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HomeMy WebLinkAbout2002-031 \, , 1 RESOLUTION NO: 2002-31 2 3 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO (1) ACKNOWLEDGING RECEIPT OF A 33433 SUMMARY REPORT RELATING TO THE SALE OF THE 9th AND DEL ROSA (APPROXIMATELY 73 ACRES) SITE AS DESCRIBED IN MOTION A AND (2) AUTHORIZING AND CONSENTING TO THE SALE OF THE SITE BY THE AGENCY TO THE DISTRICT. 4 5 6 7 WHEREAS, the Redevelopment Agency of the City of San Bernardino ("Agency") is 8 a public body, corporate and politic, organized and existing pursuant to the constitution of the 9 10 State of California; and 11 WHEREAS, the Agency acquired an approximate seventy three (73) acre site situated 12 near the southern corner of the intersection of 9th Street and Del Rosa (the "Site") in the City 13 of San Bernardino (the "City") from the State of California pursuant to the terms of an 14 15 agreement, dated September 14, 1988 by and among the State of California acting through the 16 Director of General Services and the City and the Agency; and 17 WHEREAS, funds of the Agency LowlModerate Income Housing Fund from the Tri- 18 City Redevelopment Project Area, in the amount of approximately $3 million, were used to 19 acquire the Site; and 20 21 WHEREAS, pursuant to Health and Safety Code Section 33334.16, (the "Code") the 22 Agency is required to dispose of or initiate redevelopment activities consistent with the 23 development of the Site within five years from the date it first acquires the Site; and 24 WHEREAS, on May 15, 2000, due to the 1998-1999 financial audit report, the 25 26 Agency was found in violation of the Code, and as such, the Agency adopted Resolution 27 CDC2000-13, correcting the failure of the Agency to dispose of the Site or redevelop the Site 28 pursuant to the Code, and approved the Low and Moderate Income Housing Fund 1 2002-31 L 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Redevelopment Cooperation and Reimbursement Agreement (the "Reimbursement Obligation Agreement") whereby the Agency agreed to repay the LowlModerate Income Housing Fund the sum of $2,416,437 ("Principle Loan Amount") from the Agency's Tri City Redevelopment Project Area tax increment fund; and WHEREAS, pursuant to the terms of the Reimbursement Obligation Agreement, the Agency shall make armual payments commencing July 1,2001, and a portion of the required $100,000 was applied to the Principle Loan Amount, and therefore, the remaining loan balance as it pertains to the Site is presently $2,339,000; and WHEREAS, in order to establish the value for the Site and enter into the Reimbursement Obligation Agreement, the Site was appraised in August 2000, by an independent MAl Appraiser, and said Appraiser determined that the value of the Site (includes all 73 acres) is $1,973,000 (the "Appraisal"); and WHEREAS, in order to fulfill the Agency's obligation to dispose of the Site consistent with the Code, the Agency desires to sell the subject Site to the San Bernardino City Unified School District (the "District"), and the District desires to purchase 55 net usable acres within the 73 acre Site at the AS IS, FAIR MARKET VALUE, of the Site, as established by the August 2000 Appraisal, or a mutually agreed upon purchase price as established by a current appraisal of the Site, as mutually approved and agreed upon by the Agency and District, and the Agency desires to deposit the fair market value for the Site into the Agency's Low and Moderate Income Housing Fund in order to relieve the Agency's Tri-City Redevelopment Project Area from the obligation to annually submit payments to the LowlModerate Income Housing Fund. 22 23 24 25 26 27 28 2 2002-31 .. 1 2 3 4 5 6 NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DO HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The Site was originally acquired by the Agency for development of affordable housing purposes, and the Agency used and applied the sum of $2,416,437 from its Low and Moderate Income Housing Fund to acquire the Site which are hereby sold to the San Bernardino City Unified School District (the "District"), pursuant to the terms and conditions of the Purchase Contract (the "Agreement"). Section 2. The Commission hereby finds and determines that despite the Agency's prior efforts to cause the Site to be redeveloped for affordable housing purposes, general economic conditions and the further blight resulting from the closure of the nearby former Norton Air Force Base have prevented the Agency from redeveloping the Site for affordable housing purposes. These conditions were summarized in a written report dated March 22, 1995, as previously approved by the Commission. The Commission hereby further finds and determines that since the time of the March 22, 1995 Report, conditions which support the redevelopment and reuse of the Site for affordable housing purposes have not materially improved and accordingly, the Commission concurs that it is in the best interest of the Agency to dispose of the Site to the District in an effort to comply with the Law and repay the Low and Moderate Income Housing Fund, and to also assist the District in meeting the student population needs of the City of San Bernardino. The Commission further finds and determines that the City will benefit by the transfer and sale of the Site at the current fair market value to the District for use and improvement as a public school site. 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3 2002-31 L 1 2 3 4 5 6 Section 3. The Commission hereby finds and determines that no further environmental review of the disposition and redevelopment of the Site pursuant to the Agreement is necessary in light of the fact that on January 8, 2002, the Planning Commission of the City of San Bernardino, found and determined that the development by the District of proposed high school on the Site is consistent with the City General Plan and current zoning regulations applicable to the Site. The District is the "lead Agency", as defined under the California Environmental Quality Act (CEQA), for the acquisition and redevelopment of the Site with a high school and the disposition of the Site by the Agency to the District shall be subject to all of the development mitigation measures as required under CEQA. Section 4. The Commission hereby approves, receives and files the 33433 Summary Report and the Agreement in the form as submitted at this joint public hearing. Section 5. The Commission hereby approves the disposition of the Site to the District, subject to the terms and conditions of the Agreement. Section 6. Provided the Agreement has been fully executed by the parties within the 60 day period of time, the Mayor or his/her designee are authorized to execute a Quitclaim Deed transferring title of Site to the Redevelopment Agency of the City of San Bernardino pursuant to the Resolution of the Mayor and Common Council of even date herewith, in order for the Agency to transfer title to the Site from the Agency to the District upon satisfaction of the applicable conditions for the close ofthe escrow set forth in the Agreement. IIII IIII I1II I1I1 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4 2002-31 " 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO (1) ACKNOWLEDGING RECEIPT OF A 33433 SUMMARY REPORT RELATING TO THE SALE OF THE 9th AND DEL ROSA (APPROXIMATELY 73 ACRES) SITE AS DESCRIBED IN MOTION A AND (2) AUTHORIZING AND CONSENTING TO THE SALE OF THE SITE BY THE AGENCY TO THE DISTRICT. 2 3 4 5 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 7 Common Council of the City of San Bernardino at a Joint Regulafneeting thereof, held on the 8 22nd day of January , 2002, by the following vote to wit: 9 10 11 12 13 14 15 16 17 (;L~i.1 17,~ ~~~~ Th, fo",o'" ",,10",,', h,,,by '","wd 1hhd-'ipL",y_,~ -y4!~~~! Betty Dean Anderson Mayor Pro Tern City of San Bernardino 18 19 ,2002. 20 21 22 Approved as to form and Legal Content: By: ~ :;.~ (j-ity Attorney 23 24 25 26 27 28 5 iU- .. . . 2002-31 ORIGINAL. '. RECEIVED-em CLERK 1I2 JJN 14 P4 :10 REAL ESTATE PURCHASE CONTRACT AND ESCROW INSTRUCTIONS VACANT LAND PARCELS ADJACENT TO DEL ROSA DRIVE SAN BERNARDINO CITY UNIFIED SCHOOL DISTRICT AND REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 2002-31 BUYER SELLER ESCROW COMPANY Name: Redevelopment Agency of the City of Chicago Title Company San Bernardino ttention: David Bail and Michael Perez Gary Van Osdel and Maggie Cindy Parsell Pacheco ax ID: 95-2285577 95-3669891 ddress: 77 North F Street 201 North E Street 560 East Hospitality Lane San Bernardino. CA 92410 Suite 301 San Bernardino, CA 92418 San Bernardino, CA 92401-1507 Phone: (909) 381-1238 (909) 663-1044 (909) 384-7853 FAX: (909) 885-4218 (909) 888-9413 (909) 384-7855 Email: MichaeI.Perez@sbcusd.k12.ca.us mpacheco@sbrda.org parsellc@CTT.com Buyer agrees to buy and Seller agrees to sell fifty-five (55) Net Acres of real property (Property) for the estimated Purchase Price of $25,000/Net Acre or $ 1.375.000. Buyer and Seller to agree-upon the final Purchase Price which shall be determined by a formal appraisal report prepared by a General Certified/MAl designated appraiser to be mutually selected and agreed-upon by the Buyer and Seller. The Seller's real property of about seventy-three (73) acres from which the Property will be selected can be identified by the APNs 0278-061-54,68,74,75 and 0278-201-30 to 34 and is more specifically described In the Preliminary Title Reports listed in Section 4.1 and attached in Exhibit B. Buyer and Seller agree to instruct the Escrow Holder as follows: 1.0 PURCHASE FUNOS: The funds for the purchase of the Property shall be provided by Buyer as follows: 40,000 Initial Deposit to be deposited upon acceptance of Contract by Seller. 1,335,000 Balance of Purchase Price to be deposited in available funds before Close of Escrow. $ 1,375,000 Purchase Price. 2.0 ESCROW: This Contract contains the Escrow Instructions of Buyer and Seller to Escrow Holder. The General Provisions of Escrow Holder are attached as Exhibit A and are incorporated herein by reference. The Escrow Instructions in this Contract shall have priority over any conflicting instructions in the General Provisions of Escrow Holder. The Time Limit Date for the General Provisions shall be December 31, 2003. 2.1 Buyer and Seller agree that the Escrow Holder and Title Company shall be Chicago Title Company. 2.2 Close of Escrow is the date on which the Grant Deed from Seller to Buyer and any other necessary documents are recorded. The date of the Close of Escrow shall be on or before December 20. 2002. 2.3 If the contingencies of Section 7.1 have not been satisfied by December 20, 2002, the Buyer may extend the Close of Escrow for one additional 360 day period (the "Extended Closing Period") with a unilateral written instruction to Escrow Holder (the "Extension Instruction") and an additional deposit of $ 60.000 (Extension Deposit). The Extension Deposit will be credited to the sales price and will be deemed liquidated damages if escrow fails to close due to Buyer's default. 3.0 FEASIBILITY REVIEW: 3.1 Feasibilitv Review Period. Buyer shall have until November 29. 2002 (the "Feasibility Review Period") to analyze the feasibility of Buyer's development of the Property as determined by Buyer. Buyer and Seller acknowledge that it is their intent to complete the items in Sections 3.2 to 3.6 during the Feasibility Review Period. Buyer and Seller agree that it may be difficult for Buyer to complete its feasibility review prior to the end of the Feasibility Review Period. Therefore, Buyer and Seller agree that they may mutually extend the Feasibility Review Period to allow additional time for the completion of the items in Sections 3.2 to 3.6 and the related feasibility review by Buyer. 3.2 Location Of Prooertv/AcreaCle/LeClal Descriotion. Within sixty (60) days of the Effective Date, Buyer shall provide the Seller with the legal description and calculation of the Net Acres for the Property (Legal Description). For this purpose, the Net Acres in the Property shall be the gross acreage less the unusable acreage within existing easements and less the acreage within existing or proposed street right-of-ways. The Legal Description shall be subject to the reasonable review and approval of Seller within thirty (30) days after the receipt of the Legal Description. Seller shall deliver written notice of any disapproval of the Legal Description to Buyer and Escrow Holder on or before the end of the thirty (30) day period or the Legal Description shall be deemed approved. The Legal Description for the Property shall be determined by an engineering firm acceptable to Buyer HSBDELRDSARDAPROPSPCFN1 Page (1/4) 2002-31 3.3 ..RE;~~A~SIJl.IE!'lJRqHASEPP~I~CT [)at~:)jalll.JarV7.200Z 'jj2i~~~f.A~igf7'~W~~~&~~r~~~~6)flli34i).)'. ...,....i......:..,.::.:..:;.....,. and Seller. When the Buyer and Seller agree-upon the Legal Description for the Property, the Buyer shall provide the Legal Description to the Escrow Holder and Title Company within ten (10) days. Buver's Easements for Access and Improvements. Buyer and Seller acknowledge that Buyer is purchasing a portion of Seller's real property and that Buyer may require easements (the "Buyer's Easements") on portions of the Seller's residual real property to provide street access and drainage, sewer and water facilities and dry utilities. Within ninety (90) days of the Effective Date, Buyer shall provide the Seller with the legal description for the Buyer's Easements for the Property. The legal description for the Buyer's Easements shall be subject to the reasonable review and approval of Seller within thirty (30) days after the receipt of the legal description. Seller shall deliver written notice of any disapproval of the legal description to Buyer and Escrow Holder on or before the end of the thirty (30) day period or the legal description shall be deemed approved. The legal description for the Buyer's Easements shall be determined by an engineering firm acceptable to Buyer and Seller. When the Buyer and Seller agree-upon the legal description for the Buyer's Easements, the Buyer shall provide the legal description to the Escrow Holder and Title Company within ten (10) days. The Buyer's Easements shall be submitted for recording by Escrow Holder on Close Of Escrow. Deliverv Of Seller Studies and Documents. Seller shall make its best efforts to provide Buyer with its existing studies and documents relating to the Property wilhin thirty (30) days of the Effective Date. Studies, Invest;qations and Approvals. Buyer shall have until the termination of the Feasibility Review Period to conduct such independent investigations, studies and tests and to obtain any and all government approvals as it deems necessary or appropriate concerning the suitability of the Property for Buyer's intended purpose. Entrv Onto Propertv. Buyer shall have the right to enter onto the Property at reasonable times for the purpose of conducting soils tests, inspecting the Property and performing engineering, environmental and surveying studies. Buyer shall indemnify, defend and hold Seller harmless from any and all claims, actions, costs, expenses, damages and liabilities relating to Buyer's entry onto the Property (including, but not limited to, claims of mechanics liens) and from and against all costs, reasonable attorney's fees, expenses and liabilities incurred in connection with such claims or any actions or proceedings. Review Of Condition Of Title. Escrow Holder shall cause the delivery of a copy of the current Preliminary Title Reports (the PTRs) to Buyer and Seller, which shall be attached hereto as Exhibit B, prepared by the Title Company with respect to the Property containing those exceptions that the Title Company would specify in the title policy (the "Schedule B Exceptions"), along with legible copies of the documents referred to in the Schedule B Exceptions and a plat with the easements plotted. Buyer shall have until thirty (30) days after the receipt of the PTRs (or supplements thereto) and related documents and plat to disapprove of any of the Schedule B Exceptions. Buyer shall deliver written notice of such disapproval to Seller and Escrow Holder on or before the end of the thirty (30) day period or all Schedule B Exceptions shall be deemed approved. Upon receipt of Buyer's disapproval of any Schedule B Exceptions, Seller shall deliver to Escrow Holder and Buyer within thirty (30) days a written response to Buyer's disapproval and specifically state what actions Seller plans to take to remove or mitigate such exceptions. If the Seller plans to remove the disapproved exceptions, Seller shall remove such Schedule B Exceptions on or before the Closing Date, or the Schedule B Exceptions shall be deemed disapproved by the Buyer (unless such disapproval is waived by Buyer). If the Seller elects not to remove the disapproved exceptions, the Schedule B Exceptions shall be deemed disapproved by the Buyer (unless such disapproval is waived by Buyer). If the Schedule B Exceptions are deemed disapproved by the Buyer, then this Agreement shall terminate and be of no further force or effect and the Buyer shall pay the Escrow cancellation charges, if any. Thereafter, Seller shall be released from its obligations to sell the Property to Buyer and the Buyer's Deposit and related interest earnings shall be returned to Buyer and the applicable documents returned to the parties that furnished them. All Schedule B Exceptions of the PTRs (or supplements thereto) which are not disapproved by Buyer (or as to which Buyer has waived its disapproval) shall be deemed "Permitted Exceptions". The Property shall be conveyed to Buyer in fee simple, free and clear of all mortgages, liens, charges, encumbrances, encroachments, easements, conditions and other defects of title, except for the Permitted Exceptions. Approval or Disapproval of Feasibilitv. If Buyer disapproves of the feasibility of acquiring the Property, then Buyer shall deliver to Seller and Escrow Holder (prior to the termination of the Feasibility Review Period) written notice of its disapproval ("Notice Of Disapproval"). If Buyer timely delivers the Notice Of Disapproval, then this Agreement shall terminate and be of no further force or effect and the Buyer shall pay the Escrow canceliation charges, if any. Thereafter, Seller shall be released from its obligations to sell the Property to Buyer and the Buyer's Deposit and related interest earnings shall be returned to Buyer and the applicable documents returned to the parties that furnished them. If Buyer fails to deliver a Notice of Disapproval on or before the termination of the Feasibility Review Period, all matters set forth in Section 3.0 shall be deemed approved. 3.4 3.5 3.6 3.7 3.8 HSBDELROSARDAPROPSPCFN1 Page (2/4) 2002-31 REAL: ESTATE PURCHASE CONTRACT , . .'. . .ANDES~ROW INSTRUCTIONS.. s0278-061.-54,68,74,75 and 0278.201.30 to 34). 4.0 PRELIMINARY TITLE REPORT, TITLE INSURANCE, GRANT DEED AND RECORDATION: 4.1 Chicago Title has prepared the following PTRs and Escrow Holder shall cause Chicago Title to update the PTRs within fifteen (15) days of receipt of the Legal Description as agreed-upon by the Buyer and Seller. The PTRs are attached as Exhibit B. Date: January 7, 2002 !<'<i'..::;i:'.':':'- :in'....... / , I Assessor Parcels 278-061-54,68,74 278-201-30.31,33 278-061-75 278-201-32,34 4.2 As a condition to the Close of Escrow, Escrow Holder shall be unconditionally committed to obtain from the Title Company at Buyer's expense a CL TA Owners Policy-Standard Coverage (Title Policy) with a liability limit in the amount of the Purchase Price and insuring fee title vested in the District or the Corporation free and clear of any liens, encumbrances and interests except those Permitted Exceptions in Section 3.7. 4.3 Prior to the Close of Escrow, Seller shall execute, acknowledge and deliver to Escrow Holder a Grant Deed conveying the Property to the Buyer. Seller acknowledges that several of the parcels may be owned by related entities and that the Seller shall take the necessary actions and execute the appropriate documents so that all parcels are conveyed directly from Seller to Buyer. The Seller agrees that the Buyer may, soleiy at its option, designate that the title to the Property be vested in the District or the Corporation. Provided that all terms and conditions of this Contract have been satisfied, Escrow Holder shall record the Grant Deed at the Close of Escrow. 4.4 Buyer has provided Escrow Holder with an Acceptance of Grant Deed and Preliminary Change of Ownership Report for attachment to the Grant Deed that are attached in Exhibits C and D. Escrow Holder is not responsible for the contents of said Acceptance or Report. 4.5 Buyer and Seller shall deliver to Escrow Holder such other documents and/or instructions (signed and notarized, as appropriate) as are necessary to comply with the terms of this Contract. Seller shall complete and deliver to Escrow Holder the Certification of Non-Foreign Status. 4.6 On or before the date for the Close of Escrow, Escrow Holder shall use the funds provided by Buyer and shall cause to be recorded the Grant Deed and any other applicable documents at such time as Escrow Holder can obtain assurance of obtaining the Title Policy. 5.0 CLOSING COSTS AND ADJUSTMENTS: 5.1 Buyer agrees to pay all closing costs including: premium for title insurance policy, escrow fee, document preparation fees and other fees as applicable and approved by Buyer. 5.2 Seller shall not have to pay any closing costs or fees in connection with this transaction. 5.3 Since the Buyer is a p"blic agemcy, the t.ransaction ,should be exempt fnIDm the payment of the, Documentary Transfer Tax in accordance with Revenue and Taxation Code Section 11922 and County recording fees in accordance with Government Code Section 6103. Escrow Holder shall mark the Grant Deed as exempt per R&T Code Sec. 11922. 5.4 Escrow Holder shall prorate current real estate taxes between Buyer and Seller as of the Close of Escrow. 6.0 LIQUIDATED DAMAGES: IF ESCROW FAILS TO CLOSE DUE TO BUYER'S DEFAULT UNDER THIS AGREEMENT, SELLER WILL BE DAMAGED AND WILL BE ENTITLED TO COMPENSATION FOR THOSE DAMAGES. HOWEVER, SUCH DAMAGES WILL BE DIFFICULT AND IMPRACTICAL TO ASCERTAIN. IF ESCROW FAILS TO CLOSE DUE TO BUYER'S DEFAULT UNDER THIS AGREEMENT, THE SUM REPRESENTED BY THE INITIAL DEPOSIT MADE UNDER SECTION 1 AND THE EXTENSION DEPOSIT MADE UNDER SECTION 2.3 PLUS RELATED INTEREST EARNINGS, IF ANY, SHALL BE DEEMED TO CONSTITUTE A REASONABLE ESTIMATE OF SELLER'S DAMAGES AND SELLER'S SOLE AND EXCLUSIVE REMEDY. ~~] SELLER'S INITIALS , .~ BUYER'S INITIAL0_~ i"> 7.0 CONTINGENCIES: The Close of Escrow is subject to the completion of the following conditio,1s( . 7.1 Buyer's Contingencies: a. Buyer shall have elected not to terminate the Contract pursuant to Section 3.8. b. Approval of the acquisition of the Property and the proposed public school project by the Board of Education of the San Bernardino City Unified School District. c. Receipt of funds for the acquisition of the Property from the State of California. 8.0 ENTIRE CONTRACT: This Contract contains the entire understanding between the Buyer and Seller relating to the transaction covered by this Contract. All prior or contemporaneous agreements, understandings, representations and statements, whether direct or indirect, oral or written, are merged into and superseded by this Contract and shall be of no further force or effect. Title Report No.'s (PTRs) Date of PTR 12025813-K54 November 5, 2001 12025814-K54 November 5. 2001 1111 HSBDELROSARDAPROPSPCFN1 Page (3/4) 2002-31 . REAL ESJAJEPURCHASE CONJRACJ .....................A~Q'3SGr{Qw:INSJr{LJC'T!Q~ PNs.027S;O.61-54;68,74,7S".and.027S;201 9.0 OFFER AND ACCEPTANCE: When signed by Buyer, this Contract shall be considered an offer to purchase the Property. When signed by Buyer and Seller, this Contract shall be considered a binding agreement to purchase the Property subject to the contingencies in Section 7.1. This Contract and any supplement or modification hereto, including any photocopy or facsimile thereof, may be executed in two or more counterparts, all of which constitute one and the same writing. 10. OTHER MATTERS: The following are matters to which the Escrow Holder shall not be concerned, responsible or liable. 10.1 "AS IS" Condition. Buyer is acquiring the Property in its "AS IS" condition and shall obtain all inspections and reports outside of Escrow. 10.2 Fire/Hazard Insurance. Fire and hazard insurance are not a requirement of this Escrow and Buyer will obtain such insurance as necessary outside of Escrow. 10.3 Brokeraqe Commission. Buyer and Seller acknowledge that no broker's commission, finder's fee or other compensation is payable with regard to the transaction covered by this Contract. The parties hereto have caused this Contract to be executed as of the day and year first above written. SELLER: BUYER: Redevelopment Agency of the Ci San Bernardino, a public agency corporate and aritic 0 the State of California SAN BERNARDINO CITY UNIFIED SCHOOL DISTRICT, a political subdivision of the State of California ~ By: ~ ~ "/ ~~ &>BAIL , ~ Its: Agency Secretary Its: Assistant Superintendent-Business Services HS8DELROSARDAPROPSPCFN1 Page (4/4) 2002-31 EXHIBIT A CHICAGO TITLE COMPANY GENERAL PROVISIONS OF ESCROW HOLDER 2002-31 GENERAL PROVISIONS Escrow No. 2012025794-K54 TO: CHICAGO TITLE COMPANY Date January 7, 2002 1. Time is of the essence of these instructions. If this escrow is not in a condition to close by the TIME LIMIT DATE as provided for herein and written demand for cancellation is received by you from any principal to this escrow after said date, you shall act in accordance with paragraph 7 of the General Provisions. If no conflicting instruction or demand for cancellation is made, you will proceed to close this escrow when the principals have complied with the escrow instructions. In the event one or more of the General Provisions are held to be invalid, those remaining will continue to be operative. Any amendments of or supplements to any instructions affecting escrow must be in writing. You are authorized to order demands for, and pay at the close of escrow any encumbrances of record necessary to place title in the condition called for without further authorization. You are further authorized, prior to the close of escrow, to pay from funds on deposit any fees necessary to obtain any demand and/or report as may be required in this escrow and at the close of escrow charge the parties as appropriate. The principals will hand you any funds and instruments required from each respectively to complete this escrow, Interest on any new financing may begin to accrue on the date loan funds/proceeds are disbursed by the new lender, and borrower agrees to pay same in accordance with lender's instructions. 2. You are instructed to deliver and/or record all documents and disburse all funds when you can comply with these instructions and issue any title insurance policy as called for herein. These instructions, together with any amendments and/or supplements, may be executed in counterparts and together shall constitute one and the same document. If these instructions relate to a sale, and if there is no other written agreement between the parties pertaining thereto, buyer agrees to buy and seller agrees to sell upon the terms and conditions hereof. All documents, balances and statements due the undersigned are to be mailed to the respective addresses shown herein, unless otherwise directed. In the event that any party to this escrow utilizes facsimile transmitted signed documents, all parties hereby agree to accept and hereby instruct the escrow holder to rely upon such documents as if they bore original signatures. Buyer and seller further acknowledge that any documents to be recorded bearing non original (facsimile) signatures will not be accepted for recording by the county recorder. 3. The phrase "close of escrow" (or COE) as used in this escrow means the date on which documents are recorded, unless otherwise specified. 4. Assume a 30 day month in any proration herein provided, and unless otherwise instructed, you are to use the information contained in the latest available tax statement, including any supplemental taxes of record, rental statement as provided by seller and beneficiary's or association statements delivered into escrow for proration purposes. 5. Upon close of escrow you are instructed to charge our respective accounts the costs attributable to each, including but not limited to costs as provided for herein and/or in accordance with our respective estimated statements attached hereto and made a part hereof. 6. Recordation of any instruments delivered through this escrow, if necessary or proper for the issuance of the policy of title insurance called for, is authorized. No examination or insurance as to the amount or payment of personal property taxes is required unless specifically requested. 7. If demand to cancel is submitted after the Time Limit Date, any principal so requesting you to cancel this escrow shall file notice of demand to cancel in your office in writing. You shall within three (3) working days thereafter mail by certified mail one copy of such notice to each of the other principals at the address stated in this escrow. Unless written objection thereto is filed in your office by a principal within fifteen (15) calendar days after the date of such mailing, you are instructed to cancel this escrow. If this is a sale escrow, you may return the lender's papers and/or funds upon lender's demand. B. In the event that this escrow is canceled, any fees or charges due Chicago Title Company including cancellation fees and any expenditures incurred or authorized shall be paid from funds on deposit unless otherwise specifically agreed to or determined by a court of competent jurisdiction. Upon payment thereof, return documents and monies to the respective parties depositing same, or as ordered by the court, and void any executed instruments. 9. If there is no wrillen activity by a principal to this escrow within any slx.month period after the Time Limit Date set forth herein, Chicago Title Company may, at its option, terminate its agency obligation and cancel this escrow, returning all documents, monies or other items held, to the respective parties entitled thereto, less any fees and charges as provided herein. 1 D. If, for any reason, funds are retained or remain in escrow after the closing date, you may deduct therefrom a reasonable charge as custodian, of not less than $25.00 per month, unless otherwise specified. (Continued) BEIGPISH -'OI23t98-lrc 2002-31 GENERAL PROVISIONS (Continued) Escrow No. 2012025794-K54 January 7, 2002 Date TO: CHICAGO TITLE COMPANY 11. In the event that you should receive or become aware of conflicting demands or claims with respect to this escrow, or the rights of any of the parties hereto, or any money or property deposited herein, you shall have the absolute right at your option to discontinue any or all further acls until such conflict is resolved to your satisfaction. 12. In the event that any Offer to Purchase, Deposit Receipt, or any other form of Purchase Agreement is deposited in this escrow, you, as escrow holder, are not to be concerned with the terms of such document and are relleved of all responsibility in connection therewith. The foregoing is not applicable in any transaction in which Chicago Title has specifically agreed to accept an Offer to Purchase, Deposit Receipt or other form of Purchase Agreement as escrow instructions. In any event, you are not to be concerned or liable for items designated as "memoranda" in these escrow instructions nor with any other agreement or contract between the parties. 13. The parties hereto, by execution of these instructions acknowledge that the escrow holder assumes no responsibility or liability whatsoever for the supervision of any act or the periormance of any condition which is a condition subsequent to the closing of this escrow. 14. In the absence of instructions to the contrary, you are hereby authorized to utilize wire services, overnight, next day, or other expedited delivery services (as opposed to the regular U.S. Mail) and to charge the respective party's account accordingly. 15. Concerning any real property involved in this transaction you are released from and shall have no liability, obligation or responsibility with respect to (a) withholding of funds pursuant to Section 1445 of the Internal Revenue Code of 1986 as amended, and to Sections 18662 and 18668 of the California Revenue and Taxation Code, (b) advising the parties as to the requirements of said Section 1445, (c) determining whether the transferor is a foreign person or a non.resident under such Section, nor (d) obtaining a non foreign affidavit or other exemption from withholding under said Sections nor otherwise making any inquiry concerning compliance with such Sections by any party to the transaction. 16. If you pay a demand to pay in full a revolving line of credit or equity line loan, you are hereby instructed on my behalf and for my benefit, to request that the lender issuing said demand cancel said revolving line or equity line of credit. 17. You are authorized to furnish to any affiliate of Chicago Title Company, any attorney, broker or lender identified with this transaction or any one acting on behalf of such lender any information, instructions, amendments, statements, or notices of cancellation given in connection with this escrow. If any check submitted to escrow is dishonored when presented for payment, you are authorized to notify all principals and/or their respective agents of such non payment. 18. All notices, change of instructions, communications and documents are to be delivered in writing to the office of Chicago Title Company, as set forth herein. 19. All funds received in this escrow shall be deposited with other escrow funds in one or more non-interest bearing demand accounts of Chicago Title Company in any state or federal bank or any state or federal savings and loan association ("the depository institutions") and may be transferred to any other such accounts. The parties to this escrow acknowledge that while these accounts do not bear interest, because of these and other banking relationships with the depository institutions, Chicago Title Company and its affiliates may receive from some of the depository institutions an array of banking services, accommodations or other benefits. Chicago Title Company and its affiliates also may elect to enter into other business transactions with or obtain loans for investment or other purposes from some of the depository institutions. All of such services, accommodations and other benefits shall accrue, directly or indirectly, to Chicago Title Company and its affiliates and they shall have no obligation to account to the parties to this escrow for the value of such services, accommodations or other benefits. All disbursements shall be made by Chicago Title Company check, unless otherwise instructed. Chicago Title Company shall not be responsible for any delay in closing if funds received by escrow are not available for immediate withdrawal. Chicago Title Company may, at its option, require concurrent Instructions from all principals prior to release of any funds on deposit in this escrow. 20. You are authorized to destroy or otherwise dispose of any and all documents, papers, instructions, correspondence and other material pertaining to this escrow at the expiration of six (6) years from the close of escrow or cancellation thereof, without liability and without further notice. (Continued) BEIUP2SH-l0/231911-1rc 2002-31 GENERAL PROVISIONS (Continued) Escrow No. 2012025794-K54 TO: CHICAGO TITLE COMPANY Dale January 7, 2002 IMPORTANT NOTICE Except for wire transfers, funds remitted to this escrow are subject to availability requirements imposed by Section 12413.1 of the California insurance Code. CASHIER'S, CERTIFIED or TELLER'S checks, payable to CHICAGO TITLE COMPANY are generally available for disbursement on the next business day following the date of deposit. Other forms of payment may cause extended delays in the closing of your transaction pursuant to the requirements imposed by State Law. (Wire transfer infonnation available upon request) ALL PARTIES TO THIS ESCROW ACKNOWLEDGE THAT CHICAGO TITLE COMPANY DOES NOT PROVIDE LEGAL ADVICE NOR HAS IT MADE ANY INVESTIGATION, REPRESENTATIONS OR ASSURANCES WHATSOEVER REGARDING THE LEGAL ASPECTS OR COMPLIANCE OF THIS TRANSACTION WITH ANY TAX, SECURITIES OR ANY OTHER STATE OR FEDERAL LAWS. IT IS RECOMMENDED THAT THE PARTIES OBTAIN INDEPENDENT LEGAL COUNSEL AS TO SUCH MATTERS. THE FOREGOING ESCROW INSTRUCTIONS AND GENERAL PROVISIONS HAVE BEEN READ AND ARE UNDERSTOOD AND AGREED TO BY EACH OF THE UNDERSIGNED. SELLER: BUYER: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO a public agency corporat and politic of the State of California SAN BERNARDINO CITY UNIFIED SCHOOL DISTRICT, a political subdivision of the State of California ~- . .~::ifY /~.'~ ;).' / ~~AVID s. BAtt:' Its: Asshttant Superintendent-Business Services By: Its: Agency Secretary By: Its: , , BEIGP3SH-l0/23IgB-lre 2002-31 ~'~ . ~lll!~.<l ,.."., ". . (I"' B(,V~'--;..~.i1i~~~ ~ ',::""j . ......""1,1, .' i""'::1Il'n e:o.r '" ' ~ ;;;~4 {! ~ '1lllKu I-&- I '" Id ~n.,...:.. _ ---Y I .....IJI" .' ,.-~.4, . _ J. !". f!1 V ~i'~/l. -- , -- -- --'4';~ ,jQ-.~~.~ ~',~L{ '.'--'., I . -..--.' '=-1"t9~hOLP__,.. t",'J;""' M., ~"._ "-'-<T - -....'il;;. ~ ~ ~~ ~J:~lli'c,~~,'~'~i!~'~ ,. "'s"~ / ~ ~'3 i ~, -.,' ~.. ., -.. ~ - "" ~ ,'-- "". --.. .. ,. - " -= ~ .- , ',' , ~~=." .._;....,-.... '~" ~~ ,... ".,\.-.. ,.. - .... Il ." ,.~ ,'" _I' I _"!'- ~ '1 :[~L- :\.~u" .~"-iii'-'.'..:':..~... ,-or " , '1 -,~ - ,',. -"... 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" " 0: o U '" ~ '" ~ q . 0: .. ~ ~ ...l ~ cS ::; ~ "' ~ ~ " 2002-31 SECTION 33433 SUMMARY REPORT DATED DECEMBER 21, 2001 PURSUANT TO HEALTH AND SAFETY CODE OF THE CALIFORNIA COMMUNITY REDEVELOPMENT LAW ON A PURCHASE CONTRACT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") AND THE SAN BERNARDINO CITY UNIFIED SCHOOL DISTRICT ("DISTRICT") RELATED TO THE SALE OF CERTAIN NINE VACANT PARCELS GENERALLY LOCATED AT 9TH AND DEL ROSA (AP#278-061-54, 68, 74, & 75; 278-201-30,31,32,33 AND 34) (the "SITE") INTRODUCTION This Summary Report has been prepared pursuant to Section 33433 of the California Health and Safety Code. This report sets forth certain details of the proposed Purchase Contract ("Agreement") between the Agency and District pertaining to the Site. This report is organized into the following seven sections: A. Salient Points of the Proposed Al!reement: This section includes a description of the project and the major responsibilities to be assumed by the Agency and the District. B. Cost of the Al!reement to the Al!encv: This section outlines the total and net costs of the proposed Agreement to the Agency. C. Estimated Value of the Interests to be Conveyed determined at the Hil!hest Use Permitted Under the Redevelopment Plan: This section summarizes the value of the Site to be conveyed to the District at the highest use permitted. D. Estimated Reuse Value ofthe Interests to be Conveyed Determined Based on the Required Use and with the Conditions. Covenants and Development Costs Required bv the Proposed Al!reement: This section summarizes the value of the Site determined at the use required by the proposed Agreement, recognizing the impact of the proposed Agreement's terms and conditions, if any. E. Consideration Received and Comparison with the Fair Reuse Value: This section describes the compensation to be received by the Agency, and the reasons for any difference between the compensation and the fair reuse value, if applicable. F. Blil!ht Alleviation: This section describes the existing blighting conditions on the Site, and an explanation of how the proposed Agreement will assist in alleviating the blighting conditions. G. Conformance with the AB 1290 Implementation Plan: This section identifies how the proposed Agreement will result in a development that fulfills goals and objectives established in the Agency's AB 1290 Five Year Implementation Plan. I. SALIENT POINTS OF THE PROPOSED AGREEMENT A. Description of the Proposed Project The purpose of the proposed Agreement is to effectuate the sale of the Site from the Agency to the District for development of a high school within the vicinity of the 9th and Del Rosa Area, Tri-City 1 " 2002-31 Redevelopment Project Area. The Site was acquired by the Agency in 1990, using the Agency's Low/Moderate Income Housing fund, in order to develop an affordable housing project consistent with Redevelopment Law. However, after several years of attempting to market the Site for residential purposes, to no success, the District and the Agency have determined that the most suitable and logical use of the Site, given its size and location, is development ofa high school in order to fulfill the District's school facility deficiencies. B. Al!encv Responsibilities To sell the Site to the District in an AS IS CONDITION and at fair market value subject to the provisions of the Agreement. C. District Responsibilities To purchase the Site from the Agency in an AS IS CONDITION and, at fair market value subject to the provisions of the Agreement. II. COST OF THE AGREEMENT TO THE AGENCY The cost incurred by the Agency to purchase the Site as per CDC Resolution 2000-13 is $2,416,437. The current debt balance as of the date of this report is $2,339,000. The District is obligated to purchase a portion of the Site from the Agency at FAIR MARKET VALUE. Assuming the Agency sells, and the District purchases 55 net usable acres within the 73 acre Site, the value is not less than $1,375,000. The AS IS VALUE for the entire 73 Acre Site is $1,913,000, as determined by an appraisal dated September 2000, prepared by Mr. James Smothers, MAl; or between .58 to .62 cents for square foot ofland. The Site is comprised of over 3 million square feet. Pursuant to the Agreement the parties have agreed to obtain a current appraisal selected and agreed upon by Agency and District, if necessary. III. ESTIMA TED VALUE OF THE INTERESTS TO BE CONVEYED DETERMINED AS THE HIGHEST USE PERMITTED UNDER THE REDEVELOPMENT PLAN The estimated fair market value of the interest to be conveyed, determined at the highest uses permitted, is not less than one million three hundred seventy five thousand ($1,375,000), for 55 net usable acres within the Site. This value is supported by an appraisal report prepared by James Smothers, MAl, dated September 2000. IV. ESTIMATED REUSE VALUE OF THE INTERESTS TO BE CONVEYED DETERMINED BASED ON THE REQUIRED USE AND WITH THE CONDITIONS, COVENANTS AND DEVELOPMENT COSTS REQUIRED BY THE PROPOSED AGREEMENT The Site will be conveyed to the District for the highest use value permitted. V. CONSIDERATION RECEIVED AND COMPARISON WITH THE FAIR REUSE VALUE As noted above, the Site is being conveyed to the District at its highest use value. 2 2002-31 VI. BLIGHT ALLEVIATION The sale of a portion of the Site to the District will provide for the development of an underutilized parcel ofland that has sat vacant for over a decade and will provide for sorely needed educational facilities for student residing within the City of San Bernardino. VII. CONFORMANCE WITH THE AB 1290 IMPLEMENTATION PLAN The Five- Year Implementation Plan adopted by the Agency contains several broad operational goals and objectives. Among the goals and objectives that are applicable to the Agreement are: . Creative implementation of catalyst projects which spur reinvestment on surrounding blocks. . Land acquisition and disposition for the creation of public facilities, which serve both the immediate neighborhood and the community at large. . Infrastructure improvements to existing water and sewer lines, streets, sidewalks, parkways and lighting in the public right-of-way. . Continued participation in the enhancement of the public infrastructure system. Based upon the preceding factors, the proposed Agreement is consistent with the adopted Agency Five-Year Implementation Plan. The execution of the Agreement is subject to the closure ofa public hearing with a majority approval voted by the Agency. The execution by the District is subject to the approval of the Agreement and applicable provisions of the California Education Code. 3