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HomeMy WebLinkAboutCC 10 FOSTER ART SVC. 07-02-84CONSENT CALENDAR NO. 10 TO: HONORABLE MAYOR AND CITY COUNCIL FROm: BILL HUSTON, CITY MANAGER SUBJECT~ AGREEMENT BETWEEN BOYS CLUB OF TUSTIN AND FOSTER ART SERVICE The City, Boys Club and Foster Art Service entered into an agreement in 1981 'w~ich provided that the City would sell property adjacent to Foster Art Service which in turn would install a parking lot on the property. The City and Boys Club would have mutual, non-exclusive use of the parking lot and Foster Art Service would stripe a portion of the lot for a basketball court for the Boy's Club use. The improvements referred to above were not made due to the death of Walter Foster, the sole shareholder of Foster Art Service, subsequent to the sale and conveyance of the property. Representatives of Foster Art Service claim that due to the uncertainty of their plans, they are unable to proceed with the parking lot and basketball court improvements. The Boys Club has agreed to a $20,000 cash payment from Foster Art Services in- lieu of the improvements. Since the City is a party to the original agreement and entitled to use of the parking lot if it were constructed, the City must approve the proposed agreement. It is staff's feeling that if the Board of Directors of the Boy's Club is satisfied with the proposed agreement, then it would be appropriate for the City Council to approve the agreement. Loss of the right to use the parking lot does not have any particular affect upon the City since it does not use the Boy's Club facility for City sponsored programs. AGREEMENT This Agreement is made and entered into by and among Foster Art Service, Inc., a California corporation (hereinafter referred to as "Foster"), The Boys Club of Tustin, a nonprofit charitable California corporation (hereinafter referred to as "Boys Club"), and the City of Tustin, a municipal corportion (hereinafter referred to as "City"). RECITALS A. Foster is the owner of the real property (hereinafter referred to as the "Property") described on Exhibit "A" attached hereto and made a part hereof. The Property was acquired by Foster from the City pursuant to the Agreement mentioned in paragraph B below. B. The parties hereto entered into an Agreement dated August 17, 1981, which provided, among other things, that: 1. The City would sell the Property to Foster for Ten Thousand Dollars ($10,000) cash; 2. Foster, at its expense, would construct, install and maintain a parking lot on a portion of the Property; 3. Both the City and the Boys Club would have the right to mutual, non-exclusive use of the parking lot; and 4. Foster, at its expense, would cause a portion of the parking lot to be striped for a basketball court (or half court) and cause basketball backboards and baskets to be installed, one on the exterior wall of a building to be constructed by Foster and the other on the exterior wall of the Boys Club building. C. Pursuant to said Agreement Foster paid the City $10,000 cash and the City conveyed the Property to Foster. However, Foster has not constructed the parking lot and basketball court as required by the Agreement. D. At the time the Agreement was entered into Walter Foster was the President and sole shareholder of Foster and he signed the Agreement on behalf of Foster. Walter Foster died less than two months after the Agreement was executed. E. The death of Walter Foster gave rise to large federal estate and California inheritance taxes which caused Foster to sell a substantial portion of its real property in order to pay those taxes. Foster's plans for this time. F. Foster wishes to be obligations under the Agreement. the future are uncertain at relieved of its remaining The City and the Boys Club are willing to relieve Foster of its remaining obligations under the Agreement on the terms and conditions herein set forth. - 2 - NOW, THEREFORE, the parties hereto agree as follows: 1. Foster shall pay the Boys Club the sum of Twenty Thousand Dollars ($20,000) cash promptly following the execution of this Agreement by all three parties. 2. Upon payment of said $20,000 further obligations or liabilities Agreement. 3. rights of Foster shall have no whatsoever under the In paragraph 7 of the Agreement, which gives the City ingress and egress over the parking lot, the words "the aforesaid parking lot" without a parking lot. 4. Except as otherwise set provisions of the Agreement shall effect. shall mean the Property, with or forth herein, all other remain in full force and 5. Each party to this Agreement agrees to take all steps and sign all documents that are reasonably required, necessary or convenient to carry out the provisions of this Agreement. 6. There have understandings among forth herein. been no agreements, representations, or the parties other than as expressly set 7. This Agreement may not be amended, altered, supple- mented, or modified except by subsequent written agreement duly executed by all parties hereto. - 3 - of This Agreement is made and entered into this , 1984. day FOSTER ART SERVICE, INC., a California corporation By: By: BOYS CLUB OF TUSTIN, a nonprofit charitable California corporat7 CITY OF TUSTIN, a municipal corporation By: By: MAYOR CITY CLERK - 4 -