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HomeMy WebLinkAboutRDA 05 PURCHASE PROP 12-06-99AGENDA DATE: DECEMBER 6. 1999 RDA 5 12-06-99 t n t e r- C o m ..... TO: FROM: SUBJECT: WILLIAM A. HUSTON, EXECUTIVE DIRECTOR REDEVELOPMENT STAFF PURCHASE OF PROPERTIES AT 14741 AND 14751 NEWPORT AVENUE SUMMARY: This action requests certification of a Negative Declaration and approval of a Purchase and Sale Agreement for properties located at 14741 and 14751 Newport Avenue plus ancillary actions. RECOMMENDATION It is recommended that the Tustin Community Redevelopment Agency: Adopt Resolution No. RDA 99-3, certifying the Final Negative Declaration for acquisition of the properties at 14741 and 14751 Newport Avenue. . Approve the Purchase and Sale Agreement by and between Dennis S. Smith and the Community Redevelopment Agency of the City of Tustin for tl~e properties located at 14741 and 14751 Newport Avenue and authorize the Assistant City Manager to execute said Agreement. . Appropriate $715,000 from the South Central Redevelopment Project Low and Moderate Income Housing Set-Aside Fund to be used for acquisition of the subject property. . Authorize the Assistant City Manager to execute all escrow documents and enter into a property management agreement for leasing, management and maintenance of the subject properties, subject to approval by the City Attorney. FISCAL IMPACT If the Purchase and Sale Agreement is approved, the Redevelopment Agency will pay a total of $705,000, plus any pro-rations of taxes, bond or assessments on the property and the City's portion of closing costs. BACKGROUND On June 7, 1999, Dennis S. Smith, an owner participant in the South Central Redevelopment Project and owner of properties at 14741 and 14751 Newport Avenue, submitted an offer to sell the properties to the Tustin Community Redevelopment Agency. The South Central Redevelopment Plan provides that an owner of real property in the Project Area shall be given an opportunity to participate in redevelopment, including offering in writing to sell their properties to the Agency for its fair market value, and that the Agency must respond to such written offer within 18 months from the date of receipt of the offer. rda/RDAsharedfPendingSmithAcquisifion/staffreportmemo William A. Huston December 6, 1999 Page 2 With negotiation direction from the Redevelopment Agency, Agency staff responded with a counter offer to purchase the properties at their fair market value as determined by appraisals of the properties prepared by Harry B. Holzhauer and Associates, dated October 21, 1998. The counter offer was contingent on the Redevelopment Agency's inspection of the condition of the properties and Phase 1 Environmental Site Assessment. Subsequent property inspections and the Phase 1 investigations identified conditions on the property that were rex4ewed by the appraiser and determined not to be cause for adjustments to the appraised value that is reflected in the purchase price of $705,000. Terms and conditions of the proposed purchase agreement are consistent with the appraisals with adjustments for property conditions that were identified by contingent and limiting conditions included in the appraisal's scope as required under California Redevelopment Law. The Seller acknowledges that the purchase and sale of the property has been negotiated under the threat of eminent domain, and that in the event escrow fails to Close by reason of a default by the Seller, the Seller has waived any claim to any relocation assistance and any severance damages under any eminent domain proceeding commenced at any time thereafter by the City of Tustin with respect to the properties. Tenant Nondisplacement Notices as required under Section 6008(3)(F) of California Title 25 Housing and Community Development Regulations were delivered to and acknowledged as being received by the residential tenants at the properties in the form of Tenant Estoppel Certificates. The Estoppel Certificates reflect eight tenant household occupancies under month-to-month rental agreements with a total monthly rent amount of $6,180.00. If these tenants are displaced in the furore, they may be eligible for relocation assistance from the Redevelopment Agency. PROPOSED SALE TERMS The following are the terms and conditions of the proposed purchase and sale agreement: relTnS 1. The purchase price will be $705,000 payable in cash through escrow. 2. Seller and Agency to each pay one half (1/2) of the escrow and closing costs, and Seller shall also pay the costs of the ALTA title insurance. 3. Upon close of escrow, the escrow holder will pay to the Agency (on Seller's account) proceeds in the amount of $5,755.00, which is the total amount of prepaid rents and security deposits paid by tenants and held by Seller, such amount shall be transferred to the Agency and held for the accounts of the Tenants. Conditions 1. . , . Title to the property will be delivered free and clear of all monetary liens and encumbrances subject only to month-to-month rentals, which have been identified and verified by duly signed tenant estoppel certificates delivered to the Agency prior to the open of escrow. Escrow to open immediately after the approval by Agency of the Purchase and Sale Agreement with the intent to close escrow within thirty (30) days thereafter. Seller and Agency will each acknowledge that the parties have agreed upon the purchase price prescribed herein and have taken into account any claim the Seller might have for relocation assistance and/or benefits. Agency will acknowledge that the parties have agreed upon the purchase price prescribed herein and have taken into account the asbestos containing materials found on the property as described in a Phase I Environmental Assessment and Asbestos Survey that was completed by a competent environmental analysis firm, Converse Consultants on August 27, 1999. William A. HuSton December 6, 1999 Page 3 NEGATIVE DECLARATION Under the Califomia Environmental Quality Act (CEQA), the Redevelopment Agency must consider the potential environmental impacts of any discretionary actions it wishes to undertake. Staff prepared an initial study and determined that the proposed acquisition of property would have no significant effect on the environment, and a Negative Declaration has been prepared. Pursuant to the requirements of CEQA, staff issued a public notice of this finding, allowing for public comments on the initial study through August 27, 1999. No public comments were received. A copy of the initial study and Negative Declaration is attached for your review. Staff therefore recommends adoption of Resolution No. RDA 99-3 certifying the Negative Declaration and approval of the Purchase and Sale Agreement and ancillary actions. James A. Draughon // r Senior Project Manager Attachments RESOLUTION NO. RDA 99-3 A RESOLUTION OF THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF TUSTIN CERTIFYING THE FINAL NEGATIVE DECLARATION AS ADEQUATE IN ACCORDANCE WITH CEQA FOR THE PURCHASE OF PROPERTIES LOCATED AT 14741 AND 14751 NEWPORT AVENUE The Community Redevelopment Agency ("Agency") of the City of'Tustin does hereby resolve as follows: I. The Agency finds and determines as follows: mo The proposed purchase of property is considered a "project" pursuant to the terms of the California Environmental Quality Act (CEQA). Bo A Negative Declaration has b'een prepared for this project, and has been distributed for public review. C. The public review period has closed with no comments received. D. The Initial Study for the project indicated no environmental impacts to fish and game. II. A Final Negative Declaration has been completed, in compliance with CEQA and the State Guidelines. The Community Redevelopment Agency of the City of Tustin, having approval authority for the proposed property purchase, has received and considered the information contained in the Negative Declaration, prior to approving the proposed project, and finds that the Negative Declaration adequately discussed the environmental effects of the proposed project. On the basis of the initial study and comments received during the public review process, the Agency has found that the proposed project would not have significant impacts on the environment. III. The proposed project is de minimis in its effect on fish and wildlife and therefore is exempt from Fish and Game Fees (Fish and Game Code Section 711.4). PASSED AND ADOPTED at a regular meeting of the Tustin Community Redevelopment Agency of the City of Tustin held on. 1999. TRACY WILLS WORLEY, Mayor ATTEST: 'PAMELA STOKER City Clerk COMMUNITY DEVELOPMENT DEPARTMENT 300 Centennial Way, Tustin, CA 92780 (7]4) 573-3100 INITIAL STUDY BACKGROUND Project Title: Approval and Authorization by the City of Tustin Community Redevelopment Agency to Enter into a Purchase and Sell Agreement for Acquisition of the Properties at 14741 and 14751 Newport Avenue. Lead Agency: City of Tustin 300 Centennial Way Tustin, California 92780 Lead Agency Contact Person: Minoo Ashabi Phone: 714/573-3126 Project Location: 14741 and 14751 Newport Avenue · Project Sponsor's Name and Address: City of Tustin Redevelopment Agency General Plan Designation: High Density Residential Zoning Designation: Multiple Family Residential (R-3) Project Description: The City of Tustin Community Redevelopment Agency is proposing to enter into a purchase and sell agreement for acquisition of the properties located at 14741 and 14751 Newport Avenue. The subject acquisition is in response to an Owner Participant's offer to sell Property located in the South Central Redevelopment Project Area pursuant to the Redevelopment Plan. The Agency may purchase the properties in response to the Owner's offer to sell and for the purpose of a potential public improvement project in the Project Area. No public improvement has been identified at this time and no physical improvements are proposed in conjunction with property acquisition. Surrounding Uses: North: Residen{ial South: Residential East: Commercial West: Residential Other public agencies whose approval is required: ~ Orange County Fire Authority [~ City oflrvine ~ Orange County Health Care Agency · ~ City of Santa Ana ~-] South COast Air Quality Management [--1 Orange County EMA District Other. B. ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED The environmental factors checked below would be potentially affected by this project, invoMng at least one impact that is.a "Potentially Significant Impact" as indicated by the checklist in Section D below. ~-']Land Use and Planning ['-]Population and Housing [-]Geological Problems [-]Water []]Air Quality ~-]Transpo~atiOn & Circulation [-]Biological Resources [--]Energy and Mineral Resources ['-]Hazards ['--]Noise /-]Public Services [-]Utilities and Service Systems /-']Aesthetics [--]Cultural Resources [-]Recreation [-]Mandatory Findings of Significance C. DETERMINATION: On the basis of this initial evaluation: [~ I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. []]] I find that altho{lgh the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because the mitigation measures described on an attached sheet have been added to the project. A NEGATIVE DECLARATION will be prepared. [-] I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. [--] I find that the proposed project MAY have a significant effect(s) on the environment, but at least one effect 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets, if the effect is a "Potentially Significant Impact" or "Potentially Significant Unless Mitigated." An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. [--] I find that although the proposed project could have a significant effect on the environment, there WILL NOT be a significant effect in this case because all potentially significant effects 1) have been analyzed adequately in an earlier EIR pursuant to applicable standards, and 2) have been avoided or mitigated pursuant to that earlier EIR, including revisions or mitigation measures that are imposed upon the proposed project. []]]] I find that although the proposed project could have a significant effect on the environment, there WILL NOT be a significant effect in this case because all potentially significant effects 1) have been analyzed adequately in an earlier NEGATIVE DECLARATION pursuant to applicable standards, and 2) have been avoided or mitigated pursuant to that earlier NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project. -h~T~ Draught..?. Senior Project Manager Preparer: Minoo ~LsJaabi. AssistantA~lanner Christine A. Shingleton, Assist~n/t City Manh,er Date Date 8/6[99 EVALUATION OF ENVIRONMEI,. AL IMPACTS I. AESTHETICS- Would the project: a) Have a substantial adverse effect on a scenic vista? b) Substantially damage scenic resources, including, but n0{ limited to, trees, rock outcroppings, and historic buildings within a state scenic highway? c) Substantially degrade the existing visual character or quality of the site and its surroundings? d) Create a new source of substantial light or glare which would adversely affect day or nighttime views in the area? II. AGRICULTURE RESOURCES: In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997) prepared by the California Dept. of Conservation as an optional model to use in assessing impacts on agriculture and farmland. Would the project: a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California' Resources Agency, to non- agricultural use? ' b) Conflict with existing zoning for agricultural use, or a Williamson Act contract? c) Involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland, to non-agricultural use? III. AIR QUALITY: Where available, the significance criteria established by the applicable air quality management or air pollution control district may be relied upon to make the · following determinations. Would the project: a) Conflict with or obstruct implementation of the applicable air quality plan? b) Violate any air quality standard or contribute substantially to an existing or projected air quality violation? c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non- attainment under an applicable federal or state ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)? d) Expose sensitive receptors to substantial pollutant concentrations? e) Create objectionable odors affecting a substantial number of people? Potentially Significant Impact Less Than Significant With Mitigation bTcorporation Less Than Significant Impact No bnpact IV. BIOLOGICAL RESOURCES: - WoUld the project: a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department ofFish and Game or U.S. Fish and Wildlife Service? b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations or by the California ~ Department ofFish and Game or U.S. Fish and Wildlife Service? c) Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? e) Conflict with any local policies or ordinfinces protecting biological resources, such as a tree preservation policy or ordinance? f) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? V. CULTURAL RESOURCES: - Would the project: a) Cause a substantial adverse change in the significance of a historical resource as defined in § 15064.5? b) Cause a substantial adverse change in the significance of an archaeological resource pursuant to § 15064.5? c) Directly or indirectly destroy a unique paleontological resource or site or unique geologic feature? d) Disturb any human remains, including those interred outside of formal cemeteries? VI. GEOLOGY AND SOILS: - Would the project: a) Expose people or structures to potential substantial' adverse effects, including the risk of loss, injury, or death involving: Potentially Significant Impact Less Than Significant With Mitigation b~corporation Less Than Significant Impact No bnpact i) Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. ii) Strong seismic ground shaking? iii) Seismic-related ground failure, including liquefaction? iv) Landslides? b) Result in substantial soil erosion or the loss of topsoil? c) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction or collapse? d) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994), creating substantial risks to life or property? e) Have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not available for the dispos, al of w. aste water? VII. HAZARDS AND HAZARDOUS MATERIALS: Would the project: a) Create a significant hazard to the public or the environment through the routine transport, use, or disposal of hazardous materials? b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or proposed, school? d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? e) For a project located 'within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? f) For a projec~ within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working in the project area? Potentiall), Significant Impact Less Than Significant kVith Mitigation Incorporation Less That? Significant Impact No Impact g) Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? h) Expose people or structures to a significant risk of loss, injury or death involi, ing wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? VIII. HYDROLOGY AND WATER QUALITY: - Would the project: a) Violate any water quality standards or waste discharge requirements? b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre- existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion or siltation on- or off-site? ' d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result in flooding on- or off-site? e) Create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff?. f) Otherwise substantially degrade water quality? g) Place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? h) Place within a 100-year flood hazard area structures which 'would impede or redirect flood flows? i) Expose people or structures to a significant risk of loss, injury or death involving flooding as a result of the failure of a levee or dam? j) Inundation by seiche, tsunami, or mudflow? IX. LAND USE AND PLANNING - Would the project: Potentially Significant bnpact Less Than Significant With Mitigation bTcorporation LeSS Significant Impact No bnpact a) Physically divide an established community? ['--] 1--] [--] [] b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? c) Conflict with any applicable habitat conservation plan or natural community conservation plan? X. MINERAL RESOURCES- Would the project: a) Result in the loss of availability of a ~known mineral - resource that would be of value to the region and the residents of the state? b) Result in the loss of availability of a locally-important 'mineral resource recovery site delineated on a local general plan, specific plan or other land use plan? XI. NOISE- Would the project result in: a) Exposure 0fpersons to or generation of noise levels in excess of standards established in the local g.eneral plan or noise ordinance, or applicable standards of other agencies? b) Exposure of persons to or generation of excessive groundborne vibration or groundborne noise levels? c) A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project? d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the project? e)-' For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would-the project expose people residing or working in the project area to excessive noise levels? f) For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excess noise levels? XII. POPULATION AND HOUSING - Would the project: a) Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? b) Displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? Potentiall. v Significant Impact LeSS 7'h6117 Significant Mitigation bworporation Less Than Significant Impact No Impact c) Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? XIII. PUBLIC SERVICES a) Would the project result in substantial adverse phYsical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: Fire protection? Police protection? Schools? Parks? Other public facilities? XIV. RECREATION'- a) Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? b) Does the project include recreational facilities or require the construction or expansion of recreational facilities which might have an adverse physical effect on the environment? XV. TRANSPORTATION/TRAFFIC - Would the project: a) Cause an increase in traffic which is substantial in relation to'~he existing traffic load and capacity of the street system (i.e. result in a substantial increase in either the number of vehicle trips, the volume to capacity ratio-on roads, or congestion at intersections)? b) Exceed, either individually or cumulatively, a level of service standard established by the county congestion management agency for designated roads or highways? c) Result in a change in air traffic patterns, including either an increase in traffic levels or a change in location that results in substantial safety risks? d) Substantially increase'hazards due to a design feature (e.g. sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? e) Result in inadequate emergency access? f) Result in inadequate parking capacity? Potentially 'Significant Impact Less Than Significant With Mitigation b~corporation Less Than Significant Impact No Impact g) Conflict with adopted policies, plans, or programs supporting alternative transportation (e.g., bus turnouts, bicycle racks)? XVI. UTILITIES AND SERVICE SYSTEMS- Would the project: a) Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board? b) Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? c) Require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? d) Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or expanded entitlements needed? e) Result in a determination by the wastewhter treatment provider which serves or may serve the project that it has adequate capacity to serve the project's projected demand in addition to the provider's existing commitments? f) Be served by a landfill with sufficient permitted capacity to accommodate the project's solid waste disposal needs? g) Comply with federal, state, and local statutes and regulations related to solid waste? XVII. MANDATORY FINDINGS OF SIGNIFICANCE .. a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife pspulation to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? b) Does the project have impacts that are individually limited, but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects)? c) Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or indirectly? Potentially Significant Impact Less Than Significant With Mitigation blcorporation Less T]?an Signi. ficant bnpact No Impact ATTACHMENT A EVALUATION OF ENVIRONMENTAL IMPACTS 14741 AND 14751 NEWPORT AVENUE BACKGROUND AND PROJECT DESCRIPTION The City of Tustin Community Redevelopment Agency proposes to enter into a purchase and sell agreement for the properties located at 14741 and 14751 Newport Avenue. The subject acquisition is in response to an Owner Participant's offer to sell property located in the South Central Redevelopment Project Area pursuant to the Redevelopment Plan. The Agency may purchase the properties in response to the Owner's offer to sell and for the purpose of a potential public improvement project inthe Project Area. No public improvement project has been identified at this time. At the time a public improvement project is proposed, appropriate environmental documentation will be prepared. The two parcels are identified by Assessor Parcel Numbers 402-133-11 and 402-133-12, respectively. Each parcel is developed with a two story, four unit residential complex. No physical improvements are proposed in conjunction with the property acquisition. The property at 14741 Newport Avenue is 8,505 square feet in area developed with a two story four-unit residence (total living area ofapproximately 4,216 square feet) with two attached two- car garages. The wood frame structure was built in 1967 and contains two three-bedroom and two two-bedroom units with. the larger owner unit located at the front of the property (see Location Map). The property at 14751 Newport Avenue is 9,315 square feet in area developed with an identical structure as the property at 14741 Newport Avenue property. 1. AESTHETICS Items a through d- "No Impact": The project involves the acquisition of two multiple family residential parcels. No physical improvements are proposed for the site or the buildings. The subject acquisition is in response to an Owner Participant's offer to sell property located in the South Central Redevelopment Project Area pursuant to the Redevelopment Plan. The Agency may purchase the property in response to the Owner's offer to sell and for'the purpose of a potential Public improvement project in the Project Area. No public improvement has been identified and no physical improvements are proposed in conjunction with acquisition of properties. Acquisition of properties will not have a substantial adverse effect on a scenic vista nor will it substantially damage scenic resources, including, but not limited to, trees, rock outcropping, and historic buildings within a state, scenic highway, nor will it substantially degrade the existing visual character or quality of the site and its surroundings. Sources: South Central Redevelopment Project Plan Tustin General Plan Mitigation/Monitoring Required: None Required Attachment A - Evaluation of Environmental ImPacts 14741 & 14751 Nev,'port Avenue August 7, 1999 Page 2 . AGRICULTURAL RESOURCES' Items a through c- "No Impact": The project is located in a developed, urban area. No physical improvements are associated with project and acquisition of the properties .will have no impacts on any farm land, nor will it conflict with existing zoning for agricultural use, or a Willamson Act contract. Acquisition of the properties will not result in conversion of farmland to a non-agricultural use. Sources: Site Observation Tustin General Plan o . Mitigation/Monitoring Required: None Required AIR QUALITY Items a through e "No Impact": No physical improvements are associated with the project and acquisition of the properties will not conflict with or obstruct implementation of any applicable air plan, violate any air quality standard, result in a cumulatively considerable increase Of any criteria pollutant as applicable by federal or ambient air quality standard, nor will it expose sensitive receptors to substantial pollutant concentrations, or create objectionable odor affecting a substantial number of people. Sources: Site Observation Tustin City Code Mitigation/Monitoring Required:' None Required BIOLOGICAL RESOURCES Items a through f-''No Impact": .The project is located within a developed urban area. No physical improvements are associated with the project and acquisition of the properties will not affect any unique, rare, or endangered species of plant or animal life identified in local or re~onal plans, policies or regulations or by the California Department ofFish and Game or U.S. Fish and Wildlife Service. o Sources: Site Observation Tustin City Code Mitigation/Monitoring Required: None Required CULTURAL RESOURCES Items a through d- "No Impact": The project is not located within an area where archaeological, paleontolgoical, or .historical resources have been identified. No physical Attachment A- Evaluation of Enviromnental Impacts 14741 & 14751 Newport Avenue August 7, 1999 Page 3 o ° o improvements are associated with the project and acquisition of the properties will not adversely affect any historical resources or archaeological resources or destroy or disturb a unique paleontological resource, human remains or geological feature. Sources: Field Observations Tustin General Plan Mitigation/Monitoring Required: None Required GEOLOGY AND SOILS Items a (I), a (ii), a (iii), a (iv), b, c, d and e- "No Impact": The project involves acquisition of properties with existing buildings that are located on two developed parcels. No physical improvements are associated with the project and acquisition of the properties will not expose people to potential substantial effects, including the risk of loss, injury, or death involving: rupture of a known earthquake fault, strong seismic ground shaking, landslides, soil erosion, or loss of top soil, nor is the project on unstable or expansive soil. Sources: Field Observation Preliminary Seismic Map Uniform Building Code Mitigation/Monitoring Required: None Required HAZARD AND HAZARDOUS MATERIALS Items a through h - "No Impact": No physical improvements, or change of operation is proposed in conjunction with property acquisition. Acquisition of properties will not result in si~m~ificant hazards (i.e. explosion, hazardous materials spill, interference with emergency response plans, wildland fires, etc.), nor is the project area located within an airport land use plan, or vicinity of a private airstrip. Sources: Field Observation Tustin City Code Mitigation/Monitoring Required: None Required HYDROLOGY AND WATER QUALITY Items a through j -"No Impact": The project is located within an existing h/gh density residential area and is not located near any standing or moving bodies of water. No physical improvements are associated with the project and acquisition of the properties will not result in any change in the mount or direction of surface or groundwatei-s. Attactunent A - Evaluation of Environmental Impacts 14741 & 14751 Newport Avenue August 7, 1999 Page 4 , 10. 11. Sources: Field Observations Mitigation/Monitoring Required: None Required LAND USE AND PLANNING Items a throu?:h c- "No Impact": The two properties are located in an area desig-nated by the General Plan Land Use Map as High Density Residential. No physical improvements are associated with the acquisition of the properties and acquisition will not result in any physical modification t° the residential units. The subject acquisition is in response to an Owner Participant's offer to sell property located in the South Central Redevelopment Project Area pursuant to the Redevelopment Plan. The Agency may purchase the properties in response to the Owner's offer to sell and for the purpose of a potential public improvement project in the Project Area. However, no public improvement project is identified at this time. The existing use of the property is consistent with the General Plan and the City of Tustin Zoning Code. Acquisition of properties will not physically divide an established community or conflict with any applicable habitat conservation plan. Any future improvement projects as a result of the acquisition of the two properties will be reviewed separately for possible impacts and appropriate mitigation measures. Som'ces: Tustin General Plan Tustin City Code South Central Redevelopment Project Plan Site Observation Mitigation/Monitoring Required: None Required MINERAL RESOURCES Items a and b -"No Impact": No physical improvements to .the site or buildings are proposed. Acquisition of the properties will not result in loss of a known m/neral resource, or availability of a locally important mineral resource recovery site delineated on the general plan or other applicable land use maps. Sources: Tustin General Plan Mitigation/Monitoring Required: None Required NOISE Items a through f- ''No Impact": No physical improvements to the site or buildings are proposed and acquisition of the properties will not expose persons to noise levels in excess of standards established in the general plan, noise ordinance, or excessive ~oundborne vibrations, nor will it create a permanent increase in the existing ambient noise levels. Attachment A - Evaluation of Environmental Impacts 14741 & 14751 Newport Avenue August 7, 1999 Page 5 Sources: Tustin City Code Tustin General Plan 12. Mitigation/Monitoring Required: POPULATION AND HOUSING None Required 13. Items a, b, and c- "No Impact": No modifications to the number of units or living area of the properties to be acquired is proposed. Acquisition of the properties will not result in any increase in the population of the area, nor will it displace any number of existing housing, or people. The subject acquisition is in response to an Owner Participant's offer to sell property located in the South Central Redevelopment Project Area pursuant to the Redevelopment Plan. The Agency may purchase the properties in response to the Owner's offer to sell and for the purpose of a potential public improvement project in the Project Area. However, no public improvement project is identified at this point. Any future improvement projects as a result of the acquisition of the two properties would be evaluated through appropriate environmental documentation to identify potential impacts and appropriate mitigation measures. : Sources; Tustin General Plan South Central Redevelopment Project Plan Mitigation/Monitoring Required: None Required PUBLIC SERVICES Item a-" No Impact": No physical improvements to the site or buildings are proposed and acquisition of the properties will not create demand for alteration or addition of government facilities (fire and police protection, schools, parks, etc.), where construction or alteration of such facilities could cause significant environmental impacts. The subject acquisition is in response to an Owner Participant's offer to sell property located in the South Central Redevelopment'Project Area pursuant to the Redevelopment Plan. The Agency may purchase the properties in response to the Owner's offer to sell and for the purpose of a potential public improvement project in the Project Area. No public improvement project is identified at this point. Any future improvement projects as a result of the acquiSition of the two properties Would be evaluated through appropriate environmental documentation to identify potential impacts and appropriate mitigation measures. Sources: Tustin General Plan Mitigation/Monitoring Required: None Required Attacltment A - Evaluation of Environmental Impacts 14741 & 14751 Newport Avenue August 7, 1999 Page 6 14. RECREATION 15. 16. 17. Items a and b - "No Impact": No physical changes to the number of residential units are proposed and acquisition of the properties will not increase demand for neighborhood parks or recreational facilities. Sources: Tustin General Plan Mitigation/Monitoring Required: None Required TRANSPORTATION/TRAFFIC Items a through g - "No Impact": Vehicular access to the properties is provided through an existing alley by an access easement along the westerly property line of these properties shared by other properties on both sides between Myrtle and Sycamore. There will be no changes to the existing alley and access easement from acquisition of these properties. No site improvements or alteration in vehicular or pedestrian access is proposed. Acquisition of the properties will not result in changes to air traffic patterns, emergency access, level of service standards established by the county congestion management agency for desi~ed roads or highways or conflict with adopted policies, plans or progams supporting alternative transportation. Sources: Site Observations Tustin General Plan Mitigation/Monitoring Required: None Required UTILTIES AND SERVICE SYSTEMS Items a through $ - "No Impact": The project is located in a developed urban area where all utilities are available to the site. No physical improvements are proposed and acquisition of the properties will have no impacts to water treatment, water supply, wastewater treatment, and solid waste disposal. Sources: Tustin City Code Tustin General Plan Mitigation/Monitoring Required: None Required MANDATORY FINDINGS OF SIGNIFICANCE The proposed project involves acquisition' of two parcels developed with residential buildings. No physical improvements to the site or buildings are proposed in conjunction with property acquisition. The project does not have the potential to degade the qual.ity Attachment A - Evaluation of Environmental Impacts 14741 & 14751 Newport Avenue August 7, 1999 Page 7 of the environment nor achieve short-term environmental goals to the disadvantage of the long-term. It does not have impacts that are individually limited but cumulatively considerable or that would cause substantial adverse impacts on human beings. ma:negdec- 14741 newport.doc LOCATION MAP z /' J 15822 j15852 15842 ; 15862 J 15872 . z , 15892 r-jr" t-' m' .'", ~NCY WE~T , < : : : TUST/iV 158511, ~.~ .I V/!.!.~$ , I ,591o , ·: Jls821j !15822 15823 J 15824 15825, ,15826  ~5832, 33, 35 ~34. 36 ~ 15852 53. 55.', 54, 56 57 ' ' 58 63.65. ', '64.6~6 *~. *s.I a ~. **. ~I~ , ~5~2. ~. ~51 I TM' ~. ~.,¢s. ~. ~k -- ALTADENA j 16002 i16o12 16022 ~x ~ 1 U.~ IIly 17238 ',\'~ \,, NDGA L ?ELIZ \, '~ · 17214 17216 17218 344,., :14451 1445'I 14455/ ,- NO SCALE AGREEMENT TO PURCHASE REAL PROPERTY: 14741 & 14751 Newport Avenue, TUSTIN, CALIFORNIA THIS AGREEMENT is entered into this day of , 1998, by and among the Tustin Community Redevelopment Agency, a California Community Redevelopment Agency (hereinafter "Agency"), and Dennis S. Smith, an unmarried man (hereinafter "Seller"). RECITALS 1. Seller owns improved real properties at 14741 & 14751 Newport Avenue, Tustin, California, which is shown on Exhibit "A" as Parcel A, a portion of Lot 8 of Tract No. 5458, and Parcel B, a portion of Lot 8 of Tract No. 5468, as per map recorded in BoOk 206, pages 31 and 32, of Miscellaneous Maps in the Office of the County Recorder of Orange County (hereinafter referred to as the "Property"). Exhibit "A" is attached hereto and is incorporated herein by this reference. 2. The Property contains two residential fourplex apartment buildings and appurtenances leased by the Seller to tenants under month-to-month rental agreements. , purpose. The Agency desires to acquire the Property for the potential future public 4. The Property is being acquired by the Agency under threat of condemnation. NOW,. THEREFORE, in view of the above-recitals and mutual promises and covenants contained herein, the parties agree as follows: AGREEMENT Section 1. Sale/Purchase of Property. Seller agrees to sell the Property to Agency and Agency agrees to purchase the Property from Seller. The total purchase price, payable in cash through escrow, shall be Seven Hundred Five Thousand Dollars ($705,000.00). Section 2. Relocation Benefits. Seller and Agency each hereby acknowledge that the parties have agreed upon the purchase price prescribed herein and have taken into account any claim the Seller might have for relocation assistance and/or benefits. Section 3. Time Frame for Completion of Obliqations/Escrow This sale shall be consummated through an escrow. As soon as possible after this Agreement, Agency agrees to open an escrow in accordance with this Agreement at First American Title Insurance Company ("Escrow Holder"), 1.14 East Fifth Street, Santa Ana, California 92701, Attention: Katharine Shannon ("Escrow Officer"). This Agreement, with Exhibit "B" attached hereto, constitutes the joint escrow instructions of Seller and Agency to the Escrow Holder. As soon as possible after opening of escrow, Seller shall execute the grant deeds attached hereto as Exhibit "C" and incorporated herein by this reference, and shall deposit the deeds with the Escrow Officer. Subject to the conditions, described in Section 9 and Exhibit "B", Agency shall deposit into escrow the sum set forth in Section 1 above, payable to Seller. The closing date for the escrow shall be no later than Thirty (30) days after opening of escrow, unless such date is extended by written agreement of the parties. "Close of Escrow" shall be the date when the grant deeds to the Agency are recorded. Except as provided in 9, Agency shall also pay one half escrow and closing costs. Seller shall pay one half of escrow and closing costs. Seller shall also pay the costs of the ALTA title insurance referenced in Section 9.1. Section 4. Warranty Against Easements Not of Record. To the current, actual knowledge of Seller, Seller warrants to Agency that as of the date of this Agreement and as of the date of close of escrow, they have not granted any unrecorded easements or licenses on the Property. Section 5. Warranty of No Governmental Action. To the current, actual knowledge of Seller, Seller warrants that there is not now, and as of close of escrow, there will not be, any violation of any law, ordinance, rule, or administrative or judicial order affecting the Property, nor is there any judicial order affecting the Property, nor is there any condemnation (excepting the condemnation threatened by Agency), zoning change, or other proceeding or action (including legislative action) pending, threatened, or contemplated by any governmental body, except Agency, authority, or agency that will in any way affect the size or use of, improvements or construction on, or access to the Property by Agency. This warranty does not apply to governmental action where notice has not been provided to Seller. Section 6. Warranty Against Contracts Concerning Property. To the current, actual knowledge of Seller, Seller warrants that as of the date of this Agreement and as of close of escrow, Seller has not entered into any contracts, leases (except as identified in Section 9.2), licenses, commitments, or undertakings respecting the Property, or the performance of services on the Property, or the use of the Property or any part of it or any agreement or contract of any kind pertaining to the property by which Agency would become obligated or liable to anyone. Section 7. Warranty Against Violations. To the current, actual knOwledge of Seller, Seller warrants and represents that as of the date of this Agreement and as of close of escrow, they have no notice or knowledge of any violation of any statute, ordinance, regulation or administrative or judicial order or holding, whether or not appearing in public records, with respect to the Property or any improvements on the Property. Section 8. Environmental Compliance. A. Seller warrants and represents that, during the time in which Seller has owned or occupied the Property, neither Seller nor, to the current, actual knowledge of Seller, any third party, has used, generated, manufactured, produced, stored or disposed of, on, under, or about the property or transported to or from the property any hazardous materials, including without limitation, flammable materials, explosives, asbestos, radioactive materials, hazardous wastes, toxic substances, or related injurious materials, whether injurious by themselves or in combination with other materials. To the current, actual knowledge of Seller there is no proceeding or inquiry by any governmental authority, including without limitation the California or Federal Environmental Protection Agency or the California State Department of Toxic Control, or regional water quality, with respect to the presence of such hazardous materials on the property or their bond migration from or to other property. For purposes of this .Agreement, the term "hazardous materials" shall include but not be limited to substances defined as "hazardous substance, .... hazardous materials," or "toxic substances" in the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (Title 42 United States Code Sections 9601-9675); the Hazardous Materials Transportation Act, as amended (Title 49 United States Code Sections 1801-1819); the Resource Conservation and Recovery Act of 1976, as amended (Title 42 United States Code Section 6901-6992k); and any substance defined as "hazardous waste" in Health and Safety Code Section 25117 or as "hazardous substance" in Health and Safety Code Section 25316, and in the regulations adopted and publications promulgated under these laws. B. Seller hereby agrees to indemnify, protect, hold harmless, and defend Agency and City of Tustin, its councilmembers, officers, employees, and agents, from and against any and all loss, expense, damage and liability, including without limitation (1) all foreseeable and unforeseeable consequential damages, directly or indirectly arising from the use, generation, storage, or disposal of hazardous material on the Property by Seller, or other person using the Property with Seller's actual knowledge of the use, generation, storage or disposal of hazardous material on the Property; and (2) the cost of any required or necessary repair, cleanup, or detoxification, regardless of whether such action is required before or after the close of escrow, but only to the extent that such liability is attributable, directly or indirectly, to the use, generation, storage, release, threatened release, or disposal of hazardous materials by Seller, or other person using the Property with Seller's actual knowledge of the use, generation, storage or disposal of hazardous materials on the Property that occurred while Seller owned the Property. Seller's indemnity shall survive close of escrow. C. From and after Close of Escrow, Agency agrees to indemnify, protect, hold harmless and defend Seller from and against any and all loss, expense, damage and liability, including without limitation (1) all foreseeable and unforeseeable consequential damages, directly or indirectly arising from the use, generation, storage, or disposal of hazardous material on the property by Agency; and (2) the cost of any required or necessary repair,-cleanup, or detoxification and the preparation of any closure or other required plans, but only to the extent that such liability is attributable, directly or indirectly, to the presence or use, generation, storage, release, threatened release, or disposal of hazardous materials on the property by Agency, Agency's indemnity shall survive close of escrow. Section 9. Agency's Obligation is Subject to Conditions. Agency's obligation to perform this Agreement is subject to Agency's approval of the condition of title, described in 9.1 and 9.2, Agency's approval of the condition of the Property described in 9.3, and in 9.4, and no breach of representations, as described in 9.5. 9.1 First American Title Insurance Company shall be able to issue in favor of Agency an ALTA standard owner's policy of title insurance dated as of close of escrow with liability not less than the purchase price, covering the Property, showing title vested in Agency, and showing as exceptions only current general and special real property taxes, bonds and assessments not yet delinquent, and the exceptions of title that Agency has approved. 9.2 Promptly, upon execution of this Agreement by all parties, Seller shall furnish Escrow Holder with true and correct copies of all tenant leases with signed tenant estoppel certificates and a letter warranting that there are no other unrecorded leases or subleases by Seller or Tenants affecting the Property. Escrow Holder shall furnish Agency with a title commitment for an ALTA title policy and legible copies of all documents reported as exceptions in it ("Title Documents"). Agency shall notify Seller and Escrow Holder in writing within ten (10) days after receipt of the title commitment and the Title Documents of Agency's disapproval of any exception in those documents. If any supplemental title commitment or supplemental Title Documents are submitted, then Agency shall notify Seller and Escrow Holder in writing within ten (10) days after Agency's receipt of such items, but not later than the date mutually agreed upon by the parties in writing for the close of escrow, of Agency's disapproval of any title exception set forth therein. Failure of Agency to notify Seller and Escrow Holder in writing of Agency's disapproval of any title exceptions shall conclusively be considered as Agency's approval of same. If Agency disapproves any title matter referred to in this paragraph, then, at Agency's option, this Agreement and the escrow shall be canceled, and in such event all funds or other things deposited by Agency shall be returned to Agency immediately on demand, and Agency shall pay all title company and escrow charges. 9.3 Agency shall pay for a Property Condition Inspection by a competent inspector selected by the Agency..Agency's obligation to close escrow is contingent upon AgencY's approval of the condition of the property at its sole discretion. 9.4 Agency's obligation to close escrow is contingent upon Agency's approval of the'environmental condition of the Property based on the Phase I Environmental Site Assessment report and Asbestos Survey prepared by Converse Consultants on August 27, 1999. Seller and Agency each hereby acknowledge that the parties have agreed to the purchase price prescribed herein and have taken into account asbestos containing materials found on the property. 9.5 If there is a breach of any representation or warranty given by Seller pursuant to this Agreement that is discovered by Agency before close of escrow, then Agency may nevertheless elect to proceed to close the escrow, in which event Agency shall be deemed to have elected to waive such breach, or Agency may elect to terminate this Agreement and the escrow, in which event this Agreement shall be canceled. If this Agreement and the escrow are terminated by Agency's election under this paragraph, then all funds or other things deposited by Agency shall be returned to Agency immediately on demand, and Seller shall pay all title company and escrow charges. Section 10. Warranty Against Litigation Concerninq the Property. To Seller's current, actual knowledge, as of the date of this Agreement and as of Close of Escrow, no litigation is or will be pending against Seller regarding the use, operation, development, condition or improvement of the Property, or regarding any right, title or interest in the Property. Section 11. Threat of Condemnation. Seller and Agency acknowledge that the purchase and sale of the Property has been negotiated under the threat of condemnation of the Property by Agency and City of Tustin. In the event of Seller default, Agency's ability to perform is prejudiced. Accordingly, in the event the escrow fails to close by reason of a default by Seller, Seller agrees: a, The public interest and necessity may require the acquisition of the Property. b. Seller waives any claim to severance damages under any eminent domain proceedings commenced at any time hereafter by the Agency or City of Tustin with respect to the Property. c. Seller waives any claim to any relocation assistance in any eminent domain proceedings commenced by the Agency or City of Tustin with respect to the Property. d. Seller acknowledges that in waiving these claims they have not relied on any representations or statements made or said by Agency and City, its agents, attorneys or other representatives. Section 12. Attorneys' Fees. If any party files an action or brings any proceeding against the other arising from this Agreement, or is made a party to any action or proceeding brought by the Escrow Holder, then as between Agency and Seller and Agency, the prevailing party shall be entitled to recover as an element of its costs of suit, and not as damages, reasonable attorneys' fees to be fixed by the court. The "prevailing party" shall be the party who is entitled to recover its costs of suit, whether or not suit, proceed to final judgment. A party not entitled to recover its costs shall not recover attorneys' fees. No sum for attorneys' fees shall be included in calculating the amount of a judgment for purposes of deciding whether a party is entitled to its costs or attorneys' fees. Section 13. Warranties to Survive Close of Escrow. All warranties, covenants, and other obligations stated in this Agreement shall survive close of escrow. All warranties, covenants, and other obligations that the Agency discovers to be breached before tender of the deed, and that Agency either expressly waives or does not object to before such tender, shall not survive tender of the deeds. Section 14. Binding on Successors. Except as otherwise provided herein, this Agreement inures to the benefit of, and is binding on, the parties, their respective heirs, personal representatives, successors, and assigns. Section 15. Integration Clause. This Agreement constitutes the entire agreement among the parties and supersedes all prior discussions, negotiations, and agreements whether oral or written. Any amendment to this Agreement, including an oral modification supported by new consideration, must be reduced to writing and signed by all of the parties before it will be effective. Section 16. No Representation Regarding Legal Effect of Document. No representation, warranty, or recommendation is made by Seller or Agency or their respective agents, employees, or attorneys regarding the legal sufficiency, legal effect, or tax consequences of this Agreement or the transaction, and each signatory is advised to submit this Agreement to his or her respective attorney before signing it. Section 17. COUNTERPARTS. This agreement may be executed in counterparts, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original, and all such counterparts together shall constitute one and the same instrument. Section 18. Time is of the Essence. Time is of the essence of this Agreement, and failure to comply with the time provisions of this Agreement shall be a material breach of this Agreement. Executed on the date first above written. TUSTIN COMMUNITY REDEVELOPMENT AGENCY By: ATTEST: Pamela Stoker City Clerk APPROVED AS TO FORM: Lois E. Jeffrey(..) City Attorney SELLER ~n~s S S¢-n~th z/'-' LITIGATION GUARANTEE (,KEV. 12/16/92) OR-9823803 TITLE OFFICER - PASCHAL EXHIBIT A THE LAND REFERRED TO IN THIS GUARANTEE IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF ORANGE, CITY OF TUSTIN, AND IS DESCRIBED AS FOLLOWS: PARCEL Al' THE SOUTHWESTERLY 63.00-FEET .OF THE NORTHEASTERLY 311.00 FEET, MEASURED FROM THE TANGENT PORTION AND SOUTHEASTERLY PROLONGATION THEREOF OF LOT 8 OF TRACT NO. 5468, AS PER MAP RECORDED IN BOOK 206, PAGES 31 AND 32 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. · ~r-~T A2: AN EASEMENT FOR ALLEY PURPOSES OVER THE SOUTHEASTERLY 20.00 FEET OF THE NORTHWESTERLY 30.00 FEET OF LOT 8 OF TRACT NO. 5468 AS SHOWN ON A MAP RECORDED IN BOOK 206, PAGES 31 AND 32 OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA. EXCEPTING THEREFROM THAT PORTION INCLUDED WITHIN PARCEL 1 ABOVE DESCRIBED. PARCEL BI' LOT 8 OF TRACT NO. 5468, AS SHOWN ON A MAP RECORDED IN BOOK 206, PAGES 31 AND 32 OF !vlISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA. EXCEPTING THEREFROM THE NORTHEASTERLY 311.00 FEET OF SAID LOT 8 MEASURED FROM THE . TANGENT PORTION AND SOUTHEASTERLY PROLONGATION THEREOF. PARCEL 132' AN EASEMENT FOR ALLEY PURPOSES OVER THE SOUTHEASTERLY 20.00 FEET OF THE NORTHWESTERLY 30.00 FEET OF LOT 8 OF TRACT NO. 5468, AS SHOWN ON A MAP RECORDED IN BOOK 206, PAGES 31 AND ~'- 32 OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA. EXCEPTING THEREFROM THAT PORTION INCLUDED WITHIN PARCEL 1 ABOVE DESCRIBED. PAGE 3 First American Title Insurance Company THIS MAP IS FOR INFORMATION ONLY AND IS NOT A PART OF THIS 'iTrLE EVIDENCE Exhibit B ESCROW INSTRUCTIONS 1. Escrow Agency and Seller agree to open and escrow in accordance with Section 3 of this Agreement. This Agreement constitutes the joint escrow instructions of Agency and Seller, and Escrow Holder to whom these escrow instructions are delivered is hereby empowered to act under this Agreement. The parties hereto agree to do all acts necessary to close this escrow in the shortest possible time. As soon as possible after opening of escrow, Seller will execute the Grant Deeds attached to this Agreement and deposit the executed deeds with Escrow Holder on Agency's behalf. Agency agrees to deposit the purchase price 'upon demand of Escrow Holder. Agency and Seller agree to deposit with Escrow Holder any additional instruments as may be necessary to complete this transaction. Insurance policies for fire or casualty are not to be transferred, and Seller will cancel his own policies after close of escrow. All funds received in this escrow shall be deposited with other escrow funds in a general escrow account(s) and may be transferred to any other such escrow trust account in any State or National Bank doing business in the State of California. All disbursements shall be made by check from such account. 2. ESCROW HOLDER IS AUTHORIZED AND IS INSTRUCTED TO COMPLY WITH THE FOLLOWING TAX ADJUSTMENT PROCEDURE: A, Pay and charge Seller for any unpaid delinquent taxes and/or Penalties and interest thereon, and for any delinquent or non-delinquent assessments or bonds against the property; B, In the event this escrow closes between July I and November 1, and current tax information is not available from title insurer, Escrow Holder is instructed to withhold from Seller's proceeds an amount equal to 120% of the prorated amount due based upon the previous fiscal year's second half tax bill. At such time that the tax information is available, Escrow Holder shall make a check payable to the County Tax Collector for Seller's prorated portion of taxes and forward same to the Agency and shall refund any difference to the Seller. In the event the amount withheld is not sufficient to pay Seller's prorated portion of taxes due, the Seller herein agrees to immediately pay the difference; In the event said tax information is available, Seller's taxes shall be prorated in accordance with Paragraph "C" below. C, From the date that tax information is available, as per Paragraph "B", up to and including June 30th, Seller's current taxes, if unpaid, shall be prorated to date of close of escrow on the basis of a 365 day year in accordance with Tax Collector's pro-ration requirements, together with penalties and interest, if said current taxes are unpaid after December 10 and/or April 10. At close of escrow, check payable to the County Tax Collector for Seller's pro-rata portion of taxes shall be forwarded to Agency with closing statement; Do Any taxes which have been paid by Seller, prior to opening of this escrow, shall not be prorated between Agency and Seller, but Seller shall have the sole right, after close of escrow, to apply to the County Tax Collector of said county for refund. This refund would apply to the period after Agency's acquisition, pursuant to Revenue and Taxation Code Section 5096.7. 3.' ESCROW HOLDER IS AUTHORIZED TO. AND SHALL: A. Pay and charge Seller for 50% escrow fees and any amount necessary to place title in the condition necessary to satisfy Paragraph 3 of this Agreement; Bo Pay and charge Agency for 50% escrow fees, ch'arges, and costs payable under Paragraph 6 of this Agreement C, Pay to Agency and charge Seller for the amount of any Security Deposits, including advance rent payments and other amounts paid by tenants and held by Seller. D, Disburse funds and deliver deed when conditions of this escrow have been fulfilled by Agency and Seller. The term "close of escrow", if and where written in these instructions, shall mean the date necessary instruments of conveyance are recorded in the office of the County Recorder. Recordation of instruments delivered through this escrow is authorized if necessary or proper in the issuance of said policy of title insurance. .. All time limits within which any matter herein specified is to be performed may be extended by mutual agreement of the parties hereto. Any amendment of, or supplement to, any instructions must be in writing. 4. TIME IS OF THE ESSENCE IN THESE INSTRUCTIONS AND ESCROW IS TO CLOSE AS SOON AS POSSIBLE. If (except for deposit of money by Agency, which shall be made by Agency upon demand of Escrow Holder before close of escrow) this escrow is not in condition to close within (30) days from date of these instructions, any party who then shall have fully complied with his instructions may, in .writing, demand the return of his money or property; but if none have complied no demand for return thereof shall be recognized until five (5) days after Escrow Holder shall have mailed copies of such demand to all other parties at the respective addresses shown in these escrow instructions, and if any objections are raised within said five (5) day period, Escrow Holder is authorized to hold all papers and documents until instructed by a court of competent jurisdiction or mutual instructions. If no demands are made, proceed with closing of this escrow as soon as possible. Responsibility for Escrow Holder under this Agreement is expressly limited to Paragraphs 1, 2, 3, 4, 5, 8 and to its liability under any policy of title insurance issued in regard to this transaction. 5. RENTAL AND OCCUPANCY BY SELLER. Seller agrees to execute a complete, current, and correct statement of rentals and tenant estoppel certificates on a form furnished to Seller and deliver same to Agency within five (5) days hereof with copies of any written leases or rental agreements and estoppel certificates signed by each tenant attached. All rents will be prorated as of the close of escrow on the basis of a 30-day month consistent with that Statement, subject to approval of Agency. Seller hereby agrees not to rent any units on the premises which are now vacant, or which may be Vacated by present occupants prior to close of escrow, Seller hereby warrants that the rental statement referred to shall include the terms of all rental agreements, tenancies, and leases (written, unwritten, recorded, or unrecorded) and Seller agrees to hold Agency harmless from all liability from any such leases or agreements. Seller also warrants that there are no oral or written leases on all or any portion of property exceeding a period of one month, and Seller further agrees to hold Agency harmless and reimburse Agency for any and all of its losses and expenses occasioned by reason of any lease of said property held by any tenant of Seller for a period exceeding one month, except: None. 6. PERMISSION TO ENTER ON PREMISES. Seller hereby grants to Agency, or its authorized agents, permission to enter upon the Property at all reasonable times prior to close of escrow for the purpose of making necessary or appropriate inspections. 7. LOSS OR DAMAGE TO IMPROVEMENTS. Loss or damage to the real property or any improvements thereon, by fire or other casualty, occurring prior to the recordation of the Deeds shall be at the risk of Seller. In the event that loss or damage to the real property or any improvements thereon, by fire or other casualty, occurs prior to the recordation of the Deeds, Agency may elect to require that the Seller pay to Agency the proceeds of an), insurance which may become payable to Seller by reason thereof, or to permit such proceeds to be used for the restoration of the damage done, or to reduce the total price by an amount equal to the diminution in value of said property by reason of such loss or damage or the amount of insurance payable to Seller. whichever is greater. 8. CLOSING STATEMENT. Seller instructs Escrow Holder to release a copy of Seller's statement to Agency; purpose being to ascertain if any reimbursements are due Seller. Exhibit C FORM OF GRANT DEEDS Orde,; No. Escrow No. Loan No. WHEN RECORDED MAIL TO: City of Tustin 300 Centennial Way Tustin, CA 92780 Attention: City Clerk DOCUMENTARY TRANSFER TAX $ ..... .,0. .............................................. ...... Computed on the consideration or value of property conveyed; OR ...... Computed on the consideration or value tess liens or encumbrances ~maining at time o.'f s. ale. X ~xempt - ~ub±ic A~ency GRANT DEED SPACE ABOVE THIS LINE FOR RECORDER'S USE Signature of Declarant or Agent determining tax -- Firm Name FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, Dennis S. Smith, an unmarried man hereby GRANT(S)to the Tustin Community Redevelopment Agency, a California Redevelopment Agency the real property in the City of Tustin County of Orange , State of California, described as See Exhibit "A" Parcel B attached , , hereto and incorporated herein by this reference. Dated STATE OF CALIFORNIA COUNTY OF On 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 signa- ture(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. Signature MAIL TAX STATEMENTS TO: Dennis S. Smith (This area for official notarial seal) 1002 (1/94) LITIGATION GUARANTEE (REV. 12/I 6/92) OR-9823803 TITLE OFFICER - PASCHAL EXHIBIT A THE LAND REFERRED TO IN THIS GUARANTEE IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF ORANGE, CITY OF TUSTIN, AND IS DESCRIBED AS FOLLOWS: PARCEL Al: THE SOUTHWESTERLY 63.00 FEET OF THE NORTHEASTERLY 311.00 FEET, MEASURED FROM THE TANGENT PORTION AND SOUTHEASTERLY PROLONGATION THEREOF OF LOT 8 OF TRACT NO. 5468, AS PER MAP RECORDED IN BOOK 206, PAGES 31 AND 32 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL A2: AN EASEMENT FOR ALLEY PURPOSES OVER THE SOUTHEASTERLY 20.00 FEET OF THE NORTHWESTERLY 30.00 FEET OF LOT 8 OF TRACT NO. 5468 AS SHOWN ON A MAP RECORDED IN BOOK 206, PAGES 31 AND 32 OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA. EXCEPTING THEREFROM THAT PORTION INCLUDED WITHIN PARCEL 1 ABOVE DESCRIBED. PARCEL B 1: LOT 8 OF TRACT NO. 5468, AS SHOWN ON A MAP RECORDED IN BOOK 206, PAGES 31 AND 32 OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA. EXCEPTING THEREFROM THE NORTHEASTERLY 311.00 FEET OF SAID LOT 8 MEASURED FROM THE TANGENT PORTION AND SOUTHEASTERLY PROLONGATION THEREOF. PARCEL B2: AN EASEMENT FOR ALLEY PURPOSES OVER THE SOUTHEASTERLY 20.00 FEET OF THE NORTHWESTERLY 30.00 FEET OF LOT 8 OF TRACT NO. 5468, AS SHOWN ON A MAP RECORDED IN BOOK 206, PAGES 31 AND 32 OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA. EXCEPTING THEREFROM THAT PORTION INCLUDED WITHIN PARCEL 1 ABOVE DESCRIBED. PAGE 3 ~,~ T First .4~nerican Title Insurance Company THIS MAP IS FOR INFORMATION ONLY AND IS NOT A PART OF THIS TITLE EVIDENCE Order No. Escrow No. Loan No. WHEN RECORDED MAIL TO: City of Tustin 300 Centennial Way Tustin, CA 92780 Attention: City Clerk DOCUMENTARY TRANSFER TAX $ .....0. ................................................ ...... Computed on the consideration or value of property conveyed; OR ...... Computed on the consideration or value less liens or encumbrances f.,emaining at tir~uO~ .¢_~eC. X ,.xemp~ - Agency SPACE ABOVE THIS LINE FOR RECORDER'S USF Signature of Declarant or Agent determining tax -- Firm Name GRANT DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,Dennis So unmarried man Smith, an hereby GRANT(S) to the Tustin Community Redevelopment Agency, a California Redevelopment Agency therealprope~yinthe City of Tustin County of Orange , State of California, described as See Exhibit "A", Parcel A, attached hereto and incorporated herein by this reference. Dated STATE OF CALIFORNIA COUNTY OF On before me, personal!y 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(les), and that by his/her/their signa- ture(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. Signature MAIL TAX STATEMENTS TO: Dennis S. Smith (This area for official notarial seal) 1002 (1/94) LITIGATION GUARANTEE (REV. 12/16/92) OR-9823803 TITLE OFFICER - PASCHAL EXHIBIT A THE LAND REFERRED TO IN THIS GUARANTEE IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF ORANGE, CITY OF TUSTIN, AND IS DESCRIBED AS FOLLOWS: PARCEL A1: THE sOUTHWESTERLY 63.00 FEET OF THE NORTHEASTERLY 311.00 FEET, MEASURED FROM THE TANGENT PORTION AND SOUTHEASTERLY PROLONGATION THEREOF OF LOT 8 OF TRACT NO. 5468, AS PER MAP RECORDED IN BOOK 206, PAGES 31 AND 32 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL A2: AN EASEMENT FOR ALLEY PURPOSES OVER THE SOUTHEASTERLY 20.00 FEET OF THE NORTHWESTERLY 30.00 FEET OF LOT 8 OF TRACT NO. 5468 AS SHOWN ON A MAP RECORDED IN BOOK 206, PAGES 31 AND 32 OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA. EXCEPTING THEREFROM THAT PORTION INCLUDED WITHIN PARCEL 1 ABOVE DESCRIBED. PARCEL B1: LOT 8 OF TRACT NO. 5468, AS SHOWN ON A MAP RECORDED IN BOOK 206, PAGES 31 AND 32 OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA. EXCEPTING THEREFROM THE NORTHEASTERLY 311.00 'FEET OF SAID LOT 8 MEASURED FROM THE TANGENT PORTION AND SOUTHEASTERLY PROLONGATION THEREOF. PARCEL B2: AN EASEMENT FOR ALLEY PURPOSES OVER THE SOUTHEASTERLY 20.00 FEET OF THE NORTHWESTERLY 30.00 FEET OF LOT 8 OF TRACT NO. 5468, AS SHOWN ON A MAP RECORDED IN BOOK 206, PAGES 31 AND 32 OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA. EXCEPTING THEREFROM THAT PORTION INCLUDED WITHIN PARCEL 1 ABOVE DESCRIBED. PAGE 3 First .4~n erican Title Insurance