. OB -135 EXHIBIT A OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY PURCHASE AND SALE AGREEMENT WITH THE CITY OF PALM DESERT FOR PROPERTY LOCATED AT 44-889 SAN CLEMENTE CIRCLE, PALM DESERT, CA (APN 627-071-071), PROPERTY NO. 1(e) OF THE LONG RANGE ROPERTY MANAGEMENT PLAN -3- RESOLUTION NO. OB-135 CONTRACT NO. SA34770 AGREEMENT OF PURCHASE AND SALE AND ESCROW INSTRUCTIONS Foresite Escrow ("Escrow") 41-995 Boardwalk, Ste G-2 Palm Desert, CA 92211 Attention: Esther Lopez, Escrow Officer ("Escrow Holder") Escrow No: THIS AGREEMENT OF PURCHASE AND SALE AND ESCROW INSTRUCTIONS ("Agreement") is dated for reference purposes as of this day of , 2015 (the "Effective Date"), by and between the SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, a public entity ("Seller"), and CITY OF PALM DESERT, a California municipal corporation ("Buyer"). This Agreement is made with reference to the following facts: RECITALS A. Seller is the owner of certain real property located in the City of Palm Desert, Riverside County, California, commonly known as APN: 627-071-071 and more particularly described in Exhibit A attached hereto ("Property"). Reference herein to the Property includes 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. B. Buyer desires to purchase the Property from Seller and Seller desires to sell the Property to Buyer pursuant to the terms and conditions set forth in this Agreement. THE PARTIES AGREE AS FOLLOWS: 1. Purchase and Sale of Property. Upon the terms and conditions described below, Buyer agrees to purchase and Seller agrees to sell and convey the Property to Buyer. 2. Purchase Price. The purchase price for the Property will be an amount equal to Forty Five Thousand Dollars ($45,000.00) ("Purchase Price"). The purchase price shall be paid in cash, and this Agreement is not subject to any financing contingency. 3. Payment of Purchase Price. Not later than two (2) business day prior to Closing, Buyer shall deposit with Escrow Holder in immediately available funds the Purchase Price, together with such other amounts, if any, as may be required in order to pay Buyer's share of prorations. RESOLUTION NO. OB-135 CONTRACT NO. SA34770 4. Title. 4.1 Preliminary Title Report. Upon execution of this Agreement by both parties, Seller will order from Lawyer's Title Company (through its Riverside, California office — "Title Company") a preliminary title report, together with legible copies of all title exception documents described therein (collectively the "Report"). Within five (5) business days after Buyer's receipt of the Report, Buyer may object, by written notice to Seller, to any title exceptions which Buyer determines are unacceptable, in Buyer's sole discretion. Seller may thereafter elect, at its option and at its sole cost and expense, either to eliminate such title objections prior to or at the Close of Escrow, or not to do so. If Seller is unable or unwilling to eliminate any such title objections, Buyer may elect to terminate this Agreement. Alternatively, Buyer may elect to waive any such title objections and accept title to the Property subject to such matters. 4.2 Title Policy. At Close of Escrow, Seller will convey good and marketable title to the Property to Buyer as evidenced by a CLTA Standard Form Owners Policy of Title Insurance, or at Buyer's election and expense, an ALTA Extended Owner's Policy of Title Insurance, issued by the Title Company in an amount equal to the Purchase Price, and containing such endorsements (the "Endorsements") as Buyer may, at Buyer's expense, reasonably require ("Title Policy"). 5. jlntentionally Omittedl. 6. As Is Acceptance of Property. Buyer acknowledges that prior to Close of Escrow, it will have had the opportunity to conduct such tests and evaluations as it deems reasonably necessary in order to investigate the condition of the Property, including its environmental status. Buyer acknowledges that it is acquiring the Property in its "as is" condition with no warranty or representation from Seller regarding the physical condition of the Property, its environmental condition or its suitability for Buyer's intended purposes. Buyer acknowledges that it is acquiring the Property based solely in reliance on its own inspections and examination and its own evaluation of the Property. Buyer agrees that no representations, statements or warranties have at any time been made by Seller or its agents regarding the physical condition of the Property except as may be contained in this Agreement. Buyer acknowledges that there may be conditions affecting the Property unknown to Buyer that may adversely affect its value or use for Buyer's intended purposes. Buyer nevertheless waives any rights or recourse it may have with respect to such unknown conditions and any damage, loss, costs or expense related thereto, including rights accruing under California Civil Code § 1542, which provides: "A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor." G \Econ Development\Martin Alvarez\SA Property Sales\Alessandro Alley\44-889 San Clemente\PD - SARDA - Purchase and Sale Agreement (44889) doc 2 RESOLUTION NO. OB-135 CONTRACT NO. SA34770 Buyer acknowledges that it has either consulted with or had an opportunity to consult with legal counsel regarding the above waiver. The provisions of this Section 6 will survive Close of Escrow. Buyer Initials 7. Escrow. 7.1 Escrow Instructions. This Agreement shall constitute instructions of Buyer and Seller to Escrow Holder. The parties agree to execute such additional pro forma instructions as Escrow Holder may reasonably require, however, in the event of a conflict, the terms and provisions of this Agreement shall govern. 7.2 Opening of Escrow. Upon execution of this Agreement, Buyer and Seller shall cause an escrow to be opened with Escrow Holder by depositing with Escrow Holder a fully executed copy of this Agreement. Escrow shall be deemed opened as of the date this Agreement is deposited with Escrow Holder ("Escrow Opening"). 7.3 Close of Escrow: Closing Date. "Close of Escrow" shall mean the date on which the Grant Deed conveying title from Seller to Buyer is recorded in the Official Records of the County Recorder of Riverside County, California. The form of the Grant Deed will be as set forth in Exhibit B attached hereto. Provided that this Agreement is not earlier terminated pursuant to the terms and provisions hereof, and provided that all of the conditions precedent to the Close of Escrow set forth in this Agreement have been approved or waived as herein provided, Escrow shall close on or before thirty (30) days following the Escrow Opening ("Closing Date"). Seller may terminate this Agreement if Seller has performed its obligations hereunder, and failure to close Escrow results from a material default by Buyer. Buyer may terminate this Agreement if Buyer has performed its obligations hereunder, and failure to close Escrow results from a material default by Seller. By causing the Close of Escrow to occur, Escrow Holder shall be deemed to have irrevocably committed to cause the Title Company to issue the Title Policy to Buyer. If the County Recorder of Riverside County, California is closed on the last day for closing Escrow, then the parties agree that Escrow Holder shall have until the next day the Recorder is open to record the Grant Deed and close Escrow. 7.4 Documents and Funds from Buyer. Not later than two (2) business days prior to the Closing Date, Buyer will deliver or will assure that the following documents and funds have been delivered to Escrow Holder: (a) Purchase Price. The Purchase Price, as described in Section 2 above. G \Econ Development\Martin Alvarez\SA Property Sales\Alessandro Alley\44-889 San Clemente\PD - SARDA - Purchase and Sale Agreement (44889).doc 3 RESOLUTION NO. OB-135 CONTRACT NO. SA34770 (b) Preliminary Change of Ownership Statement. A Preliminary Change of Ownership Statement or in lieu thereof, the appropriate fee, to be provided to the Recorder's office at Close of Escrow. (c) Other Sums and Documents. All other sums and documents required by Escrow Holder according to this Agreement to carry out and close the Escrow. 7.5 Documents and Funds from Seller. Not later than two (2) business day prior to the Closing Date, Seller will deliver or will assure that the following documents and funds have been delivered to Escrow Holder: (a) Grant Deed. A fully executed and acknowledged Grant Deed conveying the Property to Buyer, or Buyer's nominees or assigns, in fee simple. (b) FIRPTA Affidavit. An original affidavit, using Escrow Holder's standard forms, certifying that Seller and this transaction are not subject to the withholding requirements of the Foreign Investment in Real Property Tax Act and equivalent California legislation. (c) Other Sums and Documents. All other documents and sums required by Escrow Holder according to this Agreement to carry out the Escrow and to issue the Title Policy to Buyer in the form required by Buyer. 7.6 Conditions to the Close of Escrow. Close of Escrow shall not take place unless and until: (a) Seller's Obligation. Seller's obligation to sell the Property to Buyer is contingent on the following: (i) Buyer shall have delivered the Purchase Price, less any credits described in this Agreement, for the Property. (ii) Buyer shall have timely performed all other obligations of Buyer under this Agreement. In the event that any of the foregoing conditions have not occurred or been satisfied or waived by the Closing Date, Seller shall be entitled to terminate this Agreement and, subject to the provisions of Section 7.9 below, any funds deposited by Buyer and any interest thereon will be returned to Buyer. (b) Buyer's Obligation. Buyer's obligation to purchase the Property is contingent on the following: (i) Buyer shall have approved or shall be deemed to have approved the Report for the Property pursuant to Section 4.1. G.\Econ Development\Martin Alvarez\SA Property Sales\Alessandro Alley\44-889 San Clemente\PD - SARDA - Purchase and Sale Agreement (44889).doc 4 RESOLUTION NO. OB-135 CONTRACT NO. SA34770 (ii) Seller shall have delivered insured title to the Property on the terms required by Section 4. (iii) No loss or damage to the Property shall have occurred which would permit Buyer to terminate this Agreement pursuant to the provisions herein below. (iv) Seller shall have performed all of its other obligations under this Agreement. In the event that any of the foregoing conditions have not occurred or been satisfied or waived by the date(s) specified, Buyer shall be entitled to terminate this Agreement and, subject to the provisions of Section 7.9 below, any funds deposited by Buyer, and any interest thereon will be returned to Buyer. (c) Delivery of Sums and Documents. Both parties have deposited with Escrow Holder all sums and documents required by this Agreement. (d) Title Policy. The Title Company is prepared to issue the Title Policy to Buyer with title as described in Section 4 above. 7.7 Closing Procedure. Upon receipt of all funds and instruments described in this Section 7, and upon satisfaction or waiver of all contingencies and conditions set forth in this Agreement, Escrow Holder shall: (a) Record the Grant Deed. Record the Grant Deed in the Official Records of Riverside County, California. (b) Title Policy. Cause the Title Policy to be issued. (c) Purchase Price. Deliver the Purchase Price to Seller, less any costs and expenses shown on the closing statements approved by Seller and Buyer, which costs and expenses shall be disbursed as instructed by Seller and Buyer in escrow instructions delivered to Escrow Agent prior to the Closing Date. 7.8 Electronic/Counterpart Documents. In the event Buyer or Seller utilizes "facsimile" or other electronically 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 agree, if requested by Escrow Holder, 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 electronically transmitted 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. G.\Econ Development\Martin Alvarez\SA Property Sales\Alessandro Alley\44-889 San Clemente\PD - SARDA - Purchase and Sale Agreement (44889).doc 5 RESOLUTION NO. OB-135 CONTRACT NO. SA34770 7.9 Costs of Escrow and Closina Costs. Seller shall pay all of the Escrow Holder's fee, the costs and expenses associated with the Title Policy as described in Section 4, and any additional closing costs and charges relating to the closing of the sale of the Property. 7.10 Property Taxes and Assessments. Under Seller's ownership, the Property has not been subject to real property taxes or assessments. At the Close of Escrow, Buyer will become liable for all real property taxes and assessments (including any supplemental assessments) allocable to the Property after the Close of Escrow. 7.11 Brokers' Commissions. Neither party has had any contact or dealings regarding the Property, or any communication in connection with the subject matter of this transaction, through any real estate broker or other person who can claim a right to a commission or finder's fee in connection with the sale contemplated herein. If any other broker or finder perfects a claim for a commission or finder's fee based upon any such contact, dealings or communication, then the party through whom such person makes its claim shall indemnify, hold harmless and defend the other party (the "Indemnified Party") from any and all costs, damages, claims, liabilities, losses, or expenses, (including without limitation, reasonable attorneys' fees and disbursements) incurred by the Indemnified Party in defending against the claim. The provisions of this Section shall survive termination of this Agreement and the Close of Escrow. 7.12 Possession. Possession of the Property shall be surrendered to Buyer at the Close of Escrow. 7.13 Report to IRS. After Close of Escrow and prior to the last date on which such report is required to be filed with Internal Revenue Service ("IRS"), and if such report is required pursuant to Section 6045(e) of the Internal Revenue Code, Escrow Holder shall report the gross proceeds of the purchase and sale of the Property to the IRS on Form 1099-B, W-9 or such other form(s) as may be specified by the IRS pursuant to said Section 6045(e). Concurrently with such filing, Escrow Holder shall deliver a copy thereof to Buyer and Seller. 8. Remedies for Default. If Seller defaults under this Agreement, Buyer may, at its option, terminate this Agreement or initiate an action for specific performance of this Agreement. 9. Notices. Any and all notices required or permitted to be given hereunder shall be in writing and shall be (i) personally delivered, or (ii) sent by recognized overnight delivery service, mailed by certified or registered mail, return receipt requested, postage prepaid. Any such notice or communication shall be effective when received by the addressee or upon refusal of such delivery to the parties at the addresses indicated below: G \Econ Development\Martin Alvarez\SA Property Sales\Alessandro Alley\44-889 San Clemente\PD - SARDA - Purchase and Sale Agreement (44889) doc 6 RESOLUTION NO. OB-135 CONTRACT NO. SA34770 To Seller: To Buyer: Successor Agency of the Palm Desert Redevelopment Agency c/o City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Attn: Executive Director City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Attn: City Manager Any party may change its address by a notice given to the other party in the manner set forth above. 10. Miscellaneous. 10.1 Integration. This Agreement supersedes all prior agreements and understandings between the parties relating to the subject matter hereof. Neither of the parties has relied upon any oral or written representation or oral or written information given to it by any representative of the other party. 10.2 Binding Effect. This Agreement shall bind and inure to the benefit of the parties, their respective heirs, successors and assigns. 10.3 Amendment/Modification. No change or modification of the terms or provisions of this Agreement shall be deemed valid unless in writing and signed by both parties. 10.4 Governing LawNenue. This Agreement shall be construed, interpreted and applied in accordance with the laws of the State of California. Any litigation or arbitration regarding the Property or this Agreement will be brought in Riverside County Superior Court or conducted in Riverside County. 10.5 Business Days. Reference herein to "business days" means any day excluding Saturday, Sunday and any day which is a legal holiday under the laws of the State of California or in the City of Palm Desert. 10.6 Waiver. No waiver of any breach or default shall be construed as a continuing waiver of any provision or as a waiver of any other or subsequent breach of any provision contained in this Agreement. 10.7 Attorneys' Fees. In the event of any action or proceeding to enforce or construe any of the provisions of this Agreement, the prevailing party in any such action or proceeding shall be entitled to reasonable attorneys' fees and costs. G:\Econ Development\Martin Alvarez\SA Property Sales\Alessandro Alley\44-889 San Clemente\PD - SARDA - Purchase and Sale Agreement (44889) doc 7 RESOLUTION NO. OB-135 CONTRACT NO. SA34770 10.8 Assignability. Any assignment of Buyer's rights under this Agreement shall require the prior written consent of Seller, which Seller may grant or withhold in its sole discretion. 10.9 Time of the Essence. Time is of the essence of this Agreement. 10.10 Escrow Agent. Escrow Agent shall conduct the Close of Escrow in accordance with the terms and provisions of the escrow instructions to be given to Escrow Agent by the parties in a form consistent with this Agreement. To the extent of any conflict or inconsistency between the terms and provisions of this Agreement and the escrow instructions, the terms of this Agreement shall control. 10.11 Exhibits. All Exhibits which are referred to herein and which are attached hereto or bound separately and initialed by the parties are expressly made and constitute a part of this Agreement. 10.12 Counterparts. This Agreement may be executed in counterparts and when so executed by the parties, shall become binding upon them and each such counterpart will be an original document. REMAINDER OF PAGE INTENTIONALLY LEFT BLANK SIGNATURE PAGE FOLLOWS G:\Econ Development\Martin Alvarez\SA Property Sales\Alessandro Alley\44-889 San Clemente \PD - SARDA - Purchase and Sale Agreement (44889).doc 8 RESOLUTION NO. OB-135 CONTRACT NO. SA34770 SELLER: SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY By: Name: John M. Wohlmuth Its: Executive Director BUYER: CITY OF PALM DESERT, a California municipal corporation By: John M. Wohlmuth, City Manager ATTEST: APPROVED AS TO LEGAL FORM: BEST BEST & KRIEGER LLP Rachelle Klassen, City Clerk David J. Erwin, City Attorney G:\Econ Development\Martin Alvarez\SA Property Sales\Alessandro Alley\44-889 San Clemente\PD - SARDA - Purchase and Sale Agreement (44889).doc 9 RESOLUTION NO. OB-135 CONTRACT NO. SA34770 CONSENT AND ACKNOWLEDGMENT OF ESCROW HOLDER Escrow Holder hereby agrees to (i) accept the foregoing Agreement, (ii) act as the Escrow Holder under said Agreement and (iii) be bound by said Agreement in the performance of its duties as Escrow Holder. Escrow Holder acknowledges receipt on the date hereof of originals or counterparts of the foregoing Agreement fully executed by Seller and Buyer. Dated: Escrow Holder advises the parties that the date of the Opening of Escrow is , 2015. , 2015 FORESITE ESCROW By: Its: Escrow Officer G'\Econ Development Martin Alvarez SA Property Sales\Alessandro Alley\44-889 San Clemente\PD - SARDA - Purchase and Sale Agreement (44889) doc 10 RESOLUTION NO. OB-135 CONTRACT NO. SA34770 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: Exhibit A RESOLUTION NO. OB-135 CONTRACT NO. SA34770 EXHIBIT B GRANT DEED [See Attached] RESOLUTION NO. OB-135 CONTRACT NO. SA34770 Exhibit B Form of Grant Deed RECORDING REQUESTED BY: SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY c/o CITY OF PALM DESERT 73-510 Fred Waring Drive Palm Desert, California 92260 Attn: Executive Director WHEN RECORDED RETURN TO: CITY OF PALM DESERT 73-510 Fred Waring Drive Palm Desert, California 92260 Attn: City Clerk Exempt from Recording Fees Pursuant to G.C. 6103 APN: 627-071-071 Above Space for Recorder's Use Documentary transfer tax is $0.00 Exempt from Documentary Transfer Taxes Pursuant to R & T Code Section 11922 GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, a public entity ("Grantor"), hereby grants to CITY OF PALM DESERT, a California municipal corporation ("Grantee"), the following described real property (the "Property") situated in the City of Palm Desert, County of Riverside, State of California: See Exhibit A attached hereto. AND excepting therefrom any public rights of way or easements. IN WITNESS WHEREOF, Grantor has caused its name to be affixed hereto and this instrument to be executed by its duly authorized officer. DATED: , 2015 GRANTOR: SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY By: Name: John M. Wohlmuth Its: Executive Director RESOLUTION NO. OB-135 CONTRACT NO. SA34770 Exhibit B Form of Grant Deed EXHIBIT A LEGAL DESCRIPTION OF PROPERTY THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: RESOLUTION NO. OB-135 CONTRACT NO. SA34770 Exhibit B Form of Grant Deed CALIFORNIA ALL PURPOSE ACKNOWLEDGMENT A notary public or other office completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. State of California County of ) SS. On , 20_, before me, , a Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature August 13, 2015 Successor Agency to the Palm Desert Redevelopment Agency Attn: Mr. John Wohlmuth 73-510 Fred Waring Drive Palm Desert, CA. 92260 CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS ♦ ADVISORS 78-015 MAIN STREET, SUITE 207 LA QUINTA, CA 92253-8962 RE: .14-Acres of Vacant Land, Located at the Southwest Corner of San Marcos Avenue and San Clemente Circle, Palm Desert, CA., Otherwise Known As APN: 627-071-071; Riverside County, CA. Dear Mr. Alvarez: At your request and authorization, I have completed this restricted appraisal report, setting forth my opinion of the market value of the fee simple estate in the subject property as of July 30, 2015. Per your request, the following market value estimates are reported for the subject property: 4- Market Value "As Is" The subject property includes .14-acres of vacant land, located at the SWC of San Marcos Avenue & San Clemente Circle, Palm Desert, CA. The property has a General Plan designation of Medium Density Residential. Surrounding uses are single family residential on similarly sized lots. Because the format of this report is restricted, some or all information that support the analysis, conclusions and opinions in the report are retained in my files. This report may not be properly understood without the additional information contained within my files. The following guidelines apply to this report: 4- The property rights being appraised are the fee simple estate. - The purpose of the appraisal is to estimate the market value of the fee simple estate in the subject property "As Is". Definition of Market Value The definition of market value for this appraisal is as follows: "The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: Phone: (760) 564-6222 Fax: (888) 985-9994 Email: mike@realtyadvisor.com August 13, 2015 Capital Realty Analysts / Mr. John Wohlmuth Page 4 The property was acquired in order to add to the assemblage of parcels located along the alley along the south line of the subject site in order to facilitate a future expansion of the alley. According to the Desert Area MLS, the property is not currently listed for sale. An Assessor's Plat Map for the subject property is included in the Addendum. The Client's need for a current market value estimate generated the requirement for this analysis. Appraisal Process A direct Sales Comparison Approach is applied to estimate the market value of the fee simple estate in the subject property. Lacking improvements with an associated cost or income earning ability, the Cost Approach and the Income Approach are not considered relevant. Sales Comparison Approach The following table shows the data applied to estimate the market value of the subject property: Sale # Location Sale Size Size Sale Sale Price Date (Acres) (SF) Price Per SF 1 S Side of Florida Avenue, W of Tennessee Avenue Palm Desert, CA. 1/22/15 0.15 6,460 $72,000 $11.15 2 Portola Palms Lot 134 SWC of Fred Waring & Magnesia Falls Palm Desert, CA. 12/ 16/ 14 0.08 3,485 $25,000 $7.17 3 W side of Chaparrosa Way, S of Fuller Drive Palm Desert, CA. 2/27/15 0.09 3,920 $50,000 $12.75 4 E side of Nevada Circle East, South of Merle Way Palm Desert, CA. 6/ 10/ 14 0.09 3,920 $65,000 $16.58 Sub. SWC of San Marcos Avenue & San Clemente Circle Palm Desert, CA 0.14 6,098 Sale 1 is located in the Palm Desert Country Club area. The lot backs to Fred Waring Drive. This data point is superior to the subject in locational quality, but similar in size. In addition, this data point is the most recent sale of a sufficiently similar detached SFR lot in Palm Desert that I could locate and verify. Overall, downward adjustment is required. Sales 2, 3 and 4 are mobile home lots located within Portola Palms, Palm Desert Greens and the Portola Country Club respectively. August 13, 2015 Capital Realty Analysts / Mr. John Wohlmuth Page 5 These lots were selected for comparison, as they would support similarly priced retail home values as compared to the subject, and no other detached SFR lots located in the immediate area of the subject have recently sold. Sale 2 is located in Portola Palms. This community of 142 mobile homes has a good location, but lacks significant common amenities. Overall upward adjustment is required. Sales 3 and 4 are both located in parks with executive golf courses. These 2 sale properties would both have a much higher level of marketability, and value, as both are located in gated communities with golf. Overall downward adjustments are required of Sales 3 and 4. Conclusion Although Sale 1 is the only recent, sufficiently similar detached SFR lot sale and is most similar in size as compared to the subject; the locational quality of the property is superior. Sales 2-4 could potentially attract a similar buyer. However, the lots are smaller and located in gated communities; hence all 3 are considered fair indicators. Clearly, the lack of market sales activity; and the subject's location in an area of aging SFRs suggests a lower range PSF value estimate as of the date of value. Based upon the available data, I conclude that the market value of the fee simple estate in the subject property "As Is", as of July 30, 2015 is as follows: $7.50 PSF x 6,098 SF = $45,735 $45,000 (Rounded) (Forty Five Thousand Dollars) The undersigned have no personal interest either present or contemplated in the subject property and certify that my employment was not dependent upon producing a specific value, or a value within a given range. No fee, received or to be received for the employment of my services is in any way contingent on the opinions reported herein. I hope you find the details of this appraisal report relevant to your decisions. Thank you for the opportunity to be of service. Respectfully submitted, CAPITAL REALTY ANALYSTS Michael A. Scarcella, MAI State Certification No.: AGO19463 Expiration Date: October 24, 2015 Certification I certify that, to the best of my knowledge and belief... The statements of fact contained in this Report are true and correct. The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and is my personal, unbiased professional analyses, opinions and conclusions. I have no present or prospective interest in the property that is the subject of this Report, and I have no personal interest or bias with respect to the parties involved. My engagement in this assignment was not contingent upon developing or reporting predetermined results. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. My analysis, opinions and conclusions were developed, and this Report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) adopted by the Appraisal Standards Board of the Appraisal Foundation, except that the Departure Provision of the USPAP shall not apply to federally related transactions. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. I certify that the use of this Report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this Report, I have completed the requirements of the continuing education program of the Appraisal Institute. I have made a personal inspection of the property that is the subject of this Report. No other person provided significant professional assistance to the person(s) signing this Report. CM© 2015 CAPITAL REALTY ANALYSTS Page 6 Certification (cont'd) This Appraisal assignment was not based on a requested minimum valuation, a specific valuation or the approval of a loan. I certify that, to the best of my knowledge and belief, the reported analyses, opinions and conclusions were developed, and this Report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. I previously appraised the subject property of this report on June 10, 2007 for the City of Palm Desert. Michael A. Scarcella, MAI State Certification No.: AG019463 Expiration Date: October 24, 2015 Cq4© 2015 CAPITAL REALTY ANALYSTS Page 7 Addendum C4 © 2015 CAPITAL REALTY ANALYSTS Page 8 Assumptions and Limiting Conditions This appraisal report has been made with the following general assumptions and limiting conditions: 1. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 2. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed. 4. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. The appraiser reserves the right to make adjustments to the analyses, opinions and conclusions in this report, as may be required by consideration of additional or revised data that may become available. 5. All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for obtaining the engineering studies that may be required to discover them. 7. It is assumed that the property is in full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. 8. It is assumed that the property conforms to all applicable zoning and use regulations and restrictions unless nonconformity has been identified, described and considered in the appraisal report. 9. It is assumed that all required licenses, certificates of occupancy, consents, and other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. \r qiiil © 2015 CAPITAL REALTY ANALYSTS Page 9 Assumptions and Limiting Conditions 10. It is assumed that the utilization of the land and improvements is confined within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. 11. Unless otherwise stated in this report, the existence of hazardous materials, which may or may not be present on the subject property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea -formaldehyde foam insulation and other potentially hazardous materials may affect the value of the property. The value estimated is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for such conditions or for any expertise or engineering knowledge required to discover them. The intended user is urged to retain an expert in this field, if desired. 12. Any allocation of the total value estimated in this report between the land and the improvements applies only under the stated program of utilization. The separate allocations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. 13. Except for use in the Official Statement as required for bond issuance, possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event only with properly written qualification and only it its entirety. 14. The appraiser herein by reason of this appraisal is not required to give further consultation, testimony, or be in attendance in court with reference to the property in question unless arrangements have been previously made. 15. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser. C4 © 2015 CAPITAL REALTY ANALYSTS Page 10 Assumptions and Limiting Conditions 16. Improved Properties - The Americans with Disabilities Act ("ADA") became effective January 26, 1992. I (we) have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since I (we) have no direct evidence relating to this issue, I (we) did not consider possible non-compliance with the requirements of ADA in estimating the value of the property. 17. Improvements, Proposed Improvements - The value estimates in this report are subject to the improvements being completed in the manner represented to the Appraiser(s), and described in the Improvement Description section of this report. 18. The legal descriptions, site sizes, dimensions and/or other surveys provided to the appraiser, including County Tax Plats, are assumed to be accurate. Should a survey prove these characteristics inaccurate, it may be necessary for the appraisal to be adjusted. 19. The forecasts, projections, or operation estimates contained herein are based upon current market conditions, anticipated short-term supply and demand factors, and a continued state economy. These forecasts are therefore, subject to change in the future. 20. The appraiser undertaking this assignment warrants that he is competent in properly identifying the appraisal problem and has the necessary knowledge and experience to complete the assignment. 21. Provision of an insurable value by the appraiser does not change the intended user or intended purpose of the appraisal. The appraiser assumes no liability for, and does not guarantee that any estimate or opinion will result in the subject property being fully insured for any possible loss that may be sustained. The appraiser recommends that an insurance professional be consulted. Mai © 2015 CAPITAL REALTY ANALYSTS Page 11 Assumptions and Limiting Conditions 22. Copyright of this material belongs exclusively to Michael A. Scarcella, Inc., and/or Capital Realty Analysts, Inc. This copy is intended for private use as defined in the body of the report for the designated client only. No person or entity is permitted to reproduce this material, in whole or in part, for distribution either free of charge or for 'commercial purposes', unless that person or entity has a signed license agreement with Michael A. Scarcella, Inc. and/or Capital Realty Analysts, Inc. Reproduction for commercial purposes is reproduction for the purposes of sale, rent, trade or distribution, or posting it on the Internet or on electronic bulletin boards. Cad© 2015 CAPITAL REALTY ANALYSTS Page 12 MICHAEL A. SCARCELLA, MAI Education 1982 B.S., Business, University of Nevada, Las Vegas All required Appraisal Institute sponsored courses required to attain the MAI designation, along with Appraisal Institute sponsored courses, seminars and on-line forums required for continuing education. Professional Organizations/Licensing Member of the Appraisal Institute - MAI Member Number 11072 Licensed by the State of California as a "Certified General Real Estate Appraiser". Office of Real Estate Appraisers, Appraiser Identification Number AG 019463. Appraisal Institute - So. Cal. Chapter, 1997, 1998, 2001 Experience Review Committee; 1999, 2000, 2005 So. Cal. Chapter Ethics Committee General Experience 1997 to Current Capital Realty Analysts - President 1991 to 1996 - MacKenzie and Associates - Staff Appraiser 1982 to 1991 - Hotel, Construction / Development Controller Qualified as an expert real estate witness, United States Bankruptcy Court Qualified as an expert real estate witness, Riverside County Superior Court Representative List of Clients Public Sector United States Of America RTC/FDIC Bureau of Indian Affairs BLM State of California State of Arizona Riverside County City of Palm Springs City of Coachella City of Desert Hot Springs City of Cathedral City City of Rancho Mirage City of Palm Desert City of Indian Wells City of Indio City of La Quinta Palm Springs Unified SD Desert Sands Unified SD Coachella Valley Unified SD Southern California Edison Coachella Valley Water Dist. Mojave Water Agency Eisenhower Memorial Hsp. Desert Hospital Private Sector Price Waterhouse Merrill Lynch CB Commercial Textron Bechtel Corporation KSL Recreation Corp. United States Filter Sunrise Company Trust for Public Land Mojave Desert Land Trust Canyon Development Lennar Homes Temple Construction Santa Fe Pacific Takenaka Corporation Betty Ford Center Heart Inst. of the Desert Basic Capital Management Estate of Walter Annenberg Estate of Frank Sinatra Wessman Development Attorneys Developers Accountants C4 © 2015 CAPITAL REALTY ANALYSTS Institutional Lenders Bank of America Rabobank N.A. Wells Fargo Bank Pacific Western Bank Washington Mutual Bank Bank Midwest Pacific National Bank Pacific Premier Bank Desert Commercial Bank Pacific Mercantile Bank Banc One Fidelity Federal Bank Bankers Trust Company Sunrise Community Bank Union Bank Commerce Federal Svgs Great American Bank Mitsubishi Bank Indymac Bank Foothill Independent Bank El Paseo Bank Palm Desert National Bank Bank Six First Bank 1 Page 13 = M E T R O S CAN PROPERTY P R O F I L E= Riverside (CA) «< OWNERSHIP INFORMATION »> Parcel Number :627 071 071 Ref Parcel Nbr :000 000 000 Owner Name CoOwner Site Address Mail Address Owner Phone Transferred : Document # . Sale Price . Deed Type % Owned Bldg #1 of 1 S: T: Pos Interest: R: :Redevelopment Agency City of Palm Desert :44889 San Clemente Cir Palm Desert 92260 :73510 Fred Waring Dr Palm Desert Ca 92260 :100 Land Structure Other Total• Improved . «< SALES AND LOAN INFORMATION »> Loan Amount Lender Loan Type Interest Rate Vesting Type «< ASSESSMENT AND TAX INFORMATION »> Exempt Type Exempt Amount . Tax Rate Area :18-388 Taxes «< PROPERTY DESCRIPTION »> Map Grid : Census :Tract:451.08 Block:1 Land Use :R2 Res,2 Or 3 Units Legal :.14 ACRES M/L IN POR LOT 116 MB :021/016 PALMA VILLAGE UNIT 7 Sub/Plat :Palma Village Unit 7 Book :21 Page:16 TractNum : Lot :116 Block * Bedrooms . * BathFull * Bath3Qtr * BathHalf * BathTotal: * Cntrl Ht :No * Cntrl A/C:No * Fireplace:No * «< PROPERTY CHARACTERISTICS »> Pool :No RoofType: YearBlt : Stories :1 Units . Bldg SF : Grg Type:Carport Grg SF . Lot Acres:.14 Lot SqFt :6,098 StreetTyp:Paved Waterfrnt: Elect Svc:Developed Gas Svc :Developed WaterSrce:Developed SewerType:Sewer 4: Zoning:R1 Ag Preserve : Misc Impry :Addition ADDITIONALS RmAdditions :No AddtlSgFt . AddtlGrgTyp : AddtlPkgSgFt: **************************************************************************************** Information compiled from various sources. CoreLogic makes no representations or warranties as to the accuracy or completeness of information contained in this report. Prepared For: Successor Agency to the Palm Desert Redevelopment Agency Attn: Mr. John Wohlmuth 73-510 Fred Waring Drive Palm Desert, CA. 92260 A Restricted Appraisal Report Of .14-Acres of Vacant Land Location: SWC of San Marcos Avenue & San Clemente Circle, Palm Desert, CA., Otherwise Known As APN: 627-071- 071; Riverside County, CA. Date of Report: August 13, 2015 Date of Value: July 30, 2015 Capital Realty Analysts File No.: 15-4134 CAPITAL REALTY ANALYSTS MICHAEL A. SCARCELLA, MAI 78015 MAIN STREET, SUITE 207 LA QUINTA, CA 92253 PHONE: (760) 564-6222 FAX: (888) 985-9994 EMAIL: MIKE@REALTYADVISOR.COM August 13, 2015 Capital Realty Analysts / Mr. John Wohlmuth Page 3 Definition of Market Value 1. Buyer and seller are typically motivated. 2. Both parties are well informed or well advised, and acting in what they consider their best interests; 3. A reasonable time is allowed for exposure on the open market; 4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 4- Assumptions and limiting conditions are attached. 4- The intended use and sole purpose of this value estimate is for internal use by the Client. 4- The required certifications are attached. 4- Effective Date of Value: July 30, 2015 4- Highest and Best Use "As Vacant": Hold for investment 4- Highest and Best Use "As Improved": N/A, the subject property is vacant History of the Subject Property The subject parcel was acquired by the City of Palm Desert in 2009 for $285,000. At the date of sale, the property was improved with a 2,216 SF residential triplex. The improvements were constructed new in 1959 as a single-family home. The property was subsequently converted to a triplex. The improvements were reported to be in poor condition on the sale date. The triplex has since been demolished and the site is currently vacant. 44-889 San Clemente Circle Date: 2015 VICINITY MAP AVA(LABLC FotZ AYA /LABLf: FOR PC.M1Ft'I't>^.'G