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HomeMy WebLinkAboutNext Venture LLC - 2016-11-17AGREEMENT FOR SALE OF SURPLUS REAL PROPERTY AND ESCROW INSTRUCTIONS BY AND BETWEEN THE CITY OF HUNTINGTON BEACH AND NEXT VENTURE LLC This Sales Agreement ("Agreement") is made and entered into on this / % *A day of ov e rn b e-r , 20 1 to, by and between the City of Huntington Beach, a California municipal corporation, ("City") and Next Venture LLC, a California limited liability corporation, ("Buyer") collectively the "Parties." WHEREAS, the City owns that certain real property located in the City of Huntington Beach, Orange County, California, generally located at 19002 Delaware (APN 159-151-15), which pursuant to Huntington Beach Municipal Code Chapter 3.06 has been determined to be surplus real property and available for disposal; and The City Council authorized the disposal of the surplus real property on November 15, 2010. NOW, THEREFORE, in consideration of the foregoing recitals and for other good and valuable consideration, the Parties agree as follows: 1. PROPERTY 1.1 Property. City agrees to sell and convey to Buyer, and Buyer agrees to purchase from City, the real property (Property), hereinafter described, subject to the terms and conditions set forth in this Agreement. The real property that is the subject of this offer consists of approximately 5344 square feet located in the City of Huntington Beach, County of Orange, State of California and legally described in the attached Exhibits "A" and "B." 2. PURCHASE PRICE 2.1 Purchase Price. The total purchase price to be paid by Buyer to City for Property shall be Three Hundred Sixty -One Thousand One Hundred and 00/100 Dollars ($361,100.00). 2.2 Payment of the Purchase Price. The Purchase Price for the Property shall be payable by Buyer as follows: Upon the Close of Escrow, Buyer shall deposit or cause to be deposited with Prominent Escrow Services, in cash or by a certified or bank cashier's check made payable to Prominent Escrow Services or a confirmed wire transfer of funds, the Purchase Price plus Escrow Holder's estimate of Buyer's closing costs, prorations and charges payable pursuant to this Agreement. All escrow, recording and title insurance costs to be paid by Buyer. 3. CONDITIONS OF SALE 3.1 Buyer's Costs. Buyer shall pay all recording fees, documentary transfer taxes, escrow fees, policies of title insurance, and any other costs connected with the closing of this transaction. 16-5514/146902/Do Page 1 of 11 condition for closing as and when required by this Agreement. Buyer and City agree to execute and deliver all further documents and instruments reasonably required by the escrow holder or Title Company. City shall deliver or cause to be delivered to escrow holder in time for delivery to Buyer at the closing an original ink signed Grant Deed, duly executed and in recordable form, conveying fee title to the Property to Buyer. 3.3 Opening of Escrow. For purposes of this Agreement, the Escrow shall be deemed opened on the date Escrow Holder shall have received an executed counterpart of this Agreement from both Buyer and City ("Opening Date"). Escrow Holder shall notify Buyer and City, in writing, of the date Escrow is opened and the Closing Date, as defined in Paragraph 3.4, below. In addition, Buyer and City agree to execute, deliver, and be bound by any reasonable or customary supplemental escrow instructions of Escrow Holder, or other instruments as may reasonably be required by Escrow Holder, in order to consummate the transaction contemplated by this Agreement. Any such supplemental instructions shall not conflict with, amend, or supersede any portion of this Agreement. If there is any inconsistency between such supplemental instructions and this Agreement, this Agreement shall control. 3.4. Close of Escrow. For purposes of this Agreement, "Close of Escrow" shall be defined as the date that the Grant Deed, conveying the Property to Buyer, is recorded in the Official Records of Orange County, California. This Escrow shall close within sixty (60) days of the Opening Date ("Closing Date"). 3.5. Conditions of Title. It shall be a condition to the Close of Escrow and a covenant of City that title to the Property shall be conveyed to Buyer by City by the Grant Deed, subject only to the following Approved Conditions of Title ("Approved Condition of Title"): 3.5.1. Matters affecting the Approved Condition of Title created by or with the written consent of Buyer. 3.5.2. Exceptions which are disclosed by the Report described in Paragraph 3.7.1 hereof and which are approved or deemed approved by Buyer in accordance with Paragraph 3.7.1 hereof. City covenants and agrees that during the term of this Escrow, City will not cause or permit title to the Property to differ from the Approved Condition of Title described in this Paragraph. Any liens, encumbrances, easements, restrictions, conditions, covenants, rights, rights - of -way, or other matters affecting the Approved Condition of Title which may appear of record or be revealed after the date of the Report described in Paragraph 3.7.1 below, shall also be subject to Buyer's approval and must be eliminated or ameliorated to Buyer's satisfaction by City prior to the Close of Escrow as a condition to the Close of Escrow for Buyer's benefit. 3.6. Title Policy. Title shall be evidenced by the willingness of the Title Company to issue its CLTA Standard Form Policy or Binder of Title Insurance ("Title Policy") in the amount of the Purchase Price showing title to the Property vested in Buyer subject only to the Approved Condition of Title. 16-5514/146902/DO Page 2 of 11 3.7. Conditions to Close of Escrow. 3.7.1. Conditions to Buyer's Obligations. The Close of Escrow and Buyer's obligation to consummate the transaction contemplated by this Agreement are subject to the satisfaction of the following conditions for Buyer's benefit on or prior to the dates designated below for the satisfaction of such conditions: (a) Preliminary Title Report and Exceptions. Immediately after escrow is opened as provided herein, Buyer agrees to cause Lawyers Title to issue a Preliminary Title Report relating to the Property. Within fifteen (15) days after escrow has been opened, the Buyer will cause Lawyers Title to issue an Amendment to Escrow Instructions, which indicates those title exceptions that the Buyer will accept. City will have ten (10) days after receipt of such amendment to review and approve it. In the event of non - approval, escrow will fail and each party will instruct Lawyers Title to cancel the escrow. (b) Representations, Warranties, and Covenants of City. City shall have duly performed each and every agreement to be performed by City hereunder and City's representations, warranties, and covenants set forth in Paragraph 4 shall be true and correct as of the Closing Date. (c) No Material Changes. At the Closing Date, there shall have been no material adverse changes in the physical or financial condition of the Property. (d) Inspections and Studies. On or before thirty (30) days after Opening Date ("Due Diligence Period"), Buyer shall have approved the results of any and all inspections, investigations, tests and studies (including, without limitation, investigations with regard to governmental regulations, engineering tests, soil and structure investigation and analysis, seismic and geologic reports) with respect to the Property (including all structural and mechanical systems and leased areas) as Buyer may elect to make or obtain. The failure of Buyer to disapprove said results on or prior to the expiration of the Due Diligence Period shall be deemed to constitute Buyer's approval of the results. The cost of any such inspections, tests and studies shall be borne by Buyer. During the term of this Escrow, Buyer, its agents, contractors and subcontractors shall have the right to enter upon the Property, at reasonable times during ordinary business hours, to make any and all inspections and tests as may be necessary or desirable in Buyer's sole judgment and discretion. Buyer shall use care and consideration in connection with any of its inspections. Buyer shall indemnify and hold City and the Property harmless from any and all damage arising out of, or resulting from the negligence of Buyer, its agents, contractors and/or subcontractors in connection with such entry and/or activities upon the Property. Buyer will provide City, upon request, at no cost, copies of any Buyer's investigation reports obtained by the Buyer, if any. 16-5514/146902/DO Page 3 of 1 1 (f) The property is sold "as is," in its present condition as of the date of acceptance subject to the Buyer's investigation rights. 3.7.2. Conditions to City's Obligation. For the benefit of City, the Close of Escrow shall be conditioned upon the occurrence and/or satisfaction of each of the following conditions (or City's waiver thereof, it being agreed that City may waive any or all of such conditions): (a) Buyer's Obligations. Buyer shall have timely performed all of the obligations required by the terms of this Agreement to be performed by Buyer, and (b) Buyer's Representations. All representations and warranties made by Buyer to City in this Agreement shall be true and correct as of the Close of Escrow. 3.8. Deposits by City. At least one (1) business day prior to the Close of Escrow, City shall deposit or cause to be deposited with Escrow Holder the Grant Deed conveying the Property to Buyer duly executed by City, acknowledged and in recordable form. 3.9. Deposits by Buyer. Buyer shall deposit, or cause to be deposited with Escrow Holder, the funds which are to be applied toward the payment of the Purchase Price in the amounts and at the times if designated herein (as reduced or increased by the prorations, debits and credits hereinafter provided). 3.10. Costs and Expenses. The cost and expense of the Title Policy attributable to CLTA coverage shall be paid by Buyer. The escrow fee of Escrow Holder shall be paid by Buyer. Buyer shall pay all documentary transfer taxes, if any, payable in connection with the recordation of the Grant Deed. The amount of such transfer taxes shall not be posted on the Grant Deed, but shall be supplied by separate affidavit. Buyer shall pay the Escrow Holder's customary charges to Buyer and City for document drafting, recording, and miscellaneous charges. If, as a result of no fault of Buyer or City, Escrow fails to close, Buyer shall pay all of Escrow Holder's fees and charges. Penalties for prepayment of bona fide obligations secured by any existing Deed of trust or mortgage shall be waived pursuant to Civil Code Procedures Section 1265.240. 3.11. Disbursements and Other Actions by Escrow Holder. Upon the Close of Escrow, the Escrow holder shall promptly undertake all of the following in the manner indicated: 3.11.1 Recording. Cause the Grant Deed and any other documents, which the parties hereto may mutually direct, to be recorded in the Official Records of Orange County, California, in the order set forth in this subparagraph. Escrow Holder is instructed not to affix the amount of documentary transfer tax (if any) on the face of the Deed, but to supply same by separate affidavit. 3.11.2 Funds. Disburse from funds deposited by Buyer with Escrow Holder toward payment of all items chargeable to the account of Buyer, pursuant thereto in payment of such costs, and disburse the balance of such funds, if any, to Buyer. 16-5514/146902/DO Page 4 of I I 3.11.3 Documents to Buyer. Deliver when issued, the Title Policy to Buyer. 3.11.4 Pay demands of existing lienholders. Escrow Holder is hereby authorized and instructed to cause the reconveyance, or partial reconveyance, as the case may be, of any such monetary exceptions to Buyer's title to the Property at or prior to the Close of Escrow. 4. CITY'S REPRESENTATIONS, WARRANTIES, AND DISCLOSURES. In addition to any express agreements of City contained herein, the following constitute representations and warranties of City to Buyer, of this Agreement: 4.1 Reliability of Information. City obtained the information contained in this Agreement from sources deemed reliable; however, City makes no guarantees as to the accuracy of the information provided. 4.2 Authority of State. City is a government entity, duly organized and validly existing under the laws of the State of California. City has full power and authority to own, sell, and convey the Property to Buyer and to enter into and perform its obligations pursuant to this Agreement. 4.3 Taxes. City is exempt from property taxes and assessments and none are or will be owing at close of escrow. 4.4 Disclosures. Buyer acknowledges that Buyer is purchasing the Property solely in reliance on Buyer's own investigations. No representations or warranties of any kind whatsoever, expressed or implied, have been made by City, City's agents, or employees, including in any investigations, studies or documents identified under Section 4.6 below. Buyer further acknowledges and warrants that as of the close of escrow Buyer will be aware of all zoning regulations, other governmental requirements, site and physical conditions (including the presence of hazardous materials or other adverse environmental conditions), and other matters affecting the use and condition of the Property including any investigations, studies, and documents identified in section 4.6. Buyer agrees to purchase the Property in the condition that it is in at close of escrow, subject, however, to Buyer's right to terminate should the Property be damaged or destroyed by causes other than causes attributable to Buyer's entry on the Property and inspections ordered by Buyer prior to close of escrow. Buyer shall be responsible at Buyer's sole expense for any or all remediation required to make Property usable for Buyer's intended purpose. 4.5 As -Is Purchase. Except as provided in paragraph 4.4, Buyer specifically acknowledges and agrees that City will sell and Buyer will purchase the Property on an "as -is with all faults" basis, and that having been given the opportunity to inspect the Property and review information and documentation affecting the Property, Buyer is not relying on any representations or warranties of any kind whatsoever, express or implied, from City or its agents as to any matters concerning the Property, including without limitation: (i.) the quality, nature, adequacy, and physical condition of the Property including soils, geology, and any groundwater; (ii.) the existence, quality, nature, adequacy, and physical condition of utilities serving the Property; (iii.) the development potential of the Property and the Property's use, merchantability, fitness, suitability, value, or adequacy of the Property for any particular purpose; (iv.) the zoning or other legal status 16-5514n46902/Do Page 5 of 11 of the Property or any other public or private restrictions on use of the Property; (v.) the compliance of the Property or its operation with any applicable codes, laws, regulations, statutes, ordinances, covenants, conditions, and restrictions of any governmental or quasi -governmental entity or of any other person or entity; (vi.) the presence of hazardous materials on, under, or about the Property or the adjoining or neighboring property; (vii.) the condition of title to the Property; and (viii.) the economics of the operation of the Property. 4.6 Existing Investigations, Studies, and Documents. Buyer has knowledge of the following investigations, studies, and documents as provided by City in connection with his/her decision to purchase the Property. These reports and documents relating to the Property disclosed by City are true and correct originals or copies thereof. City makes no representations or warranties nor expresses or implies any opinion concerning their accuracy. 3. 4.7 Absence of Fraud and Misleading Statements. To the best of City's knowledge, no statement of City in this Agreement or in any document, certificate, or schedule furnished or to be furnished to Buyer pursuant hereto or in connection with the transaction contemplated hereby contains any untrue statement of material fact. 4.8 General Representation. No representation, warranty or statement of City in this Agreement or in any document, certificate or schedule furnished or to be furnished to Buyer pursuant hereto contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary to make the statements or facts contained therein not misleading. City's representations and warranties made in this Agreement shall be continuing and shall be true and correct as of the date of the close of escrow with the same force and effect as if remade by City in a separate certificate at that time. The truth and accuracy of City's representations and warranties made herein shall constitute a condition for the benefit of Buyer to the close of escrow (as elsewhere provided herein) and shall not merge into the close of escrow or the recordation of the Grant Deed in the Official Records, and shall survive the close of escrow. 5. BUYER'S REPRESENTATIONS AND WARRANTIES. In addition to any express agreements of Buyer contained herein, the following constitute representations and warranties of Buyer to City, of this Agreement: 5.1 Representations Regarding Buyer's Authority. (a) Buyer has the legal power, right and authority to enter into this Agreement and the instruments referenced herein, and to consummate the transactions contemplated hereby. (b) The individuals executing this Agreement and the instruments referenced herein on behalf of Buyer have the legal power, right, and actual authority to bind Buyer to the terms and conditions hereof and thereof. 16-5514/146902/Do Page 6 of 11 (c) This Agreement is, and all other instruments, documents and agreements required to be executed and delivered by Buyer in connection with this Agreement are and shall be, duly authorized, executed and delivered by Buyer and shall be valid, legally binding obligations of and enforceable against Buyer in accordance with their terms. (d) All requisite action (corporate, trust, partnership or otherwise) has been taken by Buyer in connection with the entering into this Agreement, the instruments referenced herein, and the consummation of the transactions contemplated hereby. No consent of any partner, shareholder, creditor, investor, judicial or administrative body, authority other party is required. (e) Neither the execution and delivery of this Agreement and documents referenced herein, nor the incurrence of the obligations set forth herein, nor the consummation of the transactions herein contemplated, nor compliance with the terms of this Agreement and the documents referenced herein conflict with or result in the material breach of any terms, conditions or provisions of, or constitute a default under, any bond, note, or other evidence of indebtedness or any contract, indenture, mortgage, Deed of trust, loan, partnership agreement, lease or other agreements or instruments to which Buyer is a party or affecting the Property. 5.2 General Representation. No representation, warranty or statement of Buyer in this Agreement or in any document, certificate or schedule furnished or to be furnished to City pursuant hereto contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary to make the statements or facts contained therein not misleading. Buyer's representations and warranties made in this Agreement shall be continuing and shall be true and correct as of the date of the close of escrow with the same force and effect as if remade by Buyer in a separate certificate at that time. The truth and accuracy of Buyer's representations and warranties made herein shall constitute a condition for the benefit of City to the close of escrow (as elsewhere provided herein) and shall not merge into the close of escrow or the recordation of the Grant in the Official Records, and shall survive the close of escrow. 6. DUE DILIGENCE. 6.1 Buyer's Investigation of Property Condition. Real property often contains defects and conditions which are not readily apparent and which may affect the value or desirability of the Property. Therefore, it is the affirmative duty of Buyer to exercise reasonable care to discover those facts which are unknown to Buyer or within the diligent attention and observation of Buyer. Buyer agrees to provide to City, at no cost, upon request of City, complete copies of all inspection reports obtained by Buyer concerning the Property. 6.2 Buyer's Acceptance of Property Condition. Buyer's acceptance of the condition of the Property is a contingency of this Agreement; accordingly, Buyer shall have the right to conduct inspections, investigations, tests, surveys, and other studies at Buyer's expense. Buyer is strongly advised to exercise these rights and select professionals with appropriate qualifications to conduct inspections of the entire Property. If Buyer does not exercise these rights, Buyer is acting against the advice of City. 6.3 Scope of Buyer's Investigations. Buyer agrees and warrants, or by the failure to do so shall have waived any rights to do so hereunder, that at close of escrow Buyer shall .16-5514/146902/DO Page 7 of 11 have investigated the condition and suitability of all aspects of the Property and all matters affecting the value or desirability of the Property, including but not limited to the following: 6.3.1 Condition of systems and components. Foundation, plumbing, siding, electrical, heating, mechanical, roof, air conditioning, built-in appliances, security, and any other structural or nonstructural systems and components, and the energy efficiency of the Property. 6.3.2 Size and age of improvements. Room count, room dimensions, square footage in improvement, lot size, and age of the improvements. 6.3.3 Lines and boundaries. Property lines and boundaries. 6.3.4 Waste disposal. Type, size, adequacy, and condition of sewer and/or septic systems and components. 6.3.5 Governmental requirements and limitations. Availability of required governmental permits, inspections, certificates, or other determinations affecting the Property, including historical significance. Any limitations, restrictions, zoning, building size requirements, or other requirements effecting the current or future use or development of the Property. 6.3.6 Rent and occupancy controls. Any restrictions that may limit the amount of rent that can legally be charged and the maximum number of persons who can lawfully occupy the Property. 6.3.7 Water and utilities; well systems and components. Availability, adequacy, and condition of public or private systems. 6.3.8 Environmental hazards. The presence of asbestos, formaldehyde, radon, methane, other gases, lead based paint, other lead contamination, fuel or chemical storage tanks, waste disposal sites, electromagnetic fields, and other substances, materials, products, or conditions. 6.3.9 Geologic conditions. Geologic/seismic conditions, soil stability/suitability, and drainage. 6.3.10 Neighborhood, area, subdivision requirements. Neighborhood or area conditions including schools; proximity and adequacy of law enforcement; proximity to commercial, industrial, or agricultural activities; crime statistics; fire protection; other governmental services; existing and proposed transportation; construction and development which may affect noise, view or traffic; airport noise; and noise or odor from any source, wild or domestic. 6.3.11 Matters of record. Covenants, conditions, and restrictions; Deed restrictions; easements; and other title encumbrances of record. 6.3.12 Other matters. Any and all other matters such as availability of suitable public infrastructure, assessment, other special service districts, and soil or other conditions on the Property, not herein listed, which are or may be pertinent to Buyer's purpose for acquiring the Property. 16-5514/146902/DO Page 8 of 11 7. INDEMNIFICATION. Buyer shall defend, indemnify, and hold the City harmless from and against any and all claims, liabilities, obligations, losses, damages, costs, and expenses, including, but not limited to, attorney's fees, court costs, and litigation expenses that City may incur or sustain by reason of or in connection with any misrepresentation made by the Buyer pursuant to this Agreement. 8. MINERAL RESERVATIONS. City shall retain all mineral rights in the Property, and the Grant Deed shall contain the following language: "EXCEPTING therefrom all oil, gas and other hydrocarbon substances and minerals lying below a depth of 500 feet from the surface of said land, but without the right of surface entry at any time upon said land or within the top 500 feet thereof, for the purpose of exploiting, developing, producing, removing and marketing said substances." 9. PRIOR AGREEMENTS. This Agreement, in effect as of the Date of Agreement, supersedes any and all prior agreements (if any) between City and Buyer regarding purchase and sale of the Property. 10. NOTICES. Any notice, tender, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered, mailed or sent by wire or other telegraphic communication in the manner provided in this Agreement, to the following persons: If to City: If to Buyer: City of Huntington Beach Chris Palermo Attn: Real Estate Services Next Venture LLC 2000 Main Street 19092 Colchester Lane Huntington Beach, CA 92647 Huntington Beach, CA 92646 11. CALCULATION OF TIME. Under this Agreement, when the day upon which performance would otherwise be required or permitted is a Saturday, Sunday or holiday, then the time for performance shall be extended to the next day which is not a Saturday, Sunday or holiday. The term "holiday" shall mean all and only those State holidays specified in Sections 6700 and 7701 of the California Government Code. 12. TIME OF ESSENCE. Time is of the essence of this Agreement and each and every provision hereof. 13. ENTIRE AGREEMENT. This Agreement shall constitute the entire understanding and agreement of the Parties hereto regarding the purchase and sale of the Property and all prior agreements, understandings, representations or negotiations are hereby superseded, terminated and canceled in their entirety, and are of no further force or effect. 14. AMENDMENTS. This Agreement may not be modified or amended except in writing by the Parties. 16-5514/146902/DO Page 9 of I I 15. APPLICABLE LAW. The Parties hereto acknowledge that this Agreement has been negotiated and entered into in the State of California. The Parties hereto expressly agree that this Agreement shall in all respects be governed by the laws of the State of California. 16. SEVERABILITY. Nothing contained herein shall be construed as to require the commission of any act contrary to law, and wherever there is any conflict between any provision contained herein and any present statute, law, ordinance or regulation as to which the Parties have no legal right to contract, the latter shall prevail, but the affected provisions of this Agreement shall be limited only to the extent necessary to bring them within the requirements of such law. 17. SEPARATE COUNTERPARTS. This Agreement may be executed in separate counterparts, each of which when so executed shall be deemed to be an original. Such counterparts shall, together, constitute and be one and the same instrument. 18. EXHIBITS. The following Exhibits are attached to this Agreement and incorporated by reference herein: Exhibit A. Property Description Exhibit B: Property Sketch 19. SURVIVAL. All terms and conditions in this Agreement, which represent continuing obligations and duties of the Parties, that have not been satisfied prior to close of escrow shall survive close of escrow and transfer of title to Buyer and shall continue to be binding on the respective obligated party in accordance with their terms. All representations and warranties and statements made by the respective parties contained herein or made in writing pursuant to this Agreement are intended to be, and shall remain, true and correct as of the close of escrow, shall be deemed to be material, and, together with all conditions, covenants and indemnities made by the respective parties contained herein or made in writing pursuant to this Agreement (except as otherwise expressly limited or expanded by the terms of this Agreement), shall survive the execution and delivery of this Agreement and the close of escrow, or, to the extent the context requires, beyond any termination of this Agreement. 20. LEGAL FEES. In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the non -prevailing party. 21. ASSIGNMENT. Buyer may not assign, transfer or convey its rights or obligations under this Agreement without the prior written consent of City, and then only if Buyer's assignee assumes in writing all of Buyer's obligations hereunder; provided, however, Buyer shall in no event be released from its obligations hereunder by reason of such assignment. 22. BROKERAGE COMMISSIONS. Buyer represents to City that there has been no broker, real estate agent, finder or similar entity engaged in connection with this Agreement or the sale of the Property from the City to Buyer, if consummated as contemplated hereby. Buyer agrees that should any claim be made for brokerage commissions or finder's fees by any broker, agent, finder or similar entity, by, through or on account of any acts of Buyer or its agent, employees or representatives, Buyer will indemnify, defend and hold City free and harmless from and against any 16-5514/146902/DO Page 10 of 1 I and all loss, liability, cost, damage and expense (including attorneys' fees and court costs) in connection therewith. Buyer agrees to pay, at its sole cost and expense, when due, any and all brokerage commissions incurred by Buyer heretofore or hereafter incurred prior to close of escrow. 23. MISCELLANEOUS. 23.1. Captions. Any captions to, or headings of, the paragraphs or subparagraphs of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof. 23.2. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, nor obligate any of the parties hereto, to any person or entity other than the parties hereto. 23.3. Exhibits and Schedules. The Exhibits and Schedules attached hereto are hereby incorporated herein by this reference. 23.4. Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof. 23.5. Fees and Other Expenses. Except as otherwise provided herein, each of the parties shall pay its own fees and expenses in connection with this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized offices the day, month and year first above written. BUYER: NEXT V, fTURE, LLC By:� oN(-. a MtMt print name ITS: (circle one) Chairman/President/Vice President By: print name ITS: (circle one) Secretary/Chief Financial Officer/ Asst. Secretary — Treasurer CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California City Manager TO RESOLUTION NO. 2010-87) INITIATED AND APPROVED: -- Depufy Director Pusiness Development /_19'iYG TA.i ojl� City Attorney DYf3 I B � to AW 16-5514n46902/130 Page 11 of 11 EXHIBIT A PARCEL 1: THOSE LANDS LOCATED IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STA TE OF CALIFORNIA, BEING A PORTION OF THE LANDS DESCRIBED IN THE GRANT DEED TO THE CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION, RECORDED MARCH 29, 2012 AS DOCUMENT NUMBER 2012000179162 IN RECORDS, OF SAID COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS THE NORTHERLY ONE-HALF (112) OF THE WESTERLY 88.50 FEET OF LOT 1 OF THE MOUNTAIN VIEW TRACT, AS SHOWN ON THE MAP FILED IN BOOK 7, PAGE OF MISCELLANEOUS MAPS, IN RECORDS OF SAID COUNTY. EXCEPTING THEREFROM THAT PORTION OF THE LAND AS DESCRIBED IN THE DEED TO SAL VADOR CONTRERAS AND MARGARET CONTRERAS, HUSBAND AND WIFE, AS JOINT TENANTS, RECORDED NOVEMBER 19, 1958 IN BOOK 4487, PAGE 47 OF SAID RECORDS, OF SAID COUNTY, DESCRIBED THEREIN AS BEING THE SOUTHERLY ONE-HALF (112), OF THE WEST 88.50 FEET, OF THE NORTH ONE-HALF (112), OF LOT 1, OF THE MOUNTAIN VIEW TRACT AS SHOWN ON THE MAP FILED IN BOOK 7, PAGE 1 OF MISCELLANEOUS MAPS, IN RECORDS OF SAID COUNTY. ALSO EXCEPTING THEREFROM THE NORTHERLY 20.00 FEET. ALSO EXCEPTING THEREFROM THA T PORTION OF LAND L YING OUTSIDE OF A CURVE HA VING A RADIUS OF 27. 00 FEET, CONCA VE TO THE SOUTHEAST, BEING TANGENT ON THE NORTH TO A LINE PARALLEL TO AND 20.00 FEET SOUTHERLY OF THE NORTH LINE OF SAID LOT 1 AND TANGENT ON THE WEST TO THE WEST LINE OF SAID L 0 T 1. ALSO EXCEPTING THEREFROM ALL RIGHT TITLE AND INTEREST IN AND TO THE MINERAL RIGHTS THEREIN, INCLUDING OIL, GAS, GASOLINE OR OTHER HYDROCARBEN SUBSTANCES THEREUNDER AS RESERVED IN THE DEED RECORDED JUNE 26, 1944 IN BOOK 1259, PAGE 258 OF OFFICIAL RECORDS ALSO EXCEPTING THEREFROM ALL RIGHT TITLE AND INTEREST IN AND TO THE MINERAL RIGHTS THEREIN, INCLUDING ALL OIL, GAS, GASOLINE OR OTHER HYDROCARBEN SUBSTANCES THEREUNDER AS RESERVED IN THE DEED RECORDED FEBRUARY 27, 1958 IN BOOK 4210, PAGE 222 OF OFFICIAL RECORDS CONTINUED ON SHEET 2 OF 2 LEGAL DESCRIPTION 19002 DELAWARE STREET (APN 159-151-15 ) CITY OF HUNTINGTON BEACH DEPARTMENT OF PUBLIC WORKS I OF 2 EXHIBIT A (CONTINUED) PARCEL 2.- THOSE LANDS LOCATED IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STA TE OF CALIFORNIA, BEING A PORTION OF THE LANDS DESCRIBED IN THE GRANT DEED TO THE CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION, RECORDED MARCH 29, 2012 AS DOCUMENT NUMBER 2012000179162, IN RECORDS, OF SAID COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS. THE WESTERL Y 11.50 FEET, OF THE EASTERL Y 29.50 FEET, OF THE NOR THERL Y 75.00 FEET, OF THE NORTH ONE-HALF (112) OF LOT 1, OF THE MOUNTAIN VIEW TRACT, AS SHOWN ON THE MAP FILED IN BOOK 7, PAGE 1 OF MISCELLANEOUS MAPS IN RECORDS OF SAID COUNTY. EXCEPTING THEREFROM THE NOR THERL Y 20. 00 FEET. ALSO EXCEPTING THEREFROM ALL RIGHT TITLE AND INTEREST IN AND TO THE M/NERAL RIGHTS THEREIN, INCLUDING OIL, GAS, GASOLINE OR OTHER HYDROCARBEN SUBSTANCES THEREUNDER AS RESERVED IN THE DEED RECORDED JUNE 26, 1944 IN BOOK 1259, PAGE 258 OF OFFICIAL RECORDS. EXHIBIT "B" A TTACHED AND BY THIS REFERENCE MADE A PART HEREOF. ASSESSOR'S PARCEL NUMBER: 159-151-15 k.ANp SG�` y Pvci .c EXP. 12-31-13 L& 7340 lF OF CAI.IE�� JOSEPH G. DERLETH PLS 7340 EXPIRES 12IJ111 J LEGAL DESCRIPTION 19002 DELAWARE STREET (APN 159-151-15 ) CITY OF HUNTINGTON BEACH DEPARTMENT OF PUBLIC WORKS 2OF2 IqD EXHIBIT B (EAST R) .� NW COR LOT 1, MOUNTAIN WEW TRACT, 711 M.M. 50.00, GARFIELD AVENUE (EAST, 118.00' R) _100.00'____ — r � I GARFIELD F AVENUE 0.00 20. oo' EAST, 73.00' Lu I o I Cl _ 11.50'-�---- o I !9002 Dk; L.A ARE S 1" In, o ' PN 150...1N...15 g 5343.6 SO. FT. rr W Tim' (0.12 ACRES) o j PARC1EL.. 1 � NE COR LOT 1, MOUNTAIN WEW TRACT, 711 M.M. ..00' I 7782 ARFliEI...D AV'I:`.' i COP WEST, 100.00' 11.50 0 0.00'--� SOUTH LINE OF SOUTH LINE OF THE I o WEST LINE- I THE NORTH HALF, NORTHERLY 75.00' LOT 1 I OF THE NORTH OF THE NORTH HALF OF LOT 1 HALF, OF LOT 1 IA. Pt.i 159-151...13 LINE TABLE- 4487/47 ().R• � [—EAST LINE L 1= NOR TH, 47.00' LOT 1 15 0 30 I L2= NOR TH, 28.00' CURVE TABLE.- --�r18.00' Cl DELTA=90100'00", R=27.00', L=42.41' L — �------ SCALE 1 = 30 � I -SOUTH LINE OF THE SW COR LOT 1, NORTH HALF OF LOT 1 MOUNTAIN WEW TRACT, 711 M.M. NOTE: (EAST, 118.00' R) SE COR LOT 1, LOT DIMENSIONS SHOWN HEREON MOUNTAIN VIEW WERE DETERMINED FROM RECORD TRACT, 711 M.M. DATA, NO FIELD SURVEY WAS REFERENCE: PERFORMED TO DETERMINE SHOWN R= RECORD DIMENSIONS. TRACT, 19002 DELAWARE STREET (APN 159-151-15) CITY OF HUNTINGTON BEACH DEPARTMENT OF PUBLIC WORKS PER THE MOUNTAIN VIEW 7/1 M. M. RESOLUTION NO. 2010-87 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING THE DISPOSITION OF CERTAIN SURPLUS PROPERTY WHEREAS, the City of Huntington Beach is the owner of certain real property more particularly set forth on Exhibit A which is attached hereto and incorporated by thi§ reference and consists of Assessor'.s Parcel Numbers I42-103-02, 142-103-05, 142-103-20, 159-I21-20, 159-151-15 and 024-206-13. The City acquired said parcels as a result of various street widening projects. The City Administrator has recommended to this Council that said property be declared Surplus Property ("the Surplus Property"); and Huntington Beach Municipal Code Section 3.06.010(b) authorizes the City to dispose of Surplus Property, quid sets out the procedures therefore, NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: 1. That the real property described above is surplus and the public interest and necessity require the disposition thereof. 2. All parcels have been appraised to establish the fair market value. 3. The costs incurred in preparing the land for sale including all related expenses and appraisal fees have been added to and made apart of the value to be paid on the sale of the Surplus Property. 4. The Surplus Property is to be first offered for sale to the adjacent property owner; if there exists no interest, it then will be made available to the general public through a highest sealed bid process subject to a declared reserve. 5. The Surplus Property described herein is to be sold for cash. 10-2565/49411