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HomeMy WebLinkAbout23-Development Services ORIGiNAL CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: lAMES FUNK, Director Subject: Public Hearing 4:00p.m. - Resolutions Authorizing Execution of Agreements - Sale of City Property, located between "D" Street and Stoddard Avenue, north of 29th Street and south of State Route 210 Dept: Development Services Date: October 26, 2005 File No. 15.05-243 Synopsis of Previous Council Action: 08-01-2005: Resolution No. 2005-273 adopted ordering the vacation of a portion of the east/west street lying between "D" Street and Stoddard Avenue. MCC Date: 11-21-2005 10-17-2005: Resolution No. 2005-338 adopted establishing fair market value and minimum sale price for vacated city owned property, located between "D" Street and Stoddard A venue, and public hearing set for November 21,2005. Recommended Motion: 1. Conduct and close the Public Hearing for the sale of City property, located between "D" Street and Stoddard Avenue, north of291h Street and south of State Route 210. 2. Adopt Resolutions (2) directing and authorizing the execution of sales and purchase agreements and executing Quitclaim Deeds for the sale of City property. ~~~ ~ lames Funk Contact person: leanne'marie Fitzpatrick Phone: 5328 Staff Report /Resolutions/ Supporting data attached: Agreements/Exhibits Ward: 7 FUNDING REQUIREMENTS: Amount: None Source: (Accl. No.) N/A (Accl. Description) N/A Finance: Council Notes: ResD. 2.roC;-2<r;C) 200$-2. CfD Agenda Item No. I~ ~ CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report SUBJECT: Public hearing and Resolutions authorizing execution of Agreements - sale of City property, located between "D" Street and Stoddard Avenue, north of 29th Street and south of State Route 210. BACKGROUND: On August 1, 2005, Resolution No. 2005-273 ordering the vacation of a portion of the east/west street lying between "D" Street and Stoddard A venue was adopted. The resolution has been recorded and the street is officially vacated. However, because the street was relinquished to the City of San Bernardino by the State in fee ownership, the underlying two parcels (described as Parcel A and Parcel B on the attached map) need to be sold in order for the City to relinquish all its interest. Per staff, the parcels were determined to be undevelopable by themselves and have no value other than to the adjacent property owners. Both of the adjacent property owners have indicated a desire to purchase the property. Staff recommended that the parcels be sold with a "no build" restriction to maintain the land use of single- family residential in this area. The adjacent owners were receptive to acquire the parcels with the restrictions. Additionally, they are aware of the easements encumbering the properties which further makes the property of no value to anyone other than the adjacent property owners. On August 26, 2005, we received letters from the two adjoining property owners, Eddie and Gwendolyn Powell and John P. Sanders, requesting to purchase the properties at a nominal value of$0.35 per square foot. Staffs recommendation was that it would be in the best interest of the City to quitclaim these properties for the nominal fee established, based on the fact that these parcels of land would have no value on the open market because of the restrictions mentioned above. Staff has determined that this amount ($0.35 per square foot) is reasonable to cover staff cost for this action. Proceeds from this sale will go to the general fund to cover staff time. On October 17,2005, Resolution No. 2005-338 was adopted, establishing and setting fair market value and sales price of Parcel A at $1,818.00 and Parcel B at $1,915.00, and declaring the intention of the City to sell the property, and setting a public hearing for November 21,2005, to consider said sale. Pursuant to Section 2.65.030 of the San Bernardino Municipal Code, property valued at less then $25,000 may be sold without going through the public bid process, but a public hearing on the proposed sale must still be held. City departments were notified of the proposed sale and no conflicts were noted. The only closing costs associated with these sales are the recording costs, which will be paid for by the buyers. Both buyers requested terms of 12 months to pay the balance after an initial 10% deposit, as set forth in the attached sales and purchase agreement is paid. The attached resolutions (2) authorize the execution of Sale and Purchase Agreements and authorize the execution of Quitclaim Deeds to Eddie and Gwendolyn Powell, buyers for Parcel A and John P. Sanders, buyer for Parcel B. FINANCIAL IMPACT: Revenue of$I,818.00, from sale proceeds for Parcel A. Revenue of$I,915.00, from sale proceeds for Parcel B. RECOMMENDATION: That the hearing be closed and the attached resolutions be adopted. r rJDt to sc.a.1e. - - - ffiH- - - - - - - - - - - ~ - - - - - - - - - - - - - I -, I I I I ~ I d ~ I ~ ~ - - -n-ut-- - ----- - - -l- -- _ _ __ _ _ _ _ _ __ _ ~ I ~ I ~ ~ I I PARCEL B 5472 Sauare Feet 'I STATE ROUTE 210 5194 Square Feet I ---------~} : I :: '0 3U I u_u~~_@_____ :_____@u2_8u_u I ~ ~ I _uu~~_@-___~ 40 @ \ 19 :;:'1- 41 f09\ I ~ ~ ~ l (';;\ ------2-0-@uu-~ -----;;--3-,-----@1 ~ 9 ___uu_______~ ~ :_____~______u 42 10 : ~ @ 10 u___~~_~____ ~ ~:: @ 32 43 @ 1 41.l~:: @ 11 n (0 :;: I.. :;: @ 33 . ~~ @ :;: I I 144.31 114.31 !Jo 1I1.U' 141.12 J7.~ I I - I o ~ L - -:.. --H1'H- _ _ - - - - - - - .....L - - - - - - - - - - - - -=-- - - I I 41. 2~ @6 @7 @8 CITY OF SAN BERNARDINO DEVELOPMENT SERVICES DEPARTMENT PUBLIC WORKS DIVISION REAL PROPER~ SECTION PROPOSED VACATION FOR THE EASTIWEST STREET BElWEEN "0" STREET AND STODDARD AVENUE Approved by: -MC~R Prepared by: Je~rie./itzP~ri~k Checked by: ~ Date~ PLAN NO.: 11416A FILE NO.:j5.30-384 VACATION SHOWN THUS: ~ Date;-6/.t,. 1 t~fV RESOLUTION NO. 2 RESOLUTION OF THE CITY OF SAN BERt'\!ARDINO DIRECTING AND 3 AUTHORIZING THE EXECUTION OF A SALES AND PURCHASE AGREEMENT AND THE EXECUTION OF A QUITCLAIM DEED FOR THE SALE OF CITY 4 PROPERTY GENERALL Y LOCATED EAST OF STODDARD AVENUE, NORTH OF 29TH STREET AND SOUTH OF STATE ROUTE 210 IN THE CITY OF SAN 5 BERNARDINO TO EDDIE POWELL AND GWENDOLYN POWELL. 6 7 8 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. That the Mayor of the City of San Bernardino is hereby directed and 9 10 authorized to execute on behalf of said City. a Sales and Purchase Agreement and Quitclaim Deed, a copy of which is attached hereto as Exhibit "1 ", for the sale of certain City property 11 12 located east of Stoddard A venue, north of 29th Street and south of State Route 21 0, in said City to 13 Eddie Powell and GwendolY11 Po\\'ell, and more fully described in detail in said Exhibit. 14 SECTION 2. Said Agreement shall be null and void if either pm1y fails to 15 execute the Agreement within sixty (60) days of the date of adopti'on of this Resolution, 16 i / 17 / I ! 18 ! ! 19 20 21 22 23 24 25 26 27 28 VlD. ~It II /ZI /05 11/09/05 Powell 4 held on the 5 6 7 8 13 14 15 16 17 18 19 The foregoing resolution is hereby approved this 20 21 22 23 24 1 2 3 9 10 11 12 RESOLVTION OF THE CITY OF Sk'l BERNARDINO DIRECTING A:'>D ACTHORIZI:'>G THE EXECLTION OF A SALES AND PCRCHASE AGREDIE:'>T AND THE EXECTTIO:'> OF A Ql'ITCLAlM DEED FOR THE SALE OF CITY PROPERTY GENERALLY LOCATED EAST OF STODDARD AVENCE, !'iORTH OF 29TH STREET .4..'\D SO liTH OF STATE ROCTE 210 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof day of , 20_, by the following vote, to wit: Council Members: NAYS ABSTAIN ABSENT AYES ESTRADA LONGYILLE MCGINNIS DERRY KELLEY JOHNSON MCCAMMACK City Clerk day of ,20 JUDITH Y ALLES, Mayor City of San Bernardino Approved as to form and legal content: 25 JAMES F. PEJ\TMAN City Attorney 26 27 By: 28 j)~/~ lli09/05 Powell 2 EXHIBIT "1" SALES AND PURCHASE AGREEMENT THIS AGREEMENT, executed this day of ,2005, by and between the CITY OF SAN BERNARDINO, a municipal corporation ("SELLER") and EDDIE POWELL AND GWENDOLYN POWELL ("BUYER") mutually agree as follows: I. SELLER, for full consideration, in the amount of One Thousand Eight Hundred and Eighteen Dollars ($1,818.00), shall deliver unto BUYER an executed Quitclaim Deed for a portion of that certain real property generally located between "D" Street and Stoddard A venue, north of 29th Street and south of State Route 210, in the City of San Bernardino, ("PROPERTY") more fully described in the Quitclaim Deed attached hereto and made a part hereof as Exhibit "A". 2. BUYER shall deliver unto SELLER, cash or certified funds in the amount of One Hundred and Eighty-One Dollars and Eighty Cents ($ 181.80), the equivalent of Ten Percent (10%) of the purchase price of One Thousand Eight Hundred and Eighteen Dollars ($1,818.00), as the initial payment for the purchase of said PROPERTY. The balance of One Thollsand Six Hundred Thirty-Six Dollars and Twenty Cents ($1,636.20) shall be paid in twelve monthly installments to include principle and interest at the rate of Six and Three Quarter's Percent (6.75%) per annum as described in the Promissory Note attached hereto as Exhibit "B". BlTYER shall pay to SELLER said monthly installments with cash or certified funds. The BUYER shall execute said Promissory Note secured by a Deed of Trust. 3. SELLER is selling said PROPERTY to BUYER and BUYER accepts from SELLER said PROPER TY in an "as-is" condition, including the existence of any liens, encumbrances and easements on said PROPERTY. SELLER is also selling said PROPERTY to BUYER subject to the following restrictions: BUYER shall not construct or cause to be constructed any residential structure(s) on said PROPERTY. Further, BUYER shall not construct or cause to be constructed additional residential structures on the adjacent property owned by the BUYER, known as Assessor's Parcel Number 0149-042-17. 4. BUYER agrees to indemnify, defend and hold harmless the SELLER, its directors, officers, agents and employees from any and all costs, claims, damages, injuries, callses of action or liability of any nature arising out of or related to this Agreement except when caused by the sole negligence or willful misconduct by SELLER. 5. BUYER shall pay all recording fees. 6. No obligation other than those set forth herein will be recognized. / ;' / ; " / 11109/05 9:52 AM POWELL SALES AlvD PURCHASE AGREEMENT - PROPERTY GENERALLY LOCATED lJETWEElv' "D" STREET AND STODDARD A VENUE. NORTH OF 29m STREET AA'D SOUTH OF STATE ROL;TE 210. IN WITNESS WHEREOF, the parties have executed this Agreement the day and year as set forth above, BUYER: SELLER: CITY OF SAN BERNARDINO BY: EDDIE POWELL JUDITH V ALLES, Mayor GWEN DOL YN POWELL Approved as to form And legal content: ATTEST: JAMES F. PENMAN, City Attorney Rachel Clark, City Clerk By ~II~ 11/09/05 3:05 PM 2 REQUESTED BY AND , WHEN RECORDED MAIL TO: Exhibit "A" 'le and Gwendolvn Powell . -: North Stoddard Avenue San Bernardino, CA 92405 APN: NA SPACE ABOVE FOR RECORDER'S USE QUITCLAIM DEED FOR 1\ V ALUABLE CONSIDERATION, receipt of which is hereby acknowledged, CITY OF SAN BERNARDINO, hereby REMISE, RELEASE AND FOREVER QUITCLAIM to EDDIE POWELL AND GWENDOL YN POWELL, (hereinafter "Buyers") the following real property located in the City of San Bernardino. County of San Bernardino, State of California, described as follows: That portion of Lot 27 of the Lynncrist Heights Tract No. 1907, as per plat recorded in Book 27 of Maps Page 56 as recorded in the County of San Bernardino, State of California, lying east of a line that is 20 feet east of and parallel with the west line of said Lot 27. Jveyance of interest in the above described property is subject to the existence of any liens, encumbrances and casements and is subject to the following restrictions: Buyers, their successors, heirs and assigns, shall not construct or cause to be constructed any residential structure(s) on said property. Further, Buyers, their Sllccessors, heirs, and assigns shall not construct or cause to be constructed any additional residential structures on the adjacent property owned by the Buyers, known as Assessor's Parcel Number 0149-042-17. DATE ,QE SAN BERNARDINO f I ,; i ',\.JI,JDr'rH VALLES, Mayor .;c .'" '....'.~".. '" ACI<.J~OWLEDGEMENT OF GRANTOR(S): COUNTY OF ) ) S.S. ) ST A TE OF CALlFOR1\IA On before me, , 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 ,,' his/her/their signature(s) on the instrument the person(s) . or the entity on behalf of which person(s) acted, executed the instrument. \\1 rNESS my hand and official seal. Signature Exhibit "B" PROMISSORY NOTE SECURED BY DEED OF TRVST Date: ,2005 $1,636.20 Eddie and Gwendolyn Powell 2947 North Stoddard Avenue San Bernardino, CA 92405 FOR VALUE RECEIVED, the undersigned promises to pay to the City of San Bernardino (Seller) or its successors, the principal sum of ONE THOUSAND SIX Hu?\DRED ANDTHRITY-SIX DOLLARS AND TWENTY CENTS (51,636.20). Payment of the Note shall be made as follows: I. Payments to be made in accordance with the amortization schedule attached hereto as Exhibit "I", payable the first of every month commencing January 1,2006. 2. This l\ote shall be due and payable in full immediately upon the sale, conveyance, reconveyance, lease, resale, disposition or refinancing of the property which is subject to the Deed of Trust securing this Note. Additionally, this Note shall be immediately due and payable in full upon any transfer of title of the property described in the Deed of Trust to any person, firm or corporation, etc., other than the undersigned and except as provided in said Deed of Trust, whether such transfer of title be voluntary, involuntary, or by operation of law. Notwithstanding any other provision of this Note, this Note shall be due and payable in full eleven (II) months from the date of the first payment as set forth above. 3. This Note shall accrue interest at a rate of Six and Three-quarters Percent (6.75%) per annum during its term. 4. A failure to pay any sum provided for in the Note when due or a material breach of this Note or the Deed of Trust shall constitute a breach thereof and shall entitle the Seller to declare all sums due hereunder immediately due and payable and to pursue all remedies available under this Note or the Deed of Trust. 5. All payments due under this Note shall be made in lawful money of the Gnited States at the principal office and payable to the City of San Bernardino. 300 North "D" Street. 3rd floor. San Bernardino. California 92418. Attn: Development Services Department - File No. 15.05-243. 6. The undersigned reserves the right to repay at any time all or part of the principal amount of this Note without the payment of penalties or premiums. If this Note. or any installment payment. is not paid vvithin ten (10) days of the due date, the undersigned shall pay to the Seller a late charge of Five Percent (5%) on the amount past due and remaining unpaid. If this Note is reduced to judgment, such judgment shall bear the statutory interest rate on judgments. In no event shall the late charge payable hereunder exceed the maXimum amount of interest permitted under the usury laws of the State of California. If suit is instituted by the Seller to recover on this Note, the undersigned agrees to pay all costs of such collection including reasonable attorney's fees and court costs. The costs, salaries, and expenses of the City Attorney and members of his office shall be considered as attorney's fees for the purposes of this Promissory Note. THIS NOTE is secured by a Deed of Trust of even date, duly filed for record in the office of the County Recorder of the County of San Bernardino, State of California. DEMAND, protest and notice of demand and protest are hereby waived and the undersigned hereby waives, to the extent authorized by law, any and all homestead and other exemption rights which otherwise would apply to the debt evidenced by this note. IN WITNESS WHEREOF, THIS NOTE has been duly executed by the undersigned, as of its date. Eddie Powell Gwendolyn Powell ., "- I Pmt No. I 1 $ 2 $ 3 $ 4 $ 5 $ 6 $ 7 $ 8 $ 9 $ 10 $ 11 $ 12 $ Powell Exhibit "1" Amortization Schedule Sal I 1,636.20 $ 1,504.02 $ 1,371.09 $ 1,237.42 $ 1,102.99 $ 967.81 $ 831.87 $ 695.16 $ 557.68 $ 41 9.43 $ 280.40 $ 140.60 $ Int I 9.20 $ 8.46 $ 7.71 $ 6.96 $ 6.20 $ 5.44 $ 4.68 $ 3.91 $ 3.14 $ 2.36 $ 1.58 $ 0.79 $ Pmt I New Sal I 141.39 $ 1,504.02 141.39 $ 1,371.09 141.39 $ 1,237.42 141.39 $ 1,102.99 141.39 $ 967.81 141.39 $ 831.87 141.39 $ 695.16 141.39 $ 557.68 141.39 $ 419.43 141.39 $ 280.40 141.39 $ 140.60 141.39 $ 0.00 22 23 24 25 26 27 28 1 2 RESOLUTION NO. RESOLUTION OF THE CITY OF SAN BERc"l/ARDINO DIRECTING Al\D AUTHORIZING THE EXECUTION OF A SALES AND PURCHASE AGREEMENT AND THE EXECUTION OF A QUITCLAIM DEED FOR THE SALE OF CITY 4 PROPERTY GENERALLY LOCATED WEST OF "D" STREET, NORTH OF 29TH 5 STREET AND SOUTH OF STATE ROUTE 210 IN THE CITY OF SAN BERNARDINO TO JOHN P. SANDERS. 6 7 8 3 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. That the Mayor of the City of San Bernardino is hereby directed and 9 10 11 authorized to execute on behalf of said City, a Sales and Purchase Agreement and Quitclaim Deed, a copy of which is attached hereto as Exhibit "1", for the sale of certain City property 12 located west of"D" Street, north of 29th Street and south of State Route 210, in said City to John 13 P. Sanders, and more fully described in detail in said Exhibit. 14 . SECTION 2. Said Agreement shall be null and void if either party fails to 15 execute the Agreement within sixty (60) days of the date of adoption of this Resolution. 16 17 I I " 18 !! I 19 20 21 /II 11/09/05 Sanders Ylo. t~ B ///~//o RESOLUTIO!ll OF THE CITY OF SAN BERNARDI"iO DIRECTING AND Al'THORIZING THE EXECUTION OF A SALES A.I\'D Pl'RCHASE AGREEME!'IT A.SD THE EXECl'TION OF A QUITCLAIM DEED FOR THE SALE OF CITY PROPERTY GE!'IERALLY LOCATED WEST OF "D" STREET, NORTH OF 29TH STREET Al'iD SOUTH OF STATE ROUTE 210 IN THE CITY OF SA1'\ BER..'\'ARDINO, 1 2 3 4 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and 5 6 Common Council of the City of San Bernardino at a hcld on the day of , 20_, by the following vote, to 18 19 20 21 22 23 The foregoing resolution is hereby approved this 24 Approved as to form and legal content: 25 26 JA1\1ES F. PENMAN City Attome~f1~i . 27 By: ~_ II. fMb[;) 28 11109/05 Sanders 2 meeting thereof ABSTAIN ABSENT City Clerk day of ,20_ JUDITH V ALLES, Mayor City of San Bernardino EXHIBIT "1" SALES AND PURCHASE AGREEMENT THIS AGREEMENT, executed this day of , 2005, by and between the CITY OF SAN BERNARDINO, a municipal corporation ("SELLER") and JOHN P. SANDERS ("BUYER") mutually agree as follows: I. SELLER, for the full consideration, in the amount of One Thousand Nine Hundred and Fifteen Dollars ($1,915.00), shall deliver unto BUYER an executed Quitclaim Deed for a portion of that certain real property generally located between "D" Street and Stoddard A venue, north of 29th Street and south of State Route 210, in the City of San Bernardino, ("PROPERTY") more fully described in the Quitclaim Deed attached hereto and made a part hereof as Exhibit" A " . 2. BUYER shall deliver unto SELLER, cash or certified funds in the amount of One Hundred and Ninety-One Dollars and Fifty Cents ($191.50), the equivalent of Ten Percent (10 %) of the purchase price of One Thousand Nine Hundred and Fifteen Dollars ($1,915.00), as the initial down payment for the purchase of said PROPERTY. The balance of One Thousand Seven Hundred Twenty-three Dollars and Fifty Cents ($1,723.50) shall be paid in twelve monthly installments to include the principal and interest at the rate of Six and Three Quarter's Percent (6.75%) per annum as described in the Promissory Note attached hereto as Exhibit "B ". BUYER shall pay to SELLER said monthly installments with cash or certified funds. The BUYER shall execute said Promissory Note secured by a Deed of Trust. 3. SELLER is selling said PROPERTY to BUYER and BUYER accepts from SELLER said PROPERTY in an "as-is" condition, including the existence of any liens, encumbrances and easements on said PROPERTY. SELLER is also selling said PROPERTY to BUYER subject to the following restrictions: BUYER shall not construct or cause to be constructed any residential structure(s) on said PROPERTY. Further, BUYER shall not construct or cause to be constructed additional residential structures on the adjacent property owned by the BUYER, known as Assessor's Parcel Number 0149-042-07. 4. BUYER agrees to indemnify, defend and hold harmless the SELLER, its directors, officers, agents and employees from any and all costs, claims, damages, injuries, causes of action or liability of any nature arising out of or related to this Agreement except when caused by the sole negligence or willful misconduct of SELLER. 5. BUYER shall pay all recording fees. 6. No obligation other than those set forth herein will be recognized. / / / / / / 11/09/05 10: 14 AM 1 SANDERS SALES AND PURCK1SE AGREEMENT - PROPERTY GEl\ERALLY LOCATED BETWEEV ., D" STREET Al\'D STODDARD A VENUE, NORTH OF 29m STREET Al'v'D SOUTH OF STATE ROUTE 210. IN WITNESS WHEREOF, the parties have executed this Agreement the day and year as set forth above. BUYER: SELLER: CITY OF SAN BERNARDINO BY: JOHN SANDERS JUDITH V ALLES, Mayor Approved as to form And legal content: ATTEST: JAMES F. PENMAN, City Attorney Rachel Clark, City Clerk By ~iI~ I I/09/05 3 :05 PM 2 REQUESTED BY AND . WHEN RECORDED MAIL TO: Exhibit "An I P. Sanders :: ')~8 North "D" Street San Bernardino, CA 92405 AP:\ !\/A SPACE ABOVE FOR RECORDER'S USE QUITCLAIM DEED FOR A V ALUABLE CONSIDERATION, receipt of which is hereby acknowledged, CITY OF SAN BERNARDINO, hereby REMISE, RELEASE AND FOREVER QUITCLAIM to JOHN P. SA:\TDERS, (hereinafter "Buyer") the following real property located in the City of San Bernardino. County of San Bernardino, State of California, described as follows: That portion of Lot 38 of the Lynncrist Heights Tract No. 1907, as per plat recorded in Book 27 of Maps Page 56 as recorded in the County of San Bernardino, State of California, lying west of a line that is 13 feet west of and parallel with the east line of said Lot 38, Iveyance of interest in the above described property is subject to the existence of any liens, encumbrances and easements and is subject to the following restrictions: Buyer, his successors, heirs, and assigns shall not construct or cause to be constructed any residential structure(s) on said property, Further, Buyer, his successors, heirs, and assigns shall not construct or cause to be constructed any additional residential structures on the adjacent property owned by the Buyer, known as Assessor's Parcel Number 0149-042-07, CITY OF SAN BERNARDINO ~UI?ITH V ALLES, I'vhlyor ~\, i p; "/ t ACK1"OWLEDGEME~1 OF GRANTOR(S): DATE: COUNTY OF ) ) SS ) ST A TE OF CALIFOR.l\rIA On before me, , 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 authonzed capaclty(ies), and that i,V hIs/her/their slgnature( s) on the instrument the person( s) . or the entity on behalf of which person( s) acted, executed the lllshument. " I [,NESS my hand and official seal. Signature Exhibit "B" PROMISSORY NOTE SECURED BY DEED OF TRUST Date: $1,723.50 , 2005 John P. Sanders 2948 North "D" Street San Bernardino, CA 92405 FOR VALUE RECEIVED, the undersigned promises to pay to the City of San Bernardino (Seller) or its successors, the principal sum of ONE THOUSAND SEVEN HUNDRED AND TWENTY-THREE DOLLARS AND FIFTY CENTS ($1,723.50). Payment of the Note shall be made as follows: I. Payments to be made in accordance with the amortization schedule attached hereto as Exhibit "1", payable the first of every month commencing January 1,2006. ') This Note shall be due and payable in full immediately upon the sale, conveyance, reconveyance, lease, resale, disposition or refinancing of the property which is subject to the Deed of Trust securing this Note. Additionally, this Note shall be immediately due and payable in full upon any transfer of title of the property described in the Deed of Trust to any person, firm or corporation, etc., other than the undersigned and except as provided in said Deed of Trust, whether such transfer of title be voluntary, involuntary, or by operation of law. Notwithstanding any other provision of this Note, this Note shall be due and payable in full eleven (11) months from the date of the payment as set forth above. 3. This Note shall accrue interest at a rate of Six and Three-quarters Percent (6.75%) per annum during its term. 4. A failure to pay any sum provided for in the Note when due or a material breach of this Note or the Deed of Trust shall constitute a breach thereof and shall entitle the Seller to declare all sums due hereunder immediately due and payable and to pursue all remedies available under this Note or the Deed of Trust. 5. All payments due under this Note shall be made in lawful money of the United States at the principal office and payable to the City of San Bernardino, 300 North D Street, 3rd Floor, San Bernardino, California 92418, Attn: Development Services Department - File No. 15.05-243. 6. The undersigned reserves the right to repay at any time all or part of the principal amount of this Note without the payment of penalties or premiums. If this Note, or any installment payment, is not paid within ten (10) days of the due date, the undersigned shall pay to the Seller a late charge of Five Percent (5%) on the amount past due and remaining unpaid. If this Note be reduced to judgment, such judgment shall bear the statutory interest rate on judgments. In no event shall the late charge payable hereunder exceed the maximum amount of interest permitted under the usury laws of the State of California. If suit is instituted by the Seller to recover on this Note, the undersigned agrees to pay all costs of such collection including reasonable attorney's fees and court costs. The costs. salaries, and expenses of the City Attorney and members of his office shall be considered as attorney's fees for the purposes of this Promissory Note. THIS NOTE is secured by a Deed of Trust of even date, duly filed for record in the office of the County Recorder of the County of San Bernardino, State of California. DEMAND, protest and notice of demand and protest are hereby waived and the undersigned hereby waives, to the extent authorized by law, any and all homestead and other exemption rights which otherwise would apply to the debt evidenced by this note. IN WITNESS WHEREOF, THIS NOTE has been duly executed by the undersigned, as of its date. 2 I Pmt No. I 1 $ 2 $ 3 $ 4 $ 5 $ 6 $ 7 $ 8 $ 9 $ 10 $ 11 $ 12 $ Exhibit "1" Amortization Schedule Sal I 1,723.50 $ 1,584.25 $ 1,444.25 $ 1,303.44 $ 1 , 161 .84 $ 1,019.45 $ 876.25 $ 732.25 $ 587.44 $ 441 .81 $ 295.37 $ 148.10 $ Int I 9.69 8.91 8.12 7.33 6.54 5.73 4.93 4.12 3.30 2.49 1.66 0.83 Pmt I New Sal I 148.93 $ 1,584.26 148.93 $ 1,444.25 148.93 $ 1,303.44 148.93 $ 1,161.84 148.93 $ 1,019.45 148.93 $ 876.25 148.93 $ 732.25 148.93 $ 587.44 148.93 $ 441.81 148.93 $ 295.37 148.93 $ 148.10 148.93 $ 0.00 Sanders