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HomeMy WebLinkAbout2008-12-23 CC Agenda Item No. 8 CITY OF LAKE 0,LSINOU DREAM EXTREME. REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROBERT A. BRADY CITY MANAGER DATE: DECEMBER 23, 2008 SUBJECT: AGREEMENT AND ESCROW INSTRUCTIONS FOR PURCHASE AND SALE OF REAL PROPERTY: APN 379 -403 -018 Background The City recently completed the widening of Machado Street except for that portion directly in front of the property generally described as Assessor's Parcel No. 379 - 403 -018 and having a street address of 32564 Machado Street (the "Property). The portion of Machado Street directly in front of the Property that remains unimproved presents safety problems for motorists and pedestrians because the pavement projects into the street. In order to complete the Machado Street widening, the City needs to acquire 2,302.75 square feet of the Property (the "Necessary Portion of the Property "). A plat map showing the location of the Necessary Portion of the Property is attached (Exhibit "B "). Discussion On December 9, 2008, the City Council adopted Resolution No. 2008 -108, a Resolution finding and determining the public interest and necessity for acquiring and authorizing the condemnation of the Necessary Portion of the Property. Owners of the Property, Jess A. Enriquez and Marissa P. Enriquez, have accepted the City's offer to acquire the Necessary Portion of the Property for five thousand dollars ($5,000). Further action to acquire the Necessary Portion of the Property by eminent domain is not necessary at this time. The City has prepared the attached agreement and escrow instructions for purchase and sale of the Necessary Portion of the Property (the "Agreement ") outlining the terms and conditions of the transaction (Exhibit "A "). According to the Agreement, the City will pay Mr. & Mrs. Enriquez the purchase price and will also pay the cost of escrow fees. Mr. & Mrs. Enriquez will be responsible to pay for title insurance and their own legal and professional fees. Agenda Item No. 8 Page 1 of 26 Enriquez Purchase and Sale Agreement December 23, 2008 Page 2 Fiscal Impact The purchase price of $5,000. Recommendation It is recommended that the City Council approve the Agreement and Joint Escrow Instructions for Purchase and Sale of Real Property in substantially the form attached, direct the City Attorney to finalize the Agreement, authorize the Mayor to execute the Agreement in such final form as approved by the City Attorney, and direct the City Manager to execute the Certificate of Acceptance. Prepared by: Barbara Leibold City Attorney Approved by: Robert A. Brady City Manager ($ Agenda Item No. 8 Page 2 of 26 CAMPHOR WY l-% pl A ti C _ N LAKE DR O IRONWOOD ST cC i N COAL CI � tf� �, Z E. 4. p ` J y 0� �9 t Jr FICUS ST p / 4. 1L r ,f / 9 T KNOLLWOOD ST / w h i ` 's,d � , 04 f y I ,, N N b MAHOGANY WYlt� 44' n urx�rr.r; t.r�•. r.x.irMa.r.fr.r.0n•,r.rr.r.r.r.ai..rr ., y r 4 '9116 ' . p 0 ,, � '44'' 1/4. I / r t i \ 9 ..... af� / � , � / 5,0yy � r S ' N ■ ✓arc A "may h a \ o J, `�. 0; „..,/,/ Riverside County • •te a 4 :6 4 r P� c J / s. / \, N � G 1 ' J 9p DI ` w / f v , v tit f PROJECT SITE si O4. ),"/ /' \ � ; / \,/ i r/ i - // Machado Street CITY O ,,,,. Right of Way Acquisition N Base map prepared by LADE LSINORE December 23, 2008 City of Lake Elsinore Emgineenng Division April 2 g 0 � 07 q@q� p DREAM E)fTREME Agen a 0215 df Rl ode ©s a °ml a °GI OWNER(S): Jess A. Enriquez & Marissa P. Enriquez, Husband and Wife as Joint Tenants APN(S): 379 - 403 -018 ESCROW/TITLE NO.: First American Title Insurance Company NHRV- 3005094 (29) AGREEMENT AND ESCROW INSTRUCTIONS FOR PURCHASE AND SALE OF REAL PROPERTY THIS AGREEMENT AND ESCROW INSTRUCTIONS FOR PURCHASE AND SALE OF REAL PROPERTY (this "Agreement ") is entered into as of December , 20_, ( "Reference Date ") by and between the CITY OF LAKE ELSINORE, a California municipal corporation ( "Buyer"), and JESS A. ENRIQUEZ & MARISSA P. ENRIQUEZ, HUSBAND AND WIFE AS JOINT TENANTS (the "Seller") for acquisition by the Buyer of certain real property hereinafter set forth. This Agreement is made on the basis of the following facts, intentions and understandings. RECITALS A. Buyer has recently completed the widening of Machado Street, with one exception, from Grand Avenue to Lakeshore Drive. The widening of Machado Street brings that roadway into conformity with the standards set forth in the Lake Elsinore Circulation Element. B. Seller is the present owner of that certain improved real property located in the City of Lake Elsinore, California, generally described as Assessor's Parcel No. 379 - 403 -018 and having a street address of 32564 Machado Street (the "Property "). C. A portion of Machado Street that lies directly in front of the Property has yet to be widened. In its current state, this part of Machado Street presents safety concerns to motorists and pedestrians because there is a large island of pavement that projects into the street. Completion of the Machado Street widening in front of the Property is necessary to alleviate the irregular shape of Machado Street in front of the Property. D. Therefore, Buyer wishes to buy and the Seller wishes to sell 2,302.75 square feet of the Property (the "Necessary Portion of the Property ") as legally described in Attachment No. 1 to Exhibit "A" and as depicted in that certain plat map set forth in Attachment No. 2 to Exhibit "A ". E. Seller desires to convey fee simple absolute title in the Necessary Portion of the Property to Buyer in accordance with the terms and conditions of this Agreement, and Buyer desires to acquire the Necessary Portion of the Property in accordance with this Agreement. Agenda Item No. 8 Page 4 of 26 AGREEMENT NOW, THEREFORE, for good and valuable consideration, receipt of which is acknowledged, the parties agree as follows: 1. Purchase and Sale. Upon the terms and conditions contained herein, Buyer hereby agrees to purchase all of Seller's rights, title and interest in and to the Necessary Portion of the Property from Seller and Seller agrees to sell, assign and convey all of Seller's right, title and interest in and to the Necessary Portion of the Property to Buyer. 2. Purchase Price. The purchase price for the Necessary Portion of the Property shall be Five Thousand Dollars and No Cents ($5.000.00) (the "Purchase Price "). 3. Public Purpose. Buyer desires to purchase the Necessary Portion of the Property for a public purpose. 4. Sale Under Threat of Condemnation. Buyer is a California municipal corporation and has the power to condemn property within its territorial boundaries for municipal purposes pursuant to Article I Section 19 of the California Constitution, the California Eminent Domain Law (Cal. Code of Civ. Pro. § 1230.010 et seq.), and the 5th Amendment to the United States Constitution. On December 9, 2008, the City Council adopted Resolution No. 2008 -108, a Resolution finding and determining the public interest and necessity for acquiring and authorizing the condemnation of the Necessary Portion of the Property. This Agreement is in lieu of the City exercising its condemnation power to acquire the Necessary Portion of the Property. 5. Escrow. 5.1 Open Escrow. Within ten (10) days after the execution of this Agreement by Buyer and Seller, the Buyer shall open escrow ( "Escrow ") with First American Title Insurance Company (the "Escrow/Title Company ") located at 3625 14th Street Riverside, Ca 92501, Attention: Debra Dunn. 5.2 Escrow Fees, Costs and Taxes. a. Seller shall pay (i) the cost of a premium for a California Land Title Association Standard Policy of title insurance insuring the Necessary Portion of the Property in the amount of the Purchase Price. In addition, Seller shall pay any liens, back taxes, and penalties on the Necessary Portion of the Property in full prior to the close of escrow and shall cause the liens to be discharged and the discharge shall be recorded. In the alternative, the Seller may elect to have any liens paid in full through Escrow to the lienholder from the fair market value deposited into Escrow by the Buyer; provided, however, that the amount deposited by the Buyer into Escrow is sufficient to satisfy all outstanding liens. If said liens are paid through Escrow, Escrow Purchase Sale Agreement 2 120808 Agenda Item No. 8 Page 5 of 26 shall cause the liens to be discharged and the discharges recorded prior to conveyance of fee simple absolute title. b. Buyer shall pay: (i) the cost of any documentary transfer taxes on the executed and recordable grant deed which is sufficient to convey title to Buyer and which is in substantially the form set forth in Exhibit "A" ( "Grant Deed "); (ii) fees for recording the Grant Deed; (iii) the Escrow/Title Company fees; (iv) fees for recording and filing any documents required to close escrow other than the Grant Deed; and (v) the costs of any extended coverage, American Land Title Association insurance coverage, including any land survey costs, or other title policy in excess of the premium for the standard coverage ( "CLTA ") policy. 6. Close of Escrow. The "Close of Escrow" shall mean the time and day the Grant Deed is filed for record with the Riverside County Recorder, which shall be fifteen (15) days after the opening of Escrow; provided, however, the Close of Escrow may be extended by Buyer to allow additional time to satisfy the condition to Close of Escrow set forth in subdivision (d) of Section 6.2, but in no event later than sixty (60) days after the opening of Escrow (the "Outside Closing Date "). 7. Conditions of Close of Escrow. The Close of Escrow is conditioned upon the satisfaction of the following terms and conditions: 7.1 Seller's Conditions of Close of Escrow. The Seller, at its election, shall not be obligated to close escrow if: a. Buyer is in material default of this Agreement; b. Any of Buyer's representations and warranties contained herein shall be proven materially untrue; c. Buyer shall not have deposited the Purchase Price and Buyer's share of costs described in Section 5.2(b) above with Escrow/Title Company; or d. Buyer shall not have deposited with Escrow/Title Company any document reasonably required of it by Escrow/Title Company to close escrow. 7.2 Buyer's Conditions of Close of Escrow. Buyer, at its election, shall not be obligated to close escrow if: a. Seller is in material default of this Agreement; b. Any of Seller's representations and warranties contained herein shall be proven materially untrue; c. Seller does not provide verification to Buyer pursuant to Section 7 below that Seller is the sole owner of record of the Necessary Portion of the Property and that there are no other owners of the Necessary Portion of the Property; Purchase Sale Agreement 3 120808 Agenda Item No. 8 Page 6 of 26 d. If, after review of a preliminary title report issued by First American Title Insurance Company ( "Escrow/Title Company ") or any other title insurance company of Buyer's choice ( "Title Report"), Buyer determines that Seller does not hold legal title to the Necessary Portion of the Property or that Escrow/Title Company, upon payment of its regularly scheduled premium, has not agreed to issue an ATLA Owner's Title Insurance Policy ( "Title Policy ") for the Necessary Portion of the Property upon Close of Escrow, in the amount of the Purchase Price showing title to the Necessary Portion of the Property vested of record in the name of the Buyer in fee simple subject only to such exceptions as approved by Buyer in writing; or e. Buyer does not approve the condition of the Necessary Portion of the Property. Buyer shall approve or waive the conditions set forth in subsection (c) or (d) of this Section 7.2 on or before such date as is five (5) days prior to the Close of Escrow; provided, however, Buyer may extend the time to approve or waive the condition set forth in subsection (d) of this Section 7.2 to the Outside Closing Date. 8. Seller's Obligations. Not later than the tenth (10th) day prior to the Close of Escrow, Seller shall deliver to Escrow the following: a. An executed and recordable Grant Deed sufficient to convey title to Buyer in substantially the form set forth in Exhibit "A "; and b. A certification of Non - Foreign Status under the Foreign Investment Real Property Tax Act ( "FIRPTA Certificate ") duly executed by Seller under penalty of perjury in substantially the form of Exhibit "B," setting forth Seller's address and social security number, and certifying that Seller is not a "foreign person" for purposes of Section 1445 of the Internal Revenue Code of 1986, as may be amended, and any regulation promulgated thereunder and Seller is a resident taxpayer in the State of California for purposes of Revenue and Taxation Code Sections 18805 and 26131. 9. Buyer's Obligations. Buyer shall deliver to Escrow on or before noon, one business day before the anticipated Close of Escrow (or such earlier time as may be required by the Escrow/Title Company) the following: a. The Purchase Price; and b. The Certificate of Acceptance (Attachment No. 2 to Exhibit "A ") and any other documents reasonably required of it by the Escrow /Title Company in order to close escrow. Purchase Sale Agreement 4 120808 Agenda Item No. 8 Page 7 of 26 10. Representations and Warranties. The representations and warranties set forth herein shall survive the Close of Escrow. 10.1 Representations and Warranties of Seller. Seller represents and warrants to Buyer as follows: a. Authority. Seller is the sole owner of the Necessary Portion of the Property and Seller has full right, power and lawful authority to grant, sell and convey the Necessary Portion of the Property as provided herein; and, b. Title. Seller, at the time of the execution of this Agreement, is seized of the Necessary Portion of the Property in fee simple and is the lawful owner of and has good indefeasible title to the Necessary Portion of the Property without exceptions; and, c. Litigation. To the best of Seller's knowledge, there are no actions, suits, material claims, legal proceedings, or any other proceedings affecting the Necessary Portion of the Property or any portion thereof, at law, or in equity before any court or governmental entity, domestic or foreign; and, d. Condition of Property. The Necessary Portion of the Property is in good condition, free of contamination and there are no substances, materials, or products on or about the Necessary Portion of the Property which may be an environmental hazard such as, but not limited to, fuel or chemical storage tanks, and contaminated soil or water; and, e. Governmental Compliance. Seller has not received any notice from any governmental agency or authority alleging that the Necessary Portion of the Property is currently in violation of any law, ordinance, rule, regulation or requirement applicable to its use and operation; and, f. No Conflict or Violation. To the best of Seller's knowledge, neither the execution of this Agreement nor the performance of the obligations herein will conflict with, or constitute a default or a breach under any contract, lease, agreement or other instrument or order which affects the Necessary Portion of the Property or to which Seller is a party or by which it is bound; and g. FIRPTA. Seller is not a "foreign person" within the parameters of FIRPTA or any similar state statute, or is exempt from the provisions of FIRPTA or any similar state statute, or that Seller has complied and will comply with all the requirements under FIRPTA or any similar state statute; and, h. No Seller Bankruptcy. Seller is not the subject of a bankruptcy proceeding. Purchase Sale Agreement 5 120808 Agenda Item No. 8 Page 8 of 26 10.2 Representations and Warranties of Buyer. Buyer represents and warrants to Seller as follows: a. Authority. Buyer has full right, power and lawful authority to purchase the Necessary Portion of the Property as provided herein; and, b. No Conflict. Buyer's execution, delivery and performance of its obligations under this Agreement will not constitute a default or a breach under any contract, agreement or order to which Buyer is a party or by which it is bound. 10.3 Ongoing Representations and Warranties. Until the Close of Escrow, Seller and Buyer shall, upon learning of any fact or condition which would cause any of the warranties and representations made by them in Section 10.1 and 10.2, respectively, to not be true as of the Close of Escrow, immediately give written notice of such fact or condition to the other party in accordance with Section 16.4 hereof. Such exception to a representation shall not be deemed a breach by such party hereunder, but shall constitute an exception which the other party shall have a right to approve or disapprove. If Buyer elects to close Escrow following disclosure of information that would have an effect on the value and /or operation of the Necessary Portion of the Property, Seller's representations and warranties contained herein shall be deemed to have been made as of the Close of Escrow, subject to such exception(s). If, following the disclosure of such information, Buyer elects to not close Escrow, then this Agreement and the Escrow shall automatically terminate, and neither party shall have any further rights, obligations or liabilities hereunder. The representations and warranties set forth in Sections 10.1 and 10.2 shall survive the Close of Escrow. 11. Escrow Instructions. This Agreement constitutes the joint escrow instructions of Buyer and Seller, and the Escrow/Title Company to whom these instructions are delivered is hereby authorized and instructed to act under this Agreement. The parties hereto agree to do all acts necessary to close this Escrow in the shortest possible time. Any insurance policies for fire or casualty are not to be transferred, and Seller will cancel its own policies after the Close of Escrow. All funds received in the Escrow shall be deposited with other escrow funds in a general escrow account(s) and may be transferred to any other such escrow trust account in any State or National Bank doing business in the State of California. All disbursements shall be made by check from such account. Seller, Buyer, or Escrow/Title Company may require that the parties sign supplemental escrow instructions as determined necessary or convenient in order to accomplish the Close of Escrow of this transaction; provided that if there is any Purchase Sale Agreement 6 120808 Agenda Item No. 8 Page 9 of 26 inconsistency between this Agreement and the supplemental escrow instructions, then the provisions of this Agreement shall control. The parties agree to execute such other and further documents as may be reasonably necessary, helpful or appropriate to effectuate the provisions of this Agreement. Escrow/Title Company is instructed to release Seller's escrow closing and Buyer's escrow closing statements to the respective parties. 11.1 Tax Adjustment Procedure. Escrow/Title Company is authorized and is instructed to comply with the following: a. Pay and charge Seller for any unpaid delinquent taxes and /or penalties and interest thereon, and for any delinquent or non - delinquent assessments or bonds against the Necessary Portion of the Property; and b. Pay and charge Seller for all taxes which will be due at the Close of Escrow and Escrow/Title Company shall prorate taxes consistent with the requirements of the Riverside County Tax Collector's office. 11.2 Authority of Escrow/Title Company. Escrow/Title Company is authorized to, and shall: a. Pay and charge Seller for any amount necessary to place title in the condition necessary to satisfy this Agreement; b. Pay and charge Buyer and Seller for any escrow fees, charges, and costs payable under this Agreement; c. Disburse funds, deliver, and record the Grant Deed when Buyer and Seller have fulfilled conditions of this Escrow; d. Do such other actions as necessary, including obtaining the policy of title insurance, to fulfill its obligations under this Agreement; e. If the provisions of FIRPTA or similar state act apply to the transaction memorialized in this Agreement, and unless Seller is not a "foreign person" or an exemption applies, the Escrow/Title Company shall deduct and withhold from Seller's proceeds ten percent (10 %) of the gross sales price and shall otherwise comply with all applicable provisions of FIRPTA and any similar state act. Seller and Buyer agree to execute and deliver as directed by Escrow/Title Company any instrument, affidavit, and statement, and to perform any act reasonably necessary to comply with the provisions of FIRPTA and any similar state act and regulation promulgated thereunder. As may be required by Escrow /Title Company, Seller expressly agrees to execute a FIRPTA Certificate substantially in the form of the attached Exhibit "B" certifying that Seller has complied with the real estate reporting requirement of the F I RPTA; Purchase Sale Agreement 7 120808 Agenda Item No. 8 Page 10 of 26 f. Prepare and file with all appropriate governmental or taxing authorities a uniform settlement statement, closing statement, tax withholding forms including an IRS 1099 -S form, and be responsible for withholding taxes, if any such forms are provided for or required by law. All time limits within which any matter herein specified is to be performed may be extended, but only by mutual agreement of the parties hereto, and by amendment of this Agreement. Any amendment of, or supplement to, this Agreement must be in writing, and signed by both parties, hereto. 11.3 Termination. If Escrow is not in condition to close by the Outside Closing Date then either party which has fully performed under this Agreement may, in writing, demand the return of money or property and terminate this Agreement. If neither party has fully complied with the provisions of Escrow, no demand for return of documents shall be recognized until five (5) days after Escrow/Title Company shall have delivered copies of such demand to all other parties at the respective addresses shown in Section 16.4 of this Agreement. If any objections are raised within said five (5) day period, Escrow/Title Company is authorized to hold all papers and documents until instructed by a court of competent jurisdiction or by mutual written instructions of the parties. Buyer, however, shall have the sole option to withdraw any money deposited by it for the acquisition of the Necessary Portion of the Property. If no objections are raised within said five (5) day period, this Agreement shall terminate. Termination of this Agreement shall be without prejudice as to whatever legal rights either party may have against the other arising from this Agreement. If no demands are made, the Escrow/Title Company shall proceed with the Close of Escrow as soon as possible. 12. Title. 12.1 Delivery of Title Report. The Buyer has obtained, at its expense, a Preliminary Title Report on the Property, including the Necessary Portion of the Property. 12.2 Approval Period. From the date of the Preliminary Title Report until five (5) days prior to the Close of Escrow (the "Approval Period "), Buyer shall review and approve the Preliminary Title Report and any other factors or matters relevant to Buyer's decision to purchase the Necessary Portion of the Property. If the Necessary Portion of the Property is not acceptable for any reason whatsoever, Buyer shall have the right, by giving written notice to Seller and Escrow/Title Company on or before the last day of the Approval Period, to terminate this Agreement. If Buyer does not deliver written notice terminating this Agreement to Seller and Escrow/Title Company on or before the last day of the Approval Period, Buyer shall be deemed to have approved the Necessary Portion of the Property and this Agreement shall continue in full force and effect. 13. Loss or Damage. Loss or damage to the Necessary Portion of the Property, or the Property as a whole, by fire or other casualty, occurring prior to the Purchase Sale Agreement 8 120808 Agenda Item No. 8 Page 11 of 26 recordation of the Grant Deed shall be at the risk of Seller. In the event that Toss or damage to the Improvements on the Necessary Portion of the Property, by fire or other casualty, occurs prior to the Close of Escrow, Buyer may elect to (a) require that the Seller pay to Buyer the proceeds of any insurance which may become payable to Seller by reason thereof; or (b) reduce the total price by an amount equal to the insurance payable to Seller. 14. Close of Escrow. 14.1 Time. When Escrow/Title Company is in a position to issue the Title Policy and all required documents and funds have been deposited with Escrow/Title Company, and Buyer and Seller have advised the Escrow/Title Company in writing that the Conditions of Close of Escrow set forth herein have been satisfied or waived, Escrow/Title Company shall immediately close Escrow as provided below. The failure of Seller or Buyer to be in a position to close Escrow by the Outside Closing Date shall constitute a default hereunder by the party not in a position to close. 14.2 Procedure. Escrow/Title Company shall close Escrow for the Necessary Portion of the Property as follows: (i) Record the Grant Deed with instructions for the Recorder of Riverside County, California to deliver the Grant Deed to Buyer; (ii) Pay the Purchase Price to Seller reduced by appropriate charges against Seller hereunder; (iii) Deliver the FIRPTA Certificates to Buyer; (iv) Instruct the Escrow/Title Company to deliver the Title Policy to Buyer; (v) File any informational reports required by Internal Revenue Code Section 6045(e), as amended; and (vi) Forward to both Buyer and Seller a separate accounting of all funds received and disbursed for each party and copies of all executed and recorded or filed documents deposited into Escrow, with such recording and filing date endorsed thereon. 15. Indemnification; Limitation on Liability; Liquidated Damages. 15.1 Indemnification. Seller hereby agrees to indemnify, defend and hold Buyer harmless from and against any claims, damages, demands, liabilities, losses, judgments, expenses and attorneys' fees and /or costs resulting from any material breach of this Agreement by Seller, including, without limitation, the falsity of any representation or warranty made by Seller contained in this Agreement. Purchase Sale Agreement 9 120808 Agenda Item No. 8 Page 12 of 26 15.2 Limitation on Liability. Neither Buyer nor Seller shall in any event be entitled to, and each hereby waives, any right to seek consequential damages of any kind or nature from the other party arising out of or in connection with this Agreement. 16. General Provisions. 16.1 Real Estate Brokerage Commission. Seller and Buyer each represent and warrant to the other that no broker or finder is entitled to any commission or finder's fee in connection with this transaction and each agrees to defend and hold harmless the other from any claim to any such commission or fee resulting from any action on its part. 16.2 Assignment. This Agreement shall be binding upon and shall inure to the benefit of Buyer and Seller and their respective heirs, personal representatives, successors and assigns. Buyer shall have the right to assign this Agreement or any interest or right under this Agreement or under the Escrow without obtaining the prior written consent of Seller. The Seller may not assign any of its rights pursuant to this Agreement without the written consent of the Buyer. In no event shall any assignment relieve the assigning party of any of its obligations under this Agreement. 16.3 Attorneys' Fees. In any action between the parties to interpret, enforce, award, modify, rescind, or otherwise in connection with any of the terms or provisions of this Agreement, the prevailing party in the action shall be entitled, in addition to damages, injunctive relief, or any other relief to which it might be entitled, reasonable costs and expenses including, without limitation, litigation costs and reasonable attorneys' fees. 16.4 Approvals and Notices. Any approval, disapproval, demand, document or other notice ( "Notice ") which either party may desire to give to the other party under this Agreement must be in writing and may be given by any commercially acceptable means to the party to whom the Notice is directed at the address of the party as set forth below, or at any other address as that party may later designate by Notice. Any Notice given under this paragraph, whether personally or by mail, shall be deemed received only upon actual receipt by the intended party. To Seller: Jess A. Enriquez & Marissa P. Enriquez 17011 Greentree Drive Riverside, California 92503 To Buyer: City of Lake Elsinore 130 So. Main Street City of Lake Elsinore, California 92530 Attention: Robert A. Brady Purchase Sale Agreement 10 120808 Agenda Item No. 8 Page 13 of 26 Copy to: Leibold, McClendon & Mann 23422 Mill Creek Drive, Suite 105 Laguna Hills, California 92653 Attention: Barbara Zeid Leibold A copy of any Notice by either party hereunder shall be sent to: Escrow/Title Company: First American Title Company 3625 14th Street Riverside, California 92501 Attention: Debra Dunn 16.5 Jurisdiction and Venue. This Agreement shall be construed under the laws of the State of California in effect at the time of the signing of this Agreement. To the extent permitted by law, the parties consent to the jurisdiction of the California courts with venue in Riverside County. 16.6 Titles and Captions. Titles and captions are for convenience of reference only and do not define, describe or limit the scope or the intent of this Agreement or of any of its terms. References to section numbers are to sections in this Agreement, unless expressly stated otherwise. 16.7 No Waiver. A waiver by either party of a breach of any of the covenants, conditions or agreements under this Agreement to be performed by the other party shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions or conditions of this Agreement. 16.8 Modifications. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made in writing and in each instance signed on behalf of each party. 16.9 Severability. If any term, provision, condition or covenant of this Agreement or its application to any party or circumstances shall be held, to any extent, invalid or unenforceable, the remainder of this Agreement, or the application of the term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected, and shall be valid and enforceable to the fullest extent permitted by law. 16.11 Computation of Time. The time in which any act is to be done under this Agreement is computed by excluding the first day (such as the day Escrow opens), and including the last day, unless the last day is a holiday or Saturday or Sunday, and then that day is also excluded. The term ' holiday shall mean all holidays as specified in Section 6700 and 6701 of the California Government Code. If any act is to be done by a particular time during a day, that time shall be Pacific Time Zone time. 16.12 Tax and Legal Advice. SELLER REPRESENTS AND WARRANTS THAT THE BUYER HAS NOT PROVIDED TAX OR LEGAL ADVICE TO Purchase Sale Agreement 11 120808 Agenda Item No. 8 Page 14 of 26 SELLER IN CONNECTION WITH THIS AGREEMENT. SELLER FURTHER REPRESENTS AND WARRANTS THAT THEY HAVE BEEN ADVISED OF THEIR RIGHT TO LEGAL COUNSEL AND TAX ADVICE AND HAVE EITHER OBTAINED THE ADVICE OF INDEPENDENT LEGAL COUNSEL OR A TAX ADVISOR WITH RESPECT TO THE TERMS OF THIS AGREEMENT AND ALL ATTACHMENTS HERETO AND OTHER AGREEMENTS REQUIRED HEREBY, OR HAVE KNOWINGLY AND VOLUNTARILY DECIDED NOT TO CONSULT WITH LEGAL COUNSEL OR A TAX ADVISOR OF HIS /HER CHOOSING. SELLER'S INITIALS: SELLER'S INITIALS: 16.13 Time of Essence. Time is expressly made of the essence with respect to the performance by Buyer and Seller of each and every obligation and condition of this Agreement including, without limitation, the Close of Escrow. 16.14 Cooperation. Each party agrees to cooperate with the other in the closing of this transaction and, in that regard, to sign any and all documents which may be reasonably necessary, helpful, or appropriate to carry out the purposes and intent of this Agreement including, but not limited to, releases or additional agreements. 16.15 Offer. Any delivery of unsigned copies of this Agreement is solely for the purpose of review by the party to whom delivered, and neither the delivery nor any prior communications between the parties shall in any way be construed as an obligation to enter into this Agreement. The signing of this Agreement by Seller constitutes an offer that cannot be revoked for a period of thirty (30) days. Seller's offer shall be deemed accepted by Buyer and this Agreement shall be binding only upon execution by or on behalf of Buyer following approval by the governing board of the Buyer at an open and agendized meeting. 17. Agreement in Total. 17.1 Merger of Prior Agreements and Understandings. This Agreement contains the entire understanding between the parties relating to the transaction contemplated by this Agreement. All prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged in this Agreement and shall be of no further force or effect. 17.2 Counterparts. This Agreement may be signed in multiple counterparts which, when signed by all parties, shall constitute a binding agreement. 17.3 Exhibits Incorporated by Reference. All exhibits attached to this Agreement are incorporated in this Agreement by this reference. This Agreement is executed in two (2) duplicate originals, each of which is deemed to be an original. This Agreement includes twelve (12) pages, a signature page (Page 13) and two (2) exhibits including Exhibit "A ", Grant Deed, and Exhibit "B ", Seller's Certification of Non - Foreign Status. Purchase Sale Agreement 12 120808 Agenda Item No. 8 Page 15 of 26 IN WITNESS WHEREOF, the Buyer and the Seller have signed this Agreement and Escrow Instructions for Purchase and Sale of Real Property on the date set forth below. "SELLER" JESS A. ENRIQUEZ, an individual Dated: By: MARISSA P. ENRIQUEZ, an individual Dated: By: "BUYER" CITY OF LAKE ELSINORE Dated: By: Robert E. Magee, Mayor APPROVED AS TO FORM: LEIBOLD, McCLENDON & MANN, P.C. By: Barbara Leibold, City Attorney ESCROW/TITLE COMPANY'S CONSENT: Escrow/Title Company hereby acknowledges receipt of this Agreement and consents to the terms and conditions set forth herein. "ESCROW/TITLE COMPANY" By: Name: Its: Dated: Purchase Sale Agreement 13 120808 Agenda Item No. 8 Page 16 of 26 EXHIBIT "A" GRANT DEED WHEN RECORDED MAIL AND MAIL TAX STATEMENTS TO: CITY OF LAKE ELSINORE 130 So. Main Street Lake Elsinore, CA 92530 DOCUMENTARY TRANSFER TAX $ NONE FREE RECORDING REQUESTED PURSUANT TO GOV'T CODE SECTION 6103 GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, JESS A. ENRIQUEZ & MARISSA P. ENRIQUEZ, HUSBAND AND WIFE AS JOINT TENANTS (the "Seller") hereby GRANT(S) to the CITY OF LAKE ELSINORE, a California municipal corporation, a 2,302.75 square foot portion (the "Necessary Portion of the Property ") of the real property referred to as APN No. 379 - 403 -018 and which Necessary Portion of the Property is more particularly described in that certain legal description attached hereto and incorporated herein by this reference as ATTACHMENT NO. 1 TO EXHIBIT "A" and as depicted in that certain plat map attached hereto and incorporated herein by this reference as ATTACHMENT NO. 2 TO EXHIBIT "A ". "SELLER" JESS A. ENRIQUEZ, an individual Dated: By: MARISSA P. ENRIQUEZ, an individual Dated: By: Purchase Sale Agreement Exhibit "A" 120808 Agenda Item No. 8 Page 17 of 26 ATTACHMENT NO. 1 TO EXHIBIT "A" LEGAL DESCRIPTION OF THE NECESSARY PORTION OF THE PROPERTY The land referred to herein is situated in the State of California, County of Riverside, City of LAKE ELSINORE, described as follows: THAT CERTAIN PARCEL OF LAND SITUATED IN THE CITY OF LAKE ELSINORE, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, BEING A PORTION OF LOT 28, BLOCK "B" OF THE LA LAGUNA RANCHOS AS PER "MAP SHOWING SUBDIVISION IN ELSINORE" RECORDED IN BOOK 8 PAGE 377 OF MAPS, SAN DIEGO COUNTY RECORDER, MORE PARTICULARLY DESCRIBED AS FOLLOWS: POINT OF BEGINNING AT THE CENTERLINE INTERSECTION OF MACHADO STREET AND LE HARVE AVENUE AS SHOWN IN TRACT NO. 19389 AS RECORDED IN MB 146/95 -96 IN THE OFFICE OF THE RIVERSIDE COUNTY RECORDER 1. THENCE ALONG THE CENTERLINE OF MACHADO STREET S.36 °59'20 "W., A DISTANCE OF 30.00 FEET; 2. THENCE DEPARTING SAID CENTERLINE AND ALONG THE SOUTHWESTERLY PROLONGATION OF THE RIGHT OF WAY OF SAID LE HARVE AVENUE 30.00 FOOT HALF WIDTH S.52 °57'47 "E., A DISTANCE OF 30.00 FEET TO THE TRUE POINT OF BEGINNING; 3. THENCE CONTINUING ON SAID SOUTHWESTERLY RIGHT OF WAY LINE OF LE HARVE AVENUE, A DISTANCE OF 40.00 FEET; 4. THENCE DEPARTING SAID SOUTHWESTERLY RIGHT OF WAY LINE S.82 °00'46' W., A DISTANCE OF 35.34 FEET; 5. THENCE PARALLEL WITH AND 15.00 FEET SOUTHEASTERLY OF THE SOUTHEASTERLY RIGHT OF WAY OF MACHADO AVENUE 30.00 FOOT HALF WIDTH, S.36 °59'20'W., A DISTANCE OF 103.78 FEET TO AN ANGLE POINT; 6. THENCE TO A POINT ON THE SOUTHWESTERLY LINE OF SAID LOT 28, SAID POINT ALSO BEING THE MOST NORTHERLY CORNER OF LOT 1 OF TRACT 30670 AS RECORDED IN MB 351/31 -34 IN THE OFFICE OF THE RIVERSIDE COUNTY RECORDER S.28 °54'23 "W., A DISTANCE OF 3.25 FEET; 7. THENCE ALONG SAID SOUTHWESTERLY LINE OF LOT 28 TO A POINT ON Purchase Sale Agreement Attachment No. 1 to Exhibit "A" 120808 Agenda Item No. 8 Page 18 of 26 THE CENTERLINE OF MACHADO AVENUE, N.52 °57'48'W., A DISTANCE OF 15.46 FEET; 8. THENCE ALONG THE CENTERLINE OF MACHADO AVENUE, N.36 °59'20 "E., A DISTANCE OF 132.00 FEET TO THE POINT OF BEGINNING. CONTAINING 2,293.58 SQUARE FEET OR 0.0527 ACRES, MORE OF LESS BASIS OF BEARINGS BEARINGS ARE BASED ON THE CENTERLINE OF MACHADO STREET BEING N36 °59'20 "E AS SHOWN ON MAP OF TRACT NO. 19389 RECORDED IN MB 146/95- 96 RECORDS OF RIVERSIDE COUNTY, CALIFORNIA APN: [FILL IN] Purchase Sale Agreement Attachment No. 1 to Exhibit "A" 120808 Agenda Item No. 8 Page 19 of 26 ATTACHMENT NO. 2 TO EXHIBIT "A" PLAT MAP OF NECESSARY PORTION OF THE PROPERTY [to be inserted] Purchase Sale Agreement Attachment No. 2 to Exhibit "A" 120808 Agenda Item No. 8 Page 20 of 26 STATE OF CALIFORNIA ) )ss COUNTY OF On , before me, 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 Of Notary OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT Individual Corporate Officer Title(s) Title Or Type of Document Partner(s) Limited General Attorney -In -Fact Trustee(s) Number Of Pages Guardian /Conservator Other: Date Of Document Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above Purchase Sale Agreement 120808 Agenda Item No. 8 Page 21 of 26 STATE OF CALIFORNIA ) )ss COUNTY OF ) On , before me, 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 Of Notary OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT Individual Corporate Officer Title(s) Title Or Type of Document Partner(s) Limited General Attorney-In-Fact Trustee(s) Number Of Pages Guardian /Conservator Other: Date Of Document Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above Purchase Sale Agreement 120808 Agenda Item No. 8 Page 22 of 26 ATTACHMENT NO. 3 to EXHIBIT "A" CERTIFICATE OF ACCEPTANCE Government Code, Section 27281 THIS IS TO CERTIFY that the CITY OF LAKE ELSINORE, a California municipal corporation, acting through the Lake Elsinore City Council, hereby accepts for public purposes the real property, or interest therein, conveyed by Grant Deed executed by JESS A. ENRIQUEZ & MARISSA P. ENRIQUEZ, HUSBAND AND WIFE AS JOINT TENANTS (the "Seller") dated , 20_ and consents to the recordation thereof. IN WITNESS WHEREOF, I have hereunto set my hands and affixed the City's official seal, this day of CITY OF LAKE ELSINORE, a public body, corporate and politic By: Robert A. Brady, City Manager Purchase Sale Agreement Attachment No. 3 to Exhibit "A" 120808 Agenda Item No. 8 Page 23 of 26 STATE OF CALIFORNIA ) ) ss. COUNTY OF ) On , before me, , Notary Public, (Print Name of Notary Public) personally appeared personally known to me -or- 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. WITNESS my hand and official seal. Signature Of Notary OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT Individual Corporate Officer Title(s) Title Or Type of Document Partner(s) Limited General Attorney -In -Fact Trustee(s) Number Of Pages Guardian /Conservator Other: Date Of Document Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above Purchase Sale Agreement Attachment No. 3 to Exhibit "A" 120808 Agenda Item No. 8 Page 24 of 26 EXHIBIT "B" SELLER'S CERTIFICATION OF NON - FOREIGN STATUS FIRST AMERICAN TRUST To inform the CITY OF LAKE ELSINORE, a California municipal corporation ( "Transferee ") that withholding of tax under Section 1445 of the Internal Revenue Code of 1986, as amended ( "Code ") will not be required upon the transfer of certain real property described as Assessor's Parcel No. 379 - 403 -018 located in the City of Lake Elsinore, California to the Transferee by JESS A. ENRIQUEZ & MARISSA P. ENRIQUEZ, HUSBAND AND WIFE AS JOINT TENANTS (the "Transferor"), the undersigned hereby certify the following: 1. We are not a nonresident alien for purposes of United States income taxation; 2. Our United States taxpayer identifying numbers (Social Security Numbers) are Jess A. Enriquez Marissa P. Enriquez 3. My /our address is Transferor understands that this Certification may be disclosed to the Internal Revenue Service by the Transferee and that any false statement contained herein could be punished by fine, imprisonment, or both. Under penalty of perjury, we declare that we have examined this Certification and to the best of our knowledge and belief it is true, correct, and complete, and we further declare that we have authority to sign this document on behalf of the Transferor. "SELLER" JESS A. ENRIQUEZ, an individual Dated: By: MARISSA P. ENRIQUEZ, an individual Dated: By: Purchase Sale Agreement Exhibit "B" 120808 Agenda Item No. 8 Page 25 of 26 Exhibit 73 ' SHEET 1 OF 1 44' 44' 1 i < IA 1 L.. se ► / r♦ w I I / I∎ r IS , III *< 1i r\ / \.4 -1_ %.4 r' 1 I I. 1 N l •. ♦/ •♦ C? •/ . POB TPOB �±__ L Le Harve Ave. .8 O 0 - ©- . `� N5 ° 57'47 "W __ —_ — . R/ COI Q PORTION OF QI w LOT 28 ,, N BLOCK "B" 7 CO 1 MB 8/377 SD \11 11 i z O" © APN NO. 379- 403 -018 1.0000 AC NET BEFORE DEDICATION �I 30' 15' 0.9473 AC NET AFTER DEDICATION .010.''' 0 N52° 57' 48 "W — SOUTHWE TERLY LINE OF LOT 28 1 i 1 M N ' \11) : t.'.'; < s \ 1 ! < 1 - i It. N 'Z 45' 44' , LEGEND LINE DATA POB POINT OF BEGGINING 0 BEARING LENGTH TPOB TRUE POINT OF BEGGINING 1 S36 ° 59'20 "W 30.00' \ AREA OF D ®ICATION 2 S52'57'47 "E 30.00' `t`�`\\`�"111 2,293.58 SQUARE FEET 3 S52 ° 57'47 T E 40.00' 4 S82 ° 00'46 "W 35.34' 5 S36 ° 59'20 "W 103.78' BASIS OF BEARINGS 6 528'54'23 "W 3.25' BEARINGS ARE BASED ON THE CENTERLINE 7 N52 • 57'48 "W 15.46' OF MACHADO STREET BEING N36 ° 59'20 "E AS 8 N36 ° 59'20 "E 132.00' , SHOWN ON MAP OF TRACT NO. 19389 RECORDED IN MB 146/95 -96 RECORDS OF p RIVERSIDE COUNTY, CALIFORNIA �� i S e NO. 7394 Exp.12 /31/ 008 R EN ,ti -08 8 `> - ` 12-0 25831 if;E 8 wRRI` CA 92 2 SCALE: 1"= ' PHONE 951.696.9902 FAX 951.896.9961 Agenda Item No. 8 Page 26 of 26