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HomeMy WebLinkAbout01 TPFA AMEND TO JPA 09... (2)AGENDA REPORT TPFA NO. 1 09-23-02 MEETING DATE: TO: FROM: SUBJECT: SEPTEMBER 23, 2002 490-70 HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL, BOARD OF DIRECTORS OF TUSTIN COMMUNITY REDEVELOPMENT AGENCY, BOARD OF DIRECTORS OF TUSTIN PUBLIC FINANCING AUTHORITY ~ WILLIAM A. HUSTON, CITY MANAGER SPECIAL MEETINGS OF THE TUSTIN CITY COUNCIL, TUSTIN COMMUNITY REDEVELOPMENT AGENCY, AND TUSTIN PUBLIC FINANCING AUTHORITY RECOMMENDATION: Acting as the Tustin City Council, Tustin Community Redevelopment Agency, and Tustin Public Financing Authority, approve the following: City Council . Resolution No. 02-90 of the City Council of the City of Tustin authorizing the Execution of an Amendment to the Joint Exercise of Powers Agreement Creating the Tustin Public Financing Authority. . Resolution No. 02-91 of the City Council of the City of Tustin Approving a Quitclaim Deed from the City to the Tustin Public Financing Authority and authorizing the City Manager to execute such Quitclaim Deed and to take all necessary implementing actions. Community Redevelopment Agency . Resolution No. RDA 02-3 of the Board of Directors of the Tustin Community Redevelopment Agency Authorizing the Execution of an Amendment to the Joint Exercise of Powers Agreement Creating the Tustin Public Financing Authority. Tustin Public Financin_g Authority . Resolution No. TPFA 02-01 of the Board of Directors of the Tustin Public Financing Authority Authorizing Acceptance of a Quitclaim Deed, Execution of a Promissory Note and Deed of Trust, Recordation of the Quitclaim Deed and Deed of Trust, Delivery of the Promissory Note and copy of the Recorded Deed of Trust, and authorizing the Executive Director to accept both the Quitclaim Deed, execute the Promissory Note and Deed of Trust, and to take all necessary implementing actions. FISCAL IMPACT: None. DISCUSSION: In May of 2002, the City of Tustin ("City") and the Tustin Public Financing Authority ("Authority") entered into the Settlement and Release Agreement with the Santa Ana Unified School District ("SAUSD") (the "Settlement Agreement"). To secure the City's obligations under the Settlement Agreement, the Authority (which is a joint powers authority composed of the City and the Tustin Community Redevelopment Agency) agreed to secure an irrevocable Standby Letter of Credit in the amount of Sixty Million Dollars ($60,000,000.00) to be issued to SAUSD. However, if that could not be accomplished, the Authority agreed in the Settlement Agreement to deliver to SAUSD a Promissory Note in the amount of Sixty Million Dollars ($60,000,000.00) and a Deed of Trust for designated properties at MCAS, Tustin. The Authority has not been able to reach agreement with a bank to secure the Letter of Credit and therefore desires to provide SAUSD with the Note and Deed of Trust. In order for the Authority to fulfill its obligation to execute and deliver the Note and Deed of Trust, the property to be secured by the Deed of Trust must be transferred by the City to the Authority. The City desires to cooperate with the Authority by providing a Quitclaim Deed for the property to the Authority (Resolution No. 02-91). To clarify the powers of the Authority to accomplish its tasks under the Settlement Agreement, it is proposed that the Joint Powers Agreement that established the Authority be amended (Resolution No. 02-90). This Amendment will also need to be approved by the Tustin Community Redevelopment Agency (Resolution No. RDA 02-3). To comply with the Settlement Agreement, the Authority must accept the Quitclaim Deed, authorize execution of the Note and Deed of Trust, authorize recordation of the Quitclaim Deed and Deed of Trust, and authorize delivery of the Note and copy of the recorded Deed of Trust to SAUSD (Resolution No. TPFA 02-01). The proposed Deed of Trust is secured by approximately ninety-seven (97) acres ("Secured Property") identified in Section 4.3 and Exhibit F to the Settlement Agreement. Based upon recent evidence of the sales of comparable property and 2001 land value projections by the City's consultants, the current fair market value of the Secured Property exceeds Sixty-Seven Million Dollars ($67,000,000.00). CEQA The actions are solely to secure financial obligations. have or could have an effect on the environment. constitute a "project" under CEQA. None of the actions proposed will Accordingly, the actions do not Internet 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. TPFA 02-01 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TUSTIN PUBLIC FINANCING AUTHORITY AUTHORIZING ACCEPTANCE OF A QUITCLAIM DEED, EXECUTION OF A PROMISSORY NOTE AND DEED OF TRUST, RECORDATION OF THE QUITCLAIM DEED AND DEED OF TRUST, AND DELIVERY OF THE PROMISSORY NOTE AND COPY OF THE RECORDED DEED OF TRUST; AND AUTHORIZING THE EXECUTIVE DIRECTOR TO ACCEPT THE QUITCLAIM DEED, EXECUTE THE PROMISSORY NOTE AND THE DEED OF TRUST, AND TO TAKE ALL NECESSARY IMPLEMENTING ACTIONS. I. The Tustin Public Financing Authority finds as follows: A. On or about May 8, 2002, the City of Tustin ("City") contracted to acquire certain property located at the former Marine Corps Air Station ("MCAS") from the Untied States Government, which property has since been conveyed to the City. B. On or about May 10, 2002, the City entered into a Settlement and Release Agreement among the Santa Ana Unified School District ("District"), the City, the Tustin Local Redevelopment Authority for the U.S. Marine Corps Air Station, Tustin, and the Tustin Public Financing Authority ("Authority") (hereinafter referred to as the Settlement Agreement). C. Pursuant to the Settlement Agreement, the Authority desires to acquire property from the City and to furnish the District with a Promissory Note in the amount of Sixty Million Dollars ($60,000,000.00) and a Deed of Trust to secure the Note. D. The proposed acceptance of the Quitclaim Deed, approval of the Promissory Note and Deed of Trust, and all other actions contemplated herein are solely to secure financial obligations and are not a "project" within the meaning of the California Environmental Quality Act ("CEQA"). ~[I. The Tustin Public Financing Authority resolves as follows: A. That the actions contemplated herein are solely to secure financial obligations and are not a "project" within the meaning of CEQA. B. That the Promissory Note and Deed of Trust attached hereto as Exhibit "A" are approved and that the Chairperson or Vice Chairperson, in the Chairperson's absence, the Executive Director, and Secretary are authorized to sign the Note and Deed of Trust. Tustin Resolution No. Internet 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 C. That the Executive Director is authorized to accept the Quitclaim Deed as shown in Exhibit A of City Council Resolution No. 02-91, cause the recordation of the Quitclaim Deed and Deed of Trust, and cause delivery of the Promissory Note and copy of the recorded Deed of Trust to the District, and to take all other implementing actions. PASSED AND ADOPTED at a special meeting of the Tustin Public Financing Authority held on the 23rd day of September, 2002. JEFFERY THOMAS, CHAIRPERSON OR TRACY WILLS WORLEY, VICE CHAIRPERSON ATTEST: PAMELA STOKER SECRETARY -2- Internet 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT "A" (Promissory Note and Deed of Trust) -4- [DO NOT DESTROY THIS NOTE: WHEN PAID, THIS NOTE MUST BE SURRENDERED TO THE TRUSTEE FOR CANCELLATION BEFORE RECONVEYANCE OF THE DEED OF TRUST SECURING THIS NOTE WILL BE MADE ] PROMISSORY NOTE SECURED BY DEED OF TRUST $60,000,000.00 Effective Date: September 23, 2002 Tustin, California For value received, the Tustin Public Financing Authority, a joint powers agency (the "Authority"), promises to pay to the Santa Ana Unified School District, a political subdivision of the State of California ("SAUSD"), or order, the principal sum of SIXTY MILLION DOLLARS ($60,000,000.00) in lawful money of the United States of America, without set-off, deduction or counterclaim, on the terms and conditions below. This Note is made pursuant to the Settlement and Release Agreement (the "Agreement") effective May 31, 2002 (the "Effective Date"), among the City of Tustin, ("City") the Authority, and the Santa Ana Unified School District ("SAUSD"). The Authority's obligations hereunder are contingent upon non-payment or incomplete payment by City from the proceeds of land sales at MCAS-Tustin on the dates specified in paragraphs 3.1, 3.2, and 5.2 of the Agreement and as set forth below. Payment Option A: If SAUSD elects to acquire that certain 22 acre parcel of land (the "SAUSD Parcel"), described in Exhibit "B" to the Agreement by providing the City with written notice thereof (the "Acceptance Notice") in accordance with paragraph 2.2 of the Agreement, this Note shall be payable as follows: o , , If the City fails to pay to SAUSD the sum of Twenty Million Dollars ($20,000,000.00) in full on or before one (1) year from the Effective Date of the Agreement, or (b) one hundred twenty (120) days after date the Acceptance Notice is provided to the City, whichever is later, as required by paragraph 3.1 of the Agreement, then the Authority shall immediately pay to SAUSD the sum of Twenty Million Dollars ($20,000,000.00); 151846-Promissory Note If the City fails to pay to SAUSD the further sum of Eighteen Million Dollars ($18,000,000.00) in full within eighteen (18) months from the Effective Date of the Agreement, or within one hundred twenty (120) days after date the Acceptance Notice is provided to the City, whichever is later, as required by paragraph 3.1 of the Agreement, then the Authority shall immediately pay to SAUSD the additional sum of Eighteen Million Dollars ($18,000,000.00) for a total of Thirty-Eight Million Dollars ($38,000,000.00), and If the City conveys fee title to the SAUSD Parcel to SAUSD, and if, within one (1) year of such conveyance, SAUSD elects to reconvey the SAUSD Parcel to the City by giving written notice thereof (the "Reconveyance Notice") to the City, pursuant to paragraph 5.2 of the Agreement, and, not earlier than one (1) year after providing the Reconveyance Notice, SAUSD reconveys the SAUSD Parcel to the City, then the Authority shall pay to SAUSD the further sum of Twenty-Two Million Dollars ($22,000,000.00) concurrently with such reconveyance. If, however, SAUSD fails to provide the City with the Reconveyance Notice within one (1) year of the City's conveyance of the SAUSD Parcel, then the Principal Sum of this Note shall be reduced by Twenty-Two Million Dollars ($22,000,000.00), such that timely payment of the amounts set forth in paragraphs 1 and 2 above shall be deemed to fully satisfy the monetary obligations of the Authority to SAUSD under the terms of this Note. Payment Option B: If SAUSD elects not to acquire the SAUSD Parcel and provides the City with written notice thereof (the "Declination Notice") in accordance with paragraph 2.3 of the Agreement, then this Note shall be payable as follows: If the City fails to pay to SAUSD the sum of Thirty Eight Million Dollars ($38,000,000.00) in full within one (1) year from the Effective Date of the Agreement or one hundred twenty (120) days after the Declination Notice is provided to the City, whichever is later, as required by paragraph 3.2 of the Agreement, then the Authority shall immediately pay to SAUSD the sum of Thirty-Eight Million Dollars ($38,000,000.00); and . If the City fails to pay to SAUSD the further sum of Twenty-Two Million Dollars ($22,000,000.00) within twelve (12) months from the date of the Declination Notice, as required by paragraph 3.2 of the Agreement, then the Authority shall immediately pay to SAUSD the additional sum of Twenty- Two Million Dollars ($22,000,000.00) for a total of Sixty Million Dollars ($60,000,000.00). This Note is secured by a Deed of Trust and Assignment of Rents ("Trust Deed") dated September 23, 2002, executed by the Authority in favor of SAUSD which encumbers certain real property received by the Authority from the City within the former Marine Corps Air Station-Tustin, more particularly described in Exhibit "A" to the Trust Deed, as security for repayment of the amounts due under this Note (the "Secured Property"). SAUSD shall have the option to declare the entire outstanding balance hereunder immediately due and payable: (a) if any part of the principal under this Note is not paid by Authority when due and remains unpaid after a date specified in any notice from SAUSD to the Authority; (b) if any default under any other instrument securing or executed in connection with this Note is not cured by a date specified in any notice from the beneficiary thereunder to the Authority, (c) upon the Authority's sale of the Secured Property; (d) upon the Authority's abandonment or vacation of the Deed of Trust Property; or (e) upon the Authority's renting or leasing the Secured Property to any third party. If any payment of principal under this Note. shall not be made by the date on which such payment is due, simple interest shall thereafter accrue on the entire outstanding balance of this Note at an annual rate often percent (10%). SAUSD's imposition or collection of such interest shall not affect SAUSD's right to collect any other amounts due hereunder, to declare a default hereunder or under the Trust Deed, or to exercise any other right or remedy of SAUSD. The Authority may prepay all or any part of the unpaid balance in advance at any time without penalty. The Authority shall make all payments due hereunder, as and when due, to 151846/Tustin/Promissory Note SAUSD at 1601 East Chestnut Avenue, Santa Ana, California 92701-6322, or at such other address as SAUSD may, from time to time, designate in writing. All payments made by the City hereunder shall be applied first to any accrued by unpaid interest, and the remainder to principal. All persons and entities now or hereafter liable for payment of the principal due under this Note, or any part thereof, do hereby expressly waive presentment for payment, notice of dishonor, protest and notice of protest, and agree that the time for the payment of all or any part of the outstanding balance under this Note may be extended without releasing or otherwise affecting their liability on this Note or the lien of the Trust Deed or any other security securing this Note. Failure by SAUSD to exercise any rights under this Note or the Trust Deed upon any default by Authority shall not constitute a waiver of such rights in the event of any subsequent default by Authority. Notwithstanding anything to the contrary set forth herein, in no event shall the amounts paid hereunder exceed the highest rate permitted under any usury laws applicable to SAUSD. If any amounts collected by SAUSD hereunder exceed such rate, said excess amounts shall be applied to the reduction of the unpaid principal balance under this Note and not to the payment of interest, or, if such excess amounts exceed the unpaid balance of principal under this Note, such excess amounts shall be refunded to City. If any action at law or otherwise is necessary to enforce or interpret the terms of this Note, the prevailing party shall be entitled to reasonable attorneys', accountants' and experts' fees, costs and necessary disbursements in addition to any other relief to which that party may be entitled. As used herein, the term "prevailing party" shall include any party against whom a cause of action, complaint, cross-complaint, counterclaim, cross-claim, or third party complaint is voluntarily dismissed with or without prejudice. TUSTIN PUBLIC FINANCING AUTHORITY By: By: Name: Jeffery Thomas Title: Chairperson (or) By: Name: Tracy Wills Worley Title: Vice Chairperson ATTEST: By: Name: Pamela Stoker Title: Secretary Name: William Huston Title: City Manager of the City of Tustin, Executive Director 151846/Tustin/Promissory Note RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Ruben A. Smith, Esq. Alvarado, Smith & Sanchez 4 Park Plaza, Suite 1200 Irvine, California 92614 (Space above line for Recorder's use) DEED OF TRUST WITH ASSIGNMENT OF RENTS The undersigned declares that DOCUMENTARY TRANSFER TAX is $0.00. This conveyance is to secure a debt. R & T Code § 11921. Assessor's Parcel Number: This Deed of Trust is made September 23, 2002 by the Tustin Public Financing Authority (the "Authority"), whose address is 300 Centennial Way, Tustin, California 92780 ("Trustor"), and First American Title Insurance Company, a California Corp. ("Trustee"), whose address is: 2 First American Way, Santa Ana, California 92707, for the benefit of Santa Ana Unified School District ("Beneficiary"), whose address is 1601 East Chestnut Avenue, Santa Ana, CA 92701. Grant of ProperS. in Trust. Trustor grants to Trustee in Trust, with Power of Sale, that property in the City of Tustin, County of Orange, State of California, the legal description of which is attached hereto as Exhibit "A" and incorporated herein by this reference, together with the rents, issues and profits thereof, subject, however, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits for the purpose of securing (a) payment of the sum of Sixty Million Dollars $60,000,000 with interest thereon according to the terms of a promissory note or notes of even date herewith made by Trustor, payable to order of Beneficiary, and extensions or renewals thereof (the "Note"), (b) the performance of each agreement of Trustor incorporated by reference or contained herein, and (c) payment of additional sums and interest thereon which may hereafter be loaned to Trustor, or Trustor's successors or assigns, when evidenced by a promissory note or notes reciting that they are secured by this Deed of Trust. 1. Indebtedness Due on Sale of Proper .ty. If Trustor sells, conveys or otherwise transfers the Property, or any part thereof, or any interest therein, or if Trustor is divested of Trustor's title or any interest therein in any other manner, whether voluntarily or involuntarily, without the written consent of Beneficiary being first had and obtained, then Beneficiary shall have the right, at its option, except as prohibited by law, to declare any indebtedness or obligations secured hereby (irrespective of the maturity date specified in any note evidencing same), immediately due and payable. 2. Protection of Security. To protect the security of this Deed of Trust, Trustor agrees to all of the following: Deed of Trust doc 151869 clean 6vl 2.1 Condition of Prooer~_. Trustor shall keep the Property in good condition and repair, including without limitation performing the specific acts required by this Section 3.1 and refraining from causing or allowing the specific acts prohibited by this Section 3.1. Trustor shall not remove or demolish any building on the Property. Trustor shall complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged or destroyed on the Property and shall pay when due all claims for labor performed and materials furnished therefor. Trustor shall comply with all laws affecting the Property or requiring any alterations or improvements to be made thereon. Trustor shall not commit or permit waste of the Property. Trustor shall not commit, suffer or permit any act upon the Property in violation of law. Trustor shall cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the character or use of the Property may be reasonably necessary. 2.2 Insurance. Trustor shall provide, maintain and deliver to Beneficiary fire, casualty and other insurance satisfactory to and with loss payable to Beneficiary. The amount collected under any fire, casualty or other insurance policy may be applied by Beneficiary upon any indebtedness secured hereby and in such order as Beneficiary may determine, or at Beneficiary's option the entire amount so collected or any part thereof may be released to Trustor. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. 2.3 Legal Proceedings. Trustor shall appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee. Trustor shall pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this Deed of Trust. 2.4 Taxes. Trustor shall pay, at least ten days before delinquency, all taxes and assessments affecting the Property (including without limitation assessments on appurtenant water stock). Trustor shall also pay all encumbrances, charges and liens, with interest, on the Property or any part thereof, which are or appear to be prior or superior to the lien of this Deed of Trust, as well as all costs, fees and expenses of the trust created by this Deed of Trust. 2.5 Right to Cure. Should Trustor fail to make any payment or to do any act as herein provided, then Beneficiary or Trustee may (but without obligation so to do and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof); (a) make or do the same in such manner and to such extent as either Trustee or Beneficiary may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon the Property for such purposes; (b)appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; (c) pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgment of either Trustee or Beneficiary appears to be prior or superior to the lien of this Deed of Trust; and, (d) in exercising any such powers, pay necessary expenses, employ counsel and pay Trustee's and/or Beneficiary's reasonable fees. 2.6 Reimbursement of Expenses. Trustor shall pay immediately and without demand all sums expended by Beneficiary or Trustee pursuant to the terms of this Deed of Trust, with interest from date of expenditure at the amount allowed by law in effect at the date hereof. 2.7 Cost of Demand {Payoff} Statement. Trustor shall pay the amount required by Beneficiary for the issuance of any statement provided for by law in effect at the date hereof 151869 clean 2 regarding the obligation secured hereby; provided, however, that the amount required by Beneficiary shall not exceed the maximum allowed by law at the time said statement is demanded. 3. Assignment of Awards. Any award of damages in connection with any condemnation for public use of or injury to the Property or any part thereof is hereby assigned and shall be paid to Beneficiary, who may apply or release such moneys received by Beneficiary in the same manner and with the same effect as above provided for disposition of proceeds of fire or other insurance. 4. Acceptance of Payment Does Not Constitute Waiver. By accepting payment of any sum secured hereby after its due date, Beneficiary does not waive Beneficiary's right either to require prompt payment when due of all other sums so secured or to declare default for failure so to pay. 5. Maps~ Easements, Subordination and Partial Reconveyance. At any time or from time to time, without liability therefor and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and the Note for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, Trustee may: (a) reconvey any part of the Property; (b)consent to the making of any map or plat thereof; (c) join in granting any easement thereon; or (c) join in any extension agreement or any agreement subordinating the lien or charge hereof. 6. Reconveyance. Upon written request of beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and the Note to Trustee for cancellation and retention or other disposition as Trustee in its sole discretion may choose and upon payment of its fees, Trustee shall reconvey, without warranty, the Property then held hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. The Grantee in such reconveyance may be described as "the person or persons legally entitled thereto." 7. Assignment of Rents. As additional security, Trustor hereby gives to and confers upon Beneficiary the right, power and authority, during the continuance of the trust created hereby, to collect the rents, issues and profits of the Property, reserving unto Trustor the right, prior to any default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, to collect and retain such rents, issues and profits as they become due and payable. Upon any such default, Beneficiary may at any time without notice, either in person, by agent, or by a receiver to be appointed by a court, and without regard to the adequacy of any security for the indebtedness hereby secured, enter upon and take possession of the Property or any part thereof, in Beneficiary's own name sue for or otherwise collect such rents, issues, and profits, including those past due and unpaid, and apply the same, less costs and expenses of operation and collection (including reasonable attomey's fees), upon any indebtedness secured hereby, and in such order as Beneficiary may determine. The entering upon and taking possession of the Property, the collection of such rents, issues and profits and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. 8. Power of Sale. Upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, .Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand 151869 clean 3 for sale and of written notice of default and of election to cause the Property to be sold, which notice Trustee shall cause to be filed for record. Beneficiary also shall deposit with Trustee this Deed of Trust, the Note and all documents evidencing expenditures secured hereby. After the lapse of such time as may then be required by law following the recordation of said notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell the Property at the time and place fixed by it in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may postpone the sale of all or any portion of the Property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its deed conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary, may purchase at such sale. After deducting all costs, fees and expenses of Trustee and of this Trust, including cost of evidence of title in connection with sale, Trustee shall apply the proceeds of sale to payment off (a) all sums expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in effect-at the date hereof; (b) all other sums then secured hereby; and (c) the remainder, if any, to the person or persons legally entitled thereto. 9. Successor Trustees. Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or counties where the Property is situated, shall be conclusive proof of proper substitution of such successor Trustee or Trustees, who shall, without conveyance from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties. Said instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded and the name and address of the new Trustee. 10. Successors and Assigns. This Deed applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term Beneficiary shall mean the owner and holder, including pledgees of the Note, whether or not named as Beneficiary herein. 11. Acceptance of Trust. Trustee accepts the trust created hereby when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. 12. Notice of Sale. Trustee is not obligated to notify any party hereto of pending sale under any other deed of trust or of any action or proceeding in which Trustor, Beneficiary or Trustee shall be a party unless brought by Trustee. 151869 clean 4 13. Request for Notice. The undersigned Trustor requests that a copy of any notice of default and any notice of sale hereunder be mailed to Trustor at the following address: 300 Centennial Way, Tustin, California 92780. "Trustor" TUSTIN PUBLIC FINANCING AUTHORITY By: Name: Jeffery Thomas Title: Chairman or By: Name: Title: Date: By: Name: Title: Date: Attest: By: Name: Title: Tracy Wills Worley Vice Chairperson William A. Huston Executive Director Pamela Stoker Secretary STATE OF CALIFORNIA ) ) ss. COUNTY OF ) On , 2002, before me, , personally appeared , personally known to me (or 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 authorized signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. 151869 clean 5 EXHIBIT "A" Legal Description of Deed of Trust Property [Parcel 1 and Parcel 2] 151869 clean 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 16 17 18 19 20 21 22 23 24 25 26 PSOMAS Legal Description Exhibit "A" Parcel 1 Parcel I-D-3 and Parcel I-D-4 in the City of Tustin, County of Orange, State of California, as described in the document recorded May 14, 2002 as Instrument No. 20020404594 of Official Records in the office of the .County Recorder of said County, excepting therefrom that portion lying southeasterly, easterly and northeasterly of the following described line: Beginning at the northeasterly terminus of that certain course in the generally southeasterly line of said Parcel I-D-4 being described as "North 29°47'11" East 40.70 feet" thence North 74o44'39" East 595.55 feet to the beginning of a curve concave southwesterly having a radius of 2290.07 feet, said curve being concentric with and 120 feet southwesterly of the generally northeasterly line of said Parcel IoD-4, a radial line to said beginning of curve bears North 79055'32" East; thence northerly and northwesterly along said curve 1537.75 feet thoUgh a central angle of 38°28'24"; thence continuing parallel to said generally northeasterly line North 48032'52" West 807.56 feet; thence North 49°30'10" West 245.17 feet; thence South 40029'50" West 12.00 feet; thence North 49°30'10" West 54.88 feet; thence North 48032'53" West 125.33 feet; thence North 41 °27'07" East 12.00 feet to a line parallel with and 130 feet southwesterly of the northeasterly line of said Parcel I-D-3; thence parallel with said northeasterly line North 48°32'53'' West 50.96 feet to the northwesterly line of said Parcel I-D-3. Also excepting therefrom that portion lying southwesterly of the following described line: Beginning at the above described Point of Beginning thence North 21 o 16' 15" West 82.64 feet to the beginning of a curve concave southwesterly having a radius of 1354.04 feet; thence northwesterly along said curve 660.46 feet though a central angle of 27°56'50"; thence North 49013'05" West 477.09 feet to the beginning of a curve concave southwesterly having a radius of 1354.04 feet; thence northwesterly along said curve Page 1 of 2 M:X2TUS010500~survey\legalsXlegal-loan-pcl-01 .doc Last printed 7/31/02 2:35 PM 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 PSOf, IAS Legal Description Exhibit "A" Parcel 1 · 603.50 feet through a central angle of 25°32'13'" , thence South 15°14'42" WeSt 12.00 feet to the beginning of a non-tangent curve concave southerly having a radius of 1342.04 feet, a radial line though beginning of curve bears North 15°14'42" East, thence westerly along said curve 178.48 feet though a central angle of 7o37' 12"; thence North 7o37'30'' West 12.00 feet to the beginning of a non-tangent curve concave southerly having a radius of 1354.04 feet, a radial line though said beginning of curve bears North 7°37'30'' West; thence westerly along said curve 34.27 feet though a central angle of 1 °27'00"; thence North 83°49'30" East 15.86 feet to the westerly line of said Parcel I-D-3. Containing 2,055,000 square feet or 47.18 acres, more or less. As shown on Exhibit "B" attached hereto and by this reference made a part hereof. Prepared under my supervision Walter A. Sheek P.L.S. 4838 Expires 9/30/04 M 52TUS010500~survey~legals\legal-loan-pcl-01.doc Last printed 7/31/02 2:35 PM Page 2 of 2 EXHIBIT B .... Une Table : , Curve Table No. Bearing Distance NC~. ~ Delta Radius I Length L1 N83'58'12"E 12.06' 04'15'58" 2422.07i 180.34' "L2 ~ N83'58'10"E 12.00' C2 01'32'25" 1860.05~ 50,00' L3 N43'38'o7"W 31.73' ""C3 05'31'37" 1872.05] 180.58' I I N48'32'52"W .... 807-.56L- [ .... ---- · 546.14' ~ · . · ' POFL P'~\F~'~~~ N48'32'52"W "~ ~ ,~-- 1~D~~ . · '7.18 Acres ' '~ xL=605.50' ~,1/~,~ NOTAPART ..//___ ' '. , , -~o~. '.~,,~°'L ..' '' ' ~~' . ~ I ' ' o ' i, ' ' · XX I N40'40 0'6"E .... , "~ ~~~o.oo' , ~ S49'19'54"E 123~71' ,n~~~ · s49.,9~4~~ ~ -- N49'19'54'~ ~.~4; ~~ -'. -----~~5~'~ . .: ,'" -. DESCRIP~: Parcel 1 DRAF~D CHL P S 0 MCAS TUSTIN Line Table No. Bearing Distance L1 N83'58'12"E 12.06' "L~3 N83'58'10"E 12.00" N43'38'o7"W 31.73' Curve Table I 'No. Delta Radius I Length C1 04'15'58" 2422.07i 180.34' C2 01'32'25" 1860.05~ 50,00' .... C3 05'31'37" 1872.05'I 180.58' S38' 12'5~ 128.21' S85' 18'51 38.94' S39'10'31 "W 111.00' A=29'28'47" R= 1348.04' L=693.59' EXF BIT B I POR, I PARCEL-ND--8 I NOT A PART '1 I N41'27'07'E 90'46'4t N49'30'10'W 245.17' PARCEL1 · ~ 41 18 Acres PARCEL INST, No. 20020404fig4, 0 150' 300' SCALE: 1"=300' I C) Cu~e Toble (~ Radius Delto Length C1 42.00' 16'18'19" 11.95' C2 58.00' 13'50'56" 14.02' C3 1336.04' 01'03'49" 24.80' C4 58.00' 14'09'13"~ 14.33' C5 42.00' 14'09'13" 10.38 C6 1464.04' 02'52'44' 73.56' C7 154.65' 12'53'14 34.78' C8 177.66' 09'12'13' 28.54' C9 '1201.91 01'12'21' 25.30' C10 1446.09' 03'19'05' 83.74' Cll 42.00' 1¢09'13" 10.38' C12 58.00' 1¢09'13" 14.35' 412.. C13 58.00' 14'09'13" 14.33' .... C14 42.00' 14'09'13" 10.38' C15 1354.04' 01'27'00" 34.27' C16 1342.04'~ 07'37'12"'178.48 C17 1354.04'i 25'32'13"603.50' BARRANCA ~- ' ~ -"2617.62'-- N49'19'41"W 2645.09' Z~ = 13'28'48' R---l: L=285.39' s6 4'5_9~_6"_.E_ .... '--~O) A= 12'20'31" R= 1192.34'. L--256.84' PARCEL NOT A PART N48'32'52"W -546.14'- ..................... N48'32'52"W '- 807.56' -,~ Distance i,i z l;g ¸7' ,36 F- n <~ F- O Z I-- W W 'T' W W s4g'19'54"E 1234.71' S49'1g'54"E 5282.78' DESCRIPTION: PARCEL 1 MCAS-TUSTIN FARMSTRONG AVE. SHEET 2 OF 2 PSOMAS 3187 Red HI Awm SCALE 1' = 300' DRAFTED CHL CHECKED WA5 DATE JULY, 2002 dOB' NUMBER 2TUS010500 T2 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 PSOIdAS Legal Description Exhibit "A" Parcel 2 Parcel I-D-3 and Parcel I-D-4 in the City of Tustin, County of Orange, State of California, as described in the document recorded May 14, 2002 as Instna'nent No. 20020404594 of Official Records in the office of the County Recorder of said County, excepting therefrom that portion lying northeasterly of the following described line: Beginning at the northeasterly terminus of that 'certain course in the generally southeasterly line of said Parcel I-D-4 being described as "North 29°47'11" East 40.70 feet"; thence North 21 °16'15" West 82.64 feet to the beginning of a curve concave southwesterly having a radius of 1354.04 feet; thence northerly and northwesterly along said curve 660.46 feet though a central angle of 27°56'50"; thence North 49o13'05'' West 477.09 feet to the beginning of a curve concave southwesterly having a radius of 1354.04 feet; thence northwesterly along said curve 603.50 feet through a central angle of 25°32'13"; thence South 15o14'42'' West 12.00 feet to the beginning of a non-tangent curve concave southerly having a radius of 1342.04 feet, a radial line though beginning of curve bears North 15°14'42'' East; thence westerly along said curve 178.48 feet though a central angle of 7°37'12"; thence North 7037'30" East 12.00 feet to the beginning of a non-tangent curve concave southerly having a radius of 1354.04 feet, a radial line though said beginning of curve bears North 7037'30" West; thence westerly along said curve 34.27 feet though a central angle of 1 °27'00"; thence North 83o49'30'' West 15.86 feet to the westerly line of said Parcel I-D-3. M52TUS010500~survey\legalsXlegaMoan-pel-O2.doc Last printed 7/31/02 2:07 PM Page 1 of 2 1 2 3 4 .5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 PSOMAS Legal Description Exhibit "A" Parcel 2 Containing 2,205,470 square feet or 50.63 acres, more or less. As shown on Exhibit "B" attached hereto and by this reference made a part hereof. Prepared under my supervision Walter A. Sheek P.L.S. 4838' Expires 9/30/04 M:~2TUS010500ksurvey\legalsXlegal-loan-pel-02.doc Last printed 7/31/02 2:07 PM Page 2 of 2 EXHIBIT B Line Table Curve Table No, Bearing Distance No. Delta Radiusj Length L1 N83'58'12"E 12.06' Cl 04'15'58" 2422.07i 180.34'= L2 N83'58'10"E 12.00' C2 01'32'25". 1860.05 L3 N43'58'O7"W 31.75' C3 05'31'37" I 1872.05't 180.58'i I I N48'52'52"W ....... 807..56L- ................. 546.14' ~..---- L--1558.10.' ~u~J ,~), R~ 1354.04'~ A=25'32'13' . .  L~660.~6' . . ~1 ~ - o ~5o' ~o0' ~ ' , S49'19'54"Ec ~ N49'~9'54"~ ~9.24' ~~ ..... ---~5~'~ ~ , DRAF~D CHL P S 0 __ . Line Table No, Bearing Distance L1 N 83'58'12"E 12.06' L2 N83'58'10"E 12.00' L3 N43'58'O7"W 31.73' Curve Table No. Delta Radius j Length Cl 04'15'58" 2422.07i 180.34' C2 01'32'25" 1860.05~ 50.00' C3 05'31'37" 1872.05't 180.58' EXHIBIT B S38' 12'5~ 128.21' S85' 18'51 38.94' S39' 10'31 "W 111.00' 90'46'4; A=29'28'47" R= 1348.04' L=693.59' PARCEL 1--:D--,3 JNST, NO, 200204045~94, 0 150' ,300' SCALE: 1"=300' A = 13'28'48 R=121 L=285.39' Curve Toble (~ Rodius Delto Length Cl 42.00' 16'18'19" 11.95' C2 58.00' 13'50'56" 14.02' C3 1336.04' 01'03'49" 24.80' C4 58.00' 14'09'13" 14.33' C5 42.00' 14'09' 13" 10.38 C6 1464.04' 02'52'44, 73.56' C7 154.65' 12'53'14: 34.78' C8 177.66' 09'12'13' 28.54' C9 1201.91 01'12'21 25.30' C10 1446.09' 03'19'05' 83.74' Cll 42.00' 14'09'13' 10.38' C 12 58.00' 14'09' 13" 14.33' C13 58.00' 14'09'13" 14.33' C14 42.00' 14'09'13" 10.38' C15 1354.04' 01'27'00' 34.27' C16 1342.04' 07'37'1.2': 178.48' C17 1354:04' 25'32'13': 603.50' C18 1446.09' 00'37'03' 15.59' 41 /%-- 12'20'31" R=I 1 L=256.84' BARRANCA 2617.62' -- ~ N49' 19'41 "W 2645.09' N48'32'52"W · .. 546. Une Tgbl~ (~ Beoring Distonce L1 S04'41 '11 "E 1.44' L2 S06'$6'35"E 32.98' ,,, L3 S06' 10'32"W 34.00' L4 S20' 19'45"W 36.66' L5 S06' 10'32"W 50.00' L6 S21'56'30'~/ 31.37' L7 S28' 19'49"W 55.50' L8 S40'40'20"W 104.44' L9 S26'31 '07"W 36.66' L10 S40'40'20"W 60.00' L11 S54'49'33"W 36.66' L12 S40'40'20'W 43.00'" L13 N83'49'30"W 15.86' L14 S51'10'31"W 38.18' , L, 15 NO7'37'30"E PAD 12.00' L16 S15'14'42"W RAD 12.00' ........ L17S49' 18'24"E 259.57' L18 N49'19'21 "W 203.87' w PARCEL 2 50.65 Acres -79.36 S49'19'54"E 1234.71 ---- 4.53' S49'19'54"E 5282.78' FARMSTRONG AVE. I DESCRIPTION: PARCEL 2 MCAS-TUSTIN SHEET 2 OF 2 PSOMAS 31~7 Ild HII Avmue (7~4)m-Tm SCALE 1" = 300' DRAFTED CHL CHECKED WAS DATE JULY, 2002 JOB NUMBER 2TUS010500 T2 I-- W W T O3 W W