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2009 04 21 RDA&#444dja Redevelopment Agency agendas are available on the City' web page @ www.la-quinta.org REDEVELOPMENT AGENCY AGENDA CITY COUNCIL CHAMBERS 78-495 Calle Tampico La Quinta, California 92253 Regular Meeting TUESDAY, APRIL 21, 2009 3:00 P.M. Closed Session / 4:00 P.M. Open Session Beginning Resolution No. RA 2009-001 CALL TO ORDER Roll Call: Agency Board Members: Adolph, Franklin, Henderson, Sniff, and Chairman Kirk PUBLIC COMMENT At this time, members of the public may address the Redevelopment Agency on any matter not listed on the agenda. Please complete a "request to speak" form and limit your comments to three minutes. CLOSED SESSION NOTE: Time permitting the Redevelopment Agency Board may conduct Closed Session discussions during the dinner recess. In addition, persons identified as negotiating parties are not invited into the Closed Session meeting when acquisition of real property is considered. 1. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, DOUGLAS R. EVANS, PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL PROPERTY IDENTIFIED AS APN: 609-040- 002. PROPERTY OWNER/NEGOTIATOR: SUSAN E. SLATER. .•. 1 001 Redevelopment Agency Agenda 1 April 21, 2009 2. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, DOUGLAS R. EVANS, PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF CERTAIN REAL PROPERTY LOCATED ON THE WESTSIDE OF WASHINGTON STREET, NORTH OF AVENUE 48 (APN: 643- 090-024). PROPERTY OWNER/NEGOTIATOR: LAING LUXURY HOMES, STEVE BARI. RECESS TO CLOSED SESSION RECONVENE AT 4:00 P.M. 4:00 P.M. PUBLIC COMMENT At this time members of the public may address the Redevelopment Agency on any matter not listed on the agenda. Please complete a "request to speak" form and limit your comments to three minutes. CONFIRMATION OF AGENDA APPROVAL OF MINUTES 1. APPROVAL OF MINUTES OF APRIL 7, 2009. CONSENT CALENDAR NOTE: Consent Calendar items are considered to be routine in nature and will be approved by one motion. APPROVAL OF DEMAND REGISTER DATED APRIL 21, 2009. 2. RECEIVE AND FILE TREASURER'S REPORT DATED FEBRUARY 28, 2009. 3. RECEIVE AND FILE REVENUE & EXPENDITURES REPORT DATED FEBRUARY 28, 2009, AND INVESTMENT SUMMARY REPORT FOR THE QUARTER ENDING MARCH 31, 2009. 002 Redevelopment Agency Agenda 2 April 21, 2009 4. ADOPTION OF A RESOLUTION APPROVING THE FISCAL YEAR 2009/2010 THROUGH 2O13/2014 CAPITAL IMPROVEMENT PROGRAM AND MAKING CERTAIN FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33445(a). 5. ADOPTION OF A RESOLUTION APPROVING A PURCHASE AND SALE AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY AND SUSAN E. SLATER FOR PROPERTY LOCATED AT 46-130 DUNE PALMS ROAD (APN: 600-030-002). BUSINESS SESSION - NONE STUDY SESSION — NONE CHAIR AND BOARD MEMBERS' ITEMS — NONE PUBLIC HEARINGS — NONE ADJOURNMENT The next regular meeting of the Redevelopment Agency will be held on May 5, 2009, commencing with closed session at 3:00 p.m. and open session at 4:00 p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Veronica Montecino, City Clerk of the City of La Quinta, do hereby declare that the foregoing agenda for the La Quinta Redevelopment Agency meeting of April 21, 2009, was posted on the outside entry to the Council Chamber at 78-495 Calle Tampico and on the bulletin boards at 51-321 Avenida Bermudas and 78-630 Highway 111, on April 17, 2009. DATED: pril 17, 2009 r , VERONICA. ONTECINO, City Clerk City of La Quinta, California Public Notice Any writings or documents provided to a majority of the Redevelopment Agency regarding any item on this agenda will be made available for public inspection at the City Clerk counter at City Hall located at 78-495 Calls Tampico, La Quinta, California, 92253, during normal business hours. ,.,.n , 003 Redevelopment Agency Agenda 3 April 21, 2009 F U 5 ti GF`y OF AGENDA CATEGORY: COUNCIL/RDA MEETING DATE: April 21, 2009 BUSINESS SESSION ITEM TITLE: Demand Register Dated CONSENT CALENDAR April 21, 2009 STUDY SESSION PUBLIC HEARING RECOMMENDATION: It is recommended the Redevelopment Agency Board: Receive and File the Demand Register Dated April 21, 2009 of which $205,691.85 represents Redevelopment Agency Expenditures PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA 11' �O QUM& F`y OF'[tte0 COUNCIL/RDA MEETING DATE: April 21, 2009 AGENDA CATEGORY: ITEM TITLE: Receive and File TreasurerBUSINESS SESSION:s Report —h as of February 28, 2009 CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: It is recommended the Redevelopment Agency Board: Receive and file. PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA 4'..0. 005 t� AGENDA CATEGORY: COUNCIL/RDA MEETING DATE: April 21, 2009 ITEM TITLE: Receive and File Revenue and Expenditure Report for February 28, 2009 and Investment Summary Report for the Quarter Ending March 31, 2009 RECOMMENDATION: Receive and File. FISCAL IMPLICATIONS: None. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Receive and File the Statement of Revenue and Expenditures for February 28, 2009 and Investment Summary Report for the Quarter ending March 31, 2009 for the La Quinta Redevelopment Agency. .44 •1 006 Respectfully submitted, . 4K John . Falconer, Finance Director Approved for submission by: e- thomas P. Genovese, Executive Director Attachments: 1. Revenue and Expenditures for February 28, 2009 and Investment Summary Report dated March 31, 2009 r 007 2 LA QUINTA REDEVELOPMENT AGENCY REVENUE SUMMARY PROJECT AREA NO. 1: LOWIMODERATE TAX FUND: Tax Increment Allocated Interest Non Allocated Interest Miscellaneous revenue Non Allocated Interest LQRP-Rent Revenue Home Sales Proceeds Sale of Land Sewer Subsidy Reimbursements Rehabilitation Loan Repayments 2nd Trust Deed Repayment Transfer In TOTAL LOWIMOD TAX DEBT SERVICE FUND: Tax Increment A➢ocated Interest Non Allocated Interest Interest- County Loan Interest Advance Proceeds Transfers In TOTAL DEBT SERVICE 07101/2008 - 07J2812009 ADJUSTED REMAINING % BUDGET RECEIVED BUDGET RECEIVED 11,169.00000 4,892.43908 6.276,560.92 43800% 25,00000 (24,298.05) 49.298.05 -97.190% 0.00 94250 (942 50) 0.000% 000 0.00 000 0000% 0.00 000 0.00 0.000% 225,000.00 162,912.00 62,088.00 72410% 160.000 00 000 150,000.00 0.000% 0.00 0.00 0.00 omo% 65000 603.34 4666 92.820% 0.00 000 000 0.000% 100,000.00 92,50000 7,50000 92.500% 000 000 0.00 0.000% 11,869,fi5000 5,125,09887 6,544,551.13 43.920% 44,676,000.00 19,569,756 27 25,106,243 73 43,800% 173.600 00 121,244.73 52,355 27 69 840% 000 000 0.00 0.000% 000 0.00 0.00 0000% 0.00 0.00 0,00 0000% 4,444,47900 2,951,541.56 1,492,93744 66.410% 49,294,07900 22,642,542.56 26,651,53644 45930% CAPITAL IMPROVEMENT FUND - NON-TAXABLE 590,000.00 306,220.44 283,779.56 51 900% Pooled Cash Allocated Interest 173.000 00 164.741.06 8,258.94 95 230% Non Allocated Interest 0.00 000 0.00 0.000% Developer Agreement Funding 000 0.00 0.00 0000% Sale of Land Proceeds 0.00 0.00 000 0,000% Rental Income 5,000,00000 5,000,00000 0.00 100.000% Transfers In TOTAL CAPITAL IMPROVEMENT 5,763,000.020 5,470,961.50 292-038.50 94.930% LA QUINTA REDEVELOPMENT AGENCY REVENUE SUMMARY PROJECT AREA NO.2: LOWIMODERATE TAX FUND: Tax Increment Allocated Interest Non Allocated Interest Developer funding Vista Dunes MHP Rental Rev 2nd Trust Dead Repayment ERAF Shift - Interest Sale of Land Miraflores Note Repayment Transfer In TOTAL LOWIMOD TAX 2004 LOWIMODERATE BOND FUND: Allocated Interest Home Sale Proceeds Non Allocated Interest Transfer In TOTAL LOWIMOD BOND DEBT SERVICE FUND: Tax Increment Allocated Interest Non Allocated Interest Interest Advance Proceeds Transfer In TOTAL DEBT SERVICE CAPITAL IMPROVEMENT FUND: Allocated Interest Non Allocated Interest Sale of land Transfers In TOTAL CAPITAL IMPROVEMENT 0710112008 - 0212812009 ADJUSTED REMAINING % BUDGET RECEIVED BUDGET RECEIVED S,a43,25000 2,793,08827 3,050,161.73 47600% 320,500 00 164.741.40 155,758.60 51.400% 0.00 0.00 000 0.000% 000 000 0.00 0.000% 0.00 0.00 0.00 0000% 45,00000 40,45825 4,541.75 89.910% 000 0.00 000 0.000% 0.00 0.00 0.00 0000% 0.00 0.00 0,00 0.000% 0.00 0.00 000 0,000% 6 208,750.00 2,998,287 92 3,210,462 08 48.290% 000 0.00 000 0000% 0.00 0.00 0.00 0000% 165.00000 160,781.05 4.218.95 97.440% 0.00 0.00 0.00 0000% 165,000.00 160,78105 4,21895 97.440% 23,373,000.00 11,172,35313 12,200,646.87 47800% 280,000.00 165.68772 124,312.28 55.600% 000 000 0.00 0.000% 0.00 0.00 0.00 0000% 1,953598.00 1,247,93728 705,66072 63880% 25 608 598 00 12 575 978 13 13,03Q619 87 49.110% 36,000.00 24.94804 11,053.96 69.290% 0.00 000 0.00 0.000% 000 0.00 0.00 0000% 0.00 0.00 0.00 0000% 6,000.00 24 946 04 11 053.96 69 290% -n'.n * 008 s ADJUSTED 0710112008-0212812009 REMAINING LA QUINTA REDEVELOPMENT AGENCY BUDGET EXPENDITURES ENCUMBERED BUDGET EXPENDITURE SUMMARY PROJECT AREA NO 1: LOW/MODERATE TAX FUND: 1,10000 000 000 1,10000 PERSONNEL SERVICES 337,86900 215,60019 000 122,2W 81 BUILDING HORIZONS 000 275,00000 000 134,93500 000 000 000 140,06500 LQ RENTAL PROGRAM 000 000 000 000 2n0 TRUST DEED PROGRAM 0.00 000 000 000 BUILDING HORIZONS LANDACQUISITION 4,37145300 4,130,70850 000 240,74450 LOW MOD HOUSING PROJECTS 000 450,00000 000 189.41173 000 000 000 260,58827 FORECLOSURE REIMBURSEMENT TO GEN FUND 0 0 228 1z49293744 TRANSFERS OUT 44�479W 295�'5�4856 DUO TOTAL LOW/MOD TAX DEBT SERVICE FUND: CAPITAL IMPROVEMENT FUND: SERVICES BOND PRINCIPAL SONDINTEREST INTEREST CITY ADVANCE PASS THROUGH PAYMENTS ERAF SHIFT TRANSFERS OUT TOTAL PERSONNEL SERVICES LAND ACQUISITION ASSESSMENT DISTRICT ADVERTISING -ECONOMIC DEV ECONOMIC DEVELOPMENT BOND ISSUANCE COSTS CAPITAL - BUILDING REIMBURSEMENT TO GEN FUND TRANSFERS OUT TOTAL CAPITAL IM 487,92840 000 75,97160 2,960,000 00 000 000 3,709,24513 000 3,620,9438 680.000 00 000 340,000 X 11,826.32746 0 DO 12.590,621 ! 000 000 4,850.6870 110000 000 000 1, 10000 935:215 00 436,708 64 000 498,506 36 000 0 00 0.00 000 000 000 000 000 000 000 000 000 000 000 000 000 000 0.00 000 000 9,00000 000 000 9,00000 l94 HA3 n0 196.589 36 000 98,293 64 009 4 LA OUINTA REDEVELOPMENT AGENCY EXPENDITURE SUMMARY PROJECT AREA NO 2: ADJUSTED 0710112008-02128/2009 REMAINING BUDGET EXPENDITURES ENCUMBERED BUDGET LOWIMODERATE TAX FUND: 70000 000 000 700 DO PERSONNEL 621,6 7600 327,10919 000 294,56681 SERVICES 0.00 000 000 000 2ND TRUST DEEDS 000 2,27500 0DO (2,27500) LOW MOD HOUSING PROJECTS 100,00000 000 000 100,0D000 FORECLOSURE ACQUISITION 50,00000 0DO 000 50,00000 VISTA DUNES PARK 000 (88800) 000 88800 LAND ACQUISITION REIMBURSEMENT TO GEN FUND 360,60400 240.40328 000 000 120,20072 371766006 TRANSFERS OUT 4780,7121 1063081911 TOTAL LOWIMOD TAX 2004 LOW/MODERATE BOND FUND 3,052,80000 1,89000000 000 1,162,80000 HOUSING PROGRAMS 000 000 000 000 LAND TRANSFERS OUT 1239020200 950995950 000 288024250 TOTAL LOWIMOD BOND - DEBT SERVICE FUND: 25052500 262.80560 000 (12,28160) SERVICES 115:00000 115,00000 000 000 BOND PRINCIPAL 305,184 DO 153,87125 000 151,31275 BOND INTEREST INTEREST CITY ADVANCE 1,fi56,52800 1,104,35200 000 000 552,17600 9,637,27362 PASS THROUGH PAYMENTS 19,153 ' 26300 9,515,98938 1,24793728 000 ,637,2736 7056E072 TRANSFERS OUT 1,95359800 TOTAL DEBT SERVICE CAPITAL IMPROVEMENT FUND: 70000 0DO 000 70000 PERSONNEL 368,76000 127.14677 000 241.61323 SERVICES 000 000 000 000 CAPITAL ECONOMIC DEVELOPMENT ACTIVITY 000 000 40,494b4 000 000 000 20.24636 REIMBURSEMENT TO GEN FUND 6074100 39989600 000 79,10495 TRANSFERS OUT TOTAL CAPITAL IMPROVEMENT 079105 010 s d O 0 LL E E J l/ O M D (00 O a E n N Q `n N M ��000000000000N o O @ o �N0000000000000 '� a? t0 t0 tV tU t0 lU t0 c0 N NNpppp0000pppp p m-M Tc x'r< <x S2 T( isxxTc �a�ddmdddma�a�dd (p (p Z Z Z Z Z Z Z Z Z Z Z Z D D D D D D D D D D D C C C C C C C C C C C c J J J J J J J J J J J J LL LL LL LL LL LL LL LL LL LL LL LL N N N N r m'm55555�555555 E ai tJn N N 01 N N O l N UI N N N i�'6'L '?E'1'5 iY N N N t0 N W t0 t6 N t0 t6 t0 tU f0 lU C T T T T T T T T T T T c c c c c c c c c c c N c C c C C c C C c C C C 0 0 0 0 0 0 0 0 0 0 0 0 U (n U � C > > > > Nz D Na (n (n (n(n x 0 x .0 U LL H Co a H 0 0 0 col >> 0 0 p J p J 0 0 p p 0 m d p p C� o O R O V V 0 0 0 0 0 W m m m oOOoOooOoo N N N N N N N N N N ---- Y Y Y Y Y Y Y Y Y Y Y Y Y C C C C C C C c C C C C C c t0 t0 N 0 0 N lU 0 t0 t0 N t0 @ W Q 1 m Q I QI R] Q 1 0] Q 1 0] m fO Q] C0 0] co C6(6(6 (1)p7 (D()U) N0 N(n N 7 zi:� 7:) 7 D' 0 D D D 7 D D C7 to E 0 U N « L_ 3 d t0 Q E U N T O U tea° C C N E N N N > C_ C D U 0 o d Q L Y O w @« aai y N 3 O c f0 2 N c c E d E N d J T C > O U J N N OU c U O m � G T o `ry Z N U y 0 j N c O IO N C J D N O L D J U « U H U � C f0 d o of O N E O C Y C 0 0 U C > LL D U 1 U' Lr. O O Y aU 3 U O N L Z mr 0 m aEm d L D XN « C O N O - E c x c C N N N E C C N E E > _� E O C y n 0 > c T c ti N.C' j N O N N C (p N U D E c a as d x m m m p « L N U �oaac c d E d d « N O 0 O O 0 N U a m w « m « m O N D o C O y N N o N yN�� LLo N C J « r u d c C r m Q J LL ,„ o 11. 6 COUNCIL/RDA MEETING DATE: April 21, 2009 ITEM TITLE: Approval of a Resolution Adopting the Fiscal Year 2009/2010 Through 2013/2014 Capital Improvement Program and Making Certain Findings Pursuant to Health and Safety Code Section 33445(a) RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: A STUDY SESSION: PUBLIC HEARING: Adopt a Resolution approving the Fiscal Year 2009/2010 through 2013/2014 Capital Improvement Program (CIP) and making certain findings pursuant to Health and Safety Code Section 33445(a). FISCAL IMPLICATIONS: Adoption of the Resolution will approve the projects identified in the Fiscal Year 2009/2010 through 2013/2014 CIP and make the necessary findings pursuant to the Health and Safety Code for use of Redevelopment Agency (RDA) Project Area No. 1 and Project Area No. 2 funds. Allocation of funds for these projects will not be approved until the City Council approves the Fiscal Year 2009/2010 annual operating budget. The first year of the five-year forecast, or capital budget, will be included in the City's annual operating budget. When the City Council approves the annual operating budget for Fiscal Year 2009/2010, it will also authorize the expenditure of $22,487,314 for Fiscal Year 2009/2010 capital project expenditures. CHARTER CITY IMPLICATIONS: Because RDA funding will be used on several of the proposed projects, the RDA funded projects will be bid with a requirement that the contractors pay prevailing wage. 44 012 BACKGROUND AND OVERVIEW: On March 17, 2009, staff presented the CIP and five-year forecast to City Council for review during Study Session. The document is a statement of the City's goals, objectives, and priorities for a five-year CIP and the financial commitments required to accomplish those objectives. The purpose of the CIP is to provide the City with a long-range program for major municipal capital construction projects based on the systematic development of an accompanying financial plan. The CIP is a five-year planning instrument used by the City to identify capital improvement needs and to coordinate financing and timing of those needs in a manner that maximizes benefit to the public. As each annual budget is prepared, additional projects and priority needs are identified and added to the program to maintain a total five-year plan. The amount allocated within the CIP for first year projects is called the capital budget and is based on existing fund balances and projected revenues. The capital budget is incorporated into the annual City "Operating" Budget, which appropriates funds for specific facilities, equipment and improvements. Projects slated for subsequent years in the program are approved on a planning basis only and do not receive expenditure authority until they are incorporated into the capital budget. The CIP is updated annually and can be amended at any time based on revenue availability and changes in project priorities. The 2008/2009 CIP identified $9,128,071 in capital improvement projects. With one exception, all 2008/2009 projects are either completed, are currently in the design or construction stage, or will have contracts awarded by the end of the fiscal year. Project 200713 — Calle Estado Mid -Block Crossing cannot be constructed unless the property owner provides an easement to the City. Staff has contacted the property owner and has discovered that the property has been listed for sale. As such, the property owner has declined to provide an easement for the City's use to install the mid -block crossing. Considering the circumstances, this project has been removed from the approved capital budget and the appropriated funding will be returned to the RDA Project Area Number 1 account for use on other projects. Included in the CIP document is a "Capital Improvement Program Fiscal Year 2008/2009 Project Status Report," which lists: one 1996/1997 project carried -over, one 2000/2001 project completed, one 2001 /2002 project completed, one 2002/2003 project completed, one 2004/2005 project underway, two 2005/2006 projects underway, one 2005/2006 projects completed, seven 2006/2007 projects underway, one 2006/2007 projects completed, six 2007/2008 projects underway, three 2007/2008 projects completed, nine 2008/2009 projects underway, and three ,4.P 013 2008/2009 projects completed. Also included is a "Carryover Project Summary" which provides the life -to -date expenditures for all active CIP projects. Overall, the CIP is proposing approximately $60,940,370 in projects during the next five years. The remaining projects represent unfunded "Additional Projects" totaling $84,925,461 and "Developer Reimbursement Agreements" totaling $3,472,775. The funding of projects listed within these unfunded categories will require future City Council consideration to ensure revenue availability. The Capital Budget proposed during Fiscal Year 2009/2010 includes $22,487,314 in capital improvement projects. There are a total of nineteen projects identified to receive funding. Project Number 199613-Washington Street/1-10 Interchange Improvements is a recurring long-term commitment. Two other projects are recurring as part of a long term plan to fill missing sidewalk links (199702-Sidewalks-Various Locations) and to install new or upgrade existing handicap access ramps (Project Number 199703-Handicap Access Ramp -Various Locations) to comply with the ever evolving ADA standards. There are sixteen new projects proposed to complete the 2009/2010 CIP. These projects include: 200901 - Avenue 50 Bridge Improvements Spanning the All American Canal 200902 - Madison Street (Avenue 50 to Avenue 52) 200903 -Highway 1 1 1 Median Island Landscape Improvements (Adams to Jefferson) 200904 - Dune Palms Road Street Improvements (Whitewater River to Westward Ho) 200905 - Seasons Park (Installation of dog park amenities) 200906 - Adams Park Playground 200907 - Fritz Burns Park Playground 200908 - Seasons Park Playground 200909 - Pioneer Park Improvements (Improvements to dog park/new parking lot) 200910 - A Street Extension (Dune Palms Drive easterly to Komar Center) 200911 - Washington Street Apartment Rehabilitation 200912 - RDA Owned Cove Homes (Landscape conversion at 2 locations) 200913 - Relocation of the Coachella Canal at SilverRock Resort 200914 - Highway 1 1 1 Utility Undergrounding (Southside adjacent to RDA owned property) 200915 - Drainage Improvements (Northeast corner of Simon and Washington Street) 200916 - Jefferson Street Parkway Landscaping (Vista Grande to Westward Ho) This CIP is developed using fiscally conservative methodology as directed by the City Council. Prior to proceeding with any project, City Staff will present the project to the City Council for authorization. Health and Safety Code Section 33445(a) requires the Agency to make certain findings regarding the use of RDA funding for capital improvement and to consent to the use of the funding. The attached resolution contains the required findings, which are supported by the information in the report prepared for the City Council's public hearing and by the staff presentation which will be made during the public hearing conducted by the City Council. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency include: 1 . Adopt a Resolution approving the Fiscal Year 2009/2010 through 2013/014 Capital Improvement Program and making certain findings pursuant to Health and Safety Code Section 33445(a); or 2. Do not adopt a Resolution approving the Fiscal Year 2009/2010 through 2013/2014 Capital Improvement Program and making certain findings pursuant to Health and Safety Code Section 33445(a); or 3. Provide staff with alternative direction. Respectfully submitted, mothy R on o , P.E. Public Wo it for/City Engineer Approved for submission by: /- zz�&, c Thomas P. Genovese, Executive Director 015 RESOLUTION NO. RA 2009- A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY OF THE CITY OF LA QUINTA, CALIFORNIA, ADOPTING THE FISCAL YEAR 2009/2010 THROUGH 2013/2014 CAPITAL IMPROVEMENT PLAN AND MAKING CERTAIN FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33445(a) AND CONSENTING TO THE EXPENDITURE OF FUNDS FOR THE IMPROVEMENTS WHEREAS, pursuant to Government Code Section 66002, the La Quinta Redevelopment Agency ("Agency") is required to review and adopt a Capital Improvement Plan (the "Plan"); and WHEREAS, the City is required to conduct a noticed public hearing for consideration of adoption of the Plan; and WHEREAS, notice of the public hearing has been given pursuant to Government Code Section 65090; and WHEREAS, the Plan is a five-year planning instrument used by the City to identify capital improvement needs and to coordinate financing and timing of those needs in a manner that maximizes the return to the public; and WHEREAS, the Plan is a statement of the City's goals, objectives and priorities for a five-year Plan and the financial commitments required to accomplish those objectives; and WHEREAS, the Fiscal Year 2009/2010 through 2013/2014 Plan proposes approximately $60,940,370 in improvement projects and $84,925,461 of unfunded additional improvement projects over the five-year period, commencing on July 1, 2009 and ending June 30, 2014; and WHEREAS, the amount allocated from the Plan for first -year projects, called the capital budget, proposes $22,487,314 in improvements, as shown in Exhibit 1, heretofore made a part of this Resolution; and WHEREAS, there is inadequate funding within the City's General Fund or from other sources to completely and fully fund the improvements identified within the capital budget; and ...0 016 Resolution No. RA 2009- Capital Improvement Plan Adopted: April 21, 2009 Page 2 WHEREAS, the completion of the improvements identified within the capital budget will help to obtain the goals and objectives of La Quinta Redevelopment Project Area No. 1 (Project Areal as well as to afford an opportunity to eliminate conditions of blight in the Project Area; and WHEREAS, the completion of the improvements identified within the capital budget will help to obtain the goals and objectives of La Quinta Redevelopment Project Area No. 2 (Project Areal as well as to afford an opportunity to eliminate conditions of blight in the Project Area; and WHEREAS, it would be in the best interest of the public to completely fund all improvements identified within the capital budget.. NOW THEREFORE, BE IT RESOLVED, by the Agency: SECTION 1. The above recitations are true and correct and are adopted as the findings of the Agency. SECTION 2. The Agency does hereby adopt the Fiscal Year 2009/2010 through 2013/2014 Capital Improvement Plan, and approve the capital budget, as shown in Exhibit 1, heretofore made a part of this Resolution. SECTION 3. The Agency hereby consents to Agency funding to be utilized to fund certain improvements within the Fiscal Year 2009/2010 Capital Budget. SECTION 4. Pursuant to Health and Safety Code Section 33445(a), the Agency finds and determines that: A. The proposed improvements identified within the Fiscal Year 2009/2010 Capital Budget are of benefit to the Redevelopment Agency Project Area No. 1 and to the immediate neighborhoods in which the improvements will be located. B. The proposed improvements identified within the Fiscal Year 2009/2010 Capital Budget are of benefit to the Redevelopment Agency Project Area No. 2 and to the immediate neighborhoods in which the improvements will be located. C. No other reasonable means of financing the improvements are available to the community. ''A 017 Resolution No. RA 2009- Capital Improvement Plan Adopted: April 21, 2009 Page 3 D. The proposed improvements identified within the Fiscal Year 2009/2010 Capital Budget will assist in the elimination of one or more blighting conditions inside the Project Areas and are consistent with the Agency's implementation plan adopted pursuant to Section 33490. BE IT FURTHER RESOLVED, the Agency for the City of La Quinta authorizes the inclusion of said capital budget into the Fiscal Year 2009/2010 operating budget, which appropriates funds for specific facilities, equipment and improvements. PASSED, APPROVED and ADOPTED at a regular meeting of the Agency held on this 21" day of April 2009, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: TOM KIRK, Chairperson City of La Quinta, California ATTEST: VERONICA J. MONTECINO, CMC, Agency Secretary City of La Quinta, California (Seal) APPROVED AS TO FORM: M. KATHERINE JENSON, Agency Counsel City of La Quinta, California It. .(� 018 ATTACHMENT 1 I•-•1? 019 a IFC�� wyw Fy OF TK4O COUNCIL/RDA MEETING DATE: April 21, 2009 ITEM TITLE: Adoption of a Resolution of the Redevelopment Agency Approving a Purchase and Sale Agreement Between the Redevelopment Agency and Susan E. Slater, for Property Located at 46-130 Dune Palms Road (APN: 600-030-002) RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: _ CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Adopt a Resolution of the La Quinta Redevelopment Agency approving the form of the Agreement for Purchase and Sale and Escrow Instructions, subject to further changes and/or modifications as approved by the Executive Director and Agency legal counsel. FISCAL IMPLICATIONS: This purchase will result in the expenditure of up to $330,000; funds were appropriated in 2007, which are contained in the Capital Improvement Program for this Project. BACKGROUND AND OVERVIEW: In September 2005, the Redevelopment Agency directed staff to contact property owners in the Dune Palms Road corridor (north of the Whitewater River and south of Westward Ho Drive) (Attachment 1) to ascertain their interest in selling their property. The Agency was interested in purchasing six properties in this area to accommodate a SilverRock Resort well site, to accommodate widening Dune Palms Road (the widened roadway alignment would be within feet of the front entries of these residences), and to develop the remaining land with affordable housing. Four of the property owners expressed interest in selling their property; the Agency has subsequently acquired these properties and successfully relocated these households. Staff has been meeting and negotiating the purchase of the fifth property since 2006. In January 2009, Ms. Slater (the fifth property owner) expressed interest in concluding negotiations and selling her property. The attached Purchase and Sale Agreement (Attachment 2) facilitates the purchase of this 7,405 square foot parcel that is ». r, 020 developed with a single-family residence and workshop; this property fronts Dune Palms Road. Ms. Slater has agreed to sell her property at the appraised value ($326,000) and her family will require up to $75,120 in relocation assistance. The relocation assistance will facilitate their move to a comparable home they may purchase in La Quinta, or along California State Highway 74 south of Palm Desert. When acquired, the existing improvements will be demolished, the Dune Palms Road frontage will be dedicated to the City to facilitate Dune Palms Road widening, a portion of the property will be dedicated to the SilverRock Resort well site, and the remaining property will be combined with the adjoining parcels. The Agency will then be proceeding to design and structure an affordable housing development that will be slated for special needs low and moderate income households. FINDINGS AND ALTERNA The alternatives available to the Agency Board include: 1. Adopt a Resolution of the Redevelopment Agency approving the form of the Agreement for Purchase and Sale and Escrow Instructions and subject to further changes and/or modifications as approved by the Executive Director and Agency legal counsel; or 2. Do not adopt the Resolution approving the form of the Agreement for Purchase and Sale; or 3. Provide staff with alternative direction. Respectfully submitted, n Doug as drVvans Assistant City Manager — Development Services Approved for submission by: 6 Thomas P. Genovese, Executive Director Attachments: 1. Vicinity Map 2. Purchase and Sale Agreement .... ^ 021 RESOLUTION NO. A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING AN AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS BY AND BETWEEN THE AGENCY AND SUSAN E. SLATER, FOR THE AGENCY'S PURCHASE OF REAL PROPERTY FOR AFFORDABLE HOUSING PURPOSES WHEREAS, the La Quinta Redevelopment Agency ("Agency") is a public body, corporate and politic, organized and existing under the California Community Redevelopment Law (Health & Safety Code Section 33000, et seq.) ("CRL"); and WHEREAS, pursuant to the CRL, the City Council of the City of La Quinta ("City" or "City Council," as applicable) approved and adopted the Redevelopment Plan ("Redevelopment Plan") for Project Area No. 2 ("Project Area"), on May 16, 1989, by Ordinance No. 139; and WHEREAS, a fundamental purpose of the CRL is to expand the supply of low- and moderate -income housing (Health & Safety Code, § 33071); and WHEREAS, the Agency staff has negotiated an Agreement for Purchase and Sale and Escrow Instructions ("Agreement") with Susan E. Slater ("Seller"), for the Agency's purchase of real property located at 46-130 Dune Palms Road and known as APN 600-030-002 (the "Property"), for Three Hundred and Twenty six Thousand Dollars ($326,000); and WHEREAS, the residents of the Property are entitled to relocation assistance in the amount of approximately $75,120, pursuant to the California Relocation Assistance Act (Govt. Code section 7260 et seq.); and WHEREAS, the Agreement is in accordance with the Redevelopment Plan and is of benefit to the Project Area and the City of La Quinta. NOW, THEREFORE, BE IT RESOLVED BY THE LA QUINTA REDEVELOPMENT AGENCY AS FOLLOWS: Section 1. That the above recitals are true and correct and incorporated herein. Section 2. The Agreement, a copy of which is on file with the Agency Secretary, is hereby approved. The Agency Executive Director and Agency Counsel are hereby authorized and directed to make final modifications to the Agreement that are consistent with the substantive terms of the Agreement approved hereby, and the Agency Executive Director is authorized to thereafter sign the Agreement on behalf of the Agency. -" 022 Section 3. The Agency Executive Director is authorized and directed, on behalf of the Agency, to (i) sign such other and further documents, including but not limited to escrow instructions that require the Agency's signature, and (ii) take such other and further actions, as may be necessary and proper to carry out the terms of the Agreement. Section 4. The Agency authorizes the expenditure of up to $405,120 to close the transaction contemplated by the Purchase Agreement and provide relocation benefits from funds appropriated in 2007 in the Low and Moderate Income Housing Fund number 401-0000-391.00-00. the La Quinta following vote: AYES: NOES: ABSENT: PASSED, APPROVED, AND ADOPTED at a regular meeting of Redevelopment Agency held this day of April, 2009, by the ABSTAIN: TOM KIRK, Agency Chair City of La Quinta, California ATTEST: VERONICA J. MONTECINO, CMC, Agency Secretary City of La Quinta, California APPROVED AS TO FORM: M. KATHERINE JENSON, Agency Counsel City of La Quinta, California •�• ^ 023 ATTACHMENT Attachment 1: Dune Palms Road Corridor Acquisition Status Map , , , , well site , , , , , ii slater ............•...•. a .........•..••...• � simo pescador H fountain hartnett a" d 0 , , , , , , , perevra , , , ramirez , , Acquired Parcels •..••• Acquisition & Relocation Initiated ® Presently Not Sought Previously Acquired for Well Site Rejected Offers 024 ATTACHMENT AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS BY AND BETWEEN SUSAN E. SLATER ("SELLER") AND LA QUINTA REDEVELOPMENT AGENCY ("BUYER") 2156/015610-0047 1005843 02 .04/14/09 025 TABLE OF CONTENTS 1. PROPERTY Page 5. CLOSE OF ESCROW...................................................................................................... 3 5.1 Close of Escrow; Closing Date............................................................................. 3 5.2 Recordation; Release of Funds and Documents ................................................... 4 6. DELIVERY OF DOCUMENTS REQUIRED FROM BUYER AND SELLER.............4 6.1 Buyer's Obligations.............................................................................................. 4 6.2 Seller's Obligations.............................................................................................. 4 7. TITLE INSURANCE POLICY........................................................................................ 5 7.1 . Title Policy........................................................................................................... 5 7.2 Payment for Title Policy....................................................................................... 5 8. REAL PROPERTY TAXES AND ASSESSMENTS...................................................... 5 9. CONDITIONS PRECEDENT TO CLOSING................................................................. 6 9.1 Conditions Precedent to Buyer's Obligations...................................................... 6 9.2 Conditions Precedent to Seller's Obligations....................................................... 6 10. POSSESSION...................................................................................................................7 11. ALLOCATION OF COSTS............................................................................................. 8 11.1 Buyer's Costs........................................................................................................ 8 11.2 Seller's Costs........................................................................................................ 8 2156/015610-0047 1005843.02 a04/14/09 -i- "..^ 026 12. CONDEMNATION....... 13. HAZARDOUS MATERIALS...... 14. COVENANTS OF SELLER......... Page ................................................. 8 .............................................................. 8 ............................................................. 9 15. MISCELLANEOUS.........................................................................................................9 15.1 Assignment...........................................................................................................9 15.2 Notices..................................................................................................................9 15.3 Fair Meaning....................................................................................................... 10 15.4 Headings.............................................................................................................10 15.5 Choice of Laws; Litigation Matters.................................................................... 10 15.6 Nonliability of Buyer Officials...........................................................................10 15.7 Gender; Number.................................................................................................10 15.8 Survival...............................................................................................................10 15.9 Time of Essence..................................................................................................10 15.10 Waiver or Modification...................................................................................... 10 15.11 Broker's Fees...................................................................................................... 10 15.12 Duplicate Originals.............................................................................................11 15.13 Severability.........................................................................................................11 15.14 Exhibits...............................................................................................................11 15.15 Authority.............................................................................................................11 15.16 Entire Agreement; Amendment.......................................................................... 11 EXHIBITS Exhibit A Legal Description of Property Exhibit B Form of Grant Deed Exhibit C Affidavit of Non -Foreign Entity Exhibit D Bill of Sale Exhibit E Escrow Instructions Exhibit F Special Escrow Instructions 2156/015610-0047 1005843 02 a04/14/09 -11- 027 AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS THIS AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS ("Agreement") is made and entered into as of , 2009 ("Effective Date") by and between Susan E. Slater ( "Seller") and the LA QUINTA REDEVELOPMENT AGENCY, a public body corporate and politic ("Buyer"). RECITALS: A. Seller represents and warrants that she is the sole and exclusive fee title owner of that certain real property located in the City of La Quinta, County of Riverside, State of California, commonly known as 46-130 Dune Palms Road (APN 600-030-002), more particularly described in the legal description attached hereto as Exhibit "A" (the "Real Property") improved with a residential dwelling, a wood working shop and other related accessory structures and improvements (the "Improvements"). B. Buyer desires to purchase the Property (as that term is defined below) from Seller, and Seller desires to sell the Property to Buyer, on the terms and conditions set forth herein. C. On May 25, 2007, Buyer issued an offer letter to Seller indicating Buyer's intention to acquire the Property; Buyer is acquiring the Property for the public purpose of developing the Real Property as an affordable housing project. This action will cause Seller to become a displaced person pursuant to the California Relocation Assistance Act (Cal. Govt. Code § 7260 et seq.) and Buyer is complying with the provisions of the Relocation Assistance Act. Seller represents that they have found property that they desire to move to, and, therefore, have requested that the Buyer expedite the processing of this Agreement in order for Seller to acquire property that it desires to move to. AGREEMENT: NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated into this Agreement, and mutual covenants herein contained, the parties hereto agree as follows: 1. PROPERTY. Subject to all of the terms, conditions and provisions of this Agreement, and for the consideration herein set forth, Seller hereby agrees to sell to Buyer and Buyer hereby agrees to purchase from Seller the Real Property and Seller hereby agrees to sell and Buyer hereby agrees to buy the following: 1.1 Improvements. Seller's interest in and to the Improvements and all tenements, hereditaments and appurtenances thereto, subject to the Permitted Exceptions (as that term is defined in Section 7.1); 1.2 Fixtures and Personal Property. Any and all fixtures and fittings that are attached to the Real Property and Improvements, all existing electrical, mechanical, lighting, plumbing 2156/015610-0047 1005843.02 a04/14/09 -1- .• ^ 028 and heating fixtures, ceiling fans, fireplace inserts, gas logs and grates, solar systems, built-in appliances, window and door screens, awnings, shutters, window coverings, attached floor coverings, television antennas, private integrated telephone systems, air coolers/conditioners, pool/spa equipment, garage door openers/remote controls, mailbox, in -ground landscaping, trees/shrubs, water softeners, water purifiers, and security systems/alarms (collectively, the "Fixtures and Personal Property"). The Real Property, the Improvements, and the Personal Property are hereinafter collectively referred to as the "Property." 2. PURCHASE PRICE. 2.1 Amount. The purchase price which Seller agrees to accept and Buyer agrees to pay for the Property is the sum of THREE HUNDRED TWENTY-SIX THOUSAND DOLLARS ($326,000.00) ("Purchase Price"). The parties agree that with the exception of relocation benefits referenced in Section 3, below, the Purchase Price reflects the full payment that Seller will receive from Buyer for the Property. 2.2 Payment of Purchase Price. On or before 5:00 p.m. on the business day preceding the "Closing Date" (as that term is defined in Section 5.1) or such earlier time as required by "Escrow Holder" in order to close "Escrow" (as those terms are defined in Section 4.1) on the Closing Date, Buyer shall deposit with Escrow Holder the Purchase Price. 3. RELOCATION ASSISTANCE. In addition to the Purchase Price, Buyer and Seller agree that Seller shall be entitled to relocation assistance pursuant to California Relocation Assistance Act (Cal. Govt. Code Sections 7260 et seq.; Relocation Assistance and Real Property Acquisition Guidelines, California Administrative Cove Title 25), in accordance with the terms and amounts memorialized in a relocation benefit letter issued by the Rosenow Spevacek Group. For reference purpose only, the total relocation assistance paid to Seller pursuant to the relocation benefit letter is SIXTY THOUSAND DOLLARS ($60,000.00) and shall be paid and disbursed pursuant to the terms of the relocation benefit letter. 4. ESCROW. 4.1 Opening of Escrow. Closing of the sale of the Property shall take place through an escrow ("Escrow") to be established within three (3) business days after the execution of this Agreement by the parties hereto, with Four Seasons Escrow, Inc. ("Escrow Holder") at its office located at 47-350 Washington Avenue, Suite 101, La Quinta, California 92253. The opening of the Escrow (the "Opening of Escrow") shall be deemed to be the date that a fully executed copy of this Agreement is delivered to the Escrow Holder. Escrow Holder is instructed to notify Buyer and Seller in writing of the date of the Opening of Escrow. 4.2 Escrow Instructions. This Agreement, once deposited in Escrow, shall constitute the joint escrow instructions of Buyer and Seller to Escrow Holder. Additionally, if Escrow Holder so requires, Buyer and Seller agree to execute the form of escrow instructions that Escrow Holder customarily requires in real property escrows administered by it. In the event of any conflict or inconsistency between Escrow Holder's standard instructions and the provisions of this Agreement, the provisions of this Agreement shall supersede and be controlling. The 2156/015610-0047 1005843 02 a04/14/09 -2- -. ^ 029 parties additionally agree to the Escrow Holder's standard terms, a copy of which is attached hereto as Exhibit E and to the additional supplemental instructions contained in Exhibit F. TITLE MATTERS. Buyer shall obtain a preliminary title report prepared by Old Republic Title Company ("Title Company"), located at 750 B Street Suite 3150, San Diego, CA 92101, describing the state of title of the Property together with copies of all underlying documents and a map of plotted easements (collectively, the "Preliminary Title Report"). Buyer may, at its sole cost and expense, obtain a current survey of the Property (the "Survey"). Notwithstanding anything herein to the contrary, Seller shall be obligated to remove all monetary encumbrances against the Property excluding non -delinquent real property taxes (except as otherwise provided for in Section 8 below). Buyer shall notify Seller in writing of any objections Buyer may have to title exceptions contained in the Preliminary Title Report or matters shown on the Survey (if Buyer has obtained) no later than the date which is fifteen (15) days after the later of (i) its receipt of the Preliminary Title Report or (ii) its receipt of the Survey ("Buyer's Objection Notice"). Buyer's approval or disapproval of the matters set forth in the Preliminary Title Report (and the Survey, if applicable) may be granted or withheld in Buyer's sole and absolute discretion. Buyer's failure to provide Seller with a Buyer's Objection Notice within said period shall constitute Buyer's approval of all exceptions to title shown on the Preliminary Title Report and all matters shown on the Survey (if Buyer has obtained). Seller shall have a period of five (5) days after receipt of Buyer's Objection Notice in which to deliver written notice to Buyer ("Seller's Notice") of Seller's election to either (i) agree to remove the objectionable items on the Preliminary Title Report or Survey prior to the Close of Escrow, or (ii) decline to remove any such title exceptions or Survey matters and terminate Escrow and the obligations of Buyer and Seller to purchase and sell the Property under this Agreement. Seller's failure to provide Buyer with Seller's Notice within said period shall constitute Seller's election to remove the objectionable items on the Preliminary Title Report. If Seller notifies Buyer of its election to terminate rather than remove the objectionable items on the Preliminary Title Report or Survey, Buyer shall have the right, by written notice delivered to Seller within five (5) days after Buyer's receipt of Seller's Notice, to agree to accept the Property subject to the objectionable items, in which event Seller's election to terminate shall be of no effect, and Buyer shall take title at the Close of Escrow subject to such objectionable items without any adjustment to or credit against the Purchase Price. All exceptions to title shown on the Preliminary Title Report, other than those which Seller may agree to remove pursuant to this Section 5, shall be deemed to have been approved by Buyer unless Seller is notified otherwise in writing. Upon the issuance of any amendment or supplement to the Preliminary Title Report which adds additional exceptions, including any survey exceptions, the foregoing right of review and approval shall also apply to said amendment or supplement. The process set forth above for Buyer's review and Seller's response shall apply to any review and response with respect to any amendment or supplement to the Preliminary Title Report, and the Closing shall be extended for such period as is necessary to allow for that review and response process to be completed. 5. CLOSE OF ESCROW. 5.1 Close of Escrow; Closing Date. Provided that all of the conditions of this Agreement precedent to the "Close of Escrow" (as hereinafter defined) as set forth in Section 9 below have been satisfied (or waived by the appropriate party) prior to or on the Closing Date, 2156/015610-0047 1005843.02 a04/14109 -3- the Closing of this transaction for the sale and purchase of the Property shall take place on or before May 29,2009 ("Outside Closing Date"). Notwithstanding the foregoing, if Buyer and Seller agree to advance the Closing, and so long as all of "Buyer's Conditions to Closing" and all of "Seller's Conditions to Closing" (as those terms are defined in Section 9) have been satisfied (or waived by the appropriate party), Seller and Buyer may elect to authorize the Closing before the Outside Closing Date. The terms "Close of Escrow", "Closing Date" and the "Closing" are used herein to mean the time Seller's grant deed conveying fee title to the Property to Buyer is recorded in the Official Records of the Office of the County Recorder of Riverside ("Official Records"). If Escrow is not in a condition to close by the Outside Closing Date, either party not then in default hereunder may, upon five (5) days advance written notice to the other party and Escrow Holder, elect to terminate this Agreement and the Escrow. No such termination shall release either party then in default from liability for such default. If neither party so elects to terminate this Agreement and the Escrow, Escrow Holder shall close the Escrow as soon as possible. 5.2 Recordation; Release of Funds and Documents. 5.2.1 Escrow Holder is directed, on the Closing Date, to record in the Official Records, the following documents in the order listed: (i) the Quitclaim Deed (defined below) signed and acknowledged by Seller's spouse (in a form and content provided by the Escrow Holder); (i) the grant deed (in the form attached hereto as Exhibit `B") transferring title to the Property to Buyer ("Grant Deed"); and (ii) such other and further documents as may be directed jointly by Buyer and Seller. 5.2.2 Upon the Closing, Escrow Holder shall deliver (i) the Purchase Price, less any amount to pay property taxes and/or assessments allocable to Seller pursuant to Section 8, and (ii) conformed copies of all recorded documents to both Buyer and Seller. 6. DELIVERY OF DOCUMENTS REQUIRED FROM BUYER AND SELLER. 6.1 Buyer's Obligations. Buyer agrees that on or before 5:00 p.m. of the last business day immediately preceding the Closing Date, Buyer shall deposit or cause to be deposited with Escrow Holder the following: (a) the Purchase Price; and (b) any and all additional funds, instruments or other documents required from Buyer (executed and acknowledged where appropriate) as may be reasonably necessary in order for the Escrow Holder to comply with the terms of this Agreement. 6.2 Seller's Obligations. Seller agrees that on or before 5:00 p.m. of the last business day immediately preceding the Closing Date, Seller shall deposit or cause to be deposited with Escrow Holder each of the following: (a) the executed and acknowledged Grant Deed, subject only to the Permitted Exceptions (defined hereafter); 2156/015610-0047 1005843 02 a04/14/09 -4- 031 (b) a Certificate of Non -Foreign Status (the "Non -Foreign Affidavit") executed and acknowledged by Seller in the form attached hereto as Exhibit "C' ; (c) a Bill of Sale (the "Bill of Sale") executed and acknowledged by Seller in the form attached hereto as Exhibit "D'; and (d) a quitclaim deed, signed by Seller's spouse and acknowledged, in a form and content provided by the Escrow Holder, stating that Seller's spouse relinquishes any right, title, or interest he may have in the Property ("Quitclaim Deed"). (e) all other funds, items, and instruments required from Seller (executed and acknowledged where appropriate) as may be reasonably necessary in order for Escrow Holder to comply with the provisions of this Agreement. 7. TITLE INSURANCE POLICY. 7.1 Title Policy. At the Closing Date, the Title Company, as insurer, shall issue a CLTA owner's standard coverage policy of title insurance ("Title Policy"), in favor of Buyer, as insured, showing Buyer as fee title owner of the Property, with liability in the amount of the Purchase Price, subject only to the following (the "Permitted Exceptions"): (a) non -delinquent real property taxes, subject to Seller's obligations to pay certain taxes pursuant to Section 8 below; (b) covenants, conditions, restrictions and reservations of record that do not interfere with the Buyer's proposed use of the Property, as determined in the sole and absolute discretion of Buyer; (c) easements or rights -of -way over the Property for public or quasi -public utility or public street purposes; (d) title exceptions approved or deemed approved by Buyer pursuant to Section 4.2 above; (e) any other exceptions approved by Buyer; and (f) the standard printed conditions and exceptions contained in the CLTA standard owner's policy of title insurance regularly issued by the Title Company. 7.2 Payment for Title Policy. Buyer shall be responsible for the charges for the Title Policy with coverage up to the amount of the Purchase Price. Buyer shall pay any additional coverage or endorsements it requests. Buyer may, at its election and expense, request an ALTA extended policy of title insurance. Buyer shall also pay for the Survey, if applicable. 8. REAL PROPERTY TAXES AND ASSESSMENTS. Upon Buyer's acquisition of fee title to the Property, the Property will be exempt from the payment of property taxes due to Buyer's status as a public agency. Seller shall be responsible for paying (through Escrow at Closing) all real and personal property taxes and assessments which are of record as of the 2156/015610-0047 1005843 02 a04/14/09 -5 (� 032 Closing Date and/or have accrued against the Property prior to (and including) the Closing Date (notwithstanding whether such taxes and/or assessments are due and payable as of the Closing Date). Buyer hereby acknowledges and agrees that Buyer will provide the funds necessary to completely payoff, at Closing, any amounts outstanding under the City of La Quinta Assessment District 2000-1. Seller shall be responsible for paying for all real or personal property taxes or assessments assessed against the Property after the Closing for any period prior to the Closing. 9. CONDITIONS PRECEDENT TO CLOSING. 9.1 Conditions Precedent to Buyer's Obligations. The obligations of Buyer under this Agreement to purchase the Property and close the Escrow shall be subject to the satisfaction or signed written waiver by Buyer of each and all of the following conditions precedent (collectively, "Buyer's Conditions to Closing"): (a) on the Closing Date, the Title Company shall be irrevocably committed to issue the Title Policy pursuant to Section 7 above insuring fee title to the Property as being vested in Buyer, subject only to the Permitted Exceptions; (b) Escrow Holder holds all instruments, documents, and funds required for the Closing and will deliver to Buyer the instruments and funds, if any, accruing to Buyer pursuant to this Agreement; (c) except as otherwise permitted by this Agreement, all representations and warranties by the Seller in this Agreement shall be true on and as of the Closing Date as though made at that time and all covenants of Seller pursuant to this Agreement shall have been fulfilled by the Closing Date; (d) Seller is not in material default of any term or condition of this Agreement; (e) as of the Closing Date, no judicial or administrative challenges have been presented or filed against the Agency or the City of La Quinta's actions in connection with developing the Real Property as an affordable housing project, including, without limitation, any challenge to environmental approvals or financing methods; and In the event that any of Buyer's Conditions to Closing are not satisfied, deemed satisfied, or waived in a writing signed by Buyer prior to the expiration of the applicable period for satisfaction or waiver, Buyer may terminate this Agreement. 9.2 Conditions Precedent to Seller's Obligations. The obligations of Seller under this Agreement shall be subject to the satisfaction or signed written waiver by Seller of each and all of the following conditions precedent ("Seller's Conditions to Closing"): (a) Escrow Holder holds the Purchase Price and all other instruments, documents, and funds required for the Closing and will deliver to Seller the instruments and funds, including but not limited to the Purchase Price (less Seller's closing costs) accruing to Seller pursuant to this Agreement; 2156/015610-0047 1005843 02 a04/14/09 -6- .._ ^ 033 (b) except as otherwise permitted by this Agreement, all representations and warranties by the Buyer in this Agreement shall be true on and as of the Closing Date as though made at that time and all covenants of Buyer pursuant to this Agreement shall have been fulfilled by the Closing Date; and (c) Buyer is not in material default of any term or condition of this Agreement. In the event that any of Seller's Conditions to Closing are not satisfied, deemed satisfied, or waived in a writing signed by Seller prior to the expiration of the applicable period for satisfaction or waiver, Seller may terminate this Agreement. 10. POSSESSION. After the Close of Escrow, Buyer agrees to allow Seller to remain in possession of the Property up to and including the earlier of the following dates: (1) one hundred twenty (120) days after the Close of Escrow, or (2) the date when Seller surrenders possession of the Property to Buyer (the "Holdover Period"). Seller agrees that on or before that date, Seller shall surrender the Property to the City. Seller's right of possession under this provision shall not be transferable and may only be utilized by Seller and Seller's immediate family. Seller shall coordinate the delivery of keys and transfer of possession with the Public Works Department of the City of La Quinta or its designee. During the Holdover Period, Seller shall pay rent to Buyer in the amount of ONE THOUSAND DOLLARS ($1,000) per month ("Rent"). Rent shall be due and payable, in advance, on the first day of each month, except that if the Close of Escrow occurs on a day other than the first of the month then Rent shall be prorated for the number of days remaining in that month and the number of days in the last month of the Holdover Period. Additionally, during the Holdover Period, Seller shall be responsible for the payment of all utilities, telephone, waters, alarm systems, gardening services, landscape maintenance and such other charges as those normally paid by a month -to -month tenant of residential property. Prior to the transfer of possession, Seller shall coordinate with Buyer as to the cancellation and/or transfer of any ongoing services, such as utilities. Seller shall take no action which would result in a lien or assessment being recorded against or imposed upon the Property. Seller may wish to obtain renters insurance and any other insurance Seller deems necessary to protect Seller's interests and the interests of Seller's family. Seller understands that Buyer is in no way providing any insurance coverage that would extend protection to Seller or Seller's family. During the holdover period, the Seller shall maintain the property in its current condition, normal wear and tear excepted. Seller accepts the Property during this period in its "AS IS" condition, and Buyer makes no representations or warranties as to the conditions of the Property. Seller acknowledges that up until the transfer of possession, Buyer has not inspected the Property and Buyer shall have no liability arising from the condition or use of the Property during the holdover period. Seller, on behalf of Seller and Seller's family, hereby waives and releases the Buyer, its employees and agents from any and all liability and claims for damages, including property damage, bodily injury, or death, which arise the condition, use, occupancy of the Property during the holdover period. Should any claim be made against the Buyer, its employees or agents (the "Indemnified Parties") for damages, including property damage, bodily injury, or death, which arise from the condition, use, or occupancy of the Property, or occur on the Property, during the holdover period, Seller shall defend and indemnify the Indemnified Parties and promptly pay any judgment rendered against them. 2156/015610-0047 1005843 02 a04/14/09 -7 034 11. ALLOCATION OF COSTS. 11.1 Buyer's Costs. Buyer shall pay all closing costs associated with this Agreement and the conveyance of the Property from Seller to Buyer, including any and all escrow and title fees, recording fees, documentary transfer tax, the premium for the Title Policy (plus any additional fee for ALTA extended coverage and/or title endorsements requested by Buyer), and Buyer's own attorney's fees in connection with this Agreement and the transactions contemplated hereby. 11.2 Seller's Costs. Seller shall pay Seller's own attorney's fees, if any, in connection with this Agreement and the transactions contemplated hereby. 12. CONDEMNATION. In the event that, prior to the Close of Escrow, any governmental entity (other than the City) shall commence any proceedings of or leading to eminent domain or similar type proceedings to take all or any portion of the Property, Buyer or Seller shall promptly meet and confer in good faith to evaluate the effect of such action on the purposes of this Agreement. 13. HAZARDOUS MATERIALS. To the best of Seller's knowledge, the Property has not at any time been used for the purposes of storing, manufacturing, releasing or dumping Hazardous Materials. For purposes of this Agreement, the term "Hazardous Materials" shall mean (1) hazardous wastes, hazardous materials, hazardous substances, hazardous constituents, toxic substances or related materials, whether solids, liquids or gases, including, but not limited to, substances deemed as "hazardous wastes," "hazardous materials," "hazardous substances," "toxic substances," "pollutants," "contaminants," "radioactive materials," or other similar designations in, or otherwise subject to regulation under, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended ("CERCLA"), 42 U.S.C. § 9601 et seq.; the Toxic Substance Control Act ("TSCA"), 15 U.S.C. § 2601 et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. § 1802; the Resource Conservation and Recovery Act ("RCRA"), 42 U.S.C. § 9601, et seq.; the Clean Water Act ("CWA"), 33 U.S.C. § 1251 et seq.; the Safe Drinking Water Act, 42 U.S.C. § 300 et seq.; the Clean Air Act ("CAA"), 42 U.S.C. § 7401 et seq.; the Hazardous Waste Control Law, California Health and Safety Code § 25025 et seq., the Carpenter -Presley -Tanner Hazardous Substance Account Act, California Health and Safety Code, Division 20, Chapter 6.8, the Hazardous Materials Release Response Plans and Inventory Act, California Health and Safety Code, Division 20, Chapter 6.95, The Underground Storage of Hazardous Substances Act, California Health and Safety Code, Division 20, Chapter 6.7, the Porter -Cologne Act, California Water Code § 13050 et seq. and in any permits, licenses, approvals, plans, rules, regulations or ordinances adopted, or other criteria and guidelines promulgated pursuant to the preceding laws or other similar federal, state or local laws, regulations, rules or ordinances now or hereafter in effect relating to environmental matters (collectively the "Environmental Laws"); and (ii) any other substances, constituents or wastes subject to any applicable federal, state or local law, regulation, ordinance or common law doctrine, including any Environmental Law, now or hereafter in effect, including, but not limited to, (A) petroleum, (B) refined petroleum products, (C) waste oil, (D) waste aviation or motor vehicle fuel, (E) asbestos, (F) lead in water, paint or elsewhere, (G) radon, (H) polychlorinated biphenyls (PCB's) and (I) ureaformaldehyde. 2156/015610-0047 1005843 02 a04/14/09 -8- 035 14. COVENANTS OF SELLER. Seller agrees that during the period between the Effective Date of this Agreement and the Closing Date: (a) Seller shall maintain the Property in not less than the state of repair as that existing on the Effective Date (excepting ordinary wear and tear); (b) Seller shall not convey, grant, lease, assign, mortgage, hypothecate, encumber, or otherwise transfer (on or off record) the Property or any interest therein; (c) Prior to Closing, Seller shall maintain Seller's existing insurance, if any, on the Property; and (d) Prior to the Closing, Seller shall not alter the physical condition of the Property or introduce or release, or permit the introduction or release, of any Hazardous Materials in, from, under, or on the Property. 15. MISCELLANEOUS. 15.1 Assignment. This Agreement shall be binding upon and shall inure to the benefit of Buyer and Seller and their respective heirs, personal representatives, successors and assigns. Seller may not assign or otherwise transfer this Agreement or any interest or right hereunder or under the Escrow without the prior written consent and approval of the Buyer, which consent and approval may be withheld in the Buyer's sole and absolute discretion. No provision of this Agreement is intended nor shall in any way be construed to benefit any party not a signatory hereto or to create a third party beneficiary relationship. 15.2 Notices. All notices under this Agreement shall be effective upon personal delivery, via facsimile so long as the sender receives confirmation of successful transmission from the sending machine, or three (3) business days after deposit in the United States mail, registered, certified, postage fully prepaid and addressed to the respective parties as set forth below or as to such other address as the parties may from time to time designate in writing: To Seller: Susan E. Slater 46-130 Dune Palms Road La Quinta, California 92253 Telephone: (760) 221-8695 To Buyer: City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 Attn: City Manager Facsimile No.: (760) 777-7101 Copy to: Rutan & Tucker, LLP 611 Anton Boulevard, Suite 1400 Costa Mesa, California 92628-1950 Attn: M. Katherine Jenson, Esq. Facsimile No.: (714) 546-9035 2156/015610-0049 1005843.02.04/14/09 -9 036 N.. 15.3 Fair Meaning. This Agreement shall be construed according to its fair meaning and as if prepared by both parties hereto. 15.4 Headings. The headings at the beginning of each numbered Section of this Agreement are solely for the convenience of the parties hereto and are not a part of this Agreement. 15.5 Choice of Laws; Litigation Matters. This Agreement shall be governed by the internal laws of the State of California and any question arising hereunder shall be construed or determined according to such law. The Municipal and Superior Courts of the State of California in and for the County of Riverside, or such other appropriate court in such county, shall have exclusive jurisdiction of any litigation between the parties concerning this Agreement. Service of process on Buyer shall be made in accordance with California law. Service of process on Seller shall be made in any manner permitted by California law and shall be effective whether served inside or outside California. 15.6 Nonliabilit of Officials. No officer, official, member, employee, agent, or representatives of Buyer shall be liable for any amounts due hereunder, and no judgment or execution thereon entered in any action hereon shall be personally enforced against any such officer, official, member, employee, agent, or representative. 15.7 Gender; Number. As used in this Agreement, masculine, feminine, and neuter gender and the singular or plural number shall be deemed to include the others wherever and whenever the context so dictates. 15.8 Survival. This Agreement and all covenants to be performed after the Closing, and, except as otherwise set forth herein, all representations and warranties contained herein, shall survive the Closing Date and shall remain a binding contract between the parties hereto. 15.9 Time of Essence. Time is of the essence of this Agreement and of each and every tern and provision hereof, it being understood that the parties hereto have specifically negotiated the dates for the completion of each obligation herein. 15.10 Waiver or Modification. A waiver of a provision hereof, or modification of any provision herein contained, shall be effective only if said waiver or modification is in writing, and signed by both Buyer and Seller. No waiver of any breach or default by any party hereto shall be considered to be a waiver of any breach or default unless expressly provided herein or in the waiver. 15.11 Broker's Fees. Seller and Buyer represent and warrant to the other that neither Buyer nor Seller has employed any broker and/or finder to represent its interest in this transaction. Each party agrees to indemnify and hold the other free and harmless from and against any and all liability, loss, cost, or expense (including court costs and reasonable attorney's fees) in any manner connected with a claim asserted by any individual or entity for any commission or finder's fee in connection with the conveyance of the Property arising out of agreements by the indemnifying party to pay any commission or finder's fee. 2156/015610-0047 1005843 02 a04/14/09 -10- 037 15.12 Duplicate Originals. This Agreement may be executed in any number of duplicate originals, all of which shall be of equal legal force and effect. 15.13 Severabilitv. If any term, covenant or condition of this Agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term, covenant, or condition to persons, entities, or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term, covenant or condition of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 15.14 Exhibits. The following exhibits are attached hereto and incorporated herein by this reference: Exhibit "A" Legal Description of Property Exhibit `B" Grant Deed Exhibit "C" Non -Foreign Affidavit Exhibit "D" Bill of Sale Exhibit "E" Escrow Instructions Exhibit "F" Special Escrow Instructions 15.15 Authority. The person(s) executing this Agreement on behalf of each of the parties hereto represent and warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other agreement to which such party is bound. 15.16 Entire Agreement: Amendment. Except as set forth above, this Agreement and the exhibits incorporated herein contain the entire agreement of Buyer and Seller with respect to the matters contained herein, and no prior agreement or understanding pertaining to any such matter shall be effective for any purpose. No provisions of this Agreement may be amended or modified in any manner whatsoever except by an agreement in writing signed by duly authorized officers or representatives of each of the parties hereto. [END -- SIGNATURE PAGE FOLLOWS] 2156/015610-0047 1005843 02 a04/14/09 ' 1 1 038 IN WITNESS WHEREOF, Buyer and Seller each hereby represents that it has read this Agreement, understands it, and hereby executes this Agreement to be effective as of the day and year first written above. ATTEST: Veronica J Montecino, CMC, City Clerk APPROVED AS TO FORM: RUTAN & TUCKER, LLP in M. Katherine Jenson, Agency Counsel SELLER: SUSAN E. SLATER I:1IVAD1 LA QUINTA REDEVELOPMENT AGENCY, a public body corporate and politic am Thomas P. Genovese, Executive Director [end of signatures] 2156/015610-0047 1005843.02 a04/14/09 _ 1 Z" 039 Four Seasons Escrow, Inc., agrees to act as Escrow Holder in accordance with the terms of this Agreement that are applicable to it. 2156/015610-0047 1005843.02 a04/14109 Four Seasons Escrow, Inc. i .n Its: -13- .. r, 040 EXHIBIT "A" LEGAL DESCRIPTION OF PROPERTY APN: 600-030-002 That portion of the Northeast Quarter of Section 29, township 5 South, Range 7 East, in the County of Riverside, State of California, according to official plat thereof, described as follows: To be inserted 2156/015610-0049 1005843 02 a04/14/09 041 EXHIBIT °B" FORM OF GRANT DEED [SEE ATTACHED] 2156/015610-0047 1005843 02 a04/14/09 042 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: LA QUINTA REDEVELOPMENT AGENCY 78-495 Calle Tampico La Quinta, CA 92253 Attn: Executive Director SPACE ABOVE THIS LINE FOR RECORDER'S USE (Exempt from Recordation Fee per Gov. Code § 6103) GRANT DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, Susan E. Slater, a married woman, as her sale and separate property and not as community property, hereby grants to the LA QUINTA REDEVELOPMENT AGENCY, a public body corporate and politic, that certain real property located in the City of La Quinta, County of Riverside, State of California, legally described on Attachment No. 1, which is attached hereto, and incorporated herein by this reference, subject to all matters of record. Dated: 2009 SUSAN E. SLATER, a married woman, as her sole and separate property and not as community property 2156/015610-0047 1005843.02 a04/14/09 2 043 State of California ) County of On before me, (insert name and title of the officer) personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 2156/015610-0047 1005843.02 a04/14/09 -3- 044 ATTACHMENT NO. 1 LEGAL DESCRIPTION OF PROPERTY APN: 600-030-002 That portion of the Northeast Quarter of Section 29, township 5 South, Range 7 East, in the County of Riverside, State of California, according to official plat thereof, described as follows: To be inserted. 2156/01561M047 1005843 02 a04/14/09 Attachment 1 to Grant Deed 045 CERTIFICATE OF ACCEPTANCE THIS IS TO CERTIFY that the interest in real property conveyed by a Grant Deed dated , from Susan E. Slater, a married woman, as her sole and separate property, to the La Quinta Redevelopment Agency, a public body corporate and politic ("Agency"), is hereby accepted by the Agency by the signature of the undersigned agent on behalf of the Agency pursuant to the authority conferred upon him by Resolution of the Agency, adopted on , 2009, and that the Agency, as the Grantee, by its said duly authorized agent, hereby consents to the recordation thereof. DATED: LA QUINTA REDEVELOPMENT AGENCY, public body corporate and politic By: Name: Thomas P. Genovese Executive Director, La Quinta Redevelopment Agency I HEREBY ATTEST to the authenticity of the foregoing signature and to the said adoption of the said Resolution of his general authority to so act and certify that said authority has not been revoked by any subsequent Resolution or order of the Agency. DATED: Veronica J. Montecino, CMC, Agency Secretary, La Quinta Redevelopment Agency 47 10058 3.02.0 /14 Attachment 1 to Grant Deed 1005843.02 a04/14/09 046 EXHIBIT "C" AFFIDAVIT OF NON -FOREIGN ENTITY TO: LA QUINTA REDEVELOPMENT AGENCY ("Buyer") The Internal Revenue Code of 1954 ("Code") (26 U.S.C. Sections 1445, 7701) provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person. To inform the transferee that withholding of tax is not required upon transfer of that certain U.S. real property interest described in Exhibit "A" to the Agreement for Purchase and Sale and Escrow Instructions dated , 2009, and incorporated herein by reference ("Property"), that the undersigned ("Seller") hereby certifies the following: Seller is not a foreign corporation, foreign partnership, foreign trust or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations); and 2. The U.S. taxpayer identification number for Seller is ;and The address for mailing purposes of Seller is: and 4. Seller understands that this certification may be disclosed to the Internal Revenue Service by Buyer and that any false statement contained herein could be punished by fine, imprisonment, or both. Under penalty of perjury, I declare that I have examined this Certification and to the best of my knowledge and belief, it is true, correct, and complete, and I further declare that I have authority to sign this document on behalf of Seller. Dated: 2009 SELLER: SUSAN E.SLATER 21561015610-0047 1005843 02 a04/14/09 047 EXHIBIT "D" BILL OF SALE SUSAN E. SLATER, a married woman, as her sole and separate property and not as community property (the "Seller"), in consideration of good and valuable consideration in hand paid by LA QUINTA REDEVELOPMENT AGENCY (the "Buyer"), the receipt and sufficiency of which is hereby acknowledged, does by these presents release, transfer, bargain, sell, assign and convey unto the Buyer, its successors and assigns, all of the Personal Property as such is defined in that certain Agreement for Purchase and Sale and Escrow Instructions between Seller and Buyer executed 2009, as such may have been amended. Seller does hereby represent and warrant that all such property is free and clear of all security interests, liens and encumbrances other than those assumed by Buyer and in good working order and condition. Seller does hereby covenant with Buyer that it has good right to sell, transfer, convey and assign all of right, title and interest in the same to Buyer and will warrant and defend the same in favor of Buyer, its successors and assigns. IN WITNESS WHEREOF, the Seller has caused these presents to be signed as of this day of 2009. SELLER: SUSAN E. SLATER 21561015610-0047 1005843 02.04/14/09 EXHIBIT "E" ESCROW INSTRUCTIONS [TO BE INSERTED ONCE RECEIVED FROM ESCROW CO] 2156/015610-0047 1005843 02 a04/14/09 .. 04g EXHIBIT "F" SPECIAL ESCROW INSTRUCTIONS PRORATIONS AND/OR ADJUSTMENTS: Escrow Holder is authorized and instructed to prorate and/or make adjustments on the following items as of the close of escrow date: TAXES ON REAL PROPERTY: Prorate taxes, including all tax bill items, except taxes on personal property not conveyed through this escrow, based on the current year's taxes, except between July ls` and the date you are furnished current taxes, based on immediate preceding year's taxes. In each case use the figures furnished you by the title company, without liability on your part as to their correctness. Owner to pay prior to delinquency, supplemental tax bills, and any taxes on personal property not being sold herein, which taxes are a lien on the real property being conveyed and you are not to be concerned herewith. Refund, if any, from the Riverside County Tax Collector, for refund of taxes buyer is being debited for herein, is to be handled outside of escrow. Chicago Title Company, its officers and employees are relieved of all responsibility and liability in connection therewith. QUITCLAIM DEED Escrow Holder is instructed to prepare and transmit a Quitclaim Deed to Seller's spouse for his signature and acknowledgement, relinquishing all right, title and interest in the Property. 21561015610-0047 1005843 02 a04/14/09 050