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2023 (03) Salude Grande STR Inc to Build To Stay - Polo Villas, LLC - Lots 1-11; Partial Assignment & Assumption of DA DOC # 2023-0037091RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of La Quinta Attn: City Clerk La Quinta City Hall 78-495 Calle Tampico La Quinta, CA 92253 No Recording Fee (Government Code Sections 6103 and 27383) DOC # 2023-0037091 02/08/2023 12:04 PM Fees: $0.00 Page 1 of 9 Recorded in Official Records County of Riverside Peter Aldana Assessor -County Clerk -Recorder **This document was electronically submitted to the County of Riverside for recording** Receipted by: LISA #580 PARTIAL ASSIGNMENT AND ASSUMPTION OF DEVELOPMENT AGREEMENT AND TERMINATION OF PRIOR ASSIGNMENTS (Lots 1 through 7 and Lettered Lots B through E of Tract Map No. 33085) This Partial Assignment and Assumption of Development Agreement ("Assignment and Assumption") is made and entered into as of February 7th , 2023 by and between the SALUDA GRADE SHORT TERM RENTAL INC., a Maryland corporation ("Assignor") and BUILD TO STAY — POLO VILLAS. LLC. a Delaware limited liability company ("Assignee"), and is subject to approval by the CITY OF LA QUINTA, a municipal corporation (the "City"). The Assignor and Assignee are individually referred to herein as a "Party" and collectively referred to as the ``Parties." RECITALS This Assignment and Amendment is made and entered into with regard to the following facts, each of which is acknowledged as true and correct by the Parties: A. The City and GTGF, LLC, a Delaware limited liability company (`GTGF"), entered into a development agreement on or about March 15, 2022 (the "Development Agreement"). The Development Agreement was recorded in the Official Records of Riverside County, California on April 18, 2022, as Instrument No. 2022-0182466. The Development Agreement runs with the land and touches and concerns that certain real property in the City of La Quinta, more particularly described in Exhibit A attached to this Assignment and Assumption and incorporated herein by this reference (the "DA Property'). The Development Agreement is incorporated herein by this reference. B. Pursuant to the Development Agreement, GTGF, as "Developer," had the right to transfer or assign all or any portion of its interests, rights or obligations under the Development Agreement to third parties acquiring an interest or estate in all or any portion of the DA Property to an Affiliated Party without prior approval of the City, as more specifically described in the Development Agreement. "Affiliated Party" is defined in Section 1.1.1 of the Development DOC #2023-0037091 Page 2 of 9 Agreement to mean "(i) any person or entity that directly or indirectly owns or has voting or management rights of Developer or its members or managers. (ii) any entity that is directly or indirectly owned, controlled or managed by Developer or its members or managers, or such members' or managers' shareholders, or (iii) any entity that is a permitted assignee under the Purchase/Sale Agreement which meets the criteria in either clause (i) or (ii) of this Section 1.1.1." C. Assignor represents and warrants. upon which the City materially relies, that Assignor is an "Affiliated Party" of GTGF, and, as such, on or about March 22, 2022, Assignor acquired fee title to the DA Property. D. All rights and obligations of the "Developer" under the Development Agreement were assigned by GTGF, LLC to Assignor pursuant to that certain Assignment and Assumption of Development Agreement recorded in the Official Records of Riverside County, California on March 25, 2022, as Instrument No. 2022-146080. E. On or about April 29, 2022 (the "Acquisition Date"), Assignee acquired fee title to a portion of the DA Property, which is more particularly described on Exhibit B attached hereto and incorporated herein by this reference (the "Property"). F. Assignee has provided written notice to the City of Assignee's intent to acquire the rights and assume the obligations of the Developer under the Development Agreement with respect to the Property, and Assignee has requested that the City approve said assignment and assumption. AGREEMENT NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained and other valuable consideration, the receipt and adequacy of which is hereby acknowledged, the Parties hereto agree as follows: 1. The foregoing recitals are hereby incorporated into this Assignment and Assumption by this reference. 2. Assignee represents and warrants to the City, upon which the City materially relies, that that Assignee has the financial capacity and wherewithal to develop the Property as contemplated by the Development Agreement and will comply with the Developer's duties and obligations with respect to the Property pursuant to the Development Agreement. The City finds that (i) Assignee has represented and warranted its financial capacity to develop the Property as contemplated by the Development Agreement and to perform all other duties and obligations under the Development Agreement that are being assigned and assumed hereunder, and (ii) Assignor is not in default under the Development Agreement. 3. The City hereby approves the substitution of Assignee as Developer with respect to the Property under the Development Agreement as described in Paragraph 5 below. Where the term "Developer" is used in the Development Agreement with respect to the Property, the term shall refer to Assignee with respect to the rights and obligations expressly assigned hereby from and after the date of this Assignment and Assumption (the ``Effective Date"). 2 DOC #2023-0037091 Page 3 of 9 4. The address of Assignee is 2425 S. Stearman Dr., Suite 220, Chandler, Arizona 85286. 5. Effective as of the Effective Date (defined below), Assignor hereby assigns and delegates to Assignee all rights, interests and obligations of the Developer arising from and related to the Development Agreement with respect to the Property from and after the Acquisition Date, and Assignee hereby accepts and assumes all such rights, interests and obligations arising from and related to the Development Agreement with respect to the Property from and after the Acquisition Date, and agrees to render performance of all Developer duties and obligations with respect to the Property in accordance with the Development Agreement. 6. Effective as of the Effective Date (defined below), the City hereby releases Assignor from any and all obligations or duties assumed by Assignee pursuant to this Assignment and Assumption which accrue on or after the Acquisition Date, and any claims or damages of any kind arising therefrom or related thereto. 7. The persons executing this Assignment and Assumption on behalf of each Party and the City each warrant and represent that he or she has the authority to execute this Assignment and Assumption on behalf of that Party and the City, as applicable. 8. The laws of the State of California shall govern this Assignment and Assumption and all matters relating to it, and the venue of any action brought relating to this Assignment and Assumption shall be in a state court in the County of Riverside, California. 9. In the event any party hereto brings an action or proceeding to enforce or interpret this Assignment and Assumption, the prevailing party or parties shall be entitled to an award of reasonable attorneys' fees and costs. 10. This Assignment and Assumption terminates, supersedes and replaces the Assignment and Assumption of Development Agreement between Saluda Grade Short Term Rental Inc., and Saluda Grade — AvantStay STR REIT 1 LLC, recorded on May 26, 2022, in the Official Records of Riverside County, California as Instrument No. 2022-0243649. Additionally, this Assignment and Assumption terminates, supersedes and replaces the Assignment and Assumption of Development Agreement between Saluda Grade — AvantStay STR REIT 1 LLC and Build to Stay — Polo Villas, LLC, recorded on May 26, 2022, in the Official Records of Riverside County. California as Instrument No. 2022-0243650. II. The "Effective Date" for this Assignment and Assumption shall be the date of recording in the in the Official Records of Riverside County, California, after being fully executed and notarized by the respective Parties and City hereto. 12. This Assignment and Assumption may be executed in several counterparts, each of which shall constitute one and the same instru►nent and shall be binding upon the Parties and the City. (Signatures on next page) -3 DOC #2023-0037091 Page 4 of 9 WITNESS WHEREOF, Assignor, Assignee and the City have executed this Assignment and Assumption as of the date first above written. APPROVED: ATTEST: \115 a 3 Monika Radeva, City CCerk 4 SALUDA GRADE SHORT TERM RENTAL INC., a Maryland corporation ("Assignor") By: Its: j v" 7c9 (>c ( y^' BUILD TO STAY — POLO VILLAS, LLC, a Delaware limited liability company ("Assignee") By: Its: Vice President CITY CIF T A f1T TTATT A a _icipal corporation ("City") a By: cMillen, City Manager APPROVED AS TO FORM: DOC #2023-0037091 Page 5 of 9 A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. NOTARY ACKNOWLEDGMENT fvc to STATE OF CALHFORNI) �/ tv 1 COUNTY OF On e ciVU4ey , before me, tee-YE/2 .�.Z Notary Public, personally appeared nitro /tf C , 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. PETER SPOSATO NOTARY PUBLIC, STATE OF NEW YORK Registration No, 01SP6361833 Qualified in Nassau County Commission EfpArEtlyly 17, 201-' WITNES my hand and official seal. /Signatur DOC #2023-0037091 Page 6 of 9 A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness. accuracy, or validity of that document. NOTARY ACKNOWLEDGMENT Florida STATE OF eA>,1 ►'ki4I' ) Seminole COUNTY OF R>t6' ?f ) 02/07/2023 Karina P Randall Online Notary On , before me, Notary Public, personally appeared Ryan James Nelson , 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. Ryan JarTles Nelson signed as VP on behalf of Build To Stay - Polo Villas LLC., he provided AZ drivers license. I certify under PENALTY of PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. (Seal) WITNESS my hand and official seal. Signature Karina P Randall Online Notary Commission # HH 62995 Commission Expires 11/12/2024 oeliSlyrlp/, KARINA I PANDALL y %`% Notary Public - State of Florida o • Q Commission # HH 62995 Expires on November 12, 2024 Notarized online using audio -video communication DOC #2023-0037091 Page 7 of 9 NOTARY ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Riverside On February 7, 2023 before me, LAURIE McGINLEY, Notary Public, personally appeared JON McMILLEN who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument, and acknowledged to me that he executed the same in his authorized capacity, and that by his 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. LAURIE MCGINLEY Notary Public • California ,`� Riverside County Commission 2377907 Comm, Expires Oct a, 2025 (notary seal) POLO VILLAS: PARTIAL ASSIGNMENT & ASSUMPTION OF DEVELOPMENT AGREEMENT DOC #2023-0037091 Page 8 of 9 Exhibit A Land Description LEGAL DESCRIPTION OF REAL. PROPERTY The and referred to herein below is situated in the City of La Quinta. County- of Riverside, State of California, and is described as follows: LOTS 1 THROUGH 11 OF TRACT MAP NO. 36279, IN THE. C1TY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA. AS PER MAP FILED ON MAY 27. 2015 IN BOOK 445 OF MAPS, PAGES 62 AND 63, IN THE OFFICE. OF THE COUNTY RECORDER OF SAID COUNTY. For conveyancing purposes only: APNs 777-500-001 (Affects Lot t) 777-500-002 (Affects Lot 2) 777-500-003 (Affects Lot 3) 777-500-004 (Affects l.ot 4) 777-500-005 (Affects Lot 5) 777-500-006 (Affects Lot 6) 777-500-007 (Affects Lot 7) 777-500-008 (Affects Lot 8) 777-500-009 (Affects Lot 9) 777-500-010 (Affects Lot 10) and 1..01 S 1 THROUGH 7 AND LETTERED LOTS B TF[ROUGII E OF TRACT MAP NO. 33085. IN TILE CITY OF I_A QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 460, PAGES 25 AND 26. OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. For conveyancing purposes only: APN 777-500-016 (Affects: Lot I) APN 777-500-017 (Affects: Lot 2) APN 777-500-018 (Affects: Lot 3) APN 777-500-019 (Affects: Lot 4) APN 777-500-020 (Affects: Lot 5) APN 777-500-021 (Affects: Lot 6) APN 777-500-022 (Affects: Lot 7) APN 777- 500-023 (Affects: Lot B) APN 777-500-024 (Affects: Lots C and D) APN 777-500-025 (Affects: Lot E.) 12183-0001/1413104.2 DOC #2023-0037091 Page 9 of 9 EXHIBIT B LEGAL DESCRIPTION of PROPERTY Real property in the City of La Quinta, County of Riverside, State of California, described as follows: LOTS 1 THROUGH 7 AND LE I I ERED LOTS B THROUGH E OF TRACT MAP NO. 33085, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 460, PAGES 25 AND 26, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 777-500-016 (AFFECTS: LOT 1); 777-500-017 (AFFECTS: LOT 2); 777-500-018 (AFFECTS: LOT 3); 777-500-019 (AFFECTS: LOT 4); 777-500-020 (AFFECTS: LOT 5); 777-500-021 (AFFECTS: LOT 6); 777-500-022 (AFFECTS: LOT 7); 777-500-023 (AFFECTS: LOT B); 777-500-024 (AFFECTS: LOTS C AND D); 777-500-025 (AFFECTS: LOT E) [end of legal description] 12I83-0001/14131042