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2012 LQ Retirement Residence LP - Assignment & Assumption Agrmt from CP Development LQRECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of La Quinta P.O. Box 1504 La Quinta, CA 92247 Attn: City Manager DOC # 2012-0564809 11/21/2012 02:48P Fee:NC Page 1 of 12 Recorded in Official Records County of Riverside Larry W. Ward Assessor, County Clerk & Recorder 11111111111111111111111011111111111111111111111111111 S R U PAGE SIZE DA MISC LONG RFD COPY 5M A L 466 426 PCOR NCOR SMF NCHG T: CTY 1 Ed (Exempt From Recording Fee per Gov't Code § 27383) ASSIGNMENT AND ASSUMPTION AGREEMENT This ASSIGNMENT AND ASSUMPTION AGREEMENT ("Assignment') is entered into this jq_�Iday of QC/fd BE2 , 2012, by and between CP DEVELOPMENT LA QUINTA, LLC, a California limited liability company ("Assignor") and LA QUINTA RETIREMENT RESIDENCE LIMITED PARTNER- SHIP, a Washington limited liability company ("Assignee") with reference to the following: A. Assignee is the owner in fee simple of certain property located at the southeast corner of Miles Avenue and Washington Street in the City of La Quinta, California (Parcel B"). Parcel B is more particularly described on Exhibit "A" attached hereto and incorporated herein by this reference. B. Assignee acquired Parcel B from Assignor, on or about July 1, 2011, for the purpose of constructing thereon (i) a one hundred thirty-two (132) suite retirement community, (ii) four (4) single -story duplex cottages, (iii) a seventy-two (72) suite assisted living community, and (iv) a thirty-two (32) bed memory care facility (collectively, the "Senior Living Facility.") C. Assignor originally acquired Parcel B, along with certain adjacent real property (collectively, the "Center Pointe Property"), from the former La Quinta Redevelopment Agency ("Agency") pursuant to the terms of that certain Disposition and Development Agreement dated on or about December 18, 2003 ("Original DDA"), as amended on or about October 28, 2004, on or about December 7, 2004, on or about November 2, 2005, on or about October 20, 2006, on or about August 23, 2007, and on or about March 19, 2008 (collectively the "DDA Amendments"). The Original DDA, as modified by the DDA Amendments, is hereinafter referred to as the "DDA". D. Concurrently with the execution of the Original DDA, the Agency and Assignor entered into that certain Development Agreement, which was recorded in the Official Records of the County Recorder for the County of Riverside ("Official Records") on January 5, 2004 as Instrument No. 2004-0005256, and amended by that certain Amendment No. 1 to Development Agreement executed on or about October 28, 2004 and recorded in the Official Records on November 8, 2004 as Instrument No. 2004- 0885063, that certain Amendment No. 2 to Development Agreement executed on or about November 17, 2005 and recorded in the Official Records on December 19, 2005 as 882/015610-0061 3112529.2 a09/21/12 '1- Instrument No. 2005-1045418, and that certain Amendment No. 3 to Development Agreement executed on or about May 6, 2008 and recorded in the Official Records on June 4, 2008 as Instrument No. 2008-0303530 (as amended, the "Development Agreement.") E. Pursuant to the terms of the DDA and the Development Agreement, the Center Pointe Property is to be used for a mixed use development project (the "Project"), with Parcel B designated for a residential development that includes an affordable housing component (the "Original Residential Component"). F. On June 28, 2011, the Governor signed Assembly Bill 26 ("ABxI 26") and Assembly Bill 27 ("ABxI 27") from the 2011-12 First Extraordinary Session of the California Legislature. .ABxI 26 immediately suspended all redevelopment agency activities, except continued performance of "enforceable obligations," and set forth a process to dissolve redevelopment agencies and end redevelopment in California. ABxI 27 provided a "voluntary alternative redevelopment program," which would have allowed redevelopment agencies to remain in existence and continue redevelopment, if remittance payments were made to cover the State of California's budget shortfall for fiscal year 2011-12 and were made in subsequent fiscal years to cover State costs. A lawsuit was filed, challenging the constitutionality of both ABxI 26 and 27. The California Supreme Court upheld the constitutionality of ABxl 26, revising the effective dates of certain provisions, and struck down as unconstitutional ABxI 27. (California Redevelopment Assn. v. Matosantos (2011) 53 CalAth 231 ("CRA Case"). ABxI 26 is chapter 5, Statutes 2011, First Extraordinary Session, which added Part 1.8 (suspension provisions) and Part 1.85 (dissolution provisions) of Division 24 of the Health and Safety Code. Under the CRA Case, all redevelopment agencies dissolved February 1, 2012. Pursuant to Health and Safety Code section 341710), added by Part 1.85 of Division 24, and City Council Resolution No. 2012-002, the City of La Quinta ("City") is the "successor agency" to the former La Quinta Redevelopment Agency. G. On June 27, 2012, the Governor signed Assembly Bill 1484 from the 2011-2012 Regular Session of the California Legislature ("AB 1484"), which established that successor agencies are separate legal entities from the entities that provide for their governance. As a result of AB 1484, the successor agency to the former Agency is now formally the "City as Successor Agency to the La Quinta Redevelopment Agency" (the "Successor Agency"). H. Concurrently with the execution of this Assignment, (i) the Successor Agency and Assignee are entering into that certain Amendment No. 7 to Disposition and Development Agreement ("DDA Amendment"), and (ii) the City and Assignee are entering into that certain Amendment No. 4 to Development Agreement (the "DA Amendment"). Pursuant to the DDA Amendment and DA Amendment (collectively, the "DDA/DA Amendments"), each of the DDA and Development Agreement will be modified to omit the Original Residential Component and add the Senior Living Facility. The effectiveness of the DDA/DA Amendments is conditioned on the execution and recordation of this Assignment. 882/015610-0061 -2- 3112529.2 a09/21/12 I. Assignor now desires to transfer to Assignee all of Assignor's rights and responsibilities under the DDA and the Development Agreement to the extent that such rights and responsibilities relate to Parcel B and to the development of the Senior Living Facility. NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Assignor hereby assigns to Assignee all of Assignor's rights and responsibilities under the terms of the DDA and the Development Agreement with respect to Parcel B and the Senior Living Facility from and after the "Effective Date" (as that term is defined in Section 4 below) of this Assignment (collectively, the "Assigned Rights and Obligations".) 2. Assignee hereby accepts the foregoing assignment of the Assigned Rights and Obligations, and agrees to be bound by the terms of the DDA and the Development Agreement with respect to Parcel B and the Senior Living Facility. 3. The parties hereto acknowledge and agree that Assignee shall not be responsible for any of the obligations of the DDA or the Development Agreement which arise from ownership of any portion of the Center Pointe Property which arise prior to the Effective Date hereof, or which arise from any portion of the Center Pointe Property other than Parcel B after the Effective Date hereof. As such, a default by Assignor under either the DDA or the Development Agreement prior to the Effective Date hereof, or with respect to any portion of the Center Pointe Property other than Parcel B after the Effective Date hereof ("Assignor's Default") shall not be deemed a default by Assignee, and Assignor shall indemnify, defend and hold harmless Assignee from any and all losses, claims or liability, including without limitation reasonable attorneys' fees and costs, arising from an Assignor's Default. A default by Assignee under either the DDA or the Development Agreement with respect to Parcel B after the Effective Date hereof ("Assignee's Default") shall not be deemed a default by Assignor, and Assignee shall indemnify, defend and hold harmless Assignor from any and all losses, claims or liability, including without limitation reasonable attorneys' fees and costs, arising from an Assignee's Default. 4. This Assignment shall be deemed effective upon the written consent to this Assignment by the City and the Successor Agency (herein referred to as the "Effective Date") - 5. Except as otherwise described in paragraph 4 above, the parties hereto each warrant and represent that they have taken all necessary corporate action to authorize the execution and performance of this Assignment and that the individuals executing this document on behalf of the parties are authorized to do so, and by doing so, create binding obligations as described herein of the party represented. 182/015610-0061 31125292 a09/2 V 12 6. This Assignment shall be governed by the internal laws of the State of California, without regard to conflict of law principles. 7. This Assignment may be executed in counterparts, each of which, when this Assignment has been signed by all the parties hereto, shall be deemed an original, and such counterparts shall constitute one and the same instrument. [End — Signature page follows] 882/015610-0061 31125292.09/21/12 WHEREFORE, the parties hereto have executed this Assignment on the date first written above. "Assignor" CP DEVELOPMENT LA QUINTA, LLC, a California limited liability company By: Oliphant Family Trust Its: Member By: Q- . �, L Richard R. Oliphant Its: Trustee By: Oliphant Enterprises, Inc. Its: Manager r By: — ( 4�� Richard R. Oliphant Its: President "Assignee" LA QUINTA RETIREMENT RESIDENCE LIMITED PARTNERSHIP, a Washington limited partnership By: La Quints GP LLC, a Washington limited liability company Its: General Partner By: Hawthorn. Management Services Corp., a Washington corporation Its: Mans er By: Barton G. Colson Its: President 882(015610-0061 31125291 109AII12 WHEREFORE, the parties hereto have executed this Assignment on the date first written above. "Assignor" CP DEVELOPMENT LA QUINTA, LLC, a California limited liability company By: Oliphant Family Trust Its: Member SIGNED IN COUNTERPART Un Richard R. Oliphant Its: Trustee By: Oliphant Enterprises, Inc. Its: Manager SIGNED IN COUNTERPART By: Richard R. Oliphant Its: President "Assignee" LA QUINTA RETIREMENT RESIDENCE LIMITED PARTNERSHIP, a Washington limited partnership By: La Quinta GP LLC, a Washington limited liability company Its: General Partner By: Hawthorn Management Services Corp., a Washington corporation Its: Mane By: Barton G. Colson Its: President 882/015610-0061 _ 3112529.2 a0921/12 -� State of California ) County of IC VVSidtl On /0_ /,:;I— _ before me, I�I�GGIS �GI'�Z Notary Public, ere in name and title of the officer=_ personally appeared tC r� V/'Qi7al1f' who proved to me on the basis of satisfactory evidence fo be the personf,a'f°whose nam5" Xa�re subscribed to the within instrument, and acknowledged to me that he/shelthey executed the same in his/herhiteir authorized capacity(ies), and that by his/hw4dwir signature(s) on the instrument the person , or the entity upon behalf of which the perso5Wacted, 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 h official seal. GLAOIS PERE2 Commission N 1943564 = Notary Public - California Signature Riverside County g hl Comm. Expires Jul 9. 2015 S o,�k, Jdy, ' �� (seal) County ofo County of CA& On D�/ ,, I, 1�/I" 161 before me, �D d; n Notary Public, // n -(here insert came and title of the officer) personally appeared �LP/}� MJ7 C��S�� 1 who proved to me on the basis of satisfactory evidence to be the persotl,�whose names is/are subscribed to the within instrument, and acknowledged to me that he/shekw5, executed the same in his/kepUeir authorized capacity(ies), and that by hi "n,,,oriicr- signatu on the instrument the person , or the entity upon behalf of which the person 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 BBVD15610-0061 31125291 e09121112 NOTARY PUBLIC STATE OF WASHINGTON ROBIN R. GOINS Commission Expires September26, 2015 (seal) State of California ) County of RA01S LD & ) On QG'io UM i9. 2 of Y before me, SgSM M AY56-S , Notary Public, f^ + (herg insert name and title of the officer) personally appeared t' A 1� �C d • SSE 4A GE k who proved to me on the basis of satisfactory evidence to be the person(#) whose name(4) iskap subscribed to the within instrument, and acknowledged to me that hehohak Ay executed the same in his/knt< h& authorized capacity(tilw), and that by hlsAwr4bek signature(*) on the instrument the person(►), or the entity upon behalf of which the person(*) 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. st'w SUSAN MAYSELS COMht. Itt8W79 NOT PLIBLIC 1 Signature `� l R eptE sAPNM 2013 WasGt; 4-In (seal) State of C- of ) County �) 4 On Q1�6y I5�� 2017-, before me, D 6; n Q- GO; " 9 ,Notary Public, ( _ „ (here insert name and title of the officer) personally appeared 1. 0A 1-0Y1 LZ L04"V h who proved to me on the basis of satisfactory evidence to be the person,(g)"whose names is/are subscribed to the within instrument, and acknowledged to me that he/she/hey- executed the same in his/kep4heir authorized capacity(ies), and that by his,/"4ff4h ir- signaturefs�on the instrument the perso*)� or the entity upon behalf of which the person�cted, 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 4LSignature rt' 882/015610,0061 3112529 2 a09/21/12 -�' NOTARY PUBLIC STATE OF WASHINGTON ROBIN R. GOINS Commission Expires September 26, 2015 (seal) CONSENT By execution below, the City hereby (i) consents to the foregoing Assignment, and (ii) releases CP from any further obligations under the DA with respect to Parcel B and the Senior Living Facility. CITY OF LA QUINTA, a California municipal corporation and charter city organized and existing u der the laws of the Statq of Calif 5a Manager A T: Susan Maysels, City Cler APPROVED AS TO FORM: RUT AN TUCKER, LP By: . Kath rive Jenso ity Attorney By execution below, the Successor Agency hereby (i) consents to the foregoing Assignment, and (ii) releases CP from any further obligations under the DDA with respect to Parcel B and the Senior Living Facility. CITY AS SUCCESSOR AGENCY TO THE LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and AT Susan Maysels, Successor gency Secretary APPROVED AS TO FORM: RUT TU LLP By: the ine Jenson, cessor Agency Counsel 882/015610-0061 _7- 31125292 a09/21/12 EXHIBIT "A" LEGAL DESCRIPTION OF PARCEL B Real property in the City of La Quinta, County of Riverside, State of California, described as follows: PARCEL B AS SHOWN ON LOT LINE ADJUSTMENT NO.2006-452 AS EVIDENCED BY D�XUMENT RECORDED APRIL 19, 2006 AS INSTRUMENT N0.20D6.0280726 OF OFFICIAL RECORDS, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, PARCEL 8 TOGETHER WITH THAT PORTION OF PARCEL 7 OF PARCEL MAP NO. 31116, AS SHOWN BY MAP ON FILE IN BOOK 212, AT PAGES 60 THROUGH 66, INCLUSIVE, OF PARCEL MAPS, RIVERSIDE COUNTY RECORDS, BEING IN THE SOUTH HALF OF SECTION 19, TOWNSHIP 5 SOUTH, RANGE 7 EAST, S.B.M., MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST SOUTHERLY CORNER OF SAID PARCEL 8; THENCE ALONG THE SOUTHEASTERLY, EASTERLY AND NORTHERLY BOUNDARY LINES OF SAID PARCEL 8 THROUGH THE FOLLOWING FIVE (5) COURSES: (1) NORTH 430 56' 44" EAST, A DISTANCE OF 152.65 FEET; (2) THENCE NORTH 00° 12' 13" WEST, A DISTANCE OF 790.73 FEET; (3) THENCE SOUTH 890 47' 47" WEST, A DISTANCE OF 239.56 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHEASTERLY, HAVING.A RADIUS OF 80.00 FEET; (4) THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 450 27 41", AN ARC DISTANCE OF 63.48 FEET; (5) THENCE TANGENT TO SAID CURVE NORTH 440 44' 32" WEST, A DISTANCE OF 91.61 FEET TO THE BEGINNING OF A NON -TANGENT CURVE, CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 440.OD FEET, A RADIAL LINE PASSING THROUGH SAID POINT BEARS SOUTH 490 06' 37" EAST; THENCE SOUTHWESTERLY ALONG THE ARC OF SAID CURVE AND CONTINUING ALONG SAID NORTHERLY LINE OF PARCEL 8 AND ALONG THE NORTHERLY LINE OF SAID PARCEL 7, THROUGH A CENTRAL ANGLE OF 230 54' 45", AN ARC DISTANCE OF 183.63 FEET TO THE BEGINNING OF A COMPOUND CURVE, CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 840.00 FEET, A RADIAL LINE PASSING THROUGH SAID POINT BEARS SOUTH 250 11' 52" EAST; THENCE SOUTHWESTERLY ALONG THE ARC OF SAID CURVE AND CONTINUING ALONG SAID NORTHERLY LINE OF PARCEL 7, THROUGH A CENTRAL ANGLE OF 04° 02' 08", AN ARC DISTANCE OF 59.16 FEET TO THE MOST NORTHERLY NORTHWEST CORNER OF SAID PARCEL 7; THENCE ALONG THE WESTERLY LINES OF SAID PARCEL 7 THROUGH THE FOLLOWING THREE (3) COURSES: (1) SOUTH 16° 39' 14" EAST AND NON -TANGENT TO LAST SAID CURVE, AS DISTANCE OF 55.97 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE WESTERLY, HAVING A RADIUS OF 250.00 FEET; (2) THENCE SOUTHERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 200 41' 22", AN ARC DISTANCE OF 90.27 FEET; (3) THENCE TANGENT TO SAID CURVE SOUTH 040 02' 08° WEST, A DISTANCE OF 333.46 FEET TO THE NORTHWESTERLY PROLONGATION OF THE SOUTHWESTERLY LINE OF SAID PARCEL 8; THENCE LEAVING SAID WESTERLY LINES OF PARCEL 7 AND ALONG SAID PROLONGATION AND SAID SOUTHWESTERLY LINE OF PARCEL 8, SOUTH 50010' 13" EAST, A DISTANCE 0f 592.88 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM AGENCY EXCEPTS AND RESERVES FROM TfiE CONVEYANCE, HEREIN DESCRIBED ALL INTEREST OF THE AGENCY IN OIL, GAS, HYDROCARBON SUBSTANCES AND MINERALS OF EVERY KIND AND CHARACTER LYING MORE THAN FIVE HUNDRED (500) FEET BELOW THE SURFACE, TOGETHER WITH THE RIGHT TO DRILL INTO, THROUGH, AND TO USE AND OCCUPY ALL PARTS OF THE PROPERTY LYING MORE THAN FIVE HUNDRED (500) FEET BELOW THE SURFACE THEROF FOR ANY AND ALL PURPOSES INCIDENTAL TO THE EXPLORATION FOR AND PRODUCTION OF OIL, GAS, HYDROCARBON SUBSTANCES OR MINERALS FROM SAID PROPERTY OR OTHER LANDS, BUT WITHOUT, HOWEVER, ANY RIGHT TO USE EITHER THE SURFACE OF THE PROPERTY OR ANY PORTION THEROF WITHIN FIVE HUNDRED (500) FEET OF THE SURFACE FOR ANY PURPOSE OR PURPOSES WHATSOEVER, OR TO USE THE PROPERTY IN SUCH A MANNER AS TO CREATE A DISTURBANCE TO THE USE OR ENJOYMENT OF THE PROPERTY, AS RESERVED IN THE DEED FROM LA QUINTA REDEVELOPMENT AGENCY, RECORDED DECEMBER 09, 2004 AS INSTRUMENT NO, 04.979137 OF OFFICIAL RECORDS. APN: 604-630.027-6 882/015610-0061 3112529.2 a09/21/12 -2- SEE SHEET 2 FOR ANN[STATIAN TABLES I PARCEL S C/L 80' Aq� ACCESS C R9 iP�e�\�®off RB 20 PEDESTRIAN/ LANDSCAPE E 1 R7 DEDICATED HEREON RI6 PARCEL •A! O 13.515 AC. Z R6 PARCEL C AVENUE PARCEL 9 R12 C/L 70' ACCESS C/L 77' ACCESS I LLOT LINE TO BE e�DELETED PARCEL B• 9.451 AC. PARCEL S NEW ADJUSTED LOT LINE R4 J �J O 7`E LOT ![�° LOT LINE TO BE DELETED P LC ^ s9?O6 �p h R3 R14 PARCEL 8 gNg 1 P.O.B 6� SEE DETAIL •A• RI AT UPPER LEFT �b NE*Y LINE R2 SCALE: 1" = 200' ORL64/sa6sa CONSULTING, INC. LEGEND MADHEM Sams & ASSOCIATES. INC� EXISTING LOT LINE TO BE DELETED IDMSA P,weemm ■ Ctm B•om®wo • LA Sunv EXISTING LOT LINE TO REMAIN 34200 BOB Hors Dove • RANM hf A • CA 92270 NEW ADJUSTED LOT LINE 11m.ar m M 320M • F" (76M 323403 RESTRICTED ACCESS SHEEP i of 2 - J.N. 1612 PER PMD 212/60-66 88210l5610-0061 31125292.09/21/12 -3-