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2018 Sunrise LQ, LLC & Andalusia Country Club - Madison St Amend to Assign & Assump Agrmt DOC # 2018-0421848DOC # 2018-0421848 RECORDING REQUESTED BY: 10/25/2018 11:42 AM Fees: $0.00 First American Title Company Page 1 of 9 Recorded in Official Records WHEN RECORDED MAIL DOCUMENT TO: County of Riverside Peter Aldana Sunrise L Q , LLC Assessor -County Clerk -Recorder 300 Eagle Dance Circle Palm Desert, CA 92211 "This document was electronically submitted to the County of Riverside for recording" Receipted by: MARY #420 A.P.N.: Not Applicable Property Address: See attached legal , La Quinta, CA TRA: DTT: N/A Space Above This Line for Recorder's Use Only File No.: OSA-5600012 (br) Amendment to Assionment and Assumption of Median Landscaoina Maintenance, Aareement Title of Document Exemption reason declared pursuant to Government Code 27388.1 ❑ This Document is a transfer that is subject to the imposition of documentary transfer tax. This is a document recorded in connection with a transfer that is subject to the imposition of document transfer tax. Document reference: Pe-&ar-d.,n? mh C—e-e-cm-A y 6&r4west, ❑ This document is a transfer of real property that is a residential dwelling to an owner -occupier ❑ This is a document recorded in connection with a transfer of real property that is a residential dwelling to an owner -occupier. Document reference: THIS PAGE ADDED TO PROVIDE EXEMPTION INFORMATION FOR THE BUILDING HOMES AND JOBS ACT FEE (SB-2; AFFORDABLE HOUSING FEE) ($3.00 Additional recording fee applies) DOC #2018-0421848 Page 2 of 9 Recording Requested By. First American Title Company National Homebuilder Services Subdivision Department RECORDING REQUESTED BY SUNRISE LQ, LLC 300 Eagle Dance Circle Palm Desert, CA 92211 AND WHEN RECORDED MAIL TO SUNRISE LQ, LLC 300 Eagle Dance Circle Palm Desert, CA 92211 hbDw la -T) — AMENDMENT TO, ASSIGNMENT AND ASSUMPTION OF MEDIAN LANDSCAPING MAINTENANCE AGREEMENT THIS AMENDMENT TO, ASSIGNMENT AND ASSUMPTION OF MEDIAN LANDSWPE�GINTENANCE AGREEMENT (this "AssiLanment") is made as of this 9, 2018 (the "Effective Date"), by CORAL OPTION I, LLC, a Delaware limited liability company ("Assignor"), in favor of ANDALUSIA COUNTRY CLUB, LLC, a Delaware limited liability company and SUNRISE LQ, LLC, a Delaware limited liability company ("Assignee"), with amendment, consent and release granted by the CITY OF LA QUINTA, a California Municipal Corporation (the "City"), collectively, (the "Parties"). WITNESSETH: WHEREAS, Assignor and the City are parties to that certain Median Landscaping Maintenance Agreement Coral Mountain Development, dated January 11, 2006, and recorded on May 8, 2006 as Document No. 2006-0331924 in the Official Records of Riverside County, California (as amended, supplemented, or modified, the "Agreement"), which Agreement encumbers certain tracts or parcels of property as described therein and incorporated herein (the "Property"); WHEREAS, the City has confirmed that all of the Improvements (as defined in the Agreement), required by the Agreement are complete; WHEREAS, the City has confirmed that the maintenance of the Improvements (as defined in the Agreement), required by the Agreement is current and there are no outstanding obligations, other than the ongoing maintenance thereof; WHEREAS, pursuant to that certain Grant Deed of even date herewith (the "Deed '), Assignor is granting and conveying the Property to Assignee; 1 10-10-18-v11 DOC #2018-0421848 Page 3 of 9 WHEREAS, Assignor desires to assign to Assignee, and Assignee desires to assume from Assignor, all right, title, interest, reservations, powers and privileges of Assignor under the Agreement, all on the terms hereinafter set forth; and NOW, THEREFORE, in consideration of the sum of TEN AND NO/100THS DOLLARS ($10.00), and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Assignor, with full power and authority to so act, and concurrently with the delivery of the Deed to Assignee, hereby sells, transfers, assigns and sets over to Assignee, its successors and assigns, all right, title, interest, reservations, powers, and privileges of Assignor under the Agreement (collectively, the "Assigned Rights"). By the City's execution hereof, the City hereby (i) warrants the following: (a) that the Assignor is not in default in the performance of any duty or obligation under the Agreement; (b) except for this Assignment, the City has not consented to the Agreement being assigned, modified or amended; (c) there are no existing or pending lawsuits, and no defenses or offsets relating to lawsuits, arising out of the Agreement; and (d) the Improvements (as defined in the Agreement) are complete; (ii) consents to such foregoing assignment of the Assigned Rights, (iii) releases Assignor of all obligations and liability under the Agreement accruing from and after the date hereof, and (iv) acknowledges, accepts and confirms the amendment of the Agreement as stated below. Assignee does hereby assume and agree to observe and perform and be bound by all of Assignor's obligations and duties under the Agreement accruing from and after the date hereof. Assignee agrees to indemnify, protect, defend and hold Assignor harmless from and against any and all liabilities, losses, costs, damages and expenses (including reasonable attorneys' fees) directly or indirectly arising out of or related to any breach or default in Assignee's foregoing obligations. Assignor shall remain liable for all of Assignor's obligations under the Agreement accruing prior to the date hereof, except to the extent that any such obligation is prorated and adjusted, or otherwise credited to Assignee, at Closing (as defined in the Sale Agreement, as hereinafter defined). Assignor agrees to indemnify, protect, defend and hold Assignee harmless from and against any and all liabilities, losses, costs, damages and expenses (including reasonable attorneys' fees) directly or indirectly arising out of or related to any breach or default in Assignor's foregoing obligations. As used herein, "Sale Agreement" shall mean that certain Purchase and Sale Agreement, dated as of July 13, 2018, as amended, by and among CORAL OPTION I, LLC, a Delaware limited liability company, T.D. DESERT DEVELOPMENT LIMITED PARTNERSHIP, a Delaware limited partnership, CORAL MOUNTAIN, LLC, a Delaware limited liability company, and SUNRISE LQ, LLC, a Delaware limited liability company, as the same may have been amended, modified or assigned. The Parties also desire to amend the Agreement to include the following provision: 14. Maintenance by a Master Association. City acknowledges, agrees, and consents to the subsequent assignment of the obligations to maintain the Improvements (as 2 i o-10-18-V 11 DOC #2018-0421848 Page 4 of 9 defined in the Agreement) from the Owner to the Andalusia at Coral Mountain homeowner's association ("Master Association"), and that at such time as Owner assigns to the Master Association, and Master Association assumes from Owner, Owner's obligations under this Agreement, Owner shall be relieved of liability hereunder. Notwithstanding the foregoing, however, the City's consent to this assignment shall be contingent and subject to the following conditions and restrictions: (a) Within thirty (45) days of the assignment from Owner to the Master Association, the Owner and/or Master Association shall deliver a copy of whatever instrument, writing, or document the Owner and Master Association utilized to assign the obligations under this Agreement (the "Assignment Instrument") to the City. Should the Owner and/or Master Association fail to comply with this requirement, the City's consent as provided by this Section 14 shall be deemed void, and the obligations under this Agreement shall immediately revert to Owner. (b) Upon receipt of the Assignment Instrument, the City shall have forty-five (45) days to review the Assignment Instrument, to verify that the Assignment Instrument, and the Master Association are acceptable, in the City's sole and absolute discretion. Should the City determine that either the Assignment Instrument or the Master Association is unacceptable, the City shall provide written notice to Owner as provided for in this Agreement ("Revocation of Consent"). Upon receipt of the City's Revocation of Consent, all obligations under this Agreement shall revert back to Owner. Should the City fail to provide a Revocation of Consent within the time frame described in this paragraph 14(b), the City's consent shall remain. (c) Should the City's consent be revoked or rendered void under either Section 14(a) or Section 14(b) at any time, Owner shall forever forfeit its rights under this Section 14. Notwithstanding the foregoing, Owner and City shall retain the authority to consent to the assignment of this Agreement pursuant to any other provision of this Agreement at any time. This Assignment shall be binding upon and inure to the benefit of Assignor, Assignee, the City and their respective heirs, executors, administrators, successors and assigns. In the event there is a conflict between the original Agreement and this Amendment, this Amendment shall control. This Assignment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. [SIGNATURES BEGIN ON NEXT PAGE] 3 10-10-18-vi i DOC #2018-0421848 Page 5 of 9 IN WITNESS WHEREOF, Assignor, Assignee, and the City have executed this instrument under seal as of the date set forth above. ASSIGNOR: CORAL OPTION I, LLC, a Delaware limited liability company By: (2>7 - Name: rS o/q i Title: v P 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 6 041— On 0?40btK [( , 2018, before me, &0(6- 6M-eL- , Notary Public, personally appeared —Y-A" who proved to me on the basis of satisfactory evidence to be the pei`SonK whose namek4r) is/ape subscribed to the within instrument and acknowledged to me that he/she/+hey executed the same in his/het4htir authorized capacity(ie5), and that by his/lair signatureW on the instrument the personfs), or the entity upon behalf of which the perso*) 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. SONIA RONOEZ Notary Public — California WITNESS my hand and official seal. s Riverside County Commission # 2212768 My Comm. Expires Oct 1. 2021 (Notary Seal) (Signature of Not Publi� [SIGNATURES CONTINUE ON NEXT PAGE] DOC #2018-0421848 Page 6 of 9 ASSIGNEE: SUNRISE LQ, LLC, a Delaware limited liabilit company Name: ��� P /L. ma`s-, i i Title: t—� 3 •�d .`,-.. r 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 f?,` J �Qf S 1 rJe On Or,466oc 1.0 2018, before mej1 uav) i a ll -A - (1-5 VnO, , Notary Public, personally appeared h i i lle—IC - Ern ith , I r who proved to me on the basis of satisfactory evidence to be the persono whose nameV) is/apk subscribed to the within instrument and acknowledged to me that he/sXe/tWey executed the same in his/leer/their authorized capacity(ia<), and that by his/hpr/tWir signature(s) on the instrument the person(g), or the entity upon behalf of which the person(K) 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. dUANiTAM.A. GAMA COMM. #2099290 NOTARY PUBLIC • CALIFORNIA v RIVERSIDE COUNTY 0 Q(/Y1� Gj (Notary Seal) Canmi, M li Felxuary 7 ZO1g (Signature of Notary Public) [SIGNATURES CONTINUE ON NEXT PAGE] DOC #2018-0421848 Page 7 of 9 ANDALUSIA COUNTRY CLUB, LLC, a Delaware limited liability company Name: /0A� Title: 1-1'e-S •'D1���r ` 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 Pi v effsJ c- On OG�) �et- to 2018, before me f f,'A(k I'll • (ii (5-(2,M6Z , Notary Public, personally appeared h h I I �2� S rn i -��►� , who proved to me on the basis of satisfactory evidence to be the person(;4 whose name(,] is/ap6 subscribed to the within instrument and acknowledged to me that he/sVe/tkfey executed the same in his/h&/their authorized capacity(ieA, and that by his/lier/thvfr signature(s) on the instrument the personV), or the entity upon behalf of which the person(6 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. ti• JUANITA M.A. GAMA COMM. #t2099290 �j / _. a NOTARY PUBLIC • CALIFORNIA � —d jazX,f�// '�- I� a�'� Q (Notary Seal) x RIVERSIDE COUNTY S (Signature of Notary Public) Commission e" �,. E�ires F 7, 2019 [SIGNATURES CONTINUE ON NEXT PAGE] DOC #2018-0421848 Page 8 of 9 NOTARY SEAL CERTIFICATION (Government Code 27361.7) San Diego Plow of Execution I CERTIFY UNDER THE PENALTY OF PERJURY THAT THE NOTARY SEAL ON THE DOCUMENT TO WHICH THIS STATEMENT IS ATTACHED READS AS FOLLOWS: NAME OF NOTARY: Sbn i a 0 nde Z COMMISSION NUMBER: 12 12 ^7(19Si DATE COMMISSION EXPIRES: �C} • r 2 O Z I COUNTY WHERE BOND IS FILED: R i �eYsi clz MANUFACTURER OR VENDOR NUMBER. N N fk 1 SIGNATURE: SYNRGO Agent PLACE OF EXECUTION: SAN DIEGO DATE: to / 22 / l I CERTIFY UNDER THE PENALTY OF PERJURY THAT THE NOTARY SEAL ON THE DOCUMENT TO WHICH THIS STATEMENT IS ATTACHED READS AS FOLLOWS: J NAME OF NOTARY: vani+u M • R - C-I 61mu COMMISSION NUMBER: 2d 9 0[Zcl0 DATE COMMISSION EXPIRES: re b• -1 , 2 o 19 COUNTY WHERE BOND IS FILED: P, ' It vs i de MANUFACTURER OR VENDOR NUMBER: SIGNATURE: SYNRGO Agent PLACE OF EXECUTION: SAN DIEGO DATE: 10 1 27- / I (R' DOC #2018-0421848 Page 9 of 9 THE CITY: City of La Quinta 78-495 Calle Tampico La Quinta, GA-92253 -lKFranK J. SPe vctcek 9kcr Frank S pevace K 9lCdJ�FSC�J . 1 UHl;J;1C �/� ty Manager Attest: Cit lerk Approved as to Form: Wzurntol/.-Q,sCity Attorney Date: Ifl .201ct� Dateec %e/ z• 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 k / V V-25 file - On r o 6 er 1 7 , 2018, before me, �!'e.5a -9 D M A50 V) , Notary Public, personally appeared r-6V) �-- So e-y 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. rERESArHOMPSON NotaryPublic- California z _ Riverside County Commission # 22W88 (Notary Seal) My Comm. Expires Jul 14, 2021 ■ (Signature of Notary Public) ' i BUSINESS SESSION ITEM NO. 2 City of La Quints CITY COUNCIL MEETING: October 16, 2018 STAFF REPORT AGENDA TITLE: APPROVE ASSIGNMENT AND ASSUMPTION AGREEMENTS FOR MEDIAN MAINTENANCE FOR MADISON AND MONROE STREETS ADJACENT TO THE CORAL MOUNTAIN DEVELOPMENT; CEQA: CATEGORICALLY EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO SECTION 15301 RECOMMENDATION 1. Find and determine the proposed assignments are categorically exempt under the California Environmental Act (CEQA) pursuant to Section 15301 of the CEQA Guidelines; 2. Approve the assignment and assumption agreements, substantially in the forms attached, for the median maintenance on Madison and Monroe Streets adjacent to the Coral Mountain Development; and, authorize the City Manager to execute the agreements and take actions necessary or proper to implement the approval of the agreements. EXECUTIVE SUMMARY • Madison and Monroe Streets have medians adjacent to the Coral Mountain Development, and the private property owners are responsible for median maintenance per recorded agreements. • Sunrise LQ, LLC (Sunrise) is under contract to purchase property from the owners who currently have the obligations to maintain the medians on Madison and Monroe Streets. • The median maintenance agreements allow for their assignment with the City's consent. FISCAL IMPAC'i - None. BACKGROUND/ANALYSIS Previously the City entered into agreements that guaranteed the continued maintenance of medians found on Madison and Monroe Streets adjacent to the Coral Mountain Development. The Madison Agreement was recorded in 2006, and the Monroe Agreement was recorded in 2014. Both the Madison and 217 Monroe Agreements authorize assignment of those agreements subject to the City's consent. The Monroe Agreement authorizes the owner of the Coral Mountain Development to assign its obligations under that agreement to the Andalusia at Coral Mountain Master Association. Sunrise, and its wholly owned subsidiary Andalusia County Club, LLC (ACC), request the City's consent to their assumption of the median maintenance agreements from the current property owners responsible for median maintenance. If the Council approves the assignment and assumption agreements as proposed (Attachments 1 and 2), the City (1) would consent to the assignment of the Monroe Agreement to Sunrise and ACC, and (2) would consent to the assignment of the Madison Agreement to Sunrise and ACC, and would allow Sunrise to assign the median maintenance agreement to the Andalusia at Coral Mountain Master Association. ENVIRONMENTAL REVIEIA The assignments to a new owner of the existing median maintenance agreements, which do not alter existing maintenance obligations, are categorically exempt from environmental review pursuant to Section 15301 (Class 1), subdivision (c) [Existing streets and similar facilities] and subdivision (h) [Maintenance of existing landscaping], of the Guidelines to the California Environmental Quality Act. ALTERNATIVES None proposed. Prepared by: Bill Ihrke, City Attorney Approved by: Frank J. Spevacek, City Manager Attachments: 1. Assignment & Assumption of Public Improvements Maintenance Agreement (Monroe Street) 2. Amendment To, Assignment & Assumption of Median Landscaping Maintenance Agreement (Madison Street) 218