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2023 (07) Saluda Grande STR Inc to ABTS Polo Villas Eleven, LLC - 11-Lots TR 36279 Partial Assign & Assump of DA 2023-06-20Recording Requested By: First Integrity Title Company RECORDING 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) Exempt from fee GC 27388.1 (a)(2); PARTIAL Recorded concurrently in connection ASSIGNMENT AND ASSUMPTION with a transfer sublec1 to the imposition OF DEVELOPMENT AGREEMENT of documentary transfer tax DOC # 2023-0183200 06/27/2023 11:31 AM Fees: $0.00 Page 1 of 12 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 (Lots 1 through 11 of Tract Map No. 36279) To Court-1e1QA This Partial Assignment and Assumption of Development Agreement ("Assignment and Assumption") is made and entered into as of June Y.o , 2023 by and between the SALUDA GRADE SHORT TERM RENTAL 1NC., a Maryland corporation ("Assignor") and ABTS POLO VILLAS ELEVEN, LLC, a Delaware limited liability company ("Assignee" or "ABTS-PV 11"), 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. 13. 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 Agreement to mean "(i) any person or entity that directly or indirectly owns or has voting or -1- US ACTIVE11238831231V-2 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. Preceding the recordation of this Assignment and Assumption in the Official Records of Riverside County, California, Assignee acquired fee title to a portion of the DA Property, which is more particularly described in Exhibit B attached hereto and incorporated herein by this reference (the "Property" or "ABTS-PV 11 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 operate 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 operate 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 Effective Date (defined below). -2- US ACTIVE\123883123\V-2 4. The address of Assignee is 2425 S. Stearman Dr., Suite 220, Chandler, Arizona 85286. 5. Effective as of the Effective Date, 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 Effective 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, 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 Effective 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. The "Effective Date" for this Assignment and Assumption shall be the date of recording 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 instrument and shall be binding upon the Parties and the City. (Signatures on next page) -3- US ACTIVE\123883123\V-2 IN WITNESS WHEREOF, Assignor, Assignee and the City have executed this Assignment and Assumption as of the date first above written. SALUDA GRADE SHORT TERM RENTAL INC., a Maryland corpo ssignor") By: �i ���— arr, President ABTS POLO VILLAS ELEVEN, LLC, a Delaware limited liability company By: ATLANTIC BTSTAY JV HOLDINGS LLC, a Delaware limited liability company Its: Sole Member By: ATLANTIC BTSTAY HOLDINGS, LLC, a Delaware limited liability company Its: Manager By: BTS Promote — Atlantic I, LLC, a Delaware limited liability company Its: Manager By: Build To Stay, LLC, an Arizona limited liability company Its: Manager By: SIGNED IN COUNTERPART Name: Andy Warren Title: President APPROVED: CITY OF LA QUINTA, a municipal corporation ("City") ATTEST: SIGNED IN COUNTERPART By: SIGNED IN COUNTERPART Jon McMillen, City Manager APPROVED AS TO FORM: SIGNED IN COUNTERPART Monika Radeva, City Clerk William H. Ihrke, City Attorney -4- US ACTIVE11238831231V-2 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 New ae-ic STATE OF C ) IVtw oC.jce? ) COUNTY OF IIIVLRSIDE ) On before me, ee c'S'Arn Notary Public, personally appeared Timothy Carr, President of Salude Grade Short -Term Rental, Inc., 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. ignature (Seal) PETER SPOSATO NOTARY PUBLIC, STATE OF NEW YORK Registration No. 01SP6361833 Qualified In Nassau County Commission Expires July 17, 202 5 -5- US ACTIVE11238831231V-2 IN WITNESS WHEREOF, Assignor, Assignee and the City have executed this Assignment and Assumption as of the date first above written. SALUDA GRADE SHORT TERM RENTAL INC., a Maryland corporation ("Assignor") By: SIGNED IN COUNTERPART Timothy Carr, President ABTS POLO VILLAS ELEVEN, LLC, a Delaware limited liability company By: ATLANTIC BTSTAY JV HOLDINGS LLC, a Delaware limited liability company Its: Sole Member By: ATLANTIC BTSTAY HOLDINGS, LLC, a Delaware limited liability company Its: Manager By: BTS Promote — Atlantic 1, LLC, a Delaware limited liability company Its: Manager By: Build To Stay, LLC, an Arizona limited liability company Its: Mana By: Nam -Andy Warren Title: President APPROVED: CITY OF LA QUINTA, a California municipal corporation ("City") By: SIGNED IN COUNTERPART Jon McMillen, City Manager ATTEST: APPROVED AS TO FORM: SIGNED IN COUNTERPART SIGNED IN COUNTERPART Monika Radeva, City Clerk William H. Ihrke, City Attorney -4- US ACTIVE\123883123\V-2 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. 1- NOTARY ACKNOWLEDGMENT STATE OF 4121 Z O M A- ) COUNTY OF 1niorP I CO Pry- ) On ?0/.2 i%OZ3 , before me, Vi Lh i KI E Ei646) Notary Public, personally appeared Andy Warren, President, 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. NANCY KAYE EAGLEY NOTA P SLIC - ARIZONA MAWORA COUNTY COMMISSION # 593798 MY COMMISSION EXPIRES JANUARY 12, 2025 US ACTIVE\123883123\V-2 WITNESS my hand and official seal. Signature „el,ecieetie. Government Code 27361.7 I certify under penalty of perjury that the Notary Seal on the document to which this statement is attached reads as follows: NAME OF THE NOTARY: Oayte-t 14 `1Pi eali t l DATE COMMISSION EXPIRES: �J4 L Y7 !Z7 202 COMMISSION NUMBER: 593761S M�IrIC-0�01 MANUFACTURE ENDOR NUMBER: SIGNATURE: L.• [/if — AT: SANTA ANA DATE: 612� �2a COUNTY WHERE BOND IS FILED: I certify under penalty of perjury and the laws of the State of California that the illegible portion of this document to which this statement is attached read as follows: SIGNATURE: DATE: AT: SANTA ANA IN WITNESS WHEREOF, Assignor, Assignee and the City have executed this Assignment and Assumption as of the date first above written. APPROVED: ATTEST: Monika Ra•eva, Ci SALUDA GRADE SHORT TERM RENTAL INC., a Maryland corporation ("Assignor") SIGNED IN COUNTERPART By: Timothy Carr, President ABTS POLO VILLAS ELEVEN, LLC, a Delaware limited liability company By: ATLANTIC BTSTAY JV HOLDINGS LLC, a Delaware limited liability company Its: Sole Member By: ATLANTIC BTSTAY HOLDINGS, LLC, a Delaware limited liability company Its: Manager By: BTS Promote — Atlantic 1, LLC, a Delaware limited liability company Its: Manager By: Build To Stay, LLC, an Arizona limited liability company Its: Manager By: SIGNED IN COUNTERPART Name: Andy Warren Title: President CITY OF LA QUINTA, a Cali a municipal corporation ("City") By: cMillen, City Manager APPROVED AS TO FORM: William H. Ihrke, City Attorney US ACTIVE\123883123\V-2 -4- 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 June 21, 2023 before me, MONIKA RADEVA, Notary Public, personally appeared JON McMILLEN (as City Manager for the City of La Quinta) 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(iec), 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. 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: MONIIUI RADEVA Notary Public - California Riverside County Commission # 2334260 Hy Comm. Expires Oct 22, 2024 (notary seal) DOCUMENT: ?o-- Polo Villas —2"--Assignment and Assumption of Development Agreement by and between the Saluda Grande Short Term Rental Inc., a Maryland corporation ("Assignor") and ABTS Polo Villas Eleven, LLC, a Delaware limited liability company ("Assignee"); Lots 1 through 11 of Tract Map No. 36279 EXHIBIT A LEGAL DESCRIPTION OF DA PROPERTY UNDER DEVELOPMENT AGREEMENT Lots 1 through 11 of Tract Map No. 36279, in the City 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. APN: 777-500-001 APN: 777-500-002 APN: 777-500-003 APN: 777-500-004 APN: 777-500-005 APN: 777-500-006 APN: 777-500-007 APN: 777-500-008 APN: 777-500-009 APN: 777-500-010 APN: 777-500-011 And LOTS 1 THROUGH 7 AND LETTERED 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); 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) US ACTIVE\123883123\V-2 EXHIBIT B LEGAL DESCRIPTION of ABTS-PV 11 PROPERTY Real property in the City of La Quinta, County of Riverside, State of California, described as follows: Lots 1 through 11 of Tract Map No. 36279, in the City 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. APN: 777-500-001 APN: 777-500-002 APN: 777-500-003 APN: 777-500-004 APN: 777-500-005 APN: 777-500-006 APN: 777-500-007 APN: 777-500-008 APN: 777-500-009 APN: 777-500-010 APN: 777-500-011 US ACTIVE\123883123\V-2