HomeMy WebLinkAbout11- Development Department D E V E L O P MEN T D E P A R T MEN T
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
From: KENNETH J. HENDERSON Subject: ACQUISITION OF 184 SOUTH
Executive Director "E" STREET
Date: November 4, 1993
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Synopsis of Previous Commission/Council/Committee Action(s):
The Commission has previously discussed this matter in Closed Session.
t --------------------------------------------------------------------------------
Recommended Motion(s):
(Mayor and Common Council)
MOTION A: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO MAKING FINDINGS AND DETERMINATIONS AS TO
THE BENEFIT OF UNDERTAKING CERTAIN BLIGHT REDUCING
ACTIVITIES FOR THE SOUTHEAST INDUSTRIAL PARK
REDEVELOPMENT PROJECT AREA OF THE SAN BERNARDINO
REDEVELOPMENT AGENCY.
(Community Development Commission)
MOTION B: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO MAKING FINDINGS AND DETERMINATIONS
AS TO THE BENEFIT OF UNDERTAKING CERTAIN BLIGHT REDUCING
ACTIVITIES FOR THE SOUTHEAST INDUSTRIAL PARK
REDEVELOPMENT PROJECT AREA OF THE SAN BERNARDINO
REDEVELOPMENT AGENCY.
(Motions Continued on Next Page)
I NX 4,t
Administrator KENNE J. HE ERSON
Executive Director
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Contact Person(s) : Ken Henderson/John Wood Phone: 5081
Project Area(s) : Central City Ward(s): One (1)
Supporting Data Attached: Staff Report, Plat Map, copies of Benefit
Resolution, copy of Escrow instructions
FUNDING REQUIREMENTS: Amount: $286,400 Source: Bond Proceeds
Budget Authority: Requested
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Commission/Council Notes:
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KJH:JMW:0179g COMMISSION MEETING AGENDA
Meeting Date: 11/15/1993
Request for Commission/Council Action
ACQUISITION OF 184 SOUTH "E" STREET
November 4, 1993
Page —2-
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Recommended Motion(s):
(Community Development Commission)
MOTION C: That the Community Development Commission approve the
acquisition of 184 South "E" Street; that the Executive
Director be authorized to execute all documentation
necessary for said acquisition; also, that the Economic
Development Agency Development Department budget be
increased accordingly.
Y
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KJH:JMW:0179g COMMISSION MEETING AGENDA
Meeting Date: 11/15/1993
Agenda Item Number: I-
D E V E L O P M E N T D E P A R T M E N T
OF THE CITY OF SAN BERNARDINO
STAFF REPORT
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ACQUISITION OF 184 SOUTH "E" STREET
Goodwill Industries of the Inland Counties ("Goodwill") recently approached
the Agency about purchasing two of its properties in San Bernardino. The
first lot, a vacant land parcel at the southeast corner of Third and "I"
Streets, may be acquired in the future by Caltrans, in connection with the
widening of Interstate 215. For this reason, it is not an attractive
acquisition prospect for the Agency at this time.
The other property, a parcel of improved real estate located at 184 South "E"
Street, is seen as having value to the Agency for two (2) reasons. First, it
would increase our holdings in the Central City South Overlay Zone, where a
gradual land assemblage has been taking place for years. Secondly, it would
increase the size of the old Harmon Motors property (see attached plat map),
which the Agency currently owns, and which would make an excellent future
retail center location.
Staff has negotiated a purchase price of $298,000 for the second parcel, from
which will be deducted the $24,000 balance of a CDBG loan which was used some
time ago to demolish a building on the Third and "I" Streets property. Thus,
the net negotiated purchase price would be $274,000. Goodwill has agreed to a
$100,000 down payment, with an additional $100,000 in principal plus $8,700 in
interest (computed as five percent (5%) per annum on the unpaid balance)
payable one (1) year from the close of escrow. The final $74,000 principal
payment plus $3,700 in interest would be due two (2) years from the closing.
The total, then, of principal and interest would come to $286,400.
It should be noted that the Agency plans to demolish the structures on the
property. These consist of an approximately 5,600 square foot retail building
and an approximately 2,500 square foot metal shed building. The costs of
demolition and possible asbestos removal are unknown at this time, but would
clearly be in addition to the acquisition price.
The funding will come from bond proceeds, but there are inadequate bond funds
in the Central City Redevelopment Project area where the subject property is
located. Because of this situation, mutual benefit resolutions must be
adopted. Copies of these are attached for your reference.
A final reason to approve the acquisition is that it would help Goodwill's
cash flow during these difficult economic times. It is well known that
Goodwill conducts a number of charitable activities which benefit the entire
community. The sale proceeds would help to ensure the continuation of these
noteworthy programs.
IL J
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KJH:JMW:0179g COMMISSION MEETING AGENDA
Meeting Date: 11/15/1993
Agenda Item Number:
�.J
DEVELOPMENT DEPARTMENT STAFF REPORT
ACQUISITION OF 184 SOUTH "E" STREET
November 4, 1993
Page Number —2—
Also attached for your reference is a copy of the escrow instructions which
will govern the transaction.
Staff recommends adoption of the attached resolutions and the form motion.
KENNE J. HE ERSON, Executive Director
Development Department
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KJH:JMW:0179g COMMISSION MEETING AGENDA
Meeting Date: 11/15/1993
Agenda Item Number: I '
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1 RESOLUTION NO.
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF
3 UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE SOUTHEAST
INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA OF THE SAN BERNARDINO
4 REDEVELOPMENT AGENCY.
5 WHEREAS, the City of San Bernardino, (the "City" ), is a
6 municipal .:orporation and a charter city duly created and existing
7 pursuant to the Constitution of the laws of the State of
8 California; and
9 WHEREAS, the Community Development Commission of the City of
10 San Bernardino (the "Commission" ) on behalf of the Redevelopment
11 Agency of the City of San Bernardino (the "Agency" ) , is a
12 redevelopment agency, a public body, corporate and politic of the
i(3 State of California, organized and existing pursuant to the
14 Community Redevelopment Law (Part I of Division 24) commencing
15 with Section 3000 of the Health and Safety Code of the State of
1:5 California (the "Act" ) ; and
17 WHEREAS, the Southeast Industrial Park Redevelopment Project
18 Area ( "Area" ) was created by Ordinance No. 3SR2 _ dated
lT- ,
19 1976 ; and
20 WHEREAS, the Agency may, in furtherance of its redevelopment
21 purposes, undertake redevelopment projects either within or
22 without redevelopment project areas of the Agency to the extent
23 that it determines that such projects are of benefit to the
24 project areas of the Agency; and
25 WHEREAS, the Agency may undertake various blight reducing
20 redevelopment activities (the "Blight Reducing Activities" )
27 including but not limited to the acquisition of certain property
28 located at 184 South "E" Street in the City of San Bernardino, on
DAB/js [Findings.Res] 1 November 5, 1993
11
I one of the Main Streets of the City which leads directly into the
2 Southeast Industrial Park Redevelopment Project Area, which Blight
3 Reducing Activities are located outside the boundaries of the
4 Project Area of the Agency if the Agency determines; ( 1) that
5 such Blight Reducing Activities are of benefit to the Southeast
6 Industrial Park Redevelopment Project Area of the Agency or the
7 immediate neighborhoods in which the project is and (2) that no
8 other reasonable means of financing such Blight Reducing
9 Activities is available to the community; and
10 WHEREAS, the undertaking of the Blight Reducing Activities
11 will benefit and promote the development of the Southeast
12 Industrial Park Redevelopment Project Area within the City to the
13 extent that it will make such project area more desirable for
14 industrial, commercial or residential development which in turn
15 will assist in the elimination of blight within such area; and
16 WHEREAS, in order to promote the City' s health, safety and
17 welfare and ensure the orderly development of the Agency's State
18 College Redevelopment Project Area, it is important that the
19 Blight Reducing Activities be financed by the Agency; and
20 WHEREAS, it is appropriate at this time for the Mayor and
21 Common Council of the City (the "Council" ) to make certain
22 findings and determinations and take certain actions with respect
23 to the financing of the Blight Reducing Activities.
24 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
25 SECTION 1. The recitals hereinabove are true and correct
26 and are incorporated herein by this reference.
27 SECTION 2. The Council consents to the payment by the
28
DAB/js [Findings.Res] 2 November S. 1`993
I 1
1 Agency of the costs of the Blight Reducing Activities in order to
2 implement the Southeast Industrial Park Redevelopment plan of the
3 Agency for the reasons set forth in the Recitals hereinabove. The
4 Council further finds and determines that no other reasonable
5 means of financing the Blight Reducing Activities is presently
6 available to the City or the Agency and that the City and the
7 Agency require the use of revenues generated from the Southeast
8 Industrial Park Redevelopment project area of the Agency in order
9 to fund the Blight Reducing activities.
10 SECTION 3. The undertaking of the Blight Reducing
11 Activities will allow the Agency to promote redevelopment within
12 the project area of the Agency by generating additional business
13 and sales. tax which in turn will help stimulate development of
14 such project area and its immediate neighborhoods.
15 SECTION 4. The City Clerk is hereby authorized and directed
16 to cause this Resolution to be transmitted to the Agency for
17 appropriate action by that body.
18
19
20
21
22
23
24
25
2;6
27
28
DAB/is [Findings.Res] 3 November 5, 1993
11
j RESOLUTION. . . MAKING FINDINGS AND DETERMINATIONS AS TO THE
BENEFIT OF UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE
2 SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA OF THE SAN
BERNARDINO REDEVELOPMENT AGENCY.
3
I HEREBY CERTIFY that the foregoing Resolution was duly adopted
4
by the Mayor and Common Council of the City of San Bernardino at
5
a meeting thereof, held on the day of
6
1993, by the following vote, to-wit:
7
Council Members: AYES NAYS ABSTAIN ABSENT
8
NEGRETE
9
CURLIN
_ :10
HERNANDEZ
aj
OBERHELMAN
12
DEVLIN
13
POPE-LUDLAM
1(4
MILLER
15
116
17 City Clerk
18 The foregoing Resolution is hereby approved this day
19 of 1993.
20
Tom Minor, Mayor
21 City of San Bernardino
22 Approved as to form
and legal content:
23 JAMES F. PENMAN,
24 City Attorney
25 By,
26
27
28
DAB/js [Findings.Res] 4 November 5, 1993
r �
e
1 RESOLUTION NO.
2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
SAN BERNARDINO MAKING FINDINGS AND DETERMINATIONS AS TO THE
3 BENEFIT OF UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE
SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA OF THE SAN
4 BERNARDINO REDEVELOPMENT AGENCY.
5 WHEREAS, the City of San Bernardino, (the "City" ), is a
6 municipal corporation and a charter city duly created and existing
7 pursuant to the Constitution of the laws of the State of
8 California; and
9 WHEREAS, the Community Development Commission of the City of
X10 San Bernardino (the "Commission" ) on behalf of the Redevelopment
11 Agency of the City of San Bernardino (the "Agency" ) , is a
.12 redevelopment agency, a public body, corporate and politic of the
13 State of California, organized and existing pursuant to the
14 Community Redevelopment Law (Part I of Division 24) commencing
15 with Section 3000 of the Health and Safety Code of the State of
:16 California (the "Act" ) ; and
17 WHEREAS, the Southeast Industrial Park Redevelopment Project
118 Area ( "Area" ) was created by Ordinance No. 3583 dated July 23,
19 �Q7� and
20 WHEREAS, the. Agency may, in furtherance of its redevelopment
21 purposes, undertake redevelopment projects either within or
22 without redevelopment project areas of the Agency to the extent
23 that it determines that such projects are of benefit to the
24 project areas of the Agency; and
25 WHEREAS, the Agency may undertake various blight reducing
26 redevelopment activities (the "Blight Reducing Activities" )
27 including but not limited to the acquisition of certain property
28 located at 184 South "E" Street in the City of San Bernardino, on
DAB/js [Finding2.Res] 1 November 5, 1993
I
1 one of the main streets of the City which leads directly into the
2 Southeast Industrial Park Redevelopment Project Area, which Blight
3 Reducing Activities are located outside the boundaries of the
4 Project Area of the Agency if the Agency determines; ( 1) that
5 such Blight Reducing Activities are of benefit to the Southeast
6 Industrial Park Redevelopment Project Area of the Agency or the
7 immediate neighborhoods in which the project is and (2) that no
8 other reasonable means of financing such Blight Reducing
9 Activities is available to the community; and
10 WHEREAS, the undertaking of the Blight Reducing Activities
11 will benefit and promote the development of the Southeast
12 Industrial Park Redevelopment Project Area within the City to the
13 extent that it will make such project area more desirable for
14 industrial, commercial or residential development which in turn
115 will assist in the elimination of blight within such area; and
16 WHEREAS, in order to promote the City' s health, safety and
17 welfare and ensure the orderly development of the Agency's State
18 College Redevelopment Project Area, it is important that the
19 Blight Reducing Activities be financed by the Agency; and
20 WHEREAS, it is appropriate at this time for the Mayor and
21 Common Council of the City (the "Council" ) to make certain
22 findings and determinations and take certain actions with respect
23 to the financing of the Blight Reducing Activities.
24 NOW THEREFORE, BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
25 SECTION 1. The recitals hereinabove are true and correct
26 and are incorporated herein by this reference.
27 SECTION 2. The Commission consents to the payment by the
28
DAB/js [Finding2.Res] 2 November 5,t 11993
t 1
I Agency of the costs of the Blight Reducing Activities in order to
2 implement the Southeast Industrial Park Redevelopment plan of the
3 Agency for the reasons set forth in the Recitals hereinabove. The
4 Commission further finds and determines that no other reasonable
5 means of financing the Blight Reducing Activities is presently
6 available to the City or the Agency and that the City and the
7 Agency require the use of revenues generated from the Southeast
8 Industrial Park Redevelopment Project Area of the Agency in order
9 to fund the Blight Reducing activities.
;10 SECTION 3. The undertaking of the Blight Reducing
11 Activities will allow the Agency to promote redevelopment within
:12 the project area of the Agency by generating additional business
113 and sales tax which in turn will help stimulate development of
114 such project area and its immediate neighborhoods.
15 SECTION 4. The Secretary is hereby authorized and directed
16 to cause this Resolution to be transmitted to the City of San
17 Bernardino for appropriate action by that body.
18
119
20
21
22
23
24
25
26
2;7
28
DAB/js [Finding2.Res] 3 November 5. 1993
e ► 1
1 RESOLUTION. . .MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT
OF UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE
2 SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA OF THE SAN
BERNARDINO REDEVELOPMENT AGENCY.
3
4 I HEREBY CERTIFY that the foregoing Resolution was duly
5 adopted by the Community Development Commission of the City of
6 San Bernardino at a meeting thereof, held on the
7 day of 1993, by the following vote, to-wit:
8 Commission Members: AYES NAYS ABSTAIN ABSENT
NEGRETE
9
CURLIN
1.0
HERNANDEZ
11
OBERHELMAN
12
DEVLIN
13
POPE-LUDLAM
14 MILLER
15
16
17 Secretary
18
The foregoing Resolution is hereby approved this day
19 of 1993.
20
Tom Minor, Chairman
21 Community Development Commission
of the City of San Bernardino
22 Approved as to form
23 and legal content:
24
25 By:
Agency nsel
26
27
28
DAB/js [Finding2.Res] 4 November 5, 1993
11
PS.r A M E it
7
4 '4
FirstAmerican Title Insurance Company
/ 323 COURT STREET(P.O.BOX 6327) SAN BERNARDINO,CALIF.92412 • (909)889-0311
ESCROW INSTRUCTIONS
ESCROW NO:64074J
Joan Sommers DATE: November 04 1993
ESCROW OFFICER PAGE 1
BUYER
TO: FIRST AMERICAN TITLE INSURANCE COMPANY
I hereby agree to purchase the hereinafter described property for a total consideration of$, 298.000.00 and will on
or before December 06, 1993
hand you said consideration which is payable as follows:
ESCROW SUMMARY
BUYER HAS DEPOSITED $
BROKER HAS DEPOSITED FOR ACCOUNT OF BUYER $
BUYER WILL DEPOSIT WITH SIGNED ESCROW INSTRUCTIONS $
BUYER WILL HAND YOU PRIOR TO CLOSE OF ESCROW $ 100.000 00
BUYER PAID SELLER OUTSIDE ESCROW(RECEIPT ACKNOWLEDGED BY SELLER) $
DEED OF TRUST OF RECORD $
DEED OF TRUST OF RECORD $
DEED OF TRUST TO RECORD $
DEED OF TRUST TO RECORD
PURCHASE MONEY ENCUMBRANCE- GOODWILL INDUSTRIES OF THE INLAND $ 198 000.00
COUNTIES, INC.
TOTAL CONSIDERATION $ 298,000.00
I will deliver to you any additional funds and execute any instruments which are necessary to comply with the terms
hereof,all of which you may use when you hold for me a deed executed by.
GOODWILL INDUSTRIES OF THE INLAND COUNTIES, INC., A CALIFORNIA CORPORATION
and when you can issue your standard coverage form policy of title insurance with liability of$ 298 000 00 as
issued through FIRST AMERICAN TITLE INSURANCE COMPANY,on the following described property situated in
the City of SAN BERNARDINO ,County of SAN AERNARDINO ,State of California
SEE ATTACHED EXHIBIT "A" FOR COMPLETE LEGAL DESCRIPTION OF PROPERTY.
Said property is also known as: 184 SOUTH "E" STREET, SAN BERNARDINO, CA
SHOWING TITLE VESTED IN:
REDEVELOPMENT AGENCY CITY OF SAN BERNARDINO, A BODY CORPORATE AND POLITIC
FREE OF ENCUMBRANCES EXCEPT:
1. SECOND HATY General and Special taxes for fiscal year 93-94 .
2. The lien of supplemental taxes which may be assessed as a result of revised assessed values.
3. Assessments and/or Bonds None
4. Covenants,conditions,restrictions,rights of way,easements and reservations,as described in that certain preliminary
title evidence,issued,or to be issued,herein.
II
ESCROW INSTRUCTIONS
ESCROW NO: 640_ 74J
PAGE 2
5. 1ST PURCHASE MONEY DEED OF TRUST TO FILE executed by vestee herein to First
American Title Insurance Company, Trustee, to secure one note in the amount of
$198,000.00 with interest on the unpaid principal balance at the rate of five
(5) per cent per annum in favor of GOODWILL INDUSTRIES OF THE INLAND COUNTIES,
INC., A CALIFORNIA CORPORATION.
A payment of $100,000.00, plus interest, shall be due on or before one (1) year
from the close of escrow and the balance of $98,000.00, plus interest, (less the
sum of $24,000.00 which is owing to Redevelopment Agency from Goodwill
Industries for cost of demolition on property at 899 W. Third Street, San
Bernardino) shall be due on or before 3 years from the close of escrow.
Interest on said note is to commence close of escrow.
Said deed of trust is to recite:
This Deed of Trust is a Purchase Money Deed of Trust and is given to secure a
portion of the purchase price of the property herein described.
It is agreed and understood between sellers and buyers herein that the Seller
herein shall pay for the cost of the Policy of Title Insurance and all other
escrow and recording costs will be paid for by the Buyer.
The consummation of this escrow is contingent upon buyer's written approval of
the Preliminary Report prior to the close of escrow,
I
ESCROW INSTRUCTIONS
ESCROW NO: 64074)
PAGE 3
Prorate and/or adjust the following as of close of escrow only as to Item(s)No. 1_
1. Taxes based on the amount of the last tax statement of the Tax Collector issued prior to the close of escrow.(If
the amount of the new tax bill issued by the Tax Collector after close of escrow is more or less than the amount
used for proration purposes, the difference, if any, will be adjusted by the parties herein outside of escrow).
Sellers are to forward to buyers any present or future tax bills on property herein.
2. Insurance(including FHA mortgage insurance,if any).
3. Interest on all existing trust deeds,improvements,assessments,and/or bonds taken over by buyers.
4. Rental per rent statement handed you.
5. Charge the buyer and credit the seller the amount of any funds held in an impound account,if any,in connection
with an existing loan
6. You are to hold for me-4_shares of water stock of Company.
I hereby agree to pay any charges including usual buyers escrow fee and any advances and expenses that are properly
chargeable to me regardless of the consummation of this escrow.At the close of escrow you are to mail all documents,
checks,etc.,to the person entitled thereto at the address shown in these instructions.
TIME IS OF THE ESSENCE OF THESE INSTRUCTIONS. If this escrow is not in a condition to close by
December 06, 1993 and demand for cancellation is received by you from any party to this escrow after said
date,you shall act in accordance with the cancellation instructions contained in the General Provisions set out in Schedule
"A"attached hereto.If no demand for cancellation is made,you will proceed to close this escrow when the principals have
complied with the escrow instructions.
THE GENERAL PROVISIONS SET OUT IN SCHEDULE"A"ATTACHED HERETO HAVE BEEN READ AND ARE
HEREBY APPROVED BY THE UNDERSIGNED.
These escrow instructions, and amendments hereto, may be executed in one or more counterparts, each of which
independently shall have the same effect as if it were the original,and all of which taken together shall constitute one and
the same instruction
BUYERS SIGNATURE:
REDEVELOPMENT AGENCY CITY OF SAN Tax Payers ID#
BERNARDINO
BY: Tax Payers ID#
BY:
Tax Payers ID#
BY. Tax Payers ID#
MAILING: 201 NORTH "E" STREET 3RD FLOOR. SAN BERNARDINO. CA 9 401
FORWARDING: 201 NORTH "E" STREET 3RD FLOOR SAN BERNARDINO CA 92401
SELLER
I approve of the foregoing instructions and agree to sell and will deliver to you papers,instruments and/or funds required
from me(within the"time limit date"specified herein),which you are authorized to deliver when you can issue your policy
of title insurance as set forth above. I agree to pay any personal property taxes properly chargeable to me. You are
instructed to use the money and record the instruments,to comply with said instructions and to pay all encumbrances of
record necessary without further approval including prepayment penalties to show title as herein provided.I agree to pay
your usual sellers escrow fee,drawing of documents and such other charges which are advanced for my account regardless
of the consummation of this escrow.I also agree to pay the policy of title insurance premium and recording fees which are
properly chargeable to me and documentary transfer tax in the amount of$ 327.80 ,which you are instructed
to enter on the deed and affix your signature thereto,if required.In the event this amount is incorrect,you are authorized
and instructed to enter the correct amount on the deed and deduct the additional cost therefore from funds accruing to
my account. In the event an incorrect amount is entered on the deed and said deed is recorded, I hereby hold you
harmless and agree to reimburse you for any loss you may sustain by said amount being incorrect.
At the close of this transaction you are authorized to pay,from sellers'funds,the following:
TRUST DEED HOLDERS OF RECORD, IF ANY.
SELLERS SIGNATURE:
GOODWILL INDUSTRIES OF THE INLAND Tax Payers ID#
COUNTIES, INC.
By. Tax Payers ID#
BY Tax Payers ID#
BY. Tax Payers ID#
MAILING: 8120 PALM LANE SAN BERNARDINO CA 92410
FORWARDING: 8120 PATM LANE SAN BERNARDTNO CA 92410
ESCROW NO: 64074J
EXHIBIT "A"
THAT PORTION OF LOT 3, BLOCK 11, RANCHO SAN BERNARDINO, AS PER PLAT RECORDED IN
BOOK 7 OF MAPS, PAGE 2, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS:
BEGINNING AT A POINT IN THE WEST LINE OF "E" STREET, 459.7 FEET NORTH OF THE
SOUTHEAST CORNER OF LOT 4, BLOCK 11, SAID POINT OF BEGINNING BEING THE NORTHEAST
CORNER OF THE LAND CONVEYED BY LENA JOSEPHINE BROWN AND BARBARA HENRIETTA BROWN
TO CHARLES GABRIEL BY DEED DATED SEPTEMBER 24, 1929, AND RECORDED OCTOBER 1,
1929, IN BOOK 549, PAGE 68, OFFICIAL RECORDS; THENCE WEST ALONG THE NORTH LINE
OF SAID LAND SO CONVEYED TO GABRIEL, 282 FEET, MORE OR LESS, TO THE EAST LINE OF
THE RIGHT OF WAY OF THE SOUTHERN PACIFIC RAILROAD COMPANY; THENCE NORTH ALONG
THE EAST LINE OF SAID RAILROAD RIGHT OF WAY A DISTANCE OF 9688 FEET, MORE OR
LESS, TO A POINT 455 FEET SOUTH OF THE SOUTH LINE OF THE ATCHISON, TOPEKA AND
SANTA FE RAILROAD; THENCE EAST PARALLEL WITH THE SOUTH LINE OF SAID LAST
MENTIONED RIGHT OF WAY, 282 FEET, MORE OR LESS, TO THE WEST LINE OF "E"
I
SCHEDULE "A" - GENERAL PROVISIONS
1. DEPOSIT OF FUNDS 6 DISBURSEMENTS
You shall deposit all funds received in this escrow in any bank insured
by an agency of the United States Government, including your affiliated bank,
First American Trust Company, in one or more of your general escrow demand
accounts. These funds may be transferred to any other general escrow demand
account or accounts, in the above named bank or banks, including those
maintained in your affiliated bank. Buyer and Seller acknowledge that escrow
holder will be depositing all funds in escrow in a non-interest bearing fiduciary
account at The Bank of California. All disbursements shall be made by your
check. You are authorized not to close escrow or disburse until good funds have
been confirmed in escrow.
2. PRORATION AND ADJUSTMENTS
The expression "close of Escrow" used in this escrow means the date of
which instruments referred to herein are recorded and relates only to prorations
and/or adjustments unless otherwise specified.
All prorations and/or adjustments are to be made on the basis of a
30-day month unless otherwise instructed in writing.
3. RECORDATION OF INSTRUMENTS
You are authorized to record any documents delivered through this
escrow, the recording of which is necessary or proper in the issuance of the
requested Policy of Title Insurance.
4. AUTHORIZATION TO EXECUTE ASSIGNMENT OF INSURANCE POLICIES
You are authorized to execute on behalf of the parties hereto form
assignments of interest in any insurance policies (other than title insurance)
called for in this escrow; forward assignments and policies upon close of escrow
to the agent with the request, first, that insurer consent to such transfer
and/or attach a loss-payable clause and/or make such other additions or
corrections as may have been specifically required herein, and second, that the
agent thereafter forward such policies to the parties entitled to them.
In all acts in this escrow relating to insurance, including adjustments,
if any, you shall be fully protected in assuming that each policy is in force
and that the necessary premium therefor has been paid.
5. AUTHORIZATION TO FURNISH COPIES
0 You are to furnish a copy of these instructions, amendments thereto,
closing statements and/or any other documents deposited in this escrow to the
lender or lenders, the real estate broker or brokers and/or the attorney or
attorneys involved in this transaction upon request of the lenders, brokers or
attorneys.
6. PERSONAL PROPERTY TAXES
No examination or insurance as to the amount or payment of personal
property taxes is required unless specifically requested.
7. RIGHT OF CANCELLATION
Any party instructing you to cancel this escrow shall file notice of
cancellation in your office, in writing. You shall within a reasonable time
thereafter mail, by certified mail, one copy of the notice to each of the other
parties at the addresses stated in this escrow. Unless written objection to
cancellation is filed in your office by a party within ten (10) days after date
Of mailing, you are authorized at your option to comply with the notice and
demand payment of your cancellation charges as provided in this agreement. If
written objection is filed, you are authorized at your option to hold all money
and instruments in this escrow and take no further action until otherwise
directed, either by the parties' mutual written instructions, or final order of
a court of competent jurisdiction.
8. ACTION IN INTERPLEADER
The parties hereto expressly agree that you, as escrow holder, have the
absolute right at your election to file an action in interpleader requiring the
parties to answer and litigate their several claims and rights among themselves
and you are authorized to deposit with the clerk of the court all documents and
funds held in this escrow. In the event such action is filed, the parties
Jointly and severally agree CO pay your cancellation charges and costs, expenses
and reasonable attorney's fees which you are required to expend or incur in the
interpleader action, the amount thereof to be fixed and judgment therefor to be
rendered by the court. Upon the filing of the action, you shall thereupon be
fully released and discharged from all obligations to further perform any duties
or obligations otherwise imposed by the terms of this escrow.
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9. TERMINATION OF AGENCY OBLIGATIONS
If there is no action taken on this escrow within six (6) months after
the "time limit date" as set forth in the escrow instructions or written
i, extension thereof, your agency obligation shall terminate at your option and all
documents, monies or other items held by you shall be returned to the parties
depositing same.
In the event of cancellation of this escrow, whether it be at the
request of any of the parties or otherwise, the fees and charges due First
American Title Insurance Company, including expenditures incurred and/or
authorized shall be borne equally by the parties hereto (unless otherwise agreed
to specifically).
10. CONFLICTING INSTRUCTIONS
Should you before or after close of escrow receive or become aware of any
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 or affected
hereby, you shall have the right to discontinue any or all further acts on your
part until the conflict is resolved to your satisfaction, and you shall have the
further right to commence or defend any action or proceedings for the
determination of the conflict as provided in Paragraph 7 and 8 of these General
Provisions.
11. FUNDS RETAINED IN ESCROW
If for any reason funds are retained in escrow, you may deduct therefrom
$15.00 as a monthly charge as custodian thereof.
12. USURY
You are not to be concerned with any question of usury in any loan or
encumbrances involved in the processing of this escrow and you are hereby
released of any responsibility or liability therefor.
13. INDEMNIFY FOR ATTORNEYS FEES AND COSTS
In the event suit is brought by any party to this escrow, including the
title company or any other party, as against each other, or others, including
the title company, claiming any right they may have as against each other or
against the title company, then in that event, the parties hereto agree to
indemnify and hold harmless the title company against any attorney's fees and
costs incurred by it.
14. AMENDMENTS TO ESCROW INSTRUCTIONS
Any Amendments or Supplements to these escrow instructions must be in
writing. These escrow instructions constitute the entire escrow between the
escrow holder and the parties hereto.
15. SUPPLEMENTAL TAXES
Seller and Buyer acknowledge that the subject property may be subject to
supplemental taxes due as a result of change of ownership taking place through
this escrow. Any necessary adjustment due either party on receipt of a
supplemental tax bill will be made by the parties outside of this escrow and
escrow holder is released of any liability in connection with same.
16. PRELIMINARY CHANGE OF OWNERSHIP FORM
Prior to close of escrow Buyer will be sent a Preliminary Change of
Ownership Report, which is required by the County Recorder's office to accompany
documents called for herein at the time of recording, in accordance with Section
480.3 of the Revenue and Taxation Code. Buyer is aware he must return the form
completed and signed prior to close of escrow. If Escrow Holder does not
receive this report prior to close of escrow, Buyer authorizes Escrow Holder to
charge his account with $20.00 which is the fec trt Cc—ly Recorder charges for
recording the deed without the completed form. Buyer is hereby put on notice
that the Assessor is required to mail out the form for completion later on if it
has not been filed at close of escrow.
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17. GOOD FUNDS LAW
The parties understand that all funds to close escrow must be deposited
a sufficient number of days prior to the close of escrow in order to comply with
Section 12413.1 of the California Insurance Code. Generally speaking, wire
transferred funds may be deposited into our escrow account anytime prior to the
close of escrow. Cashier's checks and certified checks (drawn on a local bank)
must be deposited into our escrow account no later than 12:00 noon the business
day before the close of escrow.
For information concerning holds on other types of checks, please
contact your escrow officer.
18. REPORTING TO THE INTERNAL REVENUE SERVICE
The Tax Reform Act of 1986 provides that First American Title Insurance
Company must report to the Internal Revenue Service certain information
regarding all real estate transactions. This information includes among other
things, the seller's social security number and/or tax identification number and
forwarding address and the gross sales price of the transaction. This is not a
requirement generated by First American Title Insurance Company, but rather a
means of complying with the new tax law. This information must be provided to
First American Title Insurance Company upon the opening of Escrow, and escrow
cannot close, nor can the deed nor other documents be recorded until the
information is provided and the seller certifies the accuracy of the information
in writing. By execution of these escrow instructions, the parties acknowledge
receipt of this notice.
19, TAX REPORTING AND WITHHOLDING OBLIGATIONS OF THE PARTIES
STATE LAW
California Revenue and Taxation Code Sections 18805, 18815 and 26131
place special requirements for tax reporting and withholding on buyers when (i)
the selling price is greater than $100,000 (one hundred thousand dollars), and
(ii) the seller has not received a California Homeowners Property Tax Exemption
during the year of the sale, and (iii) the funds to the transaction are to be
disbursed to either (a) a seller with a last known address outside of
California, or (b) a financial intermediary of the seller. The withholding rate
is three and one-third percent of the selling price as defined in the statute.
The seller may request a waiver by contacting:
Franchise Tax Board
Withhold at Source Unit
P. 0. BOX 651
Sacramento, CA 95812-0651
(916) 369-4900
FEDERAL LAW
Internal Revenue Code Section 1445 places special requirements for tax
reporting and withholding on the parties to a real estate transaction where the
seller is a non-resident alien, a non-domestic corporation or partnership, a
domestic corporation or partnership controlled by non-residents or non-resident
corporations or partnerships.
With respect to both the State Law and Federal Law referred to above,
the parties to this transaction are seeking an attorney's, accountant's or other
tax specialist's opinion concerning the effect of these laws on this transaction
or are relying on their own knowledge of these laws. The parties to this
transaction are NOT acting on or relying on any statements made or omitted by
the escrow officer, title officer, or other closing officer with respect to tax
reporting or withholding requirements.
20. CERTIFICATE OF AUTY&O.'iIT:
First American Title Insurance Company conducts escrow business under
Certificate of Authority No.. 2787 issued by the State of California Department of
Insurance.
21. NOTICE OF AVAILABILITY OF TITLE INSURANCE
IMPORTANT: In a purchase or exchange of real property, it may be
advisable to obtain Title Insurance in connection with the close of escrow since
there may be prior recorded liens and encumbrances which affect your interest in
the property being acquired. A new Policy of Title Insurance should be obtained
in order to ensure your interest in the property that you are acquiring.
SELLER'S INITIALS BUYER'S INITIALS
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