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HomeMy WebLinkAboutItem No. 23 - Purchase of Real Property for Murrieta Creek Trail Project (APN 371-100-003)23)Purchase of Real Property for Murrieta Creek Trail Project (APN 371-100-003) Approve the purchase of an approximately 2.17-acre parcel for the Murrieta Creek Multi- Use Trail Project (APN 371-100-003) for $104,000 plus ancillary closing costs and authorize the City Manager to execute an assignment of the Purchase Agreement and such other ancillary documents as may be necessary to complete the purchase, in such final form as approved by the City Attorney. Page 1 of 2 REPORT TO CITY COUNCIL To:Honorable Mayor and Members of the City Council From:Jason Simpson, City Manager Prepared by:Barbara Leibold, City Attorney Date:January 9, 2024 Subject:Purchase of Real Property for Murrieta Creek Trail Project (APN 371-100- 003) Recommendation Approve the purchase of an approximately 2.17-acre parcel for the Murrieta Creek Multi-Use Trail Project (APN 371-100-003) for $104,000 plus ancillary closing costs and authorize the City Manager to execute an assignment of the Purchase Agreement and such other ancillary documents as may be necessary to complete the purchase, in such final form as approved by the City Attorney. Background The subject property is located in the southwest portion of the Back Basin within the alignment of the proposed Murrieta Creek Multi-Use Trail project. When constructed, the proposed Murrieta Creek Trail project will provide an important link in the regional active transportation network consistent with the East Lake Specific Plan, General Plan and the City’s Active LE goals. The Murrieta Creek Multi-Use Trail will connect the existing Lake Elsinore Levee Trail to the Palomar Trail and the trail system in our southeast neighboring communities. Discussion As part of the Back Basin conservation efforts, the Western Riverside County Regional Conservation Authority (RCA) obtained an appraisal of the subject property and entered into a Purchase and Sale Agreement with the property owner. Because the property is a key piece in the Murrieta Creek Trail project, RCA proposes to assign the Purchase and Sale Agreement to the City to complete the acquisition for the trail project. Murrieta Creek Trail Property Purchase Page 2 of 2 The purchase price is equal to the appraised fair market value of $104,000. In addition, the City will be responsible for escrow and title fees and any applicable recording or conveyance fees. The seller is responsible for the installation of survey markers and related costs. Environmental Consideration The City approved Mitigated Negative Declaration (SCH #2021120441) for the Murrieta Creek Multi-Use project and made findings in compliance with California Environmental Quality Act on February 8, 2022. In addition, the Murrieta Creek Multi-Use Trail project is consistent with the MSHCP as an identified Planned Regional Trail and MSHCP covered activity. A Joint Project Review and Determination of Biologically Equivalent or Superior Preservation have been completed for the project and approved by RCA and the Wildlife Agencies. Fiscal Impact The funding for acquisition in the amount of $104,000, plus closing costs is available and will be paid from Active Transportation Program Grant funds. Attachments Attachment 1 – Vicinity Map Attachment 2 – Aerial Map Attachment 3 – Alignment Map Attachment 3 – Assignment Agreement Attachment 4 - Purchase Agreement MURRIETA CREEK MULTI-USE TRAIL ALIGNMENT 26493.00741\41634396.2 ASSIGNMENT AND ASSUMPTION OF AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY WITH ESCROW INSTRUCTIONS This Assignment and Assumption Agreement (“Assignment Agreement”) is entered into as of _______ ___, 2024, by and between WESTERN RIVERSIDE COUNTY REGIONAL CONSERVATION AUTHORITY, a public agency and a joint powers authority (“Assignor”) and the City of Lake Elsinore, a California municipal entity (“Assignee”). Assignor and Assignee may be referred to in this Assignment Agreement individually as “Party” and collectively as “Parties.” RECITAL A. Assignor and RUY TSUN LEE and SIU PI LEE, Trustees or their successors in trust, under The Lee Living Trust (referred to interchangeably herein as “Lee” and as “Purchaser”) are parties to that certain “Agreement for Purchase and Sale of Real Property with Escrow Instructions” dated June 5, 2023 (the “Purchase Agreement”). Definitions which are not defined herein shall have the meaning set forth in the Purchase Agreement; B. Assignor desires to assign its rights and obligations under the Purchase Agreement to Assignee and Assignee desires to assume same under the terms and conditions set forth herein. NOW, THEREFORE, the parties hereto agree as follows: 1. Assignment. Assignor hereby assigns, transfers, conveys, sells, and delivers to Assignee, all of Assignor’s rights, obligations and interest in the Purchase Agreement, and Assignee accepts same. 2. Assumption of Liabilities. Assignee hereby assumes all of the obligations of Assignor under the Purchase Agreement, including without limitation, all covenants, indemnity obligations, representations and warranties of the Purchaser. 3. Third Party Beneficiary: As a party to the Purchase Agreement, Lee is a third- party beneficiary to this Assignment Agreement. 4. Indemnity: Assignor and Assignee shall indemnify, defend and hold Lee and its officials, directors, officers, employees, consultants, attorneys and agents free and harmless from and against any and all losses, claims, damages, fees (including, without limitation, attorneys’ fees and costs), injuries to persons or property (including wrongful death) arising out of or incident to this Assignment Agreement. The indemnification obligations of this Section 4 shall survive close of escrow between Assignee and Lee under the Purchase Agreement and the termination of this Assignment Agreement. 5. Execution and Vesting. All documents to be executed at the close of escrow by Assignor pursuant to the Purchase Agreement shall be executed in the name of Assignee as 26493.00741\41634396.2 2 “Purchaser.” At the close of escrow, title to the approximately 2.17 acre parcel will vest in the name of the Assignee. 6. Binding Nature. This Assignment Agreement and everything contained in it shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, personal representatives, successors and permitted assigns, as allowed by Section 17 herein. 7. Governing Law. This Assignment Agreement shall be construed in accordance with and governed by the laws of the State of California. 8. Further Assurances. The parties hereto agree to execute such further instruments and documents and to take all actions pursuant to the provisions hereof as may reasonably be necessary and appropriate in order to timely consummate the transactions contemplated by this Assignment Agreement. 9. Counterparts. This Assignment Agreement may be executed in one or more counterparts, each of which so executed and delivered shall be deemed to be original and all of which, together, shall constitute one and the same instrument. 10. Severability. If any term or provision or portion of any term or provision of this Assignment Agreement or the application of any such term or provision or portion of such term or provision to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Assignment Agreement, or the application of such term or provision or portion of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each such term and provision of this Assignment Agreement shall be valid and enforced to the fullest extent permitted by law. 11. Waivers. No waiver or breach of any covenant or provision shall be deemed a waiver of any other covenant or provision, and no waiver shall be valid unless in writing and executed by the waiving Party. 12. Construction. Headings are solely for convenience of the Parties, are not a part of this Assignment Agreement and shall not be used to interpret this Assignment Agreement. The singular form shall include plural and vice versa. This Assignment Agreement shall not be construed as if it had been prepared by one of the Parties, but rather as if both Parties have prepared it. 13. Incorporation of Recitals. The Recitals of fact preceding this Assignment Agreement are true and correct and are incorporated into this Assignment Agreement in their entirety by this reference. 14. Entire Agreement. This Assignment Agreement contains the entire agreement of the Parties concerning the subject matter contained in this Assignment Agreement, and supersedes any prior written or oral agreements between them concerning the subject matter of this Assignment Agreement. There are no representations, agreements, arrangements, or 26493.00741\41634396.2 3 understandings, oral or written, between the Parties, relating to the subject matter of this Assignment Agreement that are not fully expressed in this Assignment Agreement. 15. No Merger. All covenants, representations and warranties of the Parties contained in this Assignment Agreement shall survive delivery and recordation of instruments by which fee title to the Property is conveyed to City of Lake Elsinore under the Purchase Agreement. 16. No Further Transfer or Assignment. The Assignee shall have no further right to assign this Assignment Agreement without the prior written consent of Lee, which consent may be withheld in Lee’s sole and absolute discretion. 17. Amendment. This Assignment Agreement may not be amended or altered except by a written instrument executed by both of the Parties; provided, however, that no amendment to this Assignment Agreement shall be valid and binding except as is acknowledged and approved by the Lee in writing. [SIGNATURE PAGE TO FOLLOW] 26493.00741\41634396.2 4 SIGNATURE PAGE FOR THE ASSIGNMENT AND ASSUMPTION OF AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY WITH ESCROW INSTRUCTIONS IN WITNESS WHEREOF, the parties hereto have duly executed this Assignment Agreement effective as of the date first written above. ASSIGNOR: WESTERN RIVERSIDE COUNTY REGIONAL CONSERVATION AUTHORITY, a public agency and a joint powers authority By: ______________________________ Anne Mayer, Executive Director APPROVAL AS TO FORM By: _______________________ Best Best & Krieger LLP RCA General Counsel ASSIGNEE: CITY OF LAKE ELSINORE, a California municipal entity By: _____________________________ APPROVAL AS TO FORM: By: ________________________ Leibold McClendon & Mann City Attorney