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HomeMy WebLinkAboutRes OB-145 (2)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 TO SELL 1-ACRE OF THE SUCCESSOR AGENCY'S PROPERTY 12(G) LOCATED ON THE NORTH SIDE OF COUNTRY CLUB DRIVE, EAST OF PORTOLA AVENUE (APNs: 620-430-024, 025) TO THE CITY OF PALM DESERT SUBMITTED BY: Martin Alvarez, Director of Economic Development PROPERTY: City of Palm Desert BUYER DATE: April 4, 2016 CONTENTS: Resolution No. OB- 145 Purchase and Sale Agreement (CONTRACT NO. SA35150) Site Map Appraisal Recommendation Waive further reading and adopt Resolution No. OB- 145 . 1. Approving a Purchase and Sale Agreement to sell 1-acre of the 9.34 acre property located on the north side of Country Club Drive, east of Portola Avenue, Palm Desert, California (APNs: 620-430-024, 025) with the City of Palm Desert in the amount of $305,000.00 (fair market value) and authorize the City Attorney to make non -substantive changes; and 2. Authorize the Executive Director to execute said agreement after approval is received from the State Department of Finance (DOF). Background The subject property is listed on the Long Range Property Management Plan (LRPMP) as Desert Willow Lot Pad 12(g) (known as "The Property"). The Property consists of two (2) undeveloped parcels totaling 9.34 acres, located on the north side of Country Club Drive, east of Portola Avenue and its land use designation is commercial/office use. In January of 2016, the Oversight Board and DOF approved an amendment to a Purchase and Sale Agreement with Desert Equity Group, allowing the extension of escrow to October 15, 2016 and allowing the modification of the property sale from 9.34 acres to 8.34. The reduction Oversight Board Staff Report Authorize Purchase/Sale Agreement with City for 1-acre of APN: 620-430-024 April 4, 2016 Page 2 of 2 in site area would allow the City to purchase the property and negotiate a transfer of 1-acre to Coachella Valley Water District (CVWD) for use as a future well site. Discussion Staff has worked with CVWD to locate a new well site location south of Frank Sinatra Drive. Recent testing of existing well sites in the northern section of Palm Desert has revealed the need to treat well water to address the presence of Chromium 6. In discussions with CVWD, they identified the subject property currently under contract with Desert Equity as a feasible site for a future well site. Specifically, CVWD is looking to utilize 1-acre of the 9.34 acres for a future well site located at the southwest corner of this site, with 150 feet of Country Club frontage and 290 feet of depth. Staff has prepared a legal description and plat map to carve 1-acre from the 9.34 acre site (see site map). In anticipation of the sale of the 1-acre site, the Successor Agency contracted Capital Realty Analyst (CRA) to conduct a fair market property appraisal. The CRA appraisal complies with the reporting requirements set forth in the Uniform Standards of Professional Appraisal Practice, under Standard Rule 2-2(a). CRA's fair market appraised value for the site is $305,000.00 (see attached appraisal). Staff recommends that the Successor Agency sell a 1-acre site from Property 12(g) of the LRPMP to the City of Palm Desert, for $305,000.00 (appraised value). If the Oversight Board authorizes the sale of the property, staff recommends that the Executive Director be authorized to finalize and execute the attached Purchase and Sale Agreement, once the State Department of Finance grants approval. Fiscal Analysis The subject property was 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 Martin Alvarez Director of Economic Development Reviewed: (15 aul Gibson, Director of Finance Appr ed: Ott - phi John M. Wohlmuth, City Manager udy Acosta Assistant City Manager AwrPil_P4-1-, BY OVERSIGHT B teRW r/ AS T, —0 _ 2-�( VERIFIED Original on file with City Clerics Office G \Econ Development\Martin Alvarez \SA Property Sales\Desert Willow Lot Pads\Lot Pad G\CVWD 1-acre\OB-SR 4-4-16 DW-G-CVWD.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 a 1 Acre parcel from the 9.34 Acres Located on the North Side of Country Club Drive, East of Portola Avenue known as APN: 620-430-024, 025, Property 12(g) Pursuant to the Long Range Property Management Plan Date: April 4, 2016 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 April 4, 2016, 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 a 1 Acre parcel from the 9.34 acres located on the North Side of Country Club Drive, East of Portola Avenue known as a portion of APN: 620-430-024, 025, Property 12(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 arc 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 td a� Dated this day ya , 2016 Rac • - e P . Klassen, J Secretary to the Successor Agency to the Palm Desert Redevelopment Agency RESOLUTION NO. OB - 145 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 TO SELL ONE ACRE OF THE SUCCESSOR AGENCY'S PROPERTY LOCATED ON THE NORTH SIDE OF COUNTRY CLUB DRIVE, EAST OF PORTOLA AVENUE, PALM DESERT, CA (APN 620-430-024 AND 620-430-025, PROPERTY 12g 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 Tong -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 with the City of Palm Desert for 1 acre of Property 12g of the LRPMP (APN 620-430-024 and 620-430-025). -1- RESOLUTION NO. OB - 145 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 distributed as property taxes to the affected taxing entities. J. The Oversight Board is adopting this Resolution to direct the execution of a Purchase and Sale Agreement with the City of Palm Desert in the amount of $305,000.00 (appraised 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 March 23 , 2016. 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 with the City of Palm Desert. The Chair (or in the Chair's absence, the Vice Chair) of the Board of Directors of the Successor Agency is hereby authorized to execute the Purchase and Sale Agreement and to complete the disposition of the property. 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. -2- RESOLUTION NO. OB - 145 Section 4. This Resolution shall become effective in accordance with HSC Section 34181(f). APPROVED and ADOPTED this day of , 2016. 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 -3- CONTRACT NO. SA35150 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 4th day of April, 2016 (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 a 1 acre portion of APN: 620- 430-024 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 Three Hundred Five Thousand Dollars ($305,000.00) ("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 closing costs prorations. CONTRACT NO. SA35150 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. flntentionally 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 \feon De,dopmeni\dartin Aharez\SA Property Sales\Desert Willow Lot Pads\Lot Pad G\CVWD I-acrc\PSA CVWD 4-4-16 doc 2 CONTRACT NO. SA35150 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 DevelopmenPManm Alvarez\SA Properly Sales\Desert Willow Lot Pads\I.ot Pad G\CVWD I-acretPSA CVWI) 4-4-16 doc 3 CONTRACT NO. SA35150 (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. (i hcon Deselopmeni\Martin Alvarez\SA Property Sales`Desert Willow Lot Pads Tot Pad G\('\'WD 1-acre\PSA CVWD 4-4-16 doc 4 CONTRACT NO. SA35150 (ii) Seller shall have delivered insured title to the Property on the terms required by Section 4. (iii) No Toss 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 Closina 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 \f con Des clopnicnQAtartin Alsarc,,SA Property Sales\Desert Willow Lot Pads \Lot I'ad G\CVWD I-acre\PSA CVWD 4-4-16 doc 5 CONTRACT NO. SA35150 7.9 Costs of Escrow and Closing 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 \Eton Deselopment`.tartm Alvarer`SA Property Sales\Desert Willow Lot Pads\Lot Pad G\CVWD I-acre\PSA CVWD 4-4-16 dot 6 To Seller: To Buyer: CONTRACT NO. SA35150 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 Law/Venue. 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\Martm Alsarer\SA Property Sales\Desert Willow Lot Pads'1 of Pad G\CVWD I-acre\PSA CVWD 4-4-16 doc 7 CONTRACT NO. SA35150 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 d.con Des elopment\.\lapin Alsarez\SA Property Sales\Desen Willow Lot Pads\Lot Pad G\CVWD 1-acre\PSA CVWD 4-4-16 doc 8 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 CONTRACT NO. SA35150 ATTEST: APPROVED AS TO LEGAL FORM: BEST BEST & KRIEGER LLP Rachelle Klassen, City Clerk Robert W. Hargreaves, City Attorney (i \Econ Deselopment\Manm Alvarez \SA Property Sales\Desert Willow Lot Pads\Lot Pad G\CVWD I-acre`8SA CVWD 4-4-16 doc 9 CONTRACT NO. SA35150 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 , 2016. , 2016 FORESITE ESCROW By: Its: Escrow Officer G \Econ Des elopment\ 1artin AlsareL\SA Property Sales\Desert Willow Lot Pads\Lot Pad G\CVWD 1-acre\PSA CVWD 4-1-16 doe 10 CONTRACT NO. SA35150 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 72 500.00000\9420714.1 EXHIBIT B GRANT DEED [See Attached] Exhibit 1 to Grant Deed CONTRACT NO. SA3515O 72500 00000\9420714.1 CONTRACT NO. SA35150 EXHIBIT "B" 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: COACHELLA VALLEY WATER DISTRICT 75525 Hovley Lane East Palm Desert, CA. 92211 Exempt from Recording Fees Pursuant to G.C. 6103 APN: A portion of 620-430-024 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: , 2016 GRANTOR: SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY By: Name: John M. Wohlmuth Its: Executive Director CONTRACT NO. SA35150 EXHIBIT "B" 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 ) SS. County of 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 CONTRACT NO. SA35150 EXHIBIT "B" 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: 1 7 „ 0 A A C4/100: g;;Eolz.n, L ;.•); ca; Pr4U-Pi-0,71T, 3-;,32)1,'9 We; " ; "17 tt; ; ism.111‘ ' g Air I, lb III • ANAhmh-aira f. CVWD Well Site 1 ACRE Potential 1-Acre Well Site Date: 3/2016 VICINITY MAP 1-Acre Portion of 9.34-Acres of Vacant Land Located Along the North Side of Country Club Drive, East of Portola Avenue, City of Palm Desert, Riverside County, CA. Appraisal Report Market Value Fee Simple Estate, As -Is Prepared For: The City of Palm Desert Attn: Mr. Martin Alvarez 73510 Fred Waring Drive Palm Desert, CA 92260 75-015 Main Street, Suite 20/ la Quinta, Ca 92253 Effective Date of Appraisal: March 1, 2016 CRA File No. 16-4183 C R A CAPITAL REALTY ANALYSTS C RIA CAPITAL REALTY ANALYSTS March 10, 2016 The City of Palm Desert Attn: Mr. Martin Alvarez 73510 Fred Waring Drive Palm Desert, CA 92260 RE: The Market Value of the Fee Simple Estate in a 1-Acre Portion of 9.34-Acres of Vacant Land, Located Along the North Side of Country Club Drive, East of Portola Avenue, City of Palm Desert, Riverside County, CA; Otherwise Known as APNs: 620-430-024 & 025, Riverside County, CA Dear Mr. Alvarez, At your request and authorization, I have prepared this appraisal report, setting forth my opinion of the market value of the fee simple estate in the subject property as of March 1, 2016. Per your request, the following market value estimates are provided: - . Market Value "As Is" The intended use of the report is for internal use. The intended user is the Client. No other use or users are intended. My report identifies the subject property and its market area, and presents the market data and analysis leading to the final estimate of value. This report is subject to the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. The appraisal report is intended to comply with the appraisal guidelines of Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1898 ("FIRREA"), and the Uniform Standards of Appraisal Practice ("USPAP"), adopted by the Appraisal Standards Board of the Appraisal Foundation. I have personally inspected the subject property. I have located and reviewed current sales and listings of comparable properties in the subject neighborhood and competing areas, and have analyzed the data in order to arrive at my estimate of market value. Based upon the available data, I conclude that the market value of the fee simple estate in the subject property as of March 1, 2016 is as follows: $305,000 Three Hundred Five Thousand Dollars The market value estimate in this appraisal report is based upon the following Extraordinary Assumptions and Hypothetical Conditions: Extraordinary Assumptions: i The market value estimate in this appraisal report is based upon the Extraordinary Assumption that the property is free and clear of all toxic substances. Nip- A preliminary title report for the subject property was not submitted or examined. Consequently, other than those items specifically noted, if any, the subject property is being appraised based upon the extraordinary assumption that there are no atypical easements or encumbrances that may have a negative impact on the marketability or market value of the subject property Hypothetical Conditions: i None The use of the above captioned Extraordinary Assumptions and Hypothetical Conditions might have affected the assignment results. The undersigned have no personal interest either present or contemplated in the subject property and certify that no fee received or to be received for the employment of my services is in any way contingent upon the the opinions reported herein. I hope you find the details of the appraisal report relevant to your decisions. Thank you for the opportunity to be of service. Respectfully Submitted Capital Realty Analysts Michael A. Scarcella, MAI 78015 Main Street, Suite 207 La Quinta, CA 92253 Ag4, (760) 564-6222 mike@realtyadvisor.com State Certification No. AG019463 Expiration Date: October 24, 2017 Summary of Important Facts and Conclusions Table of Contents Table of Contents 4 Certification 5 Summary of Important Facts and Conclusions 6 Identification of Client and Intended Users 11 Statement of Intended Use 11 Identification of the Subject Real Estate 11 Property Rights Appraised 11 Definition of Market Value 11 Effective Date of Value Opinion 12 Extraordinary Assumptions 12 Hypothetical Conditions 12 General Assumptions and Limiting Conditions 12 Scope of Work 13 Personal Property or Other Items that are Not Real Property 15 History, Including Prior Sales and Current Offers or Listings 15 Market Area, City, Neighborhood, and Location Data 15 Regional Analysis 15 City Analysis — Palm Desert, CA 19 Land Description 23 Zoning Map 27 Improvement Description 27 Taxes and Assessment Data 27 Market Analysis 28 Highest and Best Use 29 Sales Comparison Approach 32 Estimate of Exposure Time 40 Addendum ©Capital Realty Analysts, 2016 Page 4 Summary of Important Facts and Conclusions Certification I certify to the best of my knowledge and belief: The statements of fact contained in this report are true and correct. +1 The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. 4. I have no present or prospective interest in property that is the subject of this report and no personal interest with respect to the parties involved. +i I have performed no services as an appraiser or in any other capacity regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 1 My engagement in this assignment was not contingent upon developing or reporting predetermined results. i 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 analyses, opinions, and conclusions were developed, and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice. fik. I have made a personal inspection of the property that is the subject of this report. +i► No one provided significant professional appraisal assistance to the person signing the certification. ,i 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 Standards of Professional Appraisal Practice of the Appraisal Institute. i The use of this report is subject to the requirements of the Appraisal Institute relating to review by it's duly authorized representatives. 1 As of this report, I Michael A. Scarcella, MAI have completed the continuing education program of the Appraisal institute. -i I have not previously appraised the property that is the subject of this report. Michael A. Scarcella, MAI 78015 Main Street, Suite 207 <„, La Quinta, CA 92253 (760) 564-6222 mike@realtyadvisor.com State Certification No. AG019463 Expiration Date: October 24, 2017 ©Capital Realty Analysts, 2016 Page 5 Summary of Important Facts and Conclusions Summary of Important Facts and Conclusions Client: The City of Palm Desert Attn: Mr. Martin Alvarez 73510 Fred Waring Drive Palm Desert, CA 92260 Intended Users: The City of Palm Desert Attn: Mr. Martin Alvarez 73510 Fred Waring Drive Palm Desert, CA 92260 Intended Use: The intended use of the report is for internal use. Property Type: Vacant Land Location: North side of Country Club Drive, east of Portola Avenue, Palm Desert, CA. Identification: APNs: 620-430-024 & 025: Riverside County, CA General Plan: According to the General Plan Map of the City of Palm Desert, the subject parcel has a general plan designation of C-OP, Office Professional. A general plan map is included in the Site Data section of this report. Zoning: Site Description: According to the Zoning Map of the City of Palm Desert, the subject parcel has a zoning designation of Planned Residential. A zoning map is included in the Site Data section of this report. According to the Riverside County Assessor's data, the site size of the parcels that contain the subject is 9.34-acres. According to data supplied by the Client, the site size of the subject property is 1-acre. A breakdown of the site by parcel is included in the Site Data section of this analysis. Improvement None Description: Highest and Best Hold for investment until such time as speculative development becomes Use As Vacant: financially feasible. Highest and Best N/A, the subject parcels are vacant Use As Improved: ©Capital Realty Analysts, 2016 Page 6 Summary of Important Facts and Conclusions Property Rights Appraised: Final Value Estimate: Introduction Fee Simple Estate $305,000 The subject property consists of a 1-acre parcel, located at the SWC of a larger, 9.34-acre contiguous holding. Throughout this report, the 9.34-acres is referred to as the Larger Parcel; while the 1-acre portion of the property is referred to as the Subject Property. The property was acquired by the current owner, the City of Palm Desert over 3-years prior to the valuation date. According to the Desert Area MLS, the property is not currently listed for sale. The Client reports that the 1-acre portion of the property is currently being considered for a CVWD well site, and the City is seeking this analysis to determine a current market value for the property. This Appraisal Report format generally follows the report format suggested by The Appraisal of Real Estate, 14th Edition (figure 31.2, p. 658). The following photos of the subject property were taken by the appraiser on the date of value, unless otherwise noted. ©Capital Realty Analysts, 2016 Page 7 Summary of Important Facts and Conclusions The Subject Parcel viewing west from near the east line of the site. Street scene viewing west along Country Club Drive: Subject Parcel at right. ©Capital Realty Analysts, 2016 Page 8 Summary of Important Facts and Conclusions The Larger Parcel viewing south from near the north line of the site Street scene viewing W along Country Club Drive: Larger Parcel at right. ©Capital Realty Analysts, 2016 Page 9 Summary of Important Facts and Conclusions The Subject Property viewing east from near the west line of the site. The Subject Property view south from the north line of the site. ©Capital Realty Analysts, 2016 Page 10