Loading...
HomeMy WebLinkAbout10 LIBRARY LAND PURCH 05-16-05 AGENDA REPORT Agenda Item ~ Reviewed: ~/ City Manager Finance Director MEETING DATE: MAY 16, 2005 FROM: WilLIAM A. HUSTON, CITY MANAGER CHRISTINE A. SHINGLETON, REDEVELOPMENT AGENCY DIR. TO: SUBJECT: APPROVAL OF AGREEMENT TO PURCHASE PROPERTY AT 305 EAST MAIN STREET SUMMARY: City Council Approval of an Agreement to Purchase Real Property with the Tustin Masonic Temple Association for property located at 305 East Main Street is requested. RECOMMENDATION: It is recommended that the City Council approve a Purchase Agreement on the subject property and authorize the City Manager, or his designated representative to execute the Agreement to Purchase Real Property and to carry out all actions necessary to close the transaction including execution of all related documents. FISCAL IMPACT: The total purchase price of the property is $835,000 minus option payments already made to the seller in the total amount of $21 ,350 (or a net purchase price of $813,650), including City payment of all closing expenses. These expenses were anticipated and budgeted in the Capital Improvement Program Budget for Fiscal Year 2004-2005. BACKGROUND: Based on negotiation direction provided by the City Council on price and terms of payment over the last few months, staff have now reached agreement with the Tustin Masonic Temple Association on the City's purchase of the property located at 305 East Main Street. The Purchase and Sale agreement approved by the City Attorney is attached. Page 2 Page 2 of 2 Agenda Report Purchase of 305 E. Main Street Pursuant to the California Environmental Quality Act (EQA) (California Public Resources Code Section. et. seq. 21000) and the State CEQA Guidelines (Title 14 California Code of Regulations, Section 16000 et. seq.), the City of Tustin previously proposed an Initial Study for the project which included acquisition of privately owned properties, certifying completion of a Negative Declaration by the adoption of Resolution 02-49 and filed a notice of Determination with the County Recorder's Office on May 30, 2002. No further environmental action is necessary. AGREEMENT TO PURCHASE REAL PROPERTY TUSTIN, CALIFORNIA "A'( THIS AGREEMENT is entered into this Ä day of ~, 2005, by and among the City of Tustin, a municipal corporation of the State of California ("the City"), and Tustin Masonic Temple Association, a California Non-Profit Mutual Benefit Corporation (hereinafter "Seller"). RECITALS 1. Seller owns improved real property at, Tustin, California, which is shown on Exhibit "A" (the "Property"), together with the structures and improvements. Exhibit "A" is attached hereto and is incorporated herein by this reference. 2. The City desires to acquire the Property for a potential future public purpose. 3. The Seller desires to sell the Property to the City. 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 On the terms and conditions set forth herein, Seller agrees to sell all of the right, title and interest of the Seller in the Property to City and City agrees to purchase the Property from Seller. The total purchase price, payable in cash through escrow, shall be Eight Hundred and Thirty Five Thousand Dollars ($835,000)(the "Purchase Price") for the transfer of lien-free, merchantable fee title to the Property, all improvements thereon and all easements appurtenant thereto, together with all of the other right, title and interest of the Seller in the Property. In exchange for receipt of this amount, Seller releases City of any and all claims by Seller under the United States Constitution Amendments 5 and 14, and for any and all claims under applicable state law including but not limited to claims for relocation benefits and loss of goodwill. Section 2. Timeframe for Completion of Obligations/Escrow 2.1 This sale shall be consummated through an escrow. As soon as possible after this Agreement is executed, City agrees to open an escrow in accordance with this Agreement at First American Title Insurance Company ("Escrow Holder") ("Open Escrow"), at 2 First American Way, Santa Ana, California, 92707, Attention: Robert Benvenute ("Escrow Officer"). 2.2 This Agreement, along with Exhibits "A," "B," and "C" attached hereto, constitutes the joint escrow instructions of City and Seller to the Escrow Holder, which may be supplemented by Escrow Holder's form agreement. As soon as possible after opening of PURCHASE AGREEMENT PAGE 1 April 26, 2005 escrow, Seller shall execute the grant deed attached hereto as Exhibit "C" and incorporated herein by this reference, and shall deposit the deed with the Escrow Officer. Subject to the conditions described in Section 8, City shall deposit into escrow the sum set forth in Section 1 above minus the Option Payments and Extended Option Payments already made to Seller pursuant to the Option to Purchase Agreement and Amendments to Option to Purchase Agreement previously entered into between the City and Seller in the total amount of $21,350, payable to Seller. The closing date for the escrow shall be no later than 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 deed to the City is recorded. Except as provided in Section 8, City shall pay escrow and closing costs. City shall also pay the costs of the AL TA title insurance referenced in Section 8.1. Section 3. Seller's Representations and Warranties 3.1 Seller Represents and warrants to the City, as follows (for purposes of this Section 3.1, whenever the phrase "to Seller's current actual knowledge" or words of similar import are used, they shall be deemed to refer to current actual knowledge of David A. Poole, Jr., at the times indicated only and not any implied, imputed or constructive knowledge, without any independent investigation having been made or implied duty to investigate the matter in question): 3.1.1 Seller has taken all action necessary to authorize its execution and delivery of this Agreement and the performance of its obligations hereunder and the persons executing this Agreement on behalf of the Seller are duly authorized to do so by the Seller. 3.1.2 The execution and performance of this Agreement and the documents contemplated hereby do not violate and are not restricted by any other agreement, contractual obligation, court order or law to which the Seller is a party or by which the Seller is bound. 3.1.3 Warranty Against Easements Not of Record. To the current, actual knowledge of Seller, Seller warrants to City that as of the date of this Agreement and as of the date of close of escrow, Seller has not granted any unrecorded easements or licenses on the Property. 3.1.4 Warranty of No Governmental Action or Violations. Except for the possible non-compliance of the Property with the Americans with Disabilities Act, to the current, actual knowledge of Seller, there is not now, and as of close of escrow, there will not be, any violation of any law, ordinance, rule, regulation, or administrative or judicial order affecting the Property, nor is there any judicial order or holding affecting the Property, whether affecting the Property or any improvements on the Property, nor has Seller received any written notice that there is there any condemnation, zoning change, or other proceeding or action (including legislative action) pending, threatened, or contemplated by any governmental body, except City of Tustin, authority, or City that will in any way affect the size or use of, improvements or construction on, or access to the Property PURCHASE AGREEMENT PAGE 2 April 26. 2005 by City. This warranty does not apply to governmental action where notice has not been provided to Seller. 3.1.5 Warranty Against Contracts Concerning Property. To the current, actual knowledge of Seller, except for the existing lease for the Property to Cathy Klein (who has remarried and changed her name to Cathy Sipia) for operation of the Property as "Cathy's Kids Club", Seller as of the date of this Agreement and as of close of escrow has not entered into any contracts, leases, licenses, commitments, or undertakings respecting the Property, or for the performance of services on the Property, or for the use of the Property or any part of it or any agreement or contract of any kind pertaining to the Property by which City would become obligated or liable to anyone. 3.1.6 Warranty Against Litigation Concerning 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. 3.1.7 Environmental Compliance. Seller warrants and represents that, during the time in which Seller has owned the Property, neither Seller nor, to the current, actual knowledge of Seller, Seller's Lessee or any other person using the Property with Seller's actual knowledge and consent, 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 City or the California State Department of Toxic Control, or state or regional water quality board, with respect to the presence of such hazardous materials on the Property or their 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. Notwithstanding the foregoing, Seller makes no representation or warranty regarding the migration of hazardous materials on or under the Property from any other property or the incorporation of asbestos or lead-based paint in the improvement on the Property. PURCHASE AGREEMENT PAGE 3 April 26, 2005 For a period of three years after the Close of Escrow, Seller hereby agrees to indemnify, protect, hold harmless, and defend the City of Tustin, its council members, officers, employees, 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, Seller's tenants, or other person using the Property with Seller's actual knowledge or consent; and (2) the cost of any required or necessary repair, cleanup, or detoxification and the preparation of any closure or other required plans, 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 presence or use, generation, storage, release, threatened release, or disposal of hazardous materials by Seller, Seller's tenants, or other person using the Property but shall not include such costs attributable to the possible incorporation of asbestos or lead-based paints in the improvement to the Property with Seller's consent or actual knowledge that occurred while Seller owned the Property. Seller's indemnity shall survive close of escrow. 3.2 Representations and Warranties of the City. The City represents and warrants to the Seller, as follows: 3.2.1 The City is a municipal corporation, organized, validly existing and in good standing under the laws of the State of California, with the full power and authority to enter into this Agreement and fulfill its obligations hereunder. 3.2.2 The persons executing this Agreement on behalf of the City are duly authorized to do so by the City. 3.2.3 From and after Close of Escrow, City agrees to indemnity, 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 City; 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 City. City's indemnity shall survive Close of Escrow. 3.2.4 "AS IS" Purchase. Other than expressly set forth in Section 3.1 to this Agreement, (a) city acknowledges, warrants and agrees that City is acquiring the Property in its "AS IS" condition, WITH ALL FAULTS, IF ANY,AND WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, and (b) neither Seller nor any agents, representatives, or employees of Seller have made any representations or warranties, direct or indirect, oral or written, express or implied, to City or City's agents with respect to the condition of the Property, its fitness for any particular purpose, or its compliance with any laws, and City does not rely upon any such representation. Except as otherwise provided in Section 3.1, City is relying solely on it own investigation as to the Property and its value and its assuming the risk of any adverse physical, economic or other conditions. Section 4. City's Obligations is Subject to Conditions PURCHASE AGREEMENT PAGE 4 April 26, 2005 City's obligation to perform this Agreement is subject to City's approval of the condition of title, described in Sections 4.1 and 4.2, City's approval of the condition of the Property described in Section 4.3, receipt of information required in Section 4.4, and no breach of representations or failure to cure any disapproved conditions or conditionally approved items, as described in Sections 4.5 and 4.6 The satisfaction (or waiver by the City) or each of the following conditions are also conditions precedent for the Close of Escrow to occur: 4.1 First American Title Insurance Company shall be able to issue in favor of City an AL TA 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 City, and showing as exceptions only current general and special real property taxes, bonds and assessments not yet delinquent, and the exceptions to title that City has approved. 4.2 Promptly, upon opening of escrow, Escrow Holder shall furnish City with a title commitment for an AL TA title policy and legible copies of all documents reported as exceptions in it ("Title Documents"). City shall notify Seller and Escrow Holder in writing within ten (10) days after receipt of the title commitment and the Title Documents of City's disapproval of any exception in those documents: If any supplemental title commitment or supplemental Title Documents are submitted, then City shall notify Seller and Escrow Holder in writing within ten (10) days after City'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 City's disapproval of any title exception set forth therein. Failure of City to notify Seller and Escrow Holder in writing of City's disapproval of any title exceptions shall conclusively be considered as City's approval of same. If City disapproves any title matter referred to in this paragraph, then, at City's option, this Agreement and the escrow shall be canceled, and in such event all funds or other things deposited by City shall be returned to City immediately on demand, and City shall pay all title company and escrow charges. 4.3 Approval by the City of a soils condition and environmental condition of the Property and the structures thereon within fifteen (15) days following opening of Escrow. City's obligation to close escrow is contingent upon City's approval of the condition of the Property at its 'sole discretion. City shall give Seller's counsel Steven C. Crooke with Price, Crooke & Gary, Inc. one (1) day prior telephonic notice at (949) 261-2233 of City's or City's consultants' intent to undertake non-invasive testing on the Property. This notice shall include a general description of the location on the Property and the nature of the non-invasive testing. City in conjunction with its examination of the soils and environmental condition of the Property has decided that it will not do any invasive testing. City agrees to indemnify, defend, protect and hold Seller harmless from any all claims, liability, damage, cost or expense in connection with any non-invasive tests and inspections, except to the extent of pre-existing conditions on the Property arising from the negligence or intentional acts of Seller. City shall keep the land clear and free of any mechanics liens or materialsmen liens arising out of the City's entry on the Property. 4.4 Receipt and approval by the City of a copy of each Lease between the Seller and each Tenant on the Property that the Seller represents to be true and correct, together with a written accounting of the balance, if any, of prepaid rent, deposits or other amounts payable by each Tenant to the Seller within fifteen (15) days following the opening of Escrow and PURCHASE AGREEMENT PAGE 5 April 26, 2005 receipt by the Escrow Holder (pending the delivery to the City upon the Close of Escrow) of a written assignment of Lease from the Seller to the City as fully executed by the Seller. 4.5 If there is a breach of any representation or warranty given by Seller pursuant to this Agreement that is discovered by City before close of escrow, then City may nevertheless elect to proceed to close the escrow, in which event City shall be deemed to have elected to waive such breach, or City 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 City's election under this paragraph, then all funds or other things deposited by City, if any, shall be returned to City immediately on demand, and Seller shall pay all title company and escrow charges. 4.6 If the Seller elects to cure any disapproved or conditionally approved item pursuant to Section 8, but thereafter fails to complete the cure or correction of such item before the Close of Escrow, then the terms and conditions of Section 8.5 shall also apply. Section 5. Threat of Condemnation Seller and City acknowledge that the purchase and sale of the Property has been negotiated under the threat of condemnation of the Property by the City. In the event of Seller default, City'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. That the public interest and necessity requires the acquisition of the Property. B. That Seller waives any claim to severance damages and goodwill under any eminent domain proceedings commenced at any time hereafter by the City of Tustin with respect to the Property. C. That Seller waives any claim to any relocation assistance in any eminent domain proceedings commenced by the 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 City, its agents, attorneys or other representatives. Section 6. 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 City and Seller and City, 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, proceeds 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 7. Warranties to Survive Close of Escrow PURCHASE AGREEMENT PAGE 6 April 26. 2005 All warranties, covenants, and other obligations stated in this Agreement shall survive close of escrow. All warranties, covenants, and other obligations that the City discovers to be breached before tender of the deed, and that City either expressly waives or does not object to before such tender, shall not survive tender of the deed. Section 8. 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 9. Integration Clause This Agreement constitutes the entire agreement among the parties and supersedes all prior discussion, 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 10. No Representation Regarding Legal Effect of Document No representation, warranty, or recommendation is made by Seller or City 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 11. 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 12. 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. Executed on the date first above written. CITY OF TUSTIN By: William Huston, City Manager PURCHASE AGREEMENT PAGE 7 April 26. 2005 ATTEST: Pamela Stoker Clerk to the City APPROVED AS TO FORM: Lois E. Jeffrey City Attorney PURCHASE AGREEMENT SELLER TUSTIN MASONIC TEMPLE ASSOCIATION By: & ;'//1 ..' ," ~ ¡;~fiP Dale K. Babb, President By: j)~a~ David A. Poole, Secretary ( Signature from President, or combined signatures of a Vice President and corporate secretary, or other corporate representative, if supported by an attached corporate resolution authorizing such signature) PAGE 8 Aprtl 26. 2005 EXHIBIT "A" LEGAL DESCRIPTION The land is situated in the State of California, County of Orange, City of Tustin, and is described as follows: Parcel A: Lot 20 of Tract 2187, as shown on a map thereof recorded in Book 105, Pages 37 and 38 of Miscellaneous Maps, records of Orange County, California Parcel B: Parcel 1, as shown on a Map filed in Book 16, Page 8 of Parcel Maps, in the Office of the County Recorder of Orange County, California LEGAL DESCRIPTION PAGE 9 APRIL 26, 2002 EXHIBIT "B" ESCROW INSTRUCTIONS 1. Escrow City and Seller agree to open escrow in accordance with Section 2 of this Agreement. This Agreement constitutes the joint escrow instructions of City and Seller, and Escrow Agent 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 open of escrow, Seller will execute the Grant Deed attached to this Agreement as Exhibit "C" and deposit the executed deed with Escrow Agent on City's behalf. City agrees to deposit the purchase price minus the Option Payments and Extended Option Payments already made to Seller pursuant to the Option to Purchase Agreement and Amendments to Option to Purchase Agreement previously entered into between the City and Seller in the total amount of $21,350, upon demand of Escrow Agent. City and Seller agree to deposit with Escrow Agent 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 Seller's own policies after close of escrow. Prior to Close of Escrow, the Seller shall collect all rent and other charges payable by the Tenant(s) to the Seller under the Lease(s) and the Seller shall maintain the Property and provide such repair of the Property as necessary and reasonable to accommodate the residency of such Tenant(s). The Seller shall not waive, adjust, credit or otherwise modify any provision of the Lease(s) or any amount of rent or other charge due and payable by the Tenant to the Seller under the Lease(s), without the prior written approval of the City. If the Tenant defaults or breaches any term or covenant of the Lease, the Seller shall promptly notify the City of the default or breach. All rent and other amounts payable to the Seller under the Lease(s) and other income, if any, from the Property and all expenses, charges and costs imposed on the Seller under the Lease or upon the Property, if any, shall be prorated between the City and Seller as of the Close of Escrow. All Security deposits and advance rents received by the Seller under the Lease(s) as of the Close of Escrow shall be credited against the Purchase Price and shall be deemed to have been transferred by the Seller to the City, as of the Close of Escrow. The City agrees to indemnify and hold the Seller harmless from and against any claim made against the Seller by a Tenant in lawful possession under the Lease for such security deposit, or advanced rent or other prepaid charge or expense payable by the Tenant to the Seller (or the account of the Seller) under the Lease(s). The foregoing obligation of the City shall service the recordation of the Deed. 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. 3. Escrow Agent 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 1 and November 1, and the current tax information is not available from title insurer, Escrow Agent 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 Agent shall make a check payable to the County Tax Collector for Seller's prorated portion of taxes and forward same to the City 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 proration 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 City with closing statement. D. Any taxes which have been paid by Seller, prior to opening of this escrow, shall not be prorated between City 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 City's acquisition, pursuant to Revenue and Taxation Code Section 5096.7. Escrow Agent is Authorized to and Shall: A. Pay and charge Seller for any amount necessary to place title in the condition necessary to satisfy this Agreement. B. Pay and charge City for escrow fees and closing costs payable under this Agreement. C. Disburse funds and deliver deed when conditions of this escrow have been fulfilled by City 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 City, which shall be made by City upon demand of Escrow Agent before close of escrow) this escrow is not in condition to close within thirty (30) days from date of these instructions, any party who then shall have fully complied with these instructions may, in writing, demand the return of their money or property; but if none have complied, no demand for return thereof shall be recognized until five (5) days after Escrow Agent 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 Agent 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. 5. Permission to Enter on Premises Seller hereby grants to City, 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. Provisions of Section 4.3 of the Agreement shall apply to any non-invasive testing. 6. 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 Deed 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 Deed, City may elect to require that the Seller pay to City the proceeds of any policy of 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. 7. Closing Statement Seller instructs Escrow Agent to release a copy of Seller's statement to City; the purpose is to ascertain if any reimbursements are due Seller. Exhibit C RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City ofTUSTIN 300 CENTENIAL WAY TUSTIN, CA 92780 Attention: Assistant City Manager (SPACE ABOVE LINE RESERVED FOR RECORDER'S USE) DOCUMENTARY TRANSFER TAX (FREE RECORDING REQUESTED Essential to acquisition by City of Tustin, California See Gov!. Code 6103) Computed on the value of the property conveyed; OR Computed on the consideration or value less liens or encumbrances remaining at time of sale. signature of Declarant or Agent determining tax-firm name GRANT DEED FOR VALUABLE CONSIDERATION, the receipt of which is hereby acknowledged, TUSTIN MASONIC TEMPLE ASSOCIATION, A CALIFORNIA NON-PROFIT MUTUAL BENEFIT CORPORATION Hereby grant(s) to THE CITY OF TUSTIN, A MUNICIPAL CORPORATION OF THE STATE OF CALIFORNIA the reai property in the City of TUSTIN, County of ORANGE, State of California, described as follows: SEE EXHIBIT "A" ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF (SIGNATURE PAGE FOLLOWS) Date: 2005 TUSTIN MASONIC TEMPLE ASSOCIATION, A CALIFORNIA NON-PROFIT MUTUAL BENEFIT CORPORATION By: David A. Poole, Its Secretary STATE OF CALIFORNIA } } ss. } COUNTY OF ORANGE On .2005, before me, , NOTARY PUBLIC personally appeared DAVID A. POOLE, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity and that by his signature on the instrument the person(s) or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Signature (SPACE ABOVE FOR SIGNATURE) EXHIBIT "A" LEGAL DESCRIPTION The land is situated in the State of California, County of Orange, City of Tustin, and is described as follows: Parcel A: Lot 20 of Tract 2187, as shown on a map thereof recorded in Book 105, Pages 37 and 38 of Miscellaneous Maps, records of Orange County, California Parcel B: Parcel 1, as shown on a Map filed in Book 16, Page 8 of Parcel Maps, in the Office of the County Recorder of Orange County, California