2011 06 07 RDA60# 4 4 adja
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, JUNE 7, 2011
3:00 P.M. Closed Session / 4:00 P.M. Open Session
Beginning Resolution No. RA 2011-017
CALL TO ORDER
Roll Call:
Agency Board Members: Adolph, Evans, Franklin, Sniff, Chairperson Henderson
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. Persons identified as negotiating parties are not
invited into the Closed Session meeting when acquisition of real property is considered.
1. CONFERENCE WITH THE AGENCY'S REAL PROPERTY NEGOTIATOR,
THOMAS P. GENOVESE, PURSUANT TO GOVERNMENT CODE SECTION
54956.8 CONCERNING POTENTIAL TERMS AND CONDITIONS OF
ACQUISITION AND/OR DISPOSITION OF CERTAIN REAL PROPERTIES
DESCRIBED AS FOLLOWS: APNs / PROPERTY OWNERS / NEGOTIATORS:
773-072-002, 773-072-021 THROUGH 027, RICHARD AND PATRICIA
VARGE
..we 001.
REDEVELOPMENT AGENCY AGENDA 1 JUNE 7, 2011
2. CONFERENCE WITH THE CITY'S REAL PROPERTY NEGOTIATOR, THOMAS
P. GENOVESE, PURSUANT TO GOVERNMENT CODE SECTION 54956.8
CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION
AND/OR DISPOSITION OF CERTAIN REAL PROPERTIES DESCRIBED AS
FOLLOWS: 5-PLEX LOCATED ON THE SOUTH SIDE OF AVENIDA LA
FONDA, APN 770-125-003 AND 5-PLEX LOCATED ON THE SOUTH SIDE
OF MAIN STREET, APN 770-125-004; PROPERTY OWNERS/
NEGOTIATORS: THOMAS H. CASEY, CHAPTER 7 BANKRUPTCY TRUSTEE
AND YESSAYIAN FAMILY LTD. PARTNERSHIP, BUDDY YESSAYIAN
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 MAY 17, 2011
CONSENT CALENDAR
NOTE: Consent Calendar items are considered to be routine in nature and will be approved
by one motion.
1. APPROVAL OF DEMAND REGISTER DATED JUNE 7, 2011
2. ADOPTION OF A RESOLUTION APPROVING A PURCHASE AND SALE
AGREEMENT AMONG THE LA QUINTA REDEVELOPMENT AGENCY,
RICHARD VARGE, AND PATRICE VARGE FOR PROPERTY LOCATED NORTH
OF LA QUINTA COMMUNITY PARK (APNs 773-072-005, 773-072-021
THROUGH 027) AND MAKING CERTAIN FINDINGS PURSUANT TO HEALTH
AND SAFETY CODE SECTION 33445 AND APPROPRIATION OF FUNDS
3. ADOPTION OF RESOLUTIONS APPROVING PURCHASE AND SALE
AGREEMENTS AMONG THE CITY OF LA QUINTA, AND (1) THOMAS H.
CASEY, CHAPTER 7 BANKRUPTCY TRUSTEE FOR 5-PLEX LOCATED ON
THE SOUTH SIDE OF AVENIDA LA FONDA (APN 770-125-003), AND (2)
YESSAYIAN FAMILY LTD. PARTNERSHIP FOR 5-PLEX LOCATED ON THE
SOUTH SIDE OF MAIN STREET (APN 770-124-004) MAKING CERTAIN
002
REDEVELOPMENT AGENCY AGENDA 2 JUNE 7, 2011
FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33445
AND APPROPRIATION OF FUNDS
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 June 21,
2011 commencing with closed session at 3:00 p.m. and open session at 4:00 p.m.
in the City Council Chambers, 78-495 Calls 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 June 7,
2011, was posted on the outside entry to the Council Chamber at 78-495 Calls
Tampico and on the bulletin boards at 51-321 Avenida Bermudas and 78-630
Highway 111, on June 3, 2011.
DATED: June 3, 2011
,5M , Vim - J#�-
VERONICA J. MONTECINO, City Clerk
City of La Quinta, California
Public Notice
Any writings or documents provided to a majorityof 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.
'"M 003
REDEVELOPMENT AGENCY AGENDA 3 JUNE 7, 2011
,
rs,
RDA MEETING DATE: June 7, 2011
ITEM TITLE: Approval of Demand Register Dated
June 7. 2011
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and File the Demand Register Dated
June 7, 2011 of which $5,092,791.16
AGENDA CATEGORY:
BUSINESS SESSION
CONSENT CALENDAR I
STUDY SESSION
PUBLIC HEARING
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
004
COUNCIL/RDA MEETING DATE: June 7, 2011
ITEM TITLE: Adoption of a Resolution Approving a
Purchase and Sale Agreement Among the La
Quinta Redevelopment Agency, Richard Varge and
Patrice Varge for Property Located North of La
Quinta Community Park (APNs: 773-072-005,
773-072-021 through 027) and Making Certain
Findings Pursuant to Health and Safety Code
Section 33445 and Appropriation of Funds
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION: _
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Adopt a Resolution of the Redevelopment Agency approving a Purchase and Sale
Agreement between Richard Varge and Patrice Varge (Attachment 1) subject to
minor modifications approved by the Agency Counsel and its Executive Director,
and making findings that the acquisition of the property conforms to the
requirements of Health and Safety Code Section 33445; and
Appropriate $995,000 from available Capital Projects Fund for Project Area No. 1,
account number 405-0000-290.00-00.
FISCAL IMPLICATIONS:
The Agency will expend up to $995,000 to purchase this property; these expenses
are comprised of the purchase price of $987,624 plus customary closing costs.
The funds for this acquisition are available in the Capital Projects Fund for Project
Area No. 1, account number 405-0000-290.00-00.
BACKGROUND AND OVERVIEW:
The Redevelopment Agency Board has directed staff to pursue negotiations for the
purchase of various properties in the Village to facilitate off-street parking
opportunities, the expansion of recreation opportunities, or the development of
affordable housing. The Varge property is a 34,056 square foot parcel located
north of La Quinta Park and west of the City property the Agency purchased for
affordable housing development (the former Ostrowsky property the Agency
purchased in August 2007) (Attachment 2). Per the Purchase and Sale
Agreement, the City of La Quinta would purchase this property for a cost of
$987,624 or $29.00 per square foot, plus customary closing costs. The
Redevelopment Agency will be funding the acquisition and customary closing
costs. The rationale for purchasing this property is to preserve vacant land for
possible public parking or recreational or affordable housing uses. Pursuant to
Health and Safety Code Section 33445, the Agency may fund the cost to acquire
land and construct public improvements if the City Council and Agency Board make
findings that support this expenditure, and if the City Council consents to having
the Agency expend these funds. The acquisition of this property will eliminate
blight in Project Area No. 1 by facilitating the expansion of recreation uses, or by
providing additional off-street parking opportunities, or facilitating the development
of affordable housing.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1. Adopt a Resolution of the Redevelopment Agency approving a Purchase and
Sale Agreement between Richard and Patrice Verges subject to minor
modifications approved by the Agency Counsel and its Executive Director,
and making findings that the acquisition of the property conforms to the
requirements of Health and Safety Code Section 33445; and
2. Appropriate $995,000 from available Capital Projects Fund for Project Area
No. 1, account number 405-0000-290.00-00; or
3. Do not adopt a Resolution of the Redevelopment Agency approving the
Purchase and Sale Agreements and do not appropriate funds for acquisition
and closing costs; or
4. Provide staff with alternative direction.
Respectfully submitted,
Debbie Pell
Economic Development Project Manager
( Apprgved for subrpissio by:
`Thomas P. Genovese
Executive Director "
Attachments: 1. Purchase and Sale Agreement
2. Property Site Map
006
RESOLUTION NO. RA 2011-
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY APPROVING AN AGREEMENT FOR PURCHASE
AND SALE BY AND BETWEEN THE AGENCY, RICHARD
VARGt AND PATRICE VARGE, MAKING CERTAIN
FINDINGS PURSUANT TO HEALTH AND SAFETY CODE
SECTION 33445 WITH RESPECT TO THE AGENCY'S
EXPENDITURE AND ALLOCATING $995,000 TO FUND
THE ACQUISITION
WHEREAS, the La Quinta Redevelopment Agency ("Agency") is a redevelop-
ment agency organized and existing under the California Community
Redevelopment Law ("Health & Safety Code § 33000 et seq.) ("CRL") and has
been authorized to transact business and exercise the powers of a redevelopment
agency pursuant to action of the City Council of the City of La Quinta ("City
Council" or "City," as applicable); and
WHEREAS, pursuant to the CRL, the City Council approved and adopted the
Redevelopment Plan ("Redevelopment Plan") for La Quinta Project Area No. 1
("Project Area") on November 29, 1983, by Ordinance No. 43; and
WHEREAS, Agency staff has negotiated a Purchase and Sale Agreement
with Richard Varga, and Richard and Patrice Varge for real property located north
of the La Quinta Community Park ("Property"), to facilitate off-street parking
opportunities, the expansion of recreation opportunities, or the development of
affordable housing (collectively, the "Infrastructure Improvements"), to facilitate
access to the Village; and
WHEREAS, the Property is located within the Project Area; and
WHEREAS, the Agreement would provide for the Agency's expenditure of
Nine Hundred Eighty -Seven Thousand Six Hundred Twenty -Four Dollars ($987,624)
plus closing costs to acquire the Property; and
WHEREAS, with the legislative body's consent and the satisfaction of certain
specified requirements set forth in Health and Safety Code Section 33445, the CRL
authorizes redevelopment agencies to expend tax increment funds to acquire real
property for, and to fund the cost of the installation and construction of, publicly
owned buildings, facilities, and improvements; and
WHEREAS, the Agreement are in accordance with the Redevelopment Plan
and is of benefit to the Project Area and the City of La Quinta; and
007
Resolution No. RA 2011-
Vargo Property Purchase and Sale Agreement
Adopted: June 7, 2011
Page 2
WHEREAS, the Agency's financial contribution pursuant to the Agreements
is necessary to effectuate the purposes of the Redevelopment Plan;
NOW THEREFORE, BE IT RESOLVED by the La Quinta Redevelopment
Agency, as follows:
SECTION 1. The above recitations are true and correct.
SECTION 2. Pursuant to Health and Safety Code Section 33445(a), the
La Quinta Redevelopment Agency finds and determines that:
A. The acquisition of land pursuant to the Agreement for the future
development of the Infrastructure Improvements is of benefit to the
Project Area, by helping to eliminate blight within the Project Area, in
that the Infrastructure Improvements will consist of public
infrastructure improvements, and the Redevelopment Plan provides for
the elimination, and prevention of the spread, of blight and blighting
influences through the installation, construction, or re -construction of
streets, utilities, and other public facilities and improvements.
B. No other reasonable means of financing the purchase of the Property
or the Infrastructure Improvements are available to the community, for
the following reasons: (i) City monies are dedicated to critical police,
fire, and other necessary expenditures, including other capital
improvement projects; (ii) the only practical means of paying for the
Property and Infrastructure Improvements is to use Agency funding;
(iii) without Agency funding, the Property could not be acquired and
the Infrastructure Improvements would not be completed, all to the
detriment of the Project Area.
C. The acquisition of the Property and the future installation of the
Infrastructure Improvements are consistent with the Agency's
implementation plan adopted pursuant to Health and Safety Code
Section 33490 ("Implementation Plan"), in that improving public
infrastructure and facilities within the Project Area are goals set forth
in the Implementation Plan.
SECTION 3. The Agency's expenditure for the Property for future
development with the Infrastructure Improvements is necessary to effectuate the
purposes of the Redevelopment Plan and is in the best interests of the City of La
Quinta.
008
Resolution No. RA 2011-
Vargo Property Purchase and Sale Agreement
Adopted: June 7, 2011
Page 3
SECTION 4. The Agency authorizes the appropriation and expenditure of up
to $995,000 to close the transaction contemplated by the Purchase and Sale
Agreement from Project Area No. 1 Capital Projects Fund (Account Number 405-
0000-290.00-00).
SECTION 5. The Executive Director is hereby authorized to sign the
Purchase and Sale Agreement subject to such minor modifications approved by the
Agency Counsel and the Executive Director, and to sign such other documents and
take such other actions as to carry out the terms of the Agreement.
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta
Redevelopment Agency held on this 7th day of June, 2011, by the following vote
to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
TERRY HENDERSON, Agency Chair
La Quinta Redevelopment Agency
r-11i0RU
VERONICA J. MONTECINO, CMC, AGENCY SECRETARY
La Quinta Redevelopment Agency
(City Seal)
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
La Quinta Redevelopment Agency
009
ATTACHMENT 1
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 _, 2011 ("Effective Date") by and between (i)
RICHARD VARGE, A MARRIED MAN AS HIS SOLE AND SEPARATE PROPERTY, and
RICHARD VARGE AND PATRICE VARGE, HUSBAND AND WIFE AS TENANTS IN
COMMON (jointly, severally, and collectively, "Seller"), and (ii) the LA QUINTA
REDEVELOPMENT AGENCY, a public body, corporate and politic ("Buyer").
RECITALS:
A. Seller is the owner of that certain real property located in the City of La Quinta,
County of Riverside, State of California, more particularly described in the legal description
attached hereto as Exhibit "A" (the "Property").
B. Buyer desires to purchase the Property from Seller and Seller desires to sell the
Property to Buyer, on the terms and conditions set forth herein.
AGREEMENT:
NOW, THEREFORE, in consideration of the foregoing recitals and mutual covenants
herein contained, the parties hereto agree as follows:
1. f1i1;2CI_LASf.1'i21C1'.;.
Subject to the terms. of this Agreement, Buyer hereby agrees to
purchase the Property from Seller, with title to the Property to be placed in the name of the City
of La Quinta, a California municipal corporation and charter city ("City"), and Seller agrees to
sell the Property to Buyer, for the purchase price of NINE HUNDRED EIGHTY-SEVEN
THOUSAND SIX HUNDRED TWENTY-FOUR DOLLARS ($987,624) ("Purchase Price").
1.2 pay_mlelu,of 1'ilruh',L,Z yicc. On or before 5:00 p.m. on the business day preceding
the "Closing Date" (as that term is defined in Section 4.1) or such earlier time as required by
"Escrow Holder" in order to close "Escrow" (as those terms are defined in Section 2.1) on the
Closing Date, Buyer shall deposit with Escrow Holder in "Good Funds" (as used in this
Agreement, the term "Good Funds" shall mean a confirmed wire transfer of immediately
available funds, cashier's or certified check drawn on or issued by the office of a financial
institution located in Riverside County, or cash) the Purchase Price less the "Independent
Contract Consideration" (as that term is defined in Section 1.3 below), and such additional funds
as may be required to meet Buyer's portion of the closing costs as hereinafter provided.
1.3 Independent ,Con_u.act_Cc? skier?Ii l3. Within three (3) business days following
the later of the Effective Date and the date of the "Opening of Escrow," (as that term is defined
in Section 2.1 below) Buyer shall deposit into Escrow the sum of ONE HUNDRED DOLLARS
8821015618A046 -1-
1175262.2 PMI1
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($100) (the "Independent Contract Consideration"). Seller and Buyer agree that the Independent
Contract Consideration has been bargained for as consideration for Seller's execution and
delivery of this Agreement and Buyer's right to inspect the Property pursuant to this Agreement.
The Independent Contract Consideration is in addition to and independent of any other
consideration or payment provided for in this Agreement and is non-refundable in all events.
The Independent Contract Consideration shall be applicable to the Purchase Price at Closing.
2, l_!%C MAV.
2.1 Opening oIcrow, 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 Foresite Escrow ("Escrow Holder") at its office located at
41995 Boardwalk, #G2, Palm Desert, CA 92211-9065. 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.
2.2 lscr(_)n uitctirnis. 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.
. OI,.iI:-1)11,10I 1C1:. As used herein, the teen "Due Diligence Period" shall refer to a
period of time to expire upon the date that is thirty (30) days after the Effective Date. Buyer's
obligation to consummate the transactions contemplated by this Agreement is subject to and
conditioned upon Buyer's approval, deemed approval or waiver of the right to approve of the
following contingencies set forth in this Section 3 (collectively, the "Contingencies"):
3.1 l:l;Cl,l_tiii."I 1_I;RS. Seller shall deliver to Buyer, within five (5) days after the
Effective Date of this Agreement, a preliminary title report prepared by Lawyers Title ("Title
Company") at its office located at 47-040 Washington Street, La Quinta, CA 92253 describing
the state of title of the Property together with copies of all underlying documents (collectively,
the "Preliminary Title Report"). Buyer may, at its sole cost and expense, obtain a current survey
of the Property (the "Survey") provided it does so within ten (10) days of the Effective Date.
Notwithstanding anything herein to the contrary, Seller shall be obligated to remove all monetary
encumbrances against the Property excluding non -delinquent real property taxes and
assessments. 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) business days after the later of its
receipt of the Preliminary Title Report or (ii) its receipt of the Survey if ordered within the time
period set forth above ("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 it 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
882/015610-0046
1175262.2 M411
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obtained). Seller shall have a period of five (5) business 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.
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.
h.iioginciltal (<ndition. Buyer shall have access to the Property, as described
in this Section 3.2, in order to permit Buyer or its directors, engineers, analysts, officers,
employees, agents, contractors, representatives, attorneys or advisors (collectively, the "Buyer
Representatives") to investigate the Property.
.2,1 During the Due Diligence Period, Seller shall permit Buyer and Buyer
Representatives, at the sole cost and expense of Buyer, to conduct physical inspections of the
Property, including the site work, soil, subsurface soils, drainage, seismic and other geological
and topographical matters, location of asbestos, toxic substances, hazardous materials or wastes,
if any, and any other investigations as Buyer deems prudent with respect to the physical
condition of the Property in order to determine the Property's suitability for Buyer's intended
purpose: In no event shall Buyer conduct any intrusive testing procedures on the Property
without the prior written consent of Seller, which consent shall not be unreasonably withheld.
Such investigations may be made by Buyer and/or Buyer Representatives during any normal
business hours. Seller shall cooperate to assist Buyer in completing such inspections and special
investigations at no cost or expense to Seller. Such inspections and investigations shall be
conducted only upon no less than twenty-four (24) hours' notice to Seller and shall be conducted
at such times and in such a manner as to minimize any disruption to the Property. Seller shall
have the right, but not the obligation, to accompany Buyer during such investigations and/or
inspections.
3.2.21 As a condition to any such entry, Buyer shall (i) conduct all work or
studies in a diligent, expeditious and safe manner and not allow any dangerous or hazardous
conditions to occur on the Property during or after such investigation; (ii) comply with all
applicable laws and governmental regulations; (iii) keep the Property free and clear of all
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materialmen's liens, lis pendens and other liens arising out of the entry and work performed
under this paragraph; (iv) maintain or assure maintenance of workers' compensation'insurance
(or state approved self-insurance) on all persons entering the property in the amounts required by
the State of California; (v) provide to Seller prior to initial entry a certificate of insurance
evidencing that Buyer and/or the persons entering the Property have procured and has in effect
an all-risk public liability insurance policy meeting the following requirements: (1) the
insurance shall be written on a per occurrence and not claims -made basis; (2) the amount of
insurance shall be a combined single limit of not less than One Million Dollars ($1,000,000.00)
with a deductible or self -insured retention amount of not more than One Hundred Thousand
Dollars ($100,000); (3) the policy shall name or be endorsed to Seller as an additional insured;
(4) the insurance shall not contain any special limitations on the scope of protection afforded to
Seller; (5) the policy shall not be canceled by the insurer or Buyer unless there is a minimum of
thirty (30) days prior written notice to Seller; (6) the insurer shall waive subrogation rights
against the Seller; (7) the insurance shall be primary insurance and not contributory with any
insurance Seller may have; and (8) the insurance shall apply separately to each insured against
whom a claim is made or suit is brought, except with respect to the limits of the insurer's
liability; and (vi) following Buyer's entry, repair any and all damage to the Property caused by
such inspections or investigations in a timely manner.
.;>. Buyer shall promptly pay and discharge all demands for payment relating
to Buyer's entry on and investigation of the Property and take all other steps to avoid the
assertion of claims of lien against the Property. In the event a claim of lien is recorded by reason
of Buyer's entry on the Property, Buyer, within twenty (20) days of such recordation, shall either
(i) record or deliver a surety bond sufficient to release such claim or lien in accordance with
applicable law; or 00 provide Seller with such other assurance as Seller may require for the
payment of the claim or lien. Seller may elect to record and post notices of non -responsibility
from time to time on and about the Property.
3.2. 1 Prior to expiration of the Due Diligence Period, if Buyer disapproves of
the physical or environmental condition of the Property and, as a result, does not wish to proceed
with purchasing the Property, Buyer shall notify Seller in writing of Buyer's election to
terminate the Escrow and this Agreement. Buyer's approval or disapproval of the physical and
environmental conditions of the Property may be granted or withheld in Buyer's sole and
absolute discretion. In the event Buyer terminates this Agreement pursuant to this Section,
Buyer and Seller shall be relieved of all further liability under this Agreement. Buyer's
inspections and investigations of the Property shall be conducted upon the terms and conditions
set forth in this Agreement.
Provided that all of the conditions of this
Agreement precedent to the "Close of Escrow" (as hereinafter defined) have been satisfied (or
waived by the appropriate party) prior to or on the Closing Date, the Closing of this transaction
for the sale and purchase of the Property shall take place on the date which is five (5) days after
the date on which all of "Buyer's Conditions to Closing" and all of "Seller's Conditions to
Closing" (as those terms are defined in Section 8) have been satisfied (or waived by the
appropriate party) ("Closing Date"). The terms "Close of Escrow" and the "Closing" are used
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herein to mean the time Seller's grant deed conveying fee title to the Property to the City 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 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 patty so elects to terminate
this Agreement and the Escrow, Escrow Holder shall close the Escrow as soon as possible.
4.2 1Uc lmh!61x_r._ elcil_c of } unds_:jnd 1.)ocum nts.
=1.2.1 Escrow Holder is directed, on the Closing Date, to record in the Official
Records, the following documents in the order listed: (i) the grant deed in the form of the
attached Exhibit "B" transferring title to the Property to the City ("Grant Deed"); and (ii) such
other and further documents as may be directed jointly by Buyer and Seller.
4.2.2 Upon the Closing, Escrow Holder shall deliver (i) the Purchase Price, less
any of Seller's closing costs, to Seller, and (ii) conformed copies of all recorded documents to
both Buyer and Seller.
1)l l,l.yl Ill (.)l'_000_li�it \ I S QJ IIt_F 1 O1i l t,;YF R stiI; 1 1_l.a .
5.
5.1 i1.1_vcr`,s C71�1 .itions, 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 less the Independent Contract Consideration; 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.
5.2 Seller O[?1L itioii . Seller agrees that on or before 5:00 p.m. of the last business
day immediately preceding the Closing Date, Seller shall depositor cause to be deposited with
Escrow Holder each of the following:
(a) a quitclaim deed executed and acknowledged by Patrice Varge
quitclaiming all of her interests, if any, in the real properties owned in fee by Richard Varge, a
married man as his sole and separate property, to Richard Varge, a married man as his sole and
separate property;
(b) any other documents executed and acknowledged by Seller, or any of the
individuals comprising Seller, determined necessary by the Title Officer to transfer marketable
fee title to the City;
(c) the executed and acknowledged Grant Deed;
(d) a Certificate of Non -Foreign Status (the "Non -Foreign Affidavit")
executed and acknowledged by Seller in the form attached hereto as Exhibit "C"; and
882R)15610-0046
1175262.2 VMI I
-5-
014
(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.
6. I I:II,aj_NtiIA A\G-I.: J'Ol ](_).'.:
6.1 _Title„I'olicv. 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, with liability in the amount of the Purchase Price, subject to the following:
(a) non -delinquent real property taxes and assessments;
(b) title exceptions approved or deemed approved by Buyer pursuant to
Section 3 above;
(c) any other exceptions approved by Buyer; and
(d) the standard printed conditions and exceptions contained in the CLTA
standard owner's policy of title insurance regularly issued by the Title Company.
6.1 Yavmcm _I'ul;:fjtl.-!' licy. Seller 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, request a CLTA extended
policy of title insurance. Buyer shall pay the difference for the charges between the premium for
the extended coverage title policy and the premium for the standard coverage title policy that
Seller is responsible for hereunder. Buyer shall also pay for the survey, if applicable.
7 121:_\I__ PRC)1'l;;ll1'Y 7;;\\I_S. Upon Buyer's acquisition of fee title to the Property, the
Property will be exempt from the payment of property taxes and assessments due to Buyer's
status as a public agency. Seller shall be responsible for paying for all property taxes or
assessments assessed against the Property after the Closing for any period prior to the Closing.
C1 (OSN.C....
S.l Ccarxli.licitisP,.rc_c:ecicilt_to_Bu}vr_; C)hI zatittn,;, The obligations of Buyer under this
ose the Escrow shall be subject to the satisfaction or
Agreement to purchase the Property and cl
signed written waiver by Buyer of each and all of the following conditions precedent
(collectively, "Buyer's Conditions to Closing"):
(e) Buyer shall have approved the condition of the Property, in accordance
with Section 3.2 hereof;
(a) on the Closing Date, the Title Company
issue the Title Policy pursuant to Section 6 above insuring
vested in Buyer;
882/015610-0046
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-6-
shall be irrevocably committed to
fee title to the Property as being
015
(b) Escrow Holder holds all instruments 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.
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.
8.2 Conditions Prcrcil ,nt iu,_Seticr'_s.:_(>lthoations. 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 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;
(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;
(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.
9 l'0551;._SSIQ\. Possession of the Property shall be delivered by Seller to Buyer on the
Closing Date.
1()1 hll-S-: s..C'o t;. Buyer shall pay the following costs:
(a) fifty percent (50%) of Escrow Holder's escrow fee;
(b) Buyer's own attorney's fees incurred in connection with this Agreement
and the transactions contemplated hereby;
882/015610-0046
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*00 016
(c) fifty percent (50%) of all the charges for recording the Grant Deed, if any;
(d) the premium difference between the CLTA extended policy of title
insurance and the CLTA standard coverage policy of title insurance if Buyer requests an
extended policy; and
(e) any additional title insurance coverages Seller is not required to pay for
plus any title endorsements requested by Buyer.
lU.? Rcij_el.;s.costs. Seller shall pay:
(a) fifty percent (50%) of the Escrow Holder's escrow fee;
(b) Seller's own attorney's fees in connection with this Agreement and the
transactions contemplated hereby;
(c) Any documentary transfer taxes associated with the conveyance;
(d) fifty percent (50%) of all the charges for recording the Grant Deed, if any;
and
(e) the premium for the Title Policy that Seller is required to pay pursuant to
this Agreement.
1 I. 1\_"-1yll 1Ca IJU . Seller agrees to indemnify, defend and hold Buyer and Buyer's
officials, officers, agents, representatives, and employees harmless from and against any claim,
action, suit, proceeding, loss, cost, damage, liability, deficiency, fine, penalty, punitive damage,
or expense (including, without limitation, attorneys' fees), resulting from, arising out of, or based
upon (i) the presence, release, use, generation, discharge, storage or disposal of any "Hazardous
Materials" (as that term is defined below) on, under, in or about, or the transportation of any such
Hazardous Materials to or from, the Property which occurred prior to the Closing, or (ii) the
violation, or alleged violation, of any statute, ordinance, order, rule, regulation, permit, judgment
or license relating to the use, generation, release, discharge, storage, disposal or transportation of
Hazardous Materials on, under, in or about, to or from, the Property which occurred prior to the
Closing. This indemnity shall include, without limitation, any damage, liability, fine, penalty,
cost or expense arising from or out of any claim, action, suit or proceeding for personal injury
(including sickness, disease or death), tangible or intangible property damage, compensation for
lost wages, business income, profits or Other economic loss, damage to the natural resource or
the environment, nuisance, contamination, leak, spill, release or other adverse effect on the
e
environment (any of the above, a "Claim") to the extent resulting from, arising out of, or based
upon any matter set forth in subclauses (i) and (ii) hereinabove. At the request of the Seller, the
Buyer shall cooperate with and assist the Seller in its defense of any such claim, action, suit,
proceeding, loss, cost, damage, liability, deficiency, fine, penalty, punitive damage, or expense;
provided that the Buyer shall not be obligated to incur any expense in connection with such
cooperation or assistance. Seller's obligation to indemnify, defend and hold Buyer harmless
under this Section 11 shall not apply to any Claim resulting from, arising out of or based upon
any inspection or investigation of the Property by Buyer Representatives pursuant to Section 2.2
hereof, and Buyer agrees to indemnify, defend and hold Seller harmless from any such Claim in
882/015610.0046
1175262.2 PM I I
.. 017
the same manner and to the same extent that Seller is required to indemnify, defend and hold
Buyer harmless under the provisions of this Section 11.
For purposes of this Agreement, the term "Hazardous Materials" means any substance,
material, or waste which is, or becomes, regulated by any local governmental authority, the State
of California, or the United States Government, including, but not limited to, any material or
substance which is (i) defined as a "hazardous waste," "extremely hazardous waste," of
"restricted hazardous waste" under Section 25115, 25117 or 25122.7, or listed pursuant to
Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous
Waste Control Law), (ii) defined as a "hazardous substance" under Section 25316 of the
California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter -Presley -Tanner
Hazardous Substance Account Act), (iii) defined as a "hazardous material," "hazardous
substance," or "hazardous waste" under Section 25501 of the California Health and Safety Code,
Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv)
defined as a "hazardous substance" under Section 25281 of the California Health and Safety
Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum,
(vi) friable asbestos, (vii) polychlorinated biphenyls, (viii) methyl tertiary butyl ether, (ix) listed
under Article 9 or defined as "hazardous" or "extremely hazardous" pursuant to Article 11 of
Title 22 of the California Administrative Code, Division 4, Chapter 20, (x) designated as
"hazardous substances pursuant to Section 311 of the Clean Water Act (33 U.S.C. §1317), (xi)
defined as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and
Recovery Act, 42 U.S.C. §6901 et seq.(42 U.S.C. §6903) or (xii) defined as "hazardous
substances" pursuant to Section 101 of the Comprehensive Environmental Response,
Compensation, and Liability Act, 42 U.S.C. §9601 et seq.
12. COND1 INA IJON. In the event that, prior to the Close of Escrow, any governmental
entity 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 Seiler shall promptly meet and
confer in good faith to evaluate the effect of such action on the purposes of this Agreement and
following such meeting either Buyer or Seller may terminate this Agreement.
I mi1tica.J.'s,z1\l Ol,;i...
1 .1 Assii�im:iopt. This Agreement shall be binding upon and shall inure to the benefit
of Buyer and Seller and their respective heirs, personal representatives, successor's and assigns.
Neither party to this Agreement may assign this Agreement or any interest or right hereunder or
under the Escrow without the prior written consent and approval of the other party, which
consent and approval may be withheld in the sole and absolute discretion of either party. 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.
13.2 ;Attorneys Pecs. In the event of any action between Buyer and Seller seeking
enforcement of any of the terms and conditions to this Agreement or the Escrow or otherwise in
connection with the Property, the prevailing parry in such action shall be awarded, in addition to
damages, injunctive or other relief, its reasonable costs and expenses, including without
limitation its expert witness fees and reasonable attorney's fees.
882/015610-0046
11752622 Pn1I I
In
13.3 _Notices. All notices under this Agreement shall be effective upon personal
delivery, upon delivery by reputable delivery or courier service that provides a receipt with the
date and time of delivery, 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: Richard and Patrice Varge
P.O. Box 451
La Quinta, CA 92247
To Buyer: Notices Delivered by U.S. Mail:
La Quints Redevelopment Agency
P.O. Box 1504
La Quints, CA 92247
Attn: Executive Director
Notices Delivered Personally or by Courier:
La Quints Redevelopment Agency
78-495 Calle Tampico
La Quints, CA 92253
Attn: Executive Director
Copy to: Rutan & Tucker, LLP
611 Anton Boulevard, Suite 1400
Costa Mesa, California 92628-1950
Attn: M. Katherine Jenson, Esq.
13.4 Fair Meaning. This Agreement shall be construed according to its fair meaning
and as if prepared by both parties hereto.
13.5 ljgtpdngs. 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.
13.6 Choice of Lawn LitigatiQn 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 Superior Court 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.
13.7 il of Saver 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.
8821015610-0046 -1 O_
11752622 PM I
.*r 019
13.8 Gender�Aumber. 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.
13.9 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.
13.10 Time of Essence. Time is of the essence of this Agreement and of each and every
term and provision hereof, it being understood that the parties hereto have specifically negotiated
the dates for the completion of each obligation herein.
13.11 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.
13.12 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.
13.13 Duplicate Orieinals. This Agreement may be executed in any number of
duplicate originals, all of which shall be of equal legal force and effect.
13.14 Severabilit_y. 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.
13.15 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
13.16 Covenants of Seller. Seller agrees that during the period between the Effective
Date of this Agreement and the Closing Date:
(f) 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);
982JOI5610-0046
11752622 PMII
'00 020
(g) Seller shall not convey, grant, lease, assign, mortgage, hypothecate,
encumber, or otherwise transfer (on or off record) the Property or any interest therein;
(h) Prior to Closing, Seller shall maintain Seller's existing insurance, if any,
on the Property; and
(i) 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.
13.17 Representations and Warranties.
(a) Buyer represents and warrants to Seller that as of the Effective Date of this
Agreement, and subject to the disclosures set forth below in this subsection: (i) Buyer has all
requisite right, power, legal capacity, and authority to enter into and perform its obligations
under this Agreement; (ii) any persons executing this Agreement on behalf of Buyer are
authorized to do so; (iii) the execution of this Agreement by Buyer does not violate any provision
of any other agreement to which Buyer is a party; and (iv) except as may be specifically set forth
in this Agreement, no approvals or consents not heretofore obtained by Buyer are necessary in
connection with the execution of this Agreement by Buyer or with the performance by Buyer of
its obligations hereunder. Buyer hereby discloses to Seller that pursuant to draft legislation to
implement a proposal made by the Governor of the State of California on January 10, 2011,
agreements entered into by redevelopment agencies on and after January 1, 2011, may be subject
to challenge for two years from the effective date of the legislation, should such legislation be
adopted.
(b) Seller represents and warrants to Buyer that: (i) Seller has all requisite
right, power, legal capacity, and authority to enter into and perform its obligations under this
Agreement; (ii) any persons executing this Agreement on behalf of Seller are authorized to do
so; (iii) the execution of this Agreement by Seller does not violate any provision of any other
agreement to which Seller is a party; and (iv) except as may be specifically set forth in this
Agreement, no approvals or consents not heretofore obtained by Seller are necessary in
connection with the execution of this Agreement by Seller or with the performance by Seller of
its obligations hereunder.
13.18 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]
88MI5610-0046 - -12-
1175262.2 PMI 1
I.+ 021
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.
98210156 1 "046
1175262.2 I'M 1 I
"Seller"
RICHARD VARGE, A MARRIED MAN AS
HIS SOLE AND SEPARATE PROPERTY,
and RICHARD VARGE AND PATRICE
VARGE, HUSBAND AND WIFE AS
TENANTS IN COMMON
RICHARD GE, A MARIE MAIN' AS
T PETYHIS EPAO�
-By
Rich d Varge
RICHARD VARGE AND PATRICE VARGE,
[signatures continued on next page]
-13-
.« 022
ATTEST:
Veronica J. Montecino, CMC City Clerk
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
Un
M. Katherine Jenson, Agency Counsel
"Buyer"
LA QUINTA REDEVELOPMENT AGENCY,
a public body, corporate and politic
By:
[end of signatures]
Executive Director
882/015610-0046
1175262.2 PM 11 -14- 02
'PM.
Foresite Escrow agrees to act as Escrow Holder in accordance with the terms of this Agreement.
882l015610-0046
1175262.2 PM 11
FORESITE ESCROW
By: _
Name:
Its:
-15-
**a 0 2' 4
EXHIBIT "A"
LEGAL DESCRIPTION OF PROPERTY
The land referred to is situated in the State of California, County of Riverside, City of
La Quinta, and is described as follows:
Lots 1-8 of Block 128, Unit 14, Santa Carmelita at Vale La Quinta, in the City of
La Quinta, County of Riverside, State of California, as per map recorded in Book
18, Page(s) 82 of Miscellaneous Maps, in the office of the County Recorder of
said County.
882/015610.0046 EXHIBIT "A"
1175262.2 PM)1
EXHIBIT "B"
FORM OF GRANT DEED
[SEE FOLLOWING PAGES]
88M15610-0046 EXHIBIT `B"
1115262.2 PM I I
'"" 0 2 6
RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
CITY OF LA QUINTA
78-495 Calle Tampico
La Quinta, CA 92253
Attn: City Manager
SPACE ABOVE THIS LINE FOR RECORDER'S USE
(Exempt from Recordation Fee per Gov. Code § 27383)
GRANT DEED
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
RICHARD VARGE, A MARRIED MAN AS HIS SOLE AND SEPARATE PROPERTY, and
RICHARD VARGE AND PATRICE VARGE, HUSBAND AND WIFE AS TENANTS IN
COMMON (jointly, severally, and collectively, the "Grantor"), hereby grants to the CITY OF
LA QUINTA, a California municipal corporation and charter city ("Grantee"), that certain real
property ("Property") located in the City of La Quinta, County of Riverside, State of California,
legally described as follows, subject to all matters of record:
Lots 1-8 of Block 128, Unit 14, Santa Carmelite at Vale La Quinta, in the City of
La Quinta, County of Riverside, State of California, as per map recorded in Book
18, Page(s) 82 of Miscellaneous Maps, in the office of the County Recorder of
said County.
"Grantor"
RICHARD VARGE, A MARRIED MAN AS
HIS SOLE AND SEPARATE PROPERTY,
and RICHARD VARGE AND PATRICE
VARGE„ HUSBAND AND WIFE AS
TENANTS IN COMMON
RICHARD VARGE, A MARRIED MAN AS
HIS SOLE AND SEPARATE PROPETY
By
Richard Varge
RICHARD VARGE AND PATRICE VARGE,
HUSBAND AND WIFE AS JOINT
TENANTS
By
Richard Varge
Patrice Varge
1821015610.OU46
11752622 PM I I
.'IS. . 027
GRANTEE'S ACCEPTANCE
This is to certify that the interest in real property conveyed by the Grant Deed dated
, 2011, from RICHARD VARGE, A MARRIED MAN AS HIS SOLE
AND SEPARATE PROPERTY, and RICHARD VARGE AND PATRICE VARGE,
HUSBAND AND WIFE AS TENANTS IN COMMON (jointly, severally, and collectively, the
"Grantor"), to the CITY OF LA QUINTA, a California municipal corporation and charter city
("City"), is hereby accepted by the undersigned officer or agent on behalf of the City pursuant to
authority conferred by Resolution No. 2002-186, adopted by the City Council on June 18, 2002,
and the City consents to recordation thereof by its duly authorized officer.
Dated:
By:
City Manager
9811015610-0046 2
1175262.2 I'MI I O L
�N1�
State of California
County of Riverside
On before me,
(insert name and title of theofficer)
Notary Public, 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/i)er/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)
State of California
County of Riverside
On ' , before me, >
(insert name and title of the officer)
Notary Public, 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)
I82MI 56IM046
1175262z Pell 3 'wr, 029
EXHIBIT "C"
FORM OF AFFIDAVIT OF NON -FOREIGN ENTITY
[SEE FOLLOWING PAGE]
882/015610-0046 EXHIBIT "C"
1175262.2 PM11 C 3 0
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 2011, and incorporated herein by reference
("Property"), that the undersigned ("Seller") hereby certifies the following:
I. 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
3. 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 penalties 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.
RICHARD VARGE, A MARRIED MAN AS
HIS SOLE AND SEPARATE PROPERTY,
and RICHARD VARGE AND PATRICE
VARGE, HUSBAND AND WIFE AS
TENANTS IN COMMON
VARGE, A MAiWED MAN AS
3
RICHARD VARGE AND PATRICE VARGE,
88210156104046
1175262.2 PMl I
•�p � 3
"—HMENT 2
❑I
11
COUNCIL/RDA MEETING DATE: June 7, 2011
ITEM TITLE: Adoption of Resolutions Approving
Purchase and Sale Agreements Among the City of La
Quinta, and (1) Thomas H. Casey, Chapter 7
Bankruptcy Trustee for 5-Plex Located on the South
Side of Avenida La Fonda (APN 770-125-003), and (2)
Yessayian Family Ltd. Partnership for 5-Plex Located
on the South Side of Main Street (APN: 770-124-004),
and Making Certain Findings Pursuant to Health and
Safety Code Section 33445 and Appropriation of
Funds
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION: ?_
CONSENT CALENDAR: 3
611LIJ_!)W=61CO) a
PUBLIC HEARING:
Adopt the Resolutions approving the Purchase and Sale Agreements between the City
of La Quinta and (1) Thomas H. Casey, Chapter 7 Bankruptcy Trustee for 5-Plex
Located on the South Side of Avenida La Fonda (APN: 770-125-003), and (2)
Yessayian Family Ltd. Partnership for 5-Plex Located on the South Side of Main Street
(APN: 770-124-004), and Making Certain Findings Pursuant to Health and Safety Code
Section 33445; and
Appropriate 012,500 from available Capital Project Funds for Project Area No. 1,
account number 405-000-290.00-00.
FISCAL IMPLICATIONS:
The Agency will expend approximately $812,500, including land costs of $677,500;
estimated closing costs of $10,000; estimated relocation costs of $80,000; and
estimated demolition costs of $45,000. The funds are available in the Capital Projects
Fund for Project Area No. 1, account number 405-0000-290.00-00.
BACKGROUND AND OVERVIEW:
The Agency Board has directed staff to pursue negotiations for the purchase of various
properties in the Village which could improve public access to and within the Village
(Attachment 1).
.'•,, 033
The Fischer 5-Plex is located on the south side of Avenida La Fonda and had been in
foreclosure with the Bankruptcy Court. This apartment complex has two units
occupied. The remaining three units are uninhabitable due to the owner's inability to
complete a rehabilitation project. Acquiring the Fischer 5-plex would allow the
Redevelopment Agency to relocate the tenants, and demolish the blighted building.
The property is currently listed for sale at $275,000. The sales price set by the
Trustee is $275,000, or $17.00 per square foot (Attachment 2 ).
The Yessayian 5-Plex is located on the south side of Main Street (formerly Avenida
Buena Ventura), west of the Library. Upon purchase of this parcel, the City will own
the majority of the block (exception of General Telephone parcel and Old Town parking
lot). The 5-plex apartment building has two tenants. All the remaining units are
unoccupied. The building is in fair condition. The proposed purchase price is $28.50
per square foot, or $402,500 (Attachment 3).
The average purchase price for both properties combined is $22 per square foot. The
Agency recently acquired the Fischer 4-Plex on the north side of Avenida La Fonda,
and the Varge property, for $29 per square foot. The purchase prices are in line with
recent appraised values.
Pursuant to Health and Safety Code Section 33445, the Agency may fund the cost to
acquire land and construct public improvements if the City Council and Agency Board
make certain findings that support this expenditure, and if the City Council consents to
having the Agency expend these funds. The acquisition of this property will eliminate
blight in Project Area No. 1 by facilitating the expansion of recreation uses, or by
providing additional off-street parking opportunities, or facilitating the development of
affordable housing. The acquisition of the properties is consistent with the
Implementation Plan for Project Area No. 1.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1. Adopt the Resolutions approving a Purchase and Sale Agreements between the
City of La Quinta, and (1) Thomas H. Casey, Chapter 7 Bankruptcy Trustee for
5-Plex Located on the South Side of Avenida La Fonda (APN: 770-125-003),
and (2) Yessayian Family Ltd. Partnership for 5-Plex Located on the South Side
of Main Street (APN: 770-124-004) and Making Certain Findings Pursuant to
Health and Safety Code Section 33445; and
2. Appropriate $812,500 from available Capital Project Funds for Project Area No.
1, account number 405-000-290.00-00; or
3. Do not adopt Resolutions of the Redevelopment Agency approving a Purchase
and Sale Agreements; or
034
3. Provide staff with alternative direction.
Respectfully submitted,
Debbie Powell
Economic Development Project Manager
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachments: See Attachments 1, 2 and 3 to City Council 5-Plex staff report
low 035
RESOLUTION NO. RA 2011-
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY APPROVING AN AGREEMENT FOR PURCHASE
AND SALE BY AND BETWEEN THE CITY OF LA QUINTA
AND THOMAS H. CASEY, BANKRUPTCY TRUSTEE FOR
THE ESTATE OF MICHAEL ANTHONY FISCHER, SR.,
AND MAKING CERTAIN FINDINGS PURSUANT TO
HEALTH AND SAFETY CODE SECTION 33445 WITH
RESPECT TO THE AGENCY'S EXPENDITURE AND
APPROPRIATING $345,000 TO FUND THE ACQUISITION
WHEREAS, the La Quinta Redevelopment Agency ("Agency") is a redevelop-
ment agency organized and existing under the California Community
Redevelopment Law ("Health & Safety Code § 33000 et seq.) ("CRL") and has
been authorized to transact business and exercise the powers of a redevelopment
agency pursuant to action of the City Council of the City of La Quinta ("City
Council" or "City," as applicable); and
WHEREAS, pursuant to the CRL, the City Council approved and adopted the
Redevelopment Plan ("Redevelopment Plan") for La Quinta Project Area No. 1
("Project Area") on November 29, 1983, by Ordinance No. 43; and
WHEREAS, Agency staff has negotiated a Purchase and Sale Agreement
with Thomas H. Casey, Bankruptcy Trustee for the estate of Michael Anthony
Fischer, Sr. for real property located at 78-181 Avenida La Fonda ("Property"), to
facilitate off-street parking opportunities, the expansion of recreation opportunities,
or the development of affordable housing (collectively, the "Infrastructure
Improvements"), to facilitate access to the Village; and
WHEREAS, the Property is located within the Project Area; and
WHEREAS, the Agreement would provide for the Agency's expenditure of
Two Hundred Seventy -Five Thousand Dollars ($275,000) plus closing costs to
acquire the Property; and
WHEREAS, with the legislative body's consent and the satisfaction of certain
specified requirements set forth in Health and Safety Code Section 33445, the CRL
authorizes redevelopment agencies to expend tax increment funds to acquire real
property for, and to fund the cost of the installation and construction of, publicly
owned buildings, facilities, and improvements; 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; and
•MO C.36
Resolution No. RA 2011-
Fischer Property Purchase and Sale Agreement
Adopted: June 7. 2011
Page 2
WHEREAS, the Agency's financial contribution pursuant to the Agreements
is necessary to effectuate the purposes of the Redevelopment Plan;
NOW THEREFORE, BE IT RESOLVED by the La Quinta Redevelopment
Agency, as follows:
SECTION 1. The above recitations are true and correct.
SECTION 2. Pursuant to Health and Safety Code Section 33445(a), the
La Quinta Redevelopment Agency finds and determines that:
A. The acquisition of land pursuant to the Agreements for the future
development of the Infrastructure Improvements is of benefit to the
Project Area, by helping to eliminate blight within the Project Area, in
that the Infrastructure Improvements will consist of public
infrastructure improvements, and the Redevelopment Plan provides for
the elimination, and prevention of the spread, of blight and blighting
influences through the installation, construction, or re -construction of
streets, utilities, and other public facilities and improvements.
B. No other reasonable means of financing the purchase of the Property
or the Infrastructure Improvements are available to the community, for
the following reasons: (i) City monies are dedicated to critical police,
fire, and other necessary expenditures, including other capital
improvement projects; (ii) the only practical means of paying for the
Property and Infrastructure Improvements is to use Agency funding;
(iii) without Agency funding, Property could not be acquired and the
Infrastructure Improvements would not be completed, all to the
detriment of the Project Area.
C. The acquisition of the Property and the future installation of the
Infrastructure Improvements are consistent with the Agency's
implementation plan adopted pursuant to Health and Safety Code
Section 33490 ("Implementation Plan"), in that improving public
infrastructure and facilities within the Project Area are goals set forth
in the Implementation Plan.
SECTION 3. The Agency's expenditure for the Property for future
development with the Infrastructure Improvements is necessary to effectuate the
purposes of the Redevelopment Plan and is in the best interests of the City of La
Quinta.
037
Resolution No. RA 2011-
Fischer Property Purchase and Sale Agreement
Adopted: June 7, 2011
Page 3
SECTION 4. The Agency authorizes the appropriation and expenditure of up
to $345,000 to close the transaction contemplated by the Purchase and Sale
Agreement, and fund relocation and demolition costs from Project Area No. 1
Capital Projects Fund (Account Number 405-0000-290.00-00). The Agency also
approves the Purchase and Sale Agreement and authorizes the Executive Director
to execute all necessary documents to implement the Agreement.
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta
Redevelopment Agency held on this 7th day of June, 2011, by the following vote
to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
TERRY HENDERSON, Agency Chair
La Quinta Redevelopment Agency
ATTEST:
VERONICA J. MONTECINO, CMC, AGENCY SECRETARY
La Quinta Redevelopment Agency
(City Seal)
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
La Quinta Redevelopment Agency
RESOLUTION NO. RA 2011-
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY APPROVING AN AGREEMENT FOR PURCHASE
AND SALE BY AND BETWEEN THE CITY OF LA QUINTA
AND THE YESSAYIAN FAMILY LIMITED PARTNERSHIP,
AND MAKING CERTAIN FINDINGS PURSUANT TO
HEALTH AND SAFETY CODE SECTION 33445 WITH
RESPECT TO THE AGENCY'S EXPENDITURE AND
APPROPRIATING $467,500 TO FUND THE ACQUISITION
WHEREAS, the La Quinta Redevelopment Agency ("Agency") is a redevelop-
ment agency organized and existing under the California Community
Redevelopment Law ("Health & Safety Code § 33000 et seq.) ("CRL") and has
been authorized to transact business and exercise the powers of a redevelopment
agency pursuant to action of the City Council of the City of La Quinta ("City
Council" or "City," as applicable); and
WHEREAS, pursuant to the CRL, the City Council approved and adopted the
Redevelopment Plan ("Redevelopment Plan") for La Quinta Project Area No. 1
("Project Area") on November 29, 1983, by Ordinance No. 43; and
WHEREAS, Agency staff has negotiated a Purchase and Sale Agreement
with the Yessayian Family Limited Partnership for property located at 78-153 Main
Street (formerly Avenida Buena Ventura) ("Property"), to facilitate off-street parking
opportunities, the expansion of recreation opportunities, or the development of
affordable housing (collectively, the "Infrastructure Improvements"), to facilitate
access to the Village; and
WHEREAS, the Property is located within the Project Area; and
WHEREAS, the Agreement would provide for the Agency's expenditure of
Four Hundred Two Thousand, Five Hundred ($402,500) plus closing costs to
acquire the Properties; and
WHEREAS, with the legislative body's consent and the satisfaction of certain
specified requirements set forth in Health and Safety Code Section 33445, the CRL
authorizes redevelopment agencies to expend tax increment funds to acquire real
property for, and to fund the cost of the installation and construction of, publicly
owned buildings, facilities, and improvements; 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; and
•». 039
Resolution No. RA 2011-
Yessaylan Property Purchase and Sale Agreement
Adopted: June 7, 2011
Page 2
WHEREAS, the Agency's financial contribution pursuant to the Agreements
is necessary to effectuate the purposes of the Redevelopment Plan;
NOW THEREFORE, BE IT RESOLVED by the La Quinta Redevelopment
Agency, as follows:
SECTION 1. The above recitations are true and correct.
SECTION 2. Pursuant to Health and Safety Code Section 33445(a), the
La Quinta Redevelopment Agency finds and determines that:
A. The acquisition of land pursuant to the Agreements for the future
development of the Infrastructure Improvements is of benefit to the
Project Area, by helping to eliminate blight within the Project Area, in
that the Infrastructure Improvements will consist of public
infrastructure improvements, and the Redevelopment Plan provides for
the elimination, and prevention of the spread, of blight and blighting
influences through the installation, construction, or re -construction of
streets, utilities, and other public facilities and improvements.
B. No other reasonable means of financing purchase of the Property or
the Infrastructure Improvements are available to the community, for
the following reasons: (i) City monies are dedicated to critical police,
fire, and other necessary expenditures, including other capital
improvement projects; (ii) the only practical means of paying for the
Property and Infrastructure Improvements is to use Agency funding;
(iii) without Agency funding, the Property could not be acquired and
the Infrastructure Improvements would not be completed, all to the
detriment of the Project Area.
C. The acquisition of the Property and the future installation of the
Infrastructure Improvements are consistent with the Agency's
implementation plan adopted pursuant to Health and Safety Code
Section 33490 ("Implementation Plan"), in that improving public
infrastructure and facilities within the Project Area are goals set forth
in the Implementation Plan.
SECTION 3. The Agency's expenditure for the Property for future
development with the Infrastructure Improvements is necessary to effectuate the
purposes of the Redevelopment Plan and is in the best interests of the City of La
Quinta.
'"• n 4 0
Resolution No. RA 2011-
Yessayian Property Purchase and Sale Agreement
Adopted: June 7. 2011
Page 3
SECTION 4. The Agency authorizes the appropriation and expenditure of up
to $467,500 to close the transaction contemplated by the Purchase and Sale
Agreement, and fund demolition and relocation costs, from Project Area No. 1
Capital Projects Fund (Account Number 405-0000-290.00-00). The Agency also
approves the Purchase and Sale Agreement and authorizes the Executive Director
to execute all necessary documents to implement the Agreement.
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta
Redevelopment Agency held on this 7th day of June, 2011, by the following vote
to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
TERRY HENDERSON, Agency Chair
La Quinta Redevelopment Agency
ATTEST:
VERONICA J. MONTECINO, CMC, AGENCY SECRETARY
La Quinta Redevelopment Agency
(City Seal)
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
La Quinta Redevelopment Agency
041